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A gutted, roofless Denistone, NSW home has fetched $1,092,000 after being listed for sale by its mortgagee.
Located at <a href="https://www.domain.com.au/14-anzac-avenue-denistone-nsw-2114-2014886032" target="_blank">14 Anzac Avenue, Denistone</a> the two bedroom one bathroom home came with an auction price guide of $950,000, some $100,000 higher than the home's 2013 sale price of $850,000.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
Previously listed at $1.5 million by the owner in early 2017, the property is set on 799 sqm.
The house is located within close proximity of Ryde Hospital, Eastwood Plaza and close to Top Ryde City.
The listing, through Daniel Hennessy of McGrath Ryde was marketed as a knockdown with any rebuild having "scope to capture views over Parramatta River and Olympic Park".
The median price for a home in <a href="/developments/denistone-nsw-2114">Denistone</a> is $1.777 million, according to CoreLogic, which calculate its annual change in median price over the past 10 years as 8.1%.
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Roofless mortgagee Denistone offering sold for $1.092 million

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A manorhouse residence set on 20 acres with an outlook across the surrounding countryside of Guys Hills has been recently sold on Melbourne's outskirts.
It was sold by Peter Watson from First National Real Estate Neilson Partners Berwick.'
The price is undisclosed but whispers suggest around $5.5 million.
It last sold at $1,225,000 in 2009.
Located at <a href="https://www.realestate.com.au/sold/property-house-vic-guys+hill-129751186" target="_blank">10 Myrtle Grove</a>, the Manorhouse comes with five bedrooms, a series of living areas including a formal lounge, bar equipped Billards room, home theatre, and segregated children's wing. 
<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/2019/2/14/guys%20hill%202.jpg" alt="">
The home also features a wet edged, horizon pool, tennis court, covered entertainment areas, yards and handling facilities. 
There is some 350sqm of warehousing accommodation incorporating offices, kitchenette and M&amp;F toilets.
It's close to Haileybury College, St Margaret’s Girls School, and Berwick Village.
<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/2019/2/14/guys%20hill%203.jpg" alt="">
 
Guys Hill’s next biggest sale was a 2ha property at 21 Quamby Road in 2016 at $2.3 million, CoreLogic records show.
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Guys Hill sale at double prior record price

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A Frankston South apartment block covered in flammable cladding is such a fire risk that a security guard has been posted out the front to prevent any arson attack.
The owners of the <a href="https://www.realestate.com.au/property/unit-5-5-culcairn-dr-frankston-south-vic-3199" target="_blank">flats</a> have been told by the Victorian Building Authority the cladding will have to be removed immediately.
There is an estimated $400,000 cost including fixing cracking, damp, leaking roofs and mould.
The opposition planning spokesman Tim Smith has raised the matter in State Parliament.
The VBA has declined to reveal the locations of buildings, most of which are privately owned, that have flammable cladding for fear of arson attacks.
A cladding audit ordered by Planning Minister Richard Wynne reviewed more than 2000 building and identified 44 private buildings among the “highest risk” of fire.
The cladding issue across Melbourne was sparked by London's deadly Grenfell Tower fire in 2017.
There was a blaze at the Lacrosse building in Melbourne Docklands and earlier this month a fire at Spencer Street’s Becton-built Neo200 apartments.
The Age reported the 33 owners of a block of apartments received an emergency order issued by Frankston City Council.
“We can’t afford this, people are going to lose their homes,” said Craig Fitch, chairman of Summardai Apartments’ Owners Corporation.
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Frankston South apartments caught up in Melbourne's cladding crisis

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EXPERT OBSERVATION 
In the lead up to the NSW election, the NSW residential building industry is being strangled in red tape and taxes.
Some 43% of the cost of a new house and land package is made up of taxes, charges and levies from all three tiers of Government.
Despite this, policies implemented by the State government continue to add to the tax burden for the housing industry.
By way of example, in the past 18 months, the following regulations and taxes have been implemented or proposed, each one having a negative impact on housing affordability and supply.
<ul>
<li>Removing caps on section 94 development contributions adding $20,000 – $40,000 per dwelling; 
</li>
<li>Increasing the BASIX energy efficiency targets adding an average of $10,000 per new dwelling; 
</li>
<li>Delaying the start of the medium density housing code to deal with Sydney’s “missing middle” for terrace and low rise medium density housing projects reacting to unreasonable and simple incorrect claims that the code would promote high-density housing after promoting the savings of around $15,000 in approval costs for these type of dwellings from the implementation of the code; 
</li>
<li>Introducing a 2% defect bond and an additional double barrel inspection regime for strata developments that will be ineffectual and add to the cost of all new strata projects and 
</li>
<li>Proposing a Greater Macarthur state infrastructure contribution (SIC) of $40,000 per dwelling, along with new SIC levies in the Hunter.</li>
</ul>
These changes can easily account for an additional $70-$90,000 per dwelling and once applied, they may be subject to stamp duty.
There are many things our state politicians can consider to help housing supply and affordability that don’t require drastic structural change.
For instance, the NSW Productivity Commissioner should be directed to undertake a detailed review of the regulatory burden and costs to the residential sector with the aim of reducing red tape, increasing productivity and thus improving housing affordability.
All new legislation and regulation impacting the housing sector should be subject to a thorough public regulatory impact assessment.
Adding to the problem of housing affordability and rental affordability with new red tape and taxes is not the solution to ensuring people in NSW can afford to buy or rent a home. More needs to be done now, politicians need to get serious and focus on real changes that will make a real difference to the cost of new homes in NSW.
David Bare is HIA Executive Director NSW.
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Taxes in NSW strangling future housing: HIA'S David Bare

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QM Properties are planning to build a 34-unit development on a riverfront St Lucia site.
The company purchased the 1,242 square metre site in St Lucia for $8.5 million.
QM Properties have amended the 160 Macquarie Street site  DA to provide a boutique luxury apartment project comprising 34 three bedroom apartments.
Brendan Hogan, the director of residential at Colliers International, handled the off-market expressions of interest campaign.
Glenn Rix, the development manager at QM Properties, said the north-facing riverfront project will be launched to the market in the second half of 2019.
QM Properties is a Brisbane based private development company with a history spanning over 40 years.
Their current portfolio includes residential, commercial, industrial and leisure developments, primarily within South East Queensland.
The site has passed hands several times, with Melbourne developer <a href="/news/melbourne-developer-kokoda-buys-st-lucia-brisbane-riverfront-site">Kokoda Property paying $9.5 million</a> for the site in 2017. 
Kokoda had planned a 15-storey, 60-unit development.
Photo: Prior listing of property from 2013.
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QM Properties plans 34-unit development on $8.5 million St Lucia site

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Goldfields' plans for the development of an 85-unit Chatswood residential tower has been endorsed by Willoughby Council.
The Chatswood development will be a further addition to Goldfields’ growing pipeline in New South Wales.
"Our project in Chatswood will be one of the first approved developments under the Chatswood CBD Planning and Urban Design Strategy, so it is a great opportunity to bring high-quality mixed-use residentialto an area that is demanding it," managing director of Goldfields, Marco Gattino, said.
The new development site is 400 metres from Chatswood Railway Station and Westfield Shopping Centre.
Construction is set to begin September 2020.
"It’s been a challenging 12 months for Australian property, however Sydney’s Lower North Shore is quickly becoming one of the most searched and desired places to live and work in Australia; and I see this trend continuing into 2020," Gattino said.
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Development approval for Goldfields project in Chatswood 

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A historic Perth hotel, the Paddington Ale House, is being offered for lease. 
Located at <a href="https://www.commercialrealestate.com.au/property/141-scarborough-beach-road-mount-hawthorn-wa-6016-12925310" target="_blank">141 Scarborough Beach Road, Mt Hawthorn</a>, the Paddington Ale House comprises a trading area of 1,676 sqm.
It is positioned on a corner block.
Built circa 1932, the hotel consists of a restaurant, bar, alfresco dining, and accommodation rooms.
The Paddington Ale House is licensed to hold 520 patrons.
<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/2019/2/20/Ale-House.jpg" alt="">
CBRE’s Ryan McGinnity and Chloe Mason have been appointed to market the long-term lease for the venue via an expressions of interest campaign closing March 12.
Mr McGinnity said The Paddo is a Perth institution, "being one of the city’s most well-frequented hotels over its 87-year existence."
"Not only does it benefit from an established reputation, but The Paddo’s position in a strong growth area will underpin its future success as a highly frequented venue."
“The venue’s location, 4km from the Perth CBD, proximity to Leederville, North Perth and Wembley and the potential to obtain a long lease term, all weigh in favour of the offering," Mr McGinnity concluded.
Ms Mason said with the City of Vincent’s population is expected to increase 33% over the next 17 years, local businesses such as the Paddington Ale House would benefit.
Plican Neil Randall sold The Paddington Ale House to his landlord in November 2018.
Mt Hawthorn Hospitality Co directors Robert and Ben Swanson took over.
Neil had owned the ale house for 31 years.
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Perth's Paddington Ale House offered for lease

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Westpac has confirmed it had joined Australia's three other major banks in not sending any further valuation work to LandMark White.
<p data-gtm-vis-first-on-screen-6236702_632="1550610401672" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-recent-on-screen-6236702_632="1550610405836" data-gtm-vis-has-fired-6236702_632="1">"Our immediate priority is to contact customers who may have been impacted," a Westpac spokesperson said.
"We are aware of a personal data leak involving LandMark White, a contracted service provider which conducts property valuations on our behalf," a Westpac spokesperson said.
It came a week after the other big banks pulled their requirement for LMW valuations on property for mortgage applications.
Independent LandMark White holds around 20 per cent share of the residential market with a further eight major property valuers, most of which are subsidiaries of large real estate agencies.
LandmarkWhite has also again suspended its shares from trading on the stockmarket, in the wake of stolen valuation records being posted on a dark-web forum for 10 days.
It suggests <a href="/news/landmark-white-blames-ill-informed-public-commentary-on-its-dark-web-data-breach-for-further-asx-share-suspension">the trading halt could be for as long as a month</a>.
The company advised shareholders that LMW had lost work from a significant number of clients which was "impacting our revenues, profitability and cashflows."
Only yesterday it indicated the valuation clients were likely to return.
"At this point in time we are unable to ascertain when these clients will reinstate LMW and hence when LMW will be in a position to assess with any certainty the financial impact of the incident," LMW updated the market at lunchtime Tuesday.
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"In addition, LMW anticipates that continued public commentary does not allow for an informed market for trading in LMW securities."
LMW expects that it would be able to provide the market with accurate information relating to the financial impact of the incident and hence a forecast for FY2019 within the next two to four weeks and lift the suspension at that time.
Last week Landmark White advised its investigations revealed that an unknown third party posted an <a href="/news/landmark-white-valuation-data-available-on-dark-web-forum-after-data-breach">illegally downloaded valuation dataset on a dark web forum </a>for 10 days in late January 2019.
It <a href="/news/landmark-white-enters-trading-halt-after-banks-suspend-its-use">sought the suspension of its ASX-listed shares</a> after some of the big four banks indicated they had <a href="/news/banks-drop-landmark-white-valuations-after-data-breach">stopped using LMW valuations</a>.
Westpac Group said it "takes the protection of personal information and privacy extremely seriously."
"We are investigating this matter and it is our immediate priority to contact and support any Westpac, St.George, Bank of Melbourne, BankSA or RAMS customers who may be affected.  
"At this stage, we believe only a small number of individuals are potentially impacted.
"The data disclosed includes property valuation details and some contact details (such as names, addresses and email addresses) of the various parties involved in the property valuation process.
"No loan application details, such as financial and identification documents, were disclosed.
"While we investigate the matter, we have also suspended sending any further work to LandMark White," Westpac told its customers.
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Westpac stops sending property valuation work to LandMark White after data breach

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GUEST OBSERVATION
Through 2018, annual growth in China continued to decelerate, from 6.8% at March to 6.4% in December. The annualised pace in the December quarter was weaker still, circa 6.0%. These are outcomes reminiscent of the GFC low of March 2009, so it is not surprising that many in financial markets are concerned about 2019 and beyond. From the official PMI’s, a broad-based slowdown is evident across manufacturing and, to a lesser extent, services, led by a deterioration in external demand.
Regarding trade, it is important to note that the shock being experienced by China currently is having flow-on effects for the rest of Asia, especially the north-east Asia block. Taiwan and Korea have high exposure to China demand, shipping 31% and 27% of their exports respectively to China in 2018. A large bulk (45-57%) of Korea, Taiwan and Japan’s exports to China are machineries, reflecting these economies’ involvement in China’s production chain. These economies’ exports of machineries have been weakening since November, particularly Korea and Japan which saw their exports of machineries to China plunge by 15%yr and 14%yr respectively in December. Weak imports of upstream goods by China do not bode well for China’s export outlook in the months ahead. The impact from weakening external demand is also being felt in domestic production across the region, given the high correlation between production and exports in a number of Asian economies. More than half of the Asian economies we monitor registered manufacturing PMIs below 50 in January.
Although the market’s focus remains on the effect of the global slowdown and US/China tensions on trade, the key determinant of China’s softer growth in 2018 was actually structural change, planned and managed by China’s central government. Put simply, in pursuit of long–term financial stability and sustainable growth, 2017 and 2018 saw China’s economic authorities focus on the quality of growth, particularly its longevity; equitable distribution; and environmental impact, with far ranging implications.
While we cannot ignore the risks apparent in China’s external position, that the pursuit of ‘quality growth’ is at the core of this slowdown and given Chinese authorities’ capacity and willingness to aid momentum, we look to 2019 and 2020 first and foremost with optimism rather than concern, anticipating growth will be sustained around 6%. Below we outline the key effects of the pursuit of ‘quality growth’ across three sectors (trade; investment; and the consumer), and also assess recent changes to market policy to facilitate it.
<a href="https://www.propertyobserver.com.au/images/2019/2/19/china%20slowdown%201.jpg" target="_blank">Click here</a> to enlarge:
<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/2019/2/19/china%20slowdown%201.jpg" alt="">
Source: Westpac
The outlook for trade: opportunity close to home
The immediate threat to China from US trade policy is real and pressing. Following the pull-forward of activity to front-run the tariffs’ introduction, export growth is set to weaken in 2019. However, taking a longer view (2020 and beyond), it is important to remember that any negative shock can be offset in time.
The US only receives about 20% of China’s total exports. China therefore has considerable opportunity to grow total exports even if US trade remains under pressure. Further, the Belt and Road initiative provides scope for assembly and low-value-add parts production to be moved to neighbouring economies, where US tariffs do not apply. With these factories still owned by Chinese firms, US’ tariffs can be bypassed while preserving China’s profits. Doing so would have the additional benefit of making room within China’s borders for manufacturing to shift up the technology spectrum, to the nation’s long-term benefit.
This development path should, in time, facilitate the building-up of wealth and consequently discretionary consumption. Regarding consumption, higher demand for overseas travel (tourism and education) will remain a negative for China’s trade position. However, there is prospect for some of this drag to be offset.
As China’s domestic service industries continue to develop and Belt and Road linkages grow, opportunity to diversify China’s export base across services will multiply. Construction, financial services and in-bound travel are all good sectoral examples.
<a href="https://www.propertyobserver.com.au/images/2019/2/19/china%20trade.jpg" target="_blank">Click here</a> to enlarge:
<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/2019/2/19/china%20trade.jpg" alt="">
Source: Westpac
The outlook for investment: quality to remain key
The shift in policy in favour of quality growth was most clearly evident in the investment detail, as historically-troublesome forms of investment such as poorly-planned infrastructure investment by local government authorities was sharply curtailed. As a consequence, growth in fixed asset investment across the economy slowed to historically weak levels: a low of 5.3%ytd at August and 5.9%yr for 2018 overall, as investment by State-owned Enterprises effectively stalled at 1.9%yr.
With the initial re-orientation of the economy towards quality growth achieved, authorities are increasingly acting to boost momentum. This is happening on two fronts. First, local government authorities are being encouraged to borrow directly from the market to fund new infrastructure – here, a brief RMB1.3trn surge of issuance seen in the September quarter 2018 and the issuance pipeline for 2019 provides a basis for cautious optimism. Secondly, the reserves of banks are being released by cuts to the Reserve Requirement Ratio, –350bps over the past year.
Regarding bank lending, authorities are encouraging banks to focus on up-and-coming industries, where there is maximum long-term benefit for China. However, loan availability for established businesses and the household sector is also being supported.
In stark contrast, opaque elements of the non-bank sector (trust and entrusted loans) remain under pressure from new regulation. Most notably, trust funding from banks has been curtailed by their need to report trust asset exposures. Non-bank funding has also been severely reduced by the banning of guarantees on Wealth Management Products (WMPs) and a need to specify where funds raised from households via WMPs will be invested.
One element of the non-bank sector that is showing promise however is capital market issuance, particularly debt markets, with authorities looking to encourage large firms to preference market issuance over bank loans to fund their capital needs. It should be noted though that many banks are investing in debt market instruments rather than new loans – hence the desire to free-up bank lending for smaller businesses and households has not been a complete success.
In 2019, our core expectation is that growth in fixed asset investment will stabilise at or a little above its end-2018 level. This is low by historical standards, but as the average quality of projects developed should be materially higher than in the past, the dividend to growth should be much improved. Key to investment’s overall performance will be investment by the private sector.
In the near-term, stronger growth in the private sector will require continued active promotion by authorities. Looking further out to 2020 and beyond however, market forces should increasingly take over from the government as the driver and assessor of investment projects. For China and its business community, increased economic and political engagement within Asia offers open–ended opportunity that will drive successive waves of investment on and offshore. As above, both forms of investment hold opportunity for China’s long-term growth and wealth.
The outlook for the consumer: income distribution crucial
In 2018, consumption (by both households and government) was the primary driver of aggregate growth. This result was a continuation of a long-standing trend, although the scale of the acceleration in 2018 was atypical. If 2019’s contribution is to match that of 2018, then the consumer must be on a sure footing.
The cyclical downswing in external demand makes this difficult. Employment growth across both manufacturing and services has clearly been affected by weaker external demand which seems unlikely to improve quickly. There is therefore a pressing need for investment in the domestic economy to spur offsetting growth, and with it job and income creation.
This highlights the need for a further easing of financial conditions, to make funds available to private and public enterprise at low cost, as well as continued encouragement of infrastructure investment by local authorities. Greater education attainment and entrepreneurialism also needs to be fostered, to make ready the workforce for the opportunities to come, while long-term household wealth needs shepherding.
On wealth, housing remains the sector’s primary asset. To preserve affordability and opportunity, house price growth needs to spread across the tiers and be aligned to income growth. To do so, a tight rein over investors will remain necessary to avoid the wealthy profiting from households down the income spectrum.
Further progress is also needed in the management of wealth ex-housing. The changes made to WMPs are a start, but new well-structured product now needs to be developed by the industry and invested in by households for the long term.
Policy and markets
Access to credit the priority
Recent monetary policy easing has had two inter-related targets, promoting lending to small enterprise and reducing funding costs.
Monetary policy has been eased since late last year, with the TMLF (targeted medium-term lending facility) launched on 19 December (with the first auction on 23 January) and given additional re-lending of funds. At the turn of the year, there was also a relaxation of the criteria for banks to enjoy lower reserve ratios (referring to the targeted reserve ratio cut announced back in January 2018). The eligibility for access to various liquidity facilities is mainly linked to the amount of loans extended to small enterprises. These policies apparently aim to encourage and support lending to small enterprises, and are in line with the policy direction expressed in the earlier economic work conference, which continued to use “prudent” to describe monetary policy but dropped “neutral”.
Another policy aim is to reduce funding costs. Most of the liquidity released via the 100bp cut in the Required Reserve Ratio (RRR) in January was to cover maturing MLF (medium-term lending facility) in Q1. Liquidity via a lower RRR is longer lasting, and the cost of funding much lower. Consider the 1yr MLF rate at 3.3% versus the 1.62% interest rate on required reserves; for the CNY1.2trn of MLF replaced, interest cost is reduced by CNY20bn. Provision of more long-term and low-cost liquidity is warranted to encourage lending to support constructive economic activities – in line with the official stance of adopting more counter-cyclical measures to promote growth.
Outright rate cuts?
There is an opinion in the market that the PBoC may need to cut interest rates. At this stage, we still believe that quantitative tools are more likely to be deployed. If there is an interest rate cut, it is more likely to be in bank lending rates than OMO (open market operation) reverse repo rates. First, funding costs can be effectively lowered through the use of different liquidity facilities, without an outright interest rate cut. Second, when it comes to getting OMO rates and bank lending/deposit rates more in line with each other, our interpretation is that the higher bank rates ought to be brought nearer OMO rates. That said, if the benchmark 7-day repo rate falls near the 2% level and stays there sustainably, then the PBoC may need to adjust OMO rates to play catch-up.
De-leveraging goes slow
While the de-leveraging campaign may still be on the agenda, it has been progressing less aggressively since Q4-2018. The shadow banking sector – proxied by the three off-balance sheet items under aggregate financing – shrank at a less rapid pace during Q4-2018 than in earlier quarters, and rebounded in January. The growth in RMB loans has not been quick enough to absorb the loan demand diverted from the shadow banking sector. This may justify a less aggressive de-leveraging campaign as a transitory solution, before credit accessibility is further enhanced via both bank loans and the capital market.
Bond supply versus inflows
An easing monetary policy backdrop and sustained bond inflows are supportive of the bond market. We expect bond yields to consolidate around current levels towards end-Q1 amid potentially heavier supply before facing renewed downward pressure later in the year. There may be heavier cash bond supply in Q1 than usual. First, the special LGB (local government bond) issuance quota for 2019 has been front-loaded, and the full-year quota is also touted to be a 60% increase over last year’s. Gross issuance of special LGB totalled CNY76.9bn in Q1-2018, representing a meagre 4% of 2018 full-year gross issuance. This amount can be easily surpassed in Q1-2019 if primary market activity starts to pick up in late February/early March. Second, the implication from the Central Bank Bills Swap (CBS) is a combination of neutral liquidity impact but with potentially more cash bond supply – though these bonds do not directly compete with CGBs (China Government Bonds).
There is likely to be a further easing in liquidity and credit through the year. We have pencilled in a 100bp RRR cut in each of the quarters from Q2 to Q4 this year. After cash bond supply is absorbed, we expect renewed downward pressure on yields and rates. In addition, bond index inclusion could mean sustained bond inflows. The confirmation of inclusion of Chinese bonds into the Bloomberg Barclays index had been well anticipated. Assuming a total of USD2.5trn of funds track the index, we believe index inclusion will lead to up to USD150bn of potential inflows over a 20-month period, or CNY50bn per month. This equates roughly to the average monthly inflow into CNY bonds in 2018.
CNY: no obvious outflow pressure
<a href="https://www.propertyobserver.com.au/images/2019/2/19/CNY.jpg" target="_blank">Click here</a> to enlarge:
<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/2019/2/19/CNY.jpg" alt="">
 
Source: Westpac
We now expect the next US rate hike to come in June instead of March. Hence upward pressure on USD/CNY triggered by USD strength is likely to be delayed. That said, trade relations remain a swing factor, while the impact of tariffs on the regional supply-chain is already evident and the outlook subdued. On balance, USD/CNY is likely to trade in ranges with mild upside risk.
USD/CNY should face strong resistance at the 6.85-6.90 area. Indicators including banks’ FX sales and settlement, PBoC forex purchase, and foreign reserves do not point to obvious outflow pressure. The potential bond inflows triggered by index inclusion is significant compared with other BoP items, and should present a key support to the CNY in the face of our expected USD strength going into the second half of the year.
The USD/CNY forward points have been falling until recently, as US-China interest rates differentials were compressed. The offshore USD/CNH forward points fell alongside, closing the gap with onshore. We view the movement in offshore points as primarily driven by onshore, while there has been a minimal addition to offshore CNH liquidity through the two main channels – stock flows and trade flows. As the onshore-offshore forward point differentials have narrowed and with CNH liquidity limited, CNH forward points may become more sensitive to any change in liquidity condition onshore or offshore.
Elliot Clarke is a senior economist at Westpac and can be <a href="https://www.westpac.com.au/news/authors/elliot-clarke/" target="_blank">contacted here.</a>
Frances Cheung is the Head of Macro Strategy Asia at Westpac. 
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China in 2019 - headwinds and opportunity abound: Westpac

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EXPERT OBSERVATION 
The policy of NSW Labor to scrap the Medium Density Housing Code must be balanced by support for higher rise apartment living says the Urban Taskforce.
The Labor Party in NSW has announced as policy to scrap the ‘Missing Middle’ code for terrace houses, but new development must go somewhere in Sydney. The best option for NSW Labor is to support higher rise residential around railway stations to accommodate the growing population.
The NSW Government has backed down on the terrace house complying code and allowed 50 councils to delay implementation. It would appear that communities do not want changes to the low rise detached house model that many suburbs have.
The best way to have minimal impact of the suburbs is to concentrate growth in taller residential buildings around railway stations and in town centres. There is a growing interest from younger people to live in apartments close to public transport, urban amenities and jobs.
The Mayor of North Sydney, Jilly Gibson, has recently come out supporting younger people living in apartments and she has been critical of older generations who are negative about this lifestyle. The Urban Taskforce supports Mayor Gibson’s advocacy for urban living for future generations and compliments her on her leadership in this area.
The current NSW Election which is only a month away has generated a lot of anti-apartment rhetoric from politicians and this has been based on scare mongering about excessive development. The younger voters who prefer urban apartment living seem to have been ignored by these politicians.
There is a place for medium density housing across Sydney but this is most likely to be in new greenfield developments. The economics of demolishing existing detached homes for a few terrace houses or town houses is unlikely to be viable in many parts of Sydney.
Chris Johnson is the Urban Taskforce CEO.
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NSW Labor must support apartment living if they scrap medium density code: Chris Johnson

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Joel Robinson

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

[smartcode_project_cta:default project_id=4896]

Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

Staff reporter

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