Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

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&nbsp;

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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A stoush is brewing between the RBA, which looks set to leave interest rates on hold for some time now, and those who think they should fall. 
Yellow Brick Road’s Mark Bouris is the latest industry figure to call for a reduction in interest rates.
In a series of tweets today Bouris slammed the RBA’s most recent interest rate decision and said the central bank needed to take into account that Australia had a multi-speed economy when determining interest rate settings.
Bouris says the Reserve Bank needs to “scratch beneath the surface” of the economy and not just look at “OK” overall picture when setting interest rates.
At the same time Westpac boss Gail Kelly has warned home borrowers to expect small and more frequent rate changes as banks looked to maintain their profitability in a low growth environment.
Bouris began his twitter rail against the RBA with:
“Looking at the comments re a two-speed economy, this is a multi-speed economy ! At what point will someone make the call to do something??”
He then goes on to tweet:
<ul>
<li>“What's the basis of the RBA decision? They keep rates on hold because everything looks OK but you just need to scratch beneath the surface.”</li>
</ul>
<ul>
<li>“Manufacturing is suffering because of a strong Australian dollar, small businesses, retail, tourism the same. Mining is doing well but at what cost?”</li>
</ul>
<ul>
<li>“Does anyone agree with me or what do you think?</li>
</ul>
<ul>
<li>“Why can't we have policy that addresses all parts rather than the average?”</li>
<li>“Anyone in the tourism industry have anything to say? How are you feeling?  What about manufacturers? Retail shop owners?”</li>
</ul>
In an interview with Australian Financial Review Kelly says borrowers should expect to see “smaller rate moves more often”.
Kelly says recent bank analyst reports show that banks will need to raise their home loan rates by between 0.15% and 0.2% to maintain their profits.
However, research by Nomura has found that mortgage lending remains highly profitable for banks delivering a return of 20% with Westpac’s mortgage lending business the most profitable, with a 23% return on the capital it lends out in the form of mortgages.
According to Nomura, Westpac would earn an extra $122 million by raising mortgage rates by just 0.05%.
Kelly says the decision by ANZ to decouple itself from the RBA and make independent interest rate calls had been helpful for others banks and had probably been more helpful to Westpac than ANZ.
The Bank of Queensland has already lifted its standard variable rate by 10 basis points to 7.46% following the RBA decision to keep rates on hold on Tuesday.
The Commonwealth Bank, National Australia Bank and Westpac have all refused to rule out further independent rate moves this month.
 
 
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lschlesinger-FZcF9M3vE6

Mark Bouris takes aim at RBA as Gail Kelly warns of ‘frequent’ independent bank rate rises

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Home buyers and investors can look forward to lower interest rates over the next decade, according to Macquarie Group senior economist Brian Redican.
“Interest rates should be lower over the next 10 years than they have been over the last 15,” he has told delegates at WBP Property Group’s 2012 Melbourne Property Outlook breakfast today.
A reduction in rates, Redican says, will deliver a significant boost to the Victorian housing market increasing the level of “effective demand”, that is the number of people who are able and willing to buy property.
Redican expects house prices to fall by about 5% in Melbourne during 2012 but says further rate cuts should stabilise the market in 2013.
Redican says interest rates in Australia are currently low compared with what they have been historically in the country, but high relative to other first-world economies such as the US, UK and Canada.
He is critical of the Reserve Bank for not being “pre-emptive” enough when it comes to reducing interest rates and says the RBA is far too focused on mitigating impact of the mining boom, which only employs 10% of the workforce, when setting its interest rates policy.
However, the sectors of the economy that are struggling at present – manufacturing, construction and retailing – employ about 30% of the workforce and will force the RBA’s hand, he says.
“The RBA is a reluctant rate cutter due to the mining boom, but it will be forced to cut interest rates over the next few years,” Redican says.
He presented a series of slides that showed how structurally the economy had shifted during the past two decades – for example unemployment fell 7% from 11% in the early 1990s to 4% just before the GFC, while household debt-to-income ratios increased from 50% to 150% as Australians invested in property and other assets to double their wealth.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/unemployment.gif"><img src="/images/stories/unemploymentthumb.gif"></a>
However, these changes cannot be repeated – for example, unemployment cannot fall another 7%.
He also expects consumer spending – which grew at around 4% annually between 1993 and 2008 – to return to the 2% annual growth trend pre-1993, meaning interest rates do not need to be as high as they are to curtail spending.
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Interest rates will be lower in next decade than in recent past: Macquarie Group's Brian Redican

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Something has got to give in the local Australian non-mining economy. Before all else, let me explain and then I will set out what I think will give first.  The high dollar is forcing large numbers of businesses to look at transferring manufacturing and service provision offshore. The high interest rates in Australia are fuelling that high dollar but also slowing local demand.  Many (but not all) unions, armed with 120 new weapons to use against employers via the so called “Fair Work" industrial relations act, are playing hard ball and becoming less flexible.  Productivity in Australia is falling –in other words, output per employee is falling. Employers are reluctant to retrench because of the high cost and the fear that the skills can’t be replaced.  Retailers are squeezing local suppliers because in the supermarket industry there is intense competition and in non-food retailing the internet gives customers the chance to bypass local retailers. And then we have power prices and other utility charges rising, plus the high carbon tax on top of all this. Consumers are lowering their borrowing and home building and commercial construction is slowing in non-mining Australia. All this is happening in an environment where the way we do business is changing dramatically as the real implications of internet/mobile phone communications on supply chains and consumer behaviour become apparent. Those that picked these changes and were first to move will do very well.
The state governments are cutting back on outlays because their budgets are under pressure and, not surprisingly, the profits of the non-mining sector are being squeezed in the above environment – so the federal budget is under pressure. At the same time the miners are involved in extensive expansion which always affects profits to some degree. And just to top it off the Greens are planing a massive attack on coal mining in Queensland while the unions are giving BHP the stick in Queensland coal. I am sure readers will think of more pressure points but we will stop it there. So what gives first? All around the country <a href="https://www.propertyobserver.com.au/industry-news/estate-agents-in-the-eye-of-australian-economic-structrual-upheaval/2012030653720" target="_blank">enterprises are re-looking at what they do and how they do it</a>. Supply chains are being re-examined and the effectiveness of systems and labour is being looked at. Those companies that do this quickly and well will prosper. On the labour front, the industrial relations act is going to cause companies to get much tougher. My guess is that we are going to see a great many disappointing profits – but again, it will not be across the board.  I believe we are gong to see a dramatic rise in overseas outsourcing lead by the service industries such as accounting computer technology. There will a big rise in the number of takeovers as managers see that some companies “get it” while other legacy businesses do not. Productivity will rise but in many areas it will be brutal. I must emphasise again that many businesses will do very well – especially those that adapt to the changes in the way we do business and those connected to mining. Industries like heath and those linked to Chinese tourism have a good outlook. Independent contracting is maybe the way around labour hire in a number of industries.
Last month Morgan Research showed a rise in unemployment but the latest Morgan figures show an unemployment fall, so this process of labour shedding has not really started. When it gets underway the repercussions will force the government to use its borrowing power to lower interest rates. Unfortunately, there are few places to hide.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
 
 
 
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A survival kit for non-miners: Robert Gottliebsen

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Asian and Middle Eastern investors are expected to target Australia’s CBD hotel sector in 2012 after the sector delivered total returns of 17.8% in 2011, led by Sydney hotels.
Sydney hotels delivered investors a 20% total return in 2011 outpacing Melbourne hotels, which managed returns of 13% in an overall strong year for inner city hotel markets, according to the latest Property Council of Australia (PCA)/IPD Hotel Index.
 
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Using data from 99 hotels worth about $5.6 billion, the index reveals that Sydney hotels outperformed the wider market and Melbourne hotels on the key industry measures of occupancy rates and revenue per available room (RevPAR).
On average, one night in a Sydney hotel room generated revenue of $182, compared with $148 in Melbourne and $143 nationally.
<img src="/images/stories/hotelmarch83.gif">
While Sydney clearly has bragging rights over Melbourne, both markets experienced significant increases in returns over the year<a target="_blank" href="https://www.propertyobserver.com.au/leisure/dollar-hurting-tourism-especially-queensland-coastal-hotel-occupancy-rba/2012030653721"> alongside a buoyant inner-city hotel market</a>.
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Troy Craig, managing director of strategic advisory at Jones Lang LaSalle Hotels, says the 2011 results are encouraging news for the hotel investment community and “will ensure that Australia remains a key target for global and regional hotel investors”.
“Transaction volume is expected to reach around $1.2 billion in 2012, representing an uplift of 20% over 2011 and slightly above the long-term trend.
“More owners are expected to take advantage of the trading upswing and exit over the next couple of years.  Asian buyers are expected to continue to dominate, although competition is increasing with a number of Middle Eastern sovereign wealth funds targeting acquisitions in the world’s most transparent real estate market,” he says.
Anthony De Francesco, managing director of IPD in Australia and New Zealand, says the hotel sector has shown “strong investment performance” over 2011.
“The strong investment returns reflects rising RevPAR as a result of persistently high occupancy rates due to low levels of supply and relatively strong demand.”
“We expect the hotel property sector to continue to perform strongly over the remainder of this year given its strong space market fundamentals against core property sector markets,” he adds. Tony Ryan, principal of Ryan Lawyers, which acts on behalf of hotel groups, says total returns increasing by nearly 50% for investment-grade hotels.
“Capital growth was the principal driver reflecting strong fundamentals and a confidence in future cash flows. With domestic corporate demand still robust, CBD hotels are hard to beat,” he says.
 
 
 
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Offshore investors expected to snap up CBD hotels after sector delivers 18% returns in 2011

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There was a significant change to Victorian law that came into force on March 1. In Victoria, buyers of property who sign a contract of sale have three clear business days with which to withdraw from the contract for any reason they choose. There were a few exceptions to this rule, the main two as far as the average buyer was concerned were: if you signed the contract of sale within three business days either before or after a publically advertised auction or if you had received advice from a legal practitioner before signing the contract. The latter no longer is in force.
You can now receive legal advice prior to signing the contract and you still have your cooling-off period. Even though I only work for buyers, this change to the law doesn’t necessarily help us. It removes the possibility of finality. It makes it impossible to offer a good deal that gives the vendor surety. We have made many deals happen specifically because of this. The three-day cooling-off period was designed to allow those purchasers who signed a contract without legal advice time to get someone to look over the deal they had made. It is now designed to allow people to change their minds.
There is one benefit that I can see for the prospective purchaser. Many times we have decided to buy with a condition subject to pest and building inspection and to soften the condition we agree to get the inspections within the three-day cooling-off period. To do this means we couldn’t in the past get legal advice prior to signing the contract: now we can.
This has significantly changed the negotiation landscape for buying property. If a selling agent wanted to do a deal before an auction, he or she would normally only take an offer if the purchaser had received legal advice. In other words, the offer was unconditional. That means they could call around to other interested parties and say, “We have received an offer that will buy the property prior to auction. If you wish to purchase the property please have your offer in by 5pm today.” They would normally give a fairly close indication as to the offer, in order to push up anyone else. They knew if they didn’t get any better offers they had the property sold regardless. This scenario is similar to a “boardroom auction”
With the change to the law on March 1st this year, this is no longer an option for selling agents. Boardroom auctions are no longer viable as they are not final (the offer would have a three-day cooling-off period). Sale by set date, tender and expressions-of-interest campaigns will no longer work as they were intended. These offers usually state that the purchaser must have attained legal advice prior to submitting an offer, thereby making all offers received unconditional. This is now no longer the case.
Even offers within the auction campaign will prove difficult. For example, an agent is given a very good offer on the Tuesday before a Saturday auction. If he takes it and lets all other interested parties know he has an offer that dramatically exceeds the range and will be accepted by the vendor if no better offer is received, he runs the risk of scaring off all the other contenders, albeit at a lower number, while he has to wait until Friday night to see if the purchaser cools off. If he doesn’t take the offer and this purchaser does not attend the auction, he may have made a substantial error for his client.
I can’t wait for someone to challenge the definition of a publically advertised auction. Can a publically advertised auction be “advertised” on the internet for today at 4? I am unsure of what the length of time needs to be before an auction is deemed “publically advertised”. If there is no time frame, can an agent who knows he is going to get an offer at 2.30pm advertise the property on the internet at 1pm that the property will be for public auction at 5pm on the same day and therefore avoid the cooling-off period?
The most interesting issue in this change and would probably come under the rule of unintended consequences is the fact that real estate agents now have an advantage over all others who put offers on properties outside the auction period. There offers will be unconditional and therefore if the numbers and terms are the same, better than someone else who has a three-day cooling-off period.
Ian James is director of <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy in Melbourne. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiate more than $100 million worth of property each year for clients.
 
 
 
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New Victorian cooling-off rules could hurt vendors and agents

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On March 1 (last week) the cooling off laws were amended so that now almost all purchases, except those transacted three days either side of an auction, are subject to a cooling-off period. Previously agents could remove the purchaser’s ability to end a contract within three business days of signing by forcing them to seek legal advice prior to making an offer.
Will this amendment have any material effect on the upper end market?
It might. What’s likely is that we’ll see fewer agents considering offers that come in well before auction day, and agents busier than ever before on the three days just before and after the auction when an agreement can be locked in with more certainty.
We may also see less of the early auction ring-around with a good offer. Let’s say an agent receives a $3,5 million offer in writing on a $3 million home three weeks before the auction. Why would the agent do the ring-around to other buyers, potentially scaring them away from the home at $3. 5million if there was a possibility that the $3.5 million buyer might exercise his right to cool off? That would significantly affect the auction momentum. What’s more likely now is that the seller will simply accept the $3.5 million, wait till the cooling off is over and then tell other buyers the deal is done – perhaps creating more heat between selling agent and buyers.
Alternatively, there may now be a potentially acceptable buyer strategy where the buyer makes a high offer, then takes advantage of the protection of the cooling-off period to end the contract and then come in later at a lower amount and perhaps under another name – having seriously disrupted the sale process.
What about a boardroom auction? Does this qualify as a publicly advertised auction in all cases with regards to cooling off? What is the definition of publicly advertised? We are looking forward to a clarification on this from the REIV and the government.
Cooling off raises other issues, too – especially if you are involved in long negotiations. What most people don’t realise is that your cooling-off period begins when you make an offer, not when agreement is reached with the seller. So if the negotiating process takes longer than three business days, you will have lost your cooling-off period. There are also some other tricky issues re forfeiture of monies, and the actual process of claiming cooling off. So get some legal or buying agent advice before relying on it as a strategy.
Personally we think you are unwise to use cooling-off as a strategy in negotiation. We as an organisation do not use it as a negotiating strategy. Our strong recommendation is that you do all your due diligence prior to signing.
 Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
 
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Cooling-off period changes in Victoria could lead to duplicitous buyer strategies

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The Australian economy grew by 0.4% in the December quarter, after growing by a downwardly revised 0.8% in the September quarter (originally reported as a 1% rise). 
Economists had expected growth of around 0.7% to 0.8% in the quarter.
Annual economic growth stands at 2.3%, down from the long-term average of 3% to 3.25%. 
While economic growth is sub-standard, other indicators are still encouraging. 
Consumer spending growth is close to normal; there are no wage or price pressures; and even productivity is looking perkier.
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&amp;The household saving ratio fell from 9.6% to 9.1%, in seasonally adjusted terms in the December quarter. 
In trend terms household saving fell for the third consecutive quarter, easing from 9.5% to 9.3%.
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The real disappointment is housing investment – in essence, home building.
Governments of all description are sweeping the problem under the carpet, failing to address the factors holding back new investment in residential buildings.
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Weak GDP results show urgent need for new housing investment: Craig James

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Residential property sold relatively quickly in the first half of 2011, but stock, not unexpectedly, was lingering longer on the market in most capital city markets over the Christmas/New Year period. Adelaide is the slowest city for sale times, and Canberra the quickest.
Clinton McNabb at Australian Property Monitors says February results tend to show an improvement in sales activity. The figures are for houses and units combined. The sunshine graphic illustrates the months where property sold most quickly during the past year, the dark cloud shows the slowest month.
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Source: Australian Property Monitors
 
 
 
 
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How slowly property is selling in the capital cities – at least 81 days or more: APM

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According to the Urban Development Institute of Australia, the median lot size for new residential land has decreased by 24% since 2001 while the price has nearly trebled.
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Thinking of buying a house and land in Perth? Property Observer readers can secure free tickets for the Perth Home Buyer and Property Investor Show by <a href="https://www.homebuyershow.com.au/special-offers/propertyobserver-ticket-offer/" target="_blank">clicking here</a>.
 
 
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Perth building lot sizes decreased 24% while prices increased 180% in past 10 years: UDIA 

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The low Q4 GDP number of 0.4% combined with the downward revision to Q3 will have been a negative surprise for the RBA.
We really need to see unemployment tomorrow to work out whether this is a true game changer for interest rates.
But the probability of a cut this year has now risen, to be sure.
The RBA will, however, need more confirmatory evidence...


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