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.

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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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Over the past decade the number of real estate agents acting as buyer’s agents has increased, and buyers should consider using their services; after all, vendors always have an estate agent acting on their behalf, handling inquiries, marketing the property and ensuring the best possible sale price.
Buyer’s agents can be a good idea for the simple fact that most people don’t buy a home on a regular basis. As a result, they are not experienced in the market, don’t immediately know the prevailing market conditions in the area in which they want to buy, and don’t always have the benefit of the day-to-day monitoring of a local area that a buyer’s agent does.
A buyer’s agent can take the emotion out of the auction and negotiation process for you. They attend, bid at and engage in auctions every week and know when and how to bid to help deliver the best result. They will even tell you that sometimes the best result may be not to buy a home at a particular price because there is a more suitable property around the corner.
An REIV member buyer’s agent can bring that experience to the process by using their professionalism to deliver a better result for you.
In the same way as you would interview a few estate agents before engaging one to sell your home, you should interview a few buyer’s agents. This enables you to compare their services, knowledge and fees and find the right buyer’s agent for you. A list of REIV member buyer’s agents can be found at <a href="https://www.reiv.com.au/agency_search" target="_blank">here</a>.
Enzo Raimondo is the CEO of the<a href="https://www.reiv.com.au/" target="_blank" title="REIV"> Real Estate Institute of Victori</a><a href="https://www.reiv.com.au" target="_blank" title="REIV">a.</a>
 
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enzoraimond-7fvRFHPR52

Buyer's agents can help purchasers get the best result

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The closure of Club Med's only Australian resort on Queensland's Lindeman Island comes due to a mixture of poor visitor numbers, burdensome regulation and a turndown in the leisure travel market, one industry representative has said.

The confirmation came yesterday as the French chain confirmed it would close the Lindeman Island resort, with the island destination being put up for sale.
"It's very disappointing to see," Daniel Gschwind, chief executive of the Queensland Tourism Industry Council, says. "Some regions are being more affected than others and for a number of reasons, the Whitsundays are being hit right now."
Club Med general manger Quentin Braird has said in a statement that more customers are wanting premium products and that "Lindeman ... was not in that category".
"So, in order to meet our customers' expectations, we have to now seek a new resort in Australia," he said. "It was an extremely difficult decision for Club Med to make, as the resort is a firm favourite with our Australian and New Zealand guests.''
CBRE will sell the resort, which is set to close in January. It was originally bought in 1990 for $15 million, with the company having developed and upgraded the location over the past two decades.
Gschwind says the market has been hit by a decline in leisure tourism, as opposed to travel in the corporate market.
"It's particularly tricky for the Whitsundays, because they are very much in direct competition to some of the south-east Asian pacific nations that have done particularly well."
"So we are exposed to a full load of international competition at the moment, including the 'cheap destinations' overseas. That's clearly had an impact here."
Tourism and Transport Forum chief executive John Lee says the closure should seve as a "wake-up call" for the government, and urges some form of assistance for the industry, such as advanced depreciation.
"This should serve as a wake-up call for the industry ... we could get more assistance and investment coming in if there was some action on this."
Although Gschwind says the market is reliant on the aviation market, and notes the recent Qantas grounding may had an impact on the industry in general, he notes it is regulatory pressures that would have proved troublesome for Club Med.
"Running an island is extremely complex, in both a commercial and regulatory sense. There are so many regulations to deal with for a business owner, and it's incredibly complex when compared to mainland operations."
"We think it's an attractive destination, a unique product, and being a network of national parks has a pretty good attraction there. It's a strong product, but commercially, it's just very tough right now."
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/business-travel/20111201-club-med-shuts-lindeman-inland-resort-as-whitsundays-tourism-hit-again"> SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Club Med shuts Lindeman Island resort as Whitsundays tourism hit again

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There have been solid gains in the share prices of Australia’s Big Four banks following co-ordinated action by the US Federal Reserve, European Central Bank, and the central banks of the UK, Canada, Japan and Switzerland to provide liquidity support to the global financial system and avert a potentially devastating credit freeze.
Among the top gainers this morning has been ANZ, with its share price trading more than 3% up from yesterday at $20.50.
At last check, Commonwealth Bank shares were up 1.4% to $48.84, Westpac shares had gained 0.6% to $21.18 and NAB shares are up 0.75% to $24.16.
Overall, shares have also rallied in Australia with the benchmark S&amp;P 200 up 107 points to 4226.8 with the All Ordinaries index up 101 points to 4286 in morning trading.
A credit freeze would have <a href="https://www.propertyobserver.com.au/economy/european-debt-crisis-could-hurt-australians-hip-pockets/2011112952592" target="_blank">substantially raised the cost of banks and other lenders raising wholesale funding</a> offshore – a crucial part of the mix of money lent out to borrowers –and increased the likelihood that future interest rate cuts would not be passed on in full.
“The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system,” said the US Federal Reserve in a statement overnight.
“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.”
From December 5, these central banks will lower the pricing on the existing temporary US dollar liquidity swap arrangements by 50 basis points making it cheaper for indebted European banks to buy US dollars.
It is expected to take some pressure off the interbank lending market – where banks lend money to each other.
The reduced cost of borrowing will run until February 1 2013.
"This decreases the cost of funding in US dollars or other currencies so it's small, but it's a boost to banks' profitability and gives them a better chance to shore up their capital ratios,” Christian Schulz at Berenberg Bank told the BBC.
Schulz says the actions by the central banks won’t resolve the European sovereign debt crisis, it will “ease the panic around European banks significantly and help preventing a devastating credit crunch”.
Besides offering cheaper US dollars, as a contingency measure, these central banks have also agreed to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant.
“At present, there is no need to offer liquidity in non-domestic currencies other than the US dollar, but the central banks judge it prudent to make the necessary arrangements so that liquidity support operations could be put into place quickly should the need arise. These swap lines are authorized through February 1, 2013,” the US Federal Reserve said.
This statement and similar ones from the other Central Banks had an immediate impact on investor sentiment with Wall Street's Dow Jones index rising 4.2%, its biggest gain since March 2009.
In Europe Germany's Dax index closed 5% higher, France's Cac 40 rose 4.2% and the UK's FTSE 100 rose 3%.
 
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lschlesinger-FZcF9M3vE6

Australian bank shares up as global credit freeze averted

<html><body>
<table width="348" cellpadding="0" cellspacing="0" border="1"></table>
<table width="348" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="136">
Suburb
</td>
<td valign="bottom" width="106">
Postcode
</td>
<td valign="bottom" nowrap width="106">
Rental median (weekly)
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">HAYMARKET</a>
</td>
<td valign="bottom" width="106">
2000
</td>
<td valign="bottom" nowrap width="106">
$695
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BIRCHGROVE</a>
</td>
<td valign="bottom" width="106">
2041
</td>
<td valign="bottom" nowrap width="106">
$650
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">PYRMONT</a>
</td>
<td valign="bottom" width="106">
2009
</td>
<td valign="bottom" nowrap width="106">
$650
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">SYDNEY</a>
</td>
<td valign="bottom" width="106">
2000
</td>
<td valign="bottom" nowrap width="106">
$640
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BALMAIN</a>
</td>
<td valign="bottom" width="106">
2041
</td>
<td valign="bottom" nowrap width="106">
$610
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">WATERLOO</a>
</td>
<td valign="bottom" width="106">
2017
</td>
<td valign="bottom" nowrap width="106">
$572.50
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BOTANY</a>
</td>
<td valign="bottom" width="106">
2019
</td>
<td valign="bottom" nowrap width="106">
$560
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">WOOLLOOMOOLOO</a>
</td>
<td valign="bottom" width="106">
2011
</td>
<td valign="bottom" nowrap width="106">
$550
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">ERSKINEVILLE</a>
</td>
<td valign="bottom" width="106">
2043
</td>
<td valign="bottom" nowrap width="106">
$550
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">ROZELLE</a>
</td>
<td valign="bottom" width="106">
2039
</td>
<td valign="bottom" nowrap width="106">
$547.50
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
 
 
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awalsh-7Ub9EypybQ

Ten most expensive suburbs for unit rentals in Sydney: RP Data

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Did you know that homes located in 80% of <city><place>Sydney</place></city> suburbs have actually generated capital gains of around 1% over 2011? Adding in attractive rental growth, total returns have been pretty good relative to alternatives like shares. 
It is only the most expensive suburbs in <city><place>Sydney</place></city> that have suffered price declines. These areas have endured a 3.2% fall in value over the course of the year (see the red line in the chart below).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/dec1.gif"><img src="/images/stories/dec1thumb.gif"></a>
We know this because we break up RP Data-Rismark’s patented hedonic indices by suburbs ranked by price. (Dr Tony Richards at the RBA was the first person to ask us to do this.) The chart above graphically highlights the divergence in performance between the cheap and middle-priced regions across Sydney and those more affluent areas, which have been comparatively hard hit. 
We see similar dynamics assert right across <country-region><place>Australia</place></country-region>. For example, the cheapest 20% of suburbs in <city><place>Melbourne</place></city> have recorded capital losses of only 2.3% in 2011. In contrast, <city><place>Melbourne</place></city>’s dearest markets have registered steep 7.4% price falls (see next chart).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/dec12.gif"><img src="/images/stories/dec12thumb.gif"></a>
A portfolio of the most expensive homes across the capital cities has experienced reasonably material capital losses of 5.6% in the year-to-date. The lowest priced homes, by way of comparison, have tapered by less than half this amount, or 2.1% (refer to my third chart).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/dec13.gif"><img src="/images/stories/dec13thumb.gif"></a>
 
So why do we find these differences? A bunch of reasons. The rolling global financial crises that have affected all economies in one way or another originated in the otherwise affluent financial services industry. 
Going forward, retail and investment banks are having to modify their business models, and condition shareholders to substantially lower returns. 
Since credit growth over the next cycle will track incomes, retail banking revenues will grow at appreciably lower rates. 
During the 1990s and 2000s, housing credit in <country-region><place>Australia</place></country-region> expanded at an average annual rate in excess of 12%. That is simply unsustainable. In the long run, credit growth is bounded by growth in incomes (holding all other variables constant), which, on average, advance at single-digit rates. 
To maintain their historical returns, retail banks are having to cut costs. And this is just the beginning. The downward pressure on business expenses will be unrelenting in a world in which major banks can only produce single-digit revenue growth. This in turn means lower salaries and bonuses, and fewer jobs, for some of the nation’s best paid executives. (If you want to watch a funny video skit about bank remuneration in <country-region><place>Australia</place></country-region>, <a href="https://christopherjoye.blogspot.com/2011/11/video-story-about-big-banks-and-rba">check out this</a>.) 
The same principle applies to other companies in the financial services sphere. Investment banks – and their commercial banking cousins – are generally closing down their “proprietary trading” businesses, which is where some of the biggest income earners worked. 
Another key source of investment banking profits, IPOs, has been in a secular malaise since 2007 due to the horrific performance of share markets. Once again, all the investment banks are having to revisit their cost structures with the end game being fewer employees and lower compensation. 
We now know that the financial services industry grew to become too large a part of the economy in the years preceding the crisis. In the words of the RBA governor, Glenn Stevens, it was no longer simply the “hand-maiden of industry”. Economic logic usually ends up prevailing, and the financial services sector is now undergoing a relative retrenchment that will probably continue for years to come. 
For high-end housing that basically means top-end purchasers have skinnier wallets, which is probably one reason why we are seeing expensive suburbs underperform for the time being. 
On the other hand, there will be new sectors of the economy that emerge as winners from the structural adjustment currently taking place. Anyone with an exposure to coal mines in NSW is just one example. 
As a rule, luxury property is much more illiquid and volatile than those homes located in the mass market. Contrary to popular myth, developing expensive homes does not deliver the best returns. 
Which part of the housing market do you think billionaires like Harry Triguboff make their money in? Think properties priced under $750,000 that appeal to the widest possible audience. Put another way, would you rather be the founder of IKEA, or running your local antiques store?
Christopher Joye is a leading financial economist. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

It's an affluent housing correction: Christopher Joye

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Rents are soaring in WA mining towns in the Pilbara, with modest and often unappealing houses costing as much to lease as houses in the prestigious suburbs of Melbourne and Sydney.
John Briggs from Port Hedland Real Estate tells Property Observer the regional rental market is “very, very strong” though sales prices have come off historic highs due to the current global turmoil.
Briggs says yields are now up around the 11.5% mark, having previously been around 10%.
At the same time investors have been urged to tread cautiously when it comes to investing in mining towns, with hotspotting.com.au’s Terry Ryder warning that while they have great allure for property investors because they often provide high rental returns and rapid capital growth, <a href="https://www.propertyobserver.com.au/queensland/mining-towns-not-rivers-of-gold-terry-ryder/2011081051115" target="_blank">mining towns can be “perilous locations for investors”</a> as they sit at the “extreme far end of the risk spectrum”.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/mining-boom-drives-up-nsw-hunter-valley-rents/2011113052623">The NSW mining boom has also driven up rents in the Illawarra and Hunter Valley regions.</a>
For those investors brave enough to dip their toes in, here are the weekly rental numbers in WA’s most expensive mining towns
$2,000
This is the median asking rent for a house in <a target="_blank" href="/news">Port Hedland</a>, the biggest city in the Pilbara region. Demand for housing in Port Hedland is likely to increase in the coming months following WA's environmental watchdog giving its backing to an expansion of the port’s capacity by an additional 50 million tonnes. The median sales price is just over $1 million, translating into an indicative gross rental yield of 9.5%. Realestate.com.au lists 37 properties available for rent currently in Port Hedland with weekly rents ranging from $1,000 per week to $3,200 per week.
$1,800 
This is the median asking rent for a house in <a target="_blank" href="/news">Baynton</a>, a suburb of Karratha. Baynton West is a major Landcorp residential development site, with 523 lots to be built and 75% to be occupied by early 2012. Lots range in price from $165,000 to $303,500 and sizes from 381 square metres to 987 square metres. According to RP Data the median sales price in Baynton is $950,000 with an indicative gross rental yield of 9.9%.
$1,775
This is the median asking rent for a house in <a target="_blank" href="/news">Nickol</a>, a suburb of Karratha just north of Baynton. According to RP Data the median sales price in Nickol is $916,500, with an indicative gross rental yield of 10%.
 
$1,650
This is the median asking rent for a house in <a target="_blank" href="/news">Pegs Creek</a>, a suburb in east Karratha. According to RP Data the median sales price in Pegs Creek is $705,000, with an indicative gross rental yield of 12.2%.
 
$1,500
This is the weekly median asking rent for a house in <a target="_blank" href="/news">Dampier</a>, a tiny town north west of Karratha, which is now a major industrial port. It services petrochemical, salt, iron ore and natural gas export industries with mining giant Rio Tinto exporting large volumes of iron ore through the port. According to RP Data the median sales price in Dampier is $855,000 with an indicative gross rental yield of 9.1%. Recent sales include a four-bedroom house on Butler Way for $1.28 million and a three-bedroom house on Anderson Street, which sold for $1.69 million. Realestate.com.au lists just five properties available for rent in Dampier, with weekly rents ranging from $650 to $1,600.
$1,500
This is the weekly median asking rent for a house in <a target="_blank" href="/news">Bulgarra</a>, a suburb of Karratha, which is now a major industrial port. According to RP Data the median sales price in Bulgarra is $750,000 with an indicative gross rental yield of 10.4%. Realestate.com.au lists just 10 properties for sale in Bulgarra, with prices ranging from $420,000 for a one-bedroom house to $839,000 for a three-bedroom house with a swimming pool.
$1,400
This is the weekly median asking rent for a house in <a target="_blank" href="/news">South Hedland</a>, a suburb of Port Hedland with a population of about 8,000 people. According to RP Data the median sales price in South Hedland is $720,000 with an indicative gross rental yield of 10.1%. On realestate.com.au rents in South Hedland range from $1,150 per week for a three-bedroom house to $2,500 for a new four-bedroom house. Less than 25 properties are available to rent currently.
$400
The median rent for a house in the<a target="_blank" href="/news"> </a><a target="_blank" href="/news">Perth</a> metro region, according to the Real Estate Institute of WA.
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Pilbara mining rents: the seven most expensive WA boom towns

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
A growing demand for mining accommodation has resulted in a sharp escalation in the median rental price in the Hunter and Illawarra regions of NSW, with rents for units and houses up around 9% over the past year, according to analysis of data from the NSW Department of Housing by PRDnationwide.
Demand for rental accommodation was particurlarly strong in Maitland in the Hunter Valley, which registered the highest increase in rental bonds across NSW with growth of 29.7% in the 12 months to September.
Maitland was followed by Kiama on the Illawarra South Coast, with 23.7% increase in rental bonds over the 12-month period.
“Rental growth around the Hunter is generally related to the intensification of mining activities,” says PRDNationwide. 
<img src="/images/stories/prdnov30.gif">
Source: PRDnationwide
The region is attracting new arrivals with specialist skills in engineering, resources and mining with Hunter mining giant Coal and Allied operating Hunter Valley Operations, Mount Thorley Warkworth and Bengala mines in the upper Hunter Valley. 
In total there are about $21 billion worth of mining projects underway in the Hunter Valley.
<img src="/images/stories/prdnov301.gif">
Source: PRDnationwide
In July engineering group Downer EDI said it was looking to employ 400 people to help the Ravensworth North Coal Project in Newcastle after winning a $400 million contract with Xstrata Coal to develop the Ravensworth North Coal Project. 
There was also strong rental growth in other NSW regions close to mining activities. 
The median rental price for three-bedroom houses in the regional centres of Newcastle and Wollongong increased by more than 8% while rents for two-bedroom units increased by close to 10% in Newcastle, Port Stephens and Shellharbour. 
Overall, the vacancy rate for the Hunter and Illawarra regions averaged just 1.7% compared with 1.3% for Sydney metropolitan region.
Commenting on the increase in rents across NSW, PRDnationwide says that in an environment of softer house prices, “an increase in rent is welcomed by landlords and normally indicates a strong economy and large changes in population”. 
“However, around NSW and indeed Australia local residents who are not part of the mining industry are often being priced out of the market by companies that pay above-market rents. This in turn leads to negative social consequences and increases the pressure on government housing.”
Rents in WA mining towns are also booming.
 
 
 
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Mining boom drives up NSW Hunter Valley rents

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Melbourne’s median property prices will likely double over the next decade and Australia is not experiencing a property bubble, says Real Estate Institute of Victoria CEO Enzo Raimondo.
“The trend over the last 10 years or more has been upwards. If you look at the median price today, compared to what it was in 2000, we’ve more than doubled,” he told Channel 31.
“It will probably double again in 10 years to over $1 million. Long term the price trend is upwards.”
He concedes 2011 has not been a good year for real estate.
“It’s been a very soft year. Demand has been low. Clearance rates are down to around the low 50s from peak of 70s and 80s a few years ago.”
But given the volatility of the share market he says the real estate industry has been holding up well.
The Australian property market is at the bottom end of a cycle and will likely experience the same conditions through to mid-December, according to Raimondo.
“It’s probably the best time for first-home buyers and others to look at buying a property to relocate to, or as an investment.”
Events in Europe and the US have affected confidence in the Australian market, which is actually very strong, according to Raimondo.
“The economy is quite sound, our banking system is good. Media about what’s happening in Europe and the US dampens confidence in Australia.”
He says there is room for further rate cuts he and he suspects that while the Reserve Bank is hesitant to cut rates further, it might be forced to do so given events in Europe and the US.
“I think the RBA will look at what the economy is doing generally. I don’t think they really want to cut rates because they think there’s some strength in the economy, but given what’s happening in Europe they may have to cut it again between now and the end of next year.”
 
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Melbourne median house price to double again to more than $1 million in next decade: Enzo Raimondo

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Australian employers are still suffering under some of the world's most expensive retail rents, according to the latest figures released by CBRE, but local business may be in for a reprieve if the European debt crisis begins to take hold.

Local retailers have been suffering under higher rents for some time, only pressured further by the arrival prominent international stores. But Premier Retail chief Mark McInnes described at his annual general meeting yesterday how he's able to negotiate some discounts.
The former David Jones chief described how he's able to play hard ball and focus on internet sales in order to gain some much-needed discounts.
"Portmans in Canberra Centre is the most obvious example," he said. "We're doing $800,000 in that store – it's a terrific store for us – but we're paying $400,000 in rent and we're basically breaking even."
"We said to the landlord, "well, we're going to shut. We'll put an ad in theCanberra Times saying 'Go to Portmans.com.au and if you don't want to go online, Go to Belconnen'."
"And our rent reduced 30%."
The story is an unusual reprieve in a country where retail rents are among the highest in the world, and landlords are keen on maintaining their returns. According to the latest CBRE report, Sydney was the third most expensive city at $US1,224 per square feet every year, while Melbourne and Brisbane followed in 8th and 9th place.
Retailers have been calling for landlords to lower their rents for some time, with even prominent chains such as Baker's Delight complaining that prices are too high.
As retail experts point out, the spending environment isn't getting any better, either – the mid-year budget outlook released yesterday shows GDP will reach just 3.25% over the next two years, down from 4% and 3.75%.
With the current spending environment set to remain for quite awhile, retailers are fearful landlords will continue to demand the same amount of money.
But Simon Fonteyn of Lease Info says this may not be the case, especially if the European debt crisis spreads to Australia. "It's a complicated situation," he says.
"The critical period will be over the next three months. If things go well, then slower GDP growth may not be as significant," he says.
Fonteyn notes the GDP forecasts, and agrees that spending is subdued, but says it is difficult to predict how landlords will react over the next few years given the current turmoil in the market.
"One thing to bear in mind is that structural adjustments occur when leases come up for renewal. There is an adjustment process that changes when tenants are struggling and signing leases," he says.
"The other issue at the moment is that you're having a bit of a situation in Australia where there is a stratification of the retail market. Some sectors are doing well, and others such as middle market fashion and accessories are doing very poorly."
On the other hand, he says, some areas such as take away food, coffee and cafes are doing very well, and retailers may expect some sort of rental increase over the next couple of years in those sectors.
"The fortress centres with strong demographics have waiting lists. The bigger landlords are playing as hard as ever, because they have demand that exceeds supply."
"GDP is not the best indicator of how retailers are going to fare. Something that could be as impactful is if we had a drop in interest rates, which looks likely now."
Another issue is the European crisis, Fonteyn says, with the effects able to spread to Australia. If retail spending continues to fall, he says that could have the effect of keeping international pressure out of the market.
More international shops have been finding their way to Australia recently, and in some cases, this is pushing up rents.
"Maybe if the market is perceived to be cooling a bit, the internationals might not get as excited about coming here, and it could have the effect of dampening international competition."
This article originally appeared on<a href="https://www.smartcompany.com.au/" target="_blank"> SmartCompany</a>.
 
 
 
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How to get a discount on your retail rent, Mark McInnes style

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Retail veteran Gerry Harvey has downplayed the prospects for a retail recovery, saying at the Harvey Norman annual general meeting yesterday there is nothing to suggest the environment will get any better soon.

"I don't see any light at the end of the tunnel," he said yesterday. "There is zero light. There is nothing to suggest it will get better."
Harvey described local operations as ''treading water'' due to indifferent consumer spending and massive price deflation,
The later has led the company to reposition its shelf space away from electronic goods, which have suffered the largest falls in price.
Harvey used the example of a 32-inch colour TV advertised recently for $299. ''We were selling those things for $699 a year ago," he said.
''The whole market is in a state of extreme change at the moment so we've had to look at our business and say you can't solve this problem with TV sales because we'll have to sell three times as many to make up the difference."
"We're making more sales of everything, but it's all cheaper," he said.
Harvey Norman recently posted a 20% fall in first-quarter profits and a 3.8% decline in 2012 first-quarter sales.
The retailer launched an online store this month in a bid to respond to the rise of cheaper online competitors.
''I think this Christmas will be okay, but this is the first time that I can remember where I haven't said this Christmas will be the best Christmas ever," Harvey said.
His comments contrasted with the more upbeat sentiments of Premier Investments chairman Soloman Lew at his company's annual general meeting, also yesterday.
Premier owns several fashion outlets including Just Jeans, Portmans, and Dotti, as well as stationery store Smiggle.
Despite describing the retail environment as "extremely challenging", Lew pointed to a rise in retail trade last month.
''Trade in October improved on the trend we saw in August and September,'' he said. ''In addition, November is on track."
Lew said that if current conditions held and the group had a satisfactory Christmas, Premier's Just Group fashion holding expected 2012 earnings before tax and interest to $95 million, up from $80 million.
Nonetheless, the company relied on growth in its Peter Alexander and Smiggle stores to offset losses elsewhere.
Premier retail chief Mark McInnes said "we've opened up to 30 Peter Alexander and Smiggle stores in the last two months, and they are our growth assets with high gross margin and great product differentiation."
"In our core apparel brands, where we are making a loss or we are marginal or break-even, we are not renewing leases and we are closing based on the rental review."
McInnes said the company looked to Asia for growth.
"On our doorstep there are countries like South Korea, Japan, China, and Singapore – and those populations, when you add them all together, are ...  hundreds of millions of people."
These were sentiments shared by Harvey Norman.
Managing director Katie Page told Business Day the company's "biggest ray of sunshine is Asia."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
 
 
</body></html>

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