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;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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

<html><body>
House prices eased by 0.51% during October to a median of $432,000, taking the annual downturn to 3.43%, according to Residex.
Hobart, down 2.46%, and Sydney, down 1.65%, were the weakest October performers.
Over the year the weakest capital cities were Brisbane, down 5.51%, and Perth, down 4.93%
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td rowspan="2">
Area 
</td>
<td rowspan="2">
Median Value 
</td>
<td colspan="2">
Growth 
</td>
</tr>
<tr>
<td>
Year Ending Oct 2011
</td>
<td>
Last Month
</td>
</tr>
<tr>
<td>
ACT 
</td>
<td>
$530,500
</td>
<td>
-0.68%
</td>
<td>
-1.15%
</td>
</tr>
<tr>
<td>
Adelaide 
</td>
<td>
$394,000
</td>
<td>
-3.61%
</td>
<td>
-0.83%
</td>
</tr>
<tr>
<td>
SA Country 
</td>
<td>
$252,500
</td>
<td>
-2.12%
</td>
<td>
-1.36%
</td>
</tr>
<tr>
<td>
Brisbane 
</td>
<td>
$432,000
</td>
<td>
-5.51%
</td>
<td>
-1.46%
</td>
</tr>
<tr>
<td>
QLD Country 
</td>
<td>
$366,500
</td>
<td>
-2.99%
</td>
<td>
-0.03%
</td>
</tr>
<tr>
<td>
Darwin 
</td>
<td>
$496,500
</td>
<td>
-4.03%
</td>
<td>
1.19%
</td>
</tr>
<tr>
<td>
Northern Territory 
</td>
<td>
$472,000
</td>
<td>
-2.89%
</td>
<td>
1.14%
</td>
</tr>
<tr>
<td>
Hobart 
</td>
<td>
$375,500
</td>
<td>
-2.53%
</td>
<td>
-2.30%
</td>
</tr>
<tr>
<td>
TAS Country 
</td>
<td>
$269,500
</td>
<td>
-2.64%
</td>
<td>
-0.18%
</td>
</tr>
<tr>
<td>
Melbourne 
</td>
<td>
$574,500
</td>
<td>
-4.36%
</td>
<td>
-0.93%
</td>
</tr>
<tr>
<td>
VIC Country 
</td>
<td>
$332,500
</td>
<td>
2.78%
</td>
<td>
1.81%
</td>
</tr>
<tr>
<td>
Perth 
</td>
<td>
$465,500
</td>
<td>
-4.93%
</td>
<td>
-0.36%
</td>
</tr>
<tr>
<td>
WA Country 
</td>
<td>
$350,500
</td>
<td>
0.44%
</td>
<td>
1.95%
</td>
</tr>
<tr>
<td>
Sydney 
</td>
<td>
$657,000
</td>
<td>
-1.63%
</td>
<td>
-1.65%
</td>
</tr>
<tr>
<td>
NSW Country 
</td>
<td>
$334,000
</td>
<td>
-3.11%
</td>
<td>
-1.19%
</td>
</tr>
<tr>
<td>
Australia 
</td>
<td>
$432,000
</td>
<td>
-3.43%
</td>
<td>
-0.51%
</td>
</tr>
</tbody></table>
 
“The Residex latest figures on housing data do not point to a ‘bounce’ in housing demand and activity leading into the well-publicised rate cute decision,” Residex CEO John Edwards notes.
“Furthermore, auction clearance rates for Sydney seem to indicate that, even following the rate cut, there was little to no impact, which is a little unusual.
“The interest rate adjustment potentially was not enough to restore confidence in the community.
“The RBA will need to adjust rates a little further to stabilise, and I expect another rate cut will come in the near term, which could potentially be in the order of 0.5%.
“The volatility in our stock markets is going to continue but our housing markets, because of our high level of ownership and funding structure, will not present the same level of risk as other asset sectors,” Edwards notes.
“The press that flows from the European crisis causes uncertainty in all areas of our economy, in particular our housing markets,” says Edwards, who is currently overseas.
“We, as Australians, are ‘worlds apart’ from the crisis here in Europe and if it was not for this situation, considering the improving position of the United States (albeit slow), we would be rejoicing at our new found growth that has been driven by the demand for resources.”
“Yes, Europe is going to cause global problems, but Australia is not dependant on Europe; our economy will be balanced against our growing export resource market driven by developing Asia.”
 
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jchancellor-FAypfDUnLy

House prices continue to ease even after rate cut: Residex

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It is fascinating sitting back and watching the tug-of-war over monetary policy between the RBA staff, financial markets, vested industry lobbies, politicians and the RBA's private-sector board. Every single one of these constituencies wants lower interest rates with the exception, perhaps, of the RBA staff.
The CEOs of the two biggest banks in the country, CBA and Westpac, have both come out after the RBA's November cut calling for another one. But of course they would; they know that another reduction in rates would be a huge fillip for the housing market, which is where they have 60% of their balance sheet invested.
The industry lobbies all want lower rates and a lower currency because they are profit maximisers and know that economic growth will be higher the lower the RBA cash rate goes.
Think about the counter-factual: when was the last time you heard an industry representative, or a bank CEO, call for higher interest rates?
You can put politicians in the same camp. Intimating to (as Gillard/Swan have done), or outright calling for (the line Robb/Hockey have taken), the need for an easing in RBA policy is a no-brainer as an electoral strategy. No politician in his or her right mind is ever going to really argue for higher rates, even though there are, numerically, more net savers than net borrowers.
Finally, we have the investment banks and financial markets. For the last two decades Australia's financial and superannuation systems have been built around the performance of the domestic share market. It is vital for the revenues generated by investment banks from their stockbroking, corporate finance, and equity capital market businesses. The decline in share prices, M+A activity, and IPOs since 2007 has been devastating for the finance industry and tangential sectors, such as financial news media, that service them. The same is true of the corporate, retail, government and industry super fund domain, which has yielded members dismal returns as a consequence of being massively, and irrationally, overweight equities.
So the drums are beating from all the major retail and investment banks for the Glenn Stevens' "put". They don't even attempt to hide this in their language. Economists and finance leaders are increasingly calling for "insurance" from the RBA against something going wrong (a "put option" is a form of insurance). We need another rate cut just in case things turn out worse than the RBA is expecting. It would be the RBA's "policy of least regret" to provide a cushion for the economy.
They can smell blood: they already forced the RBA's reluctant hand after just one quarter of low inflation data, which the RBA itself argued could prove, after future revisions, to be a "noisy" anomaly. The markets are currently pricing in a near-100% probability of another cut in December, and they know, correctly, that the RBA has an institutional aversion to setting policy in striking conflict to market expectations. In the RBA's own words, it likes to "smooth volatility", which is why you are seeing its media proxies, like Alan Mitchell in the AFR, try to convince us all that a December cut is unlikely.
The RBA demonstrated with its November decision that this weight of community opinion – the tidal wave of public pressure – has a real impact. As I have noted before, the RBA is genuinely concerned about its "political independence" and about not disenfranchising popular support for its typically unpopular price stability objective (if meeting that objective ever means higher interest rates).
In the AFR this week we had a highly regarded former deputy governor of the RBA, Stephen Grenville, argue that in crises central banks sometimes have to bail-out insolvent banks (a point I have raised repeatedly, and which the RBA's Guy Debelle will tip-toe around in a speech today), accepting, as I have maintained, that "in practice it's difficult to distinguish between illiquidity and insolvency in real time." You bet it is. Amazingly, some people criticised me when I first raised this argument (see <a href="https://www.businessspectator.com.au/bs.nsf/Article/Reserve-Bank-RBA-insolvent-illiquid-Dr-Guy-Debelle-pd20110628-J98NB?OpenDocument">here</a>).
But Grenville goes further. He asserts that the US Federal Reserve's funding of the US government's budget deficit – via the process of printing money to purchase US government bonds – is sound policy. He does not see this as compromising the Fed's political independence. He also finds no fault with similar initiatives by the Bank of England (noting, however, that politicians may end up crimping the UK central bank). And he implores the ECB to go to its own policy extremes to "save" the euro.
Grenville argues that central banks acting unilaterally (i.e., without a direct electoral mandate) in such a fashion can "compensate for the dithering of the democratic process". He believes that history seems to be judging these measures relatively well and concludes that "there will be time, after the crisis, to return to the narrow task of price stability".
I hold a less sanguine view. I don't think history has judged anything yet. And I don't think central banks have been really tested. That test will come, as Grenville concedes in another article, when sovereign states likely decide that the least costly way to staunch the socio-economic problems they face is through a sustained period of inflation (remember this is more or less the explicit goal of the Fed). It will be then that we learn whether central banks have the political fortitude to raise rates again to achieve their tough price stability objectives. I reckon there's a chance we discover that the public appetite for independent central banks has well and truly waned...
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Will the financial markets give the RBA a 'Stevens Put'?: Christopher Joye

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First-home buyers represent a key driver of the residential market, underpinning demand for entry-level dwellings, which in turn creates increased demand across the market. While first-home buyers have averaged only 16% of finance for residential property over the last 20 years, they have a disproportionate impact on turnover activity and consequently prices.
While the focus on the reasons for the decline in first-home buyer demand in the media has been on the impact of the rises in interest rates over 2009-10 on affordability, the majority of the decline has been due to the demand brought forward by the First Home Owner’s Grant Boost Scheme. Total loans to first-home buyers have averaged around 130,000 per annum over the last five years. However, loans to first-home buyers rose to 190,000 in calendar 2009 during the operation of the boost.
As the pool of potential first-home buyers is finite at around the 130,000 per annum level, it means that a future demand of around 60,000 first-home buyers had been brought forward to take advantage of the boost. With about 90,000 to 95,000 loans to first-home buyers expected over each of 2010 and 2011, this “pull forward” effect has now largely been exhausted, and demand from first home buyers should slowly return back to underlying average levels.
This is highlighted in Chart I, which shows a comparison of year-on-year growth in loans to first home buyers after the original First Home Owner’s Grant Scheme was increased from $7,000 to $14,000 in March 2001, compared with lending after the First Home Owner’s Grant Boost Scheme was introduced in October 2008. From a timing perspective the grants were in place for a similar period, being in place for around 16 and 15 months respectively.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/angie1.gif"><img src="/images/stories/angie1thumb.gif"></a>
Interestingly, the trend in first-home buyer activity has been almost identical when comparing the recent boost scheme with the initial first-home owner’s grant. Substantial first-home buyer activity was brought forward to take advantage of the grants while they were in place. This created a subsequent “hole” in first-home buyer demand over the following two year period.
As indicated by the red line reflecting the impact of the most recent boost, first-home buyer activity is now showing year-on-year growth – despite the weaker overall economic conditions in 2011 compared with 2010. In comparison, at a similar point in time after the original first-home owner’s grant (February 2004), there was a setback in first-home buyer demand. However, conditions were different. Where interest rates are now declining, the market in February 2004 had experienced a 25-basis-point rise in interest rates in each of November and December 2003. As a result, there was a pause in first-home buyer demand for about six months before growth in activity again resumed (the next rise in interest rates was to be in March 2005. Consequently, with a benign interest rate environment anticipated over 2012, we anticipate that first-home buyer demand will continue to recover, and by the end of 2012 monthly first-home buyer demand should be reflecting the underlying level of around 130,000 loans per annum.
Healthy first-home buyer demand is important from a turnover and price perspective. Without demand for entry level properties, the impetus for demand from changeover buyers (i.e. upgraders and downsizers) is reduced as they usually have the option of staying in their existing dwelling and sitting out of the market when demand is weak. Similarly, investors can also sit out of the market when conditions aren’t conducive.
Most first-home buyers, on the other hand, are not able to postpone a purchase indefinitely. They will ultimately reach a life stage where they move into the market as purchasers. Those who can’t purchase their desired dwelling at the time will make a trade off by purchasing a smaller dwelling in their desired location, or purchasing in a more affordable location.
Consequently, it is often the movement in first-home buyer demand that creates the flow-on effects in demand across the rest of the market. This is highlighted in chart II. The increase in first-home buyer demand created by the boost scheme resulted in a subsequent rise in changeover activity. Given the much larger number of changeover buyers in the market, the percentage increase in changeover activity was lower, although still substantial – as highlighted by a comparison with the growth in changeover buyers that occurred in 2007 before the beginning of the GFC. Conversely, the fall-off in first-home buyer demand after the boost scheme expired has also resulted in a fall-off in changeover activity that is now stabilising as first-home buyer demand improves.
 
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/angie2.gif"><img src="/images/stories/angie2thumb.gif"></a>


<hr class="system-pagebreak">
Investor demand also coincided with the rise in first-home buyer demand over 2009. However, investor demand is not dependent on owner-occupier demand, with investors able to make purchases at their discretion. While investment fundamentals such as rental growth and yields will also influence investor demand, the prospect for capital growth is by far the key driver of investor demand. It was the rise in prices in 2009 and early 2010 that underpinned the rise in investor demand, and in an environment where prices have been declining over 2011, investor demand has been weakening.
As a result, the recovery in first home buyer demand will have a positive impact on price growth. As highlighted in chart III, there is a strong correlation between turnover activity (as indicated in the table by owner occupier lending for established dwellings) and median house price growth. Periods of rising turnover have corresponded with rising price growth, while weaker activity results in weaker price performance. In recent months, the tapering off in the decline in turnover activity has corresponded with a slowing in the rate of decline in median house prices.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/angie3.gif"><img src="/images/stories/angie3thumb.gif"></a>
Consequently, in contrast to current concerns about price falls continuing, BIS Shrapnel’s view is that the recovery in first home buyer demand will facilitate the recovery in the housing market. Prices have now either bottomed out or should bottom out in the next few months and – barring any major shock on the overseas front – we will see the rising volume of activity will translate to a return of price growth 2012. Turnover will return to growth through 2012 as the recovery in first-home buyer demand gains momentum (although it could take a little longer in New South Wales given its recent changes to first-home buyer stamp duty exemptions) and flows through to changeover demand and increased activity across the market. The turnaround in price expectations will also drive stronger investor demand through 2012, which in turn will facilitate greater turnover.
As first-home buyer demand returns to underlying levels by the end of the year, price growth will strengthen and pick up further in 2013, particularly with our expectation of an improved economic outlook. The increased activity for existing dwellings will also allow upgraders to trade up into new houses and drive a recovery in new house commencements. Nevertheless, despite the expectation of a recovery in the market, the prospects for substantial rises in prices will be constrained by current strained affordability. In those markets in oversupply or close to balance, it means that the current price declines will halt, with only minimal growth coming through, while in those markets where there is a rising deficiency, price growth is expected to be stronger, although still only moderate (mid-single-digit growth per annum).
Angie Zigomanis is senior manager of <a href="https://www.bis.com.au/" title="BIS Shrapnel" target="_blank">BIS Shrapnel.</a>
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angiezigomanis-VT64gGbExQ

First-home buyers to drive 2012 housing price recovery: BIS Shrapnel's Angie Zigomanis

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The Bedarra Island Resort in Far North Queensland has been sold to the Charlton Hotel Group through CBRE Hotels agents Wayne Bunz and Paul Nyholt.
The family-owned hotel group will undertake repairs and refurbish the resort, which has been closed since February’s Cyclone Yasi.
<img src="/images/stories/beddara.jpg">
Just three months after Bedarra was put on the market it was sold in November to the Queensland-based family company with links to former Australian Olympic gold medallist swimmer Andrew "Boy" Charlton. The price has not been disclosed. 
Bedarra Island Resort occupies 44.96 hectares of land on the island and prior to the cyclone the resort offered secluded accommodation for just 32 guests in 16 luxury villas, which enjoyed a strong trading history in recent years.
The resort, which was named as Australasia’s Leading Boutique Resort at the World Travel Awards in 2007, is accessible via Mission Beach or direct helicopter flight from Cairns.
Refurbishment works will commence early in the new year, with reservation enquiries being taken from late 2012.
And it’s likely to have fewer villas and a shortened opening season.
Charlton Hotel Group general manager Sam Charlton says a sustainability analysis of Bedarra Island Resort would be undertaken in conjunction with the repairs to assess the population density the island could support, particularly in relation to waste, water and energy requirements.
“We recognise that Bedarra is a unique resort in a unique location,” says Charlton, who is considering swapping the diesel generators for solar power.
“The surrounding reef and rainforest ecosystems are of the utmost importance and we want to ensure these attributes which make the island attractive to today's guests are maintained and enhanced for future generations to enjoy.”
Charlton’s hotels include the Metropolitan Motor Inn, Toowong Villas and Mt Ommaney Hotel Apartments and the Kingsford Smith Motel, all in Brisbane.
Sam Charlton is the grandson of Olympic swimming legend Andrew "Boy" Charlton.
Bedarra Island is renowned for its unspoilt rainforests and palm-fringe beaches. It is the second largest in the “Family Group of Islands” that form part of the Great Barrier Reef.
Acting under instructions from the Swiss-based Pamoja Capital group owners, negotiations are continuing on the sale of the remaining asset in the Hideaway Resorts portfolio, the Dunk Island Resort.
Prior to Cyclone Yasi Dunk was an established and profitable family friendly resort offering accommodation across 160 rooms.
The significant undamaged infrastructure at Dunk Island Resort includes a sealed airstrip that caters for flights from Cairns International Airport, staff quarters, a nine-hole golf course (which could be extended to 18 holes), mains power, a freshwater dam and a sewerage treatment plant.
Both islands attracted <a target="_blank" href="https://www.propertyobserver.com.au/leisure/fnq-islands-overcrowded-with-100-strong-buyer-interest/2011102652078">significant investor interest </a>when they were <a target="_blank" href="https://www.propertyobserver.com.au/retail/not-so-perfect-islands-for-sale-in-fnq/2011090751465">put on the market</a>.
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Bedarra Island sells to Queensland's Charlton Hotel Group

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Investment bank JP Morgan has joined UBS and Goldman Sachs by forecasting the Reserve Bank to cut interest rates to 4.25% when it next meets on December 6.
The bank has changed its mind due to the continuing turmoil in Europe, the Australian government’s tight fiscal policy and the strong Australian dollar.
JP Morgan economist Stephen Walters says “escalating global concerns” are the key reason the central bank will continue with its easing policy.
The bank expects a further 25-basis-point cut in the first quarter of 2012, which would take the cash rate to 3.75% for the first time since February 2010.
According to Walters, the forecast cut will be to “mitigate the harm Europe is doing to the economy”.
Both Westpac and ANZ are forecasting interest rates will remain unchanged in December, with the next rate cut tipped for February, but both have said global factors may force the RBA’s hand.
“Provided we don’t see a sharp deterioration in global conditions, February seems the most likely window for another 25bps cut in the cash rate to 4.25%,” ANZ said last week.
ANZ chief economist Warren Hogan says if there continue to be “bad days in the global markets”, then there would be a case for an “insurance cut by the RBA in December”.
The latest six-monthly report by the World Bank on East Asia said the major threat to sustaining strong growth in the region was the continuation of financial turmoil in Europe.
 
 
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lschlesinger-FZcF9M3vE6

JP Morgan and other investment banks tip December rate cut

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??Sydney office landlords look well placed for an increase in rental returns over the coming months, with the city entering an accelerating rental growth phase, according to a third-quarter global office market outlook report from CBRE.

Sydney’s strong growth prospects are in contrast to other major Asia Pacific prime office locations such as Hong Kong, Singapore and Shanghai, where rental growth is slowing.
Rental growth is also expected to slow down in the London and New York, according to CBRE.
<img src="/images/stories/cbrenov23.gif">
The report also notes that leasing deals in Melbourne (alongside Taipei, Kuala Lumpur and India) were modest relative to their market size in the third quarter of 2011.
Sydney’s strong position is in contrast to only modest improvement in global office market sentiment, with the CBRE Global Office Rent Index gaining just 0.9% in the third quarter of 2011 due to occupiers remaining “more cautious about space commitments”.
The 0.9% gain is the lowest recorded since the first quarter of recovery – the second quarter of 2010 – and 32 basis points below the 1.2% average quarterly gain recorded since the market’s trough.
The index was boosted by the Asia Pacific region, which recorded a 12.9% year-on-year increase in the third quarter.
However, for the third quarter, rents increased by a modest 2.2%, indicating that rent increases have slowed in the region.
Despite the global rental growth slowdown in the third quarter, 15 of the CBRE Global Office Rent Cycle’s 18 prime markets passed their respective troughs (including Sydney), while three markets experienced rental declines.
The three markets to experience rent declines were Tokyo, Los and Angeles and Madrid, the same three markets that experienced rent declines in the second quarter of 2011.
According to CBRE, global construction completions have abated in 2010 and 2011, helping to drive office demand and slowly absorb some of the vacant space in the market.
However, net absorption remains well below pre-recession levels, both globally and in the major regions. Asia is the exception, where office demand and absorption have been stronger than their pre-recession levels.
The report notes that while economic growth has moderated in the Asia Pacific, the employment rate, consumer confidence and economic remained strong in the third quarter.
 
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Sydney office rents poised for rapid growth: CBRE

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Australia’s largest apartment developer, Harry Triguboff, has confirmed that Chinese buying of inner-Sydney apartments has halved in the last month. The China squeeze on its property market and fears about the level of our dollar are now having a direct effect on the Australian dwelling market.  Triguboff believes that the sharp cutback in Chinese apartment demand will probably reduce apartment prices in Sydney by about 10%, but the prices will not collapse. He believes that a fall in apartment prices will flow on to the whole dwelling market in Sydney.  But what we are looking at is a much bigger squeeze on Australian finance, because as I revealed last week, European banks are now looking to quit their Australian loans (<a href="https://www.businessspectator.com.au/bs.nsf/Article/Europe-crisis-markets-investment-banks-Germany-Fra-pd20111117-NNS8B?OpenDocument&amp;src=mp" target="_blank">The euro's last-minute print job</a>, November 17). The Chinese apartment pullback and the European bank withdrawal plus the truly astounding events in Europe – where (in the words of Westpac’s London man James Shugg) the world is watching a train wreck taking place in slow motion – is going to intensify the pressures on the Reserve Bank to reduce interest rates a lot further.  We are not on the front line, but the missiles have reached our shores.  Yesterday I looked at the effect of the European mess plus the China downturn and its possible effect on Australian property and other areas (<a href="https://www.businessspectator.com.au/bs.nsf/Article/Australian-property-prices-China-real-estate-apart-pd20111122-NTRM2?OpenDocument&amp;src=sph" target="_blank">China triggers the recession alarm</a>, November 22).  Mainland Chinese investors had been almost the sole buyer of Sydney apartments, investing about $2 billion a year and they were major buyers in Melbourne, taking their annual investment rate to about $3 billion. They were seeking to have some of their funds outside of China as a risk hedge.  But there are now much greater liquidity pressures at home and those that bought when when the dollar was around $1.08 are showing a 10% loss. At the moment, there are a great many apartment towers being built in Sydney and to a lesser extent Melbourne, where the mainland Chinese have bought off the plan, usually with a 10 % deposit. Triguboff says so far all Chinese buyers have honoured their agreements but no one can be sure which way the Chinese will jump if the global crisis intensifies. If they failed to honour their agreements, then apartment prices would almost certainly fall by more than 10%. On the other hand, lower interest rates and the lift in rents are starting to rekindle some Australian buying of apartments, which will be helped by the lower prices. But Triguboff fears that the Australian banks may be on the way to engineering their own train crash, albeit nothing anywhere near as serious as the European disaster. Australian banks – having been the main driver of higher house and, to some extent, apartment prices – are once again lowering the values of dwellings in determining how much they will lend. While the Chinese were buying apartments that did not matter, although it has contributed to a large number of unsold houses in most capitals. If Australians can’t get bank finance to buy apartments and the Chinese withdrawal intensifies, then we will see even greater pressure on dwelling prices. This is not a forecast, but when banks push prices up via their lending policies and then push them down with different policies, then they have only themselves to blame for any losses. Of course, in the apartment market local councils and state governments have taken actions that have increased the price of apartments by about 15%. If the councils and other bodies made the rules for approvals straightforward and made their building requirements fit into economic construction methods and market demand, then apartment costs would fall (<a href="https://www.businessspectator.com.au/bs.nsf/Article/Harry-Triguboff-China-apartment-property-interest--pd20111026-MYRRJ?opendocument&amp;src=rss" target="_blank">Apartment antics hurt Australia</a>, October 26). This would enable Australians to buy them, but might affect the values of existing apartments.  There will be many twists in this tale, some of them rather unpleasant.
This article originally appeared on <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/apartments-Australia-China-housing-market-prices-r-pd20111123-NURMV?OpenDocument&amp;src=sph&amp;src=rot">Business Spectator</a>.
 
 
 
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rgottliebsen-VjLFh9nsD4

The sting in a China property tale: Robert Gottliebsen

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Property fund manager Cromwell has paid $186 million to acquire Leighton Properties’ HQ North Tower in Brisbane’s booming Fortitude Valley.
The sale price set a new record for the largest office transaction for a Brisbane city fringe development in Queensland history.
The sale was negotiated by Bruce Baker, Richard Butler and Bill Tucker from CBRE.
HQ North Tower contains 28,000 square metres of office space as well as ground-floor retail and forms part of the HQ precinct, a new commercial zone comprising 44,000 square metres of commercial office and retail space, restaurants, cafés, wine bars and a public plaza.
Tenants include AECOM and Bechtel.
The south tower was old last year to Swiss-based fund manager AFIAA for $94 million.
HQ was built at a cost of $177 million and designed by architects Bligh Voiler Nield.
Leighton Properties managing director Mark Gray says the capital from the sale will be redeployed in further opportunities both in the residential and commercial sectors.
“This sale reflects the underlying strength of the Valley office market and the quality of the tower’s award-winning, sustainable design.
“The sale further reinforces Fortitude Valley as the premier location for investment in Brisbane outside of the CBD,” says Baker. “It also demonstrates the value of high-quality assets with first-rate sustainability measures.”
In addition to the 6 Star Green Star – Office Design and Office As Built v2 ratings, the development has also recently received several national awards including Urban Taskforce of  Australia’s National Development of the Year 2011; Brisbane Lord Mayor’s Sustainability in Business Award 2011; and UDIA QLD Boral Awards for Excellence in Large Retail/Commercial.
The South Tower is the headquarters for Leighton Properties and Leighton Contractors.
Cromwell also purchased Leighton Properties’ proposed new office tower in the Ipswich CBD earlier this month for $93 million.
 
 
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Cromwell pays record $186 million for Fortitude Valley office tower

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To my surprise, very few investors (and sadly fewer property gate-keepers) know about the National Rental Affordability Scheme.  And if they know something about it, then they are dismissive of it.  And mostly – I feel – out of fear and/or ignorance.
Yes, like most government schemes, what NRAS is and its merits have been poorly communicated.  And in some instances, its application further entrenches its incorrect “welfare housing” persona.  But overall, it is a great scheme and too few investors (and developers) are taking the $10,000 annual rental subsidy seriously.
So what exactly is NRAS?
The National Rental Affordability Scheme or NRAS is a federal government initiative designed to tackle the issue of affordable housing.
NRAS is not a public or social housing program, but rather a tax incentive to provide quality housing at below market rental rates.
Run in conjunction with state governments, NRAS aims to induce more investment in the lower price range of the residential construction and rental market by offering inducements to investors who participate in the scheme.
NRAS offers property investors a tax-free incentive for each property for a maximum of 10 years.
Currently, this incentive is $9,524 per year for every NRAS dwelling an investor owns, comprising a federal government contribution of $7,143 per dwelling, available as a refundable tax offset; plus a state or territory contribution of $2,381 per dwelling per year, as a cash payment or in-kind financial support.
In return, rents for NRAS dwellings must be charged at no more than 80% of the market rent valuation and there is to be a maximum of one rent increase for each dwelling each year.
In Queensland for example, the state government maintains a list of NRAS-approved tenants, who must meet strict eligibility requirements.
When a vacancy occurs, eligible rental applicants are referred to approved tenancy managers who manage NRAS properties on behalf of owners.
Standard residential tenancy laws apply to NRAS properties just as they do for any private residential investment.
In other words, the same rules regarding evictions, maintenance obligations and responsibilities of tenants apply to NRAS tenants as they do to other tenants in the private sector.
Rents are indexed annually in line with the percentage change in the rental CPI component, except in years four and seven, when independent valuations are required.
And importantly, investors may exit the scheme at any time with appropriate notice and without any financial penalties.
In general, NRAS projects are well-located in terms of jobs, amenities and public transport.  And in general, the design and quality of NRAS dwellings compares favourably with any private non-NRAS dwelling.
NRAS properties often co-exist within developments with other non-NRAS product.
Some of the points of difference that NRAS offers to property investors are:
•             all the benefits of a normal investment property with added annual tax-free government incentives
•             investors can apply property expenses, non-cash deductions and allowances against a lower assessable rental income, increasing the gearing benefit
•             more than 1.5 million Australian households are eligible to rent NRAS properties, hence vacancy risk is negligible
•             tenants are selected on their potential to be good tenants and their capacity to meet strict eligibility requirements
•             in many markets, NRAS properties often deliver a cash flow-positive investment
•             importantly, self-managed super funds can purchase these properties
•             NRAS dwellings are private property – no government holds or caveats.
So here we have a scheme that shows many investment properties as cash-flow positive in the first year – and these are more often than not backed up by impressive (well by residential property standards) independent financial analysis.
What’s not to like here?  You are making money from day one; providing affordable rent for those that are finding it a bit hard; have a 10-year rental guarantee (assuming the government doesn’t water down or scrap the scheme); hassle free-management (on paper at least); and a box of chocolates from the government every year.
It appears to tick all the boxes.
Several of our developer clients inform us that their NRAS product is now the first to sell to investors.
Yet the banks are scared of it and will only finance 70% of the purchase price.  Some banks flatly refuse to be involved.  So, too, do too many solicitors, accountants, loan brokers and real estate agents.
True to form, valuers are discounting end prices by 20% – one assumes because the owner can only charge 80% of market rent and most valuers won’t include a subsidy when determining value, despite it coming from the government and being a 10-year program.
Yes, NRAS is somewhat new; it hasn’t been that well communicated and it is a government-funded subsidy.  But welfare housing it isn’t and gone are the days where one’s residential investment strategy was as simple as “buy and forget”.
Our mindset is that property investors will need to look for every break they can get.
NRAS is a break worth considering.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/national-rental-affordability-scheme-opportunities-for-nsw-and-queensland-investors/2011112252029">Queensland and NSW have received more than half of the 17,000 incentives in the latest round of funding, </a>including for properties to be built in areas impacted by floods.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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Investors should consider buying NRAS properties: Michael Matusik

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A combination of declining rental vacancies and an influx of international workers has caused rents to rise by 14.6% in the inner-Perth market and by a whopping 18.6% in Freemantle as the city’s rental crisis deepens.
In Perth, the median weekly rent for a house has risen to $550 and $500 for an apartment, while in Freemantle a house will cost $593 a week to rent and an apartment $400 per week.
Rents for the September quarter are up 10.5% in Cockburn in Perth’s southern suburbs and 8.7% in Stirling West in the city’s northern suburbs.
Rents have risen by 7.9% in the western suburbs, where the average weekly rent for a house in Cottesloe, Mosman Park and Claremont is now $750 a week, compared with $695 three months ago.
Across the Perth metropolitan region, rents have risen 4.2% for the quarter, with median house and multi-residential rents increasing by $10 per week for the quarter, taking the median house rent to $400 per week and the median unit rent to $380 per week.
“This latest increase in rents will no doubt place further pressure on existing household budgets that are already under stress from across the board increases in living costs, including with groceries, gas and electricity,” says David Airey, president of the Real Estate Institute of Western Australia.
<table cellpadding="0" cellspacing="0" border="0" style="width: 352px;"><tbody>
<tr>
<td width="161">
Q3 2011
</td>
<td colspan="2" width="64">
House Median
</td>
<td width="64">
Unit Median
</td>
<td width="64">
Total Median
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Perth Metro Region
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$395
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Armadale/Serpentine
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$345
</td>
<td valign="bottom" nowrap width="64">
$310
</td>
<td valign="bottom" nowrap width="64">
$330
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Bassendean/Bayswater
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$390
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
<td valign="bottom" nowrap width="64">
$375
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Belmont
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$390
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Canning
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$360
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Cockburn
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$420
</td>
<td valign="bottom" nowrap width="64">
$375
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Fremantle
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$593
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$475
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Gosnells
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$385
</td>
<td valign="bottom" nowrap width="64">
$320
</td>
<td valign="bottom" nowrap width="64">
$370
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Hills
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$320
</td>
<td valign="bottom" nowrap width="64">
$395
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Joondalup North
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$430
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Joondalup South
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$450
</td>
<td valign="bottom" nowrap width="64">
$450
</td>
<td valign="bottom" nowrap width="64">
$450
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Melville
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$470
</td>
<td valign="bottom" nowrap width="64">
$370
</td>
<td valign="bottom" nowrap width="64">
$433
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Perth City
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$550
</td>
<td valign="bottom" nowrap width="64">
$500
</td>
<td valign="bottom" nowrap width="64">
$500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Rockingham/Kwinana
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$360
</td>
<td valign="bottom" nowrap width="64">
$300
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
South Perth/Victoria Park
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$450
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Stirling East
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$370
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
<td valign="bottom" nowrap width="64">
$360
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Stirling West
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$500
</td>
<td valign="bottom" nowrap width="64">
$388
</td>
<td valign="bottom" nowrap width="64">
$440
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Swan
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
<td valign="bottom" nowrap width="64">
$370
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Vincent/Stirling SE
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$500
</td>
<td valign="bottom" nowrap width="64">
$360
</td>
<td valign="bottom" nowrap width="64">
$405
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Wanneroo North East
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$420
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$410
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Wanneroo North West
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$340
</td>
<td valign="bottom" nowrap width="64">
$375
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Wanneroo South
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$415
</td>
<td valign="bottom" nowrap width="64">
$353
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Western Suburbs
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$750
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$500
</td>
</tr>
</tbody></table>
Source: REIWA
As point of comparison, Sydney, Brisbane and Melbourne rents were unchanged over the September quarter according to research Australian Property Monitors.
A <a href="https://www.propertyobserver.com.au/landlords/perth-vacancies-tighten-for-fifth-month-in-a-row-sqm-research/2011112252474?source=flicker1" target="_blank">report put out today by SQM Research</a> reveals that the vacancy rate in Perth fell for the fifth straight month in October, tightening by 0.2% from 0.9% to 0.7%, with the number of rentals falling from 1,436 to 1,119.
The situation has deteriorated so much that tenants are offering $20 to $30 above the asking price to secure a lease or putting up with living in accommodation that Burswood property manager Hazel MacDonald told the Sydney Morning Herald she would not put her dog in.
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