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>
Westpac is expecting history to repeat itself over the next 10 months, with the bank forecasting a 25-basis-point interest rate cut tomorrow, followed by cuts in February, May and August next year. 
Based on an improved inflation outlook for 2012, Westpac chief economist Bill Evans says the bank remains of the view that three more rate cuts will follow the forecast Melbourne Cup Day rate cut, taking the official rate to 3.75% by the third quarter of 2012. 
“The board has changed rates at every one of the last five November board meetings, beginning in 2006. Governor [Glenn] Stevens, who was appointed in July 2006, has changed rates at the November meeting every year he has been in office,” says Evans. 
“It is not a coincidence the bank has been more active in November, February, May and August. 
“Since Governor Stevens was appointed, he has changed rates on 19 occasions – 10 (including five in November) in either November, February, May, or August and 9 in all the other remaining eight months. 
“November, February, May and August provide the bank with new information on the inflation track (released quarterly in October, January, April and July) and precede by four days the quarterly Statement on Monetary Policy. In this statement, the bank is able to set out its growth and inflation forecasts for the next three years and provide a detailed explanation for any change in policy,” Evans says. 
The bank was the first of the major lenders to forecast an interest rate cut before the end of the year. 
<a href="https://www.propertyobserver.com.au/finance/interest-rates-heading-down-in-december-2011-westpac/2011071550822">Since July, the bank had been forecasting a rate cut in December</a>, but altered its view to forecast one tomorrow based on the improved inflation outlook.
<img src="/images/stories/westpacoct31.gif">
Source: Westpac 
“We expect that our [inflation] forecast of 2.4% in 2012 is on track to be achieved,” Evans says in the latest Westpac weekly briefing. 
However, Westpac is betting against interest rate markets, which are predicting another 25-basis-point cut in December. 
“There are a number of factors which we think will stay the bank's hand in December. Firstly, it is likely to be a little sceptical about the sharp fall in reported inflation. Note that the Bureau of Statistics is now seasonally adjusting 62 of the 87 expenditure classes in the headline CPI – that compares with 20 under the previous approach,” Evans says. 
“The low 0.3% read on underlying inflation for the September quarter (compared to market forecasts of 0.6%) can be largely explained by seasonal adjustment with the seasonally adjusted headline printing 0.4%, compared to 0.6% for the unadjusted print.” 
Not all economists are certain of a rate cut tomorrow, including <a href="https://www.propertyobserver.com.au/economy/history-suggests-rba-will-sit-still-next-week-hsbc-s-paul-bloxham/2011102852110" target="_blank">HSBC’s Paul Bloxham</a>, who says the most likely scenario is that the bank will sit still. 
CommSec senior economist Craig James puts the chance of a Melbourne Cup Day rate cut at just 50-50.
</body></html>

lschlesinger-FZcF9M3vE6

Westpac forecasts four rate cuts in next 10 months

<html><body>
There is a lot of talk about house prices in Australia. We hear much less about rental costs. Importantly for the inflation debate, house prices, which tell us the cost of buying an asset (namely a home), are not included in the ABS's measures of inflation.
However, the cost of securing accommodation in this country – that is, rents – are naturally a key component of the inflation data. Indeed, rents alone make up 6.7% of the overall inflation index. (There are other housing-related costs in the inflation data, such as the cost of new dwellings excluding land, and the cost of making major improvements to homes.)
The cost of renting is relevant to owner-occupiers, investors and renters. When you buy a home, you save paying rent to another person. Alternatively, think about it this way: when you purchase a property and choose to live in it, you are foregoing the rental income you could earn if you rented it out. In the jargon, this is known as "imputed rents".
For investors, rents are a critical share of their total income, or "total return", which comprises capital gains (i.e., changes in the market value of the asset) and the income they get paid by the tenant.
Finally, for those who do not own the actual asset and decide to rent, changes in rents are important because they reflect changes in the cost of putting a roof over your head. Again, in the jargon, economists like to refer to this as the cost of "consuming housing services".
I have dived into the ABS's inflation data to see what has been happening to rents over time. And, as the chart below shows, it is clear that there has been a structural increase in rents since the early 1990s (click to enlarge).
<a href="/images/stories/oct31.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/oct31thumb.gif"></a>
Prior to about 2007, annual rental increases never exceeded 4% per annum. That changed in 2007 and peaked in December 2008 when rental costs rose to 8.4% per annum (refer to the red line in the chart above). While they pulled back over 2009 and 2010, rental costs have stabilised at a high 4% plus pace, which is well above the 2.3% per annum average rate between 1992 and 2007 (see the orange line).
More worryingly, since the end of last year, the cost of renting has started escalating again with the year-on-year growth rate hitting 4.6% per annum in the September quarter. The explanation for this structural change likely lies in an underinvestment in housing supply, which is something the RBA (more recently) and I (since 2003) have been banging the table about for a while.
</body></html>

chrisjoye-JYhJsTrNRC

The great Australian rental inflation

<html><body>
The property market has hit a soft patch, with many adopting a wait-and-see attitude. 
However, there are many reasons why a soft market is not the time to hibernate. A slump in real estate can be the ideal time to act and secure a good investment property. 
For those who have been dreaming of owning a bigger home, or investing in properties in premium suburbs and districts, a soft property market can present good conditions to expand or establish a property portfolio. With more properties for buyers to choose from, sellers face stiff competition and have to vie for the buyers’ interest.
 Sellers, whose properties have been on the market for a longer period, may be more open to negotiations with serious buyers. 
Home buyers and investors need all the facts in order to make a sound property investment. 
Research is of paramount importance when purchasing property. A buyer must keep track of the outperforming and emerging suburbs and highly sought after areas in Melbourne. 
In cases where properties are passed in during auctions, post auction negotiations are crucial. 
With the rental market still going strong, this means that investors can look forward to reaping a profit from their investments within a shorter time. This is definitely another good reason to enter the property market now. 
As the warm weather continues through spring, we’ll see an increase in listings. Buyers are now beginning to purchase properties that were previously unattainable. 
The highly sought after inner suburbs are now within reach for many couples and families that have always wanted to buy in these areas. 
In short, buyers can benefit from the current property market. 
Lauren Staley is director of <a href="https://www.infolio.com.au/" target="_blank">Infolio</a>, a buyers’ advocacy and property management company.
</body></html>

lstaley-3qCRAud7Vh

A soft market could be the best time to buy

<html><body>
Just three months after Julia Gillard cut the ribbon at the opening of 1 Bligh Street, it’s now been confirmed that the federal government intends to relocate the Commonwealth offices into the newly completed green-star office building.
The move has been confirmed by the Special Minister of State, Gary Gray, who will shortly sign off on the lease for the Bligh Street address.
It will bring an end to the nearby occupancy of the Phillip Street offices, which dates back to the Hawke government occupancy.
Gray said in a statement that the government had outgrown the Phillip Street location.
The Sydney Commonwealth Parliament Offices are currently located at 70 Phillip Street, providing office and meeting facilities for the Prime Minister and Cabinet, office-holders and visiting senators and members of the House of Representatives.
''It has become clear that the existing premises are not capable of serving the needs of senators and members into the future,'' he said.
Over the past 15 months, the Department of Finance and Deregulation has been managing a search for alternative premises and a number of prospective tenancies have been considered. 
It's not a done deal but 1 Bligh Street<a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191"> </a>has been selected as the preferred tenancy. 
“The actual term of the lease and costs involved are still being negotiated,” Gray says. 
Subject to due diligence processes, and the obtaining of necessary Public Works Committee approval and the negotiation of appropriate leasing arrangements, the relocation to 1 Bligh St will take place in 2012.
It is expected the Commonwealth offices will be located at 1 Bligh Street for at least similar 25 year plus tenancy to the current location.
Gray says the move would deliver operational savings through the building's six-star green star energy rating.  <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191">Its features</a> include water recycling measures, which reduce mains water usage by up to 90%; building design and features such as the double-skin façade and sun-shading, which reduce air-conditioning energy consumption by up to 50%; and a 42% CO2 reduction when compared with similar sized conventional office towers. 
“The Phillip Street building, even if it were renovated, has inherent negative features in relation to access and egress, security, parking and flexibility. There’s also very little flexibility in floor plans, limited information and communications technology capabilities and it cannot provide live broadcasts directly from the premises,” Gray noted.
The property is <a href="https://www.propertyobserver.com.au/office/sydney-s-1-bligh-street-valued-at-%24629-million/2011101051875" target="_blank">currently about half-tenanted</a>, and recently Bank of America Merrill Lynch analyst Simon Garing <a href="https://www.propertyobserver.com.au/office/dexus-will-take-four-years-to-lease-1-bligh-street-merrill-lynch-analyst/2011101951988" target="_blank">said it would take developer Dexus four years to fully lease the space</a>.
Dexus shareholders have been advised the newly completed 1 Bligh Street Sydney could be 67% leased by Christmas 2011.
“We expect to execute a lease in respect of three floors prior to Christmas, which will increase the percentage leased on the building to 67%,”  Victor Hoog Antink, Dexus chief executive officer told the annual general meeting.
It is understood to be the government leasing deal.
“We are targeting to be 80% leased by June 2012,” he anticipated. 
It was Dexus’ seventh annual general meeting since stapling in 2004.
</body></html>

jchancellor-FAypfDUnLy

Government aims to move into Dexus' ultra-green 1 Bligh Street

<html><body>
One Towers Road, Toorak, owned by former JPMorgan Australia chairman Brian Watson, has been listed with record-setting expectations.
Set on more than 3,200 square metres, the six-bedroom house was once owned by businessman John Elliott.
Its Kay and Burton listing agent Michael Gibson expects the house to attract more than $26 million and set a new Victorian record.
The empty-nester Watson family bought the <a target="_blank" href="/news">Toorak</a> property  in 2001 for $11.1 million, a then record-setting price.
The more impressive neighbouring mansion next door at 3 Towers Road went on the market in May but has been withdrawn from sale after no offer matched the owner's $30 million-plus expectations.
''We had $25 million offered [for number three] and the vendor decided not to take it,'' Gibson told The Age.
The sale for about $26 million of Ilyuka at Portsea to Melbourne businessman John Higgins in December 2010 is the record price for Victoria, followed by the reported $25 million sale in 2010 for the former Baillieu family estate on St Georges Road, Toorak when bought by soft-drink magnate Harry Stamoulis.
It was bought from the Inge family, which owns the aged-healthcare and property development company Zig Inge Group. The Inge family had paid $14.8 million for the St Georges Road property in February 2009. The seven-bedroom Federation house had been the home of Diana Baillieu, mother of Victorian Premier Ted Baillieu, until she died aged 93 in 2008.
</body></html>

Towers Road Toorak property listed with record-setting $26 million plus price hopes

<html><body>
Moscow commercial real estate has been named the most attractive and desirable in Europe on the 13th LaSalle Investment Management’s European Regional Economic Growth Index.
The Russian capital clinched first place due its size and great growth potential on the list, which contains cities where demand for real estate is likely to be highest in the medium term.
The index includes 326 regions in 33 European countries with previous top-ranking cities, including Paris, Munich and London, dropping down the list.
London takes second, with Munich and Paris stable at 3 and 4, then Istanbul and Luxembourg moving higher.
It was noted the planned expansion of Moscow had inspired investors across Europe.
The economic downturn and rising concerns about government debt in the EU also helped Moscow climb in the rankings.
Jones Lang LaSalle says investment into Russian real estate will reach a record high in 2011, already jumping 80% year on year in the first nine months to $5.25 billion.
The index noted foreign investors contributed 44% of all investment, up from a 14% share a year ago.
It notes the business environment in Moscow still leaves much to be desired.
Moscow made its debut on the LaSalle Investment Management’s European Regional Economic Growth Index in 2009.
After its spectacular entry into the top 10 in 2009, Moscow ranked second in 2010 notwithstanding its challenging business environment.
Claus Thomas, MD LaSalle Investment Management Germany, notes that the annual European Regional Economic Growth Index produced by LiM research, is 60% based on current growth and outlook, 20% on wealth in the local population and 20% on the business environment, including legal aspects, political security and tax considerations.
</body></html>

Moscow most attractive market in Europe for commercial property: Jones Lang LaSalle

<html><body>
The catch-cry of the property buyer – “save time, money and stress” – has been used over and over within this specialist industry sector since the first of these agencies appeared in New South Wales in the mid-1990s. Interestingly, this area of the real estate industry remains largely unknown. A quick internet search reveals that that there are a total of around 50 buyers’ agents in NSW, 20 of whom are accredited members of the REBAA (Real Estate Buyers’ Agency Association of Australia). Of the total number only 20 or so appear on a web search, and these tech-savvy businesses appear to have the lion’s share of the market. 
There is something intriguing about buyers’ agents. They appear seemingly out of nowhere at open inspections with clients in tow, and at many auctions nowadays their presence is noted with alarm by prospective bidders who hadn’t thought about bringing one with them. This does seem like a killer tactic if you are determined to buy that ideal property and scare the daylights out of the competition at the same time. 
But the question is: who really needs a buyers’ agent? After all, buyers have been successfully purchasing property for themselves for centuries without needing to engage a professional to do it for them. 
My industry colleagues and I constantly face the same arguments, and to a certain extent they do make sense until you understand our logic. 
Here are some of them from both points of view: 
The buyer: 
<ul>
<li>Why would I engage a property buyer in what is clearly a buyers’ market?</li>
<li>I wouldn’t engage a property buyer because I have purchased before and always got the best price.</li>
<li>I know the market very well and don’t need to pay for someone to advise me on that score. </li>
</ul>
The Agent: 
<ul>
<li>Even in a buyers’ market an experienced buyers’ agent can ensure that 1) you have been provided with extensive market information related to your proposed purchase and are able to make an informed decision on price, and 2) endeavour to buy the property for you at the best possible price (and not the price the vendor or his real estate agent had anticipated). Expectation is one thing; reality is another. </li>
<li>From our viewpoint everyone needs the best advice they can get when investing large amounts of money in purchasing either a home or investment property. It is not enough to rely on the mother-in-law’s advice (with great respect to those lovely ladies). There are a number of critical factors that can affect the successful negotiation of a purchase (at auction or by private treaty), but the best known of these are market knowledge, the emotional cost factor, nerves on the day and negotiation skills. </li>
</ul>
If you had a toothache would you pull the offending thing out yourself just to save money? Would you represent yourself in court, or try to fix your broken boiler at home? As buyers’ agents we believe you should have a professional on your side of the fence. The vendor will have retained a real estate agent, whose only objective is to get the highest possible price he can for your property. What about you? In your own best interest you need representation too. 
Pulitzer Prize-winning humourist Dave Barry said about negotiating: “I strongly advise you to use a broker, for the same reason that I'd advise you to pay somebody else to repair your automobile transmission, namely: no matter how incompetent or overpaid this person is, he or she can't possibly screw things up as badly as you would if you did it yourself.” 
On the more serious side John McGrath of McGrath Agents said: “Often seen as ‘the other side of the coin’, buyers’ agents comprise a very professional industry group. The majority have spent a large part of their careers working as real estate agents before changing roles and have gained invaluable market experience as well as perfecting their negotiating skills.”
Engaging a property buyer may be one of the best decisions you have ever made.
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a href="https://www.primepropertybuyer.com/" target="_blank">Prime Property Buyer</a>.
</body></html>

tmansfield-Rk8rBecHRA

Engaging a buyers' agent will level the playing field

<html><body>
Interest rates have moved on the last five Melbourne Cup Days, mostly upwards, once downwards, and AMP Capital chief economist Shane Oliver expects the RBA to cut the official cash rate by 0.25%, taking it to 4.5%, when it meets on Tuesday.
“Of course, a cut is not assured as the RBA may take the view that the moves in Europe have reduced the risks to the global outlook, so as such we attach a 60% probability to a cut occurring,” Oliver notes.
“However, the case to cut is very strong.
“Despite the European debt rescue plan, the global growth outlook is still much weaker than when interest rates were raised a year ago to 4.75%.
“Likewise domestic demand has been weaker than expected, with unemployment now drifting higher.
“And the much-anticipated September quarter inflation figures have confirmed that the inflation outlook is far more benign than the RBA was assuming a few months ago,” Oliver says.
“Current settings for interest rates – which assumed much stronger global and Australian growth and a worsening profile for underlying inflation – are too high.
“So if it’s not on Tuesday we would anticipate a cut in December,” Oliver suggests.
 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="154" valign="top">
Effective Date
</td>
<td width="154" valign="top">
Change in cash rate Percentage points
</td>
<td width="154" valign="top">
New cash rate target Per cent
</td>
</tr>
<tr>
<td width="154" valign="top">
Nov 3, 2010
</td>
<td width="154" valign="top">
+0.25
</td>
<td width="154" valign="top">
4.75
</td>
</tr>
<tr>
<td width="154" valign="top">
Nov 4, 2009
</td>
<td width="154" valign="top">
+0.25
</td>
<td width="154" valign="top">
3.50
</td>
</tr>
<tr>
<td width="154" valign="top">
Nov 5, 2008
</td>
<td width="154" valign="top">
-0.75
</td>
<td width="154" valign="top">
5.25
</td>
</tr>
<tr>
<td width="154" valign="top">
Nov 7, 2007
</td>
<td width="154" valign="top">
+0.25
</td>
<td width="154" valign="top">
6.75
</td>
</tr>
<tr>
<td width="154" valign="top">
Nov 8, 2006
</td>
<td width="154" valign="top">
+0.25
</td>
<td width="154" valign="top">
6.25
</td>
</tr>
</tbody></table>
</body></html>

Five in a row precedent for Cup Day interest rate movement: AMP's Shane Oliver 

<html><body>
History tells us that the RBA tends to prefer to hold steady for long periods, rather than fine-tune, so at least one leading economist thinks that history will repeat and that RBA will choose to sit still next week.
It’s the rate prediction of former RBA insider and now HSBC Bank Australia economist Paul Bloxham.
“It’s a close call – a case could be made for either sitting still or cutting rates next week, depending on the RBA’s forecasts and how they view the balance of risks,” he says.
Suggesting fine-tuning is not RBA style, Bloxham says: “Up by the stairs, down by the elevator! That’s the way monetary policy is set in Australia.
“This asymmetric approach to setting rates partly reflects the way the economy evolves.
“In an upswing the RBA is seeking to gradually lean against rising demand to keep it growing in line with supply, thereby keeping inflation contained.
“A downturn tends to be a much more sudden event. A negative shock – often from abroad – convinces the RBA that its rate setting is too high and it cuts sharply to support the economy.
“A downward tweak to rates of 25bps next Tuesday – as markets are pricing and 12 of 20 economists are currently calling for – is somewhat anachronistic,” Bloxham says.
“In our view, past behaviour suggests they are more likely to sit still than cut.
“History would suggest that they would wait until they are certain that they need to cut and then go more aggressively than 25bps.
“As yet, we do not think the evidence stacks up for a downswing in the cycle,” he says.
“We think their forecasts will still show underlying inflation rising from here (albeit now within the target band) reflecting the massive mining boom and weak productivity growth.
“With policy likely to be set on this central forecast, we expect them to hold next week.
“But policy could be set on the balance of risks, as there are clear downside risks to the global outlook,” Bloxham says.
“As the deputy governor reminded us this week, the IMF has suggested the world economy has ‘entered a dangerous new phase’.
“But as he also pointed out: it may still be too early to tell what this means for Australia.
“We think so too,” he notes.
</body></html>

History suggests RBA will sit still next week: HSBC's Paul Bloxham

<html><body>
 
<img src="/images/stories/coastwoes.gif">
<div>- Stuart Gan from PRDnationwide on the NSW Central Coast.</div>
<div></div>
<div>
This month he sold a <a href="https://www.prdettalong.com/index.cfm?pagecall=property&amp;propertyID=1362671&amp;propertyStatus=SoldRented" target="_blank">four-bedroom house for $3.3 million at Daleys Point</a>, which he suggests would have sold for $4 million in a good market. Gan told the AFR the lack of overseas money was keeping things flat.
“It’s the high Australian dollar and the absence of the expat dollars. Most of the big deals I do in Pearl Beach are related to expat Australians working in foreign postings,” he says.
Syd Triggs at Herron Todd White valuers Gosford says $3 million-plus Central Coast sales have been few and far between. There have been five this year, which was more than 50% down on the past three years.
</div>
<div></div>
<div></div>
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News