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

Joel Robinson

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

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

DVB Projects to launch second Broadbeach apartment tower as demolition commences

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

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

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

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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Aussie Home Loans founder John Symond expects the RBA to cut interest rates on November 1 at its Melbourne Cup Day meeting.
“The next rate cut is not far around the corner. The Reserve Bank should, and I think will, cut interest rates in November,” Symond has told Channel Seven’s Sunrise program today.
Symond says the RBA is “finally waking up that our economy is stalling outside the mining sector”.
“I think they should have cut interest rates by a ¼% in October to give consumers some reason to go out there and start buying and helping retailers and manufacturers.”
A similar sentiment was expressed by CommSec economist Craig James, who says the odds for a Melbourne Cup day rate cut are “narrowing”.
James places importance on the next set of quarterly inflation figures due out on October 26.
“If inflation figures this month are on the low side – and I expect few retailers would be putting up prices in this environment … the RBA will give serious thought to a rate cut,” he says.
James says another factor is the Aussie dollar. If it continues to fall further, it could provide stimulus to the economy, which could push up prices.
The low dollar has already had an impact on petrol prices, which hit a four-month high last week to around $1.44 a litre.
Mark Bouris, chairman of financial services group Yellow Brick Road, is also calling for a November rate cut and has been calling for one since the beginning of June.
Yellow Brick Road is campaigning for a rate cut as part of its “RBA Appeal” - an initiative “created to educate the Reserve Bank of Australia on the plights middle Australians are facing under the threat of higher interest rates”.
John Mcgrath, CEO of McGrath Real Estate, does not like to speculate on where interest rates are going, but did comment in his Spring Market Review that interest rates are a key factor in market confidence.
“A key factor is interest rates. If the RBA moves to decrease rates further, this will supersede many macro-economic issues for the average buyer. Buyers have been concerned about interest rates moving upwards and we really need to see a rate reduction that puts the steep rises of the past 18 months behind us. With three-year fixed rates now below the variable, this indicates the banks’ belief that interest rates are on the way down,” he says.
Expectations of a rate cut in November are also growing among the major banks.
ANZ economists Warren Hogan and Katie Dean say the RBA’s monetary policy statement released yesterday following the decision to keep rates at 4.75% “presents a clear shift of tone”.
“The RBA has opened the door for a modest easing of policy, lowering both its short-term growth and 2012-13 inflation forecasts for Australia,” the economists say.
“A 25bps interest rate cut in November, followed by another 25bps of easing in February, now looks increasingly likely. This will be contingent on a modest core inflation outcome for the third quarter. ANZ is forecasting core inflation to rise 0.6% in the third quarter, opening the way for a rate cut in November.”
To get the rate cut over the line, Hogan and Dean believe three conditions will need to be met: namely confirmation that inflation is under control, further evidence that the labour market has softened and a further deterioration in global conditions.
CBA economist James McIntyre says the RBA statement represents a shift further away from a tightening bias, driven by the global uncertainty, but the bank remains “not yet convinced of an RBA cut”.
“The board noted that outside the confidence measures there was little evidence yet of the effects of recent turbulence on economic activity.  The expected weaker growth outcomes remain just that, an expectation.  For now the RBA board's weighing of the inflation question remains unanswered.  But, Europe has not yet reached its endgame either.  Either way, answers should arrive in the near term,” he says.
But McIntyre says a rate hike is now “clearly out of the question until a resolution in Europe is found and global uncertainties ease”.
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lschlesinger-FZcF9M3vE6

John Symond betting on Melbourne Cup Day rate cut

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The growth of 24-hour gyms in NSW is being hampered by a lack of suitable space as franchisers look to expand their businesses, according to a new report by CBRE. 
Operators are seeking spaces of between 300 square metres and 500 square metres in retail strips and bulky goods centres in close proximity to larger traditional gyms. 
Recently US-based Anytime Fitness opened its 100th franchise in Thornton, NSW, choosing a site in the local Supa Centre. About two-thirds of its franchises are located in NSW. 
Anytime Fitness was recently named top franchisor in the <a href="https://www.smartcompany.com.au/smart50-2011" target="_blank">2011 SmartCompany Smart50 Awards</a>, which recognised fastest-growing small to medium-sized enterprises in 2010-11.
Jacinta McDonell Jimenez, who founded the business alongside her brother Justin McDonell,<a href="https://www.smartcompany.com.au/franchising/20110323-jacinta-mcdonell-jimenez/2-2" target="_blank"> told SmartCompany that site selection is a challenge</a>.
“Site selection is really where we get stuck just because of our parking requirements and the size of our tenancies sometimes makes it a little bit tricky, especially when you’re getting into tight metropolitan areas. Sometimes council requirements can be challenging as well,” she says.
CBRE senior negotiator Shane Cook recently negotiated three long-term leases with Anytime Fitness, with franchisees committing to 349 square metres at the House and Home centre at Nowra on the NSW South Coast, 510 square metres at the Lake Haven Mega Centre on the Central Coast and 368 square metres at the Blacktown Mega Centre in Sydney’s west. 
“The 24/7 gym operators target exercise-conscious professionals looking to work out close to home but also reduce non-essential spending,” Cook says. 
“These fitness clubs have smaller space requirements, typically between 300 square metres and 500 square metres, which, coupled with limited staff costs, results in lower overheads.” 
Another 24-hour operator, Jetts Fitness has 145 franchises with 19 in NSW. Fifty-nine franchises are in Queensland. 
 
According to Cook, the trend towards smaller, low-cost gyms has left larger traditional fitness clubs scrambling to compete through the introduction of different services and the expansion of their facilities. 
Gym group Fitness First has also been expanding signing a 10-year lease over 2,281 square metres of space on the ground, first, second and third floors of MBF building on 116 Adelaide Street, in the Brisbane CBD. 
Since expanding into Australia in 2000, Fitness First has established more than 90 clubs across the country, with Adelaide Street lease representing its third gymnasium in the Brisbane CBD. 
The new health club is due to open next month. 
Global health club chain Virgin Active has also been in expansion mode since opening its first Australian club in late 2008.  It has one club in Melbourne and three in Sydney.
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Gyms struggle to find space to stretch

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The ACT housing market is stable but buyers remain in the box seat for property priced above $500,000, according to CBRE’s latest residential research.
Its stable employment outlook was a critical factor.
“This is a significant advantage that Canberra holds over its interstate rivals,” CBRE research analyst Sam Reilly says.
But reduced enquiry and the current availability of stock is limiting substantial increases in capital values.
Its entry-level house and unit market up to about $500,000 have been performing well in areas such as the inner north, inner south, Woden and Weston Creek districts, the report says.
“But there was an element of concern over future interest rate rises and what effect this might have given that supply levels in the ACT were currently exceeding demand, albeit slightly,” Reilly notes.
Canberra’s middle market from $500,000 to $1 million has been a buyer’s market since the end of 2010, with marketing periods for residential property now ranging between two and six months – but expected to shorten in the busier spring trading period.
“It will remain critical that vendors adapt to the generally subdued market conditions in order to make a sale,” says CBRE associate director of valuation and advisory services Marcus Hon, adding that realistic pricing remains crucial to achieving a sale in this price bracket.
Subdued conditions are also evident in the prestige market, for units and houses priced above $1 million.
“Levels of supply are exceeding demand and this has resulted in marketing periods extending, as vendors appear generally unwilling to meet the market,” Hon says.
Subdued conditions are also evident in the prestige market, for units and houses priced above $1 million with levels of supply exceeding demand which has resulted in marketing periods extending, as vendors appear generally unwilling to meet the market,” Hon notes.
Canberra’s investment market had reasonable levels of demand and good sales results for properties priced up to $600,000.
However, Hon warns that the longer-term outlook for investment stock is less positive, given the level of supply expected to enter the market in 2012-2013 in areas such as Woden, Belconnen and Bruce.
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Buyers in the box seat in prestige Canberra market: CBRE

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ACT’s industrial market is set to improve in the long term and could be a good place for investment, according to valuer Herron Todd White. 
According to its Canberra valuation team, the ACT offers “some good opportunities to invest for the long term with the industrial demand likely to improve over time as the economy responds to increased population growth”. 
Investors looking for accelerated returns might consider bulky goods stores and showrooms in the industrial suburb of Fyshwick, the report says, as demand remains high and rental growth is likely to outperform neighbouring light industrial suburbs of Mitchell and Hume over the coming 18 months. 
The report says that unlike other capital city industrial markets, the ACT industrial market is “comparatively stable with demand restricted to those businesses that provide direct services to the ACT population”. 
However, there are some weaknesses in the market, with valuers noting that a decrease in construction within the ACT over the past 12 months has a flow-on effect in reduced demand or floor space to store building and construction materials. 
“While an exact figure is difficult to obtain due to the lack of leasing transactions, we estimate that rents have fallen by up to 7% in some markets.”
Overall, the general sentiment about the Sydney industrial market remains gloomy, with property owners in a “holding pattern”. 
But latest report does suggests investors consider strata industrial units in south Sydney or Artarmon, where the rental growth outlook is more positive than other Sydney markets.
Another exception to the otherwise lacklustre Sydney market has been the upper end of the market, where there has been a “flurry of activity” with several large firms including Big W, Volkswagen and Dick Smith pre-committing to new facilities, spurring new development in central and western Sydney. 
“The sale of the St Leonards Corporate Centre for $86.7 million and the rumoured sale of Sir Joseph Banks Corporate Park in Botany for $78 million has restored some faith at the top end of the market,” the report notes. 
Investors should steer clear of the lower end of the market where rental growth has been constrained. 
“Discussions with industrial agents across Sydney reveal that sales to investors have been minimal in the first half of 2011, with several industrial strata unit projects completed in the past two years remaining unsold,” Herron Todd White’s Sydney valuers have observed.
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Sydney industrial market in a 'holding pattern': Herron Todd White

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Yesterday’s decision by the Reserve Bank to leave interest rates unchanged preserves what is a prime residential investment environment. The anomaly is that most potential investors are not seeing the signs.
Essentially there are four drivers to affordability for investors: income levels, rental yields, house prices and interest rates. And a case can be made that each of these factors is currently biased toward the residential investor.
Wage levels are showing growth, supported by low unemployment levels, which provides security in terms of attracting and retaining tenants. Additionally, rental yields are up, underpinning investor confidence.
Residential prices are currently flat and have even shown declines in some areas, and the stable interest rate environment, which has now remained steady for nearly 12 months, combines to create an ideal investment landscape.
Nevertheless, there seems a degree of reservation among investors, and buyers in general, given broader economic uncertainty. This is understandable but not necessarily advisable.
Investors in residential property can be classified as either ‘foresighters’ or ‘hindsighters’, and the latter often miss the boat. Those waiting for a rumoured decline in interest rates may find that the other drivers of affordability skew to a less favourable position.
The long-term nature of residential investment means the importance investors place on interest rates is sometimes over-emphasised.
While interest rates are obviously a factor investors need to consider, sometimes they are the subject of too much concern, or even paranoia.
Most investors will have a mortgage, but investors who have done their research and taken a measured, discerning approach can observe rate fluctuations without their hearts in their mouths.
However, a successful investment relies on more than just doing the research, it hinges on doing the right research and taking a long term view. A quick glance at recent sale prices and current vacancy rates in a given area opens investors up to numerous risks down the track.
Aviate considers over 100 points when evaluating a residential investment opportunity to mitigate risk and ensure long-term success.
Neil Smoli is managing director of the <a target="_blank" href="https://aviategroup.com.au/">Aviate Group.</a>
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Interest rates are important, but they should not be your only investment criteria

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Charter Hall Retail REIT will continue to re-weight its shopping centre portfolio in favour of Australian shopping centres anchored by Coles and Woolworths following the release of annual results for the year to June 30, 2011.
Strong sales from anchor tenants Coles and Woolworths helped the REIT deliver profits of $62.9 million for the year off a portfolio valued at $1.93 billion.
Coles and Woolworths occupy 67% of gross lettable space in the REIT’s $1.4 billion Australia portfolio.
The annual report highlighted the resilience of its two key tenants, with the listed property trust reporting that Coles and Woolworths are among the top retailers in the world. Charter Hall says its weighting to the “non-discretionary food retail sector” underpins its Australian portfolio.
Charter Hall’s dependence on Coles and Woolies follows property developer Mirvac highlighting the role of the two supermarket groups played in propping up its retail portfolio in the last financial year.
In its 2011 annual results <a href="https://www.propertyobserver.com.au/news/coles-and-woolies-help-mirvac-deliver-30-profit-increase/2011082351258" target="_blank">the two supermarket groups accounted for a quarter of Mirvac’s total retail rental income</a>.
During the financial year, the Charter Hall retail trust increased its weighting in Australian properties and sold many of its offshore assets.
The trust will look to offload its remaining US and New Zealand properties over the course of the next financial year, with a medium-term strategy to exit Europe and invest further in Australian properties.
“With a portfolio of predominantly Australian shopping centres anchored by leading national supermarkets, I am confident we are well positioned to deliver defensive and resilient income and capital growth prospects for unit holders,” says chairman John Harkness.
Its Australian shopping centres performed slightly higher than expectations, with net operating income growth of 3.8% and occupancy rates of 98.8%.
The trust acquired 15 Australian shopping centres during the course of the financial year, including eight neighbourhood and regional shopping centres from Woolworths in a $266 million joint venture with Telstra Super.
The most expensive of these was the Gordon Shopping Centre on the Sydney North Shore, anchored by Woolworths and Harvey Norman and bought for $67 million, and the Albany Creek Shopping Centre, in the north-western suburbs of Brisbane bought for $40 million, anchored by Coles.
In total its 70 properties in Australia worth $1.4 billion make up 91% of Charter Hall’s net tangible assets.
The remaining 9% are made up seven shopping centres in Europe (Poland and Germany), 13 in the US and two in New Zealand.
Its total portfolio comprises 93 shopping centres (down from 138 following offshore divestments) covering gross lettable area of 695,000 square metres.
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Charter Hall has a taste for Coles and Woolies

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Recently American economist Harry Dent spooked a lot of Australians when he predicted an economic tsunami that would take property prices back to levels we haven’t seen for over a decade. 
Others say that our resources boom and housing shortage will ensure that property values keep doubling every decade. 
Who’s right? 
It’s easy to sound smart in a property boom – you know what they say: “A rising tide lifts all ships.”  But you have to be very careful who you listen to at this stage of the property cycle. There are some interesting challenges ahead. 
If our economists are armed with all the research available in today’s information age, why can’t they agree on where are our property markets are heading? In fact, a better question would be: why do so many get it wrong? 
The simple answer is that market movements are far from an exact science. 
The fundamentals are easy to monitor. Things like population growth, supply and demand, employment levels, interest rates, affordability and inflationary pressures can be easily understood. However, one overriding factor that the experts have difficulty quantifying is investor sentiment. 
In a report earlier this year, AMP chief economist Dr Shane Oliver explained that people often suffer lapses of logic when investing and many of their investment decisions are driven by emotion. 
For example, we tend to extrapolate the present in the future. When things are booming we think the good times will never end and when the market mood is glum, we have difficulty seeing the light at the end of the tunnel. 
When the media reports falling property prices or an impending housing crash, many investors become scared and sit on the sidelines, believing the end of property is nigh and things will never improve, when in reality much of the risk has been removed from the market. 
Conversely, when property markets are booming and stories of investors seemingly making large gains overnight abound, people want to jump on the bandwagon and cash in, often at a time when the market is near its peak.
 
Other emotional traps include becoming overconfident, wishful thinking and ignoring information that conflicts with your current views. In other words, many investors create their own “reality.” 
Can you see how this type of activity, influenced by investor psychology, drives booms and busts? How the dominant investor mentality of the time helps drive the property cycle? 
Simply, when investors put on the brakes, housing values tend to stagnate or fall due to lack of demand. And when investors jump back into the market, demand rises and up go prices. 
Obviously one or two misguided investors won’t be able to influence property prices, but investor sentiment is contagious. People tend to want to do what others are doing - they follow the crowd because going against popular opinion is seen as risky. What if you make a mistake? What if the others are right and you are wrong? 
Oliver says this “collective behaviour” is magnified by: 
<ul>
<li>
Mass communication Now more than ever we are bombarded with messages from the media influencing how we think and feel about things. When we hear that real estate is doomed, all but a handful of sophisticated investors get scared out of the game. And when the media tells us housing markets are booming everyone wants a piece of the action.</li>
<li>
Pressure to conform If your friends or family are doing it, it must be right. Right? Human nature makes us reluctant to do the opposite of what our peers are doing. </li>
<li>
A major precipitating event The global financial crisis scared waves of investors out of the markets. On the other hand, the resource boom enticed thousands of investors into west coast housing markets to cash in on the resulting property boom. </li>
<li>
A general belief that grows and spreads When the belief that property values can only go up spreads through an uneducated new generation of investors they enter the market pushing prices up even further, perpetuating the belief and helping make it a reality! Similarly, when the crowd believes the market is going to crash, they steer clear, this gets reported in the media and the negative sentiment feeds on itself. </li>
</ul>
Oliver observes that these “lapses in logic” by individual investors and the magnification of such lapses by crowd psychology feeds property cycles and goes a long way in explaining why we see booms and slumps at different points in time. 
When investor sentiment is positive, the crowd jumps in feet first, pushes up demand and places upward pressure on prices – causing boom conditions. Conversely when sentiment is negative, the crowd backs off and frequently sells out of the game due to concerns that they’re about to lose everything – causing market slumps. 
What can an investor learn from this? 
<ol start="1">
<li>Our property markets are not only driven by fundamentals, but also by the often irrational and erratic behaviour of an unstable crowd of other investors. While the long-term performance of property is influenced by the fundamentals, its short-term performance is much more affected by market sentiment. </li>
<li>Booms never last forever, and neither do busts. Don’t be surprised when they come around, and don’t overreact. This will help you avoid being sucked into booms and spat out during busts.</li>
<li>Treat your property investments like a business and stick to a proven strategy to take the emotions out of your investment decisions.</li>
<li>Recognise that property is a long-term play and set up financial buffers to help you ride the property cycles. 
</li>
</ol>
Invest counter cyclically.
Warren Buffet once said: “We attempt to be fearful when others are greedy and to be greedy only when others are fearful.” 
This is also the investment strategy of many successful property investors. I’ve always been an advocate of counter-cyclical investing. I’m often sceptical of conventional wisdom – not because the crowd is always wrong but because the crowd is always late. 
Sure, it takes some courage to do the opposite of what everyone else is doing, but the results of your contrary behaviour will ultimately speak for themselves.
 
In the meantime successful investors will take a big-picture view, buy more well-located properties and see the value of their portfolio steadily increase.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> who create wealth for their clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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myardney-DFoGhGbSJX

The crowd is not always wrong, but it is almost always late

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The Reserve Bank’s Monetary Policy Committee has left the cash rate unchanged at 4.75% for the 10th straight meeting.
It is now 11 months since the RBA last raised the cash rate. It raised the rate by 25 basis points to 4.75% in November 2010.
In his statement accompanying the decision, RBA governor Glenn Stevens said the board noted that “financial conditions have been easing somewhat, with interest rates for some housing and business loans declining slightly due to increased competition and the fall in some funding costs in financial markets”.
“The exchange rate has also declined from the very high levels of a few months ago. Credit growth remains low, however, and asset prices have declined,” he said.
Global factors continued to weigh on the mind of the RBA, Stevens said:
“Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign debt and banking problems in Europe, and the outlook for global economic growth. While temporary impediments that had contributed to a slowing in growth in some countries over recent months are lessening, recent data suggest a continuing period of soft economic conditions in both Europe and the United States. Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behaviour by firms and households in major countries,” Stevens said.
The decision was in line with a survey of 22 economists by Reuters, with all forecasting no rate change in October.
Four institutions, including Westpac, are tipping the cash rate to come down before the end of the year.
The dollar fell slightly, trading around the 95 US cents mark, 0.2% down on the day.
Laing + Simmons general manager Leanne Pilkington says she hopes the decision to leave rates on hold will continue to entice potential buyers to invest in the still-fragile property marketplace.
“The residential property market has been sluggish in recent months, to say the least,” she says.
“Uncertainty is understandable given the continuing instability of the Australian stock market, which has recently seen huge losses wiped from the value of shares, and the lingering unpredictability of US and Eurozone financial markets. Falling confidence has inevitably led to reduced spending and the underlying fear of another recession has everyone sitting on their hands.”
While she says there is still a strong case to be made for a cut in the official cash rate in the coming months, the decision to leave interest rates on hold does give a certain reprieve for those looking to enter the property market.
“A strong spring season will restore much-needed confidence in the housing market. Already there is evidence that it is being buoyed by a rush of [NSW] first-home buyers looking to get a foot in the door before the removal of stamp duty concessions on existing properties kicks in on December 31.”
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As expected, RBA leaves rates on hold

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Directors of the ASX-listed Investa Office Fund have decided not to exercise a call option to acquire a 50% interest in 242 Exhibition Street, a 42-storey office building in the Melbourne CBD.
The option was granted by the fund’s holding company Investa, Property Group, and expired at midnight on September 30, 2011.
Investa Property Group jointly owns 242 Exhibition Street in conjunction with the Investa Commercial Property Fund.
While the fund says the qualities and characteristics of the property are complementary with the strategy of “repositioning the portfolio to core Australian CBD office markets”, its immediate capital priorities are to execute the unit buyback and dispose of the offshore property assets, both of which it says are progressing well.
The Exhibition Street A-grade building is worth about $425 million.
It has 65,913 square metres of net lettable area and an average floor size of 1,400 square metres. The building’s major tenant is Telstra.
Investa Office Fund holds a $2.6 billion portfolio of investment grade office buildings in core CBD markets in Australia and selected offshore markets in the US and Europe.
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Investa Office Fund declines half-stake in Melbourne office building

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Construction of apartments looks set to pick up over spring following a big jump in non-house dwelling approvals in August, according to ABS estimates.
The seasonally adjusted estimate for private sector dwelling approvals excluding houses rose 35.1% to 5,829 dwellings in August following a rise of 0.4% in July.
The biggest increase occurred in NSW, with unit approvals up 45% over August, with a 19% increase in Queensland and a 17% rise in Tasmania.
There were smaller increases in Victoria (7%) and WA (5%).
Westpac says dwelling approvals were much stronger than expected in August "but are dominated by what are likely to be temporary boosts".
"Outside of these influences, conditions remain decidedly soft," the bank says.
It cautioned against reading too much into the "very sharp" spike in units saying this segment is "often very volatile as it includes large, 'lumpy' multi-unit high rise developments".
"Although the August rise was 'shared' across NSW, Victoria and Queensland, by far and away the biggest spike was in NSW where unit approvals more than doubled month-to-month to the highest reading since January 2003.
"Digging down into the detail, the rise was driven by 'high rise' apartments which saw an extraordinary 1,890 dwellings approved - the biggest reading since 2002."
"This is more than likely to be due to several very large projects passing approvals and as such is not a strong guide to underlying momentum, although these approvals will clearly still feed into actual building activity," the bank says.
The Housing Industry Association (HIA) described the August result as "solid" but expressed concern at continual slide of the "core detached housing sector" which is down 4.4% for the three months to August 2011.
According to HIA senior economist Andrew Harvey, this reflects the fact that"interest rates are too high and consumers are increasingly cautious given volatility in the global economy and weakness in the non-resource domestic economy".
With the $10,000 building boost for new houses kicking off in Queensland on August 1, private sector housing approvals increased by 16% over the month.
However, overall private sector new house approvals fell 1% in August 2011 to 7,547 houses, following a rise of 0.2% in the previous month.
Overall, dwelling approvals were up 11.4% on a seasonally adjusted basis following a rise of 1.8% in July.
The seasonally adjusted estimate for the value of total residential building rose 10.8% and the value of non-residential building rose 20.3%.
Overall, the value of total building approved rose 14.2% in August following a fall of 4.1% in July.
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