ANZ believes the Reserve Bank is in no rush to move again.

Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.

That positioning, in ANZ’s view, makes a June rate hike unlikely.

The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.

The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.

As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.

Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.

Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.

The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.

Ultimately, most members leaned toward the inflation side of that equation.

Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.

That’s important.

While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.

ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.

That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.

However, where ANZ diverges from the RBA is on the outlook for activity.

The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.

ANZ is less convinced.

The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.

That divergence matters because it shifts the balance of risk.

If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.

It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.

The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.

On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.

For now, the Board is choosing to wait.

But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.

In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.

For borrowers, it reinforces the reality that relief is not imminent.

And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.

According to ANZ, it is a balance that is becoming increasingly difficult to maintain.

Joel Robinson

RBA to hold rates for "prolonged period" rather than hikes: ANZ

<a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.

The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.

<a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.

[smartcode_project:default project_id=135663 project_image_fid=360477]

The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.

Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.

VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.

“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.

[smartcode_project:default project_id=135663 project_image_fid=360505]

The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.

The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.

Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.

[smartcode_project:default project_id=135663 project_image_fid=360473]

BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.

The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.

<a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.

The first stage of Cumulus Grand Villas is targeting completion in 2026.

[smartcode_project_cta:default project_id=135663]

VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.

The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.

For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.

Waverley Council’s response has been to move early, and decisively.

Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.

<img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" />

At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.

That repositioning is built around four key ambitions.

The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.

The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.

Oxford Street Mall sits at the centre of that shift.

Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.

&nbsp;

The second ambition is to transform Bondi Junction into a world-class interchange.

Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.

The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.

The third ambition focuses on greening and open space.

One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.

The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.

The fourth ambition is perhaps the most important from a development perspective: growth that gives back.

Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.

New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.

The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.

Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.

It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.

Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.

Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.

The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.

This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.

Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.

That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.

&nbsp;

&nbsp;

&nbsp;

If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.

“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

Toorak's dress circle St Georges Road, home to some of the city's priciest homes, is set for a rare new apartment development.

Blood Diamond Group, an entity tied to Tina Brandi, wife of David Brandi who has been a prolific bidder on The Block over the years, has filed plans for an ultra-exclusive development across an amalgamated 3,662 sqm site at <a href="https://www.apartments.com.au/new-apartments/104-106-st-georges-road-toorak-vic-3142">104 and 106 St Georges Road</a>.

The proposal would replace two existing homes on the riverfront site with a five-level apartment building cascading down the steeply sloping land toward the Yarra River. Designed by Charles Wright Architects, the development has been carefully shaped around the site’s topography and river environs, with the upper levels stepping back to reduce visual bulk from both St Georges Road and the Yarra corridor.

Planning documents describe the proposal as “a site layout and building typology that is consistent with the emerging character of the area and which provides exceptional amenity for future residents without compromising that of neighbouring properties.”&nbsp;

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ea19a17e-7528-4fa8-b727-05f2f7c025e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20a_0.png?VersionId=rZ2IjdoUL_UrRl1sZ4wZHnQXbYUaEmUQ" />

The scheme comprises 12 apartments, including 10 three-bedroom residences, one one-bedroom apartment, and a substantial split-level five-bedroom penthouse. A 624 sqm communal rooftop terrace will crown the building, while three undercroft levels embedded into the hillside will accommodate apartments and basement parking.

The design leverages the site’s dramatic northern outlook across the Yarra River, with living areas and balconies oriented toward the water. A central atrium running the full height of the building is intended to draw natural light deep into the residences and improve internal amenity.

Landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo Design &amp; Landscape</a> will play a major role in softening the built form, particularly along the river edge where significant setbacks have been introduced. The proposal includes a minimum 30-metre setback from the Yarra River boundary, preserving a substantial landscaped buffer between the development and the waterway.

While a mature English Oak near the front of the site is proposed for removal, the plans retain a large English Elm closer to the riverfront, alongside other established vegetation in the lower section of the property.

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ed3bf19b-5bc7-482f-bde7-41f709a13c3a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20b.png?VersionId=SG_kBGu4rOaSPY8FtVcmPJfSCrstuOfg" />

Architecturally, the building adopts strong horizontal forms with expansive glazing and curved balcony edges facing the river. Planning documents note the upper levels “adopt a receding form” to ensure the building responds appropriately to the Yarra River environs overlay controls.&nbsp;

The surrounding streetscape is characterised by large contemporary homes embedded into the hillside, many presenting as modest one or two-storey forms to the street before expanding toward the river frontage below. The planning report notes this established pattern heavily influenced the massing strategy for Toorak Pavilion.&nbsp;

Until the recent sale of the landmark Clendon Road mansion Coonac for around $130 million, St Georges Road held the state's most expensive home, the $80,000,088 derelict "Ghost House" mansion that was bought by crypto king Ed Craven.&nbsp;

Blair House, also on St Georges Road, sold for $74.5 million in 2022.

First look: Toorak Pavilions slated for dress circle St Georges Road

Six months after a development site on Kangaroo Point’s Shafston Avenue sold for $6.55 million, plans have been lodged for a 23-storey apartment tower.

A company named JMT Mega Capital, understood to be interstate investors when the 1,222 sqm double block traded late last year through Patona Property, is proposing an 84-apartment development in place of the existing low-rise buildings.

The slender tower at <a href="https://www.apartments.com.au/new-apartments/212-220-shafston-avenue-east-brisbane-qld-4169">212–220 Shafston Avenue</a>, overlooking the Brisbane River, has been designed by <a href="https://www.apartments.com.au/architects/aplus-design-group">Aplus Design Group</a>. It will comprise a mix of one-, two- and three-bedroom apartments above six basement levels, topped by rooftop resident amenities.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="7e17ba9e-553e-42ef-92b6-22081671521a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_3.png?VersionId=hlVUf99vrOjUs.vhQs0qV0DhOncUy9T8" />

The development has been designed as a vertically articulated tower with recessed balconies, curved façades and planted edges intended to soften its scale within the evolving Shafston Avenue skyline. In the submitted Urban Design Report, Aplus Design Group said the tower had been “shaped with a slender vertical expression, articulated façades, recessed balcony zones, integrated planting and a clearly defined podium relationship, helping to reduce perceived bulk and create a more elegant contribution to the Shafston Avenue streetscape and broader Kangaroo Point skyline.”

The scheme comprises 84 apartments, including 25 one-bedroom units, 34 two-bedroom apartments and 25 three-bedroom residences. A total of 104 car spaces are proposed across six basement levels, including resident, visitor and accessible parking.

Residents will have access to rooftop communal open space and shared amenities, while the development also incorporates deep planting zones and subtropical landscaping throughout the podium and tower levels. The project includes 35 per cent communal space coverage across the site and a 17.5 per cent deep soil zone allocation to support urban greening outcomes.

The application exceeds the mapped building height under the Kangaroo Point Peninsula Neighbourhood Plan and is being assessed under Brisbane City Council’s impact assessment pathway. The design team argues the additional height is supported by the site’s strategic inner-city location, existing high-density zoning, and proximity to transport and employment hubs.

“The design has been developed to make better use of a well-serviced urban site within an established high-density residential setting, while improving the street presentation and overall quality of the public realm interface,” the report states.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="1ab44b1e-ff45-4bf3-8da8-8aa0cd79db33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_10.png?VersionId=tSxeGekZOqj1e9g3PEn_yFoC3taKDp3U" />

The proposal adds to a growing pipeline of apartment developments reshaping Kangaroo Point ahead of the 2032 Brisbane Olympic Games, with demand continuing to strengthen for new housing supply in well-connected inner-city precincts.

Mosaic has nearly sold out its under-construction <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford by Mosaic</a>&nbsp;and <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a>,&nbsp;while Pikos recently completed <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye Residences</a> nearby. Pikos is also delivering <a href="https://www.apartments.com.au/new-apartments/gaia-kangaroo-point-108-lambert-street-kangaroo-point-qld-4169">Gaia</a>, over 230 three- and four-bedroom apartments on Lambert Street.

First look: 23-storey Kangaroo Point apartment tower planned for Shafston Avenue riverfront precinct

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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Two development sites in Melbourne's Box Hill have been put up for sale through an expressions of interest campaign by Savills.
The adjoining landholdings at 826 and 830 Whitehorse Road are being offered individually or can be purchased together. The EOIs close on June 23.
Each property comprises a multi-level office building. 
The land area for 826 Whitehorse Road is 1,078 sqm, while 830 sits on 1,572 sqm.
Zoned Commercial 1, each property has an office building with car parking, and short-term holding income. Each office building suits ongoing occupancy and/or owner-occupation.
The site is within the 'Prospect Street Activity Precinct' and the 'Major Development Built Form Precinct' of the Box Hill Metropolitan Activity Centre, and planning advice from Urbis indicates an allowable development height of 30+ levels subject to council approval.
The listing agents are Clinton Baxtor, Nick Peden and Jesse Radisich of Savills.
 
 
 
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jonathanchancellor-7SQnKwU6yx

Office properties in Melbourne's Box Hill up for sale

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ASX-listed Centuria Property Funds Limited (Centuria) and global investment firm BlackRock have agreed to jointly acquire an institutional grade office asset in Sydney's Chatswood for $279.1 million.
 
Centuria, which has $1.9 billion in funds under management, said contracts have been exchanged on the Zenith, the 821 Pacific Highway property in Sydney's Chatswood.
 
The purchase remains subject to FIRB approval, with settlement expected to occur in late July.
 
A new Centuria unlisted property fund, the Centuria Zenith Fund, will co-invest with BlackRock to acquire the property.
 
“Sydney’s North Shore office market is already performing strongly, and we expect that it will continue to experience falling vacancies and strong rental growth over the next few years," said chief executive of Unlisted Property Funds, Jason Huljich, adding he was confident the fund would provide attractive returns to investors due to the strong fundamentals of the location and the property itself.
 
The withdrawal of commercial office space in the CBD and North Shore due to residential conversion and the construction of the Metro will drive above trend rental growth and mean excellent total returns for our investor clients."
 
The Zenith has a diversified tenant mix with about 40 percent of its rental income underpinned by government tenants. It is currently 94 percent occupied and has around 44,000 sqm of net lettable area.
 
“In the current low interest rate environment, there’s no question that investors are becoming increasingly yield-driven. Distribution yields from the Zenith Fund are forecast to be 7.6 percent in the 2017 financial year, growing to 7.7 percent in the 2018 financial year. These are very attractive rates for such a high quality asset,” Huljich said.
 
 
 
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Centuria, BlackRock to acquire office property in Sydney's Chatswood

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One Parramatta Square (1PSQ), a $220.5 million commercial development in Sydney’s west, had its 'topping out' that included among its attendees NSW Premier Mike Baird.
Upon completion, the building will be the flagship Parramatta City Campus for the Western Sydney University.
1PSQ will be Sydney’s most advanced education facility in Parramatta, according to a media release by Charter Hall Group, which is working on the project.
Also present at the occasion was WSU Vice-Chancellor, Professor Barney Glover and Charter Hall's head of Office Development, Andrew Borger.
1PSQ was the first project to commence construction as part of Parramatta City Council’s Parramatta Square vision. 
It will be the new CBD campus of Western Sydney University and includes 14 levels of A-grade commercial space over 26,500 square metres.
The university has committed to lease the entire building on a 15-year lease, with options.
The building was designed after an international competition won by Architectural firm Architectus.
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Western Sydney University and Charter Hall celebrate ‘topping out’ at $220 million campus project

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Co-working group Hub Australia has committed to a 3,900 square metre co-working facility in Melbourne in a deal brokered by Savills.
The group has committed to the facility over 10 years at the historic 696 Bourke Street, Mail Exchange building, across two levels interlinked by a staircase.
Savills' Phillip Cullity, who brokered the deal, said the building’s heritage, enormous ceiling heights and its refurbishment were the drawcards to securing the lease. Financial details of the lease were not disclosed.
The Beaux Arts inspired building, which originally housed Melbourne’s GPO, was also the first home of Melbourne’s famous surveyor, responsible for the CBD grid, John Hoddle.
"It’s totally unique on every level and when you take into account the superb location opposite Southern Cross station it’s going to be very attractive to companies looking to grow their business in Melbourne’s CBD and from that point of view it’s quite an astute leasing decision,’’ Cullity said.
Hub Australia is Australia’s largest co-working community and operates across Melbourne, Sydney and Adelaide. Hub is a subsidiary of Third Spaces Group, founded by Brad Krauskopf.
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Hub Australia takes 3,900 sqm lease at Melbourne's Mail Exchange

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An industrial unit in Noosaville industrial estate on the Sunshine Coast has been sold for $290,000 to a local builder.
The vacant 196 sqm property at 2/21 Project Avenue was one of a small block of three tilt slab industrial units on a land area of 1,013 sqm.
The deal was brokered by Tracey Ryan of Ray White Commercial Noosa &amp; Sunshine Coast North. 
“The property was purchased by local builder who has found that with the improvement in the residential market, he now requires a bigger space to run his business from,” Ryan said.
“There is currently a limited supply of 200 sqm sheds in Noosaville."
 
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Industrial unit in Sunshine Coast's Noosaville sells for $290,000

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Gosford’s commercial landmark, the Gateway Centre, has been listed for sale -- the first time in a quarter of a century -- with expectations of $44 million. 
The mixed office and retail asset, located at 221–237 Mann Street, is being sold in one line with adjacent properties at 249 Mann Street and 135–137 Faunce Street.
The combined properties generate a net yield of 7.25 percent on the asking price, according to listing agency Raine &amp; Horne.
Raine &amp; Horne Commercial's Brett Hunter was quoted as telling the Daily Telegraph that the property had drawn interest from Sydney-based developers, boutique fund managers and overseas investors because of its mix of long-term blue-chip tenants including the NSW Department of Family and Community Services, NSW Office of Fair Trading, Vision Australia, Central Coast Local Health and Optus.
“Moreover, approvals are in place to add 10 extra storeys at 249 Mann Street and 135–137 Faunce Street, and this has the potential to add $5.24 million in lettable space annually to the site,” he said.
Other features include a 5-star Nabers rating and engineer certificates that provide for the building of additional storeys to add to the existing 15,000 square metres of lettable space. There are also 400 car spaces.
The site area is 8,162 sqm with a building area of 15,000 sqm.
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Gosford Gateway Centre up for sale with $44 million price tag

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A BP petrol station at Scone in NSW's Hunter region sold for $4.6 million at a recent Burgess Rawson auction. 
The <a href="https://www.burgessrawson.com.au/buying/NSW/Hunter-Valley-~-Upper/Scone/Retail/2P1190#.V0T6JyN96u6">26 Kelly Street, Scone</a> service station/convenience store with 4,224 sqm land holding was built in 2010.
There is a 10-year lease in place from March 2010 with further options until 2030.
The selling agents were Simon Staddon and Stephen Lovison.
The tenant pays all outgoings, as per lease and net income is $348,576 pa + GST.
The service station sold on a 7.6 per cent yield to a Sydney landbanking family, according to a report in the Australian Financial Review. 
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BP service station in NSW's Scone scoops $4.6 million at Burgess Rawson auction

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Property fund manager Charter Hall Group (ASX: CHC) and Morgan Stanley Real Estate Investing (MSREI) have together bought One Shelley Street, leased to Macquarie Group, in Sydney's Darling Harbour for $525 million.
Charter has also underwritten the purchase of an $82 million portfolio of assets which form the basis of the Charter Hall Direct Automotive Trust 2 (DAT2), the second DAT retail syndication trust by Charter Hall’s Direct Property business, said a media release.
The transaction was through a trust created by Charter Hall’s Core Plus Office Fund (CPOF) and sponsored by Morgan Stanley Real Estate Investing. The new trust will be managed by Charter Hall, and has increased Charter Hall’s total funds under management to $17 billion, including over $8 billion in the office sector.
One Shelley Street is a prime-grade office building leased to ASX-listed Macquarie Group, and also popularly referred to as the millionaire's factory.
The site is secured with a weighted average lease expiry (WALE) of 7.5 years.
“The acquisition of 1 Shelley Street secures for CPOF a strategic property in Sydney’s fastest growing office precinct, improving the WALE and average building age of the CPOF portfolio, whilst also improving the average rental growth profile for the Fund, with One Shelley Street featuring annual 4% increases,” Charter Hall’s CPOF fund manager Craig Newman said.
Charter Hall’s managing director and CEO David Harrison noted that momentum across all sectors continues, with equity flows directed to high quality defensive real estate.
“Core office remains attractive to both local and international investors due to the current spread between Australian property income yields and bond yields." 
Additionally, Charter Hall has launched DAT2, which comprises a portfolio of four established and new automotive dealerships, 100% leased by Automotive Holdings Group (ASX:AHG) on long-term leases.
DAT2 seeks to raise $48 million in equity and expects to offer a stable earnings stream with an initial distribution of 7.25% for years one and two, and the prospect of capital growth over the initial six-year period.
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Charter Hall, Morgan Stanley arm buy One Shelley St building for $525 million 

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An 1830's Georgian property in Hobart has fetched $7.8 million at auction, well above the reserve price, through Knight Frank.
The three-story sandstone property at 21-23 Salamanca Place is close to Hobart’s popular Salamanca Markets, as well as the upcoming Parliament Square, currently in development, which is set to become the heart of Hobart.
“The Hobart investment market is as strong as we have experienced historically... yields are now breaking below six per cent consistently, with this property receiving the lowest yield on record to our knowledge for an investment property in Tasmania," said Scott Newton, chief executive officer, Knight Frank Tasmania.
Total net annual rent is estimated at $271,206, and the yield works out to be 3.47 percent.
The ground floor is tenanted by Irish Murphy’s tavern, with the upper two levels consisting of renovated offices. On the third floor is the ‘Salamanca Loft’, a refurbished two-bedroom unit featuring painted sandstone walls, two skylights in the lounge and a glass atrium. The apartment is utilised to accommodate tourists.
"Irish Murphy's" tenancy lease runs until July 2019 with a further five-year option. Current rent is $213,932 plus GST, plus outgoings. Parliament Square will comprise a mix of office, hotel and retail spaces, with heritage buildings surrounding it expected to be restored. This will only add to value for 21-23 Salamanca Place.
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Georgian Hobart tavern sells for $7.8 million at auction

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<img src="/images/2016/05/25/Holdencapital_banner.jpg" alt="" width="603" height="127">
SPONSORED POST
The property development scene continues to evolve and developers are always looking to find new ways of improving their product and returns, however there are a number of commonly used acquisition strategies that they continue to utilise and I thought I would evaluate the 5 most common strategies and look at why they are effective.
1. Buy and hold strategy
This is where the developer purchases the property and holds on to it long term while waiting for the right market conditions to maybe reposition its use via a change of zoning and then redevelop it. To be effective there needs to be a cash flow generated from the property via a retail tenancy or similar that enables the developer to achieve a neutral cashflow utilising a level of debt funding that is prudent but maximises his effective use of his capital. Ideally if it can amortise some of that debt over time, all the better. Ideally this gives the developer the option to sell a rezoned site at a profit or assume the development risk and achieve an enhanced return. This strategy requires a significant capital outlay and the return may only be marginal if the full development strategy is not taken up. 
2. Buy and on-sell
The developer may purchase a property with an intention to purely on-sell it in the short to medium term. This could be due to identifying an opportunity to secure good terms or a low price enabling a profit to be made from a quick turnaround sale. This might be achieved by offering to purchase with a cash unconditional contract that might be attractive to a purchaser under financial stress enabling you to negotiate a lower price. Alternatively you might identify the ability to obtain a development approval and significantly increase the site value enabling a quick on sale where there is strong demand for the amended use. This approach is much smarter the being the biggest idiot who pays top dollar for a prime site already with a DA in the hope that he will then make a development profit. 
3. Option contract
A number of creative developers seek to secure a property by putting it under an option contract enabling them to then work up a strategy and either on-sell or develop. This is a creative way to acquire control of a property without having to own it. If they take the on sale route, there is the added benefit of a potential stamp duty saving (please take advise from your solicitor as there are varying state legislations in respect to this strategy), as the developer has not legally purchased or settled the property but has a legal right to deal with it including transferring their rights under the option agreement. This may include obtaining a development approval to increase its potential and enhance its value. This method of acquisition allows a developer to have control over the property buy not requiring to put much cash into buying the property until they have increased the value of the property, example by obtaining a DA. 
4. Buy &amp; develop
Clearly this is the most common strategy that a developer will utilise especially in a quiet market where there are opportunities to buy in at low prices. An example of this was in 2008 during the GFC here a number of developers needed to sell property at liquidated prices. Over the years the market improved and the property would have increased in value to either develop then or sell at a profit. If a developer has acquired a site in a soft market, then there could be good potential uplift in the land. However, if they are in a cooling market then they may have purchased a  site at top prices and find themselves in a challenging situation. The current market does indicate that sentiment is easing and that there may be risk of oversupply in some locations. 
5. Development agreement 
This is where a developer secures a deal with a land owner. This is typically called a Land Development Agreement (LDA), where the developer has the experience and skill set to obtain a development approval and complete a development. The land owner retains ownership of the land for the developer to develop and receives his land value along with a share in the end profits. This is a good win-win solution for both parties. This scenario occurs more frequently where the land size is large with multiple stages enabling the developer to undertake the project without the need to purchase and hold the balance land over an extended period. In most cases the land owner is not experienced in development and benefits from a share in the uplift in value created by the developer which they would not ordinarily get to do if they tackled the DA process by themselves. As always, you need to do your due diligence on who you do business with and take appropriate advice as different states have differing stamp duty rules which may apply. 
Conclusion 
Each of the above acquisition strategies have different pros and cons. There may be stamp duty implications that may or not apply to the purchase. The capital component is different for each scenario and market conditions can change as well, so a developer will need to be very mindful of current market conditions and be ready to adapt should conditions change and seek appropriate advice. 
For example, the construction finance with major banks has shifted from fluid to extremely limited within the last 6 months. Most developers who acquired their sites last year had expectations that their bank would automatically provide them with terms as they had done in the past. However, all major banks are now very cautious with their lending and are doing so at reduced levels of exposure with many developers now find themselves committed to their site but not having certainty of the funding required. 
Developers need to broaden their understanding of the growing number of alternative funding options that are available to them as the construction finance sector is rapidly changing. 
Just as you would normally take advice from an experienced town planner before lodging a DA, it pays to seek expert finance advice when considering to purchase a property to develop. By working closely with a specialised financer who understands your needs, the market conditions and the structure being utilised to acquire the site places you in a strong position to find the best construction finance solution for your next project.
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arranged over $300 million of construction finance in 2015 across 52 projects. To discuss your project finance requirement please call (07) 3171 4200 or visit <a href="https://www.holdencapital.com.au" target="_blank">www.holdencapital.com.au</a>
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