<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Amp Capital

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EXPERT OBSERVER
It’s nearly two years since the Reserve Bank of Australia last changed interest rates when it cut rates to a record low of 1.5% in August 2016.
That’s a record period of inaction – or boredom for those who like to see action on rates whether it’s up or down.
Of course, there are lots of views out that the RBA should be doing this or that – often held and expressed extremely – and so it’s natural that such views occasionally get an airing.
This is particularly so when the RBA itself is not doing anything on the rate front.
And so it’s been this week with a former RBA Board member arguing that the RBA should raise rates by 0.25% to prepare households for higher global interest rates and that the RBA should consider ditching its inflation target in favour of targeting nominal growth.
Our view – rates on hold at least out to 2020. Our view for some time is that the RBA won’t raise interest rates until 2020 at the earliest.
In terms of growth, a brightening outlook for mining investment, strengthening non-mining investment, booming infrastructure spending and strong growth in export volumes are all positive but are likely to be offset by topping dwelling investment and constrained consumer spending.
As a result, growth is likely to average around 2.5-3% which is below RBA expectations for growth to move up to 3.25%.
This in turn means that spare capacity in the economy will remain high – notably unemployment and underemployment at 13.9% – which will keep wages growth low and inflation down.
<img src="https://www.urban.com.au/images/2018/6/29/Oliver%20chart%201.JPG" alt="">
 
On top of this house prices likely have more downside in Sydney and Melbourne over the next two years, banks are tightening lending standards which is resulting in a defacto monetary tightening and the risks of a US-driven trade war are posing downside risks to the global growth outlook.
As such we remain of the view that a rate hike is unlikely before 2020 at the earliest and can’t rule out the next move being a cut.
Raising rates to prepare for higher rates makes no sense
Against this backdrop, raising rates just to prepare households for higher global rates would be a major policy mistake.
It would be like shooting yourself in the foot so you can practice going to hospital.
Some might argue that given high household debt you might miss the foot and hit something more serious – but I wouldn’t go that far! 
What’s more it’s not entirely certain that outside the US higher global rates are on the way any time soon – particularly given the risks around a global trade war, the European Central Bank looks unlikely to be raising rates until 2020 and with Japanese inflation falling again a Bank of Japan rate hike looks years away.
The RBA needs to set Australian interest rates for Australian conditions not on the basis of other global economies that are in different stages in the cycle – notably the US which has unemployment and underemployment of just 7.6% in contrast to Australia where it’s 13.9%.
Raising rates when there is still high levels of labour market underutilisation, wages growth is weak and inflation is at the low end of the inflation target would just reinforce low inflation expectations – causing businesses and households to question whether the RBA really wants to get inflation and wage growth back up to be more consistent with the inflation target and run the risk of a slide into deflation next time there is an economic slowdown. 
The RBA has already provided numerous warnings that sooner or later rates will go up, effectively helping to prepare households that such a move may come and in recent times banks have raised some mortgage rates, albeit only slightly.
Last year’s bank rate rises were in response to regulatory pressure and recently they have been in response to higher short-term money market funding costs as the gap between bank bill rates and the expected RBA cash rate has blown out by around 0.35% relative to normal levels.
This has further reminded households of the risk of higher interest rates.
Nor does changing the inflation target suggestions to change the inflation target or move to some other target for the RBA get wheeled out every time we run above or below the target for a while but its served Australia well.
When it’s above for a while like prior to the Global Financial Crisis some wanted to raise it, when it’s below for a while some want to cut it.
And there are regular calls to move to something else like nominal growth targeting.
But the case to change the target is poor.
The 2-3% inflation target interpreted as to be achieved over time has served Australia well.
It’s low enough to mean low inflation, it’s high enough to allow for the tendency of the measured inflation rate to exceed actual inflation (because the statistician tends to understate quality improvement) and to provide a bit of a buffer before hitting deflation.
And the achievement of it over time means the RBA does not have to make knee-jerk moves in response to under or overshoots because it can take time to get back to target.
Shifting to a nominal GDP or national income growth target would be very hard for Australia for the simple reason that nominal growth in the economy moves all over the place given swings in the terms of trade which the RBA has no control of.
It would have meant much tighter monetary policy into 2011 than was the case and even easier monetary policy a few years ago when the terms of trade fell.
In short it would mean extreme volatility in RBA interest rates. 
And in any case, nominal GDP or income growth is made up of two different things – inflation and real growth – so targeting just the aggregate could lead to crazy results for example if the target is 4.5% the RBA could get 4.5% inflation and say it hit its target!
Which would be nuts. 
Finally, while low rates risk inflating asset price bubbles it’s worth noting that apart from Sydney and Melbourne home prices, the period of low rates has not really led to a generalised asset price bubble problem in Australia.
And in any case as we have seen recently in relation to Sydney and Melbourne property prices - which are now falling (despite still ultra-low interest rates!) - the asset price problem where it does arise can be dealt with via macro prudential controls on lenders.
Arguably, if we had moved faster on the macro prudential front around 2014-2016 then the east coast housing markets would have been brought under control earlier and rates could have come down faster in Australia and we could now be in a tightening cycle… but that’s all academic!
Bottom line The bottom line is that the RBA should stick to its inflation target and ignore those arguing for a premature rate hike.
Our assessment is that this is just what it will do and that rates will be on hold for a long while yet.
In the meantime, the debate about rates will no doubt rage on.
Continuing low interest rates in Australia will mean term deposit rates will stay low, search for yield activity will still help yield-sensitive unlisted investments like commercial property and infrastructure (albeit it’s waning) and an on-hold RBA with a tightening Fed is likely to mean ongoing downward pressure on the Australian dollar as the interest rate differential goes further into negative territory.
<img src="https://www.urban.com.au/images/2018/6/29/Oliver%20chart%202.JPG" alt="">
 
While a crash in the $A may concern the RBA, we saw in both 2001 when it fell to $US0.48 and 2008 when it fell from $US0.98 to $US0.60 in just a few months that the inflationary consequences of a lower $A are not what they used to be and in any case the RBA would likely welcome a fall to around $US0.65-0.70. 
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soliver-smf6LQXgW9

The RBA won’t raise interest rates until 2020 at the earliest: Shane Oliver

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AMP Capital remains in ongoing discussions with Lendlease and Multiplex over the tender for construction of its Quay Quarter Tower.
Lendlease has quoted at $70 million over budget, according to the AFR's Street Talk column.
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<div>AMP Capital still has an aim of getting construction underway next year, it added.</div>
<div>
Tenants in the existing building are due out this Friday.
The 49-storey office building at 50 Bridge Street will be rebuilt as Quay Quarter Tower.
The $1 billion tower, designed by Danish firm 3XN, is due to open in 2020.
The chief operating officer of real estate at AMP Capital, Louise Mason, has previously said revitalising the precinct was paramount to Sydney’s future as a global city.
“Quay Quarter Sydney provides an opportunity to reimagine the urban landscape of Circular Quay,” she said.
The Quay Quarter Sydney precinct will span two inner city blocks over a site area of around 11,000 square metres and incorporates a mix of commercial, retail and luxury residential.
50 Bridge Street is jointly owned by investors in the AMP Capital Diversified Property Fund (ADPF) and the AMP Capital Wholesale Office Fund (AWOF).
Street Talk noted super fund giant REST was the frontrunner to take out the stake in the redevelopment of 50 Bridge Street.
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j.ballantyne1990-6AQqhLzZaK

AMP Capital still seeking construction tender for Quay Quarter Tower

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AMP Capital has received Stage 2 Development Application (DA) approval to refurbish Sydney’s first skyscraper, 33 Alfred Street, Circular Quay, from the City of Sydney.
Built in 1962, 33 Alfred Street has local heritage listing and is an iconic part of Sydney’s harbour skyline.  
The work, which is due to start in 2021, will include refreshing the building’s façade as well as modernising its services and interior while maintaining its heritage characteristics and reinstating lost building features. 
Once complete, the building will be premium grade, with improved environmental performance. The Alfred Street building is targeting a 5 Star NABERS rating and a 5 Star Green Star v3 rating.
AMP Capital real estate chief operating officer Louise Mason spoke on the redevelopment approval.
“We are delighted to have received approval for the redevelopment of 33 Alfred Street from the City of Sydney, who we have consulted with on this project for more than two years.  After 55 years, it’s time to upgrade the building and give it new life for many more decades of service. 
“This work will make 33 Alfred Street one of Sydney’s most highly sought-after, premium-grade office buildings.  However, it will still be recognisable as one of the most loved and distinctive buildings at Circular Quay, the gateway to Sydney.” 
AMP Capital has been advised by architect JPW.  33 Alfred Street is jointly owned by investors in the AMP Capital Diversified Property Fund and the AMP Capital Wholesale Office Fund.
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jrobinson-rf4aSBido9

AMP Capital receives go ahead to revitalise historic 33 Alfred Street, Sydney

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GUEST OBSERVER
Australian dwelling price growth is continuing to moderate with the recent CoreLogic data showing that home price growth across Australia has slowed to 7.0% over the year to October (annual price growth was running around 10-11% a few months ago). Sydney price growth is rolling over (see chart below). 
  <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/11/2/Diana1.jpg" alt="">
Melbourne home price growth is also moderating, but at a slower pace than Sydney because population growth remains strong in Melbourne.
The latest population data showed that interstate migration remains very high into Victoria and Queensland (see chart below) which suggests that home buyers are seeking alternatives to Sydney given the general lack of home and land affordability.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/11/2/Diana2.jpg" alt=""> 
Home price growth is still negative in Perth, but is picking up pace and Hobart has seen a big turnaround in price growth.
The reasons for slowing prices at the moment are due to tighter lending restrictions on banks and higher mortgage rates to enforce APRA rules around investor lending, affordability pressures in Sydney and Melbourne and a big lift in new supply of dwellings (particularly apartments across the east coast).
These pressures are going to continue in the near-term, particularly with a further lift in new dwellings on the market.
So, national home price growth will remain under pressure, especially in Sydney and Melbourne where there is going to be a further big lift in new supply.
While it was necessary to take some steam out of the housing market given the high concentration of investors in the market, slower home price growth is a risk for the consumer spending outlook because households savings have been used up as wealth (related to housing) has boomed.
A rate hike from the Reserve Bank in the near-term would be undesirable as it would put further downward pressure on dwelling prices at a time when wages growth is still soft.
Diana Mousina is senior economist at AMP Capital.
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Australian housing market update: AMP Capital's Diana Mousina

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Residential property price growth is expected to slow as the heat comes out of the Sydney and Melbourne markets, according to AMP Capital’s latest market update.
Meanwhile, the search for yields amid poor returns from cash and bank deposits is expected to continue to benefit unlisted commercial property and infrastructure, at least in the near term.
AMP Capital chief economist Shane Oliver also noted that while Australian consumers remain sceptical about shares as the “wisest place for their savings” their interest in superannuation has picked up, likely in response to recent super reforms which allow for large one-off contributions before the financial year ends on June 30. 
Something similar was seen in a decade earlier in 2007, he said.
He also said that even amid the scepticism around real estate that has been around for more than a year now, prices haven’t stopped growing in Sydney and Melbourne’s property markets.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/AMPSNAPSHOT.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/AMPSNAPSHOT.png" alt="">
The recent strength in jobs data, consistent with forward-looking labour market indicators, along with solid business conditions partly offset other recent more negative data such as falling consumer confidence and poor wages growth. 
“The jobs data and the NAB survey support the RBA in leaving interest rates on hold for now,” Oliver said. 
“But given softer data for growth, consumer spending, housing construction, non-mining investment and wages growth, our view remains that there is more risk of another rate cut than a rate hike in the next 12 months or so. “
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jonathanchancellor-7SQnKwU6yx

Property prices expected to slow as heat comes out of market: AMP Capital

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Investment firm AMP Capital has got a commitment of $100 million from the Australian government’s Clean Energy Finance Corporation (CEFC) for its green office fund. 
CEFC’s investment would go to the AMP Capital Wholesale Office Fund (AWOF), which is aiming to be carbon neutral by 2030.
The fund has a portfolio of 12 properties, which includes Quay Quarter Sydney and Australian Technology Park, which is targeting a 6 Star Green Star and 5.5 star NABERS rating once completed.
Other existing premium commercial office assets include 200 George Street in Sydney and 700 Bourke Street in Melbourne, which was recently awarded a 6 Green Star Performance rating, becoming the fourth building in Australia to achieve the rating.
“Having achieved the 6 Green Star Performance rating for 700 Bourke Street, AMP Capital is now focusing on achieving Green Star Performance ratings for all other wholly-owned assets in 2017,” AWOF fund manager Nick McGrath said.
CEFC’s investment in AWOF indicates investor appetite for demonstrably sustainable portfolios, AMP said in a press release.
AWOF drew in more than $700 million in equity investment in 2016. 
CEFC Investment Funds lead Rory Lonergan said the CEFC investment in the $4.7 billion AMP Capital fund would help accelerate the development of world-leading energy efficient commercial property portfolios in Australia.
“AMP Capital was selected for this mandate due to the quality and performance of the AWOF portfolio and AMP Capital’s broader commitment to achieve long-term sustainable outcomes,” Lonergan said.
“There is enormous opportunity to reduce emissions from buildings and to really push the boundaries of energy efficiency in the property sector.  With this investment, the CEFC is pleased to support AMP Capital in its objective to deliver net zero emissions across the commercial property portfolio.”
 
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AMP Capital gets $100 million commitment from government-backed green bank

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Tom Dixon’s London-based design firm Design Research Studio has been named the winner of AMP Capital’s interior design competition for the lobby and connected facilities of Quay Quarter Tower.
Four design firms were invited to participate in the two-month long competition, but Design Research Studio stood out for their reputation, design aesthetic and aspirational concepts, said AMP Capital’s chief operating officer real estate, Louise Mason.
“We used this competition to specifically seek out globally pre-eminent designers of lifestyle spaces such as hotels, clubs, restaurants, bars and co-working spaces, who can bring a completely different perspective to how we would normally view, and therefore design, a commercial lobby,” Mason said.
Dixon’s recent work includes the interiors for Mondrian London Hotel, Shoreditch House, Bronte Restaurant on the Strand in London's West End and McCann Worldwide Headquarters in New York.
The firm is also known for their design of the lighting installations for Bennelong restaurant at Circular Quay, Sydney.
3XN were appointed as the lead design architects for the 49-floor tower at 50 Bridge Street, Sydney last year.
The Quay Quarter Sydney precinct will span two inner city blocks over a site area of around 11,000 square metres and incorporates a mix of commercial, retail and luxury residential.
“The QQT lobby will be both the statement address for the tower and the nexus between the activated streetscape of Quay Quarter, the retail marketplace offering and the tower above,” Mason said.
“Together the lobby, retail podium and tower will provide a series of connected spaces that meet a range of user needs.
“Quay Quarter Tower will be an attractor of key talent into the future and provide a vibrant marketplace of experiences where people will have more opportunities to choose how and where they work and interact with their colleagues and customers.”
50 Bridge Street is jointly owned by investors in the AMP Capital Diversified Property Fund (ADPF) and the AMP Capital Wholesale Office Fund (AWOF).
Subject to final investor approvals, construction is expected to commence in 2018 and will take approximately three years to complete.
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Tom Dixon to design AMP Capital's Quay Quarter Tower lobby

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AMP Capital's managing director of shopping centres Bryan Hynes is stepping down after just over nine years in the role.
In his time in the top job Hynes has grown AMP Capital's shopping centres portfolio from $4 billion to $10 billion.
The portfolio now has 27 centres throughout Australia and New Zealand which generates more than $7.9 billion in annual sale.
Hynes had spent 18 years at AMP Capital, holding senior roles including Warringah Mall general manager and head of retail asset management.
As of January 1 2017 AMP Capital's head of shopping centre development Mark Kirkland will take over the role.
AMP Capital's global head of real estate Carmel Hourigan said that Marks skill set will help the company target their next phase of growth.
“With 27 years of major project experience in the property sector, 24 years of which have been focused on retail, Mark brings an impressive skill set to take our Shopping Centres business to the next phase of growth. 
“Mark has been instrumental in the successful delivery of Pacific Fair and Macquarie Centre and has contributed heavily to the efforts we have undertaken to maximise the value of the existing portfolio and enhance performance for our investors.
“Now that AMP Capital has delivered these successful developments on the east coast and will be turning our attention to developments in Western Australia, it is the right time to refocus the business under new leadership and I am pleased we have such a strong internal candidate in Mark. 
She also acknowledged Bryan's contribution over the last nine years.
“I would like to acknowledge Bryan’s significant contribution to our business, most recently leading the team in the delivery of award-winning developments at Pacific Fair and Macquarie Shopping Centres. 
"I would like to thank Bryan for the legacy he has created and his efforts in ensuring AMP Capital is best positioned to capitalise on opportunities within the real estate market.”
  
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Bryan Hynes, AMP Capital's managing director of shopping centres, is stepping down

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Exchange Tower has bucked the market trend with its leasing activity in Perth's challenging office market.
The vacancy in the building has dropped below 15%, an improvement from the rate of more than 37% earlier this year.
Exchange Tower is a 40-level, premium-grade office tower located just off St Georges Terrace in the heart of the Western Australian capital and in close proximity to Elizabeth Quay and Perth’s major shopping malls.
As part of the ongoing investment in Exchange Tower by joint owners the AMP Capital Wholesale Office Fund (AWOF) and Western Australia-based property investor Primewest, works have commenced for a significant refurbishment of the ground floor lobby with plans underway for upgrades of the forecourt and lifts.
The world’s sixth largest accounting group, RSM, has committed to lease 3,281 square metres of space over three high-rise levels in Exchange Tower and will also take signage rights after negotiating a long- term lease in the building.
RSM’s move is one of four major new deals in Exchange Tower, with international engineering group ARUP, multinational technology company Fujitsu and national law firm Moray and Agnew also relocating to the building.
ARUP is leasing 1,500 square metres of space on level 14, Fujitsu is taking 1,309 square metres on level 9 and Moray and Agnew is leasing 1,092 square metres on level 30.
Other recent new tenants include Quayside Chambers, Viva Energy and WTP. The moves follow a targeted leasing campaign managed by Ian Edwards, Knight Frank.
Exchange Tower is already home to some of Perth’s leading commercial and public institutions including Patersons, Morgan Stanley, Bell Potter, Allen &amp; Overy, Bain, Ministerial &amp; Parliamentary Services, Mitsubishi, Mitsui and Knight Frank.
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Perth’s Exchange Tower secures key leasing deals in tough market

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Housing matters a lot in Australia. Having a house on a quarter acre block is part of the "Aussie dream".
Housing is a popular investment destination and the housing cycle is a key component of the economic cycle and closely connected to interest rate movements.
But in the last 15 years or so it has taken on a darker side as a surge in house prices that started in the late 1990s has led to poor affordability and gone hand in hand with surging household debt. Reflecting this, predictions of an imminent property crash bringing down the Australian economy have been repeated ad nauseam since 2003.
The big picture view on Australian residential property is well known. First, Australian housing is expensive.
According to the 2016 Demographia Housing Affordability Survey the median multiple of house prices in cities over 1 million people to household income is 6.4 times in Australia versus 3.7 in the US and 4.6 in the UK. In Sydney it’s 12.2 times and in Melbourne it’s 9.7 times.
The ratios of house price to incomes and rents are at the high end of OECD countries and have been since 2003.
Second, the surge in home prices has gone hand in hand with a surge in household debt, which has taken Australia’s household debt to income ratio from the low end of OECD countries 25 years ago to now around the top.
This can be seen in the next chart which shows the deviation in the house price to income ratio against its long term average for Australia against the ratio of household debt to income.
The shift to overvaluation and high debt mostly occurred over the 1995-2005 period.
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Surging%20house%20prices.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Surging%20house%20prices.jpg" alt="">
While it’s common to look for scapegoats to blame for high home prices and debt the basic driver looks to be a combination of the shift from high to low interest rates over the last 20-30 years which has boosted borrowing and buying power and the inadequacy of a supply response (thanks to tight development controls, restrictive land release and lagging infrastructure) to suppress the resultant rise in the ratio of prices to incomes.
The following chart shows a cumulative shortfall of over 100,000 dwellings relative to underlying demand had built up by 2014.
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Home%20construction.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Home%20construction.jpg" alt="">
The surge in prices and debt has led many to conclude a crash is imminent. But we have heard that lots of times over the last 10-15 years. Several considerations suggest a crash is unlikely.
First, we have not seen a generalised oversupply and at the current rate we won’t go into oversupply until around 2017-18.
Second, despite talk of mortgage stress the reality is that debt interest payments relative to income are around 2004 levels.
Third, Australia has still not seen anything like the deterioration in lending standards seen in other countries prior to the GFC.
In fact in recent years there has been a decline in low-doc loans and a reduction in loans with high loan to valuation ratios.
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Tightening%20lending%20standards.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Tightening%20lending%20standards.jpg" alt="">
Finally, it is dangerous to generalise. While property prices have surged 60% and 40% over the last four years in Sydney and Melbourne, they have fallen in Perth to 2007 levels and have seen only moderate growth in the other capital cities.
To see a property crash – say a 20% plus average price fall – we probably need to see one or more of the following:
<ul>
<li>A recession – much higher unemployment could clearly cause debt servicing problems. This looks unlikely though. 
</li>
<li>A surge in interest rates – but rate hikes are unlikely until 2018 and the RBA knows households are more sensitive to higher rates, so it’s very unlikely rates will reach past highs. 
</li>
<li>Property oversupply – as noted above this would require the current construction boom to continue for several years.</li>
</ul>
However, the risks on the supply front are clearly rising in relation to apartments where approvals to build more apartments are running at more than double normal levels.
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Apartment%20surge.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Apartment%20surge.jpg" alt="">
Due to the rising supply of units, vacancy rates are trending up and rents are stalling, making property investment less attractive.
Nationwide price falls are unlikely until the RBA starts to raise interest rates again. This is unlikely before 2018, at which point we are likely to see a 5% or so pullback in property prices as was seen in the 2009 and 2011 down cycles.
Anything worse would likely require much higher interest rates or recession both of which are unlikely. However, it’s dangerous to generalise:
<ul>
<li>Sydney and Melbourne having seen the biggest gains are more at risk and so could fall 5-10% around 2018.</li>
</ul>
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Divergent%20property%20market.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Divergent%20property%20market.jpg" alt="">
<ul>
<li>Price growth is likely to remain negative in Perth and Darwin as the mining boom continues to unwind but this should start to abate next year. 
</li>
<li>The other capitals are likely to see continued moderate growth and a less severe down cycle in or around 2018. 
</li>
<li>But units are at much greater risk given surging supply and this could see unit prices in parts of Sydney and Melbourne fall by 15-20% as investor interest fades as rents fall.</li>
</ul>
Slowing momentum in building approvals points to a slowdown in the dwelling construction cycle ahead.
While this might be delayed into 2017 as the huge pipeline of work yet to be done is worked through, slowing dwelling investment combined with a slowing wealth affect from rising home prices mean that contribution to growth from the housing sector is likely to slow.
However, as this is likely to coincide with a fading in the detraction from growth due to falling mining investment and commodity prices it’s unlikely to drive a slowing in the economy.
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Dwelling%20investment%20to%20slow.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Dwelling%20investment%20to%20slow.jpg" alt="">
However, a likely decline in rents (as the supply of units hits) will constraint inflation helping keep interest rates low for longer.
There are several implications for investors:
<ul>
<li>Firstly, over the very long term residential property adjusted for costs has provided a similar return to Australian shares. Its low correlation with shares, lower volatility but lower liquidity makes it a good portfolio diversifier with shares. So there is clearly a role for property in investors’ portfolios.</li>
</ul>
<a href="https://www.propertyobserver.com.au/images/2016/10/20/Long%20term%20asset.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/10/20/Long%20term%20asset.jpg" alt="">
<ul>
<li>Secondly, there remains a case to be cautious regarding housing as an investment destination for now. It is expensive on all metrics and offers very low income (rental) yields compared to other growth assets. This means a housing investor is more dependent on capital growth. 
</li>
<li>Thirdly, these comments relate to housing in aggregate and right now it’s dangerous to generalise. Apartments in parts of Sydney and Melbourne are probably least attractive but for those who want to look around there are pockets of value. 
</li>
<li>Finally, investors need to allow for the fact that they likely already have a high exposure to Australian housing. As a share of household wealth its nearly 60%. Once allowance is made for exposure via Australian shares it’s even higher.</li>
</ul>
Shane Oliver is head of investment strategy and chief economist at <a href="https://www.ampcapital.com" target="_blank">AMP Capital</a>.
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