<p data-end="587" data-start="368">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.</p>

<p data-end="778" data-start="589">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.</p>

<p data-end="907" data-start="780"><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.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">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.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">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.</p>

<p data-end="1908" data-start="1678">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.</p>

<p data-end="2142" data-start="1910">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.</p>

<p data-end="2142" data-start="1910"><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" /></p>

<p data-end="2308" data-start="2144">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.</p>

<p data-end="2648" data-start="2310">"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.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">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.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"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."</p>

<p data-end="3818" data-start="3664">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.</p>

<p data-end="4076" data-start="3820">"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.</p>

<p data-end="4375" data-start="4078">"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."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"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."</p>

<p data-end="4910" data-start="4743">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.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


Joel Robinson

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

<main data-perf-region="main">
<p data-end="600" data-start="394">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.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">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.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">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.</p>

<p data-end="1357" data-start="1161">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.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">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.</p>

<p data-end="2269" data-start="2047">"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.</p>

<p data-end="2430" data-start="2271">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.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">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.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"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.</p>

<p data-end="3400" data-start="3216">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.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>


Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

<p>A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.</p>

<p>Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.</p>

<p>Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374005]</p>

<p>The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.</p>

<p>Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.</p>

<p>Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374010]</p>

<p>Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.</p>

<p>The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.</p>

<p>“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374002]</p>

<p>“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”</p>

<p>The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.</p>

<p>[smartcode_project_cta:default project_id=150999]</p>


Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.</p>

<p data-end="717" data-start="537">The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.</p>

<p data-end="918" data-start="719">The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.</p>

<p data-end="1131" data-start="920">PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.</p>

<p data-end="1131" data-start="920"><img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" /></p>

<p data-end="1318" data-start="1133">Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.</p>

<p data-end="1433" data-start="1320">The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" /></p>

<p data-end="2191" data-start="2013">The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.</p>

<p data-end="2365" data-start="2193">PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”</p>

<p data-end="2943" data-start="2777">The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


PDG secures approval for $1.5bn Southbank apartment development, The One

<p>Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.</p>

<p>The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.</p>

<p>That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.</p>

<p>The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.</p>

<p>A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.</p>

<p>&nbsp;</p>

<p>Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.</p>

<p>Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.</p>

<p>While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;</p>

<p>Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.</p>


First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Domain

<html><body>
<div>
<p>Melbourne apartment price growth leaped ahead of house price growth in the first three months of the year, as unit values surged 4.6 per cent in the country's second-largest city.</p>
<p>House prices in the Victorian capital jumped 4 per cent in the March quarter, Domain Group chief economist Dr Andrew Wilson's latest State of the Market Report showed.</p>
<p>Melbourne's growth outdid Sydney, where house prices gained 2.8 per cent and units just 1.3 per cent.</p>
<p>"Melbourne is the clear top performer and will continue to stay there," Dr Wilson told Domain. </p>
</div>
<div>
<p>Melbourne houses will rise 10 per cent this calendar year and units 7 per cent, while Sydney houses will gain 7 per cent and units 3 per cent, Dr Wilson said.</p>
</div>
<div>
<p>He said the strength of Melbourne apartment prices was surprising and indicated that despite some falling in off the plan value, the largely overseas investors who had purchased them were holding on to them, Dr Wilson said</p>
</div>
<div>"We're not seeing any volume of sales in the CBD market," he said.</div>
<div> </div>
<div class="cq-article-content-media section">"That market is in a holding pattern, particularly from international investors who've purchased. They're not putting them onto the market for rental or sale and the growth is coming from suburban units."</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">Part of Melbourne's rise was due to the July elimination of stamp duty for first home buyers.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">
<div class="cq-article-content-media section">The latest report puts Sydney's median house price at a record $1,151,000. Melbourne sits at $843,000.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">
<span>Melbourne’s unit median sits at a record $494,000. Sydney's </span>unit median sits at $717,000.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">In Brisbane the unit prices are going backwards and have seen a fall of 3.8 per cent to $376,000, the biggest drop since 2000.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">AMP Capital chief economist Shane Oliver said higher prices meant people had to borrow more, which added to worries about the level of household debt.</div>
<div class="cq-article-content-media section">
<p>“They’re certainly not welcome numbers,” Oliver said.</p>
<p>“The only people who this is good news for are those who are looking to sell … and move out of Melbourne into regional areas or to cities and states which haven’t seen the gains in recent times.”<span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
<p><span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
<p> </p>
<p><span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
</div>
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Melbourne apartment prices rising faster than houses in March 2017 quarter: Domain

<html><body>
<p>The decision to proceed with the Domain separation from Fairfax Media will be subject to a number of conditions including satisfactory outcome of discussions with the Australian Taxation Office.</p>
<p>Macquarie Capital has been confirmed as appointed to advise on the proposed transaction.</p>
<p>Fairfax Media Limited today announced a strategic review of the Domain Group in preparation for Domain’s potential separation into a new Fairfax controlled Australian Securities Exchange-listed entity.</p>
<p>The separation would result in Fairfax continuing to own a controlling majority of Domain (between 60% and 70%), while issuing shares in Domain to Fairfax shareholders at the time the separation is implemented.</p>
<p>Fairfax Media has reported operating earnings of $145 million for the six months ended December 31 – down 9.9% on the final six months of 2015 – with Domain responsible for a majority of the publishing company’s earnings.</p>
<p>The potential separation would be expected to complete this calendar year.</p>
<p>Fairfax Media Chairman Nick Falloon noted that a separation would result in:</p>
<ul>
<li>A separately ASX-listed entity establishing direct valuation for Domain;</li>
<li>Boards and management teams that will be better able to develop distinct strategies, manage capital structures and conduct investment decisions for their respective businesses; and</li>
<li>The opportunity for Domain to attract new shareholders with different investment criteria.</li>
<li>The current intention is that no new capital will be raised.</li>
</ul>
<p>Post separation, Domain will incur a number of costs and adjustments not currently reflected in its segment financials.</p>
<p>Based on preliminary estimates, these are expected to be approximately $8 million to $10 million per annum, consisting of:</p>
<p>Incremental $4 million Board, listing and other costs associated with Domain becoming a standalone entity;</p>
<p>$4 million to $6 million reflecting the transfer of corporate costs currently borne by Fairfax but attributable to Domain, and commercial agreements with Fairfax for certain services.</p>
<p><span>Antony Catalano, </span>Domain Group chief executive officer will continue to lead the management team.</p>
<p>The complicating tax matter is reportedly "taking up a lot of time inside Macquarie Capital and other advisers," the Fairfax Media Street Talk column has revealed.</p>
<p>"Usually, companies have to spin off or distribute at least 80 per cent of a portfolio company to its shareholders in order to qualify for capital gains tax rollover relief.</p>
<p>"Anything less than 80 per cent can trigger a capital gain (or maybe loss in Fairfax's case) for shareholders at the time of the spin-off, because the ownership is deemed to have substantially changed. It means a potential tax bill, along with a few shares in the new Domain."</p>
<p><em>Street Talk</em> noted Foster's Group, Tabcorp, Brambles and Orica Ltd have pursued full-scale demergers of business units in recent years, rather than retaining stakes in their respective spin-offs.</p>
<p>Fairfax could apply for an individual ruling from the Australian Tax Office to skirt the laws, although dealmakers said they were rare.</p>
</body></html>

jchancellor-FAypfDUnLy

Domain's future depends on helpful ATO ruling

<html><body>
<p class="p1"><span class="s1">Fairfax shares were placed in a trading halt on Tuesday morning <span class="s2">after The Australian Financial Review's Street Talk column revealed spin off plans on Monday. </span></span></p>
<p class="p2"><span class="s3">The media group seems set to retain between 60 per cent and 70 per cent of Domain under the separation plan.</span></p>
<p>Fairfax Media is considering a proposal to "spin off" its real estate business Domain. Analysts expect Domain to be worth about $2 billion as a separately listed entity.</p>
<p>The Australian Financial Review's Street Talk advised no formal decision has yet been made.</p>
<p>It wrote Fairfax is "seriously considering spinning off Domain into a separately listed vehicle to be run by current Domain boss Antony Catalano."</p>
<p>Macquarie Capital is advising Fairfax, it revealed.</p>
<p>The article comes as Fairfax prepares to hand down its financial results for the six months to December 31 on Wednesday.</p>
<p>Domain is expected to be a key feature at the results announcement despite recent reports of a constipated listings market.</p>
<p>A Fairfax spokesperson declined to comment to the AFR columnists.</p>
<p>Sources told Street Talk key Fairfax decision makers thought that "the time was right" to enact the long-speculated spin off plans before the end of the year.</p>
<p>The business column described Domain as the shining light within Fairfax earning about $130 million a year for the publishing company.</p>
<p>Goldman Sachs analysts expect Fairfax to report $139 million in earnings before interest, tax, depreciation and amortisation for the six-months to December 31, with Domain accounting for $65 million.</p>
<p>Goldman Sachs told its clients on Monday that it was "all eyes on Domain" with particular focus on any pushback from agents on January price rises.</p>
<p>Last November the billionaire small cap investor Alex Waislitz urged Fairfax Media to consider changing its name to Domain to reflect its growing real estate listings business is now worth more than the entire company’s market value.</p>
<p>Waislitz, whose listed fund Thorney Opportunities (TOP) and private fund Thorney Investment Group own more than 50 million Fairfax shares, suggested the Fairfax name was “anachronistic” and urged the media company to consider rebranding itself.</p>
<p>“We think Domain alone is worth in excess of the entire market capitalisation of Fairfax," The Australian reported.</p>
<p>Last December when speaking to Mumbrella, Antony Catalano said there was “no need” for the real estate business to float separately.</p>
<p>“When you have a business that is growing as quickly as Domain is growing then we have an obligation to our shareholders to realise the value of this business,” he said.</p>
<p>“Fairfax is never going to float this business when so much of the value still hasn’t been realised.</p>
<p>"We’ve said publicly this is a business we expect to grow from $120m EBITDA to somewhere in excess of $200m EBITDA over the next two to three years."</p>
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Fairfax reports Catalano's Domain spinoff being worked on by Macquarie Capital

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<p>Revenue at real estate arm of Fairfax Media, the Domain Group increased by one third to $296 million, it announced this morning. </p>
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<p>Domain, the key pillar of Fairfax's publishing future, boosted revenue 33 per cent, with its annual EBITDA lifting 39.7 per cent to $120 million.</p>
<p>Digital advertising revenue at Domain rose 26.8 per cent and EBITDA was up 50.3 per cent. </p>
<p>Fairfax has invested more than $175 million in Domain over the past three years. It recently advised its separated prior annual results.</p>
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<p>The Fairfax announcement advised, like News Corp, that July 2016 residential listings were severely impacted by sentiment surrounding the July federal election, with listings down 25 per cent in Sydney and 11 per cent in Melbourne for the month.</p>
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<p>Fairfax chief executive Greg Hywood said Domain performed strongly, despite the uncertainty of the long federal election campaign.</p>
<p>"Domain delivered strong double-digit growth in the second half, despite the dampening effect on June of the longest federal election in modern history," he said.</p>
<p>Fairfax Media has made a nearly $1 billion loss - $893.5m - for the 2016 financial year because of write-downs and redundancies.</p>
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<p>The pioneering media company, whose mastheads including The Sydney Morning Herald and The Age, made an $893.5 million loss.</p>
<p>The loss was mainly due to net charges of $1.02 billion for write-downs including plant and equipment, which also includes nearly $63 million in redundancy costs for the year.</p>
<p>Its total revenue fell 2 percent to $1.8 billion.</p>
<p>Fairfax had made an $87 million profit in 2015.</p>
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<p><span>"We are confident in the underlying strength of Domain and its ability to continue to benefit from improvements in yield, depth penetration, geographic expansion, and revenue diversification," Hywood suggested.</span></p>
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Domain revenues rise by 33 percent at Fairfax Media

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<p>Fairfax Media will write down the value of its publishing assets by close to $1 billion and will separate its Domain Group into a new reporting unit.</p>
<p>Domain has been recently housed with Fairfax's Australian Metro Media business.</p>
<p>Fairfax said that accounting standards have not allowed Fairfax to recognise the value of Domain, so its new reporting segment "made sense."</p>
<p>"Domain makes a significant earnings contribution and remains an integral and growing part of Fairfax. We have no plans for that to change," Fairfax chief executive Greg Hywood said.</p>
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<div>Fairfax made the announcement ahead of its financial results which will come August 10.</div>
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<div><span>More than 50 percent of Fairfax Media’s first-half earnings came from the online real estate business, the biggest contributor to the media group’s total six-month earnings of $98.6 million.</span></div>
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Domain gets new status within Fairfax Media

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<p>GUEST OBSERVER</p>
<p>When Australian media company Fairfax reported its recent results, the improved performance of its online real estate business, domain.com, appeared to violate a widely held “law” of the digital economy - that digital creates a winner which takes all markets.</p>
<p>After a number of years trailing behind News Corp Australia owned realestate.com.au (REA), domain.com appears to have narrowed the gap with its major rival and its aggressive strategy of growing its user base is translating into improved revenue.</p>
<p>Closer examination however suggests this result might just be a temporary pause in a much more profound transformation taking place for digital in the residential real estate industry. One that is likely to see the emergence of a new set of players.</p>
<h2>Can there only be one?</h2>
<p>It’s become commonplace for observers of the digital economy to claim that digital creates “winner takes all” markets. The classic example is Google’s dominance in the search market. Estimates suggest Google accounts for more than 75% of search, and almost 90% of organic search traffic, with its major rivals, Microsoft’s Bing and Yahoo struggling to get out of single digits. This effectively places Google in a monopoly position and allows it to create enormous revenues through products like paid search and adwords.</p>
<p>Using this example it would be tempting to conclude that REA, having established a healthy lead over domain.com in terms of unique visits and exclusive listings, would pull away from its Fairfax rival and come to dominate the Australian residential real estate market.</p>
<p>Instead, Domain is closing the gap on its rival. In part this reflects domain.com’s aggressive strategy of driving traffic to its site, one that ironically parallels the approach taken by News-owned carsguide.com.au in its battle with caresales.com.au. It also suggests that domain.com’s focus on the user experience is beginning to pay off.</p>
<p>Unlike REA, which has made a virtue out of outsourcing all its development, Domain has retained inhouse development expertise and this has given it the ability to more rapidly add new features that enhance the user experience, such as its mapping functionality.</p>
<p>While there are important lessons here for business about not giving up and continuing to focus on the customer, viewed in longer perspective, it’s hard not to conclude that domain.com’s improved performance might just be a temporary reversal of a much more significant transformation taking place in the domestic real estate market.</p>
<p>There can hardly be a market more ripe for disruption than residential real estate. Australian residential housing stock is worth an estimated A$5 trillion and the market is riddled with the type of information asymmetries and inefficiencies that emerging technologies are ideally suited to address. While REA and domain.com have displaced the listing of properties in newspapers, they have hardly transformed the industry. Rather they seem to offer a digital version of traditional real estate listings with a few additional bells and whistles. Both are underpinned by largely similar revenue models.</p>
<h2>Reinventing the market</h2>
<p>It’s worth remembering that before Google, search was dominated by Yahoo, Alta Vista and Netscape. Google transformed search by developing an algorithm based on relevancy that improved the results users gained from searching the web and by rethinking how it monetised search. Rather than try to keep users on its page and bombarding them with advertising, Google directed users away from its page and towards the pages they were looking for. It’s reasonable to expect that the residential real estate market is likely to undergo a similar transformation over the next few years.</p>
<p>It’s interesting to compare the very traditional approach of realestate.com and domain.com with the radically different business models that are emerging in startups looking to disrupt the residential real estate market.</p>
<p>A good example is openagent.com.au, an Australian-based startup founded by two young women who started their careers in consulting. Recognising the highly localised nature of real estate markets and the importance of agents, openagent.com.au takes advantage of publicly available data sets and user reviews to provide sellers and buyers with reviews and metrics on agents in their local areas.</p>
<p>Rather than attempt to charge users for accessing the information, or agents for better listings, openagent’s revenue comes from the referral fees payable by agents who get listings as a result of the reviews on the site. This is a much purer digital play than either REA or domain.com. By providing them access to data in a usable form openagent.com.au seeks to empower buyers and sellers and increase transparency in this very opaque market.</p>
<p>Perhaps the most important lesson Fairfax could draw from the performance of domain.com is not that the winner takes all logic of digital markets is reversible, but that they should have the courage of their convictions and go all in on digital, in the residential real estate market. Rather than just try to close the gap on REA it should be seeking to build a business that will do away with the need for businesses like domain.com at all. It might just find that if the solution it develops is good enough, the law of winner takes all will reassert itself.</p>
<p><em><span class="fn author-name">Nick Wailes is a</span><span style="line-height: 1.3em;">ssociate dean Digital and Innovation, UNSW Business School, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/nick-wailes-108369" target="_blank">here</a>.</span></em></p>
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Domain versus REA shows it’s time Fairfax went all in on digital

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<p>National rental figures held at peak levels through June with the exception of Darwin and Perth, with rents falling 4.4% in Perth and 7.7% in Darwin compared to the last quarter, according to new research released by Domain Group.</p>
<p>The Domain Group Rental Market Report found a house surge in Sydney by 1.9% to a high of $530 per week<span>, with Melbourne rent rising </span><span>2.6% year-on-year.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Domain Senior Economist, Dr Andrew Wilson, said there has been a steady increase in rental rates across most capital cities; the exceptions being Perth and Darwin, where property supply is outstripping demand. Sydney tenants, according to Dr Wilson, are hardest hit with rents increasing to record highs, reflective of the highly competitive property market.</span></p>
<p><span>“Unprecedented residential investor activity in Sydney over the past year and a surge in new dwelling construction have failed to provide rental relief for tenants with house rents increasing by 3.9 per cent over the year and unit rents up by 1%," Dr Wilson said.</span></p>
<p><span>“Although increasing rent is likely to continue in most capitals for the remainder of 2015, early signs of relief are emerging for tenants with vacancy rates easing over June. That said, investors are set to remain active – particularly in the Sydney market – given the high yields, low interest rates and the likelihood of continued solid capital growth.</span></p>
<p><span>“The data indicates that increased investor activity and construction may be offsetting the rising demand for rental properties. The demand is driven by solid migration levels and low first home buyer numbers."</span></p>
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