<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

Residential Construction

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Construction has begun on DUO, the joint venture of Frasers Property Australia and Sekisui House Australia.
The joint venture has appointed construction company, Brookfield Multiplex, to deliver DUO under a $290 million construction contract.
DUO is scheduled for completion in early 2018.
More than half of the 5.8 hectare Central Park precinct has already been delivered.
The start of construction of DUO’s two towers on Broadway kicks off the fifth stage in the construction program of this $2 billion master-planned community in Chippendale.
The pair of buildings will be located on the corner of Broadway and Abercrombie Streets at the award-winning Central Park development in Chippendale.
Designed by one the world’s most awarded architecture practices, Foster + Partners, DUO will be Foster + Partners’ second residential building in Australia.
For more information, <a href="https://www.centralparksydney.com/live/duo" target="_blank">click here</a>.
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Duo construction begins at Central Park, Chippendale

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The Australian Bureau of Statistics released construction work done data for the March 2016 quarter last week. 
The data set looks at the value of construction work completed over the quarter and is an input to the national accounts (GDP) data.
<a href="/images/2016/06/06/Chart-1-3-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/06/Chart-1-3-580x210.jpg" alt="">
Over the quarter, the value of construction work done was $47.928 billion which was down -5.5 percent over the quarter and -7.2 percent year-on-year.  In fact, the value of construction work done over the March 2016 quarter was the lowest since June 2011 and has been trending lower since the December 2012 quarter.
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The decline in the value of work done is largely being driven by engineering construction which was bolstered until recent by the mining investment boom.  Over the quarter there was $24.9 billion worth of building work completed and $23.0 billion in engineering construction completed. 
It shows that following a recent boost from infrastructure investment, building construction is now the key driver.  The value of engineering construction work done peaked at $34.7 billion in the September 2012 quarter and has since fallen by -33.6 percent while building activity peaked at $25.2 billion in the December 2015 quarter and has fallen by -1.0%.  With construction work in both the building and engineering sectors falling it is difficult to see how construction work done won’t continue to decline over the coming months.  Even the largest residential housing construction boom on record has not been enough to offset the previous largest engineering construction investment boom on record.
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The building segment of construction work done consists of residential and non-residential construction (offices, retail shops, industrial properties).  The previous data showed building work has started to fall with the fall being driven by non-residential construction.  In fact residential construction work done is continuing to climb and is now at a record high $16.6 billion while non-residential is down -18.6 percent from its June 2010 peak.  While the largest residential construction boom in history continues to drive activity in that sector higher, it isn’t enough to offset the decline in the non-residential (and engineering construction) sector which is well below peak levels of activity.
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The residential construction component is further broken down into three components: houses, other residential (units) and alterations and additions, including conversions. Unit construction work done reached a record high of $6.8 billion on the back of the biggest unit construction boom on record. 
While unit construction activity continues to rise, the $7.7 billion in work done for houses is down -7.1 percent from its recent peak in March 2015 at $8.3 billion.  The value of alterations and additions completed was recorded at $2.0 billion over the quarter down -6.9 percent from its $2.1 billion peak over the September 2011 quarter.  It is anticipated work done for houses will continue to trend lower while unit work should trend higher over the next few quarters before starting to fall. 
Meanwhile, the direction of alterations and additions is unclear but there could be some scope for an increase over the coming quarters and years given how much equity some home owners have and the costs associated with moving home.
Residential construction has been a large contributor to economic growth over recent years however, it looks as if it is likely to start detracting from growth as construction activity moves through a peak. 
Housing construction activity has already been fading for a year while unit activity continues to rise however, we anticipate that it too will turn within the next 12 months. With the resources boom and concurrent infrastructure investment boom so important to Australia’s prosperity coming out of the financial crisis as it faded, building activity became extremely important, particularly residential construction activity. 
With the residential construction boom starting to fade we need the next economic driver to rise in order to offset the slowing in building activity. An increase in infrastructure investment would seem to be a prime candidate however, Governments may not be willing to invest the money. The next boom will seemingly need to come from somewhere else; potentially from the education, health and tourism sectors as the lower Australian dollar makes these sectors more globally competitive as well as increased consumption if households start to ease their rate of saving.
 
<div class="sharedaddy sd-sharing-enabled">
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>. </div>
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ckusher-ujnxiKuFQs

The value of construction work done for houses is falling with units likely to follow shortly: Cameron Kusher

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Construction costs in Australia put it the 14th most expensive out of 38 countries surveyed for the latest International Construction Market Survey from Turner &amp; Townsend, with national construction costs expected to rise 2.5 percent on average in 2016 compared to 2.9 percent globally.
Zurich took out first spot with Perth at 18, Melbourne at 20 and Brisbane at 22nd.
Gary Emmett, senior economist for Turner &amp; Townsend comments said since last year’s survey, Australia’s construction costs have only increased a few percent in contrast to other countries where markets are overheated. 
He said to ensure Australian prices stay at reasonable levels, the construction industry must think differently and look for cost savings within the supply chain where the biggest savings and innovation can be found including manufacturing production, design and logistics.
“The industry needs to collaborate with suppliers to look for savings as opposed to traditional adversarial relationships. The use of building information modelling (BIM) will help the industry collaborate to gather data and share plans throughout the lifecycle of an asset to find greater cost saving efficiencies,” he said.
"The costs across Australia’s four major markets show Brisbane increased by 4 per cent in the past 12 months, Sydney hit 3.5 per cent while Perth and Melbourne recorded cost increases of 1 per cent respectively.
“For example, Brisbane and Sydney’s apartment booms have led to the increase in costs in these states. Perth has remained relatively steady due to the mining boom finishing and Melbourne is now experiencing a flat period following a busy apartment boom.
“We are also witnessing increased tender competition which is driving down profit margins.  There is an opportunity now for the industry to look at different delivery and commercial models to improve productivity and margin on projects."
The International Construction Market Survey 2016 analyses input costs uch as labour and materials and charts the average construction cost per sq m for both commercial and residential projects. It can be found <a href="https://turnerandtownsend.cld.bz/icms-16" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Australia's construction costs remain stable

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<div class="column">GUEST OBSERVER </div>
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 The ‘baton pass’ from engineering to residential building is clear for all to see.</div>
<div class="column"> </div>
<div class="column">Engineering work continues to recede while home building has hit new highs. Interestingly the gap between building (residential and commercial) and engineering in terms of total work is the largest in almost for six years. The results are even more staggering when you consider that just over two years ago engineering work surpassed total building by more than $11 billion. The speed of the turnaround has shown up in the patchiness across the national economy and in effect highlights the difficulties faced by policymakers in trying to shore up growth.</div>
<div class="column"> </div>
<div class="column">Interestingly inflation in the building sector seems to be more subdued than in the past year. Granted the annual rate of construction inflation is the fastest in almost five years. But it is largely due to a couple of outsized inflation in the September and December quarters last year. In fact the more sedate 0.5 per cent March quarter inflation reading resonates with the modest consolidation taking place in the housing sector and adds to the lack of inflation across the broader economy. The lack of inflation in the rest of the economy is likely to keep the Reserve Bank focussed on supporting price growth. </div>
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The data is unlikely to alter the Reserve Banks thinking when it comes to rates.
The focus now turns to the March quarter business investment data released tomorrow. And while the Reserve Bank will be particularly interested in estimates of completed non-mining investment, there will be a much greater focus on future spending plans. In the March quarter the first estimate of investment in 2016/17 was just $82.57 billion (weakest result since 2007/08), and 19.5 per cent lower than the first estimate for 2015/16 – marking the largest fall for a first estimate reading in records going back 25 years.
While policymakers will continue to discuss the merits of another rate cut, it really comes down to the inflation outlook. CommSec expects a low inflation result over the June quarter should result in the central bank cutting the cash rate in August.
What do the figures show?
Construction Work
Construction work done fell by 2.6 percent in real (inflation-adjusted) terms in the March quarter after sliding by 2.9 percent in the December quarter. 
Work done is down by 6.7 percent on a year ago. Public sector construction work rose by 2.5 percent in the quarter while private sector activity fell by 3.7 percent. 
Construction work fell in five of the states and territories in the March quarter. Leading the falls was Northern Territory (down 10.2 percent), followed by Western Australia (down 9.3 percent), South Australia (down 3.2 percent), Queensland (down 2.9 percent) and Victoria (down 1 percent). Construction rose in NSW (up 2.6 percent), the ACT (up 2.3 percent) and Tasmania (up 1.9 percent).
Engineering work fell by 4.2 percent in the March quarter. Engineering construction is down by 13.7 percent on a year ago.
Commercial (non-residential) building fell by 5.5 percent in the March quarter to be down 7.2 percent over the year. 
Residential building rose by 1.5 percent in the March quarter and was up by 5.7 percent over the year. Alterations &amp; additions rose by 1.1 percent in the quarter while new residential work rose by 1.5 percent.
The measure of inflation in the construction sector (deflator) rose by 0.5 percent in the March quarter. The annual rate of construction inflation rose from 1.9 percent to 2.3 percent – matching the fastest annual growth rate in almost five years.
Engineering prices rose by 0.6 percent in the quarter (up 1.9 percent over the year) while building prices rose by 0.4 percent in the quarter (2.3 percent over the year).
What is the importance of the economic data?
The Bureau of Statistics releases quarterly estimates of Construction work done. The estimates are based on a survey and cover around 85 per cent of the construction work done in the period. Revised estimates will be released in coming months. The data is useful largely for historical purposes but the work yet to be done estimates provide an early warning signal of future activity. The residential work figures give a good early guide to the strength of residential investment in the national accounts. 
What are the implications for interest rates and investors?
There is plenty of work in the construction sector. But there are winners and losers across states and industry sectors. The Reserve Bank will not be overly concerned with the current trends in construction. Overall activity is correcting as expected and adjusting to the new realities. We expect the Reserve Bank to cut rates once again in August.
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<div class="column"><img src="/images/2016/05/25/Screen%20Shot%202016-05-25%20at%203.58.10%20PM.png" alt=""></div>
<div class="column">Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></div>
</div>
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Construction eases, home building at record highs: CommSec's Savanth Sebastian

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Most of our hidden housemates are harmless. But when it comes to termites, some can literally eat us out of house and home.
While termites' ability to damage our homes by eating wooden foundations is legendary, most species do not cause problems. Usually they are rarely seen, hidden away inside wood, underground or in their nests.
<h2>The importance of termites</h2>
Termites eat cellulose – the complex sugars that plants use to build leaves, stems and trunks. Cellulose is the most abundant organic compound on earth. To find wood and other cellulose sources, termites often construct miniature, private highways under the soil that can radiate more than 50 m from their nests.
Perhaps the most famous termite nests are those made by the magnetic termite, Amitermes meridionalis, in northern Australia. These nests are oriented in a north-south direction. Many other species build mounds of different shapes and sizes, while others nest in wood, underground in the soil, or in trees. 
The combined mass of termites on earth is estimated at 445 million tonnes, putting them in the top ten alongside cattle, krill, ants and humans.
Outside our homes, termites play a critical role as carbon recyclers and are considered keystone species in many tropical ecosystems, such as savannah habitats like those of northern Australia, Africa and South America. They use nutrient-rich saliva and gut excretions to build tunnels, which improves the quality of the soil. Alongside ants, there is evidence that termites increase crop yields.
When winged adult termites emerge from the nest they become a feast for many animals across the tropics.
<h2>Cockroach relatives</h2>
Termites evolved more than 140 million years ago from social cockroaches that burrowed deep into rotting wood. The closest living relatives of termites are cockroaches from the genus Cryptocercus, found only in isolated mountainous areas of China, Korea and North America.
Mum and dad Cryptocercus pair up and burrow into a large log that will be their home (and source of food) for life. Soon after meeting, the female lays a single clutch of 10 or so offspring, which they both feed and look after for around three years – about half the life of a typical Cryptocercus.
As termites evolved, their firstborn offspring began to look after the next clutch of siblings, freeing mum and dad to produce more sons and daughters. The older siblings stayed to build and defend the colony, and feed and look after the young.
The population of a termite colony these days can number in the millions. All the offspring derive from of a single reproductive pair (the queen and king).
Some species have evolved alternative systems. Colonies of the Australian termite Nasutitermes exitiosus often contain up to four unrelated pairs living together with their countless offspring in apparent harmony – a bit like a 1960s hippie commune.
In the Japanese termite Reticulitermes speratus, the king tends to outlive the queen. But the queen produces many half-clones of herself without any genetic input from the king (a form of virgin birth). These clones replace their dead mother, and all mate with the remaining king. In one colony, over 600 of these queen-clones have been found, making it the largest harem known in the animal kingdom.
<h2>One giant organism</h2>
The vast majority of termite offspring within a colony will never reproduce. Instead, these worker and soldier termites remain in a state of suspended development, never becoming adults. Soldier termites attack predators to ensure the survival of the colony and have evolved impressive jaws or snouts that spray toxic chemicals.
In some species like Neocapritermes taracua from South America, workers sacrifice themselves through the use of an “explosive backpack”. They do this by rupturing their skin, which allows normally harmless chemicals to mix and produced modified chemicals that are dangerous to any nearby predators.
All the efforts of the workers and soldiers go towards raising a small proportion of their brothers and sisters to adulthood, usually once a year. This select few will grow wings (all four of which are almost identical, hence the scientific name Isoptera meaning “equal wings”), pair up and promulgate the genes they share with their siblings back home.
<h2>Living with us</h2>
The dark, humid areas under the floor of many Australian houses provide the ideal environment for termites to emerge from the soil and create their covered highways up foundations to a mother lode of wooden frames.
In Australia, about a billion dollars is spent each year on termite control. House-eating termites are most common in the tropical north, although they are found throughout the continent. While there are more than 300 species of termite, only a handful are considered pests.
Most termites are deterred with chemicals and by replacing damaged wood with treated timber.
Their sophisticated social system is also their Achilles heel. Termite baits contain slow-acting chemicals that prevent termites from moulting or disrupt their nervous systems. Workers voraciously feed on the bait and take it back to the colony, where the poison is spread to the queen, king and their new offspring.
But as one colony is killed, another is often ready to take over. Termites have been around a long time and they are not likely to go away any time soon.
Nathan Lo is associate professor, School of Biological Sciences, University of Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/nathan-lo-248026" target="_blank">here</a>.
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Hidden housemates: the termites that eat our homes

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Apartments are being built at a record-breaking pace.
The table below, supplied by CoreLogic RP Data to the BusinessInsider website, contains the top 25 locations for expected apartment completions over the next 24 months.
Dominated by Australia’s most populous states, New South Wales, Victoria and Queensland, CoreLogic RP Data calculates that there’ll be 231,129 new apartments built over the period.
<a href="/images/2016/05/12/Corelogic-RP-data-top-25-locations-for-apartment-completions.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/12/Corelogic-RP-data-top-25-locations-for-apartment-completions.jpg" alt="">
With so much stock coming online at once there is increasing concern as to whether settlement valuations will actually meet the contract price of units in some of these locations.
Cameron Kusher, research analyst at CoreLogic RP Data, suggests that tighter restrictions on investor and overseas buyers from Australian banks could amplify settlement risks.
“Mortgage lenders have recently tightened their lending criteria, subsequently some people who have committed to off-the-plan units may not be able to borrow as much as they could at the time of signing the contract,” says Kusher.
“To compound the situation, three of the four largest banks have announced they will no longer be lending to overseas home buyers which may result in a larger number of contracts not progressing through to settlement, considering a larger proportion of off the plan unit sales are to overseas buyers.”
As a result of these factors and increased supply in some regions, Kusher believes there is a clear risk that some properties may be be worth less than the price they were purchased for off the plan.
{mijopolls 141}
 
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Australia's 25 apartment construction hotspot localities: CoreLogic RP Data

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The housing market in Coffs Harbour, far north New South Wales and Sydney is on the decline, according to valuation firm Herron Todd White.
HTW state east coast NSW is largely holding a steady trend in rental vacancy and the volume of house sales, but house sale volumes are beginning their fall in Sydney. 
New house construction is ramping up in Canberra.
<a href="/images/2016/05/09/Screen%20Shot%202016-05-09%20at%202.15.21%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/09/Screen%20Shot%202016-05-09%20at%202.15.21%20PM.png" alt="">
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Coffs Harbour, Sydney houses in price decline: HTW

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Stockland has reported positive results across its business.
Its CEO, Mark Steinert said all of its core businesses continue to make such strong contributions.
“We’ve maintained high sales volumes across our residential business.”
Stockland’s residential business secured 1,706 net deposits in the quarter, with new projects and new townhouse sales helping to generate 279 more sales than the corresponding period in FY15.
<a href="/images/2016/04/28/Screen%20Shot%202016-04-28%20at%2010.34.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/28/Screen%20Shot%202016-04-28%20at%2010.34.29%20AM.png" alt="">
Stockland is on track to achieve full year settlements slightly above its target range of 5,000 – 6,000 lots.
“In residential, we’ve seen strong market conditions continue in New South Wales; Queensland is strengthening, generating good demand and strong sales on our new projects; Victoria remains robust and we had a good response to the campaign we ran in Western Australia,” Mr Steinert said.
“Around 90 percent of our residential capital is now employed in projects where sales are underway, up from 60 percent two years ago.
"We’re progressing well with all of the new projects we’ve launched over the last six months.
"We are actively selling lots at Aura and Newport in south east Queensland; Altrove in north west Sydney and we will soon commence sales at Pallara, south west of Brisbane.”
For more information on Altrove, <a href="https://www.stockland.com.au/residential/nsw/altrove-living-at-altrove.aspx" target="_blank">click here</a>.
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Stockland lots selling well at Altrove in north west Sydney

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SPONSORED POST
The benefits of living in a sustainable home include a more attractive and healthier environment, and lower costs through savings on energy and water bills.
But encouraging sustainability in the residential building sector has presented challenges.
“The residential sector is in some ways more complex than any other sector in that there are an incredible number of private owners, a pretty average National Construction Code, and huge gaps in knowledge both of residents and house builders,” says Vice-Chair of the Board for the Living Future Institute of Australia, Stephen Choi.
“Housing in general – and particularly our existing homes – is one of the most important and to some extent, ‘untouched’ areas of the built environment when it comes to providing better places to live.”
Despite the barriers, Choi is encouraged by progress in areas such as the ‘fabric first’ approach, which aims to maximise the performance of the components that make up the building fabric itself. Passivhaus is an energy performance standard that uses this approach to set targets for the thermal performance of buildings, including homes.
About 30,000 buildings worldwide have been constructed to the Passivhaus standard. The standard encourages the use of insulation, passive solar design, making a property airtight to minimise unwanted heat loss or gain, and good indoor air quality provided by mechanical ventilation and heat recovery systems.
A home’s thermal performance has a major effect on its energy consumption.
About 40 percent of household energy is used for heating and cooling, according to the Australian Government’s Your Home website.
“This rate could be cut to almost zero in new housing through sound climate responsive design,” the website says.
Energy and water saving measures that reduce utility costs are popular in residential properties but beyond the cost savings it has been difficult to engage consumers’ interests in sustainable development, says Frasers Property Australia’s general manager of sustainability Paolo Bevilacqua.
As such, sustainability in residential developments has tended to focus on initiatives outside of individual apartments or houses.
The residential buildings at Central Park in Sydney share energy and air conditioning facilities rather than each building having its own facility, for
instance. This allows for a more efficient system overall. Residential developments are increasingly providing access to public transport, cycle paths and pedestrian footpaths to ensure residents aren’t restricted to travelling by car.
Some developments include fitness facilities, swimming pools and walking trails to promote residents’ health. Similarly, parks and gardens, including roof top and vertical gardens where space is limited, are becoming more common.
Bevilacqua says the green walls at One Central Park is one example of how green elements can be successfully introduced into an urban development.
“From a visual point of view it has benefits for people living in those buildings. It’s a beautiful outlook and improves air quality,” he says.
Better air purification, access to day light and lighting that works with people’s circadian rhythms are priorities gaining traction in residential developments as people begin to understand the impact on their health and wellbeing, Bevilacqua says.
For more information, download our eBook <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/52152-australia-aspires-to-global-green-leadership-the-living-building-challenge" target="_blank">here</a>. 
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What are the future trends in sustainable residential development?

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<div>It looks as though 2016 is shaping up to be a year within which the residential construction boom, which has mostly served the demands of foreign investors, begins to tail off.</div>
<div> </div>
<div>We should never read too much into the results of one month, of course, but reflecting trends that have already been reported by Housing Industry Association (HIA) finance for the purchase of new dwellings fell by more than 15 percent in February.</div>
<a href="/images/2016/04/13/A5.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="/images/2016/04/13/A5.jpg" alt=""></div>
<div class="separator"> </div>
<div>Although it is not yet much reflected in the rolling annual data below, finance for the construction of new dwellings also ticked back by -1.9 per cent in February.</div>
<div> </div>
<div>It may or may not be too early to call the peak on finance for dwelling construction after a very solid run through this cycle, but market releases suggest that building approvals are now on a downslope, and construction will probably follow suit in time too.</div>
<a href="/images/2016/04/13/A11.jpg" target="_blank">Click to enlarge</a> <img src="/images/2016/04/13/A11.jpg" alt="">
<div>Market shifting away from investors</div>
<div> </div>
<div>Figures showed investor lending steadying at around a seasonally adjusted $11.9 billion, which is still a historically high figure, but some way down from the August 2015 peak.</div>
<div> </div>
<div>A quick glance at the chart for loans outstanding shows how banks and lenders have shifted their focus in favour of home loans, a direct response to APRA's regulatory intervention.</div>
<a href="/images/2016/04/13/A6.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/13/A6.jpg" alt="">
 
<div>We know that there remain blurred lines between investor and home loans, but the February data shows that overall the balance has tilted back in favour of owner-occupier finance ($21 billion) over investment housing finance ($11.9 billion).</div>
<div> </div>
<div>Overall, 2016 looks likely to be a steadier year for property markets, as investors are limited in their borrowing capacity. It's worth remembering that owner-occupiers represent a greater share of the market, and as such have the potential to push prices up in the areas in which they are buying (think middle-ring suburbs, catchments for good schools, good transport links, appealing shopping and lifestyle locations). Investors should now begin to account for about one third of the market, which is much more in line with historical averages.</div>
<div> </div>
<div>With returns from fixed interest accounts so low and mortgage repayments much lower than they were, many in the home ownership sector will look to improve the value of their own homes, or look to acquire renovation projects.</div>
<div> </div>
<div>Indeed major renovations activity is now at long last trending up in all three of the most populous states, with Sydney leading the way by a margin. Renovation activity is presently less popular in Melbourne, with considerably more modern housing available following a strong decade of construction and dwelling supply.</div>
<a href="/images/2016/04/13/A10.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/13/A10.jpg" alt="">
 
<div>First homebuyers subdued</div>
<div> </div>
<div>While 2016 looks set to be the year of the homebuyer, much of the activity is being driven by refinancing and existing home-owning folk looking to trade up or down, rather than by new market entrants.</div>
<div> </div>
<div>Even if the ABS data is not quite complete or accurate, it seems fair to surmise that the share of dwellings financed by first homebuyers is tracking some way below the long run averages.</div>
<div class="separator"><a href="/images/2016/04/13/A9.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/13/A9.jpg" alt=""></div>
 The wrap 
<div>2016 therefore seems likely to be a year wherein markets are increasingly moved by homebuyers ahead of investors.</div>
<div> </div>
<div>It is worth reiterating here that in part due to high transaction costs, whether bought as a home or a pure investment, property works best as a long term play.</div>
<div> </div>
<div>The internet and financial media is largely - though, of course, not absolutely - a fusion of noise, short-termism, misinformation and guesswork when it comes to property market commentary. You only need to look back to 2012 for some classic examples of that. In my opinion there is very little value in comparing returns with the share market over a one or two year timeframe. Each asset class has its merits and place in a portfolio, but generally speaking property needs at least a ten year time horizon in order to justify the transaction costs.  The data yesterday confirmed that home loan activity levels - although not necessarily aggregate mortgage values - are rising solidly in Queensland, and this is readily visible in some of the family-friendly middle ring suburbs of Brisbane. Investor hubs are considerably patchier, and many of the resources regions are an absolute disaster zone.  A final point of interest for today is that markets had increasingly been lining up bets for an interest rate cut as soon as May, though I personally didn't like the odds of that happening.  I don't spend hours deliberating over monetary policy wording, but clearly the Reserve Bank (RBA) noted in its most recent decision release that "continued low inflation would allow scope for easier policy, should that be appropriate...". There are probably three things that would need to be in place for an interest rate cut, being a cooling of property investor lending (tentative tick), confirmation that hiring is weakening, and evidently confirmation of continued low inflation.  The Labour Force figures for March are due out on Thursday, and the market consensus sees a fairly moderate result as likely, with some clear risks to the unemployment rate reading, while the March inflation data is due out towards the end of the month. There's a bit of water to flow under the bridge between now and then, but a nice bump in key commodity prices overnight and an incredibly strong result from NAB's Business Survey really don't point towards a rate cut at this stage.  A cracking NAB survey showed a surge in business conditions at their highest level in fully eight years since 2008, and while the employment gauge jumped to a five year high. Business conditions are now showing a reading of +12, absolutely miles above the long run average of +5, and capacity utilisation has improved strongly (I do note here, though, that the outlook for mining remains dire).  The RBA has arguably been a reluctant cutter through this cycle, so I reckon that rules out a May cut. In fact, interest rates could be on hold for as far as the eye can see.  As ever, happy to be proven wrong on that, though.</div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
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