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<p>Concrete should be coming in by the truckload, but in one of the fastest-growing regions in Sydney’s inner west, there is a development block.</p><p>The disparity in Rhodes is striking—on the west side of the tracks, towers soar 144m high while to the east there are single-storey homes.</p><p>Along the Parramatta River, prime sites are covered by older warehouses waiting for redevelopment ... but the time might never come.</p><p>Billbergia development director Rick Graf says they own about 70 per cent of the land in Rhodes East.</p><p>“Getting the right level of development approval is difficult but when you have patience and tenacity, eventually you can get something done,” Graf says.</p><p>“But the biggest problem with Rhodes East, when the state government gazetted a planning strategy in 2021, is that after seven years of going to and fro, most of what they gazetted is, regretfully, not feasible.</p><p>“The floor-space ratios, heights and densities that they’ve gazetted don’t make the developments feasible and, as a result, a lot of that land will be sterilised for a few decades.”</p><div id="5FNEIbd3MBResDzkUu01Sv"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3BRI7yXFy3IUWc5aZRx2u8/506f8926cc8a6d514ebe3417a7ef5bf9/Copy_of_Mid_article_resizes__31_.jpg" alt="Aerial image of Rhodes on a sunny day showing the redevelopment in the area." data-mce-src="//images.ctfassets.net/8pr762qjocl3/3BRI7yXFy3IUWc5aZRx2u8/506f8926cc8a6d514ebe3417a7ef5bf9/Copy_of_Mid_article_resizes__31_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Rhodes was rezoned in 2021 to allow for 4200 new homes. Image: Nearmap<br><br></span></div></div><p>Rhodes East was split into three zones and portions of the industrial land rezoned for residential.</p><p>“Which is a lower land value than the existing industrial—so the vision they announced was to be an exciting new waterfront entertainment destination and they down zoned it—so it will never come,” Graf says.</p><p>“Nor will it be enough revenue to remediate the contamination that is under those buildings that have been there for many many decades.&nbsp;</p><p>“It’s not going to get feasible by itself, it’s going to need amendments to the rezoning.”</p><p>However, there is a section of Rhodes East which stacks up and Billbergia notability has sites to its south and north.</p><p>The most recent development application in Station Gateway East is by Meriton, which have cleared 10 lots to build 285 apartments.</p><div id="2yR8NXWvNdkBkQvZJ3X5zW"><picture><img src="//images.ctfassets.net/8pr762qjocl3/L5nMGurZrho7oSJF3McIK/4ddf43a529743e28879204e728409c16/Mid_article_resizes__61_.jpg" alt="render of two towers in Rhodes East, the 9 storey overlooks the park and a taller tower is behind it." data-mce-src="//images.ctfassets.net/8pr762qjocl3/L5nMGurZrho7oSJF3McIK/4ddf43a529743e28879204e728409c16/Mid_article_resizes__61_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ Renders of the tower proposed by Meriton for its amalgamated site at Rhodes East.<br><br></span></div></div><p>It has taken a long time for this project to materialise, a Meriton spokesperson says.</p><p>“We have not purchased land in NSW for almost two years so we are working through the sites that we have,” they say.</p><p>“The Rhodes project aligns with our broader intentions to provide high-quality apartments in well-located areas with a higher-proportion of larger apartments to accommodate owner-occupiers and families.&nbsp;</p><p>“It is important that adequate parking is provided and we are eagerly waiting the adoption of increased parking rates for the precinct.”</p><div id="2yR8NXWvNdkBkQvZJ3X5zW"></div><p>The design by Plus Architecture has two tower forms, one 28 storeys and the other nine storeys, overlooking McIlwaine Park.</p><p>The mixed-use development has retail, childcare, commercial and a medical centre on the ground floor of the 5515sq m site.</p><p>However, projects on the west side of the tracks still far out number these developments in the City of Canada Bay council area.</p><p>Deicorp recently selected Fender Katsalidis for its 32-level project on the west side of Rhodes at the corner of Marquet and Mary streets.</p><div id="snjCIIE5hmXlVOVnycK1P"><picture><img src="//images.ctfassets.net/8pr762qjocl3/46upqvnoeFS7AHmM1ebCj3/822447fcbabba2528016f1e2051991e1/Copy_of_Mid_article_resizes__33_.jpg" alt="two images side by side, the first of a 32 level tower and the second of its colourful podium to be built in Rhodes" data-mce-src="//images.ctfassets.net/8pr762qjocl3/46upqvnoeFS7AHmM1ebCj3/822447fcbabba2528016f1e2051991e1/Copy_of_Mid_article_resizes__33_.jpg"></picture><div><span style="opacity: 0.8;" data-mce-style="opacity: 0.8;">▲ The Fender Katsalidis design includes 213 apartments, a three-storey basement and retail and commercial space.</span></div></div><p><br>Deicorp chair Fouad Deiri says the business remains confident high demand in the area will continue.</p><p>“We’ve been encouraged by strong growth in purchaser inquiries and sales since the start of the year,” Deiri says.</p><p>This sentiment was shared by developers across the suburb including neighbouring heliostat developer Billbergia.&nbsp;</p><p>“We’ve been there for more than 15 years and we’ve already done about 16 buildings in Rhodes,” Graf says.</p><p>The group recently <a data-mce-href="https://www.theurbandeveloper.com/articles/billbergia-rhodes-east-leed-street-design-winners" href="https://www.theurbandeveloper.com/articles/billbergia-rhodes-east-leed-street-design-winners" target="_blank" rel="noopener">revealed its design at 25-27 Leeds Street </a>but other sites will be developed when the time was right.</p><p>City of Canada Bay council was contacted in relation to the <a data-mce-href="https://www.theurbandeveloper.com/articles/plans-to-build-up-rhodes-revealed" href="https://www.theurbandeveloper.com/articles/plans-to-build-up-rhodes-revealed" target="_blank" rel="noopener">rezoning and development activity in Rhodes East </a>but was not available for comment.<br><br></p><hr><p><strong><br>You are currently experiencing <em>The Urban Developer</em> Plus (TUD+), our premium membership for property professionals. </strong><a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans"><strong>Click here to learn more.</strong></a></p><div id="2GhuueZl01Zwo2aFfjNVi2"><picture><img src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" alt="TUD + Banner" data-mce-src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg"></picture></div>

The east side of Rhodes is squarely in the crosshairs for developers looking for upside in Sydney’s inner-west as they jostle for remaining sites…

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>ASX-listed Mirvac plans to grow their build-to-rent portfolio after buying 7-23 Spencer Street for $200 million.</p><p>The Flinders West acquisition, made just prior to Christmas, is in line with Mirvac&#x27;s <a href="https://theurbandeveloper.com/articles/mirvacs-292-million-sydney-olympic-park-development-approved">strategy</a> to grow its build-to-rent portfolio in Australia.</p><p>Mirvac will transform the former Melbourne convention centre into two towers—a 40,000sq m office tower and 430 build-to-rent apartments.</p><p>The site was last purchased in 2016 by Chinese developer Nuway Wy for $97 million who had approval for 1100 apartments across three towers. <a href="https://theurbandeveloper.com/articles/chinese-developers-announce-skyscrapers-on-former-convention-centre-site">Century Group Australia planned to spend $800 million</a> on the development and <a href="https://theurbandeveloper.com/articles/century-group-announces-first-st-regis-hotel-in-australia">named operator</a> St. Regis Hotels &amp; Resorts in August. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/62ae9a5e-ab80-442f-bfa1-004c68da1408.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">▲ An Australian-first St Regis luxury hotel was planned for the Spencer Street site.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Mirvac’s chief executive Susan Lloyd-Hurwitz said the deal was a unique opportunity to secure a large development site that will strengthen both its commercial and build-to-rent portfolios.</p><p>“This site provides us with an opportunity to add to our high-quality Melbourne office portfolio and grow our burgeoning build-to-rent portfolio in a location supported by strong transport links, ongoing infrastructure investment and favourable demographics,” Lloyd-Hurwitz said.</p><p>“The increasing demand for rental properties in Melbourne’s CBD also makes this a perfect location for our next build-to-rent project.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/e59c65fa-ff73-4b6e-9175-400e3d57376d.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">▲ Three towers including a luxury hotel were originally planned for the Spencer Street site.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Mirvac launched the Australian<a href="https://theurbandeveloper.com/articles/mirvac-launches-build-to-rent-club"> build-to-rent club</a> in 2018 with Clean Energy Finance Corporation to address housing affordability and already has projects in Sydney and Melbourne.</p><p>December also saw Mirvac and its consortium with John Holland given the green light to deliver the <a href="https://theurbandeveloper.com/articles/waterloo-metro-quarter-approved">$800 million Waterloo Metro Quarter</a> development in collaboration with the NSW government.</p><p>The Spencer Street purchase will be paid in instalments with settlement expected to occur between March 2020 and August 2021.</p></div></div></div></div></div>

Mirvac Group adds to build-to-rent portfolio with $200 million purchase of 7-23 Spencer Street

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>A new $1 billion-plus Sydney lifestyle and shopping centre is under way, after $180 million was spent transforming a car park in Castle Hill.</p><p>The stage one extension was part of a masterplan for QIC Global Real Estate to add two hotels, three residential towers and an office building atop Castle Towers Shopping Centre.</p><p>This follows a trend in creating mixed-use town centres away from the CBD and once finished, is expected to place The Hills precinct alongside other major shopping centres including <a href="https://theurbandeveloper.com/articles/melbournes-chadstone-the-most-profitable-shopping-centre-in-the-country">Chadstone</a> (215,056sq m) and Westfield Chermside (176,931sq m). </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/a38854d0-1f13-47d9-a9dd-fdb224170de8.jpg" width="960"/></picture><div><span style="align-content:center;opacity:0.8">▲ A $180 million retail and lifestyle destination in Sydney&#x27;s Hills District has been unveiled, promising to transform the local area. Image: Supplied</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The Lendlease-built, Buchan Group-designed precinct is expected to reach 193,457sq m upon completion.</p><p>This masterplan for QIC was underpinned by the affluent trade area experiencing significant residential and infrastructure development. </p><p>The Hills District, a key strategic growth corridor for Sydney, has a total trade area spend which is predicted to increase from $6.4 billion to $12.1 billion over the next 10 years.</p><p>Stage one of the masterplan also included a purpose-built pedestrian tunnel with the only direct link on the new $8.3 billion Metro North West Line.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/64eee740-3b97-4336-b6f4-c09466075ab1.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The centre is underpinned by an affluent trade area currently experiencing significant residential and infrastructure development. Image: Supplied</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>QIC Global Real Estate managing director Michael O’Brien said it was an ideal example of its long-term vision to transform its assets into hyper-connected, mixed-use town centres that serve the whole-life needs of the local community.</p><p>“Sitting in the heart of one of Sydney’s most sought-after residential catchments, it was a strategic priority for us to work closely with Sydney Metro to deliver on our vision to transform Castle Towers into a destination with multi-modal transport options for the 18 million customers who visit each year,” O’Brien said.</p><p>In total 38 new retailers opened their doors in December with an additional nine stores expected to start trading in early 2020. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>O’Brien said he was proud that QIC’s investment in the project had already created around 1,400 jobs during construction and more than 200 hospitality and retail jobs.</p><p>“As we get closer to marking almost three decades of ownership of Castle Towers, QIC continues to invest heavily to redefine the role of a next generation town centre that the local community can continue to enjoy visiting to meet their shopping, dining and entertainment needs,&quot; he said.</p><p>The redevelopment of Castle Towers commenced in March 2018 with further works to be undertaken in stages from early 2020, as part of QIC’s masterplan for the town centre. </p></div></div></div></div></div>

      The start of a new Sydney lifestyle and shopping hub is underway after a car park underwent a $180 million transformation in Castle Hills.

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p>Demolition, tunnelling and new stations are on track on the government&#x27;s $6 billion-plus Cross River Rail project as major contractors pass critical project milestones this year.</p><p>Eleven new worksites will be opened and 1,500 workers employed as the project doubles in size with demolition at Roma Street and Albert Street, tunnelling starting between Woolloongabba to Boggo Road, station upgrades and work starting on new Gold Coast stations.</p><p>There will be three major infrastructure works taken out on the Cross River Rail by the state government and private sector.</p><p>The <a href="https://theurbandeveloper.com/articles/consortium-announced-for-54bn-cross-river-rail">Pulse consortium will deliver</a> the tunnel, stations and development—a partnership led by CIMIC Group companies, Pacific Partnerships, CPB Contractors, and UGL with international partners DIF, BAM and Ghella.</p><p>Unity Alliance will deliver the rail, integration and systems bringing together CPB Contractors, UGL, AECOM and Jacobs, and partners Hassell, RCS Australia, Acmena, Martinus Rail and Wired Overhead Solutions.</p><p>Work has begun on the new European train control system set to be piloted on the Shorncliffe line to be delivered by Hitachi Rail STS.</p><p>Cross River Rail minister Kate Jones said they already had 1,000 workers and seven worksites open around Brisbane.</p><p>“A worksite has now been established at Boggo Road, the existing site at Woolloongabba is already a hive of activity, demolition at Albert Street in the heart of the CBD is well advanced and work at Roma Street is well and truly under way,” she said.</p><p>“Regular rail users may have noticed extensive work has also begun in our rail corridors, particularly near Normanby where the project’s northern tunnel portal will be built.”</p><p>Work is also expected to start at the RNA Showgrounds Exhibition station, at stations from Salisbury through to Fairfield, on the Gold Coast where new stations are being created at Pimpama, Helensvale North and Merrimac and at the project’s Southern tunnel portal, south of Boggo Road.</p><p>This follows a busy year for the project which saw major contractors, established multiple new worksites, revealed the location of three new Gold Coast stations and launched a Precincts Delivery Strategy.</p><p><em>Editor’s note: An earlier version of this story referred to a $20 billion figure for the Cross River Rail. This refers to the estimated gross development value of the five stations. The government has committed $5.4 billion to the project, with an added $1.45 billion in private partnerships. </em></p></div></div></div>

Work doubles for contractors on Cross River Rail

Bass Coast

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Investors would be wise to look to regional towns for new homes according to new research, despite <a href="https://theurbandeveloper.com/articles/fastest-growth-in-decade-for-house-prices">record house price growth</a> in metropolitan areas over the last quarter.</p><p>House prices across Australia grew by more 4 per cent over the last quarter, marking the biggest increase since 2009 according to Corelogic.</p><p>Sydney recorded an increase 6.2 per cent, Melbourne 6.1 per cent, Hobart had a 3.4 per cent, Brisbane 2.4 per cent, Canberra 2.3 percent and Adelaide 1.4 per cent.</p><p>However, regional locations performed significantly better over the last three years than Sydney, Melbourne and Brisbane.</p><p>According to new research from property market research firm Propertyology, the current market could be compared to the growth seen following the 2008 GFC when the RBA made cuts and the federal government gave incentives for new buyers.</p><p>“The strong, and largely across-the-board, rebound in Australian real estate prices from the 2009-10 stimulus is likely to be repeated in 2020,” Propertyology head of research Simon Pressley said.</p><p>“However, the smart decision-makers of today will be looking beyond 2020 and trying to figure out which Australian property markets have the best potential post-stimulus.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/ab8fe798-a552-4e64-bc29-a777ce7e5404.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Orange house prices performed better than Sydney over the past three years.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The researcher said &quot;wannabe investors&quot; who purchased in Sydney, Melbourne or Brisbane three years ago would likely be disappointed in their results with median house prices only increasing by 2.4 per cent, 12.8 per cent and 8.3 per cent respectively over the period.</p><p>“Across all of Australia’s states and territories, there are eight capital cities plus an additional 178 towns and cities which each have a population of 10,000 people or more,” Pressley said.</p><p>“The official best-performed market was Glenorchy (40 per cent), while some other absolute standouts include Bass Coast (37 per cent), Macedon Ranges (35 per cent), Snowy Monaro (34 per cent), Baw Baw (30 per cent) and Geelong (29 per cent).</p><p>“Orange (23 per cent), Launceston (22 per cent) and Burnie (21 per cent) also did very well over the last three years and I think still have plenty of strong miles left in their legs, too.”</p><p>Propertyology also found Byron Bay, Coffs Harbour and Griffith (all 19 per cent), Wangaratta and Mildura (16 per cent), Ballarat, Bathurst, Latrobe, Campaspe, Newcastle, Maitland, Sunshine Coast, Lismore and many more noncapital city locations all performed &quot;significantly&quot; better over the last three years than Sydney, Melbourne and Brisbane.</p></div></div></div></div></div>

Better returns for regional cities as 2020 investors look for new homes.

High density residential site sales on the Gold Coast jumped 238 per cent in 2020 as the rest of the country plunged to a seven-year low according to Knight Frank research.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>High-density residential site sales on the Gold Coast jumped 238 per cent in 2020 as much of the rest of the country plunged to a seven-year low. </p><p>Only the Gold Coast and Perth bucked the trend for residential sites sales, which nationally dropped in value from $5.03 billion to $4 billion, according to Knight Frank Research’s latest report. </p><p>It predicted Australia’s national apartment pipeline would plunge during the next three years with just 86,400 new apartments planned for Sydney, Melbourne, Brisbane, Gold Coast and Perth.</p><p>This was a significant decline of 36.1 per cent from the 135,300 new apartments built during the previous three-year period as recorded in the Australian Residential Development Review 2021. </p><p>Related: <a href="https://www.theurbandeveloper.com/articles/major-development-projects-gold-coast">Top 20 Gold Coast Development Projects</a></p><p><strong>Australian residential development sales</strong></p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Location</th><th>Gold Coast</th><th>Brisbane</th><th>Sydney</th><th>Melbourne</th><th>Perth</th></tr></thead><tbody><tr><th>Total Residential Site Sale Value</th><th>$223.9m</th><th>$161.97m</th><th>$1.977bn</th><th>$878m</th><th>$84.8m</th></tr><tr><th>Share Suitable for High Density</th><th>75%</th><th>31%</th><th>66%</th><th>59%</th><th>100%</th></tr><tr><th>High Density Site Value</th><th>$82,500 per apartment</th><th>$45.800 per apartment</th><th>$184,200 per apartment</th><th>$120,400 per apartment</th><th>$51,400 per apartment</th></tr><tr><th>Apartments Completed 2018-2020</th><th>5,925</th><th>13,925</th><th>67,925</th><th>42,250</th><th>5,275</th></tr><tr><th>Apartment Pipeline 2021-2023</th><th>4,475</th><th>6,400</th><th>36,275</th><th>34,225</th><th>5,025</th></tr><tr><th>Total Residential Vacancy</th><th>0.9%</th><th>1.3%</th><th>3.3%</th><th>5.4%</th><th>0.8%</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: Knight Frank, Australian Residential Development Review 2021</sub></sup></p><p>A drop in offshore investment was the leading cause of the decline with less than $500 million in overseas capital invested in the market, below the $5.25-billion investment high of 2016. </p><p>Knight Frank head of residential Shayne Harris said that in the meantime developers were investing in “lower risk” sites as more land was released in growth corridors. </p><p>“Developers across the country are continuing to shift their focus and risk towards boutique apartment developments and diversifying their portfolios with low-density sites,” Harris said.</p><p>“Although we’re in uncertain times, we can’t underestimate the impact investors will have on the apartment market as they start to return across the country.</p><p>“It’s only time before they are lured back to the new apartment market given the cheap finance, a thinning new supply pipeline and lower residential vacancy rates.”</p><p>Knight Frank’s head of residential research Michelle Ciesielski said there were some winners in the market with the demands of apartment buyers changing. </p><p>“The jump in high-density site sales certainly reflects the spotlight being placed on the Gold Coast by local and interstate developers,” Ciesielski said. </p><p>“This is a trend we anticipate will continue with more owner-occupiers buying Gold Coast apartments, especially from the downsizing cohort.</p><p>“While there has been a reduction in site sales suitable for apartments in Brisbane, this is likely to be temporary with the residential development market earmarked for increasing activity over the coming years given the recent compression in rental vacancy.”</p><p>Vacancy rates on the Gold Coast tightened from 1.8 per cent in 2019 to 0.9 per cent in 2020, which in turn pushed rent values up by 1.2 per cent. </p><p>This trend was even more pronounced in Brisbane where rental prices increased by 3.9 per cent in 2020 as vacancy rates dropped from 2.3 per cent in 2019 to 1.3 per cent in 2020.</p><p></p><p></p></div></div></div></div></div>

High density residential site sales on the Gold Coast jumped 238 per cent in 2020 as the rest of the country plunged to a seven-year low...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>House prices made the biggest jump in a decade, according to Corelogic&#x27;s results for the last quarter.</p><p>The best performing capital city was Sydney with 6.2 per cent growth, followed closely by Melbourne at 6.1 per cent, Hobart had a 3.4 per cent jump, Brisbane 2.4 per cent, Canberra 2.3 per cent, while Adelaide experienced a 1.4 per cent uptick.</p><p>The quarterly growth in national house prices marked the fastest gain since November 2009. </p><p>However, there were decreases in Perth at 0.1 per cent and Darwin 1.4 per cent over the quarter which was reflected in a bigger drop for these areas over 2019.</p><p>Corelogic head of research Tim Lawless said the big jump in some areas was caused by a drop in home values in the first half of the year and a seven per cent rebound over the second half of the year.  </p><p>“The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election,” Lawless said.</p><p>“Lower advertised stock levels persisted providing additional upwards pressure on prices amidst rising buyer activity.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th></th><th>Monthly change (%)</th><th>Quarterly change (%)</th><th>Annual change (%) </th><th>Median value</th></tr></thead><tbody><tr><th>Sydney</th><th>1.7%</th><th>6.2%</th><th>5.3%</th><th>$840,072</th></tr><tr><th>Melbourne</th><th>1.4%</th><th>6.1%</th><th>5.3%</th><th>$666,883</th></tr><tr><th>Brisbane</th><th>0.7%</th><th>2.4%</th><th>0.3%</th><th>$497,491</th></tr><tr><th>Adelaide</th><th>0.5%</th><th>1.4%</th><th>-0.2%</th><th>$433,845</th></tr><tr><th>Perth</th><th>0.0%</th><th>-0.1%</th><th>-6.8%</th><th>$437,080</th></tr><tr><th>Hobart</th><th>0.2%</th><th>3.4%</th><th>3.9%</th><th>$474,186</th></tr><tr><th>Darwin</th><th>-0.5%</th><th>-1.4%</th><th>-9.7%</th><th>$388,018</th></tr><tr><th>Canberra</th><th>0.1%</th><th>2.3%</th><th>3.1%</th><th>$611,841</th></tr><tr><th>National</th><th>1.1%</th><th>4.0%</th><th>2.3%</th><th>$537,506</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Despite the quarterly results, property values across most regions of Australia were still below their previous record highs with the exception of Hobart, Canberra and Tasmania which were already tracking at record highs. </p><p>If this rate continues the national housing market should record a nominal recovery in March as dwelling values push higher to new record highs.</p><p>The strong finish to 2019 is expected to be the start of larger gains in prices with anticipated listings, sales and RBA cuts to strengthen the market in coming months. </p><p>Capital Economics economist Marcel Thieliant said sales volumes were much stronger in recent months than the preliminary data suggested. </p><p>“Our sales-to-new listings ratio now points to house prices rising by around 10 per cent per annum. The auction clearance rate, which has hovered around 70 per cent in recent weeks, tells a similar story,” he said.</p><p>Thieliant added if the RBA cut rates again, as they anticipated, house price growth should slow from 8 per cent this year to 5 per cent next year as housing affordability would be the lowest since the GFC by mid-2021.</p></div></div></div></div></div>

Drop in first half of year leads to the fastest growth in house prices in a decade

Event Hospitality and Entertainment $255 million plans for a ultra-slim Sydney CBD tower were approved.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Event Hospitality will progress $255 million plans for a ultra-slim Sydney CBD tower following a harrowing financial year including multiple natural disasters and the coronavirus pandemic.</p><p>The ASX-listed hospitality giant lodged the development application  in July 2019 which was approved with conditions in May 2020 by the Central Sydney Planning Committee. </p><p>The 43 storey hotel-residential tower <a href="https://theurbandeveloper.com/articles/event-cinemas-lodges-plans-for-george-street-skyscraper-">plans </a>for George Street make up a fraction of the hospitality giant’s $2 billion property portfolio across Australia, New Zealand and Germany.</p><p>Company profit for the financial year was down 78.5 per cent to $34 million after “mandated restrictions almost entirely wiped out revenue” between March and June, and stocks dropped following the results announcement.</p><p>Event chief executive Jane Hastings said until February the group had the second-highest earnings result in its history despite the bushfires. </p><p>“The year was impacted by the most unprecedented external factors experienced in the group’s 110-year history, including bushfires, floods and Covid-19 government-mandated restrictions,” Hastings said.</p><p>“The final four months of the year was defined by the impact of Covid-19 government-mandated restrictions which immediately impacted revenue, down $262 million for the four-month period.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/046fc471-7753-43b1-a927-7691439d21df.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Event owns an office building, cinema complex, Dudley House and surrounding buildings on the proposed tower site and along George Street in Sydney CBD.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The company embarked on $140 million in cost reductions including government subsidies and rent relief, and there was no final dividend given in June.</p><p>Looking forward, Event is waiting for the government to drop restrictions impacting cinemas as well as hotel trading, which has operated with lower average room rates just inside the profitable range at 66.1 per cent occupancy.</p><p>Meanwhile, increased insurance premiums worth $2 million for the office sector and ongoing leasing liabilities will negatively affect this outlook.</p><p>However, Thredbo ski resort, on which Event has a 956.9-hectare leasehold (until 2057), is expected to boost the start of the next financial year’s results.</p><p>Despite bushfires and the pandemic affecting summer and winter seasons in New South Wales, the asset recorded its third-highest result in history at $20.9 million, down 16.3 per cent on the year before. </p><p>In contrast, Victoria’s ongoing battle with Covid-19 infections and increased restrictions led to NYSE-listed Vail Resorts’ <a href="https://theurbandeveloper.com/articles/vail-resorts-closes-victorian-alpine-ski-mt-hotham">closure </a>of its Mt Hotham and Falls Creek operations in July.</p></div></div></div></div></div>

   Event Hospitality and Entertainment will sit on the approved $255 million plans for a ultra-slim Sydney CBD tower...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The number of auctions shot up 40 per cent to 26,923 over the December quarter, recording a national clearance rate of 70.3 per cent. </p><p>This marked an increase from 16,730 at 69.9 per cent in the previous quarter and a massive improvement on the December 2018 quarter when the clearance rate was 43.6 per cent, according to the Corelogic quarterly auction update.</p><p>Melbourne recorded the majority of auctions with 12,870 at an average clearance of 72.8 per cent. The best performing suburb was Balaclava with a 100 per cent clearance rate from 22 actions while Reservoir recorded 221 auctions in total.</p><p>Sydney had 9,546 auctions at 74.9 per cent with perfect clearance rates from three suburbs—Camperdown 26, Kingsford 27 and Panania 22—and the highest number of auctions was at Mosman reaching 141.</p><p>Brisbane had 1,615 auctions clearing at 45 per cent with the best performing suburb at Paddington 66.7 per cent from 21 auctions and Sunnybank Hills had the most auctions at 35.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>December quarter auction results</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>City</th><th>Most Auctions</th><th>Total Auctions</th><th>Average Clearance Rate</th></tr></thead><tbody><tr><th>Melbourne</th><th>Reservoir (221)</th><th>12,870</th><th>72.8%</th></tr><tr><th>Sydney</th><th>Mosman (141)</th><th>9,546</th><th>74.9%</th></tr><tr><th>Brisbane</th><th>Sunnybank Hills (35)</th><th>1,615</th><th>45.0%</th></tr><tr><th>Adelaide</th><th>Prospect (28)</th><th>1,385</th><th>57.4%</th></tr><tr><th>Canberra</th><th>Kambah (35)</th><th>937</th><th>68.0%</th></tr><tr><th>Perth</th><th>Dianella (21)</th><th>517</th><th>39.5%</th></tr><tr><th>Tasmania</th><th>N/A</th><th>53</th><th>62.2%</th></tr><tr><th>Combined</th><th></th><th>26,923</th><th>70.3%</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p></p><p>Corelogic head of residential research Eliza Owen said these results reflected the <a href="https://theurbandeveloper.com/articles/fastest-growth-in-decade-for-house-prices">quarterly house price jump</a>.</p><p>“As prices in Sydney and Melbourne rose 6.2 per cent and 6.1 per cent respectively in the December quarter, a corresponding increase in auction market activity is expected,” she said.</p><p>“Vendors have been responsive to higher prices, with auction volumes up by 4.0 per cent year on year.”</p><p>Auction volumes increased across all 15 Sydney sub-regions over the December quarter with North Sydney and Hornsby hosting the most auctions at 1,450 and 12 of those regions recorded a clearance rate above 65.0 per cent.</p><p>The highest was at the inner west (80.8 per cent), followed by City and inner south (80.4 per cent) while the outer west and Blue Mountains region returned the lowest clearance rate (41.4 per cent).</p><p>Eight of the nine Melbourne sub-regions held more than 1000 auctions each, the highest recorded in the Inner region 2,223, followed by Inner South 1,946.</p><p>The highest clearance rate went to the inner east 76.4 per cent down from 78.7 per cent in the previous quarter.</p></div></div></div></div></div>

Auction volumes jumped significantly to 26,923 in the December quarter with a clearance rate at 70.3 per cent.

Capturing a portion of the $140 billion land and property value uplift around proposed future high speed rail stations could help the project essentially “pay for itself” according to UNSW

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Capturing a portion of the $140-billion land and property value uplift around proposed future high speed rail stations could help the project essentially pay for itself.</p><p></p><p>A study by the University of New South Wales investigated how the generation of a high-speed passenger rail service could create thriving liveable cities and funding for infrastructure along its route.</p><p></p><p>Progress has been made on an inland rail route between Brisbane and Melbourne, mostly for the transportation of goods, which is expected to begin service in 2027, however, the high-speed rail plans, proposed in 2013, have stalled.</p><p>The dual-line that would pass through Sydney and Canberra would cost more than $114 billion and could be operational by 2058, however, changes to polices could bring this forward.</p><p></p><p>The City Futures Research Centre study showed “value capture” policies, including betterment levies, developer charges or taxes on property transactions based on property uplift could fund its construction.</p><p></p><p>These styles of policies partially funded the Sydney Harbour Bridge’s construction as well as the more recent Crossrial project in London.</p><p></p><p>Across Australia, land and properties around new rail stations have experienced significant increases in value, prompting development in the surrounding area.</p><p></p><p><strong>Potential property value uplift near high-speed rail stations</strong></p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Station</th><th>Existing value per hectare of rural land</th><th>Future value per hectare (sales minus development cost)</th><th>Value uplift per hectare</th><th>Value uplift per dwelling</th></tr></thead><tbody><tr><th>Gold Coast</th><th>$300,000</th><th>$3,284,994</th><th>$2,984,994 </th><th>$218,502 </th></tr><tr><th>Casino</th><th>$38,818 </th><th>$769,016 </th><th>$730,197</th><th>$53,450 </th></tr><tr><th>Grafton</th><th>$37,321 </th><th>$153,685</th><th>$116,364 </th><th>$8,518</th></tr><tr><th>Coffs Harbour</th><th>$103,855</th><th>$4,597,916 </th><th>$4,494,061</th><th>$328,965 </th></tr><tr><th>Port Macquarie</th><th>$47,469 </th><th>$4,505,008</th><th>$4,457,539 </th><th>$326,292 </th></tr><tr><th>Taree</th><th>$58,824</th><th>$5,206,433</th><th>$5,147,610 </th><th>$376,805</th></tr><tr><th>Newcastle</th><th>$231,827</th><th>$6,785,678</th><th>$6,553,851 </th><th>$479,742</th></tr><tr><th>Central Coast</th><th>$129,938</th><th>$7,993,291</th><th>$7,863,353 </th><th>$575,597</th></tr><tr><th>Southern Highlands</th><th>$298,359</th><th>$7,946,837</th><th>$7,648,478 </th><th>$559,869</th></tr><tr><th>Wagga Wagga</th><th>$56,529</th><th>$4,690,824</th><th>$4,634,295</th><th>$339,230</th></tr><tr><th>Albury Wodonga</th><th>$65,063 </th><th>$880,165</th><th>$815,102 </th><th>$59,665</th></tr><tr><th>Shepparton</th><th>$65,000</th><th>$2,157,033</th><th>$2,092,033</th><th>$153,137 </th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: UNSW City Futures Research Centre, High Speed Rail Value Uplift, Preliminary Investigation Report</sub></sup></p><p>UNSW professor Christopher Pettit said a substantial proportion of this value uplift could pay for a huge amount of the high-speed rail.</p><p></p><p>“You would be looking at tens of billions of dollars just from the residential value uplift alone, without even factoring in commercial, industrial and other beneficiaries,” Pettit said.</p><p></p><p>“We expect the values to be a conservative approach to estimation and that the total value uplift could actually be higher.</p><p></p><p>“This is while still factoring in a profit for the developers after all the external costs, including stamp duty, legal fees and building costs.</p><p>“Some of that value capture could also be used to invest into housing affordability schemes. It doesn’t necessarily all need to go towards the infrastructure.</p><p></p><p>“It’s about ensuring that growth and benefits can be fairly and equitably distributed with maximum value.”</p><p>Pettit conducted the research with postgraduate researchers Will Thackway and Reg Wade.</p><p></p><p>The aim was to provide data for policy- and decision-makers to explore growth scenarios and make informed decisions based on big data and analytics.</p><p></p><p></p><p>Property and infrastructure group advisor James Abbott endorsed the creation of such a rail line, which would have an outsized economic and social impact on regional cities.</p><p>“A nation-building infrastructure project like this will go a long way to alleviating supply issues while supporting regional economic development and improved connectivity,” the managing director of Abbott Advisory said.</p><p></p><p></p><p></p></div></div></div></div></div>

A high speed rail for passengers from Brisbane to Melbourne could create thriving liveable cities along its route and $140bn in property value uplift