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Vol 11. No.227

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	96.43	-0.73
Cash Rate	4.75	Steady
90 Day Bill	5.06	+0.01
10 Year Bond	5.495	-0.045
ASX 200	4598.3	+4.9

New South Wales Property

• Development approvals and pending applications in Sydney’s CBD have increased in the past three months as funds start to flow back to the investment market.
• The City of Sydney says the value of development applications (DAs) determined or approved is $784 million, compared with $367 million for the same time a year ago.
• The rise in the September quarter is significant because the past year’s figures have been dominated by the different stages of the $1.2 billion Westfield Sydney in Pitt Street Mall, there has also been the redevelopment of the Mid City Centre shopping arcade that sits under the new office tower at 420 George Street.
• The loosening of the credit system and demand for new office and retail space has reignited the city’s list of planned projects. These include significant projects such as the Commonwealth Property Office Fund’s $330 million redevelopment and upgrade of 120 Pitt Street.
• Other DAs approved in the quarter included the internal refurbishment of 169-183 Liverpool Street valued at $42 million and the construction of a 16-storey residential building at 141-143 Elizabeth Street worth $19 million.
• The value of DAs lodged in the September quarter was $499 million, up from $364 million in the previous corresponding period. There were 619 lodged, compared with 605 a year ago.
• A stage-one DA has been lodged for 19-31 Pitt Street, which encompasses a new building facade and a 32-storey mixed-use development with five levels of basement parking. The project is valued at $87 million.
• At 38-44 York Street, an application has been lodged to retain heritage-listed Spiden House and Carlton House and for the construction of a 20-storey tower for retail and office use, valued at $85 million.

• Property developer and construction company Parkveiw has commenced with the demolition of the landmark Sunbeam factory in Campsie to make way for a $330 million mixed-use development on the site, called Clemton Park Village.
• The village at Charlotte Street in Campsie will feature an 8,985 square metre commercial and retail precinct, as well as 700 apartments and 4,850 square metres of open space including road and footpaths.
• The village will also feature 100 senior living units, as well as affordable housing for young people seeking to enter the increasingly tight inner-west property market.

• C. Everingham has leased an 800 square metre industrial site at 296 Botany Road in Alexandria from Gazcorp.
• Lease term is for two years at a rate of $100/square metre gross.

• Fashionland has leased a 287 square metre office/warehouse at 27/28 Barcoo Street in Chatswood from Sana Investments.
• The lease term is five-years plus a five-year option at a rate of $192/square metre gross.

• Rexel Group Australia has leased a 467.7 square metre office at Unit 9, North RydeLink Business Park, 277-283 Lane Cove Road from Pirasta.
• The lease term is five years at a rate of $270/square metre net.

• An Asian investor has bought a retail property located at 779 Military Road in Mosman for $3.9 million.
• The property sold at auction and includes a 243 square metre building that is leased to St George Bank on a five-year term.
• The sale represents a 5.9% yield and a building rate of $16,049 per square metre.

Queensland Property

• The $250 million luxury development Firstlight Noosa has been canned after discussions to renegotiate the $120 million sale price over the project’s designated beachfront site on Hastings Street fell through.
• Joint venture partners Blue Sky Capital, Firstlight International Australia and Consolidated Properties postponed settlement of the site in an attempt to lower the sales price after making the initial offer at the top of the market.
• The 4,722 square metre site has been owned for the past 30 years by two families, including the Carter Group from Melbourne.

National Property

• The spring home-selling season came to a close on the weekend with too many properties for sale and too few buyers.
• The auction clearance rates have fallen to levels last seen in the depths of the financial crisis, with interest rates much higher than last year, higher hosue prices and with a late surge in the number of houses for sale.
• In Sydney, more than 770 homes were listed for auction compared with less than 500 a year ago. Only 53 per cent sold on the day, well down on last year’s 68 per cent.
• In Melbourne, where more than 1,000 properties went to auction, the clearance rate was just over 60 per cent, well below the success rate of last year’s boom.
• Across the county, the total number of properties advertised for sale is 18.8 per cent higher.
• Reserve Bank governor Glenn Stevens told a parliamentary committee on Friday that it was not unreasonable for the market to expect some more interest rates in the middle of next year and maybe a little bit more after that.
• So far the rise in interest rates has halted 18 months of strong price growth around the country and put prices into reverse in cities like Brisbane and Perth.