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Vol 12. No.189

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	99.71	+1.4
Cash Rate	4.75	Steady
90 Day Bill	4.71	+0.17
10 Year Bond	4.330	+0.025
ASX 200	4227.6	+26.6

New South Wales

• RREEF is in due diligence to acquire the Exchange Centre located at 20 Bridge Street, Sydney for approximately $190 million from Korda Mentha, receivers for Record Realty Trust.
• The property was previously acquired in 2006 for $235.7 million and currently has two vacant floors.

• The NSW Government will introduce legislation to amend the Home Building Act 1989 to increase the threshold at which warranty insurance is required from $12,000 to $20,000 and to increase the threshold at which written contracts for residential building work is required from $1,000 to $5,000.

• Investec has unveiled its $120 million redevelopment of the Hotel Bondi site on Campbell Parade, Bondi which comprises 40 luxury apartments and a café and retail precinct.

Victoria

• MAB Corporation and Gibson Property Corporation will develop the initial stages of the $1 billion Merrifield master-planned community which has a capacity for approximately 4,000 residential lots.
• Lend Lease was originally expected to partake in the development but could not finalise an agreement with MAB Corporation.
• It is expected the first residential stage which spans 50 hectares will commence in late 2012.
• The Merrifield project aims to provide housing and employment for 30,000 people with capacity for a university and commercial component.

• Grocon has sold over 50% of apartments in the Swanston Square Tower development in Melbourne CBD following a three month off market campaign.
• Prices for the units range from $366,500 for one bedroom apartments and $446,000 for two bedroom apartments.

Queensland

• It is expected that the Wintergarden retail complex will achieve a 100% occupancy rate following the $100 million redevelopment of the centre which is due for completion in six months.

• The proposed redevelopment of Brisbane’s Eagle Farm and Doomden racecourses will go on public display on October 31.
• The plans include the consolidation of Racecourse Road Centre which will comprise a commercial and retail precinct as well as the accommodation for 4,500 residents in a residential component.
• It is expected the redevelopment will take approximately 20 years to complete.

National Property Market

• Research indicates housing prices will increase by 19 %, 16% and 6% for Sydney, Brisbane and Melbourne respectively between 2012 and 2014.

• Research indicates dwelling construction by Australia’s top 100 largest home builders has declined by 13% in the past financial year.
• 156,000 dwellings were completed last year, well below the 10 year average.