Call us today

Vol 11. No.120

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	87.34	-0.14
Cash Rate	4.50	Steady
90 Day Bill	4.97	+0.02
10 Year Bond	5.230	+0.025
ASX 200	4384.5	-28.5

NSW Property

Byron Bay development update (AFR Pg.51)

• Following 2 years of negotiations Vincent Rae and an international partner have won approval from the Byron Bay Council to add 41 new accommodation suites, an underground car park , a new swimming pool, courtyard, media room and day spa to the Sunseeker Motel which is on the outskirts of Byron Bay. The existing 6 cabins on the 6,400m² property will be demolished.
• Council has recommended more than 100 tracts of rural land be rezoned for residential use at Bangalow.
• Council has recommended the residential development of several common title properties near Main Arm.
• A $25 million development comprising 52 x 2 bedroom units at Suffolk Park has been approved.

Ark update (AFR Pg.53)

• It is believed Investa Property Group is planning on selling a 50% share in Ark at 40 Mount Street, North Sydney whilst retaining the remaining stake for one of their unlisted funds.
• The 28,500m² building has 1,100m² floor plates and is close to being 85% leased following pre-commitments from Vodafone Hutchinson Australia and Coca-Cola Amatil.

Crowne Plaza Hunter Valley on the market (AFR Pg.51)

• Receivers have placed the Crowne Plaza Hunter Valley on the market.
• The hotel is on a 105 ha site at Lovedale and comprises 150 hotel rooms, 169 strata titled villas, 8 conference rooms, a business centre, spa, gym, tennis courts and swimming pool.
• The hotel is reported to be one of the best performing Crowne Plaza hotels in the Asia-Pacific region and has been profitable since opening in 2006.

National Property

Residential market update (AFR Pgs.54-55)

• The Housing Industry Association (HIA) has forecast national housings starts to increase by 20% to 165,940 in calendar 2010, albeit off a low base, before declining by 3% in 2011.
• It is estimated Australia's underlying demand is for 190,000 dwellings in 2010.
• The housing shortage is most apparent in and around metropolitan Sydney, in particular the Bankstown LGA, and south east Queensland including the Brisbane and Beaudesert municipalities.
• In the first half of 2009/10 dwelling completions in NSW totalled 12,900, 9% lower than the previous corresponding period.
• Dwelling construction in NSW is forecast to be 37,500 in 2010/11, a 21% increase over the year.
• In 2009 Brisbane experienced a housing shortage of 6,474 dwellings, whilst Beaudesert was short 2,227 dwellings.
• In the 3 months to April capital values in Brisbane declined by 0.5%.
• The HIA has forecast an 8% reduction to 48,800 in the number of dwelling commencements in Victoria in 2011/12 .

Managed Investment Trusts tax changes (AFR Pg.53)

• Last week a bill governing the tax treatment of Managed Investment Trusts (MITs) was passed through parliament. The changes are due to come into effect on July 1.
• Under the changes the definition of an MIT will comprise a broader range of investment vehicles, including unregistered funds, foreign government pension plans, sovereign wealth funds, some government vehicles and overseas versions of an MIT.
• The vehicles will be eligible for withholding tax and capital gains concessions.
• The concessional withholding tax will decline to 7.5%.
• The legislation will only require Australian assets to be managed locally and foreign assets can be managed offshore.