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Vol 11. No.41

Economic Overview

	Current	+/-	Movement
$AUS/$US	89.76	+0.72
Cash Rate	3.75	Steady
90 Day Bill	4.18	+0.02
10 Year Bond	5.440	+0.010
ASX 200	4686.5	+48.8

NSW Property

Upper North Shore development update (AFR Pg.54)

• An oversupply of unit developments is being blamed for the poor sales rate throughout Sydney’s Upper North Shore.
• Large developers have withdrawn their interest from the area. Stockland sold a site to Meriton for a 28% discount on the original purchase price.
• An overseas developer has purchased a site in Lindfield for $6.5 million.
• The Ralan Group has purchased a 4,600m² ($1,630/m²) site in Warrawee for $7.5 million. The site now has approval for 68 units ($110,294/unit) and 85% of the units have been pre-sold. They also purchased a $13 million site in Killara.
• A development site on Culworth Avenue and Bruce Street in Killara suffered low pre-sales and the developer has now been placed in liquidation.
• Construction has been halted on a Cecil Street site in Gordon. The site may be on sold or a JV partner may be sought.
• An independent audit of the draft Ku-ring-gai Town Centres Plan indicates only 5,000 dwellings would be required over the next 20 years. Since 2005, 5,000 dwellings have already been approved.
• NSW Premier Kristina Keneally has said no more than 10,000 dwellings will be constructed by 2031.
• A survey conducted the Mayor of Ku-ring-gai comprising 3,900 locals found only 7% wished to live in a unit or a multi-storey development.

Pavilions, Roseville update (AFR Pg.55)

• Kyko Group has completed their $30 million Pavilions project at Nola Road, Roseville.
• The 32 units start at 110m² ($7,091/m²) for 2 bedrooms and 270m² ($5,907/m²) for a 3 bedroom penthouse.
• Prices range from $780,000 to $1.595 million.
• The developer held the units off the market until completion.

Birkenhead Point shopping centre and marina on the market (AFR Pg.52)

• Jen Retail has listed the Birkenhead shopping centre and marina in Drummoyne.
• The sale price is estimated at more than $200 million ($6,250/m²).
• The anchor tenants include Coles, David Jones warehouse, Spotlight and Anaconda.  There are 5 mini majors and 120 specialty shops.
• The centre has been renovated and a second stage is to be completed by September.
• The centre has transitioned from a discount outlet to a more traditional prime, retail and outlet centre.
• The 32,000m² centre has 1,395 car spaces and sits on a 3.7 ha site.
• The projected fully leased net income is approximately $15.5 million.
• The 187-berth marina, the largest privately held facility on Sydney Harbour, may also be upgraded.
• A new 25 year lease with NSW Maritime has been negotiated and will allow for an additional 8 berths and a waterfront petrol station.

Queensland Property

Former Seabrae Hotel site update (AFR Pg.55)

• Kyko Group are currently constructing a $150 million mixed-use development Mon Komo comprising 184 units on the former Seabrae Hotel site at Redcliffe in Brisbane.
• Sales totalled $15 million in January.

Victoria Property

Melbourne land release update (AFR Pg.51)

• The endangered Golden Sun Moth has halted the release of land in Truganina, south west of Melbourne’s CBD.
• Stockland’s 1,300 lot, 124 ha development is within the land release. The site was purchased for $56.5 million.
• Under new guidelines if 2 areas of suitable habitation are recognised within 200 metres of one another, development is not permitted in between.
• New procedures for native vegetation clearance could potentially impact 60% of land within the Urban Growth Boundary.

National Property

Residential property update (AFR Pg.51)

• According to the Housing Industry Association sales of new homes by large residential builders rose by 9.5% in January.
• Sales of private sector detached dwellings increased by 10.1%, the first significant rise since August 2009.
• Multi-unit sales rose 4.1% in January following on from the 14.5% increase in December 2009.
• Victoria showed the strongest growth with detached new home sales rising by 17.1%. Queensland and NSW recorded growth of 6.3% and 3.1% respectively.