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Vol 11. No.47

Economic Overview

	Current	+/-	Movement
$AUS/$US	90.92	-0.16
Cash Rate	4.00	Steady
90 Day Bill	4.29	+0.06
10 Year Bond	5.480	-0.025
ASX 200	4820.1	+12.2

NSW Property

Metro on Pitt Hotel listed for sale (AFR Pg.54)

• The 4 star, 115-room Metro on Pitt Hotel in the Sydney CBD has been listed for sale by the Hudson Hotel Group.
• The hotel reportedly had occupancy levels of around 80% and is available with vacant possession.
• Transmetro Corporation is also available as the manager.

Queensland Property

Queensland first home owners grant changes (AFR Pg.52)

• Yesterday Queensland Treasurer Andrew Fraser introduced legislation into parliament capping the state government’s $7,000 first home owner’s grant to dwellings worth up to $750,000 from March 31.
• The current cap of $1 million came into effect from January 1.

Queensland Land Value bill update (AFR Pg.52)

• Yesterday amendments to the Queensland Valuation Act were introduced into parliament.
• The amendment will no longer be retrospective to 2002.
• The unimproved land value will be site specific and will not take into account leases and goodwill, as was originally proposed.
• Concerns were raised over the impact the proposed amendments would have on higher land tax rates and a subsequent decline in asset values.
• A full review of Queensland’s valuation system will be completed in time for the 2011 round of valuations. The current bill will apply to the 2010 valuations.

Victorian Property

Myer Docklands office  building half share sold (AFR Pg.52)

• European fund SEB Asset Management has finalised the transaction to acquire a half interest in the Myer National Support Office building at 800 Collins Street within Melbourne’s Docklands for approximately $76.87 million reflecting a 7.75% yield on a forecast fully let net income.
• The half share was sold by Lend Lease’s wholesale Australian Prime Property Fund Commercial.
• Practical completion of the building is expected next month with Myer having already commenced fit out works.
• Myer will occupy the entire office component of 30,000m² over 10 floors.

National Property

Development industry update (AFR Pg.55)

• The development industry accounts for 7.3% of GDP in the Australian economy according to a report by the Urban Development Institute of Australia.
• The sector accounts for 9.1% of the total workforce and a further 7% in the broader economy with more than half of all private investment undertaken by the property development industry.