National

National 

Offshore Funds Cash up For Australian Farming Assets

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INVESTORS from the United Kingdom are planning a $400 million fund to invest in cotton and wheat properties in eastern Australia.

To be known as Southern Agricultural Resources, and with Derek Shaw as a non executive director, the fund has reportedly identified for purchase 24 properties covering over 100,000 hectares in New South Wales and Queensland.

The fund has “been quietly shuffled around investment circles in the UK and USA” according to the AFR.

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National 

Abigroup Wins Department of Defence Contract

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LEND Lease arm Abigroup has won a major government contract.

Details of a media statement released today is below:

Abigroup has won a national Defence contract to prepare RAAF airbases around Australia to receive the air force’s next generation of fighter jets.

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National 

NIMBYs Might Win Fight Against Major Brunswick Proposal, Melbourne

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THE Moreland City Council and developers are battling against the clock to get a contentious Brunswick project out of the ground before mid-2012, when the permit expires, and resident concerns regarding the proposal must then be heard.

The 284 – 294 Albert Street block was the subject of a dispute last June when Brisbane-based owner Citimark proposed a $100 million apartment compound with three towers rising between 10 and 14-levels (impression, right).

Citimark relied on a development overlay introduced in 1994 and specifically for the construction of a supermarket, next door, to bypass third-party appeal rights for its major proposal.

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National 

Move over Simcity, new internet-based property game arrives

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REAL estate hobbyists will be able to play the part of a property entrepreneur, as part of a new internet-based computer game set to hit the market soon.

Property Mogul will allow players to acquire, sell and manage properties to build a portfolio. Players start with $1 million, and can utilize real estate agent help to advice on game based purchasers. Agents will be represented with an online avatar.

“Property Mogul is an entertaining and interactive game where players buy, sell and manage real estate, allowing them to apply real life principles to achieve virtual property tycoon status,” said Century 21 Australia chairman and owner Charles Tarbey. The agency has developed the game with Engaging Communications.

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National 

Google Updates its Australian Street View Images

ONLINE real estate voyeurs may notice Australia’s capital cities looking greener, cleaner and generally more attractive.

After some 18 months touring roads in cars with roof-mounted cameras, and then blurring the scenes it recorded for privacy, internet-based business Google this week replaced much of the Australian imagery it uses for its Maps and Street View technologies (a UK Google Street image capturing a drunk man, pictured, right).

Google’s much anticipated upgrade – the first major improvement to the Street View service introduced here in August 2008 – affects capital cities, coast and country towns.

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National 

Land Sales Plummeting: HIA, RP Data

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LAND sales have plummeted over 40 per cent, nationally, according to new research issued by the Housing Industry Association.

The group expects the residential construction sector to “remain in the doldrums” until at least December. It describes 2011 as the worst stretch for land sales in about a decade.

A joint report by RP Data and HIA, and reported in the AFR, found the number of residential land sales had dropped for the sixth consecutive quarter in March 2011.

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National 

Ritziest Suburbs Fall Hardest Since GFC Peak: RP Data-Rismark

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AFTER what has been a largely bleak economic backdrop, the country’s most affordable suburbs are performing better than its ritziest.

According to research group RP Data-Rismark, exclusive suburbs including Mosman Park in Perth and Hunters Hill in Sydney (pictured, right) have reported drastic median price drops of more than 30 per cent since “the peak”, which it deems to be August 2008 (about six months after when many agents say the downturn started in the large Sydney and Melbourne markets).

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National 

Coalition Leads Investigation Into Recent Offshore Farm Investment

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TONY Abbott is leading an investigation into foreign ownership of Australian property particularly farms), after a wave of complaints from agents and farmers that the current rules for offshore investors is resulting in much of the country being sold unbeknownst to the Foreign Investment Review Board.

The federal coalition announced the decision on Thursday (June 20) after calls from the Liberals, Nationals and the Greens for new rules to curb farm purchasers by offshore investors.

The Australian newspaper has recently reported a swag of foreign investors quietly snapping up major Australian properties. Buyers include China’s largest coal producer Shenhua and the Qatar  government.

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National 

Occupancy Levels Dip Across Most Australian States: ABS

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NATURAL disasters in key markets, a strong $A encouraging Australians to travel overseas, and prospective visitors seeking cheaper destinations, have contributed to a slowdown in the country’s tourist accommodation sector.

According to new research issued by the Australian Bureau of Statistics, occupancy in the hotel, motel and serviced apartment sector has dropped in many states, with the lowest rate (51.8 per cent) reported in the Northern Territory.

Tasmania performed best with an occupancy rate of 72.5 per cent in the March quarter. It was followed by the ACT (70.4 per cent) and NSW (67.8 per cent).

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National 

Stockland Pays $22 Million For Three Retirement Villages

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STOCKLAND has paid $22 million for three retirement villages.

The complexes were offloaded by Retirement Villages Group (RVG)), a struggling unlisted retirement fund run by the FKP Property Group and Macquarie Bank.

The portfolio acquisition adds 376 to the number of independent units offered by Stockland. Combined with serviced apartments, it now manages a total of 7403 dwellings.

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National 

Major Industrial Leases Signed: Perth, Sydney, Melbourne

THREE major industrial deals have been signed in major Australian cities.

In Perth, K-Craft Builders has agreed to lease 1800 square metres of space previously leased to Alloy Haulage, at 36 Banksia Street in Welshpool. The lease was struck at a gross face rent (pre incentives) of about $93 per square metre.

K-Craft has been headquartered at Welshpool for 30 years, and is expanding. Colliers International brokered the deal.

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National 

Record Number of New Zealanders Move to Australia in May: Statistics NZ

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A RECORD number of New Zealanders are moving to Australia.

According to Statistics New Zealand, 3300 New Zealanders moved to Australia in May – and that figure is net (meaning it cancels out those who are relocating the other way).

The Christchurch earthquakes and aftershocks, as well as a weak economy, is driving the trend. Christchurch is New Zealand’s second largest city and did have a population of 300,000.

 

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National 

Results of Renters Survey Suggests More Flexibility Required

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RENTERS want landlords to pay them greater respect, and they want to be able to customise their homes, according to a recent survey by online group rent.com.au.

The survey also rated as top renter concerns: the ability to own a pet, hang artwork and photos, work on gardens, or enjoy better quality kitchens. Renters also called for home-inspection times that are outside of business hours, and for more time to inspect homes, so as to “get a feel”.

The survey, reported in various press, does not disclose the number of survey respondents. However the issues have presented for decades to landlords.

Interestingly the survey raised an issue of advertised rents often differing from prices given during inspections.

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National 

Despite Warnings, Offshore Investors Continue to Buy Australian Agricultural Land

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DESPITE warnings from Queensland independent Bob Katter, overseas investors are continuing to snap up Australian agriculture land.

This time, the Swedish National Pension Fund is teaming with US institutional investor TIAA-CREF, making a commitment to invest more in Australia.

Through its Westchester Group, TIAA-CREF already controls 180,000 hectares of cropping country. The “TIAA” refers to the Teachers Insurance and Annuity Association of America, which took an 85 per cent controlling interest in Westchester Group late last year.

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National 

Offshore Developers Leasing Australian Offices

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RECRUITMENT firms say foreign developers that have been snapping up Australian assets are actively in the office market for lease.

Groups looking to establish or expand Australian operations include Asian broker and fund manager CLSA, global sovereign funds such as the Canada Pension Plan Investment Board, Government of Singapore Corporation and South Korea’s Investment Corporation.

LaSalle Investment Management and the US-based pramerica Real Estate Investors are also looking for space, according to the AFR.

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National 

Qatari Government Buys More Rural Australian Property

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HASSAD – the agricultural arm of the Qatari government – is in negotiations to buy five properties in western Victoria, in a deal reportedly worth $45 million.

The portfolio will bring the value of Australian assets purchased by the overseas group in the past twelve months to over $100 million.

Hassad is said to be considering purchasing another major property in NSW from one of the Victorian vendors.

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National 

April Building Approvals Rise in Parts, Fall in Parts, Generally Steady Overall

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THE Australian Bureau of Statistics today released official building approval numbers.

They show the number of dwellings approved nationally fell by 1.3 per cent in April, after rising 8.6 per cent in March (seasonally adjusted).

Victoria held about steady, while New South Wales, Western Australia and Tasmania recorded major drops. By comparison, South Australia and Queensland reported notable rises.

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National 

PCA Questions New Australian Population Strategy

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A CONTROVERSIAL new population strategy – which sets no population target at all – has concerned peak property bodies.

The Gillard government’s first population strategy, Sustainable Australia, Sustainable Communities, is “political in nature’ according to the Property Council of Australia chief executive Peter Verwer, who added it contained “little more than motherhood statements, previously announced government initiatives and ongoing government programs.”

“This is not a detailed plan for managing population growth and to describe it as a policy or a strategy would be stretching credibility,” Mr Verwer was quoted as saying in The Australian. “We need to grow our population, which needs taxation revenue to fund vital services,” he added.

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National 

Australian Residential Rental Vacancies on the up as Supply of Stock Surges

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RENTAL vacancy levels increased last month according to SQM Research.

For the month, there were 6135 more residences listed for rent, bringing the total to 47,787 nationally. Last April the figure was around 37,000.

Melbourne had the highest rental vacancy rate at 2.6 per cent, according to SQM, while Canberra, the nation’s capital, had the lowest amount of rental stock: 0.6 per cent.

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National 

ASIC Orders Banks to Relax Rules That Restricted Older People From Borrowing

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IN A positive move for middle-aged and older Australians, the Australian Securities and Investment Commission has ordered banks to relax rules that restricted borrowing capacity.

On April 23 ASIC announced it clarified responsible lending guidelines introduced in January – which inadvertently resulted in banks and non-bank lenders being rejected credit applications from middle aged people without a substantial retirement egg.

ASIC now says lenders must ask more questions to determine whether a middle aged applicant will be able to repay a 25-year owner occupier mortgage loan, if they are due, for example, to retire in the next decade.

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National 

Australian Residential Rents Tipped to Continue to Rise in 2011

RENTS for houses and apartments are expected to rise this year, as a result of accelerated economic activity, housing shortages and a depressed first home buyers market.

Australian Property Monitors, a property analyst, predicts a steep rise in rents this year, following what was a quarter of growth in March 2011.

According to APM, Sydney apartment rents have increased 7.1 per cent in the past twelve months, followed closely by Adelaide and Canberra.

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National 

One in Four Australians Will Not Make Payments if Rates Rise 0.5 Per Cent: Report

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A REPORT by finance giant QBE says one in 10 mortgage holders would not be able to make their repayments if interest rates rise by one quarter of a per cent.

This figure rises to one in four Australians, if interest rates were to rise half a per cent.

The report also says 80 per cent of first home buyers said the property market was overvalued, but one in five said they are still likely to make a purchase in the next six months.

The report, by QBE Lenders Mortgage Insurance, says on average 25 per cent of owner occupiers are suffering mortgage stress, with this figure likely to rise in line with future interest rate rises.

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National 

Sydney, Melbourne on the Radar of Major North American Retailers

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AUSTRALIA’s almost uninterrupted strong economic run – which has resulted in an almost uninterrupted consumption binge – is piquing the interest of North America’s major retail businesses.

According to a new report by commercial agency CB Richard Ellis, Sydney and Melbourne (image, Brighton bathing boxes, right) have both ranked in the top 10 most attractive destinations for expansion.

The survey samples 323 global retailers, and 209 cities in 73 countries.

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National 

Cedar Woods Rejects $310 Million Takeover Offer

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CEDAR Woods Properties has rejected a $310 million takeover offer, saying that purchase price undervalued the company.

The company confirmed a third party has offered $5.05 per share before being told it was “insufficient”.

“The Cedar Woods’ board has consistently stated that it believes the current (market) value of the company’s projects to be substantially above the value reflected in its share price,” it is reported as saying in The Australian.

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National 

Commercial Property’s Biggest Fundraiser to Peddle Off

THE commercial property sector’s biggest fundraiser is about to peddle off again, though thankfully for the Victorian participants, the weather is looking calmer than last year.

This time, the Chain Reaction bike ride will go national – with a Queensland ride scheduled for May taking participants from Forster, in New South Wales, to Brisbane.

A Victorian ride kicks off from Sydney next Saturday March 12, and concludes in Melbourne on Friday March 18, incorporating the Labour Day public holiday. The 1200 kilometre track will take participants through the Snowy Mountains.

Some 45 riders – representing commercial and residential sectors – are registered to accept donations for the ride this year.

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National 

Top End Residential Continues to Grind

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AUSTRALIA’s prestige property market appears to still be in deceleration mode.

In Sydney, the Vaucluse mansion being offloaded by the Cattell family has been reduced from $21 million to $18 million. Nearby, property developer Paul Smith sold his Bellevue Hill home for a price believed to be “a heavy discount” to the $14 million he first asked last year.

SQM Research managing director Louis Christoper said the Sydney and Melbourne prestige market are recording modest price falls.

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National 

Google Shelves Controversial Real Estate Listing Initiative

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GOOGLE has shelved plans to feature real estate listings within its Google Maps.

The company cited low usage for the feature, which is available in the US, Australia, New Zealand, the UK and Japan.

The feature was launched in 2009, but despite offering free listings, failed to knock off the dominant Australian real estate search engines, realestate.com.au and domain.com.au.

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National 

Canada Now Largest Private Owner of Forestry Land in Australia

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THE largest private owner of forestry land in Australia is now a Canadian pension fund.

Alberta Investment Management Corp (AIMCo) has paid $415 million for 252,000 hectares of timber land. The land was offloaded by collapsed managed investment scheme operator, Great Southern.

The price paid is 60 per cent of the land’s value three years ago, and before legislative changes triggered the collapse of two large industry players, including Timbercorp as well as Great Southern.

AIMCo chief executive Leo de Bever told the AFR the group had been working to buy the site for more than a year.

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National 

Surge For Australian Hotel Investments in 2010

INVESTOR demand for Australian hotels surged last year.

Hotel transactions surged 62.3 per cent last year, totalling $1.3 billion, according to JLL Hotels.

Demand for hotel investments was boosted by a strong business travel market which have pushed up room rates and occupancy levels in major capital city markets.

The Ayers Rock Resort was last year’s biggest hotel transaction, selling for $300 million.

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Perth
National 

Sydney and Perth Residential Sectors Set to Lead the Nation: Report

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THE Sydney and Perth residential sectors may have been the basket case of the country in recent years, but all that is expected to change, according to new research by MacroPlan.

The consultancy expects Sydney and Perth will lead the nation in regard to demand this year, led by increasing incomes, improving business prosperity and a shortage of new residential supply.

MacroPlan also anticipates some regional centres will perform well on the back of the resources boom, population growth and value.

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242 Exhibition Street
National 

Office Sector Set to Strengthen in 2011: Report

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LAST year, by and large, residential landlords were the investors best able to reap the rewards of a short supply, by boosting their rents.

This year however, may be year of the office landlord.

According to a new report by commercial real estate agency Colliers International, office rental costs are expected to increase in most capital cities, because of a shortage of new supply and an improving economy.

It expects office vacancies to fall in all major CBD office markets expect Brisbane (which already has a high 9.6 per cent vacancy).

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National 

Centro Properties Expected to List $4 Billion Portfolio

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CENTRO Properties Group is expected to list for sale a $4 billion portfolio of prime retail assets, as its bankers call for the company to settle its debts.

It’s expected Perth’s Galleria complex, and The Glen, in the south-east Melbourne suburb of Glen Waverley will be two of the 40-plus assets offered for sale.

Lend Lease, Colonial First State Global Management and AMP Capital Investors are expected to be in the mix of prospective purchasers, though the sale might also be on an individual shopping centre basis.

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National 

DWPF Pays CDPI $231 Million For Industrial Portfolio

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DEXUS Wholesale Property Fund has paid Colonial Direct Property Investment Fund $231 million for a portfolio of 13 industrial portfolios on Australia’s east coast.

The purchase includes eight properties in Sydney, three in Melbourne and two in Brisbane. Some are income producing investments, while others are development sites.

After the acquisition, DWPF’s portfolio allocation will be 57 per cent retail, 32 per cent office and 11 per cent industrial – though the plan is to boost the industrial allocation.

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National 

Lend Lease, Sekisui, forge agreement

SYDNEY based developer and fund manager Lend Lease has announced an agreement to develop a swag of national, master planned residential and community projects with Japan based Sekisui House.

The arrangement, which is subject to conditions, will see Sekisui acquire a 50 per cent interest in Lend Lease’s controversial 15-level Serrata apartment tower proposal, in Docklands.

Sekisui House will also buy land at Lend Lease’s Hyatt Coolum on the Sunshine Coast, Queensland, and a piece of a project at Wentworth Point, near Homebush, in western Sydney.

A copy of Lend Lease’s ASX announcement is below:

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National 

Is Government Scouring Australia For Public Housing Sites?

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A MAJOR but confidential Expression of Interest campaign seeking residential rental properties – believed to be for the government’s affiliated affordable and social housing agencies – has closed after almost six months.

The advertisement sought 400 unoccupied dwellings nationally, configured as motel rooms, blocks of flats, disused retirement villages, and clusters of units and houses.

The mystery tenant is offering 12 month leases with renewal options of up to five years on a case by case basis.

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