Real Estate

Trends and updates on property markets, including residential and commercial sectors.

Real Estate
Lord Mayor scraps plans to sell stake of Regent Theatre
Melbourne Lord Mayor Nicholas Reece says he has scrapped plans to sell the City of Melbourne's share of the heritage-listed Regent Theatre. The council owns 51% of the theatre, with the remainder owned by the state government, but Reece says public opposition to the plan changed his mind about selling the council stake. The historic landmark Regent Theatre opened in 1929, survived a fire, a flood, 20 years in darkness and threats of demolition, before it was refurbished and re-opened in August 1996 by Marriner Theatres. It is still run by the Marriner Group today and is estimated to be worth around $40 million. During his mayoral election campaign last year, Reece announced he would sell the council's stake in the heritage-listed theatre. He said the funds would then be put towards a new version of the previously popular White Night festival and creative hubs across the city. However, the Lord Mayor announced this week that he had changed his mind after significant public opposition. "I completely underestimated the passion, the strength of feeling that Melburnians have for the Regent Theatre and the important role that it has in the ecosystem of theatres and the arts scene in Melbourne," he said. "I admit, I
Real Estate
US property giant in $2.7bn bid for Domain Holdings
Australia’s second-biggest real estate platform, Domain Holdings (ASX: DHG) looks destined to leave the ASX following revelations today that US$50 billion United States property giant CoStar lobbed in a bid to take the Nine Entertainment (ASX: NEC) controlled Australian property listing business out. A week after buying a 17% stake in Domain Holdings (ASX: DHG), Nasdaq-listed CoStar has made a non-binding indicative $2.7 billion offer which the board said will require approval from the Foreign Investment Review Board if endorsed. “There is no certainty that the proposal will result in a transaction. Domain will appoint advisers to assist in this process,” Domain said in a statement today. “The Domain board has commenced an assessment of CoStar’s proposal.” Today’s bid follows shareholder pressure on Nine Entertainment, which controls 60% of Domain, to turn around the dismal performing ASX-listed property business, which has underperformed relative to its larger peer REA Group, which has the backing of News Corporation (ASX: NWS). Given that Nine has previously contemplated selling its stake, or taking Domain private, today’s bid may prove an attractive option. Domain is currently trading close to half its five-ye
Real Estate
Builder confidence collapses to 5mnth low in the US
Homebuilders in the United States have become less confident amid tariff concerns, elevated mortgage rates and high housing costs. Builder confidence in the market for newly built single-family homes was the lowest in five months at just 42, dipping five points from January, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. The score is lower than economists' expectations of 46. A reading under 50 reflects that builders view conditions as poor. Uncertainty on the tariff front helped push builders’ expectations for future sales volume to drop to its lowest level since 2023. “With 32% of appliances and 30% of softwood lumber coming from international trade, uncertainty over the scale and scope of tariffs has builders further concerned about costs,” NAHB chief economist Robert Dietz said. While tariffs in Canada and Mexico are currently paused, U.S. President Donald Trump has proposed a 25% tariff on imports from both countries anda 10% tariff on all goods from China. The HMI survey also found that 26% of builders cut home prices in February, down from 30% in January and the lowest share since May 2024. The average price drop in February was 5%, rema
Real Estate
Goodman raises A$4 billion as interim profit rises
Industrial property developer Goodman Group has announced a A$4 billion capital raising after unveiling an increase in half year profit. The company said it would issue 119.4 million new securities at $33.50 each, a 6.9% discount to the closing price on Tuesday, through a fully underwritten pro-rata institutional placement. Goodman, which develops warehouses, distribution centres and business parks in several countries, said it would also undertake a non-underwritten security purchase plan for eligible securityholders to raise up to $400 million. “The proceeds raised will provide working capital and financial flexibility to assist over the short and long term. It will enable the Group to advance the execution of its strategy, accelerate a large program of data centre construction, and optimise risk and return,” founder and CEO Greg Goodmansaid in an ASX announcement. The company also said operating profit rose 8% to $1.22 billion in the six months to 31 December 2024, and operating earnings per security (OEPS) increased by 7.8% to 63.8 cents. Statutory profit was $799.8 million, compared with a loss of $220.1 million in the prior corresponding period, while revenue surged 25.2% to $1.339 billion. Directors decla
Real Estate
$1.5bn plan to create 10,000 apartments in NSW by 2030
The State Government has received a proposal for the largest built-to-rent development in New South Wales. Rent-to-Live Co, the venture founded by Scape Australia principals Stephen Gaitanos and Craig Carracher, has drawn up plans for the $1.5 billion development of the 2.2 hectare Marrickville timberyards as a part of a target to create 10,000 apartments by 2030. “The Timberyards is the first of many projects in our ambition to democratise the rental market. Sydney is our focus and with our scale and expertise in this market we believe we can make an immediate impact,” Carracher told the Australian Financial Review last year. If approved, seven apartment towers would be built on the Victoria Road site creating almost 1,200 rental units, including 115 affordable homes, as well as outdoor public spaces and retail and creative spaces. The project, which was first reported in October 2024, has won the backing of Dutch investors APG the largest pension provider in the Netherlands, and Bouwinvest, a property fund manager for the new vehicle which has around $1 billion in equity capital committed. The Timberyards is one of the few large-scale urban redevelopment sites in the Inner West and sits near the newly opened Sydne

Real Estate
Productivity Commission airs new report on construction
The Productivity Commission has released a new report examining the falling productivity in housing construction in Australia over three decades. Titled “Housing construction productivity: Can we fix it?”, the research looks into how productivity in this sector has fallen far behind the economy at large, rounding out with seven reform proposals to governments to help make homebuilding more efficient again. The report estimates half as many homes per hour worked are being completed, compared to 1995 and comparatively the labour productivity in the wider economy increased by 49% over the same period. The proposed reforms to fix this slump included governments setting up coordination bodies to speed up construction processes and address delays, an independent review of building regulations, and a national unified approach to occupational licensing. “Governments are rightly focused on changing planning rules to boost the supply of new homes, but the speed and cost of new builds also matters. Lifting the productivity of homebuilding will deliver more homes, regardless of what is happening with the workforce, interest rates or costs," said the Commission's Chair, Danielle Wood. "The sheer volume of regulation has a deaden
Real Estate
Australia plugs residential foreign investment... for now
In another effort to curb the country's housing crisis, the Australian Government has announced it will ban foreign investors from buying established homes and curb land banking practices for at least two years. The ban’s purpose is for Australians to be able to buy homes that would have otherwise been foreign owned and is part of the Albanese Government’s $32 billion Homes for Australia plan that kicked off on July 1 last year. Foreign purchases far outweigh sales According to the Foreign Investment Review Board (FIRB), during FY23 there were 5,360 residential real estate purchases with foreign ownership, valued at $4.9 billion, with the lion's share in NSW, Victoria and Queensland. Meanwhile, residential sales transactions were just 1,119, valued at $1 billion.Credit: FIRBFreeing up the market The Albanese government will also stop foreign land banking - the art of buying up large blocks of undeveloped land on the cheap and waiting until it becomes highly sought after - usually due to urban sprawl. Leaving these large swathes of land undeveloped can actually slow an area’s value increase and market changes can significantly impact returns on investment. “Alongside the temporary ban on foreign purchases of es
Real Estate
Lendlease delivers upbeat results, exits UK construction
Lendlease Group reported solid first-half results for FY25 on Monday as the company made progress in strategic initiatives amid improved operational efficiency. Statutory profit after tax came in at $48 million, reversing a statutory loss of $136 million in the prior corresponding period. The company reported an Investment, Development, and Construction (IDC) segment EBITDA of $341 million, representing a 171% increase. Operating profit after tax (OPAT) rose to $122 million, up by $133 million, while operating earnings per security reached 17.7 cents. In the Investments segment, segment operating EBITDA rose 148% to $228 million, driven by the formation of the Vita Partners Life Sciences joint venture. Funds under management grew by 3% to $49.6 billion, supported by $0.9 billion in new additions from development projects. Management EBITDA increased by 7% to $49 million, benefiting from reduced expenses following the removal of regional management structures. This improvement outweighed the impact of lower fee revenue, driving the management EBITDA margin up to 44.1% from 37.1%. The Development segment saw a significant turnaround, with operating EBITDA increasing by $162 million to reach $138 million. A ke
Real Estate
Residential sales boost Mirvac's profits in first half
Mirvac Group reported its 1H25 results, showcasing a solid performance with a notable increase in residential sales activity. Executing against strategy, Mirvac improved future development earnings visibility, with 947 residential lot sales (up 51% on 1H24), which includes the successful launch of Harbourside Residences, Sydney. Residential pre-sales grew to $1.9 billion and leads increased by 36% on 1H24. Living sector EBIT increased to $26 million from $2 million in 1H24. Key financial metrics operating profit after tax of $236 million (1H24: $252 million) operating EPS of 6.0cpss (1H24: 6.4cpss) statutory profit of $1 million (1H24: $201 million statutory loss) half-year distribution of $178 million, representing distribution per security of 4.5cpss (1H24: 4.5cpss) net tangible assets (NTA) of $2.31 (1H24: $2.56). Analysts and brokers have reacted positively to Mirvac's results. Wilson Asset Management, despite some challenges in the real estate investment trusts sector, remains optimistic about Mirvac's long-term potential. Mirvac’s CEO & Managing Director, Campbell Hanan, said: “We delivered a good result in the first half and remain on track to achieve guidance in FY25. We have made significant progress