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GUEST OBSERVER
Office occupiers and their employees have a wide variety of locations to choose from.
We examine 12 of the most important real estate markets in the region. Discover the performance and prospects for the big ‘Global Powerhouses’ like London and Paris, fast-growing ‘Urban Accelerators’ like Stockholm, Berlin and Dublin, through to small but high profile ‘Contenders’ like Amsterdam, Frankfurt and Warsaw.
KEY FINDINGS
European cities have many of the characteristics of highly successful world cities that make them very attractive to workers looking for ‘urban buzz’ and a high quality city lifestyle. Their authentic environments, varied cultural experience and high quality of living makes the European cities in this study attractive not only to employees but also to employers.
New digital industries disrupt working practices and are growing at a faster rate than conventional finance and business services. Companies are searching globally for the Human Resources they need to win in this environment. This means that companies’ location choices will increasingly be made by the HR rather than premises departments. The questions they will ask are “which cities will help attract human capital?” rather than “where will property costs help save financial capital?”
Europe does contain some of the world’s global powerhouses: the top ranking cities which continue to attract people as well as global investment. Often, they act as hubs to wider, dispersed city networks. They are unlikely to lose this status in the foreseeable future and are adapting well to the digital age. London, Paris and Madrid now employ more people in their information and communication sectors than in their financial and insurance sectors.
London and Paris are the two most global cities in Europe and accommodation costs in these cities reflect that success. Large workforces result in high demand for space in the city which pushes up rents and land values in old cities where space is limited.
There is a big fall-off in annual accommodation costs per worker to the next tier of European cities. Milan, Dublin, Amsterdam, Moscow and Brussels are around half the cost of London at present.
The cheapest cities in Europe in which to accommodate staff are Warsaw, Berlin. Frankfurt, Madrid and Stockholm. Warsaw is just over a quarter of the cost of London.
In some cities, this expense ranking is likely to change. Workspace rents are forecast to rise over the next year in Amsterdam, Dublin, Paris, Madrid, Milan and Stockholm. They are broadly stable in Brussels, Frankfurt, London and Warsaw, giving occupiers more certainty on real estate costs.
Where real estate costs are scrutinised, it is becoming as important to look at residential affordability as well as commercial property costs. Young creative workers are increasingly attracted to good, small cities offering cheaper accommodation as they are priced out of the big global financial centres. This is part of the reason why some very small European cities like Berlin, Dublin and Amsterdam are hugely successful and punching above their weight economically. Their worldwide fame belies their size.
Brexit has raised questions on London’s future as a financial centre and speculation is rife as to which European city might win London’s business. The evidence of this report suggests that no single city will take London’s crown but rather the EU passporting functions of many institutions will be dispersed throughout Europe to a variety of cities for different reasons.
Some small cities, especially those in which it is easy for multinationals to do business, those with favourable tax regimes and strong English language capabilities could do well in attracting global companies but few of these cities have the stock capacity to accommodate many large relocations from London – or elsewhere, especially in the short term. Some cities which larger levels of office supply may find their corporate and personal tax regimes discourage some companies.
Taking a combination of measures into account, London still stands out as the most attractive European city for the finance sector. We think it will continue to serve as a global finance centre but in partnership with some smaller European cities for passporting functions.
Overall, there are good reasons to expect further growth in both the economies and real estate markets of many European cities. Often the strength of the city will buck the trend of the country in which it sits so national comparisons are less useful than city comparisons.
The strength of occupier markets should continue to attract global investment in many European cities and to start attracting it in others. The attractiveness of these cities to investors is important for occupiers in the long run as it will determine whether they can find sufficient workspace of the right type in the right place and whether housing is affordable for their key workers.
The economic and demographic strength of most of the European cities in this report is such that both occupier and investor demand should be assured.
<a href="https://www.propertyobserver.com.au/images/2017/03/16/pages-4-5-figure11.png" target="_blank">Click to enlarge</a>
<a href="https://www.propertyobserver.com.au/images/2017/03/16/pages-4-5-figure11.png" target="_blank"><img src="https://www.urban.com.au/images/2017/03/16/pages-4-5-figure11.png" width="600" height="315"></a>
Source: Savills World Research
 
Yolande Barnes is director, World Research at Savills and can be contacted <a href="https://www.savills.com/" target="_blank">here</a>.
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Euro cities punching above their weight economically: Yolande Barnes

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GUEST OBSERVER
A key question amid the consternation over the current state of Australia’s east coast energy market has been how much renewable energy capacity to build, and how fast.
But help could be at hand from a surprising source: electric vehicles. By electrifying our motoring, we would boost demand for renewable energy from the grid, while smoothing out some of the destabilising effects that the recent boom in household solar has had on our energy networks. 
Australia’s electricity infrastructure was built largely without renewable energy in mind, and primarily to maintain reliability for when demand peaks. The high uptake of solar panels, while good for reducing carbon emissions, has reduced grid demand by 5-10% in Australia, and as a side-effect has lowered the value of network assets, raised power prices, and made the grid trickier to manage. 
Electric vehicles can ease the pressure on spikes in electricity prices by adding storage capacity. They are effectively a distributed storage system - with smart meters they can feed electricity back into the grid when prices are high. These vehicles’ battery reserves can thus help with the balancing of the grid and provide energy in the peak period. Electric vehicles would also add battery storage to the grid at the same time, which can reduce the need to size the grid for demand peaks. 
One way to think of electric vehicles is essentially as batteries you can drive. So before the government pursues plans such as spending A$2 billion on expanding the Snowy Hydro scheme, it should do a cost-benefit analysis comparing the returns from similar infrastructure investment in electric vehicles. 
According to the Office of the Chief Economist, Australia produced 6 billion kilowatt hours of solar PV in 2015 – enough to run almost 2 million cars, equivalent to 10% of Australia’s total current passenger vehicle fleet. Increasing demand for grid-sourced electricity will put downward pressure on network prices, which typically are roughly half of the cost of a household energy tariff. At a time when demand has declined and policy settings have created lots of investor uncertainty, the increased demand will also encourage investment in new generation capacity.
Electric vehicles can also increase economic activity in Australia and improve air quality and health. Australia has nearly 20 million cars that together drive 280 billion km each year. Passenger vehicles alone consume 20 billion litres of fuel each year in Australia. At A$1.50 per litre, that is A$30 billion per year that is burned, with roughly half the revenues going to multinational oil companies and the other half going into federal coffers as fuel tax.
The health costs of pollution from vehicle emissions adds a further A$1,450 per household per year in major cities, an annual impost of some A$14.5 billion on household and government budgets – roughly the same as what the government earns in fuel tax.
If all vehicles were electric, the same distance could be driven with electricity costing less than A$15 billion, because electric motors are more efficient than internal combustion engines (although this is slightly offset by minor grid losses). This would thus deliver a double saving, in terms of both household fuel bills and reduced health costs. 
Changing gear
Of course this won’t happen overnight, but that’s not necessarily a bad thing. The electricity grid will need time to adjust and add extra renewable capacity, as the cost of electric cars comes down and coal power stations get old. 
Both economic analysis and recent political experience suggest that encouraging investment in renewable energy is expensive, especially if the only driving factor is the need to cut greenhouse emissions (important though that is).
Here is where electric vehicles can really help the grid. Swapping petrol or diesel cars for electric ones on a large enough scale will increase Australia’s flatlining electricity demand, making it more lucrative for energy suppliers to invest in new generation capacity. Given the increasing cost of gas, and the declining support for coal, on balance most of this demand will be met with new renewable capacity, facilitated by the addition of all these new “batteries you can drive”. 
Click to enlarge
A suggested pathway to energy sustainability via electric cars. Adapted from Andrich et al. Inequality as an obstacle to sustainable energy use, Energy for Sustainable Development
Government policy should be to set some high-level national interest objectives, such as maintaining gas for domestic use, and then simply not interfere with the market as much as possible. But political leaders are struggling to keep up with the rapid changes in technology and the market. The pathway to sustainability would have been smoother and faster if governments had looked to WA for a gas reservation policy, not intervened by closing coal, and reduced the subsidies that allowed solar power to grow so disruptively fast (particularly in wealthier households). 
Making more effort to promote electric cars would also have allowed a more successful transition to renewable energy and reduced the price shocks being suffered by eastern Australia in areas such as the gas market. Fortunately, it is not too late.
Hitting the road
Investing in a new car is not a decision most households take lightly. This is especially true of electric cars, which are expensive, are not marketed widely, are available in only a limited range of models, and are subject to concerns about charging and range.
Presently, electric vehicles are only affordable for higher-income households, which is ironic given the benefits they would offer lower-income households in terms of fuel budgeting and reduced exposure to urban pollution and health costs. 
One-third of an electric vehicle’s cost is batteries, which are rapidly coming down in price. Bloomberg New Energy Finance predicts that by 2022, electric models will cost the same as their petrol counterparts. That will be the point of liftoff for sales. 
Meanwhile, electric cars have an undoubted cool factor. Buying one is a powerful way to show you care about your community’s future. Pardon the pun, but just look at the way Tesla founder Elon Musk electrified the debate over South Australia’s electricity problems.
For governments, electric vehicles offer an opportunity to make significant inroads on environmental and health problems, not to mention urban planning and infrastructure. The demand for car batteries could also boost related industries, such as lithium mining, in which Australia is a world leader.
Feeling electric
Simple, inexpensive policies could encourage electric vehicle uptake, such as reducing registration fees and stamp duty on electric cars and allowing them to drive in bus or other priority lanes, while also hiking the tax on diesel cars that cause cancer.
Other emerging transport trends, such as car-sharing clubs and ride-sharing apps, could also hasten the uptake of electric vehicles. Sharing increases the number of kilometres driven by each individual vehicle, meaning that the upfront costs are paid back more rapidly, leaving the owner with a car that is paid off and cheaper to run than a petrol or diesel model.
These facts are not lost on the car manufacturers themselves. But given the potential co-benefits to the electricity grid and community health, we might expect power utilities and health agencies to join the push to actively promote electric vehicles – not to mention politicians who are looking to deal with our energy issues and win a few votes along they way.
Mark Andrich is director, Sustainability and Finance Specialist, University of Western Australia and can be contacted <a href="https://theconversation.com/profiles/mark-andrich-146801" target="_blank">here</a>. Jemma Green is research fellow, Curtin University and can be contacted <a href="https://theconversation.com/profiles/jemma-green-105891" target="_blank">here</a>.
Both are authors for The Conversation.
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How electric cars can help save the grid

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Legendary rock publicist Patti Mostyn has listed her Port Douglas trophy home, The Glasshouse.
The longtime Sydney based publicist, who is famous for working with the likes of Frank Sinatra, George Michael, Sting and Elton John, secured the hilltop location in 2013 with her late husband, Eric Robinson.
<img src="https://www.urban.com.au/images/2017/03/23/Screen%20Shot%202017-03-23%20at%2011.27.42%20AM.png" alt="">
Robinson, the CEO of JPJ Audio and Jands Production Services, was honoured on Australia Day for his service to business in the area of professional audio and lighting equipment.
Their striking three level home, with swathes of glass, offers 200 degree sweeping views to the Coral Sea and beyond over Four Mile Beach and the Port Douglas Marina.
It was designed after the couple suggested a functional brief to the acclaimed architect Charles Wright. 
The master suite and third bedroom have their own private balcony overlooking the tropical landscape.
The second guest bedroom opens onto the extensive swimming pool decking.
Barbara Wolveridge has the listing at $6.75 million in the FNQ town attracting keen buying interest. Callum Jones of Tony McGrath Real Estate Port Douglas shares the listing.
The buyer of The Edge, another Port Douglas trophy home designed by Charles Wright, has emerged as Vaucluse professor Charles Mackay.
The chief scientific officer at Pfizer paid $4.85 million.
Floating off the side of Flagstaff Hill, the 555 square metre home designed like an outdoor shell, was built for the late Sydney industrialist Peter Graham and wife Claire.
Mostyn and Robinson sold their striking Graham Jahn-designed Watsons Bay home for $4,025,000 in 2014, with Mostyn looking to buy for a rather large eastern suburbs apartment which will become her Sydney base.
The four level, three bedroom Watsons Bay home was built in 1989 for Charles Lloyd Jones of the David Jones retail family.
This article first appeared in the Daily Telegraph. 
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Patti Mostyn's Port Douglas home, The Glasshouse, listed for sale

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GUEST OBSERVER
When we think of coasts, we are likely to think about the great sandy beaches that have been the destination for many day trips and long weekends.
At times these spaces have been sources of contestation, especially in areas of public access and codes of conduct. However, behind the sand dunes are other landscapes with deep histories of social conflict.
Moments from coastal pasts have had a major impact on how we see different coasts today. They feed into distinct ideals and ethics on place, especially in terms of how it is developed.
Noosa Heads versus Surfers Paradise
Noosa Heads is a prime example of this. Noosa’s history during colonisation includes a number of difficult stories to tell. Examples include the contentious tale of the rescue of Eliza Fraser, or the fate of the traditional owners, the Gubbi Gubbi people, at the hands of the colonial settlers and the native police.
Yet it was in the 1960s when modern conflict over land use really took shape in Noosa. A proposal by the developer T.M. Burke to build a resort at Alexandria Bay created a stir among locals. The local shire was set to build an access road around the headland, destroying well-trodden walking tracks.
A group led by local Arthur Harrold fought this proposal and formed the still-operating Noosa Parks Association. Thus began a long-standing fight against over-development, mining and other impediments to what residents saw as the natural beauty of the coast. This included the Cooloola Conflict and the now-famed resistance to high-rise development.
While there are elements of conservationism here to consider, these conflicts arose in a bid to keep Noosa low-key, with a slower mentality and authentic natural surrounds. Today, these ethics of authenticity are firmly embedded in planning regulation, illustrating the strength of local resistance past.
Noosa residents’ key fear in the 1960s and ’70s was losing their sense of place to the different ideals embodied in another coastal mecca, Surfers Paradise. Like Noosa, Surfers has a long history of conflict. Yet this place developed much differently due to several key factors.
Arguably, the significant turning point was in 1925 when Jim Cavill bought the then Elston Hotel and renamed it the “Surfers Paradise” hotel. Cavill and his wife proceeded to turn the coastal setting into something more than a place to bathe or surf.
Alongside the hotel, they built a zoo full of exotic animals that gave the place a peculiar flavor. Having been influenced by the American example of how to develop coasts, Cavill exhibited a desire to construct Surfers Paradise as an exotic international resort. However, due to the war in the Pacific, Surfers Paradise was restricted by building codes, frustrating locals who were eager to begin making the space bigger.
Shortly after the war, the codes eased and developers flocked to the “Golden Coast”. In the course of development, local leaders such as the progress association often came into conflict with governance.
In the example of parking meters, this led to the controversial meter maid scheme, which further established Surfers Paradise’s theme as an overtly transgressive and sexualised place.
Conflicts of a climate-changed future
In both spaces, conflicts have continued into contemporary times.
Recently, for instance, the fight against the proposed Southport Spit development has again drawn locals into conflict with authorities. Such fights against development continue up and down our coastlines. These are mostly driven by the desire to maintain a specific lifestyle and aesthetic appeal.
However, early critics of coastal development saw other concerns about coastal development. For instance, in 1879 a journalist for The Gympie Times, while contemplating the construction of Noosa and Tewantin, wondered about the location of the village and whether one day seawater might be running between you and your neighbour.
While we have different motivations for maintaining or developing our coastal places, we seem to neglect discussions about the risks of living so close to the ocean.
As we approach a climate-changed future, issues of sea-level rise and coastal flooding are going to challenge our thinking about coasts.
History has shown that several of our coastal meccas are already susceptible to significant damage from storms and cyclones. We scramble to rebuild following these events, but few debates are had about retreating away from the sea.
As we continue into that risky climate-changed landscape, however, we might see new players like insurance companies become increasingly important.
Already in the tropics, insurance premiums have caused a stir politically and in the media. In the future, though, we may need to consider to whether we have to redefine our relationship with coasts as they become more risky places to live.
Nick Osbaldiston is senior lecturer in Sociology, James Cook University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/nick-osbaldiston-9802" target="_blank">here</a>.
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Contested spaces: conflict behind the sand dunes takes a new turn

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GUEST OBSERVER
Dear Young People, Malcolm Turnbull and Bill Shorten, Daniel Andrews and Matthew Guy.
Please consider younger homebuyers getting access to their super funds, to help them buy a home – please help young homebuyers level up the playing field.
Please don’t say the super idea will start in 2025 – say it will start now – as the time for having children may pass some by during this time.
Granted, it will add a bit more fuel to the market fire – but is that a fair-go reason, not to help young people get onto a level playing field?
It's not a level playing field - Reason 1
When I, as a 57-year-old tax payer can go to an Inner Melbourne auction for $1 million and it cost me $20,000 of my income to buy it – YET for a young homebuyer it costs them $80,000 of their income to buy that same home. It’s not fair. This is not a level playing field.
Is the market out of control, dangerous or is it doing what it should?
“Beggars belief – Defies logic – Unsustainable”
These are the headlines that in part, are being attached to the reasons why we should not help YOUNG PEOPLE with access to their super.
Can I ask why the authors of these headlines say this about the Inner Melbourne market?
What do they mean – what beggars belief in their mind?
That more and more people are wanting to come to Inner Melbourne?
That for all it’s internally recognised faults; Melbourne is seen externally as one of the truly great places in the world to bring up a family.
That political stability, business opportunities, an overarching community attitude of fair play, jobs, education, pollution, gun laws, health system, labour protections and………. are on the tick-off list of almost all skilled migrants in this world.
Why does our strong Inner Melbourne housing market, beggar belief?
Do the economists, bankers and other business people who are saying this, not believe in this century’s old economic demand and supply thesis.
<a href="https://marketnews.com.au/wp-content/uploads/DandS-260x195.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-medium wp-image-59674" src="https://marketnews.com.au/wp-content/uploads/DandS-260x195.jpg" alt="DandS" width="260" height="195">
What “defies logic” about the current Inner Melbourne housing and land market?
False assumptions or different perceptions
In a country, that for decades has been focused on “low fat”, only to become one of the obese nations of the world.
Is it defying logic to think that if we put more calories in (population), than we can exercise out (land), then our bellies will not explode (prices)?
It's not a level playing field - Reason 2
This government supported graphic below, is the Inner Melbourne home market price obesity issue.
This is another of the structural community decisions, that we as older people have made, that are impacting young people.
It’s great for us!
Our asset values go up; but it’s very difficult for young people who do not have housing assets.
<a href="https://marketnews.com.au/wp-content/uploads/VIF.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-59891" src="https://marketnews.com.au/wp-content/uploads/VIF.jpg" alt="VIF" width="299" height="205">
The true Inner Melbourne market price obesity issue is population and the lack of discussion we have around the actual number, rather than the issues.
Are the above population figures acceptable or not – are they sustainable or not?
Yes a falling population has different issues – look at Japan.
However Inner Melbourne doesn’t have a falling population issue – we have the opposite.
So are we really in some unexplainable pricing bubble, so bad that we can’t help YOUNG people because the market is “dangerous”?
Or are we in a normal, but strong market explained by limited supply (land) and increasing demand (population); which affects young people UNFAIRLY because of structural inequities around negative gearing, skilled migration, overseas investment and so on.
One final world about unsustainability of the market, before we get back to young people – young sub-million homebuyers.
These days we are all talking about “unsustainable.”
We seem to be focused on “unsustainable” pricing, rather than our “unsustainable” society as a whole?
In 2030 when your children’s children (grandkids) are 2-3 hours away in Albury or Bendigo, because of housing affordability inequities; or you can’t get an ambulance driver or a teacher, because they can’t find housing in your local area – is that the unsustainable bit you should be talking about or is it pricing?
We live in a society with some issues, but compared to many in the world right now, Inner Melbourne is one of the great pluralistic societies.
We have many obsessions like footy and food and housing AND population growth.
And as our population grows, I’m with the well known economist from Toy Story, Buzz Lightyear who says the Inner Melbourne housing market will, without a change in circumstance, continue to rise, with a few interruptions, ’till infinity and beyond.
Of course there will be hiccups and of course those that cry wolf often enough about doom and gloom, will eventually be right – but in the longer term are we really in so much trouble, that we can’t help young people?
Possibly when an assistant at the Reserve Bank or a leader of business says we are in danger, they are doing so for altruistic reasons to make people think, or they are under the boss’s riding instructions to “hose the market down” – BUT – when those statements are not attached with an additional explanation like – you still can buy a home only have a buffer for interests rate increases, then are those well meaning “expert” comments all that helpful?
Especially when all they usually hose down are the inexperienced homebuyers like the Youngies, who are nervous, in need of permanent housing and are already up against it.
If you believe in demand and supply, then possibly our Inner Melbourne market is not dangerous and we are in nothing more than a strong market.
Which brings us back to the young people in our society.
The young people's housing issue, in our opinion, should be addressed – it will not go away by osmosis AND it is UNFAIR.
Which brings us back to young people and their superannuation funds.
This could be a bloody good idea to level up the playing field for not us oldies, but for young people.
Young people don’t need special treatment; they just need a releveling of a very unlevel and UNFAIR playing field.
I will repeat – with my tax advantages as a 57-year-old tax payer I can go to an Inner Melbourne auction for $1 million and it cost me $20,000 of my income to buy it – YET for a young homebuyer it costs them $80,000 of their income to buy that same home, then that is UNFAIR.
As well, my deposit can come from the increase in my current home value for which I have done little – except make a few smart decisions over the last few decades – before many young people were born.
That possibly is unfair (but maybe not). My point – a young person’s deposit is so, so much harder to get – super could help.
<img class="aligncenter size-large wp-image-60071" src="https://marketnews.com.au/wp-content/uploads/49896-93WellingtonStreetKEW-3-597x447.jpg" alt="49896-93WellingtonStreetKEW-3" width="597" height="447">
Overseas skilled migration and overseas investors. With tax and other structural advantages, Xiou Lin from Beijing or Peter Pepper from the US, can buy that same Australian $1 million home with a myriad of interest rate and currency advantages over a local young homebuyer.
And please financial planners, bankers and so on – please don’t start telling us that young people’s money is better tied up in one of your funds, rather than good land content, near rail with a workable floor plan.
Please don’t do that without declaring your conflicts as well and showing us the stats that actually evidences that theory may have a scintilla of historical truth.
Young people, young Australians of all cultural backgrounds and religions are being pushed out of our society by housing structural unfairness such as negative gearing, skilled migration policies, overseas investment policies and restricted infrastructure spending.
We as older people have resided over a Tax and Immigration system, with the unintended consequence of making the homebuying market very unfair for young people.
It’s not a guilt trip, I don’t feel bad, I just think we should try and level it up a bit and MAYBE SUPER (under controlled circumstances and with due regard to other issues, such as the current industry) could do that.
The past week’s media blast on how bad an idea it is to try and help young people, because it may already add to a strong housing market is a valid point BUT total baloney in the overall scheme of things for young people.
I’m no rocket scientist and therefore I don’t know if the superannuation idea will work for sure, but it seems logical and worth a try.
This and other measures should be tried or Inner Melbourne may well become a desert of walking frames, grumpy old farts, unoccupied housing and NO YOUNG PEOPLE in a few decades.
Hawthorn, Toorak and Brighton could be just one big nursing home in 2035.
Try the superannuation idea and don’t make it too hard for young people to access it.
Please Young People, Daniel Andrews, Matthew Guy, Malcolm Turnbull and Bill Shorten – give the super idea some serious consideration – it seems to makes sense in giving young people a chance to get back on the playing field, with their biggest challenge – a deposit.
Apologies about being on a high horse and I’m not wedded to the super idea, nor am I the author of the idea – I just think it’s a bloody good idea worth being positive over and worth exploring for young people AND we oldies need to recognise that the current system is unfair for Youngies – and that may not be in our best interests in a decade or so.
MAL JAMES is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Helping young people get onto a level property playing field: Mal James 

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GUEST OBSERVER
Sensibly, the federal government abandoned plans to privatise the database of the corporate regulator just before Christmas.
Almost inexplicably, the New South Wales government continues to pursue its plan to privatise the state’s land titles registry.
We say “almost” because this deal is explicable only in that it will raise a projected A$1 billion to A$2 billion for the state budget. It is a one-off transaction to finance the upgrade of two football stadiums.
It utterly defies logic. Privatising a government monopoly, an essential service with zero competition, defies logic full-stop. In this case, besides the loss of jobs, besides the loss of a reliable $130 million a year dropping into state coffers, besides the loss of security for critical information – perhaps to an offshore private equity group – and besides the spectre of rising litigation costs, there is the matter of tax.
It is reasonable that voters demand of their elected officials to know where their assets may end up and who might own them. Will the profits of the NSW Land and Property Information Office (LPI) end up in a tax haven in an entity controlled by a financier of weapons? The notorious Carlyle Group is one touted bidder.
So “on the nose” is the proposal to auction off the LPI via a 30-year lease that the Law Society, the Real Estate Institute and the Institute of Surveyors have come out against it, as have staff and myriad other stakeholders.
Despite trenchant opposition to the NSW sale, South Australia is also tinkering with the idea of privatising its land titles office. The other states are watching on.
The tax haven connections
When it comes to leasing things to tax havens, state governments have form. In both Victoria and South Australia, electricity networks have links to tax havens. In NSW, too, some 40 percent of the Transgrid electricity sale last year went to two entities domiciled in the Cayman Islands.
The secrecy shrouding the auction of the LPI means the actual corporate entities lurking behind each bidding syndicate remain a mystery.
The public, which owns the asset, even has to rely on newspaper leaks, likely from investment banks involved in the sale, to speculate as to the identity of the bidders. According to press reports, the bidding line-up is down to three consortia and two private equity players:
<ul>
<li>Carlyle Group</li>
<li>Affinity Equity Partners</li>
<li>Hastings Funds Management, Advara and First State Super</li>
<li>Macquarie Infrastructure and Real Assets (MIRA) group and Link Group</li>
<li>Borealis Infrastructure’s Teranet, and Computershare.</li>
</ul>
Advised by Morgan Stanley, the Carlyle Group is more than just an artful tax structurer. As a significant investor in the arms sector, with high political connections such as former US president George Bush senior, it has a notorious track record of profiteering from wars, the Iraq War in particular. Even The Economist has written: “The secretive Carlyle Group gives capitalism a bad name.”
Stakeholders in the state of NSW concerned about sensitive details of who owns what land, and how the state is divided up, have good reason for concern.
Then there is the bidding combination of Macquarie Bank and Link Group. The former is well known for the aggressive tax structures of its infrastructure plays such as Macquarie Infrastructure Group (sold to Transurban), Thames Water in the UK and Sydney Airport.
It would be good policy, besides the basic political courtesy of a transparent auction process, that any privatised asset not end up in a stapled-security trust structure. For one, it is incumbent on the members of the trust rather than the trust itself to pay income tax, although members of these structures typically pay a tax rate of 10-15% rather than the 30 percent company rate.
Selling to a trust therefore means one-third to one-half the normal corporate-rate tax is paid. Further, private buyers are attracted to essential government services for the stability of their income; and so they can gear it up with debt to further reduce tax. It is not as if the LPI can go bust.
Link Group, part of the Macquarie consortium, is listed on the ASX. Over the past two years it has booked A$1.5 billion in cashflows and paid just A$2 million in tax.
The Hastings Funds Management, Advara and First State Super syndicate looks the cleanest in terms of tax. Though super funds pay half the corporate rate, at least tax is paid.
The fourth syndicate of Borealis Infrastructure’s Teranet and Computershare is a mixed bag on the tax front. Although Computershare pays large licks of tax in Australia, it also has a quiver of tax haven connections from Jersey, Guernsey, Bermuda and the Cayman Islands, to the British Virgin Islands, Ireland and the Netherlands.
For its part, Borealis is a Canadian leveraged buy-out firm, which bids for public infrastructure and loads it heavily with debt, often from an associate at suspiciously high interest rates. It is noted for wiping out taxable profits in the UK thanks to big loans from its own subsidiaries.
In the broader context, there has been an insidious creep in state secrecy over privatisation and the use of taxpayer funds, as evinced by the A$1 billion of taxpayer funds being deployed to finance a rail line for Adani’s coalmine in Queensland, a mine whose corporate entities have tax haven connections.
The least politicians could do is to insist, as a prerequisite of sale, that all bidding proposals see the light of day before any deal is done, and that all bidders are required to use an Australian corporation with no tax haven parentage.
 
Michael West is the Adjunct Associate Professor at the University of Sydney’s School of Social and Political Sciences and author for The Conversation.
He can be contacted <a href="https://theconversation.com/profiles/michael-west-339731" target="_blank">here</a>.
His website can be viewed <a href="https://www.michaelwest.com.au" target="_blank">here</a>.
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Will the profits of the Land and Property Information Office end up in a tax haven?: Michael West

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SPONSORED POST
Melbourne is the top ranked ‘tech city’ in Australia and 14th in the world offering the infrastructure, business environment, talent pool and lifestyle to make it a strong base for tech companies, according to new Savills research. 
And according to Victoria’s Minister for Small Business, Innovation and Trade, Philip Dalidakis, that is no surprise given the Government’s policy of taking “brand Victoria to the world”.
While US cities dominated the top of the Tech Cities rankings – Austin (Texas) came in at number one followed by San Francisco, New York, and London, according to the <a href="https://www.savills.co.uk/tech-cities" target="_blank">Tech Cities 2017</a> programme - the liveability of cities including Melbourne, Amsterdam, Copenhagen and Toronto, placed them above more established global tech rivals.
Savills National Head of Research in Australia, Tony Crabb, said the elevation of ‘liveable’ cities in the rankings centred on their strong performance in terms of ‘buzz and wellness’, factors that were likely to prove increasingly important to the tech industry in decisions on where to locate and on attracting future talent. Melbourne was ranked 8th on this index.
“Everybody here knows Melbourne’s reputation as the world’s most liveable city, a title it has taken for six consecutive years, and so it is not surprising to see how well Melbourne ranked on this metric. 
“That single factor may well prove, more than any other, the most critical factor in further establishing and maintaining Melbourne‘s pre-eminence in what is increasingly one of the most important employment and growth industries in the country,” Mr Crabb said.
The UK report quantified ‘buzz’ (nightlife, entertainment, culture) and ‘wellness’ (pollution levels, quality of parks, healthcare, commuting times) and the cost of living in each location to create a specific ‘city buzz and wellness index’. 
It noted that given the increased focus on physical and mental wellbeing among the latest generation of workers, it could come to dominate their decision-making.
According to Nicky Wightman, Director Savills Worldwide Occupier Services, providing an environment which enables tech companies and start-ups to plug straight into the infrastructure and funding they need to be a success is an important part of any tech city.
“However this alone won’t necessarily make them attractive destinations. Young tech talent increasingly want to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office.
“Cities that deliver those environments are therefore likely to consolidate their positions as destinations for tech talent and occupiers who want to attract the best staff,” Ms Wightman said.
The report’s release follows the Victorian Government’s recent announcement that Texas-based software firm, AgileCraft, would open its Asia-Pacific headquarters in Melbourne.
Mr Dalidakis said AgileCraft was yet another example of a leading global tech company choosing Victoria as an entry point for the Asia-Pacific market.
“Over the past two years we have taken brand Victoria to the world, attracting more and more leading global companies to invest in the state’s booming tech sector,” Mr Dalidakis said.
AgileCraft Chief Executive Officer Steve Elliott said Melbourne’s emerging tech sector and close proximity to Asia made it a perfect location to set up its regional headquarters and expand throughout the Asia Pacific region.
“We consider ourselves to be an innovative company at AgileCraft and the Victorian Government made it clear to us that it is trying to attract innovative businesses to the state, so we look forward to being a part of the Victorian technology ecosystem,” Mr Elliot said.
Savills Tech Cities 2017 Buzz and Wellness Index 
<a href="https://www.propertyobserver.com.au/images/2017/03/22/Tech%20Cities%20-%20Overall%20Rankings.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/03/22/Tech%20Cities%20-%20Overall%20Rankings.png" alt="">
Savills Tech Cities 2017 overall rankings
<a href="https://www.propertyobserver.com.au/images/2017/03/22/Tech%20Cities%20-%20Buzz%20and%20Wellness%20Index.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/22/Tech%20Cities%20-%20Buzz%20and%20Wellness%20Index.jpg" alt="">  
About Savills Tech Cities
<a href="https://www.savills.co.uk/tech-cities" target="_blank">Savills Tech Cities</a> 2017 programme aims to understand the diverse factors that make places a good location choice for the tech sector; examining 22 global centres which have thriving and growing tech industries, home grown start-ups and incubators, and are at the top of global shopping lists for tech companies looking for space in which to locate. <a href="https://www.savills.co.uk/tech-cities/index" target="_blank">Explore the globe</a>.
 
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Savills research finds Melbourne top ‘tech city’ in Australia   

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From hip lobbies with a coffee shop ambiance to shared living spaces linking guest rooms, more hotels are turning their focus to providing inviting community areas.
For corporate travellers, it may mean sending a few emails from a co-working alcove complete with power and USB outlets, while leisure visitors may linger around tables stacked with board games or post photos to social media from the lounging zones.
“Today’s travelers often place greater value on convenience, sense of place and community than they do on the traditional luxuries offered by hotels,” says David A. Black, Americas Hotels Lead, JLL Project and Development Services. “That’s one reason why hotel companies are developing so many soft brands that have an emphasis on communal areas with spaces and experiences that bring people together in new ways.” 
The forthcoming Tru by Hilton is just one of the growing number of hotel brands encouraging its guests to spend less time in their rooms and more in specially designed communal areas. Aimed at Millennials — or people with a “Millennial mindset” — who want to connect with other travelers, the hotel’s innovative space called “The Hive” embodies the brand. Instead of a traditional lobby, guests have access to four zones — work, play, lounge, and eat — all designed for interaction and engagement.
Moxy Hotels, Marriott’s new boutique hotel brand, offers an industrial-style lobby with fun games on hand, along with coffee and full-service bars. And while not everyone will fancy the hotel’s signature feature, a communal ironing nook, Moxy Hotels is banking on Millennials appreciating its fresh approach.
“Some of this communal space is nothing new,” says Lauro Ferroni, JLL’s Global Head of Hotels &amp; Hospitality Research. “Hotels have always had lobbies, pools, bars and restaurants. But now the design and features of these communal spaces are being driven by hotels wanting to appeal to younger travelers.”
Going beyond the idea of a pool and sun-loungers as an outdoor communal space, one New Jersey hotel, The Asbury, has created a perennial backyard barbecue zone with Ping-Pong tables, live music, craft beer (served from a converted VW van), and food trucks.
<h2>Getting travelers together</h2>
The growing popularity of home rental platforms, such as Airbnb and HomeAway, and boutique hostels is also driving hotels to find new ways to accommodate larger groups of friends and families traveling together.
Marriott’s mid-range brand Element, which is aimed at guests staying beyond a few nights, is testing blocks of private rooms built around a communal kitchen and living room. “Really it’s about a much more shared economy these days. It’s much more about socializing and a sense of community when you travel,” says Toni Stoeckl, a Global Brand Leader at Marriott, in an interview with KTLA earlier this year.
The challenge for hotels is designing their communal areas in a way that appeals to their target guests – and provides them the requisite amount of privacy.
“Although there has been a growing focus on the Millennial traveler, hotel brands can’t afford to ignore their more “seasoned” travelers,” says Black. “That’s why design solutions must be flexible enough to provide both communal spaces which appeal to the co-working, co-living generation as well as spaces which appeal to baby boomers.  It’s not a one size fits all approach.”
In addition, people traveling in a group have different needs and expectations to those traveling in a couple.
“When you’re traveling, the communal experiences could turn out to be the most memorable part of the trip,” says Ferroni. “Yet you’re also going to have a lot of people who will say right off the bat that they have no interest in trying something like this, whether they’re business travelers who need their own space to get the job done or leisure travelers who want some time on their own.”
<h2>Is communal the way forward?</h2>
With the concepts of co-living and co-working taking off, bigger and more innovative social areas in hotels could well be in the cards – especially for brands targeting younger segments of the market.
Within the U.S., Ferroni believes it’s a concept that will take root in the bigger cities.
“I think it’s going to gain traction in large gateway markets like New York, Miami, or San Francisco where you have a large share of people coming from Europe who might be more comfortable with this concept,” he says.
Hotel executives might not be sure whether this is the next big thing, speculates Ferroni, but he says that it would be foolish for them not to give it a try. “They’re looking at it from a trial-and-error standpoint. Large hotel companies that want to be innovative can’t afford to ignore the potential of shared spaces – even if Millennials are not their key audience.”
This article by Laura Agadoni was featured in <a href="https://www.jllrealviews.com/industries/hotels-take-a-fresh-look-at-communal-spaces/" target="_blank">JLL Real Views</a>.
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Hotels take a fresh look at communal spaces

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Australian Prudential Regulation Authority chair Wayne Byres has defended bank profitability as a necessary buffer for a likely economic downturn.
Byres said a typical economic cycle is "eight good years and two tough years" and that banks should be able to "earn something above your cost of equity in the good times where inevitably you build up the buffers to hold you in good stead when the cycle turns."
"We are very conscious that we are running on a long cycle and inevitably it must turn." 
"We haven't found a way to abolish the cycle. We are a small country in a global economy and as well as we manage things in this country we always get tossed around by events overseas."
Byres said while the system was in good shape, there should be a focus on building up its resilience.
"At some point the cycle will turn and we want to be able to say, when the times were good, we put aside something for a rainy day. The rainy day has arrived and we can move through it."
APRA's function is to protect the savings deposited into the banking system by making sure these institutions are sound.
ASIC and APRA form part of the Council of Financial Regulators, along with the Reserve Bank and the Treasury, and work in concert on certain issues, including macroprudential policies 
Byres refused to even mention the "B-word", the Australian Financial Review noted after he spoke at an annual ASIC forum.
"It is superficial. It implies we are binary. We are in it [a bubble], we are not in it. If we are in it we're all going to [be] ruined. If we are not in it we're going to be right. It's too simplistic."
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Bank profits needed for an inevitable rainy day: APRA's Wayne Byres

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The prospect of allowing young people access to their superannuation for a home deposit has been previously dismissed by Malcolm Turnbull as a “thoroughly bad idea”.
But I don't think it ought be ruled out. 
It needs consideration as proposals to alter negative gearing and capital gains tax arrangements do nothing to help first-home buyers obtain their deposit.
There are some wise MPs pushing Treasurer Scott Morrison to allow indirect access to assist buyers onto the property ladder.
There are those against the plan, warning it would drive up housing prices and that allowing first-home buyers early access to super will set back a retirement income system that is still struggling to fully ­deliver. 
Ofcourse currently a household in difficulty with their mortgage has the chance to access superannuation to clear arrears sometimes, whereas a first home buyer in an otherwise good financial condition cannot temporarily access their super for a deposit.
The ­proposal was dismissed by Turnbull when floated by ­former treasurer Joe Hockey in 2015.
Financial advisor Daryl Dixon recently said the Australian government should look at the New Zealand access via KiwiSaver super accounts.
Dixon noted for many Australians without access to parental help, being granted partial or full access to their compulsory super accounts provided their best chance to obtain a deposit to gain entry to the housing market.
The New Zealand scheme sets limits on the value of the house and income of the purchasers.
Australian super funds may object to losing funds under management, but the suggestion is the use of mortgage offset account facilities provides an effective means to ensure that the money used as a house deposit is not lost to the super system.
The money invested in the offset account would remain the property of the super fund with the income from the offset account reducing the cost of servicing the mortgage.
For the government the annual cost would be limited to the loss of the 15 percent income tax that would otherwise be collected on super fund earnings.
Dixon suggested safeguards could limit use of the super fund mortgage offset account to 10 years by when inflation and mortgage repayments have built up the house owners’ equity. 
The Australian government could also look at Canada’s Home Buyer’s Plan where Canandian first home buyers can withdraw up to $25,000 from their super with funds repaid within 15 years.
Yes redirecting members super balances early in their contribution cycle will hurt the compounding effect of returns and lead to lower retirement balances. 
But Generation Y have been accruing more debt at an earlier age than any of their predecessors. With 40 percent of 18- to 35-year-olds with a study-related HECS debt, this generation are already on the back foot before they have even begun their careers.
This article first appeared in the Saturday Daily Telegraph.
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Allowing first home buyers to access their super to buy a house 

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

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Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
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[smartcode_project_cta:default project_id=4896]

Jonathan Chancellor

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