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There's a very strong offer on the table for Sark, the Toorak mansion owned by the retailing guru Mark McInnes and wife Lisa Kelly.
The Premier Investments chief executive only listed the 1930 English style home late last month.
And it was bought for $9.25 million only last May.
<a href="https://www.realestate.com.au/property-house-vic-toorak-124583774" target="_blank">Interest from $10 million</a> was quoted by Marshall White agents Marcus Chiminello and Nicole French.
Set on the exclusive Hopetoun Road, the six bedroom, three bathroom home is framed by a deep established garden with pool and spa on its 2023 sqm.
There's also a self-contained two storey cottage.
McInnes still maintains his three apartment North Bondi amalgamation that cost him a combined $7.1 million in 2007.
McInnes was made head of Premier Investments by the Melbourne billionaire Solomon Lew in 2011, having previously run David Jones in Sydney for seven years.
This article first appeared in The Weekend Australian's Mansions Australia section. 
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Strong offer made for Toorak mansion Sark

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A three level Fitzroy warehouse conversion fetched $2.1 million at auction. 
The renovated Brooks Building at <a href="https://www.realestate.com.au/property-house-vic-fitzroy-124507698" target="_blank">51A Little Smith St, Fitzroy</a>, features a loft bedroom with a balcony, offering views of Collingwood and Fitzroy.
There is a light-filled open-plan living area with exposed beams. 
There were four bidders at the Nelson Alexander auction.
It was announced on the market at $1.8 million.
Nelson Alexander Fitzroy agent Luke Sacco said the building conversion was about three decades ago to retain the raw features of its warehouse heritage.
It has the high ceilings, exposed brick, old timber floors.
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On the ground floor, there is a lockup garage and two bedrooms.
There are original warehouse windows with wooden floors and white-painted bricks complement the exposed beams in the lounge and dining area.
The property had pre-auction price expectations of $1.55 million to $1.65 million.
CoreLogic says it last traded in 1978 at $7500.
Last year an undeveloped Fitzroy North warehouse sold at auction.
The 6A/1 Bik Lane offering sold for $1.216 million, just over its $1.1 million reserve set by the artist Polly Courtin who'd been there a decade.
The 120sq m building space boasted ceilings high enough to fit three storeys inside, the Nelson Alexander marketing suggested.
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Fitzroy warehouse conversion sells at $2.1 million 

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<div>After 11 years at RPData and CoreLogic, Graham Mirabito has announced that he is leaving the property data company.</div>
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<div>He will be pursuing his passion for nurturing innovative start-ups and early stage companies.</div>
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<div>The CoreLogic business includes operations in Australia, New Zealand and the United Kingdom, with more than 700 engaged staff delivering insights, analytics, solutions, services and data to more than 40,000 clients.</div>
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<div>"Graham will transition during the next few months," said the US-based CoreLogic President and CEO Anand Nallathambi.</div>
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<div>Anand went on to suggest that Graham had been helpful across the whole company on its expansionary path.</div>
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<div>"Graham has been instrumental in reaching across the entire CoreLogic enterprise to expand collaboration, ideation and synergies, which have contributed to expansion of our platforms, products and solutions across geographies."</div>
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<div>Last July Lisa Claes was announced to be CoreLogic's managing director for Australia and New Zealand taking over from Graham Mirabito, who was set to become the US-based group's international chief executive.</div>
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Graham Mirabito to depart CoreLogic RP Data 

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GUEST OBSERVER
The Reserve Bank hasn’t materially changed inflation forecasts but it has trimmed economic forecasts over the near-term. Economic growth is now seen at 1.5-2.5 percent in June 2017, around one percentage point lower than previous forecasts.
Inflation is expected to hold between 1.5-2.5 percent over the forecast period – below or at the low end of the 2-3 percent target band.
Home loans: The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.4 percent in December after rising by 1.3 percent in November. The value of loans (owner occupier and investment) rose by 0.4 percent in December after rising by 2.2 percent in November.
Owner-occupier loans rose by 1.3 percent but investment loans fell by 1 percent.
What does it all mean?
The latest Monetary Policy statement has given the Reserve Bank the opportunity to flesh out how the economy is tracking. And it seems like the Central Bank is in the glass half-full camp. Policymakers have updated economic growth and inflation forecasts and it is clear that growth remains relatively sound.
Interestingly inflation is expected to remain below or at the low end of the Reserve Bank 2-3 percent target band over the next two years. Essentially the assumption of subdued inflation is despite the potential inflationary impact of higher commodity prices - which suggests a lack of inflation across the rest of the economy.
The assumption of low inflation and stronger economic growth over time suggests that interest rates remain on hold.
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 Importantly given that near-term growth forecasts have been downgraded and now expected to hold between 1.5- 2.5 percent, it is clear the central bank is prepared for a degree of softness across the domestic economy. Interestingly when coupled with subdued inflation it suggests policymakers will keep the door open to provide further stimulus. However it should be made clear that the central bank is essentially holding a neutral policy stance. The economy was essentially lacklustre throughput the majority of 2016 despite unemployment drifting to 3-year lows. However the anecdotal evidence across the economy suggest that activity levels are now lifting.
 In that context the latest housing finance data is encouraging. Not only did the number of overall housing finance commitments lift for the second straight month, but it was driven by owner-occupier loans rather than investment loans. Overall the Reserve Bank is correct in its view that conditions in the housing market are very mixed.
What do the figures show?
Housing finance - number
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<li>The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.4 percent in December after rising by 1.3 percent in November.</li>
<li>Excluding the refinancing of dwellings, the number of loans was up by 2.4 percent.</li>
<li>  The number of new home loans was down by 4.4 per cent on a year ago.</li>
<li>  Loans by owner-occupiers for the construction of homes fell by 0.3 per cent in December.</li>
<li>  Loans to buy newly-erected dwellings rose by 3.2 per cent.</li>
<li>  Loans for the purchase of established dwellings (excluding refinancing) rose by 0.3 per cent.</li>
<li>  The number of refinancing transactions fell by 3.5 per cent.</li>
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Lending across states/territories: NSW (+1.5 percent); Victoria (+0.8 percent); Queensland (-1.3 percent); South Australia (-1.9 percent), Western Australia (-2.7 percent); Tasmania (-2.7 percent); Northern Territory (+0.5 percent); ACT (6.3 percent).
Housing finance - value
The value of new housing commitments (owner occupier and investment) rose by 0.4 percent in December after rising by 2.2 percent in November. Owner-occupier loans rose by 1.3 percent but investment loans fell by 1 percent. The value of loans by owner-occupiers and investors to build new homes fell by 1 percent in December after rising by 5 percent in November. The value of loans to build new homes fell from $3.1 billion to $2.74 billion in December.
Housing finance – other statistics
The proportion of first-time buyers in the home loan market held steady at 13.8 percent in December (long-term average 19.4 percent).
The proportion of fixed rate loans rose from 12.5 percent to 14.6 percent in December – a seven month high. And the average home loan across Australia stood at $375,800 in December, down 0.8 percent in the month but up 0.5 percent on a year ago.
Key take-aways from the Reserve Bank report
 Below are our key “take-aways” from the Reserve Bank’s latest quarterly review.
“Inflation is expected to increase as the effects of some factors that have been weighing on domestic cost pressures dissipate”(p3)</div>
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 “Headline inflation is expected to pick up to 2 per cent in early 2017. The increase in underlying inflation is likely to be gradual. These forecasts are little changed from those published in the November Statement on Monetary Policy” (p3)</div>
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 “Wage growth is forecast to increase only gradually” (p3) “ there has been some evidence from surveys and liaison with firms suggesting that wage growth is unlikely to ease further.” (p3)
  “Overall conditions in the established housing market have strengthened further, although there is significant variation across the country.” (p2)</div>
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   “The global economy entered 2017 with more momentum than earlier expected.” (p1)</div>
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   “Global inflationary pressures are somewhat stronger than they have been for some time,” (p1)</div>
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   “ real GDP looks to have increased in the December quarter. Beyond that, the outlook for the domestic economy is little changed from three months ago and the ongoing adjustment to the end of the mining investment boom is expected to continue.” (p2)   “Real GDP declined in the September quarter, a significantly weaker outcome than was anticipated. Some of the decline can be attributed to disruptions to coal supply and bad weather affecting construction activity.” (p1) 
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<div class="column">“Although investor activity is currently quite strong, at least in Sydney and Melbourne, history shows that sentiment can turn quickly, especially if prices start to fall.” (p62)</div>
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   “The forecast for consumption growth has been adjusted lower and implies a stable saving ratio over the forecast period, rather than declining, as previously assumed.” (p61)</div>
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   “The unemployment rate is expected to edge lower over the forecast period, suggesting only a modest reduction in the degree of spare capacity in the labour market from current levels.” (p58)</div>
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   “ exports of Australian goods and services in aggregate are forecast to continue growing at a solid pace.) (p58)</div>
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   “Given the stronger tone of more recent indicators, consumption growth is expected to be a little stronger than in mid 2016 over the forecast period.” (p57)</div>
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   “GDP growth is forecast to increase to 21⁄2–31⁄2 per cent in late 2017, and to be above potential for most of the forecast period.” (p57)</div>
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   “Some of the factors weighing on reported GDP growth in the September quarter were temporary and have not materially affected the outlook for growth.” (p56)</div>
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 “While considerable uncertainty remains about the economic policies of the new US administration, reductions in personal and corporate taxes are likely.”</div>
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<div class="column">“However, there is a rising risk that more restrictive and protectionist trade and immigration policies under the new administration could harm global growth prospects.” (p55)</div>
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<div class="column">  “A significant portion of the increase in investor credit growth is also likely to reflect the extension of credit to investors settling the payment of newly completed apartments that were purchased off the plan at an earlier time.” (p46) </div>
<div class="column"> “More recently, overall debt funding costs (by major banks) are estimated to have been stable, despite a little upward pressure from the increasing share and cost of long-term debt and deposit funding.” (p43)   “Much of the apartment construction is geographically concentrated, particularly in inner-city Melbourne and Brisbane. This increases the chance that (localised) oversupply could develop, and would exacerbate the effect on local area prices if that were to occur.” (p37)
What is the importance of the economic data?
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market. The Reserve Bank releases its Statement on Monetary Policy each quarter. The Statement is the Reserve Bank’s assessment of economic and financial conditions and also contains the latest inflation views. The Statement is crucial is assessing the short-term outlook for interest rates.
What are the implications for interest rates and investors?
The rebalancing of the domestic economy away from mining investment will remain the trigger for interest rates, especially given that inflation is subdued and expected to remain at the low end of the 2-3 per cent target band. However a number of indicators make rate cuts look less likely than even six months ago – improved Chinese activity levels, a stronger terms of trade, a modest lift in domestic activity and the Reserve Bank view that inflation has bottomed.</div>
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<div class="column">The home finance market is not a driver of interest rates at present. The Reserve Bank won’t be lifting or cutting rates on the lending trends. But with borrowers now looking more carefully at the market, competition across lenders looks likely to heat up. </div>
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<div class="column">Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></div>
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RBA tinkers with growth forecasts: Savanth Sebastian

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GUEST OBSERVER
With the RBA now expecting underlying inflation to move into the middle of the target band by the end of the forecast period, the Bank seems firmly on hold. 
The Bank sees wages growth to be broadly unchanged this year, as some of the factors which have been holding down wages dissipate, after which it picks up gradually over 2018 and 2019. 
 We continue to see the cash rate on hold at 1.5 percent. 
<a href="https://www.propertyobserver.com.au/images/2017/02/10/Screen%20Shot%202017-02-10%20at%201.49.05%20PM.png" target="_blank">Click to enlarge</a>
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DETAILS
The rising profile for underlying inflation is significant. The new forecast profile for underlying inflation shows inflation running between 1½-2½ percent until the end of 2018, after which it ticks up to 2-3 percent by mid-2019. While this is still a solid two years away it suggests that the Bank is more confident that inflation will eventually pick up. The Bank notes that some of the factors that have been holding down inflation, like the falling terms of trade and the decline in mining employment, are dissipating and also cites “evidence from surveys and liaison with firms suggesting that wage growth is unlikely to ease further”. 
There were significant downward revisions to GDP growth in the near term and small downward revisions further out but we would not read too much into these. That is, the downgrade to the near term forecasts reflects base effects from the (temporary) weakness in Q3 GDP, while the small downgrade to the further out forecasts to 2¾-3¾, rather than the previous 3-4, in our view seems a much more achievable estimate. The Bank noted that it has lifted its forecasts for trading partner growth and the terms of trade, but lowered its estimates for consumer spending and employment growth.
Interestingly, the RBA published the unemployment rate forecasts in its table for the first time. It expects the unemployment rate at 5-6 percent over the forecast horizon, broadly similar to the previous forecasts included in its chart.
The RBA seems accepting of the level of the AUD. The currency hardly rated a mention in today’s SoMP which, together with Governor Lowe’s comments last night, suggests that at current levels the RBA sees the dollar as close to fair value.
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
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Rising profile for underlying inflation is significant: ANZ's Felicity Emmett

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GUEST OBSERVER
The RBA has downwardly revised its near term growth forecasts as well as shaving a bit from their medium term projections. Inflation forecasts remain intact and both headline and core inflation are expected to gradually rise from here.
The RBA see the unemployment rate tracking sideways over 2017 at 5 3⁄4 percent.
We have the RBA cash rate on hold at 1.5 percent throughout 2017.
The RBA’s updated forecasts are further evidence that Governor Lowe doesn’t intend to take the cash rate lower. The Bank has essentially looked through the QIII contraction in the economy and has forecast decent growth outcomes over the next two years. In addition, headline inflation is forecast to return to target over 2017. As such, the Bank retains a neutral bias despite there being no forward guidance in today’s Statement on Monetary Policy (SMP).
Looking at the Bank’s through the year forecasts implies that the pace of growth picks up from 2 percent/pa mid-2017 to an above-trend 3 percent by year end. It is expected to remain above trend over the rest of the forecast period (mid-2019).
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LNG production, infrastructure spend and a lift in non-mining investment are expected to push growth higher. The Australian economy would be deemed to be in good health if these outcomes can be achieved. While we think they are possible, they look a best case scenario and the risk is that growth outcomes undershoot the Bank’s forecasts. The Bank has upgraded its global growth forecasts on fiscal stimulus in the US.
Inflation is forecast to gradually rise. But core inflation is not expected to get back to target until 2018. The RBA sees headline inflation rising a little quicker because of price rises in fuel and tobacco. These forecasts look about right to us, but like the growth forecasts, the risks are skewed to the downside.
The Bank retains a temperate assessment on the labour market. Employment growth is forecast to basically run at a level that would see the unemployment rate crab sideways at 5 3⁄4 percent. Normally we would expect the unemployment rate to be falling if growth is running above trend. The GDP and unemployment rate forecasts are reconciled by the big contribution to growth that will come from LNG production which is not labour intensive and also a possible decline in underemployment.
The RBA has confused us a little with their assessment on non-mining business investment. In Lowe’s Statement on Tuesday, the Governor optimistically stated that, “some further pick-up in non-mining business investment is also expected.” The word “further” stood out to us because in our view we are yet to observe a meaningful lift in private non-mining investment. Today the RBA agreed with us by nothing that, “non- mining business investment has been weak for some time, despite the support provided by low interest rates and the earlier depreciation of the exchange rate. The outlook for non-mining business investment is relatively subdued in the near term”. We will await further clarity from Martin Place on this one.
Rate cuts look off the table for now given the strong growth in dwelling prices (largely Sydney and Melbourne) and the Bank’s relatively upbeat assessment of the economic outlook. Despite below target inflation, concerns around the further build-up of household debt and strong dwelling price growth mean that it would take a shift in the activity data for policy easing to come back onto the table. In our view, trends in the labour market are the one to watch. It would take a loss of momentum in job creation for Lowe to entertain the idea of taking the policy rate lower. We see rates on hold in 2017.
The risk, however, sits with easing while ever inflation is below target. 
RBA Key Views
Terms-of-Trade. The terms of trade are expected to decline gradually over 2017, but are expected to remain above their recent trough and be higher than previously forecast.
Unemployment rate. Unemployment rate to basically trend sideways at 53⁄4% in 2017. But it is expected to edge lower over the forecast period.
World growth. Growth forecasts for 2017 and 2018 have been revised a little higher reflecting the recent better data and the prospect of more stimulatory fiscal policy in the US.
Inflation. Inflationary pressures to be benign. Forecasts remained unchanged from November SMP. Inflation to gradually rise. But core inflation not expected to get back to target until 2018. Headline inflation rising a little quicker because of price rises in fuel and tobacco
Wages. Gradual recovery in wage growth from late 2017 assumes that some of the factors that have been weighing on wages will gradually dissipate.
Housing construction. The large amount of work in the pipeline should continue to support a high level of dwelling investment for the foreseeable future.
Dwelling Prices. Conditions in the housing market in Sydney and Melbourne strengthened over the second half of 2016, but they have remained relatively subdued elsewhere. Inflation in rents has eased to multi-decade lows.
Australia’s GDP. The pace of growth picks up from 2%pa mid- 2017 to an above-trend 3% by year end. Its forecasts to remain above trend throughout the rest of the forecast period. .
Fiscal policy. Little change to the forecasts of the consolidated deficit in 2016/17 of around 3 per cent of GDP which implies a modest stimulus to growth.
Oil prices. Higher oil prices should oil are expected to contribute to inflationary pressures in the period ahead. .
CBA’s View
The terms of trade are expected to drift lower over 2017 due to a pullback in commodity prices. But we have seen the low point for the cycle.
The unemployment should grind a little lower over 2017. Some job losses still to come out of the resources sector as the last of the major projects finish. NSW and Vic to have the strongest labour markets.
Global growth to lift a little to around 3 1⁄4 percent in 2017. Advanced economies, like the US &amp; Canada, likely to have above trend growth. China growth to firm at around 6.8 percent. UK economy to slow under Brexit impact and Eurozone growth to be similar to 2016.
Underlying CPI to remain below the RBA target band (2-3 percent) in 2017. Headline inflation to within the target band in H1 2017. Weak wages growth is keeping a lid on domestic inflation while tradables inflation is weak due the AUD holding up in the mid-USD0.70s.
Wages growth remains feeble, even with firmer commodity prices. Wages growth unlikely to materially lift labour market underutilisation falls. Job security concerns remain elevated and are also keeping a lid on wages growth.
Building approvals have peaked for the cycle and will continue to taper off over 2017. There is a significant pipeline of dwellings yet-to- commenced and completed. Commencements to be a robust 210k in 2017, slightly down from 220k in 2016. Alterations and additions spending likely to gradually rise.
Dwelling price growth is expected to moderate over 2017. Varied price growth across different regions to continue. Affordability remains a significant problem for low and middle income households. An increase in supply to stem dwelling price growth.
We expect the economy to grow by 2.4 percent in 2016 and 2.6 percent in 2017. Net exports, public investment and household spending to lift growth. This is partly offset by a drag from business investment.
Fiscal pressures to remain on Federal Budget and reform is slow and elongated. Public capex to lift. S&amp;P have put Australia’s AAA credit rating on negative outlook due to budget deficits.
Oil prices to drift a little lower which supports consumer spending. But because Australia is a net energy exporter, lower oil prices are a negative for terms of trade. 
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Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905">here</a>.
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Rate cuts off the table given strong growth in dwelling prices: Gareth Aird

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Reserve Bank Governor Philip Lowe's address to the A50 Australian Economic Forum Dinner.
I would like to offer you all a very warm welcome to Sydney for the A50 Forum. To those of you who have travelled to our shores from afar, thank you for visiting.
I am confident that you will find your investment in time a worthwhile one. In just a short period, you will hear from the leaders in the worlds of politics, business, the policy institutions and the investment community.
You will find an openness and transparency that is not always seen elsewhere around the world and you will experience a genuine desire to share perspectives.
You also find a country that is prosperous and wealthy; Australians enjoy a standard of living that relatively few people around the world enjoy.
You find a country that has grown consistently for some decades now, despite a pretty volatile global environment. Australia's year-ended growth rate has been in positive territory since 1991.
You find a country that has a strong and stable banking system. We have deep and liquid financial markets. The public here question why banks are so profitable, not why they performed so badly during the global financial crisis.
You find a country that is well placed to benefit from growth in Asia, not only because of our natural resources base, but also because of stronger demand for our food and a wide range of services.
You find a country with a growing and diverse population and one that has a high degree of social cohesion. Our population has recently been growing at around 1½ per cent a year, and around 40 per cent of us were either born overseas or have one parent born overseas. This brings a dynamism that isn't there in countries with stagnant and less diverse populations.
You also find a country with strong public institutions and whose economy is resilient and flexible. We have a demonstrated capacity to address our problems and to adjust to the changing world that we live in. In the past decade, our flexibility has meant that we have been able to maintain economic stability through the biggest investment boom in the resources sector in more than a century, and the subsequent unwinding of that boom.
You also find a country with positive interest rates and a conventional monetary policy framework. The central bank is independent, analytical and pragmatic. Our inflation target is focused on medium-term outcomes. This approach means that we have the flexibility to pursue our price stability objective while taking into account developments in balance sheets in a way that can be difficult to do in more rigid monetary policy frameworks.
So that is Australia. Welcome. There is a lot to like here.
In the spirit of openness and transparency though that I mentioned a moment ago, we are not without our challenges. I will talk about a few of those in a moment.
I first want to say a few words about openness to trade and investment and its role in Australia's prosperity.
Australia is a country that has benefited greatly from the open international trading system. Our ability to sell to the rest of the world goods and services that we can produce really well has boosted our living standards. We also benefit from being able to buy goods produced overseas. And the need to compete with others is one of the things that leads us to strive to do things better.
Australians have also benefited from the relatively free flow of financial capital. Year after year, for more than two centuries now, capital from the rest of the world has helped build our country. If we had had to rely on just our own resources, we would not be enjoying the prosperity that we do today. Our asset base and our productive capacity would be lower, and so too would our standard of living. As investors, Australians have also benefited from being able to diversify our portfolios by buying foreign assets and by building strong businesses overseas.
So, again, that is Australia. We provide a very good illustration of how a medium-sized country that is committed to an open international order, has a strong role for markets and a floating exchange rate, a largely open capital account and a dynamic and innovative financial sector can prosper in today's complex world.
I promised openness and transparency. So now to some of the issues, or challenges, that we face.
The first is to reinvigorate productivity growth. Australia, like many other advanced economies has experienced slower productivity growth over the past decade. In our case, this has been partly due to a large increase in mining investment in response to soaring commodity prices. In recent years though, as the new production made possible by all this investment has come on stream, the productivity figures have improved. This is clearly good news, although underlying productivity growth remains relatively modest.
A number of structural factors are at work here. If we do not address these factors, then we will have to adjust to noticeably slower growth in our average incomes than we have become used to. In some ways, this adjustment has already started and it is proving difficult. On the more positive side, there is no shortage of things that could be done to lift our performance. The challenge is that most of these ideas require difficult political trade-offs.
A related challenge is how best to capitalise on the opportunity that the economic development of the Asian region provides. We have benefited from the surge in commodity prices driven by the rapid industrialisation of China, and from the increased demand for our food products, tourism, education and other services as incomes in Asia have grown.
But it is a competitive world out there, and other countries see these opportunities too. So we need to find ways of building upon our strengths to bring goods and services to growing Asian markets at competitive prices. Lifting our productivity is a good place to start.
A third issue is the task of providing adequate high-quality infrastructure to help our citizens be as productive as they can and enjoy a high quality of life. As I said earlier, our population is growing strongly which is a source of dynamism for our economy. But this growth can put strains on our infrastructure, including on transport infrastructure.
These strains can reduce public support for a growing population. They can also impair our ability to compete and to be as productive as we can be. Good transport infrastructure, for example, opens up opportunities for people and opens markets. It also improves communities. Investment in transportation infrastructure can also play an important role in addressing housing affordability, which is an increasingly important issue.
Infrastructure investment does of course need to be paid for. The positive news here is that there is no shortage of finance for the right projects. The task we face then is to identify the best possible projects, harness the planning capacity of government, design the best deal structures to attract private finance where it makes sense to do so, make sure that the construction process is as efficient as possible and price use appropriately. These are challenging things to do, but they are not beyond our capabilities.
The final issue that I will mention this evening is that of ensuring that our public finances are on the right track. Australia has a good historical record here. Net government debt, as a share of GDP, is still low, although it is higher than it used to be. Our good record has provided us with a form of insurance. It meant that when difficult times did strike last decade, fiscal policy had the capacity to play a stabilising role. We had options that not all other countries enjoyed.
Looking forward, we need to make sure that we continue to have this insurance. We can do this by rebuilding our fiscal buffers. This too is a challenging thing to do, particularly given the additional demands being placed on government. A related complication is that simultaneously we need to make sure that our tax system is internationally competitive.
One example of this complication is in the area of corporate tax, where there is a form of international tax competition going on in an effort to attract foreign investment. Like other countries, we face the challenge of responding to this, while achieving a balance between recurrent spending and fiscal revenue.
So those are some of the issues we face. Of course, there are others too. No doubt you will discuss these over the course of this conference.
I would like now to turn to the near-term outlook for the Australian economy. The Reserve Bank will be releasing updated detailed forecasts tomorrow in our quarterly Statement on Monetary Policy.
For 2017 and 2018, these forecasts will show little change from our earlier forecasts. Over the next couple of years we expect GDP growth to be around the 3 percent mark. In both years it will be boosted by a significant pick-up in LNG production. And the headwinds that we have been experiencing from the unwinding of the biggest mining investment boom in a century will blow themselves out. Indeed, we are already around 90 per cent of the way through the fall from the peak to expected trough in mining investment.
Another headwind we have had over recent years – that is the decline in our terms of trade – has already stopped. Since earlier last year, a rise in global commodity prices has provided a boost to our national income. And the improvement in the global economy since late last year should also help us.
So, with the end of the unwinding of the mining investment boom in sight, the economy is in reasonable shape. Unexpectedly, GDP did fall in the September quarter last year, but this largely reflected a confluence of temporary factors. We expect that in the December quarter, the economy returned to reasonable growth.
Inflation remains low, running at around 1½ per cent in both headline and underlying terms. Importantly, inflation is not expected to fall further. Instead, our central forecast is for underlying inflation to gradually rise over the next couple of years, and for headline inflation to increase a bit more quickly, boosted by increases in oil and tobacco prices.
We continue to pay close attention to the housing market and to household balance sheets. The picture varies widely across the country. Prices for houses in Sydney and Melbourne are rising strongly, but apartment prices in some cities, including Perth and Brisbane have fallen. The population is growing strongly, but there is a large number of additional dwellings to come onto the overall market this year. Growth in rents is weak, but vacancy rates in most markets are not unusually high. And investor demand looks to have strengthened in the closing months of 2016. So it is a complex picture.
One reason for trying to understand this complex picture is that the level of household debt is relatively high. Overall, households are coping reasonably well with this. But there are clearly risks. So it is a positive development that over the past couple of years, banks have tightened their lending standards in some areas. This tightening was partly prompted by the supervisory measures put in place by the prudential regulator, APRA, and the Reserve Bank and APRA continue to work closely together monitoring developments.
Another issue that we are paying close attention to is developments in the labour market. Employment growth slowed over 2016 and the growth that did take place was almost entirely in part-time employment. As is the case with the housing market, conditions vary across the country. Looking forward, the number of job vacancies and job ads suggest that some strengthening in employment growth might be in prospect. Our central forecast though is for the unemployment rate to remain close to its current level for some time to come.
In summary then, the Bank's central scenario is for some pick-up in economic growth and for inflation to move gradually higher. As always, though, there are risks around that outlook. As our record demonstrates, our economy does have a degree of resilience and flexibility that has allowed us to maintain stability during a pretty difficult time in the global economy.
There is no reason that this can't continue. But we do need to continue to build that resilience, while we take advantage of the considerable advantages that we have as a nation.
 
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Households coping reasonably well with debt: RBA’s Philip Lowe 

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Across inner Melbourne, townhouse developments are becoming increasingly common, according to Secret Agent's latest report.
With limited block sizes closer to the city, developers have to constantly negotiate the size of the actual house with the amount of land available.
Because of these varying levels of building density, Secret Agent wanted to find out if there was a ‘sweet spot’ in the ratio between indoor area and land area.
Are we paying more for a certain ratio?
For the purpose of this bulletin, density refers specifically to the ratio between indoor built area to total land area.
See the diagrams below.
Townhouses nearly always span multiple levels, meaning they often have more indoor area than total land area.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.54.59%20pm.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/2017/06/Screen%20Shot%202017-02-06%20at%201.54.59%20pm.jpg" alt="">
Our sample consisted of 232 townhouse sales across 29 suburbs in inner Melbourne, all of which took place between January and December 2016.
A hedonic regression model was used and controlled for area (suburb), sale date, number of bedrooms, bathrooms and car spaces, and size of indoor and outdoor habitable space.
Overall, the ratio of indoor area to land area (in m2) did not have a statistically significant impact on townhouses as a continuous variable (i.e. not categorised).
"However, if we group townhouses with similar ratios into different ranges (e.g. 1:1.5 to 1:1.75), we found that an initial increase in the ratio (i.e. more dense development) led to an increase in average sale price, but the trend quickly reverses as the ratio increases further," the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.55.07%20pm.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/2017/06/Screen%20Shot%202017-02-06%20at%201.55.07%20pm.jpg" alt="">
The only ratio that had any significant positive impact on expected sale price was a 1:1 ratio, up to a 1:1.27 ratio.
On average, townhouses in this category had a land area of 95m2 and an indoor square metre rate of 109m2.
Additionally, these properties had outdoor space (land area not occupied by the building) of 34m2, which is about 36% of the total land, however this was not a prerequesite for the 'sweet spot'.
It is expected that townhouses in the 1:1 to 1:1.27 range can sell for up to 15.15 percent more than denser developments with twice as much indoor area as the land size.
While there is always a demand for bigger houses, it's important to remember that there is such a thing as too much space.
Property Observer found these townhouses currently on the market in Melbourne.
A two bedroom townhouse in Richmond, <a href="https://www.realestate.com.au/property-townhouse-vic-richmond-124572226" target="_blank">11/22 Buckingham Street</a>, with roof top views (pictured above) is currently on the market for between $720,000 - $780,000.
In Malvern East, the three level three bedroom townhome (below) at <a href="https://www.realestate.com.au/property-townhouse-vic-malvern+east-124689830" target="_blank">1039E Dandenong Road Malvern East</a> is up for auction March 11 through Krish Bundhoo and Courtney Matthews of Ray White Mount Waverley.
<img src="https://www.urban.com.au/images/2017/02/10/Screen%20Shot%202017-02-10%20at%209.28.32%20AM.png" alt="">
 <img src="https://www.urban.com.au/images/2017/02/10/Screen%20Shot%202017-02-10%20at%209.34.26%20AM.png" alt="" style="font-size: 12.16px;">
 A four bedroom townhouse in Doncaster East, <a href="https://www.realestate.com.au/property-townhouse-vic-doncaster+east-124553714" target="_blank">3/27 Paula Crescent</a>, (above) is on the market with expectations of between $1.05m - $1.15m.
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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The ideal density of a townhouse: Secret Agent

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Chloe Brookman, one half of children's nursery emporium Olli Ella, and her husband Charlie Wheeler are looking to flip their Balmain park-side home.
The couple paid $1.4 million for the Federation semi in 2015. It took two years to find the dilapidated doer-upper.  
Cobden &amp; Hayson agent Matthew Hayson is taking the <a href="https://www.realestate.com.au/property-house-nsw-balmain-124602582" target="_blank">three bedroom Elliott Street Federation-era home</a> to auction February 25. Around $1.85 million is tipped.
They turned it into an informal and relaxed family living space while maintaining some of its original features.
Spot the <a href="https://www.realestate.com.au/sold/property-house-nsw-balmain-120221625" target="_blank">difference</a>.
After tearing up the old carpets to show off the original oak flooring, French doors now lead out to a landscaped north-facing garden with custom seating.
Chloe, Charlie and their three kids moved to Australia four years ago after Chloe and her Clerkenwell sister Olivia set up Olli Ella when they were both living in London.
The cool children's nursery store has spread globally as Chloe headed up the company's new base in Australia.
This article first appeared in the Sunday Telegraph.
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Olli Ella's Chloe Brookman's stylish refurb to Balmain Federation

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GUEST OBSERVER
An overwhelming majority of Australians have made at least one financial decision that they regret, new data has revealed.
According to new research from Mortgage Choice, 68 percent of Australians have made a ‘regretful’ financial decision.
Interestingly, of those who admitted to regretting at least one of their financial decisions, almost one third said they made the decision off the back of information they gathered from friends, family members or strangers.
Meanwhile, less than 5 percent of Australians said they regretted a decision that they made in connection with advice they had received from a finance professional, such a mortgage broker or financial adviser.
In other words, those who sought professional advice were much less likely to regret a financial choice than those who didn’t. 
While the future is unpredictable, Australians who do their due diligence and speak to a professional are unlikely to go wrong financially, regardless of what asset class they are investing in.
Those who don’t do their due diligence can often be easily swayed by what they hear or even how a question is posed.
Behavioural economist Dr Lionel Page agreed and said studies show people will react to a particular choice in different ways depending on how it is presented.
We conducted a field study and asked Australians the same question in two different ways.
As anticipated, people reacted to the choice in different ways, depending on how it was presented to them.
When it comes to making good financial decisions, it is important to look at your options from all angles. That way, you can be truly content with your choice.
The field study shows why it is so important for Australians to seek out professional advice.
All financial decisions should be based on knowledge, research, and due diligence. Australians should take the time to investigate all of their options and speak to a professional before making any decisions.
If you take the time to speak to a professional who will help you research all of your options, you will be less likely to regret the financial decision down the track.
To watch the full field study video, <a href="https://www.vision6.com.au/ch/48415/5mtsn/2296824/a0aa4zkw7-1" target="_blank">click here</a>.
John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au/" target="_blank">Mortgage Choice</a>.
 
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Majority of Aussies have at least one financial regret: John Flavell

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.

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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.

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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.

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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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Jonathan Chancellor

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