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GUEST OBSERVER
I have written extensively about the need for the new Governor of the Reserve Bank to adjust his inflation target from 2–3 percent to 1–3 percent to reflect the reality of lower global inflation relative to the mid 1990’s, when the target was originally successfully adopted. 
However, as noted at the time, I held out little hope that the new Governor would take my advice. 
Accordingly, I was not surprised to see this week’s announcement that the target had been “confirmed” as 2–3 percent. However, there has been a subtle change from “on average over the cycle “ to “over time”. The Governor also emphasised in his Statement to the House of Representatives on Thursday that “the main drafting change is to make the link between monetary policy and financial stability a little more direct”. 
If we weigh those two changes together, they go some way to achieving the objective that I was most concerned about. My concern was that the new Governor might, when confronted with an impossible task of lifting inflation to above 2.5 percent to “average” 2.5 percent over the cycle, might unnecessarily impact asset markets. By using the vague term “over time” and linking policy directly to financial stability (read asset markets), he has allayed much of my concern on that issue. Markets are likely to eventually scale back prospects for further rate cuts given these developments. 
With that policy issue now resolved, I am allocating the rest of this note to some of the opportunities and risks now facing the evolving Australian economy. 
While overall growth in the Australian economy has been remarkably stable since the Global Financial Crisis – holding in the 2.5 percent – 3.0 percent range – the source of this growth has changed markedly. We have seen the huge terms of trade and mining investment cycles almost run their course. The early stages of these cycles were marked by strong income boosts, particularly in the mining states of Western Australia and Queensland, due to surging commodity prices and a spectacular mining investment cycle. Of course, these two cycles were linked, with the surge in commodity prices signalling a commercial opportunity to raise capacity, particularly in the LNG and coal seam gas sectors.
A necessary adjunct to these cycles was a strong AUD and elevated interest rates. The impact on the mining states of these uncompetitive market settings was minimal, with the strong volume and price boosts underpinning their prosperity. On the other hand, the south eastern states – New South Wales and Victoria – struggled under the weight of the high currency and rising interest rates. 
With the mining investment boom now unravelling; Australia’s terms of trade having peaked in September 2011 and both the Australian dollar and interest rates down substantially, Australia is now looking to other sources of demand to sustain its admirable growth record. Those sources are services exports; residential construction; public transport infrastructure and population growth. 
These growth sources are dominated by the south eastern states. New South Wales and Victoria have been the major beneficiaries of the services boom. Education exports; business services and tourism are the key drivers of this success. Between 2007 and 2013, net services exports subtracted around 0.3 – 0.8ppts from GDP growth on average over most years. Since 2013, these sectors are responsible for adding 0.3 – 0.7ppts to growth.
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Residential construction, particularly driven by the boom in high rise apartments, has shown a considerable lift in its contribution to growth. The construction “boom” has equally been centred around the south eastern states. 
Partly funded by the revenue windfalls from housing activity in their states, New South Wales and Victoria are also experiencing a welcome boost to public sector infrastructure investment. In the last six months, “projects committed or under construction” have lifted from $32bn at the beginning of this year to $51bn in New South Wales, and from $7bn to $21bn in Victoria. That compares with a net lift of only $7bn in all the other states combined. 
Finally we are now seeing population growth in both New South Wales and Victoria exceed the national pace for the first time in 20 years. 
But, just as the mining and commodity cycles were heavily dependent on China, so are these latest sources of growth. Growth in tourism and education is dominated by China. This partly reflects the sharp increase in China’s overall services trade deficit. This deficit has more than doubled as a proportion of GDP over the last five years, and in the first half of 2016 was more than 50 percent of the goods trade surplus. 
At some point, the Chinese authorities, who appear to have stabilised last year’s spectacular near USD 1 trillion loss in foreign reserves, may decide to slow this leakage. Certainly we have seen marked evidence of a tightening of capital controls, particularly for the non-corporate sector.
That tightening of capital controls might also impact the construction boom. The number of high rise apartments currently under construction in March this year (ABS latest) has surged to 110,000 – including 44,000 in New South Wales; 34,000 in Victoria; and 23,000 in Queensland. 
As discussed, the south east is dominating the high rise boom. However, a significant proportion of the buyers are offshore based (so called FIRB buyers). Local banks have stopped funding FIRB buyers, presenting risks to local developers who may have sold more than 50% of their stock to these buyers. 
It is generally accepted that apartment buyers in the Melbourne CBD have incurred some capital losses, while Sydney purchasers are seeing their profits squeezed. These liquidity and capital loss prospects may discourage foreign buyers, with the result of sharply slowing the apartment construction cycle. 
On the other hand, foreign banks are seeking to partly fill the funding gap, while large foreign developers may also be able to relieve liquidity stresses for these buyers. 
Overall, huge uncertainty prevails in this market, with possible outcomes ranging from ongoing spectacular momentum to a sudden liquidity driven slowdown. In those circumstances, one part of the recent boost to Australia’s growth story might fade quickly. 
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Future challenges for the Australian economy: Westpac's Bill Evans

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GUEST OBSERVER
Buying a house is, arguably, one of the largest purchases you will ever make. So imagine coming home to find your dream house has disappeared into a sinkhole, and that it was easily avoidable.  
Experts are warning home buyers to conduct the recommended searches prior to purchasing a property, to ensure they aren’t putting themselves at unnecessary risk. The recent case of an Ipswich family who discovered a sinkhole on their property highlights just how important it is for home owners to conduct thorough due diligence to avoid nasty surprises once the property has settled. 
We now have better data, details and information available to buyers in more convenient ways to inform their decision making process.
There’s just no excuse for not performing these basic searches. Buyer education is essential for ensuring people know and understand the necessity of these searches; not only for peace of mind, but to avoid financial burden caused by previous undermining in an area.
Many sinkholes are caused by subsidence, which is the lowering or settling down of the land’s surface. 
Subsidence can result from natural causes, but can also occur from human activity such as underground mining, the extraction of ground water, and the settlement of fill soils.
Buyers can easily conduct a search to see if undermining has occurred on their property or potential property, which will help in the investigation phase of the property buying process.
Unfortunately, in the case of the Ipswich sinkhole, an undermining search would have revealed that undermining had occurred in the area, and would have alerted the residents to the potential risks of living on the property.
For areas with heavy traditional undermining or exploration, people should take extra care to ensure they are building on stable land.
We understand a deterrent to conducting extra searches is the associated additional costs, but undermining searches can be completed for as low as $6 in Victoria, $42 in Queensland and $75 in New South Wales – well worth the investment for peace of mind.
There are various searches that should be completed when purchasing a property as part of the due-diligence process and these depend on numerous factors. Homebuyers should always consult with a practising solicitor or licensed conveyancer when purchasing a property.
The following searches are available in each state:
·         Queensland: Undermining Search 
·         New South Wales: Mine Subsidence 
·         Victoria: Mine Subsidence Variable 
GlobalX is an authorised provider of property and business information, providing online access to information through its suite of innovative software and workflow solutions.
<div>Peter Maloney is chief executive officer, GlobalX Legal Solutions and can be contacted <a href="https://www.globalx.com.au" target="_blank">here</a>.</div>
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Property 101: Could you be living on a sinkhole?

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<img src="https://counter.theconversation.edu.au/content/65217/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Having run the diplomatic equivalent of a cross-country marathon, there was concern that negotiations on the New Urban Agenda might trip at the final hurdle. Three days of talks were needed, with negotiations continuing long into the night before agreement was reached on Saturday night in New York.
The agenda is a non-binding international agreement designed to shape urban development over the next two decades. It will be formally adopted at the UN Habitat III summit in Quito, Ecuador, from October 17-20, 2016.
Negotiations began in New York at the first preparatory meeting in September 2014. It was envisaged then, if everything went smoothly, that the final draft would be agreed at the third preparatory committee meeting in Surabaya, Indonesia, on July 25–27, 2016. The negotiators in Surabaya, however, could not reach consensus. Instead they punted the draft to a final intersessional meeting held in New York last week.
The road to Quito has been at times precarious and it is unclear how the agreement will be taken forward thereafter. It is a tremendous achievement, though, when you consider the highly contested terrain the international community has been able to negotiate to reach an agreement.
Credit should go to the dedicated team at UN-Habitat, the committed representatives from civil society (under the banner of the World Urban Campaign) and the member state negotiators. Although not without his critics, the leadership from UN-Habitat executive director Joan Clos has also been significant in moving the agreement forward (or at least not messing things up).
<h2>What is at stake?</h2>
The disagreements were many, but I would like to point out three particular issues of contention.
First, it is recognised that no single UN agency can reasonably be given responsibility to implement such an all-encompassing agenda for the future of our cities. UN-Habitat hoped to have this role, but its motivation was to gain both influence and financial resources.
Second, co-operation from sub-national, city and local governments is a prerequisite for successful implementation. From the very start of negotiations, they have felt excluded from what is principally an agreement between nation-states. Sub-national government wants more say on the implementation of the New Urban Agenda.
Third, civil society has fully engaged with the formulation of the agenda and successfully pushed for the principle of the “right to the city” to be included.
This was a huge and historic victory for civil society from a social justice perspective. This encapsulates the “paradigm shift” that Clos often talks about in terms of a new global emphasis on “cities for people, not for profit".
All of the above will be the subject of intense analysis and discussion once the New Urban Agenda is adopted. If taken seriously, each has the potential to be transformative.
First, the UN system now needs to reflect on how best to promote urban sustainability. Second, sub-national governments need to reshape how they interact and influence the UN. Third, cities need to re-evaluate how they work with and for their people.
<h2>A bumpy road ahead</h2>
Realistically, the biggest headaches will start from Quito onwards. By far the most significant challenge is the timing. For the UN, 2015 was an apex year with the adoption of the 17 Sustainable Development Goals (the 2030 Agenda) and the Paris Agreement on Climate Change.
In contrast, 2016 has been a year of intense discussion and reflection on how best to implement and fund those two world-changing initiatives. The fundamental predicament will therefore be how to squeeze the implementation of the New Urban Agenda into an already jam-packed and rapidly evolving global schema.
The situation is complicated by the fact that a new UN secretary-general will take up office from January 1, 2017. They will inherit a UN system that needs drastic reform to deliver effectively on the 2030 Agenda. Some major reforms have been proposed, and the new UN chief is going to have their hands full.
The central aim is to reduce fragmentation and duplication of effort. This implies that we need a multi-agency approach to the New Urban Agenda.
This was one of the sticking points in New York last week as negotiators struggled with two proposals on implementation responsibilities.
The first option, supported by the G77 (pushed by UN-Habitat host country Kenya), was for a strengthened UN-Habitat with universal representation in its governing council and greater financial resources.
The second, from the European Union and others who would be footing the bill, was a recommendation that the institutional framework to support the New Urban Agenda be determined in the 72nd session of the UN General Assembly. This would effectively put off the decision to late 2017.
A compromise between these positions was reached in New York. This gives UN-Habitat a period of grace to move forward from Quito until new arrangements are determined.
<h2>Innovation should follow from Quito</h2>
There is a proposal that the best way forward would be to establish a new co-ordinating body – UN Cities – similar to UN Water and UN Energy.
This would certainly be more in line with the way that funding is moving from donors to the UN system in recent years – known as multi-partner trust funds – with the aim of increasing agency co-ordination.
An initiative like UN-Cities could also provide a more effective framework (or a clean slate) for how the UN works with sub-national government. Another option could be a UN Council for Cities and/or a Global Parliament of Mayors. Both represent a significant departure from the practice to date and would likely take some time to become a reality.
While these global-level institutional shell games play out, perhaps we may end up concluding that the most significant outcome from Quito is the emphasis on the right to the city.
There is a rich intellectual tradition reaching back to Henri Lefebvre’s1968 book, Le Droit à la ville. If seriously taken forward, the notion of the right to the city – essentially a human-rights approach to city governance, development and sustainability – would bring into focus a wide array of social justice issues. This includes how we deal with homelessness, urban poverty, gentrification and the privatisation of public space.
Can this transformation really happen, or are we doomed to repeat the follies of Agenda 21 and the Kyoto Protocol?
Brendan Barrett is research fellow/Research Coordinator, UN Global Compact Cities Programme, RMIT University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/brendan-barrett-179124" target="_blank">here</a>.
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Phew! New Urban Agenda clears last hurdle before Habitat III

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Steeped in book publishing history, the Lane family's Somers beachfront estate on the Mornington Peninsula has been sold.
Around $3.3 million was secured through Jellis Craig agent Iain Carmichael in conjunction with Kay &amp; Burton who had passed in at April auction on a $3.4 million vendor bid.
The seven bedroom home was listed by Elizabeth Lane, research author and daughter of Penguin Books co-founder Richard Lane.
Originally purchased by the Lane family in the early 1980's, the family commissioned Young, Lehmann Architect to design their early 1990s house on the sand dune landscape amid David Wood landscaped gardens complete with tennis court.
Ms Lane has maintained thousands of Penguin books - with their bright orange spine - which she intends to gift to the University of Melbourne library. 
This article was first published in the Weekend Australian Mansion Australia property section.
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Somers beachfront steeped in book publishing history sells

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GUEST OBSERVER
There are two ways to be a consistent winner in investment: information asymmetry (mostly through insider trading, which is illegal) and holding assets in the long term. Both of these methods are protected from short-term volatility. 
The first expects and profits from these movements (often very risky as all public information is already factored in the price), while the latter can safely ignore the daily peaks and troughs, knowing that these will cancel out over a longer period of time. 
Investing for long-term returns and robustness is the appropriate reason to buy treasury bonds, yet it is very counterintuitive for most of us to ignore weekly or monthly yields (even changes over one year can be irrelevant with the right strategy).
<a href="/images/2016/09/22/Screen%20Shot%202016-09-22%20at%202.25.20%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/22/Screen%20Shot%202016-09-22%20at%202.25.20%20PM.png" alt="">
Business Insider recently published a story called “The week is underway and Australian bonds are getting destroyed” with an image of a building being demolished. Yet as the article correctly points out, yields are still below pre-Brexit levels (bond yields rise as prices fall), which was less than three months ago. It can be difficult to separate signal and noise from information when there is such an abundance of data. 
In our April report on the bond market, the connection between the yield curve (which is a reflection of investor expectations) and changes in the official cash rate was established. A flattening or inverted yield curve almost always leads to interest rate cuts, as the RBA tries to reduce the cost of borrowing. If short-term rates are equal or above long-term rates, there is a disincentive for banks to lend out money. 
Looking at the yield curve for August, while the 25-point rate cut at the start of the month has lowered interest rates across the entire range, it has pushed short-term rates below 10- year yields, meaning the curve is no longer fully inverted. This see-saw action (investors lowering long-term expectations, followed by cuts to short-term rates) can be clearly seen in Figure 1 above.
<a href="/images/2016/09/22/Screen%20Shot%202016-09-22%20at%202.26.50%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/22/Screen%20Shot%202016-09-22%20at%202.26.50%20PM.png" alt="">
In the past few weeks there has been some saving grace for the reserve bank. Investors have improved their long-term outlook, pushing bond yields up and prices down. This makes another rate cut in the next few months unlikely. 
 For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Saving grace for the Reserve Bank: Secret Agent

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The new RBA Governor Dr Philip Lowe says Australia is not likely to cut interest rates to zero.
And it won't have to use the quantitative easing used by other countries, he told his first House of Representatives economic committee hearing.
Dr Lowe says the RBA is very unlikely to "run out of monetary room."
He said there was no need for "incredibly unusual things."
Dr Lowe says some argue he should be cutting rates further to get inflation back up inside the two to three percent target range.
But he says that might blow up an asset price bubble which would be "irresponsible".
On housing Dr Lowe says the surge in construction is adding to supply in housing, "which partly explains the slow growth in rents."
He said price gains for existing homes have "moderated" though there are pockets where prices are "increasingly briskly."
"Credit growth and turnover in the housing market are also lower than they were a year ago. 
"Under APRA's guidance, lending standards have also been tightened. 
"Overall, then, the situation is somewhat more comfortable than it was a year ago, although we continue to watch things carefully."
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RBA Governor says Australian cash rate won't fall to zero

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Grenville Turner, the former chairman of one Britain’s biggest real estate firms, Countrywide, is still tipped to chair LJ Hooker, the agency business with plans to list on the stock exchange next year.
The Australian reported its $400m initial public offering had been scheduled for September but postponed by market volatility in the wake of a string of profit downgrades from its beleaguered rival McGrath.
The Australian's DataRoom column previously revealed LJ Hooker intended to mimic Countrywide’s success in Britain by creating a firm that housed rival estate agency brands.
Merger talks were well advanced with Victorian estate agency Barry Plant.
The enlarged entity would have created a $400 million business known as Empireal.
LJH is majority-owned by Janusz Hooker, a scion of the founding dynasty.
Around six investors, including at least two hedge funds, tipped in $22m in a pre-IPO capital raising late last year.
The convertible preference shares, which allow the investors to buy stock at lower than the IPO price, are due to expire at the end of 2017.
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Empireal float still in contention for 2017

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The Governor, Philip Lowe, has announced that Christopher Kent, currently Assistant Governor (Economic), has been appointed to the position of Assistant Governor (Financial Markets), the role previously held by Guy Debelle prior to his appointment as Deputy Governor.
The Governor also announced that Michele Bullock, currently Assistant Governor (Business Services), has been appointed to the position of Assistant Governor (Financial System), which will be vacated by Malcolm Edey following his decision to retire at the end of October.
As part of her new role, Ms Bullock will be appointed as Deputy Chair of the Payments System Board, succeeding Dr Edey.
The retirement of Dr Edey from the Bank came after almost 40 years of service, the Governor said.
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Dr Malcolm Edey departs RBA

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<img src="https://counter.theconversation.edu.au/content/65155/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Katter's Australian Party federal MP Bob Katter said 30 percent of the Northern Territory's farmland and 22 percent of Tasmania's farmland is foreign-owned. Is that true?
Foreign ownership of Australian agricultural land is not new. Foreign cattle barons owned large areas of land in the Australian outback throughout much of the 20th century.
However, foreign investors' interest in large tracts of farmland, and the federal treasurer’s decision to block the sale of the S. Kidman and Co cattle properties to a Chinese buyer, have helped fuel public debate on the issue.
When the Australian Taxation Office (ATO) released a new Agricultural Land Register in early September, federal MP Bob Katter said that 30 percent of Northern Territory farmland and 22 percent of Tasmanian farmland is now foreign-owned.
Is that right?
Checking the source
The Conversation asked a spokesperson for Bob Katter for sources to support his assertion but did not hear back before deadline.
Nevertheless, it’s clear Katter was referring to the Australian Taxation Office’s new Register of Foreign Ownership of Agricultural Land.
The register lists investors who are legally required to report their interests in Australian agricultural land - whether that interest is freehold (meaning owned outright) or leasehold (meaning the land is rented).
Under rules announced in early 2015, investors must now notify the tax office within 30 days if they:
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<li>Are a foreign person starting to hold agricultural land</li>
<li>Are a foreign person ceasing to hold agricultural land</li>
<li>Become a foreign person while holding agricultural land</li>
<li>Cease to be a foreign person while holding agricultural land</li>
<li>Are a foreign person holding land that becomes agricultural land or</li>
<li>Are a foreign person holding land that ceases to be agricultural land</li>
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To build the register, the ATO collects investors' names, contact details, country of incorporation and Australian Business Number or equivalent identifier. For individual investors, the ATO recorded their nationality, and passport and visa details. It also collects the land title details.
The ATO report covers registrations made between July 1, 2015 and June 30, 2016.
What does the report show?
The report shows that the largest amount of foreign agricultural land is held by investors from the United Kingdom, in control of 27.5 million hectares. Investors from the the United States (7.7 million hectares) hold the second largest amount of land, followed by the Netherlands (3.0 million hectares). Chinese investors hold the fifth largest amount of land, with about 1.5 million hectares.
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<a class="source" href="https://firb.gov.au/about/publication/register-of-foreign-ownership-of-agricultural-land/">The Conversation/Foreign Investment Review Board</a>, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
<h2>Leasing vs owning</h2>
Bob Katter correctly quoted the percentages from the report, but his wording wasn’t quite accurate. He didn’t differentiate between foreign-owned and foreign-leased land.
To be fair, though, it’s not unusual for land to be leased for long periods of time – even as much as 99 years. So in practice, the difference between owning and leasing may be moot. The register doesn’t specify the length of the leases, saying only that:
"An interest in agricultural land includes a freehold interest or the right to occupy land under a lease (including a sublease or licence) where the term of the lease or licence (including any extension or renewal) is reasonably likely to exceed five years."
What we do know is that the register shows that 30.1 percent of agricultural land in the Northern Territory and 21.8 percent of agricultural land in Tasmania is held by foreign interests.
The register shows that almost all of the foreign-held agricultural land in the Northern Territory is leased (but the register doesn’t say exactly how long the leases are).
In Tasmania, the numbers are very different. The register shows that of the farmland there that is held by foreigners, about 88 percent of it is freehold – meaning it is owned by a foreign interest.
Much of the land identified in the report, particularly in the Northern Territory, is likely to be Crown leasehold. This means ultimate ownership rights remain with the Australian government, and lessees are required to manage the land in line with Australian property, agricultural and environmental laws.
<h2>How does this compare to the past?</h2>
We don’t know for sure, because the ATO register is the first of its kind.
The main previous source of official data on this issue was the Australian Bureau of Statistics’ (ABS) Agricultural Land and Water Ownership Survey, run in 2010 and 2013.
The 2013 ABS survey found 12.4 percent of Australian agricultural land had some level of foreign ownership, saying that:
Of the 400 million hectares of agricultural land in Australia, nearly 50 million hectares had some level of foreign ownership; this is up by around 5 million hectares, an increase of 11 percent on the 2010 result.
The ABS reported 31.7 percent of Northern Territory farmland as foreign-owned in 2013. Unfortunately, the Tasmanian data from the 2013 survey was not published.
If we compare the ATO and ABS data, it appears that the percentage of foreign-held agricultural land in Australia increased slightly between 2013 and 2016. It also appears that the percentage of foreign-held farmland in the Northern Territory fell slightly.
But care must be taken when comparing the results from the ATO register and the ABS survey. The ABS survey presents estimates based on a sample of agricultural businesses listed in the ABS business register, and must be used with care because of potential sampling errors.
It’s likely that the ATO register reflects a more complete record of foreign ownership and leasing than the earlier ABS data.
<h2>What don’t we know about foreign control of agricultural land?</h2>
Not all the information collected by the ATO has been made public.
The publicly available report doesn’t show who owns the land – it doesn’t show what proportion of the foreign-held land is owned or leased by foreign governments or foreign government investors such as state-owned enterprises.
The register’s guiding legislation states that any publicly reported statistics must not identify investors, which limits what information the ATO can release for public perusal.
<h2>Verdict</h2>
Bob Katter got his figures right but his wording was not entirely accurate. It would have been more accurate for him to say that 30% of the Northern Territory’s farmland and about 22% percent of Tasmania’s farmland is now foreign-held – not foreign-“owned”.
In the Northern Territory, most of the foreign-held land is leased; in Tasmania most of that foreign-held land is owned outright by the foreign entity.
However, the register doesn’t include the length of land leases. For those tracts of land held under very long leases, the practical difference between owning and leasing may not be meaningful. – Erin Smith and Bill Pritchard.
<h2>Review</h2>
This is a sound FactCheck. I have independently confirmed all data and calculations used in the analysis. The authors are correct in confirming Katter’s claim, with the caveat that the term foreign “held” rather than “owned” should have been used.
Some further – and significant – qualifications of the ATO data can also be drawn out:
While Tasmania and NT have relatively similar overall levels, their sectoral patterns are qualitatively different. As the ATO data show, most foreign-owned land in NT is for livestock production, while in Tasmania nearly all is in the forestry sector.
The legal differences between ownership and leasing are very slight in terms of assessing control and legal compliance matters. While the authors claim that leaseholders are required to meet “all Australian property, agricultural and environmental laws”, this is equally true of freeholders as well.
The ATO report appears not to adjust for the share of a property held by a foreign interest. For example, it does not differentiate between a farm that is 20 percent foreign-owned and one that is 100% foreign-owned. It is possible that some or even much of the “foreign held” land is actually a minority share in a joint-venture with Australian partners.
Significantly, the report only identifies the “place of incorporation” of the investor, rather than the nationality of the ultimate owner. Much of the British and American interests may well be held by legal persons of third countries, who have incorporated businesses (or bought shares in property trusts) in these jurisdictions. The dominance of the US and UK might therefore reflect a practice of incorporating agribusinesses in these countries, rather than ultimate ownership residing there. – Jeffrey Wilson
Erin Smith is post-doctoral Research Fellow, University of the Sunshine Coast and can be contacted <a href="https://theconversation.com/profiles/erin-smith-94841" target="_blank">here</a>.
Bill Pritchard is professor in Human Geography, University of Sydney and can be contacted <a href="https://theconversation.com/profiles/bill-pritchard-126" target="_blank">here</a>.
Jeffrey Wilson is fellow of the Asia Research Centre, Murdoch University and can be contacted <a href="https://theconversation.com/profiles/jeffrey-wilson-12717" target="_blank">here</a>.
All are authors for The Conversation.
 
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Is 30 percent of Northern Territory farmland and 22 percent of Tasmanian farmland foreign-owned?

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<img src="https://counter.theconversation.edu.au/content/65345/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Earth’s last intact wilderness areas are shrinking dramatically. In a recently published paper we showed that the world has lost 3.3 million square kilometres of wilderness (around 10 percent of the total wilderness area) since 1993.
Hardest hit were South America, which has experienced a 30 percent wilderness loss, and Africa, which has lost 14 percent.
These areas are the final strongholds for endangered biodiversity. They are also essential for sustaining complex ecosystem processes at a regional and planetary scale. Finally, wilderness areas are home to, and provide livelihoods for, indigenous peoples, including many of the world’s most politically and economically marginalised communities.
But there’s another important service that many wilderness areas provide: they store vast amounts of carbon. If we’re to meet our international climate commitments, it is essential that we preserve these vital areas.
Climate consequences
Large, intact ecosystems store more terrestrial carbon than disturbed and degraded ones. They are also far more resilient to disturbances such as rapid climate change and fire.
For instance, the boreal forest remains the largest ecosystem undisturbed by humans. It stores roughly a third of the world’s terrestrial carbon.
Yet this globally significant wilderness area is increasingly threatened by forestry, oil and gas exploration, human-lit fires and climate change. These collectively threaten a biome-wide depletion of its carbon stocks, considerably worsening global warming. Our research shows that more than 320,000sqkm of boreal forest has been lost in the past two decades.
Similarly, in Borneo and Sumatra in 1997, human-lit fires razed recently logged forests that housed large carbon stores. This released billions of tonnes of carbon, which some estimate was equivalent to 40 percent of annual global emissions from fossil fuels. We found that more than 30 percent of tropical forest wilderness was lost since the early 1990s, with only 270,000sqkm left on the planet.
How do we stop the loss?
All nations need to step up and mobilise conservation investments that can help protect vanishing wilderness areas. These efforts will vary based on the specific circumstances of different nations. But there is a clear priority everywhere to focus on halting current threats – including road expansion, destructive mining, unsustainable forestry and large-scale agriculture – and enforcing existing legal frameworks.
For example, most of the world’s remaining tropical rainforests are under an onslaught of development pressures. Much of sub-Saharan Africa is being opened up by over 50,000km of planned “development corridors” that criss-cross the continent. These will slice deep into remaining wild places.
In the Amazon, plans are being made to construct more than 300 large hydroelectric dams across the basin. Each dam will require networks of new roads for dam and powerline construction and maintenance.
In northern Australia, schemes are afoot to transform the largest savannah on Earth into a food bowl, jeopardising its extensive carbon stores and biodiversity.
We need to enforce existing regulatory frameworks aimed at protecting imperilled species and ecosystems. We also need to develop new conservation policies that provide land stewards with incentives to protect intact ecosystems. These must be implemented at a large scale.
For example, conservation interventions in and around imperilled wilderness landscapes should include creating large protected areas, establishing mega-corridors between those protected areas, and enabling indigenous communities to establish community conservation reserves.
In Sabah, Borneo, scientists from the UK’s Royal Society have been working with local government to establish networks of interlinked reserves stretching from the coast to the interior mountains. This provides a haven for wildlife that migrate seasonally to find new food sources.
Funding could also be used to establish ecosystem projects that recognise the direct and indirect economic values that intact landscapes supply. These include providing a secure source of fresh water, reducing disaster risks and storing vast quantities of carbon.
For example, in Ecuador and Costa Rica, cloud forests are being protected to provide cities below with a year-round source of clean water. In Madagascar, carbon funding is saving one of the most biodiversity-rich tropical forests on the planet, the Makira forest.
We argue for immediate, proactive action to protect the world’s remaining wilderness areas, because the alarming loss of these lands results in significant and irreversible harm for nature and humans. Protecting the world’s last wild places is a cost-effective conservation investment and the only way to ensure that some semblance of intact nature survives for the benefit of future generations.
James Watson is associate professor, The University of Queensland and can be contacted <a href="https://theconversation.com/profiles/james-watson-104823" target="_blank">here</a>.
Bill Laurance is distinguished research professor and Australian Laureate, James Cook University and can be contacted <a href="https://theconversation.com/profiles/bill-laurance-4358" target="_blank">here</a>.
Brendan Mackey is director of the Griffith Climate Change Response Program, Griffith University and can be contacted <a href="https://theconversation.com/profiles/brendan-mackey-152282" target="_blank">here</a>.
James Allan is PhD candidate, School of Geography, Planning and Environmental Management, The University of Queensland and can be contacted <a href="https://theconversation.com/profiles/james-allan-296281" target="_blank">here</a>.
All are authors for The Conversation.
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The world’s carbon stores are going up in smoke with vanishing wilderness

A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Jonathan Chancellor

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