<html><body>
The Australian Food and Agriculture Company, backed by Colin Bell and the global hedge fund manager Ray Dalio, could be on the radar of billionaire Gina Rinehart, according to The Australian's DataRoom column. 
The portfolio, controlled by the Bell Financial Group, recently changed its name from FS Falkiner to the Australian Food and Agriculture Company.
The privately owned AFA has been investing in agriculture since the early 1990s with holdings totalling 225,405ha.
The portfolio is located in southwest NSW in the districts of Coonambie, Deniliquin and Hay, with properties in the portfolio including Boonoke, Wanganella, Burrabogie and Wingadee.
Collectively, estimates suggest that it may be worth about $200 million.
The Bell brothers and partners bought the bulk of the holdings from News Corp in 2000 for $29 million. 
News Corp included a clause in the sale contract to the Bells that Wanganella's heritage had to be preserved, that the property could not be split up.
Wanganella, outside Deniliquin in the Riverina, was the cradle of the sheep breed that revolutionised the world of agriculture through the work of a Somerset sheep man, George Peppin.
The Peppin merino came to be featured on the old one shilling coin, symbolising the prosperity that sheep had brought the country.
The story has now been published Wanganella and the Merino Aristocrats by Timothy Lee. 
Wanganella and Boonoke were involved in the great shearers' dispute that led to the formation of the Australian Workers Union and the ALP.
</body></html>

jchancellor-FAypfDUnLy

Boonoke and Wanganella on Gina Rinehart's radar

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
Australia's economy has done well, considering it has had to absorb a significant negative shock from the end of the mining boom. 
Over the past few years, commodity prices have fallen by 60 percent and mining investment has declined from around 8 percent to 3.5 percent of GDP. 
Historically, much smaller falls have typically caused recessions. But, as last week's GDP figures clearly illustrated, Australia's 'R-word' has been rebalancing not recession. Although business investment was a -1.6ppt drag on growth, overall GDP grew by a strong 3.3 percent y-o-y in Q2. 
The mining investment fall has been more than offset by a ramp up in resources exports and growth in services exports, housing construction and household spending. Looking forward, the drag from mining investment and falling commodity prices should now fade. This is expected to mean continued solid overall GDP growth, despite the housing construction boom nearing its end. We see the RBA on hold in coming quarters. 
The more downbeat economic observers have, in recent years, described the economy as falling off the 'mining investment cliff' and said that Australia would have an 'income recession' as a result of the fall in commodity prices. The end of the mining boom has, indeed, been a big negative shock to absorb. 
But although mining investment has fallen significantly and declining commodity prices have weighed on nominal GDP, growth in real GDP and employment has remained solid. Last week's GDP numbers showed that Australia's economy grew at an above-trend 3.3 percent over the year to Q2 2016. Over the past five years, GDP growth has averaged 2.8 percent (which is around its trend rate) and jobs growth has been strong enough to see the unemployment rate fall from its early-2015 peak of 6.25 percent to now sit around 5.75 percent. 
How has this happened? Australia's growth has been rebalancing from the mining to the non- mining sectors ('Australia's great rebalancing act', December 2012). Low interest rates have supported a housing price and construction boom while the lower AUD and rising middle class incomes in Asia are driving increased demand for Australia's services exports, including tourism, education and business services. 
Importantly, the big drag from mining investment and commodity prices is almost done. The worst is in the past. As a result, even those that have been pessimistic about the impact of the end of the mining boom should now have less to worry about. 
Mining investment, which has been a drag of a hefty 4.5ppts of GDP over the past four years, will stop being a drag soon. On our estimates, mining investment subtracted around 1.8ppts from GDP over the year to Q2 2016, but will only subtract 0.5ppts from growth in the year to Q2 2017 and will not be a drag the following year. 
The drag will therefore subside by 1.3ppt this coming year and 0.5ppt the next year. And, because the LNG export ramp up will still be underway, the resources sector as a whole should contribute to overall real GDP growth. 
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
We also expect that commodity prices have already passed the trough. If so, nominal GDP growth, tax revenues and even wages should get some support. Commodity prices have already made up the losses from late last year and are flat y-o-y, so are no longer a drag. On our forecasts, nominal GDP growth could pick-up from 3.4 percent y-o-y in Q2 2016 to 6 percent y-o-y by Q2 2017. 
Other downbeat commentators now point out that the end of Australia's housing price and construction boom could see weaker growth next year and into 2018. Having grown so strongly recently, housing construction will fall at some point and weaker house prices could deliver a negative wealth effect. While we agree that the housing price boom is over and that housing construction will start to be a drag on growth from around mid-2017, to us, the arithmetic suggests that this will be more than offset by the subsiding mining investment drag. 
Mining will stop being a drag just as the housing sector becomes one. The net of the two effects should still leave the economy growing, as the fall in mining investment was much bigger than the decline in housing investment is likely to be. 
We see little evidence that the housing price boom has driven a particularly strong positive wealth effect so doubt that the cooling of the housing price boom will see a significant negative one. 
What will be the main driver of growth? Services exports, led by tourism, education and business services. It's already happening, and in our view, is set to continue. Keep in mind that the services sector accounts for over 70 percent of Australia's GDP. 
This should continue to support jobs growth, as it has done in recent years. It should also start to spur more business investment. Last week's GDP numbers showed tentative signs of a pick-up in non-mining business investment. 
Australia's rebalancing is almost complete, at which point we expect domestic wages and inflation to stabilise. Once we have passed the trough in domestic wages and underlying inflation we expect that the RBA is unlikely to cut further. Our central case has the RBA on hold at 1.50 eprcent in coming quarters. 
 <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
</div>
</div>
</div>
 
</div>
</div>
</div>
</div></body></html>

Property 101: Mining's big drag is almost done: HSBC's Paul Bloxham

<html><body>
<img src="https://counter.theconversation.edu.au/content/63396/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The biggest Australian banks are fairing well in a year of increased pressure to reform from politicians, international events like the Britain’s exit from the European Union and more regulation from the Australian Prudential Regulation Authority (APRA).
A number of interrelated factors have contributed to the relatively strong performance of the Australian banks. For instance, the banks have limited exposure to the types of securities which led to massive losses for their counterparts in other countries. The banks also heavily rely on domestic loans, particularly the low risk household sector, so better lending standards and a proactive approach to prudential supervision by APRA may have contributed.
The Basel III regulatory requirements, brought in after the 2008 financial crisis, emphasise holding an increased amount of subordinated debt, as a measure of market discipline. However all the big four banks are holding less and less subordinated borrowings. More specifically, it declined by more than 50% from 2007 to 2014, according to our calculations.
APRA limits banks’ holdings of higher risk securitised assets, these are loans packaged into securities, to a maximum of 25% of the banks' loan portfolio. These are high risk if not properly understood or defined, as happened with United States home loans, blamed for the start of the global financial crisis.
When Australian banks calculate bank capital requirements, they need to fully account for securitised assets. This is a rule from APRA that goes beyond international standards, to reflect the risk inherent in these products.
Inter-bank liquidity tightened significantly with all banks increasing their holdings of Exchange Settlements Accounts at the Reserve Bank, this a form of low risk liquidity. Australian banks have lower interbank deposits compared to their Europe and USA counterparts and are also heavily involved in long term wholesale funding and are required to hold more liquid assets including government debt to deal with liquidity. All of this makes Australian banks less risky in times of crisis because spillover effects from other banks are less likely.
<h2>There has been a significant increase in concentration in the Australian banking industry since the global financial crisis. For example with Westpac and the Commonwealth Bank of Australia taking over St. George Bank and Bank West, respectively.</h2>
Following mergers, the big four account for 88 percent of the Australian banking system assets. This reinforces the idea that the banks are “too big to fail”.
The banks have also moved to more fee generating activities, which increases risk, but to a lesser extent in Australian banks. Data shows between 1998 and 2014, on average, 1.2 percent greater interest income was generated relative to non-interest income for Australian banks, according to our analysis. However, there is also similar evidence for the top eight publicly-listed Canadian banks. They exhibit on an average, a 2.5 percent increase in net interest revenue relative to non-interest income over the same time period.
This reinforces that Australian and Canadian banks demonstrated extra ordinary resilience during the credit turmoil in the global financial crisis. The World Economic Forum in 2008 reported that Australia and Canada were among the top four safest banking systems in the world.
Large banks in Australia are active in international markets through direct ownership of foreign based banks and having offshore operations as a source of capital. Deregulation of banking in countries such as the USA, Canada, Australia and many developing countries has opened up new markets for foreign banks. Australian banks' largest international exposure is to New Zealand, where all big four banks retain sizeable operations.
Although the growing interdependence among international economies and financial markets is certain to continue, the impact of Brexit on Australian banks remains minimal. It remains to be seen in the long-run how Australian banks will weather the international banking/economic developments.
As a last measure of the bank health, we can measure the domestic systemic risk with a methodology based on one used by the official Basel Committee on Banking Supervision. Based on July 2016 monthly data, the big four banks account for 80.38 percent of the systemic risk in the financial system and the riskiest, from highest to lowest, are the National Australia Bank, the Commonwealth Bank of Australia, Westpac and ANZ.
Mamiza Haq is lecturer in Finance, The University of Queensland, and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/mamiza-haq-143872" target="_blank">here</a>.
Necmi K Avkiran is associate professor in Banking and Finance, The University of Queensland and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/necmi-k-avkiran-298084" target="_blank">here</a>.
</body></html>

Company results wrap: weighing up the risks behind the profits of Australia’s big four banks

<html><body>
The weekend auction of apartment 3.4 at the Robin Boyd-designed, 193 Domain Road, South Yarra opened with a vendor bid of $1.35 million.
There was just the one bidder at $1.36 million for <a href="https://www.realestate.com.au/property-apartment-vic-south+yarra-123344254" target="_blank">the two bedroom apartment</a>.
Marshall White agent Anthony Reis had a $1,485,000 reserve, with negotiations continuing for the third floor apartment.
</body></html>

Robin Boyd, South Yarra apartment passed in after just one bid

<html><body>
Much of the weekend Melbourne action was bayside.
The top auction result was $6.5 million in Brighton when <a href="https://www.realestate.com.au/property-house-vic-brighton-123294222%20" target="_blank">204 Esplanade</a> (above) was sold as a likely development site.
The four bedroom brick 1980s house that last traded in the 1970s sits on 1234 sqm near the sea baths.
Agent Kyle Charlton was suggesting one of very few undeveloped home sites left on the ‍Esplanade would fetch $5 million to $5.5 million.
The weekend's cheapest result across the nation was also in Melbourne at $194,000 in St Kilda.
It was a 1960s studio apartment - just 25 sq m - that had previously traded at $123,000 in 2006.
<img src="/images/2016/09/12/700_st_kilda.jpg" alt="">
The <a href="https://www.realestate.com.au/property-apartment-vic-st+kilda-123377994" target="_blank">6/27 Waterloo Crescent</a> (above) studio has been a $270 a week rental.
There was also significant interest in the nearby 1880s home offering at <a href="https://www.realestate.com.au/property-house-vic-st+kilda-123371802" target="_blank">7 Robe Street, St Kilda</a> (below) which sold at $2.72 million through Marshall White’s Michael Paproth and Daniel McGuire who were expecting more than $2.2 million.
<img src="/images/2016/09/12/500_robe.jpg" alt="">
The renovated, double storey three-bedroom plus study home last sold at $1.925 million in 2009 when sold by two-time Olympic Gold medallist Nick Green who paid $1.15 million in 2002.
The injured Western Bulldogs young gun midfielder Mitch Wallis secured $1.07 million post-auction for his weekend Port Melbourne apartment offering.
Wallis’s two-bedroom apartment at 1<a href="https://www.realestate.com.au/property-apartment-vic-port+melbourne-123348630" target="_blank">33/95 Rouse St, Port Melbourne</a> (below) passed in to an investor at $1.06 million with RT Edgar agent Gerald Betts negotiating a sale soon afterwards.
<img src="/images/2016/09/12/600_melb.jpg" alt="">
The 23-year-old AFL footballer - who bought his HM@S apartment five years ago for $900,000 - and his partner, nurse Emily Clemmens have purchased a house in nearby Albert Park.
CoreLogic's national preliminary auction clearance rate sat at 76 percent across the combined capital cities.
Some 2,026 total auctions were held across the capital cities, higher than last week, when 1,899 auctions were held, but remaining lower than one year ago at 2,654.
The clearance rate was down slightly from last week’s clearance rate of 77 percent, which was the highest clearance rate recorded for the year to date.
At the same time last year the clearance rate was 71 percent and in noticeable decline.
In Melbourne, a preliminary auction clearance rate of 78 percent was recorded, slightly lower than last week.
There were 978 auctions held across the city, up from 830 but lower than the 1,189 auctions held one year ago.
Across Sydney, 720 homes were taken to auction - with 550 on Saturday - with a preliminary clearance rate of 80 percent. It mirrored the 80 percent across 747 auctions.
"One year ago, 1,075 Sydney homes were taken to auction and the clearance rate was 73.1 percent," CoreLogic's Kevin Brogan said.
Brisbane was host to 148 auctions this week and its 55 percent success rate was up from 52.2 percent last week and higher than one year ago, when 50 percent of the 179 properties taken to auction were successful.
Domain had Brisbane prices ranging from $255,000 at Beenleigh to $2.125 million at Windsor.
Sales included a restored 1894 colonial house in Indooroopilly (below) which fetched $1.6 million with 16 registered bidders keen to secure 19 Jackson Street.
<img src="/images/2016/09/12/600_indoo.jpg" alt="">
It sold prior to its renovation at $745,000 in 2004.
Adelaide recorded a clearance rate of 76 percent across 88 auctions this week.
Across Canberra a total of 60 auctions were held this week, compared to 77 last week and 79 at the same time last year.
Canberra prices ranged from $357,000 in Holt to $2.98 million in Forrest.
Canberra’s preliminary clearance rate of 78 percent well up from 65 percent at the same time last year.
</body></html>

Bayside Melbourne full of weekend auction action

<html><body>
A harbourfront residence in Northbridge smashed the suburb record when it sold after private treaty negotiations on Saturday afternoon for $15 million plus.
An offshore buyer secured the home from the Berlin-bound Justin Reizes, who recently retired as head of equities giant, Kohlberg Kravis Roberts.
The residence's $9.05 million sale in 2008 had held the Middle Harbour suburb record during the ensuing eight years.
The house on <a href="https://www.realestate.com.au/property-house-nsw-northbridge-123307134" target="_blank">1700 sq m on Coolawin Road</a> sold through McGrath agents Michael Coombs and David Howe who had initial hopes of $16.5 million.
It is the third time the property - now with interiors by Hare + Klein - has set a suburb high as it held the mantle when sold in 2003 for $7.13 million by the Salteri family.
Set on a private beach with a boatshed and pontoon, the six bedroom, six bathroom house has landscaped gardens and pool.
</body></html>

Northbridge record setter again for KKR boss

<html><body>
<div>
Young home buyers who want to put a toe into the booming Sydney property market are turning to an innovative trading platform that offers part ownership.
The BrickX investment scheme allows for the online purchase and sale of ‘Bricks’ starting from as little as $67 in residential properties. 
Young couple Steven Farrer (30 yrs old) and Holly Bozier (24 yrs old) are among the early stakeholders who've bought a small stake in a Mosman flat where the so-called bricks are selling for $140 each.
They didn't want to be over-committed, but nor locked out of the property market. And are happy to learn about the property market through their outlay.
They own eight - costing $1040 - of the 10,000 so-called bricks in the two bedroom Parriwi Road flat which was bought by the fractional ownership company for $1.2 million in 2015 with its tenants now paying $990 a week.
"The BrickX website offerings have been like looking at a real estate office website, however this time we can afford to invest in the property we see," Steven said.
"We have been to heaps of open homes however everything is being sold way over the buyers' guide price and is just out of our price range. 
"We wish we has bought something two to three years ago," said the couple who have their finances pre-approved to buy their first home. 
"But we don’t want to spend $750,000 on a property today and find it's worth $600,000 or less tomorrow if the market crashes."
Like shareholders in publicly listed companies, first home buyers and investors can also also buy into their Enmore apartment at $67 per investment or an Annandale house at $98 a brick. 
Steven Farrer and Holly Bozier say knowing that experts - including CoreLogic head of research Tim Lawless and Nerida Conisbee, chief economist at the REA Group - are doing all the hard work prompted their decision. 
BrickX chief executive Anthony Millet said they were working towards having 100 properties.
BridgeLane Group's Markus Kahlbetzer is the co-founder of BrickX having devised what he envisages as an easy route into investing in residential property across Australia with transparency. 
Until this month it was licensed only for wholesale investors under the Corporations Act, but the offering is now available to regular mum and dad type retail investors who will derive dividend incomes on a monthly basis. Investors can buy a maximum 5 percent ownership. 
Each individual property is in a trust and investors can buy or sell into that trust.
The property is managed by BrickX on behalf of the investor on the platform, and the investor receives a dividend from the rent of the property that they own, in proportion to the units that they own in the trust. As the price of the “Bricks” move, so do the investor’s returns.
There is no minimum investment required to purchase Bricks and there is a flat 1.75 percent transaction fee on purchases.
Tim Lawless says it would carefully select properties based on a number of key strengths including:
</div>
<div>
<ul>
<li>Value $500k-$1.5m</li>
<li>Newly renovated/good condition</li>
<li>Modern fit-out</li>
<li>Buying the normal type of property in an area (i.e. if a suburb is known for houses, buy the normal)</li>
<li>Healthy strata budgets</li>
<li>Avoid large unit blocks where rents can be under pressure from other void units in same block</li>
<li>Avoid off plan or large new developments</li>
<li>Avoid properties which have additional features that would add to the running costs (i.e. pool)</li>
</ul>
<a href="https://www.brickx.com/how-it-works?utm_source=propertyobserver&amp;utm_medium=runofsite&amp;utm_term=becomeapropertyinvestor&amp;utm_content=halfpage&amp;utm_campaign=launch" target="_blank">For more information</a>.<a href="https://www.brickx.com/properties/MOS01/summary" target="_blank"> </a>
This article was first published in the Daily Telegraph.
</div>
</body></html>

Building home equity one BrickX at a time

<html><body>
MH Premium Farms (MHPF), the Australian agricultural investment group of UK-based hedge fund founder, Sir Michael Hintze, has bought Deltroit, the Gundagai district farm with settlement paperwork revealing a $16.3 million price.
The 2573 hectare Mundarlo property was offered for sale to wind up the agricultural portfolio of the Brisbane-based Australian Pastoral Group who had bought Deltroit in 2012 from Anthony Crichton-Brown.
Inglis Rural were expecting $18 million to $20 million. It had previously traded at $15.5 million in 2012.
MHPF’s properties now cover more than 50,000ha, mostly NSW, but also North Queensland, where MHPF spent $9 million recently on expanding its irrigated sugar farming operations at Ayr.
Deltroit will be used by MHPF to grow prime lambs, cattle and crops.
</body></html>

Deltroit fetches $16.3 million in sale to MHPF

<html><body>
<img src="https://counter.theconversation.edu.au/content/63639/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The year 2016 is crucial for both food and cities. In October, UN member states will convene for the Habitat III conference in Quito, Ecuador, to discuss guidelines for sustainable urban development for the next 20 years.
In relation to food, 2016 has seen increased interest in bringing food to centre stage of many non-traditional domains. For example: this is the International Year of the Pulses; food waste is getting more attention, such as the announcement of the first global standard to measure food loss and waste; and food and agriculture lie at the very heart of the Sustainable Development Goals (SDGs).
At the 2016 Global Forum for Food and Agriculture (GFFA), UN Secretary-General Ban Ki-moon said:
"Ensuring that everyone in expanding urban areas has access to nutritious food is critical to achieving the goal of zero hunger set out in the 2030 [SDG] Agenda."
Sustainable diets are gaining traction, and many governments are demonstrating high-level commitment.
<h2>Will the new urban agenda put food on the table?</h2>
On the road to Quito, the zero draft of the New Urban Agenda bears only oblique references to food systems.
Food (security) has been “sprinkled” over physical and social infrastructure, natural resources and ecosystems, sustainable consumption, resilience, urban planning, land and mobility. It is conspicuously missing from urban basic services and altogether from heritage and culture.
This omission has occurred despite common knowledge of food’s profound impacts. It shapes rural landscapes, provides spaces for buying, selling and eating food in cities, and is integral to everyday individual and collective identities.
If the New Urban Agenda carries a promise for change, sustainable and equitable food systems in cities will perhaps only be a side dish at Quito.
<h2>Cities' role in food systems is growing</h2>
The Milan Urban Food Policy Pact is testament to the increasing realisation of the need for urban planners to make food systems central in city planning. More than half of humanity lives in urban areas.
According to the UN, nearly 70% of the global population will live in cities by 2050, making urbanisation one of the 21st century’s most transformative trends.
Of the 124 signatories to the Milan Pact, Melbourne is the only Australian signatory. Although the pact’s framework for action is voluntary, it provides strategic opt ions to those cities aiming to achieve more sustainable food systems.
Melbourne is also part of the 100 Resilient Cities project, which sees food shortages as a potential threat to urban resilience.
Increasing recognition of the multiple dimensions of food in cities is driving the urban food debate. It encompasses nutrition, ethics and social justice, and sustainability.
In Canada, the US, South America, the UK and a few cases in Australia (notably Melbourne), municipal governments are increasingly seeking ways to promote synergistic relationships between food consumers and producers. But this process remains sporadic and non-systemic.
<h2>Australian cities are complacent about food</h2>
Australians are predominantly urban dwellers. More than 80% of the population lives in the 20 largest cities.
As well as the horde of other issues for urban food systems, Australia has one of the most concentrated food retail sectors in the world dominated by the supermarket duopoly, significant health disparities between Indigenous and non-Indigenous Australians, and a serious and growing issue of food waste.
All of the SDGs have targets that are directly or indirectly related to the daily work of regional and local governments, the closest administrative units to communities. In 2015, there were 571 local governing bodies across Australia. This is the level of government best placed to link the global goals with local communities.
It is at the municipal level that the socioeconomic and environmental problems associated with food systems first become evident. In Queensland, for example, the 2011 floods showed the potential impact of disaster on urban food systems.
Despite a renewed national focus on citiesin Australia, food systems remain a secondary consideration. Neither the Australian Local Government Association (ALGA) nor the Planning Institute of Australia (PIA) has food for the cities in their strategic plans. Researchers such as Paul Burton and Meg Montagueallude to the “complacent attitude” to urban food systems in Australia.
The City of Melbourne is notable in promoting integrated local government planning on key factors that influence food systems – transport, housing, economic development and land use. Several local governments have trialled micro-level initiatives to improve health and reduce inequities, or reduce ecological footprints. Most cities are lagging, though, when it comes to food systems.
<h2>Battle will be won or lost in cities</h2>
Food systems are perhaps not as visible as other areas of urban development. They are, however, an essential element that involves many aspects of cities. These include:
<ul>
<li>
transport and infrastructure (connecting consumers, retailers and producers);
</li>
<li>
housing (access to affordable nutritious food);
</li>
<li>
recreation;
</li>
<li>
economy (food sector businesses and employment); and
</li>
<li>
culture and identity.
</li>
</ul>
Food is a new policy arena for city governments, but cannot be separated from housing, water and sanitation, energy, employment and all the other rights related to a life of dignity that local governments promote. Urban food systems are poorly understood, though. Often there is no clear jurisdiction or mandate by which city planners can manage these systems.
The challenge is to broaden the scope of policy debates beyond food supply chains and urban agriculture, to include strategic plans and reforms to tackle food systems.
This could help to identify strategic leverage points that can affect the way food business is done in cities and have significant impacts on diet-related diseases, large urban carbon footprints, food waste, social injustice and the negative impacts of supermarket power.
Indeed, the battle for sustainable development will be won or lost in cities.
Grace Muriuki is program manager, Food Systems Program, Global Change Institute, The University of Queensland and can be contacted <a href="https://theconversation.com/profiles/grace-muriuki-253591" target="_blank">here</a>.
Geoffrey Lawrence is emeritus professor of Sociology, The University of Queensland and can be contacted <a href="https://theconversation.com/profiles/geoffrey-lawrence-2886" target="_blank">here</a>.
Both are authors for The Conversation.
</body></html>

Urban food systems may be just a ‘side dish’ at Habitat III

<html><body><div class="page" title="Page 1">
<div class="section">GUEST OBSERVER</div>
<div class="section"> </div>
<div class="section">Australian housing finance approvals were materially weaker than expected in July with much of the detail also on the weak side, investor loans about the only exception.</div>
<div class="section"> </div>
<div class="section">The total number of owner occupier loans fell 4.2 percent, well below the consensus forecast for a 1.5 percent decline.</div>
<div class="section"> </div>
<div class="section"><a href="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.19.29%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="section">
<img src="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.19.29%20AM.png" alt=""> <div class="layoutArea">
<div class="column">
Ex refinance the picture was even weaker with a 6.1 percent fall, the largest monthly decline since May last year.
<a href="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.21.26%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.21.26%20AM.png" alt="">
 
Approvals can be choppy month to month but moves tend to be in the ±3 percent range. 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Our estimates (using ABS seasonal factors) suggest seasonally adjusted owner occupier approvals ex refi were down 3-4 percent in NSW, Vic and Qld with, somewhat surprisingly, WA the only state to record a rise (+2.7 percent/mth). 
<a href="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.22.28%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.22.28%20AM.png" alt="">
Note that the sum of these estimates across the big five states is firmer than the published national number (down about 2 percent rather than 6 percent). 
The value of housing finance approvals to investors rose 0.5 percent, building on a 3.3 percent gain in June to be up 9.2 percent since April. 
The sharp slowdown associated with the tightening in lending criteria and increases in borrowing rates for investor loans late last year has now clearly run its course. 
With loan 'supply' now, arguably, less constrained (particularly given that investor credit growth is tracking at 4.5 percent/yr, well below the regulator's 10 percent ceiling) and some of the uncertainty around potential tax changes easing activity looks to be firming again.
<a href="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.23.32%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.23.32%20AM.png" alt="">
 
For the total value of housing finance approvals, the rise in investor loans partially offset the weakness in owner occupiers with the total value ex refi down a milder 2.2 percent/mth. The total value of approvals ex refi is down on a year ago, mainly reflecting last year's pull back in investor loans. 
The July fall in owner occupier approvals is a little puzzling given the May interest rate cut and a range of other indicators suggesting both buyer sentiment and market conditions have firmed somewhat in recent months. 
It may reflect the tail end of earlier weakness (finance approvals tend to respond to rate moves and sentiment shifts with a 2-3mth lag). There may also be some statistical 'noise' in the monthly data.
<a href="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.24.38%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/12/Screen%20Shot%202016-09-12%20at%208.24.38%20AM.png" alt="">
 
Overall, given the better reads coming from other market indicators and the divergence between investor and owner occupier loans we would tend to take the July finance approvals figure with a grain of salt and look to coming months to confirm whether a new weakening is coming through. 
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

July fall in owner occupier approvals is a little puzzling: Westpac's Matthew Hassan

Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

&nbsp;

&nbsp;

fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

&nbsp;

FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Jonathan Chancellor

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News