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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.
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jchancellor-FAypfDUnLy

Boonoke and Wanganella on Gina Rinehart's radar

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

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

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

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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.
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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.
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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.
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Bayside Melbourne full of weekend auction action

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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.
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Northbridge record setter again for KKR boss

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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:
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<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.
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Building home equity one BrickX at a time

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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.
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Deltroit fetches $16.3 million in sale to MHPF

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<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;
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<li>
economy (food sector businesses and employment); and
</li>
<li>
culture and identity.
</li>
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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.
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Urban food systems may be just a ‘side dish’ at Habitat III

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<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>
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<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>
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Ex refinance the picture was even weaker with a 6.1 percent fall, the largest monthly decline since May last year.
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Approvals can be choppy month to month but moves tend to be in the ±3 percent range. 
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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). 
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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.
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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.
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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>.
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July fall in owner occupier approvals is a little puzzling: Westpac's Matthew Hassan

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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