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GUEST OBSERVER
The RBA left its cash rate unchanged at 1.50 percent, as expected.
The post- meeting statement noted that 'having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged would be consistent with sustainable growth in the economy and achieving the inflation target over time'. Much of the rest of the statement was very similar to last month.
The RBA seems content with the current stance of policy and we see this as unlikely to change any time soon. Tomorrow's Q2 GDP print will now be in focus, with timely partial indicators, released earlier today, suggesting some upside risk to our forecast for GDP growth of 3.2 percent y-o-y. Our central case has the RBA keeping its cash rate steady at 1.50 percent in coming quarters.
Facts
The RBA held its cash rate steady at 1.50 percent, as expected by all of the surveyed economists in the Bloomberg survey. Just prior to the decision the market was pricing a 2 percent chance of a 25bp cut.
Implications
Having delivered 50bp of cuts in the past four months, it was no surprise that the RBA held its cash rate steady today. With little more to say about the situation than that, the RBA's post-meeting statement was very similar to last month's.
As they pointed out, 'low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector'. In short, loose financial conditions are rebalancing growth in the economy. At the same time, 'inflation remains quite low', but the Board are of the view that the current stance of policy is 'consistent with ... achieving the inflation target over time'.
On the AUD, the RBA exercised its 'free lunch option' by stating that 'an appreciating exchange rate could complicate [the rebalancing of growth]'. There is no cost to the RBA in stating this. However, importantly, the RBA is not suggesting that the current level of the exchange rate is a worry.
On the established housing market, they continue to believe (as do we) that the housing price boom is over. While some measures show continued strong housing price growth, most are showing a slowdown and this easing in housing price growth is consistent with weaker new housing loan approvals and housing credit growth.
The focus now shifts to tomorrow's Q2 GDP print. Partial indicators, on balance, suggest some upside risk to our forecast for already above-trend growth of 3.2 percent y-o-y. Our central case sees strong growth driving further gradual improvement in the labour market, with wages growth stabilising and gradually climbing through 2017, supporting underlying inflation. With this in mind, our central case sees the RBA on hold 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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The housing price boom is over: HSBC's Paul Bloxham

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<img src="https://counter.theconversation.edu.au/content/64877/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Sydney property market creates shocks that spill over to other capital cities, and Hobart is one of the worst affected, new research from the University of New South Wales shows.
The study looked at all eight Australian capital cities. Perth and Darwin’s housing market appeared to be the least affected by shocks originating in other capitals.
“We shouldn’t think of Australian housing markets as being completely isolated. It’s not the case that whatever happens in Sydney doesn’t have any implications for what happens in other housing markets,” says Associate Professor Glenn Otto, the author of the research.
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Professor Otto examined data on median house prices and rents, from the early 1980s till 2015, released quarterly by the Real Estate Institute of Australia.
He modelled how variations in capital gains and rental returns in each of the cities affected returns in other cities, over twelve month periods.
“You historically don’t see a big share of Brisbane or Melbourne type shocks spilling over to other markets,” Professor Otto noted.
The spillover effects to different capital city housing markets have been increasing over time since the mid 1990s and account for about 40 to 50% of the variance in forecast property returns to houses and units.
“From time to time you’ll get predictions that we’ve built too many units in the Melbourne housing market and there’s an oversupply and its specific to these markets, so we’ll see some price correction.
“The thing I was interested in was, looking at the historical data, was to what extent that correction won’t be specific to the particular market but also will feed through to other markets,” said Professor Otto.
The research also examined the split between houses and units. Although there wasn’t a huge difference in results for the two different dwelling types, the cities most affected by shocks in terms of units were Brisbane and Hobart and for houses it’s Canberra and Hobart.
Professor Otto is now planning to research what causes these spillover effects and what that can tell us about volatility in Australia’s housing market.
“Australian cities are quite isolated so we wouldn’t necessarily expect people to be picking up and moving between cities in response to changes in property prices, but what we might see is investors thinking about where they want to buy and sell property.
“To that extent investors may be becoming an increasingly important part of the housing market, maybe that’s one mechanism by which we can see this kind of effect of one city being transferred to another city,” Professor Otto said.
The research was funded by an Australian Research Council Linkage Project Grant.
Jenni Henderson is assistant editor, Business and Economy, The Conversation and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here</a>.
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Sydney property market price shocks spread to other capital cities

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GUEST OBSERVER
After the RBA’s decision in August to cut the cash rate to a historic low of 1.5 percent, there is good reason to pause.
Unemployment fell slightly, but only because of a large increase in part-time employment. With consumer price inflation equalling 1.0 percent year-on-year, well below the RBA’s 2-3 percent target band, and wage growth a modest 2.1 percent year-on-year, there exist little immediate inflationary pressures.
The CAMA RBA Shadow Board clearly believes that the cash rate should not be cut any further. The Shadow Board attaches a 57 percent probability to a rate hold being the appropriate policy setting. The confidence attached to a required rate cut equals a mere 5 percent, while the confidence in a required rate hike equals 38 percent.
Australia’s unemployment rate fell ever so slightly, to 5.7 percent, according to the Australian Bureau of Statistics, as did the participation rate, which stands at 64.88 percent. June’s (revised) increase in full time employment of 44,000, was completely reversed in July.
Furthermore, part-time employment, after falling by 33,200 in June, increased by a whopping 71,590 in July. The overall increase in part-time employment, relative to full-time employment, may be cause for concern. While it may reflect a flexible, nimble labour market, it could also be a sign that the labour market is softening, capturing a degree of underemployment. The seasonally adjusted wage price index increased by 2.1 percent year-on-year in the second quarter of 2016, unchanged from the previous quarter.
For the last month the Aussie dollar, relative to the US dollar, has been range-bound, trading between 75 US¢ and 77 US¢. Yields on Australian 10-year government bonds rarely budged, remaining at their historic lows below 2 percent.
Domestic share prices peaked on 1 August and have retreated slightly since then. Worldwide, after the three-week rally in July, most stocks have been going sideways, confirming the old adage that August is a slow month for the share market.
Absent any major surprises in the world economy, prospects for economic growth in the major economic regions continue to be modest. Jobs growth in the US has been solid in June (292,000) and July (255,000), but predictions for the August statistic, to be announced on 2 September, are smaller. US investment numbers continue to be relatively weak and these are unlikely to improve significantly prior to the US election in November.
Brazil’s economic fortunes, after the recent deposition of its President, Dilma Rousseff, remain highly uncertain. Germany’s fiscal surplus of 1.2 percent of GDP for the first half of 2016 is not matched by the periphery’s economies. The imbalances between Germany and its Eurozone partners will generate further pressure for Germany to increase spending and provide stimulus for the region.
Consumer confidence, as measured by the Westpac-Melbourne Institute Consumer Sentiment Index, rose slightly. The manufacturing PMI, which measures the performance of the manufacturing sector based on surveys of 200 industrial companies, fell dramatically last month, from 56.40 to 46.90, the lowest reading since June 2015. Numbers for this month’s Services PMI have yet to be released. Capacity utilization remains just above 81 percent; after a big gain in June, the AIG Construction Performance Index receded slightly, from 53.2 to 51.6 in July.
The Shadow Board attaches a 57 percent probability (54 percent last month) that “no change” is the appropriate policy, a 5 percent probability (28 v last month) that a rate cut is appropriate and a 38 percent probability (18 percent in the previous month) that a rate rise, to 1.75 percent or higher, is appropriate. The substantial increase in the confidence attached to a rate rise (and the corresponding fall in the probability confidence attached to a rate cut) reflect the Shadow Board’s mild disagreement with the RBA’s decision to cut the cash rate in August.
The probabilities at longer horizons are as follows: 6 months out, the estimated probability that the cash rate should remain at 1.50 percent is virtually unchanged at 24 percent, one percentage point up from the previous month. The estimated need for an interest rate decrease equals 11 percent (29 percent in August), while the need for a rate increase equals 65 percent (48 percent in August).
A year out, the Shadow Board members’ confidence that the cash rate should be held steady equals 18 percent (16 percent in August), while the confidence in a required cash rate decrease equals 10 percent (26 percent in August) and in a required cash rate increase 72 percent (58 percent in August).
<a href="/images/2016/09/06/Screen%20Shot%202016-09-06%20at%2010.31.20%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/06/Screen%20Shot%202016-09-06%20at%2010.31.20%20AM.png" alt="">
For more information, <a href="https://cama.crawford.anu.edu.au/rba-shadow-board" target="_blank">click here</a>.
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No need for rates to go lower after last month’s cut: RBA Shadow Board

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GUEST OBSERVER
It was no surprise that the current competitive property market was causing many home buyers to lose sleep.
According to a survey released last week by St. George Bank, more than 50 percent of the 1,000 first home buyers surveyed were losing sleep over the property hunt while 25 percent found themselves losing focus at work. 
Unfortunately there was a common misnomer that buyer’s agents were just ‘for the wealthy’ and not for the average Australian home buyer. 
The old adage ‘you’ve got to spend money to make money’ was particularly relevant when engaging a buyer’s agent and first home buyers needed to be made aware that professional help was available. 
What a lot of people don’t realise is that an investment in a professional who’s been buying property for 10 or 20 years, who has the contacts and knows how to negotiate, is actually making you money and saving you money all at the same time.
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Generally speaking extremely wealthy people can afford to lose more money than your average first home buyer.
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It comes down to a level of risk and the average Australian first home buyer is not able to take that level of risk without professional advice. 
You only have to look at the average house price 10 years ago to now to see how prices have jumped in every capital city around Australia. 
Hindsight shows what you would have made in capital growth versus the cost of engaging a buyer’s agent. 
Likewise by panicking and either overpaying or not doing anything at all costs a whole lot more than engaging a professional.
When it comes to fees, there is no industry standard however the general rule of thumb is a two percent commission plus GST on the purchase price. 
On the flipside, some buyer’s agents choose to charge a fixed fee. 
It very much depends on the suburb you’re buying in, the price of the property and how much of the service you want to pay for. 
Maybe you’ve done all the research and you simply want an independent third party to validate your opinion or you would like a buyer’s agent to bid on your behalf at auction. 
At the end of the day you need to find the right buyer’s agent that’s giving you the right level of service. 
Like anything in life, quality comes at a cost.
Rich Harvey is REBAA president and can be contacted <a href="https://www.rebaa.com.au/" target="_blank">here</a>.
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Property 101: Buyer's agents aren't just for the wealthy: Rich Harvey

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The incoming Governor, Philip Lowe, has welcomed the appointment by the Treasurer of Dr Guy Debelle to the position of Deputy Governor of the Reserve Bank of Australia and as a member of the Reserve Bank Board. Dr Lowe said:
‘I warmly congratulate Dr Debelle on a well-deserved appointment as Deputy Governor of the Reserve Bank of Australia. Over many years, he has made major contributions to the Bank’s economic and financial policies. He has also led some of the important international work aimed at improving the functioning of financial markets. I am confident that over the coming years the Reserve Bank Board will benefit greatly from his wealth of experience and expertise.’
Dr Debelle will take up his new role on 18 September. An Assistant Governor role will be advertised shortly.
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Guy Debelle appointed Deputy Governor of the Reserve Bank of Australia

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<img src="https://counter.theconversation.edu.au/content/64733/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Federal Government’s plan to wind back superannuation tax breaks would create a fairer superannuation system more aligned to its purpose of providing income to supplement the Age Pension, according to new Grattan Institute analysis.
It would also contribute to budget repair.
The analysis shows how either of the reform packages proposed by both major parties would be a big step in the right direction. It explores how the current system provides much larger benefits to those with such ample resources that they will never qualify for an Age Pension. And it shows how the proposed changes would affect them - and pretty much nobody else.
As they debate the Coalition government’s proposals to wind back tax breaks on superannuation, politicians on all sides can do three big things: create a better and fairer superannuation scheme; take an important step towards repairing the Commonwealth budget; and show that our political system still works.
Both main parties have laid out their preferred reforms to super tax concessions. While they agree on all but the details, they are yet to strike a deal. Our new research shows what is at stake.
<h2>A better, fairer, super system</h2>
First and foremost, the proposed reforms to superannuation announced in the 2016 budget are about making super better, and fairer.
Tax breaks should only be available when they serve a policy aim. The purpose of super identified in the budget and <a href="https://sjm.ministers.treasury.gov.au/media-release/053-2016/">due to be defined in legislation</a> is to provide income in retirement to substitute or supplement the Age Pension. Super tax breaks don’t fulfil this purpose when they benefit those who were never going to qualify for an Age Pension in the first place.
The plans of both the government and the ALP would be big steps towards aligning super tax breaks more closely with their purpose. They would trim the generous super tax breaks enjoyed by the top 20% of income earners – people wealthy enough to be comfortable in retirement and unlikely to qualify for the Age Pension.
Retirees with large superannuation balances will start paying some tax on their superannuation savings, but still pay much less tax than wage earners on lower incomes. For a small proportion of women with higher incomes later in life, the changes will reduce their catch-up contributions. Yet the changes will reduce the tax breaks far more for wealthier old men.
Claims that the budget changes will affect many low and middle-income earners are wrong. Our research shows the changes will affect about 4 percent of superannuants, nearly all of them high-income earners who are unlikely to access the Age Pension. Nor are the proposed changes retrospective. Many reforms affect investments made in the past, and no-one suggests they are retrospective. Rather, the changes will affect taxes paid on future super earnings, and entitlements to make future contributions to super.
Any plausible combination of the packages on offer would make the super system fairer. At present, someone in the top 1% of income earners can expect to receive nearly three times as much in welfare and tax breaks from super in their lifetime as an average income earner. The government’s changes would trim some of these excesses: the top 1% would instead receive just twice as much as low or average income earners. And by targeting tax breaks that go to the top 20 percent of income earners, neither side’s plan would see much of an offsetting increase in Age Pension spending.
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Modelling on super reforms The Grattan Institute, Author provided
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<h2>An unsustainable tax system for seniors</h2>
Decisions by the former Coalition Government to abolish taxes on superannuation withdrawals in 2007 and radically increase the amount senior Australians could earn before paying income tax have dramatically reduced the tax bills of older Australians.
These changes are one of the main reasons why households over the age of 65 (unlike households aged between 25 and 64) now pay less income tax in real terms today than they did 20 years ago. At the same time, the workforce participation rates and incomes of seniors have jumped. Generous super tax breaks have been funded by deficits. The accumulating debt burden will disproportionately fall on younger households.
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Tax breaks to older Australians are also a major cause of the increase in the “taxed nots” identified by Treasurer Scott Morrison. The number of older Australians not paying any income tax has increased from three in four in 2000 to five in six today. The rise of these “taxed nots” coincides with the introduction of the Senior Australian Tax Offset in 2000, and tax-free super withdrawals in 2007.
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<h2>Repairing the budget</h2>
The increased cost of services and reduced taxes per older household explain in large part why the Commonwealth budget is in trouble. For eight years, budget deficits have persisted at about 2 to 3 percent of GDP, and the future looks little better. The returned Turnbull government is putting a priority on budget repair, now described as a “massive moral challenge” by the Prime Minister. Winding back some of the tax breaks given to older Australians during the happier times of the mining boom is an obvious step.
The government’s super package would save the budget at least A$800 million a year. Alternative proposals by the ALP, which broadly supports the Coalition’s reforms, and then goes further, would save more than A$2 billion a year. Should Treasurer Morrison seek a deal with the ALP or the Greens, any “concessions” will mostly improve the budget position.
Nor is the Turnbull government likely to find more attractive opportunities for budget savings. Unlike most of the government’s savings measures, changes to super tax breaks are broadly popular. Electorates more likely to be adversely affected by the super changes – that is, those with more old and wealthy voters – tended to swing less to the ALP at the last election than other electorates. And a survey before the election showed that the proposals had more support amongst those most likely to be adversely affected.
<h2>A test for our political system</h2>
Even after the reforms, super tax breaks will still mostly flow to high-income earners who do not need them, and the budgetary costs of super tax breaks will remain unsustainable in the long term. Further changes to super tax breaks will be needed in future. But agreeing to the super package now before the Parliament would be progress in the right direction. And there is a broader issue at stake.
Super is only the first of a number of difficult choices that will come before the Parliament as government seeks to promote economic growth in a sluggish global economy, and bring the budget back under control. There is no easy road to these ends that will keep everyone happy all the time. Pragmatic compromise will be critical.
The proposed changes to super tax breaks are built on principle, supported by the electorate and largely supported by the three largest political parties. If we cannot get reform in this situation, then our political system is in deep trouble. In coming weeks, our MPs have the chance to show how government in Australia can still change the nation for the better.
John Daley is chief executive officer, Grattan Institute, and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/john-daley-1870" target="_blank">here</a>.
Brendan Coates is a friend of The Conversation and can be contacted <a href="https://theconversation.com/profiles/brendan-coates-154644" target="_blank">here</a>.
William Young is associate, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/william-young-260984" target="_blank">here</a>.
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New Grattan research shows what is at stake in the superannuation debate

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Prices have again been on the rise, but will the mighty Sydney residential market be tamed this spring like last spring? That's the big question as we start the peak selling season.
Probably not by much as buying demand is strong, and new supply remains low.
The early September low stock levels pretty much following the trend of much of the year. New listings are down by 20 percent year on year, according to CoreLogic.
Normally low listings mean vendors don't think they can get their asking prices.
But there's no such lack of confidence on that front with the Sydney weekend auction clearance rates stepping up through the 70s and even into the 80 percent plus stellar success levels.
Yes there is a back-of-mind anxiety about the future of the Australian economy which inhibits some listing activity.
The mid-year Federal election certainly didn't help momentum with Tracey Fellows, the head of realestate.com.au, saying uncertainty surrounding the July election outcome contributed to listings being down 11 per cent compared last year. 
Sydney's boom-like conditions are now effectively four years long - give or take a few minor pauses since things started to turn upwards in mid-2012 - so those opportunistic speculative offerings by savvy operators have virtually been exhausted.
Sure there's always the demographic offerings - arising from births, deaths, marriages and divorce. But the common cry from many a prospective seller has been "where could I buy." And so they hold off their listing because they can't see the answer.
Last month at Pennant Hills, in Sydney's north-west, a four-bedroom family home sold for $1,824,000 at auction, at $174,000 above the highest offer made before the auction. 
The four-year-old house only went on sale because of a marriage breakdown.
It was strongly contested - with 10 registered bidders - in an area starved of stock, Ray White agent James Andrews said. 
There are 2555 homes in Pennant Hills and not one per cent is on the market, he noted.
"Stock levels are low. It's a very, very desirable area."
There are just five September auctions in Pennant Hills advertised on realestate.com.au, with Andrews having two of these offerings next weekend. There are another six houses listed by private treaty.
Housing market conditions are very different from region to region, capital city to capital city, but the unexpected re-emergence of strong price growth in Sydney has caught most forecasters - and presumably the RBA and APRA - off-guard. 
Tim Lawless who heads research at CoreLogic says listings matter.
"The number of properties being advertised for sale provides a vital clue about the direction of housing prices.
"Those cities where advertised stock levels remain short are continuing to see upwards price pressures, while cities with historically high stock levels are seeing downwards pressure."
CoreLogic is currently tracking just over 19,000 listings across the metro region of Sydney.
"As a comparison point, when the Sydney market was moving through a down phase between late 2010 and mid-2012, CoreLogic was tracking just over 40,000 properties on the market," Lawless advised.
"The fact that Sydney listing numbers remains so low is one of the factors providing the upwards pressure on housing prices.
"Buyers simply don’t have a lot of stock to choose from, which creates urgency in the market and provides leverage to vendors when setting and negotiating their prices," Lawless noted.
Being spring we are likely to see an upwards trend of newly advertised properties enter the market.
But will it be enough to tame the market’s strength?
This article was first published in the Saturday Daily Telegraph.
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Sydney spring price prospects to be shaped by stock influx

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<img src="https://counter.theconversation.edu.au/content/63394/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
New research on the business models of Fairfax and APN from 2004 to 2013 confirms the two companies have failed to transform their revenue structures from print to digital.
However, Fairfax CEO Greg Hywood argues that the company’s 2016 full year result is “proof that the [digital] transformation of Fairfax Media over recent years has succeeded".
Recently, American billionaire Warren Buffet said that for most American newspapers “the transition to the internet so far hasn’t worked in digital. The revenues don’t come in”. He added that “local newspapers continue to decline at a very significant rate”.
Despite the gloomy outlook, News Corporation is expanding its regional newspaper portfolio in Australia. The company is buying APN’s regional papers including 12 daily newspapers and 60 smaller publications.
In New Zealand, Fairfax Media and New Zealand Media Entertainment (NZME) are currently seeking merger approval from Commerce Commission. If the merger is cleared, the new company will have 89 percent market share in New Zealand’s print newspaper market. Fairfax is expected to own 51 percent of the merged company’s shares (currently, News Corp owns 14.99 percent of NZME shares).
Why the sudden interest in the sinking ship, print? Is it because the assets are cheap? In 2016 Fairfax made a heavy loss as it wrote down almost a billion dollars of its publishing assets.A closer look at News Corp’s and Fairfax’s revenue structures may shed some light on this interest in print.
In 2016, Fairfax’s Metro Media, Australian community media, and New Zealand media contributed 75% of the company’s total revenue. Domain Group delivered 16% of its total revenue.
This simply shows that the company’s revenue, if not profit, is still reliant on the traditional revenue streams. Similarly, in the 2016 financial year, 64% of News Corp’s revenue came from news and information services and 9.9% from digital real estate services.
<h2>Digital revenue covers a fraction of expenses</h2>
Both Fairfax and News Corp argue they are turning into truly digital media companies, and clearly, something is changing. Both companies seem confident that their digital future lies in real estate and listing services. Commenting on the 2016 results, News Corp chief executive Robert Thomson said:
“Since the advent of the new News three years ago, revenue at Digital Real Estate Services has more than doubled, and it is expected to become the biggest contributor to [earnings] in the future.”
Similarly, Fairfax’s chief executive Greg Hywood says digital and non-print earnings now make up more than 40 percent of Fairfax’s earnings before interest, taxes, depreciation and amortisation (EBITDA). If this trend continues, he says, next year it will be closer to 60 percent.
Both companies make a decent profit on their digital real estate services (and the share of profit is growing), but Fairfax’s digital revenue currently covers only 14 percent of the companies' total expenses. So the company’s bright digital future clearly requires more cost cutting.
Recent research  shows that both Fairfax and News Corp have some work to do before they are “truly digital”, meaning the majority of their revenue comes from digital sources. For example, in 2015 digital revenue made 62 percent of media groups Norwegian Schibsted’s and German Axel Springer’s total revenue. For Fairfax, the same number was 16.4 percent and for News Corp 8 percent.
According to Fairfax, in 2016 its paid digital subscriptions grew 17 percent to 209,000. The revenue from these was $38 million, representing two percent of the company’s total revenue. News Corp’s digital subscriptions continue to grow and “account for approximately 45 percent of the subscriber base".
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The company states that “digital revenues represented 23 percent of news and information segment revenue". Based on this percentage, the digital revenue delivered by its news and information services made 1.2 percent of the company’s total revenue.
<h2>Convergences across telcos and media</h2>
A short-term outlook for the traditional television broadcasters in Australia and New Zealand is weak. For example, in August Seven West Media gave a profit warning and is expecting its profit to fall 15-20 percent in the coming year due to the flat advertising market. Its 2016 pre-tax profit was $207 million of which Channel Seven contributed 82 percent.
Clearly, digital transformation is proving challenging for television broadcasters as well as newspapers, and more consolidation can be expected across the sector. This will also occur across the media, telecom and internet service providers. In April, it was rumoured that APN and Nine Entertainment were considering a mega merger, but this is yet to materialise.
In New Zealand, the pay television provider Sky TV is seeking merger approval with Vodafone NZ. Sky TV says the merger is necessary because, “the change in how video content is delivered to consumers is transforming traditional television and content markets”. The company is facing increasing competition from companies such as Netflix, Quickflix and Apple TV.
Interestingly, Fairfax Media is also branching out in New Zealand by launching a new internet service provider – Stuff Fibre. The new service will offer uncapped ultra-fast broadband, unlimited data, and no fixed term contracts.
Fairfax is clearly seeking to expand and to control its online content and video delivery. In New Zealand, the company already has an agreement with Radio New Zealand and TVNZ for content delivery.
Yes, media companies are transforming, and they have to, as the financial results demonstrate. On Friday, APN announced that it is now an “outdoors media and radio” company, as opposed to a news publisher or news corporation. Fairfax and News Corp are starting to look more like digital real estate providers. This strategy makes business sense, but one has to wonder if there is still room for journalism within it.
Merja Myllylahti is project manager and author for Journalism, Media and Democracy (JMAD) Research Center, Auckland University of Technology and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/merja-myllylahti-106912" target="_blank">here</a>.
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News publishers are transforming, but into what?

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GUEST OBSERVER
Non-bank lending has become a phenomenon in the Australian property market. Although official statistics are hard to come by, anecdotal evidence suggests that private groups are lending Aussie companies and individuals billions of dollars each week.  
What created this amazing trend in private lending, what does the non-bank lending landscape look like and where will the market go next?  Delving into these questions will give you a good idea about the state of the Australian real estate market today.
How Did It All Start?
Non-bank lending has been going on in Australia for many years. Companies like Pepper and Resimac have taken over a huge chunk of the home mortgage market and Aussie Home Loans’ CEO John Symonds has for years been assuring Australians that “At Aussie, we’ll save you.”
In the commercial lending space, Development Finance Partners, MaxCap, Qualitas and Balmain Group have been underwriting property developments for a long time.
Things accelerated sharply, however, in July 2015 when the Australian Prudential Regulation Authority (APRA), aided by BIS Shrapnel and egged on by the RBA, significantly increased the capital requirements for Australian banks.
This, along with the Labor Party’s aggressive stance on negative gearing, and a scandal involving falsified loan documents at ANZ and Westpac, has resulted in a significant slowdown in property lending by Australia’s Big 4 banks:
<a href="/images/2016/09/05/big-4-lending-book.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/05/big-4-lending-book.png" alt="">
Had the Big 4 continued to grow their investment housing lending book at the same average rate as they did the 12 months ended June 30, 2015, they would have lent an additional $68.4 billion into the market.
At the same time, the Big 4 have also begun to pull back on corporate lending, and while this trend is still emerging, it has added to the challenges faced by property buyers:
<a href="/images/2016/09/05/big-4-lending-book.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/05/big-4-lending-book.png" alt="">
Faced with dramatically tougher lending requirements, Australian property developers, investors and buyers have been scrambling to fill this $68 billion gap.
Old Problems
The lending drought has given new urgency to the age-old financing problems faced by every property developer.  Land banking, the first step in most property developments projects, has mostly been subjected to lower loan value ratios (LVRs), shorter loan terms and higher interest rates.  Development and mezzanine funding have also seen a toughening of terms, as well as the imposition of higher requirements for presales and decreased limits on the portion of offshore sales allowed.
Perhaps the problem that’s proven most urgent, dangerous and difficult to solve has been settlement pipeline financing.  Although final settlements often only account for 20% of the total sales price, many borrowers, especially foreign investors, have found it impossible to obtain financing of any kind for this portion of the acquisition.
This has created a great deal of nervousness around settlement pipelines, and the possibility that large numbers of buyers would fail to settle their purchases.
While this has not happened and, in fact, groups like Lendlease have announced higher than anticipated, settlement risk remains a concern in many corners.
New Solutions
The challenges of property developers and investors have attracted the attention of private lenders looking to charge premium rates and fill the gap left by the banks. In addition to established players like Wingate, Balmain and a host of existing property funds, three new groups have stepped into the market.
The first of these new entrants are cashed-up Australian property developers. These players are usually large property companies that are flush from the recent completion of a project.
They tend to be highly localized, only lending into a particular type of development (e.g. only high-rise apartments) and only in one geographic area (e.g. Melbourne CBD).  These lenders are often looking for ways to get into the projects they’re funding, with an eye to taking over the development if the borrower is unable to repay the loan.
A more opportunistic group includes purpose-created special investment vehicles, family offices and high-net worth investors. This group is attracted to the high interest rates and strong security positions on offer. These players are more transactional, less strategic and much less established than cashed up developers.
The final group consists of foreign banks, investment funds and high-net worth investors, particularly from the US, China, Singapore and Malaysia. These entities are often connected to property investors from their home country, who have some knowledge of the Australian market and who see an opportunity to further their investment goals by jumping in where the large Australian banks have moved out.
Taken together, these new sources of non-bank lending are beginning to make a substantial impact on Australia’s property lending deficit.
David Chin is managing director, Basis Point, and can be contacted <a href="https://basispoint.com.au/" target="_blank">here</a>.
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The surprising rise of non-bank lending in the Australian property market

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GUEST OBSERVER
The life of Defence Force personnel is volatile to say the least. Serving members can suddenly find themselves sent off to the furthest reaches of the globe with little notice.
Or they can be shifting bases around Australia, New Zealand or the Pacific. Of course, they could also be sent into battle in the depths of a war zone. 
This is why the men and women of our Defence Force are so highly, and deservedly, renumerated - from subsidised costs in housing and education to transport and health. But it’s a little known secret that they’re in the box seat to get terrific benefits from property investment. Like many professionals, Defence Force personnel are time poor and probably don’t even think of themselves as potential investors.
In fact, Defence Force personnel have a head start over most investors due to the housing support and rental subsidy issued to them by Defence Housing. This means that their outgoing expenses are far lower than most Australians. It immediately gives them extra cash that can be used to fund investment. 
There are many good reasons why property investment especially suits members of the Defence Force. Let’s run through a few of them:
Secure with Long Term Growth
Australian property investment is deeply entrenched in the long-term.  For Defence Force members it’s perfect, as it requires very little management once it’s set up. Consider other investment options like shares, which are always going to be volatile. These options require the owner to be constantly agile and flexible and most of all, highly attentive and responsive to the market. Yes, you can have a personal stockbroker managing them for you, but this person will still be contacting you frequently for your sign off. It’s also been clearly demonstrated that property is a far more profitable and safe investment than stocks and shares in the very long term. 
Defence personnel make the perfect investors, yet most are unaware of their own massive potential.
Property is far less responsive and reactive than shares. A financial melt down in the US, for instance, is unlikely to affect the capital growth of a house in Wollongong. The property market in Australia has always been and will continue to offer stability. Australia will always be a desirable place to live and that is a certainty that cannot be said about other kinds of investment markets.
Once the investor has chosen an affordable property in an area of demonstrated capital growth, this means they have very little to stress about. As long as they have a good property manager in place, the property will ideally pay for itself as well as accumulating years of strong capital growth.
This suits the life of a Defence Force member, especially when they are deeply immersed in their work and their busy lifestyle that doesn’t allow them time to focus on investments. If you’re suddenly about to fly into the Middle East the last thing you want to worry about is selling your stock options. Fortunately, well-researched property investment means that you won’t have to. 
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">DPN</a>. 
 
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How to crack the property market as a Defence Force professional

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.

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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> 
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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

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