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The Lempriere Group is in due diligence to buy Agrium's Landmark agency and trading business.
The deal is estimated to be worth about $1.2 billion, Fairfax Media suggest.
Agrium bought Landmark as part of its acquisition of AWB in 2010 in a $1.2 billion deal. 
Landmark has more than 105,000 clients, representing more than 75 percent of all farms as Australia's largest distributor of merchandise and fertiliser as well as being a major wool and livestock trader. 
The company's revenue to December 2015 was $2.3 billion ranking it among the top three biggest agricultural companies in Australia behind Graincorp and Nufarm.
Ruralco has also been mentioned as a possible contender for part of the Landmark business. 
The fifth-generation Australian business Lempriere Group is partners with the Chinese textile giant Shandong RuYi in 2012, following the joint purchase of Cubbie Station, near Dirranbandi, Queensland.
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Lempriere Group look at Agrium Landmark acquistion

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The McGrath Ltd chief operating officer Geoff Lucas has quit to take a role at the NSW bread maker and café group, Sonoma.
Lucas announced his resignation to staff yesterday that he intends to pursue the business opportunity after being at the estate agency for almost eight years.
He will start with Sonoma as chief operating officer as Sonoma is on an expansion path.
Lucas retains a 4.3 percent shareholding in the recently listed McGrath Group.
He was previously chief executive at Credit Corp, the financial services sector company.
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Geoff Lucas quits McGrath for bread maker

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GUEST OBSERVER
There’s been a lot of chatter lately about an impending property oversupply and waning investor demand.
Sorting through stories about the imminent burst, homeowners and investors are relishing in the news that property prices have climbed and that capital gains are plentiful. Knowing which ‘expert’ to trust can be as challenging as predicting Melbourne’s weather. Just like news has a cycle, property has one too and the same way every overnight sensation blows over, the hype of oversupply will too.
The best type of investor you can be is an impartial one, so take back the control by arming yourself with the facts and don’t let the hype hinder your future.
Fact Vs. Fiction
BIS Shrapnel recently released a report outlining that by 2017, most cities will be in the thick of an apartment oversupply and Melbourne’s inner suburbs will be among the worst hit. Sounds alarming but let’s take a look at the facts. According to the Australian Bureau of Statistics, Melbourne is Australia’s fastest growing capital city, adding 91,600 people in 2015 – 2.1 percent more than Sydney.
Within that period of rapid growth, there were only 50,000 new dwellings constructed yet some experts are still convinced that the crash is coming. We’re not trying to prove the media wrong, but we are encouraging you to search beyond the sentiment and filter fact from fiction.
Trend Is Your Friend
Throughout the ages, property supply has ebbed and flowed in line with population growth and affordability and on the other side of every oversupply is an undersupply. Embrace the trend, it’s reassuring. Looking at the past, we know that property has doubled every 8 to 10 years and that on average, units gain 4.5% every year.
Hallmarks Of Homework
Before writing off your investment for fear of an oversupply, take a macro look at the Melbourne market. Last year, 7 out of the country’s top ten growth areas were in Greater Melbourne – find those areas and do your research. The hallmarks of a solid property investment are infrastructure, growth, schools, cafes, amenities and a growing population. You don’t need to be an expert to do your homework, it’s as easy as taking a drive and getting to know the neighbourhood.
Practice Patience
In the words of the Warren Buffet ‘Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.’ The short-term market sentiment is always irrational and fear breeds failure, so keep your focus on the future and remember that property is a long game. Before you take the property plunge, set yourself up for success and know your risks.
The problem with a lot of the commentary is that it gives a one-sided, somewhat sensationalised view of what’s going on and more often than not, it’s from an outsider's perspective. Sure, it’s easy to believe what you read, but at the end of the day, the question you should be asking yourself is whether the decisions you’re making are informed and aligned to your investment strategy. 
Marshall Condon is founder and chief executive officer of <a href="https://neueblack.com.au" target="_blank">Neue Black</a>.
 
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Filtering property fact from fiction: Marshall Condon

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GUEST OBSERVER
Most Australians believe the best way governments can assist the property market is to stop overburdening homebuyers with the crippling costs of stamp duty.
A poll iBuyNew which asked ‘What would be the best way for government to assist the property market?’ found 55 percent of respondents wanted to cut stamp duty.
Thirty percent of participants in the online survey suggested increasing first home buyer grants would be most effective, while 15 percent called for negative gearing to be scrapped.
Most governments remain over-reliant on stamp duty. 
State governments still have an unhealthy dependence on stamp duty which is just a drag on the economy and a handbrake on homebuyers.
If governments are not prepared to abolish stamp duty they should at least consider reductions or more concessions for certain buyers.
Greedy state governments had also been behaving badly by slugging foreign investors with excessive new surcharges and tax increases.
Foreigners buying property in Australia should be paying some tax but the measures that were recently announced by the NSW, Victorian and Queensland governments were over the top.
iBuyNew survey results:
What would be the best way for government to assist the property market?
Cut Stamp Duty                                             55 percent
Increase first home owner grants                     30 percent
Abolish negative gearing                                 15 percent
Mark Mendel is chief executive officer, iBuyNew and can be contacted <a href="https://www.ibuynew.com.au" target="_blank">here</a>.
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State governments have an unhealthy dependence on stamp duty: Mark Mendel

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The NSW Deputy Premier and Minister for the Arts, Troy Grant has unveiled working designs for the largest program of upgrades to the Opera House since it opened in 1973.
Some 8.2 million visit each year, but the precinct will need to be closed for around 18 months as the NSW Government has committed $202 million from the renewal plans.
They will:
<ul>
<li>Upgrade the acoustics, accessibility, efficiency and flexibility of the Opera House’s largest internal performance space, the Concert Hall, which hosts world-leading classical and contemporary musicians, speakers and other performers;</li>
<li>Transform office space into a new Creative Learning Centre, a dedicated place for children, families and young people;</li>
<li>Remove the existing intrusive marquee from the Northern Broadwalk, and build a premium Function Centre within the building envelope, with spectacular views of the harbour; and</li>
<li>Create a welcoming, car-free entrance under the Monumental Steps, and improve access to a more comfortable and inviting main foyer.</li>
</ul>
Australia’s premier tourist destination and performing arts centre, the Opera House contributes $775 million annually to the NSW economy and has a national-identity value of $4.6 billion, according to Deloitte Access Economics.
Jan Utzon, architect and member of the Opera House’s Eminent Architects Panel (EAP), said his father believed the building would need to change over time to meet the requirements of the day, while retaining the integrity of its architecture.
“When my father was re-engaged to look into the Opera House, he realised it was necessary to look at the Opera House with new eyes,” said Mr Utzon, who worked with his father after Jørn’s re-engagement in 1999. “He realised times had changed and that a functioning arts centre will always need to adapt to the culture of the moment.”
The largest of the four NSW Government-funded projects, the Concert Hall upgrade is expected to take 18 months to complete. Construction will begin in mid-2019 and the hall will reopen with the SSO’s 2021 season.   
For more information see: <a href="https://sydneyoperahouse.cmail19.com/t/r-l-wtltrut-hjiyfudly-i/">sydneyoperahouse.com/renewal</a>
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Sydney Opera House set for 18 month closure

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GUEST OBSERVER
“Record low interest rates”. This seems to be the headline of the year, having been used so many times it is hard to remember any other kind of interest rate. Each time we see this, expectations for another rate cut decrease momentarily, only to return to the same, pre-cut probability-levels after a few weeks. 
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Figure 1 paints a clear picture of a similar short-term outlook, yet weakening long-term expectations.
<a href="/images/2016/08/12/Screen%20Shot%202016-08-12%20at%209.45.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/12/Screen%20Shot%202016-08-12%20at%209.45.34%20AM.png" alt="">
While this graph does not include data since the rate cut (yields on 10 year treasuries have lifted a whopping 0.03 percent since the July levels shown in Figure 2), we can see almost identical movements at each maturity date from May to June and from June to July.
<a href="/images/2016/08/12/Screen%20Shot%202016-08-12%20at%209.47.22%20AM.png" target="_blank">Click to enlarge</a>
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Yields on 3 year bonds are down 0.05 percent, 5 year bonds are down 0.1 percent and 10 year bonds are down 0.2 percent. 
This is almost a textbook example of yield curve inversion. In fact, yields on 90 day treasury bills in June were identical to those on 10 year bonds at 1.93 percent. 
Other than perhaps transaction costs, there is no reason for an investor to take on the extra risk of longer term securities without any increase in expected return. 
The RBA had little choice but to cut rates again. 
Figure 2 shows a similar picture, with greater inversion in the short and medium-term (up until about 2022) and lower yields on long- term maturities. 
This is a dangerous combination. 
An interest rate cut effectively lowers the short-term cash rate (i.e. 90 day yield), which normalises (steepens) the yield curve.
In theory, this stimulates the economy by making borrowing cheaper and incentivising banks to borrow at the short-term rate and lend out at the higher long-term rate. If the curve continues to flatten out (as it did since the last rate cut in May) then this impact is almost entirely negated. Like a see-saw, rates will continue to decrease until long-term expectations increase or at least stabilise. 
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Rates will continue to decrease: Secret Agent 

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<img src="https://counter.theconversation.edu.au/content/63264/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Breeze blocks are having a moment in the sun. Having been painfully hip in the architecture of the 1950s and 60s, they were used so extensively, in both houses and commercial buildings, that they became ubiquitous anywhere in the world where it was hot – including throughout Australia.
While particularly associated with a beachy, holiday feeling – Gold Coast motels, houses in Palm Springs – they were really so widely-used that they can still be found pretty much everywhere. But after that postwar high point, they fell drastically out of favour, and languished for the next fifty years, built into the walls and gardens of our youths, widely loathed and reviled for being ugly and out of date.
Now their fortunes have turned again and architects, for the moment at least, can’t get enough of them: at the 2016 Houses Awards, announced two weeks ago, the “Best house under 200 metres squared” went to the Naranga Avenue House, by James Russell Architect – a lovely minimal house with a tight, rigorous plan, which undoubtedly won the award because of its “skin of delicate breezeblocks,” described by the awards jury as having “a sublime, ephemeral quality.”
Likewise, one of last year’s most published dwellings was Architect Prineas’ Breeze Block House, which transformed a 1950s bungalow through the use of a crisp, white-painted breezeblock screen wall. Dividing and defining two indoor/outdoor courtyard spaces, this wall also gives the house a distinct character.
You only need to dip into the Instagram feed of Sydney architect Sam Marshall, aka @breezeblockhead, to see the architectural community (including me, I’ll admit) collectively drooling over the multifarious screens, walls, fences, stairwells, undercrofts, carports, and garden rooms that this versatile material lends itself to. Marshall has been collecting images of breezeblocks for sixteen years, and has more than nine thousand followers.
Meanwhile on Pinterest it’s fascinating to see patterns and shapes from other countries – some highly inventive and very beautiful, a long way from the one or two rather stolid designs that were standard in the Adelaide suburbs of my childhood.
Patterned concrete blocks have a long (and sometimes celebrated) lineage. Some people credit Frank Lloyd Wright with inventing them, and indeed he did invent a precast concrete “textile block” system, which he used on several houses in Los Angeles including the Millard and Ennis Houses.
Inspired by the ornamentation on Mayan temples, the relief patterns on Lloyd Wright’s blocks are only slightly reminiscent of what we in Australia would call a breeze block (or screen block, or pattern block, or cinder block) because they are much less permeable – really his is a wall system, rather than a screen one.
The breeze block can also be linked more broadly to the tradition of the brise soleil, which refers to any kind of sun baffle installed outside the skin of a building (which is where the sun screens should be! Stop the heat before it enters your building envelope!). Breeze blocks are not (usually) structural, hence they were often used where a garden meets a house – patio screens or carports or garden walls. In commercial buildings, they were often used for stairwells, balcony screening, and curtain wall sun-shading to large windows.
Right now we are in the midst of a resurgence of interest in postwar design: the wild popularity of all things <a href="https://en.wikipedia.org/wiki/Mid-century_modern">mid-century modern</a> (or mid-mod, or MCM) has spread beyond furniture and houses to materials, and the breeze block has been carried along on that tide.
It is of course a well-known strategy to take the most passe thing you can find and re-appropriate it, for shock value, and to jolt everyone into seeing it anew. But in the case of the breeze block it seems to me more than that – because these “concrete masonary units” (as they’re technically called) actually have qualities that don’t exist in other materials.
You can make permeable walls out of timber or sheet materials or even bricks, but you won’t get quite the same effect as breeze blocks provide: a durable screen which is private and secure, offers sun shading and weather protection and ventilation, and has the added bonus of being highly patterned with geometric ornament. Breeze blocks expand the architect’s repertoire and ability to manipulate the wall with different degrees of solidity and permeability, openness and enclosure. 
Plus, they’re pleasing to the eye. A breeze block screen wall can be a beautiful thing – the pattern of each individual block adding to a greater whole, and a larger pattern, when they’re used en masse.
Of course, I didn’t always see the beauty in a breeze block. In fact, I thought they were hideous; an irredeemably ugly vestige of another time, banal and styleless, they reminded me of everything I hated about suburbia. Partly it was their materiality – concrete blockwork can be hard to love, especially in its untreated forms, and breezeblocks are made of a particularly scratchy and drab variety. It’s no coincidence that many of the contemporary architects are choosing to paint theirs.
So what can we make of this resurgence, other than yet another spin on the wheel of architectural fashion? Building materials come and go; my childhood home in the late 1970s had faux venetian glass in the windows and timber shakes on the roof – the very height of style at the time. Likewise, at the moment there is a rash of rusted corten steel, and an eruption of laser-cut perforated metal screens, creeping over the buildings of our cities – these are very modish right now, but in a few years they will be testaments to the (past) time of their design and construction, as all buildings and materials inevitably are.
 
Because, in fact, architectural fashions are far more than just frivolous or superficial fancies, they can tell us a lot about the values and concerns of a building’s culture, in a particular location, at a particular time. This is why architectural historians are so interested in past “fashions” (we might also link them to movements, or schools, or ideologies) – because they can be highly revealing. Thus the more interesting story here is not so much fashion, but temporality – how a thing, or material, or building, reveals its being of its time.
This also leads to a danger, for so-called “middle aged” buildings: it’s a truism of the heritage professions that when a building is old enough to seem unstylish and dated, but not yet old enough to be valued as legitimately historical and worth preserving, then it is highly vulnerable to being demolished, or equally of being renovated to death. Young buildings are valued, and very old ones are too, but middle-aged buildings are exposed, and many good ones don’t make it.
Finally, though, in the return of the breeze block is a story about ornament. Many contemporary architects are exploring new modes of surface and material ornament, and it’s easy to see the return of the breeze block as part of this movement. The exploration, and valuation, of pattern, geometry, adornment and richness in the surface of buildings is very much A Good Thing. And so, all hail the breeze block: a material redeemed.
Naomi Stead is associate professor, The University of Queensland and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/naomi-stead-108029" target="_blank">here.</a>
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The return of the breeze block

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<img src="https://counter.theconversation.edu.au/content/63757/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
China’s state-owned enterprises are becoming increasingly privatised, as government involvement shifts from full control to economic guidance.
This means these firms should be treated like any other foreign investor when it comes to buying Australian assets.
Treasurer Scott Morrison recently rejected the bids by both state-owned State Grid Corporation of China and private Hong Kong firm Cheung Kong Infrastructure for the lease of 50.4 percent of Ausgrid, the New South Wales electricity distribution network, on the grounds of national security.
Concerns about Chinese investment usually centre around the role of the Chinese government and its noncommercial objectives. China’s government does maintain extensive influence over its market economy, through both indirect policy measures as well as direct participation via state-owned enterprises.
However political economists argue the Chinese state is more developmental than predatory. This is because Chinese foreign investment policies have changed from a restricting and regulating approach, through strict approval mechanisms and foreign exchange allocation, towards a more facilitating approach.
The Chinese government provides general guidance, government services, and financial incentives to align commercial decisions of firms with the strategic planning of the country. One example of this is the one-belt-one-road strategy aimed at building economic cooperation and trade links with a number of countries, including Australia.
The vast majority of Chinese state-owned enterprises have upgraded their internal governance and senior management teams including appointing external independent directors or foreign senior managers. Many of these enterprises have taken steps to introduce mixed private ownership to improve managerial autonomy.
According to research, by 2013, more than 52 percent of central state-owned enterprises have transitioned into mixed-ownership enterprises. For example, China’s biggest oil producer, PetroChina Company Limited, is the the listed arm of state-owned China National Petroleum Corporation (CNPC), now publicly traded on Shanghai, Hong Kong, and New York Stock Exchanges.
The role of Chinese government in foreign investment alternates between that of a shareholder, who wants to invest in the safest and most profitable foreign assets to that of an economic coordinator, using investment as a channel of upgrading the country’s industry infrastructure.
<h2>China’s changing investment in Australia</h2>
China as an emerging economy has been a popular destination of foreign direct investment for decades since its “open-door” policy in the 1980s. Its participation in the global economy as an outward investor is a relatively recent phenomenon, with substantial growth only after China’s entry into the World Trade Organisation in 2001. The growth has however been trending upwards consistently in the recent years despite the global financial crisis.
The driving forces, motivations, and the resultant patterns of Chinese investment overseas have evolved over time. Starting in the early 1990s, Chinese investment was primarily concentrated in the natural resource sector, directly mandated by the state to compensate for the lack of raw material and energy supply domestically.
Chinese investment in manufacturing overseas picked up steam in the following years, partially in response to the rising labour costs and market competition at home that motivated producers to seek cost efficiency and market potentials in neighbouring emerging economies. It was also partly aiming to catch up with global market leaders by tapping into foreign markets for high-value brand assets, technological competencies, and other intangibles.
More recent years have seen Chinese foreign investment diversifying into the service sector, such as commercial services, mining services, logistics, and utility infrastructures, reflecting an effort by Chinese investors to move up the global value chain.
<h2>A level playing field in assessment</h2>
The notion that Western economies need to have foreign investment regulations (often China-specific) to ensure national security is disputed in academic research.
Existing regulations for foreign direct investment in advanced economies are already sufficient for safeguarding national interests. The sale of Ausgrid should have been evaluated based on the existing foreign investment regulations only rather than relying on the decision of the Treasurer, made on a case by case basis.
State-owned enterprises should disclosure the details of asset sales, not only financial details, but also the key contractual arrangements with regard to the ownership and operation of assets. Fair or unfair, Chinese state-owned enterprises are in a disadvantaged position in terms of their legitimacy perceived by host country stakeholders.
According to research, these sorts of enterprises should pursue shared ownership arrangements, such as a join venture structure, which can help these firms mitigate formal and informal institutional barriers in the host country.
Adhering to corporate governance practices and information disclosure norms of the host country can deliver greater transparency against sinophobia. Non-market strategies, such as networking with social and political leaders, as well as corporate social responsibility initiatives, can also help Chinese investors build local legitimacy in host countries.
Lin Cui is associate professor School of Management, Australian National University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/lin-cui-291117" target="_blank">here</a>.
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Changing state-owned enterprises provide less cause for Chinese investment fears

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<img src="https://counter.theconversation.edu.au/content/63758/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
This National Bookshop Day, Australia’s one-time Minister for Small Business, Nick Sherry, will be remembered for his words, not his deeds.
A reader, bookbuyer and enthusiastic patron of terrestrial bookshops, in June 2011 Sherry told a conference on online business that,
"In five years, other than a few speciality bookshops in capital cities, you will not see a bookstore. They will cease to exist."
Booksellers were livid, and I don’t just mean standing behind their counters muttering impolite thoughts about the minister down into their cardigans. They got pretty shouty. And determined to prove him wrong.
Australia’s inaugural National Bookshop Day was held two months later. The sixth, on August 13, will be the first to fall beyond the minister’s five-year time period. And bricks-and-mortar booksellers have outlasted VCR manufacturers, Kodachrome and Nokia’s dominance of the phone industry to still be alive and kicking.
As it turned out, the minister was wrong – he extrapolated too far – but there were reasons at the time to have reservations about the industry’s prospects. The REDGroup – parent company of Borders and Angus &amp; Robertson – had just gone into receivership and there were concerns that much of its 20% share of the Australian book trade might simply be lost, with those dollars drifting away from books, or at least from Australian retailers.
Amazon had been on the rise since the 90s, and almost no one could price like it. It paid no high-street rents, it paid no counter staff, it had scale and much of the time it wasn’t even focused on profit, cutting prices even leaner to build its customer database and achieve market dominance.
When Sherry spoke, the GFC was still a recent memory, and books had started to look like discretionary purchases. Around the same time, the promise of e-reading was finally realised with the arrival of devices that people were actually happy to use, such as the Kindle and the iPad. US ebook sales had <a href="">risen 1,260%</a> between 2008 and 2010. The line on that graph goes to a crazy place pretty quickly, if you let it.
Factor in the time-sucking vortex of the internet – Facebook, YouTube, news, gossip, downloadable games, streaming video services, op-ed pieces like, um, this one – and its potential impact on book reading, and the environment looks extra tough. Charles Darwin, survival-of-the-fittest tough.
So in 2011, it was possible, if you stared wide-eyed and fearfully at nothing but recent statistics and an upended entertainment landscape, to envisage a contracted book industry comprising only ebooks and a single enormous warehouse that had paper books zipping along conveyor belts and packaged and mailed by robots in response to a customer’s click on the other side of the world.
In the short term, Sherry seemed dangerously close to the mark. In the year he made his prediction, Australian book sales ended up crashing 18 percent by value. That is, a billion-dollar industry saw sales slump by almost a fifth in a single year. The following year, the industry relied on Fifty Shades of Grey to mask another disastrous fall. Remove that trilogy from the stats and sales dropped a further 12.5 percent in 2012.
But it’s now 2016 and the scheduled apocalypse didn’t arrive. So, what happened?
Ebooks are here to stay, but paper books aren’t going away and, despite Amazon, neither is the astute neighbourhood bookseller – who realises that ebooks are not an enemy vanquished and that the landscape is not what it once was, but that the local bookshop has a place in it anyway. Recently, bookshop numbers have been rising rather than falling. <a href="">According to Joel Becker</a>, CEO of the Australian Booksellers Association, “we’ve seen an increase over the past couple of years of about 5 percent.”
The ebook market will continue to evolve, and what ebooks are will continue to evolve too, but, in the absence of major drivers of new growth, sales are unlikely to grow at the rate they managed at the time of the Sherry prediction. The audiobook market will probably continue to expand.
While all panicked eyes were on ebooks, audio sales – now mostly digital downloads – were happily off to one side growing at double-digit speed year after year.
Meanwhile, back in the world of paper books, Amazon will not go away.
In fact, Amazon is opening bookshops of its own. Because maybe even it knows that “people who bought this also bought that” isn’t the same as browsing the shelves of a neighbourhood bookshop. It rates as an experience, and flicking through stamp-sized book cover images online really doesn’t.
Browsing in a bookshop feels like time well spent, while searching for a book online feel like squandered time – only the purchase counts.
A local bookshop is part of a community, working with schools and families and all nearby readers to link them with books they might come to love, connecting with its customers and bringing a human kind of expertise whenever it’s asked for. It is a hub for bookclubs and author events and the chance encounters that lead to the discovery of an unfamiliar writer who becomes a lifelong favourite. It remains far better than an algorithm when suggesting what book your eight-year-old niece or granddaughter might like for her birthday.
And, happy as I am to read ebooks or listen to audiobooks, the local bookshop’s product, paper books, rates as entertainment. The paper book is a value proposition. Twenty or thirty dollars buys you hours of deep, screen-free, distraction-free reading. Nothing pings, nothing beeps and your paper book doesn’t let you know about some random person’s Facebook update or a newly arrived spam email. In a world of multi-tasking and deliriously excessive inputs, reading a paper book is mono-tasking at its finest.
Paper books and the people in our neighbourhoods who sell them to us have not faded into the past and will not be going away any time soon. I’m sure Nick Sherry would be happy to be wrong about that, and will be as glad as any of us that we still have bookshops to celebrate at National Bookshop Day in 2016.
Nick Earls<a href="https://theconversation.com/profiles/nick-earls-291096" rel="author"></a> is PhD Candidate in Creative Writing, The University of Queensland and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/nick-earls-291096" target="_blank">here</a>.
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All hail the bookshop: survivor against the odds

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Residex says it is highly important to contextualise Hobart’s unit market growth figures because growth has been less consistent over the last five years compared to other cities.
Graph 1 shows a time series of quarterly sales and capital growth for the Hobart unit market.
Graph 1: Quarterly Capital Growth and Sales Numbers – Units, Greater Hobart
<a href="/images/2016/08/11/Graph_1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/11/Graph_1.jpg" alt="">
Source: Residex
The graph shows that strong growth in the May quarter came off the back of negative growth in the previous two quarters. It also follows losses in Hobart between 2011 and 2013. If you invested in the median Hobart unit in May 2010, when the median value was $282,000, you would have made nominal gains of just $5,000 in capital growth over the last five years.
Much of the stunted growth in Hobart is a result of the end of the mining boom and economic growth constraints such as geographic separation from the rest of Australia. However, as the Australian economy moves away from mining and into tourism, and those close to retirement develop an increased interest for investment properties, Hobart units suddenly present an affordable opportunity with high rental yields – which could account for the rebound of growth in the May quarter.
It is true that tourism has grown in Tasmania. Visitation to Tasmania and visitor expenditure in Tasmania grew approximately 7% in the year to March 2016. During this time, most visitors were people within Australia (85%), particularly Victoria (37%). A persistently low AUD may be encouraging domestic tourism for Australians as opposed to overseas visitations. Simultaneously, the low AUD could encourage further increases in international visitation, but this too is dependent on the stability of the global economy. Confidence in the global economy continues to be threatened by heavy migration flows and, in the short term, the possibility of Britain leaving the European Union.
Another important factor to consider is the wider Australian housing market, which is in the downswing phase of the growth cycle. As growth in housing slows, the wealth effect of housing diminishes, which may also reduce interstate visitation to Tasmania.
Another important consideration for those looking to Tasmania is rent. The rental yield on the median Hobart unit is currently 5.53%. Graph 2 shows the dollar value rent estimates of the median Hobart unit since 2010.
Graph 2: Historical Median Rent – Hobart Units
<a href="/images/2016/08/11/Graph_2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/11/Graph_2.jpg" alt="">
Source: Residex
Graph 2 shows rent has trended upwards. In the year to May 2016, rent increased by $20 per week. However, if wage growth does not prosper with rents, rental return may be held back by affordability problems.
A report by SGS Economics and Planning has found that some households in greater Hobart are spending an estimated 50-80% of their disposable income on rent. Anecdotal reports also argue that homelessness is steadily increasing in the region. However, the report uses 2011 Census income data, discounting wage growth over the last five years. As the value of Hobart units increase, rental yields are most likely to fall. The extent of the fall will depend on the rate of wage growth in the region. This is an important consideration depending on your investment strategy.
Finally, it is important to consider some of the more endogenous structural growth constraints in Tasmania. The seasonally adjusted unemployment rate in Tasmania was 6.5 percent in May, and the state also has the lowest rate of year 12 completion in 20-24 year olds (58 percent) due to irregular school structures.
Should Labour win government in the upcoming July 2 election, the opposition leader has pledged $150 million to the University of Tasmania and small business incentives to encourage a culture of further education, which could create long term job and growth prospects.
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Growth in Hobart unit market less consistent: Residex

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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