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GUEST OBSERVER
A weaker set of economic results. A modest slide in the number of dwelling approvals, and a substantial rise in the trade deficit. The only positives to be taken out of the data related to the rise in the value of building approvals. Overall there is nothing in the data to stop the Reserve Bank from cutting interest rates if they deem it necessary.  
The housing sector continues to bubble along at a healthy pace. Home prices remain resilient despite changes in regulation and tighter lending standards that have been adopted by the banking sector. Importantly the pipeline of new building will continue to support broader-based economic growth over the coming 12-18 months.  
Over the past year 233,246 new homes were approved, easing further from the record high 240,842 in the year to October 2015. The anticipated lift in housing supply should ensure a more balanced environment – in essence house price growth is likely to be more contained over the medium term.  
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The housing sector isn’t the hotly contested issue it was a year ago, but still the Reserve Bank will keep a close eye on the sector, particularly in Sydney and Melbourne.
The trade accounts remain firmly in the red. Not only have the trade accounts been in deficit for over two consecutive years, but the 12-month rolling annual deficit came in at a sizeable $35.7 billion. However the trade data doesn’t have the impact on the currency that it once did.
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What do the figures show?
 Building Approvals:
Dwelling approvals fell by 2.9 per cent in June after falling by 5.4 per cent in May. In trend terms, approvals fell by 0.9 per cent in June.   Over the past year 233,246 new homes were approved, easing further from the record high 240,842 in the year to October 2015.   House approvals fell by 2.4 per cent in June after a 0.5 per cent rise in May (private sector fell by 2.3 per cent). Meanwhile ‘lumpy’ apartment approvals fell by 3.4 per cent in June after falling by 10.7 per cent in May. Private sector apartment approvals fell by 2.4 per cent in June. Dwelling approvals in June were down 5.9 per cent on a year ago with house approvals down 5.5 per cent while apartments are down by 6.3 per cent.  
Across states and territories in June: NSW (-4 per cent); Victoria (+4.1 per cent); Queensland (-2.1 per cent); South Australia (-12.3 per cent); Western Australia (+2.4 per cent); Tasmania (-23.6 per cent). In trend terms, approvals rose by 3.6 per cent in the Northern Territory and by 2.8 per cent in the ACT.  
The value of all commercial and residential building approvals rose by 5.3 per cent in June after falling by 10.7 per cent in May. Residential approvals fell by 1.5 per cent with new building down by 1.2 per cent while alterations &amp; additions fell by 3.8 per cent. Commercial building rose by 20.8 per cent in June to be up 18.8 per cent on a year ago.  
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International trade:
Australia’s trade deficit widened from $2.42 billion in May to $3.2 billion in June. It was the 27th consecutive  monthly deficit. The rolling 12-month deficit eased from $36.2 billion to a 7-month low of $35.7 billion.
In June, exports of goods and services fell by 0.8 per cent (goods down 1.1 per cent) while imports of goods and services rose by 2 per cent (goods up 2.6 per cent). Exports are down 0.9 per cent on a year ago, while imports are down by 2.3 per cent.  
Within imports, consumer imports rose by 7.4 per cent with capital goods imports up by 2.9 per cent while intermediate goods imports fell by 1.1 per cent.
Consumption goods imports are up 8.9 per cent on a year ago while capital goods imports are up 8.6 per cent and intermediate goods imports are down by 18 per cent. 
Australia's annual exports to China stood at $80.1 billion in the year to June. Annual exports were down 1 per cent on a year ago. Exports to China accounted for 32.9 per cent of Australia's total exports.  
Australia's annual imports from China eased from $61.4 billion to $61.3 billion in the year to June, up 7.6 per cent on a year ago. Imports from China accounted for 23.3 per cent of Australia's total imports.  
Australia's rolling annual trade surplus with China held near recent 5-year lows. The annual trade surplus was $18.7 billion in June – but well down from the record high of $51.2 billion set in April 2014.  
Australia annual exports to the US eased from $13.3 billion to $13.2 billion in the year to June and down from a record high of $13.69 billion in the year to October 2015. The share of annual exports going to the US eased from a 7-year high of 5.5 per cent to 5.4 per cent.  
Australia’s annual exports to India eased further from the two-year high of $10.34 billion set in the year to December 2015 to $9.52 billion in the year to June.  
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What is the importance of the economic data? 
The Bureau of Statistics' monthly Building Approvals release contains figures on local council approvals to build residential structures such as homes and units as well as commercial premises such as offices and shops. Approval is one of the first stages of the construction ‘pipeline’ and is thus a key leading indicator of future activity. An increase in approvals would point to stronger future activity for construction-related companies.  
The monthly International Trade in Goods and Services release from the Bureau of Statistics provides estimates on exports and imports of physical goods (such as coal, beef and computers) and services (such as travel receipts). The balance of goods and services (BOGS) is a narrower description of Australia’s external position than the current account estimates. The import data is a useful gauge of consumer and business spending while exports reflect global demand as well as domestic influences such as drought.  
What are the implications for interest rates and investors?  
While new council approvals to build new homes appear to have peaked, activity levels are still healthy. But now investors and builders need to do more research to ensure that the projects they are interested in remain viable with competing projects. There is certainly potential for indigestion in certain towns and regions as new projects are completed and the stock is absorbed.
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The Reserve Bank will closely monitor developments in China and financial markets more generally. Encouragingly the Reserve Bank has plenty of firepower to provide stimulus to the economy, especially given the low inflation environment.  
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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Weaker housing approvals, trade deficit blowout: CommSec's Savanth Sebastian

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GUEST OBSERVER
Subdivisions are the alluring sirens of the investment world.
There's a blunt logic to the concept that seems unshakable. Which is... If you've got a massive plot of land, dividing it up into two plots will instantly make you money, won't it?
Whether you’re a home owner looking to make extra capital from your oversized property or an investor subdivision certainly seems attractive. 
Especially, if you do it smartly and thoughtfully. With careful research, you can enjoy great capital growth with a booming yearly rental income. It's a wonderful, tantalising prospect.
Is this the best use of your time and resources? What is your skill set?
Yet, like most investment options, if not done carefully, it can also go horribly wrong. 
Here are some of the things you'll need to consider: 
Council regulations and permissions: All councils have very definite rules on subdivisions, so you need to find out your local environment plan and zoning rules. Many councils will have a minimum land size the property needs to be before they'll allow the development. You may also find that you’re limited as to what you can actually build. They will usually have a rule about car access and parking for both dwellings. There may be a certain amount of land that has to be left as open space (to prevent two houses sitting on top of each other).
There may be restrictions on the height of the dwellings or how close they are to the boundary. And expect that there will be rules about the impact of your proposed subdivision to the neighbours. All this means you need to do meticulous research. It's certainly a good idea to use a solicitor or legal expert to drill down through the fine print.
Building costs: Make sure you get a number of quotes from builders and architects, with the caveat that these costs can often balloon out. Ideally find a builder and architect through referral on a similar project so you know what to expect in terms of time and money. Architects can be expensive if you’re not designing it yourself. Another option is to use a draftsman, who’ll be cheaper, but maybe not ideal if the development is very complex.
The more organized and prepared you are about what you want, the less likely it is that the timeline and budget will go out of control. And think about who will project manage the subdivision? It’s expensive to hire someone but very time consuming to take it on yourself.
 
Consider the aesthetics: It's not enough to merely subdivide. You have to consider what the final dwellings will look like. If they're not appealing to a majority of renters then you've wasted your time. Common mistakes include: blocks with bad subdivisions where two houses are sitting on top each other. Or houses where there's little privacy and the occupants can see into the other's windows.
Or simply, unattractive houses that are cheap to manufacture but hardly anyone would want to live in. A badly designed subdivision will have the result of devaluing your entire property. This is where experienced designers and professionals come in. DPN's acclaimed CASA Allegra project home is a good example of well-designed home suitable for subdivision, that are economical yet aesthetically pleasing. 
Is subdivision economically practical?: In other words, consider whether the area is growing enough to sustain dual rental incomes off the one property. If you’re in a solid growth district which has good infrastructure, a strong local economy and an influx of people coming from outside the area, then there’s a clear path ahead. You also need to know what are the future plans for the area. For instance, if the area is about to be heavily developed with lots of apartment blocks and townhouses this will soak up a lot of the rental demand.
It could even lead to oversupply. Suddenly you’ll be competing with many other rental properties. This could then impact on your rental yields, even driving them downwards. So both present and future research into the plans for the area are critical. Remember, you don’t want your properties sitting vacant for long periods so there needs to be a strong pool of renters and high demand. Also do your sums and ensure that the rental yield from the subdivided property works out for your budget.
Finally, budget out the cost of subdivision in complete detail. It may not always be economically advantageous to subdivide if, for instance, the property isn’t all that big; there are lots of complications with the council or the land and the cost is on the high end. 
Hidden costs that you may not have thought of have will impact heavily on your budget: These can be things like contribution fees from local councils. Councils impose these on developers towards the cost of providing local services or facilities because of the effects of the planned developments. For example, if more water or sewerage is needed, because there’s an increase in the number of lots/ houses.
Or it can be deemed necessary if your new developments create extra water run-off, which in turn impacts the environment or flooding. In which case you, as the owner, may be up for having to pay for additional reports and research.
This council contribution fee is commonly known as a section 94 or a section 94A. This fee can be quite hefty depending on the council and the amount of extra infrastructure needed. Alternately there may be extra environmental issues that arise from your subdivision (for example, if they threaten an animal or plant species or impact the soil). And never rule out the possibility of a neighbor strongly objecting to the subdivision and issuing a legal challenge. 
Ask yourself – is this the best use of your time and resources? What is your skill set? Is this too arduous to take on yourself – remember that you’re managing a formidable and costly project. 
In which case, consider chatting to DPN about much less stressful and positively geared property investment options. We’ll arrange everything for you! 
Instead of subdividing, you may opt for a granny flat if your goal is simply to add rental yield to your existing property If this is the first time you’re dipping your toes into the water of subdivision and looks very complicated, you may be better off simply selling the property to a developer. 
If you’re determined to go ahead with subdivision, then ensure that you can afford it and you’re not sinking funds into a black hole. Also, make sure that what you’re putting on the property is really value for money. In other words: ask questions and make sure all your choices are backed up with research and what you can afford.
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
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When should you subdivide? DPN's Sam Khalil

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There was a recent survey that again ranked real estate agents as less trustworthy than politicians. 
Roy Morgan's annual professionals survey placed real estate agents third-lowest - at 10 percent - among the 30 professions rated, only beating advertisers at 9 percent and car salespeople at 4 percent.
Nurses ranked the highest at 92 percent. Ranking slightly higher in ethics and honesty than estate agents, were trade union leaders on 13 percent and Federal MPs getting 17 percent.
The survey results, which I guess are even starker when considering the electorate backlash at the polls last month, come at a time the the NSW government is conducting a review of training in the property industry.
Indeed Rod Stowe, the NSW Fair Trading commissioner, recently got a report that referred to the Roy Morgan results. The report on training in the New South Wales property services industry, which was chaired by Chris Batt, noted the level of trust in agents was much higher in rural NSW, mainly because of the establishment of longer-term relationships.  
According to his department, there were 6455 complaints about property matters in 2014-15. The mismanagement of trust funds becoming one of the significant issues. 
Better Regulation Minister Victor Dominello has noted NSW has among the lowest entry standards in the country.
There has been ongoing debate on the role of government as the prevailing wisdom is that it not the role of a licensing regime to increase real estate professionalism, although that may be a desirable outcome.
It is the role of a licensing regime to protect the public interest.
The recent report noted submissions invariably began by saying that training standards were too low. 
For some, the issue is about the need for more training before people start, but also about the need to improve the quality of training.
The report to Stowe by review chairman, Chris Batt noted a common complaint was about the difficulty in attracting the right people to enter the industry.
His review explored the attributes that make for good estate agents. 
"The key skill appears to be the ability to gain people’s trust and a capacity for hard work."
But Batt's report noted there is a public perception that "selling real estate is a glamorous industry where people drive expensive cars, wear nice clothes and make lots of money." 
The report suggested the reality was often far different and a better understanding would help to "encourage the right people to enter the industry."
Most stakeholders agreed training courses left an inadequate level of knowledge because they were too short. 
There were also concerns of trainers not having currency in industry experience. 
And as assessments were in a simulated environment they not did reflect the real life environment.
The review noted that supervision out in the workplace was either poor or absent.
It even raised concerns about the literacy and numeracy skills of the aspiring agents.
All this translates into detrimental impacts on consumers with poor selling and appraisal skills, which meant that a vendor did not always get the best price or service. 
One real estate trainer recently suggested the industry’s poor perception had remained low for the past dozen or so years years because many agents had learned bad habits from having the industry teach the industry.
Not enough looking at it from the customer’s point of view, he said, pinpointing scripts and dialogues to outsmart clients in sales, along with "the controversial things in the industry like cold canvassing or vendor contributions." 
This article was first published in the Saturday Daily Telegraph.
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Real estate agents less trustworthy than politicians: survey

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The Hughenden hotel in Woollahra has been sold having been listed in May with expectations of $20 million plus.
The buyer has not been disclosed, but the 1356-square-metre site was likely acquired by a developer. No sale price was offered on realcommercial.com.au for <a href="https://www.realcommercial.com.au/property-hotel+leisure-nsw-woollahra-501942758" target="_blank" style="font-size: 12.16px; line-height: 1.3em;">The Hugheden</a> which was built in 1870 as a grand Victorian residence for Dr Frederick Harrison Quaife, president of the British Medical Society who brought the first X-ray machine to the colony. 
It later served as a Masonic Hall, nurses home, dance hall and ladies college before falling into disrepair in the early 1990s.
The 32-room hotel was offered by the children's author Susanne Gervay who commissioned agents Lincoln Blackledge and Philip Gartland of Stonebridge Property Group to sell the Queen Street property.
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The Hughenden, Woollahra sold

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The month of June saw more than $6 million in residential sales in Brisbane's Ecco Ripley masterplanned community, a total of 19 transactions for house and land packages and land-only sales in the $500 million Sekisui House development in Ripley Valley.
Ecco Ripley state sales manager Scott Blaney said Ecco Ripley is already a thriving community with over 500 residents now living here or with their homes under construction. 
"Sekisui House expected sales to accelerate further with the first home buyer grant having risen to $20,000 on July 1," he said.
“It makes our already affordable, quality offering here at Ecco Ripley even more accessible and attractive for first-time buyers.
“The town centre will become the commercial and social hub of the region as all of the surrounding communities and developments will feed into it.
“It will offer a major regional shopping centre, a transit centre, health and education facilities, cafes, restaurants, parks and community facilities to cater for this region’s projected population of 120,000 people over the next 20 years.”
Buyers at Ecco Ripley presently can choose from duplex, Fit &amp; Finished homes, house and land packages and land-only options.
Land lots are currently available from $158,000 with house-and-land packages, including new duplexes available from  $325,000.
For more information <a href="https://www.eccoripley.com.au" target="_blank">click here</a> or contact 1800 RIPLEY (741 593) for more.
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$6 million in home sales on Ecco Ripley, the Brisbane valley project by Sekisui

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GUEST OBSERVER
Suburbs such as Fitzroy and East Melbourne have historically strong capital gains. 
Conventional wisdom is that by investing in neighbouring suburbs that have lower median prices, an investor would achieve stronger growth than in the blue chip suburb. 
This is because they would benefit from the spillover effect of buyers being unable to afford the blue chip locations and the subsequent gentrification of the suburb. 
We have analysed the growth of 5 bride and bridesmaid suburb pairs in inner Melbourne. 
A bride suburb is a relatively expensive suburb with good capital gains. It may be out of reach for a large proportion of property investors due to the high entry point. 
A bridesmaid suburb is a neighbouring suburb that boasts a lot of the qualities that make the bride such a good investment, yet with properties selling for much lower prices. 
To compare, the median sale prices and annual growth rates since 2011 for all suburbs shown in Figure 1 were gathered. 
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These suburbs were divided into suitable pairs, based on locality and differences in median prices. The results are shown in Table 1 below.
This data tells us that while entry points for bridesmaid suburbs may be considerably lower, bride suburbs still offer better returns. This is most likely a reflection of these areas being more desirable and having a lower turnover rate, resulting in reduced supply, than their cheaper neighbours. While the average property in Brunswick East can be bought for $150,000 less than comparable properties in Carlton North, median growth over the past five years has been half as good. The best alternative in the list is Kensington, where properties grew in price on average only 0.2 percent less than properties in North Melbourne, while being on the market for about $115,000 less.
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To conclude, it is often not the suburb that determines your returns, but rather selecting the right property for the right price. Great returns are possible in almost all of inner Melbourne, provided that the property selected meets the right value criteria.
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For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Melbourne's bride and bridesmaid suburbs: Secret Agent

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The regional mutual lender Newcastle Permanent has dropped home loan interest rates by up to 45 basis points ahead of the today's Reserve Bank monetary policy meeting.
Newcastle Permanent has reduced its two-year year fixed home loan rate by 5 basis points, its three-year fixed home loan rate by 10 basis points and its four-year fixed home loan rate by 45 basis points. 
All rates are now under 4 percent with the new two, three and four-year fixed rates advertised at 3.69 percent, 3.79 percent and 3.94 percent, respectively. 
All new rates are effective Monday 1 August, the Australian Broker website advised.
Peter Arnold, data insights director at RateCity.com.au, said fixed home loan rates continued to tumble, with more than 600 rate cuts in June and July.
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Newcastle Permanent drop rates to below 4 percent fixed

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<img src="https://counter.theconversation.edu.au/content/63097/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
There is a strong geographic element to the transitions in the Australian economy that our prime minister so frequently refers to.
Generally, the old economy, based on manufacturing, mining and agriculture, provided employment and opportunity in regional Australia, whereas the new jobs in knowledge-intensive industries are predominantly created in the centre of our largest cities.
The federal government’s recent Smart Cities Plan states: Australia’s growth as a knowledge-based economy, and the prosperity this offers, goes hand in hand with the growth of our cities and the regions surrounding them.
But how does this growth in city-centric industries translate to regional growth? Commuting may provide the answer.
That people travelling from regional areas to work in cities may distribute both financial and population growth was first proposed by Gunnar Myrdal in 1963. This applies particularly when this commuting is associated with the relocation of households from the cities.
More recently, the CLARA proposal bases regional development on high-speed city rail access and attracting commuters to new cities between Sydney and Melbourne.
In Victoria, the flight of city dwellers to picturesque regional cities and towns has received regular media coverage over the past decade. An example is the Northcote North phenomenon: 2006 Census data indicated most of the new residents of Castlemaine had relocated from Melbourne’s inner north.
Rise of the long-distance commuter
Census data also indicate that a significant number of these metropolitan escapees work in Melbourne. In Geelong, 2011 Census data show that more than 11,000 residents of the regional city travelled to work in Melbourne. That was nearly 13 percent of the city’s resident workforce.
This growth in commuting has occurred across Australia. Wollongong Lord Mayor Gordon Bradbery said it’s no longer a steel city but “a lifestyle city” when proposing that Sydney commuters may help offset continued job losses at the local steel plant. He said more than 20,000 of the city’s residents commute to the New South Wales capital each day.
For cities like Wollongong and Geelong, commuting may provide important economic benefits as their traditional industrial strengths decline and even close.
The increase in regional-urban commuting can be seen as not just the result of the increase in well-paid employment towards the centre of our larger cities. Rising housing costs have also played a part.
In a recent interview, a new resident of Torquay said that, for similar prices, it was a choice between the beachside town and a new housing development on the outskirts of Melbourne. Other reasons for regional relocation include friends and family, rural amenity and work arrangements for other household members, but metropolitan housing costs appear to be a significant factor.
What do regions get out of this?
Regional-urban commuters’ access to well-paid employment is an important factor in spreading economic benefits. For example, about 30% of Geelong residents who earned more than $2,000 per week in 2011 worked in Melbourne.
It is also important to note that, in 2011, more than 50 percent of the Victorian regional-urban commuters had changed their place of residence in the preceding five years: people are moving to commute and bringing higher incomes and families with them. There is evidence to suggest that this additional income may lead to higher regional employment in retail and service industries.
However, research indicates that many people do not continue long-distance commuting for more than a few years. This can be attributed to the links between long-distance commuting and poor physical and mental health, family problems and reduced community engagement.
Economists suggest that when deciding to commute long distances, people are not good at evaluating the non-pecuniary costs of commuting and the higher wages associated with commuting do not fully compensate for these costs.
Regional-urban commuters are more likely to work in the growing knowledge-based industries than their regional counterparts, in the census categories information, media and telecommunications; financial and insurance services; and professional, scientific and technical services.
When commuters tire of the travel, should they continue to live regionally and seek local work, this may be more significant for regional growth than the impact of the additional income. Some of these people may start new businesses closer to home, or provide a labour pool for other businesses in the area.
A survey is under way asking regional-urban commuters about their work and considerations of change. Preliminary results indicate that the main reason people start regional-urban commuting is that their work is not available where they live. Many would work locally if they could.
The tendency for commuters to find or create local employment as they tire of the time spent in transit is central to understanding how regions can grow through interactions with larger cities.
Todd Denham is PhD candidate, School of Global, Urban &amp; Social Studies, RMIT University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/todd-denham-282116" target="_blank">here</a>.
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Commuters help regions tap into city-driven growth

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GUEST OBSERVER
The Queensland Government has announced that it will introduce a 3 percent Additional Foreign Acquirer Duty (‘AFAD’) to be paid by foreign persons who purchase certain land in Queensland that is, or will be, solely or primarily used for residential purposes from 1 October 2016.
The move comes as part of the 2016-2017 Budget measures and will apply only if liability to pay transfer duty, landholder duty or corporate trustee duty arises in respect of a transaction on or after 1 October 2016.
The AFAD has been introduced by the Government “to ensure that foreign purchasers of residential land, who benefit from Government services and infrastructure, make a contribution to their delivery” as they are “not necessarily subject to some of the other major sources of State Government revenue”.
The Duties and Other Legislation Amendment Bill 2016 (Qld) (‘the Bill’) was introduced to Parliament to amend the Duties Act 2001 (Qld). The Bill was passed on 17 June 2016 and will now be presented for royal assent after which it will become law.
In other Budget measures, it has been announced the existing family farm transfer duty concession for the familial transfer of farm businesses will be extended from 1 July 2016 to remove the requirement that the transaction be by way of gift (meaning the concession will now also be available where consideration is paid for the transfer).
The Government has also made a commitment to temporarily increase the First Home Owners’ Grant from $15,000 to $20,000 to assist first home buyers to enter the housing market. The grant will be available for contracts signed between 1 July 2016 and 30 June 2017 for new houses, units or townhouses valued at less than $750,000.
Clive Nichol is partner at Barry. Nilsson. Lawyers and can be <a href="https://www.bnlaw.com.au" target="_blank">contacted here.</a>
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Property 101:  The Queensland AFAD property tax

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The announcement by the NSW Government that the Sirius Building in the Rocks will not receive heritage listing opens the way for a sympathetic yet modern replacement.
The Minister for Heritage, Mark Speakman, has not supported the nomination of the Sirius Building in the Rocks as a state heritage item.
The Urban Taskforce agrees with the Minister that the building is of dubious heritage value and that a new building could yield significant funds for social housing.
We are however concerned by statements by the Minister for Finance, Services and Property, Dominic Perrottet that a replacement building should be made of brick and stone. The current Sirius Building was very innovatory in its day and while it is in the brutalist architectural style that many people are not comfortable with, it did attempt to be of its time rather than a pastiche of the past. 
It is important that a replacement building is about the spirit of today while understanding its context.
A good example of the blending of new and old is demonstrated by the new building over the ‘Money Box’ building in Martin Place. The modern interpretation of the proportions and scale of the existing façade have been carried into a modern glass office building set back from the old façade. The 5 Martin Place project last week won the Urban Taskforce Urban Renewal Development Award at the Development Excellence Awards 2016.” 
While The Rocks is a very special precinct it is important that new architecture and structures represent the aspirations of today while respecting the sensitive context. 
The site of the Sirius Building is adjacent to the Sydney Harbour Bridge approach and this heritage structure must also be respected.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>. 
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Sirius Building replacement must represent today not copy the past

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368856]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

Joel Robinson

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

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.

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]

Jonathan Chancellor

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