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<img src="https://counter.theconversation.edu.au/content/63317/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Supermarkets have moved quickly to capitalise on a growth of inner city dwellers with smaller houses but some retailers like Walmart, Tesco, Morrisons and even Woolworths are back peddling due to the risks.
With the rise of smaller one and two bedroom apartments with smaller kitchens and an abundance of restaurants, bistros and cafes that amass inner-city streets, consumers are accordingly purchasing groceries more frequently, up to three times per week and in smaller volumes.
Convenience store growth, online grocery sales and the aggressive expansion of discounters like Aldi, have progressively changed shopping behaviour, encouraging regular top-up shopping rather than weekly one-stop shops. As a result, the big four UK grocery retailers now run more convenience stores like Tesco Express, Tesco Metro, Sainsbury’s Local and M Local, than full-line supermarkets. Woolworths have also dipped their toe cautiously into the convenience market.
<h2>The challenge of convenience</h2>
While the convenience market proposes opportunities for large supermarkets, it also presents risks. The attractiveness of lower build, fit out and leasing costs associated with opening smaller store formats, is weighed against less space and accordingly, less range. Misreading the needs of the local market and getting that range wrong, will negatively impact on sales.
The costs associated with running convenience are significantly higher than large format supermarkets. Wage costs in convenience stores can hover above 13 percent, whereas a full-line supermarket can run on less 9% wages to sales. Waste, shrinkage and other operating expenses are inflated as a result of lower sales.
Competition is ferocious. While a supermarket may compete with another neighbouring supermarket, supermarket run convenience stores may find themselves in direct competition with local delicatessens, bakeries, butcheries, news agencies, all vying for the best locations and customers’ dollar.
<h2>Eating themselves alive</h2>
There are no switching costs in grocery retailing and shoppers today are not mortgaged to any food retailer. This lack of shopper loyalty has driven UK supermarkets to ultimately cannibalise their own sales by rushing to open smaller format stores.
By opening convenience stores on high streets, transit hubs and inner-city areas, the supermarkets have encouraged consumers to shop more frequently for groceries, rather than doing the one big weekly shop.
Today, shoppers now pop into the convenience store to purchase their evening meal on the way home from work, shop in a supermarket for non-perishable foods and then drop into a discounter like Aldi for a bargains. While a move into convenience and smaller store formats make sense, supermarkets should be aware of the risks ever present.
<h2>Abandoning the small store strategy</h2>
In response to an aggressive rollout of small format stores and the protracted price wars, Tesco announced it would review its fleet of stores. It closed 43, 18 of which were Tesco Express convenience stores and 12 smaller Tesco Metro urban stores. Similarly, UK grocery chain Morrisons also moved to closed around 10 convenience stores.
In the US, Walmart announced the closure [over 100 Walmart Express stores] [https://blog.walmart.com/business/20160115/doug-mcmillon-answers-questions-about-sharpened-focus-on-stores], citing a return to the big retail store format.
Here in Australia, four Woolworths metro stores are targeted for closure with the renewal of leases of a further five stores in jeopardy.
It appears Woolworths CEO Brad Banducci has taken a leaf out of the play bookof Morrisons' Chairman Andy Higginson’s , who said he now wants Morrisons to focus on its supermarkets. Banducci’s briefing to the market illustrated a returned focus on Woolworths’ core business of supermarkets and liquor.
The strategy involved slashing ranges of tiered private label products, closing under performing stores, [increasing productivity and cutting costs.] [https://www.smh.com.au/business/retail/woolworths-ceo-brad-banducci-unveils-growth-aspirations-20160606-gpctce.html]. It’s a smart strategy indeed that will lead to a leaner, meaner, agile Woolworths in the years ahead.
Gary Mortimer is associate professor, Queensland University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gary-mortimer-1322" target="_blank">here</a>.
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Big retailers are realising the risk of moving into convenience stores

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GUEST OBSERVER
Pop-up shops may have started as a way to derive temporary rent from opportunistic tenants. But today the concept is a permanent fixture in many retail management strategies.
Demand for pop-up spaces from retailers is strong, given the lower risk and minimal capital required compared with a standard lease. 
For new or incubator retailers, the appeal is obvious: minimising costs is important for any business starting out.
Established retailers are increasingly using pop-up stores to test new concepts and experiment with new approaches.
But what about the benefits to landlords?
Pop-ups have always been around as temporary income generators for vacant tenancies. The rationale was that income, albeit short term, and activation is better than a hoarding that screams unwanted space.
This strategy was predicated by the ultimate objective of securing a long term tenant.
However, given demand for these spaces, select centres can actually dedicate a high value space to a pop-up or revolving retail concept instead of looking for a permanent tenant.
It’s a valid strategy if all the pieces fit. When executed well, pop-ups can drive a sense of urgency in purchasing behaviour and inject life into the centre. 
Pop-up retailers that build brand buzz take care of the marketing leg work and can amplify the centre’s reach. Short term sales can be more productive and monthly rentals above market, even with some downtime.
Of course there are challenges, including high labour intensity to curate, downtime risk and the valuation impact of not having a permanent lease in place.
The key to success is in the execution. First, the tenancy must be appealing. A pop-up is no solution for a plagued tenancy.
It should use flexible, movable fixtures that can be stored, with clever signage solutions that can be changed cost effectively. A flexible lighting solution is essential.
Landlords could consider partnering with someone who can curate the space in line with guiding principles. Urban market operators often have ties to incubator retailers.
A branding concept could be considered for the space, with engaging marketing helping to fill the space during downtime, giving people a reason to use it.
It’s also important to see the commitment through. If a landlord commits to a pop-up or revolving retail concept for a tenancy, they must frequently swap the offer. If a particular retailer is performing well, convert them to a permanent deal elsewhere in the centre, as was the case with Doughnut Time at Central Park Mall in Sydney.
Doughnut Time launched to the Sydney market via a 15sqm pop up at Central Park and, having successfully tested the market and delivered very strong sales, has now been converted to a high value 400 sqm permanent tenancy.
The new Doughnut Time tenancy will also showcase Alfredo’s, another new brand to the Sydney market. Alfredo’s is a hip pizza concept out of Brisbane by Doughnut Time founder Damien Griffiths. 
The new tenancy, incorporating the two strong concepts, will be open by October 2016. It’s a prime example of the flow-on benefits of a well-executed pop-up retail strategy.
Pop-ups can add real value to a retail centre and provide for a better customer experience. If you can accept or mitigate the challenges, then the concept of a permanent revolving retail tenancy can be an exciting and profitable one. 
Felicity Armstrong is retail asset manager, Frasers Property Australia and can be contacted <a href="https://www.frasersproperty.com.au" target="_blank">here</a>.
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Pop-up and revolving retail: here to stay

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GUEST OBSERVER
The Deloitte Access Economics “Investment Monitor” provides a detailed snapshot of Australia’s investment project pipeline. The database contains details on 1,073 projects valued at $20mn or more, as at June 2016. Here we provide an update of the key results.
Note, the full value of a project is included in the investment pipeline until the project is either completed or deleted. This differs from official estimates of the existing “work pipeline”, which is the value of work yet to be done on a project currently under construction.
The Investment Monitor estimates the total project pipeline to be $822bn at present. That is a $42bn increase on March, reversing declines over the second half of 2015, to be $2bn higher than a year ago.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.24.38%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.24.38%20PM.png" alt="">
Significantly, the value of definite projects (those either under construction or committed) rose by $49bn to $431bn, to be $11bn above a year ago but $37bn below the peak of three years earlier.
Potential projects (either under consideration or possible) are valued at $391bn, some $10bn lower than a year ago.
As we have highlighted previously, the project flow is changing course on a stream of new public transport initiatives. That was the clear theme in the latest update.
In June, $39bn of the $49bn increase in total definite projects was explained by public transport initiatives. Following the round of annual state budgets, there are now 29 public transport projects at the committed stage, with a combined value of $44bn, up from 19 with a value of $5bn in March. The transport &amp; storage investment pipeline in total is $231bn, dominated by the public sector, $190bn.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.26.09%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.26.09%20PM.png" alt="">
The oil and gas sector accounted for the remaining $10bn increase in definite projects in June, most of which was a $7.6bn cost blow-out on the Inpex Ichthys gas field project to $45bn. Phase 2 of the Greater Western Flank project in the Pilbra WA, valued at $2bn, entered the database in June, at the committed stage, with a 2016 H2 start date.
The mining project pipeline, totalling $382bn, of which $202nd is at the definite stage, will thin considerably when the 5 remaining mega gas projects, with a combined value of $172bn, are completed over 2016 and 2017, with potential slippage into 2018.
The non-mining investment pipeline (excluding transport and ex the $44bn NBN), is $165bn, unchanged over the past two years. Of that, $80bn are definite projects, up $2.4bn on mid-2015. Notably, the investment pipeline of accommodation projects, with the low AUD boosting tourism, is valued at $23bn and while that is unchanged on a year ago there has been some transition to the definite stage, up $3bn over the year to be $5.6bn.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.27.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.27.11%20PM.png" alt="">
Mining projects
The mining sector project pipeline is valued at $382bn currently, a $22bn partial rebound on March but still $22bn lower than a year earlier and well below the $478bn peak at end 2012. (Note, mining-related projects can be included in other sectors, e.g. transport &amp; storage.)
The 5 mega gas projects under construction are together worth $172bn. By LNG projects: Gorgon, $61bn, which moved to the start-up phase in the first half of 2016, is to be fully completed by late 2016; Origin’s Australia Pacific LNG $25bn project, Qld, second production train is expected to start production in Q4 2016; Wheatstone, $29bn LNG project in the Pilbara WA, start- up has been delayed to mid-2017; Prelude, $12bn floating LNG platform, Kimberley WA, 2017 start-up potentially delayed to 2018; and Ichthys $45bn project, NT, second half of 2017.
As to oil and gas projects currently under construction, while the combined full project value is $179bn, the pipeline of work outstanding is $35bn, as estimated by the ABS (for March).
Excluding the 5 mega gas projects, the mining project pipeline is: $210bn in total, of which $30bn is definite, $94bn is under consideration and $86bn is possible. The commodity price slump over recent years raises doubts as to how many of these potential projects will proceed near-term.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.28.19%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.28.19%20PM.png" alt="">
Transport &amp; storage, public projects
Transport projects in the public sector was a key mover in the June quarter, following the recent round of annual state budgets. Notably, the state government’s have found the capacity to lift public investment, a much needed development.
Transport &amp; storage projects in total are valued at $231bn in June, dominated by the public sector, at $190bn. Looking back over recent years, the public transport investment pipeline initially rebounded in 2013; moved higher in 2014; marked time in 2015; and jumped in June 2016, up $24bn on three months ago. By stage, the public transport pipeline is: $51bn under construction (unchanged from 3 months ago); $44bn committed (+$39bn); $62bn under consideration (–$2bn); and $33bn possible (–$12.5bn).
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.29.57%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.29.57%20PM.png" alt="">
Relative to a year ago, the definite projects pipeline is up $44bn, with gains by state of: NSW, +$17bn to $51bn; Victoria, +$15bn to $21bn; Qld, +$7bn to $13bn; WA, +$2bn to $6bn; and SA, +$2.5bn to $2.7bn. Of note, advancing to the definite stage were: in NSW: Sydney Metro stage 2, $12bn; Pacific Highway upgrade Woolgoolga to Ballina, $4.4bn; in Victoria: CityLink upgrade, $1.3bn; Melbourne Metro, $11bn; Dandenong Rail Corridor, $1.6bn; in Qld: new generation rollingstock &amp; Wulkuraka maintenance centre, $4.4bn; Toowoomba second range crossing, $1.6bn; in WA: Forrestfield Airport Rail Link, $2bn; NorthLink WA, $1.1bn; and in SA: five road projects, with a combined value of $2.5bn.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.03%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.03%20PM.png" alt="">
Public transport projects under consideration are: in NSW, $23bn, including a second tunnel under Sydney harbour, $10.4bn + $4.5bn; Western Sydney light rail, $2.9bn; and Western Sydney airport, $2.5bn; in Victoria, $13bn, including $5.5bn North-Esat (missing) link; and $5.5bn, Western Distributor; in Qld, $9bn, incl’ Brisbane underground train/bus terminal, $5bn; in WA, $5bn, including Perth Freight Link, $1.9bn and Perth light rail, $1.9bn; and there is also the $10bn Melbourne to Brisbane inland rail link.
<a href="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%201.31.10%20PM.png" alt="">
 Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.westpac.com.au" target="_blank">here</a>. 
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Public transport initiatives lift Australia's investment project pipeline

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There was much interest when much of the main street of an outback rural Queensland town went to auction without a reserve price, grossing $156,000 on Saturday.
The deceased estate in the south-central Queensland town of Yelarbon saw about <a href="https://www.propertyobserver.com.au/https://www.truecountryrealty.com.au/61568090" target="_blank">three quarters of the town sold</a>.
The three auction offerings included shops on the town’s main street.
"Out of the five shops currently Australia Post is the only remaining tenant and are happy to stay on as long as the new owner would like," True Country Realty selling agent, Mr Jodi Bynon said.
He said there had never had so much attention on Yelarbon which is more than 300 kilometres south-west of Brisbane on the New South Wales border.
It has a population of around 450 woke up to crowds of up to 200 people who had flocked to the south-central Queensland town in hopes of scoring a bargain.
The three auctions attracted 60 registered bidders and sold to three different buyers.
The first auction of five shops sold for $60,000; the two freestanding shops sold for $26,000; and the house sold for $70,000.
“The number of people who came to the town was about half of the population here,” he said.
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Yelarbon township offering attracts strong auction attendance

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Northcote's house price record was on the brink of being broken on the weekend as agents endeavoured to negotiate the sale of the suburb’s grandest residence, Lugano.
The post auction negotiations took buying interest up to $3.95 million, but it is yet to sell, though easily surpassing the highest price achieved by a house in Northcote, which CoreLogic records show was $3.15 million, fetched by an 1881 mansion last October.
The <a href="https://www.realestate.com.au/property-house-vic-northcote-123009994" target="_blank">four-bedroom 1912 home</a>, Lugano was offered by Don Taig, who restored it after purchasing it in 1990.
Mr Taig has lived in Northcote his entire life, and had admired the house since he was a child: “I always thought the king and queen lived there,” he told the Herald Sun.
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Northcote's Lugano nears record sale

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Developer Pointcorp sold out 50 percent of its residential development, Fabric in Brisbane's Teneriffe.
The weekend result saw the issuing of 35 contacts for a combined $23 million in sales.
"We were confident there is still a strong market in Brisbane for large quality apartments in exceptional locations and the weekend results confirm this," said Pointcorp director Godfrey Esmonde.
He noted the area has gone from being a heavy industrial region once dominated by heritage wool stores, warehouses and naval buildings to now undergoing a significant gentrification process with a modernised yet eclectic mix of heritage residences, dining and extensive commercial offerings.
"As one of the upcoming suburbs of the region, there’s a lot of promising commercial and residential activity occurring in the area.
Fabric is the only brand new development in the area, but takes inspiration from the patchwork of neighbouring wool stores and warehouses surrounding the area as well as NYC’s sleek loft conversions. 
"In a landmark position on the curve where the beauty of Florence Street meets the convenience of Commercial Road just 2.5 km from Brisbane’s CBD, Fabric’s architecture will be woven into Teneriffe’s vibrant social, creative, eclectic and cultural hub," he said.
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Pointcorp secures off the plan sales at Fabric in Teneriffe

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Sydney’s weekend auction success rate surged back into the 80s, just as the Reserve Bank board meets this week to consider a rate cut that could further ignite the market.
Slim stock levels have seen the Sydney clearance rate hit clearance rate highs not seen since the boom early last year.
There were around 494 weekend auctions held in Sydney, up slightly from 473 last week, but significantly lower compared to the 825 of one year ago.
The preliminary CoreLogic result of 80 percent represented the strongest clearance rate for the city so far this year, and a steep increase from 71 percent last week and also higher than last year’s clearance rate of 76 percent when the mid-year market was coming off the boil. 
The overall strength in the Sydney market has seen week-on-week results over 70 percent since the last week in April.
The strength in Sydney’s result was driven on the weekend by North Sydney and Hornsby (95 percent), Ryde (94 percent) and the Northern Beaches (92 percent).
The Sydney result helped to push the combined national capitals results above 70 percent again, up from last week’s 68 percent to 74 percent.
There was an increased level of activity across the capital city auction market with 1,585 auctions held compared to 1,329 auctions last week.
But activity continues to track lower than the corresponding week last year when 1,903 auctions were held, CoreLogic advised. 
While winter is typically a quieter season for auctions prior to the ramp up in Spring, Kevin Brogan at CoreLogic calculated over the past nine weeks, the volume of auctions held across the combined capitals has been around 20 percent lower than last year, largely driven by less properties being taken to auction across the Sydney market, despite the ongoing strength in the clearance rate.
Melbourne’s clearance rate also jumped to 75 percent this weekend up from 71 percent. There were 749 auctions held in Melbourne, up from 572 last week, and representing a similar level when compared to the 787 one year ago. The best performing Melbourne sub-regions this week were Outer East (83 percent) and Inner South (80 percent). 
The top and cheapest sales around the nation were in Melbourne.
It was a Malvern period house with modern extension which sold through Marshall White at $4.98 million.
There were five $4 million-plus bidders for the five bedroom Edwardian house at <a href="https://www.realestate.com.au/property-house-vic-malvern-123060590" target="_blank">17 McKinley Avenue</a> (above) which was announced on the market at $4.4 million. The home's extension was designed by architect Geoff Challis with its landscaping by Rick Eckersley. 
Andrew Hayne of Marshall White, said a couple moving back to Australia from the US were the buyers.
The weekend's cheapest auction result was a two bedroom unit at Melbourne's Albion, near Sunshine (below).
<div class="tg-tlc-storybody_intro">
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%2010.10.41%20AM.png" alt="">
The <a href="https://www.domain.com.au/5-25-ridley-street-sunshine-vic-3020-2012877862" target="_blank">5/25 Ridley Street unit</a> fetched $190,000 when sold by Burnham Deer Park. It last sold at $10,500 in 1975. 
Sydney's top priced sale was $3.21 million at Blakehurst when the five bedroom at <a href="https://www.realestate.com.au/property-house-nsw-blakehurst-123064650" target="_blank">38 Walton Street</a> (below) was offered with redevelopment potential.
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%2010.12.08%20AM.png" alt="">
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A six bedroom house at Ascot in Brisbane fetched $3 million when <a href="https://www.realestate.com.au/property-house-qld-ascot-123002122" target="_blank">47 Palm Avenue</a> (below) sold. 
 
It was a 1993 Queenslander designed by architect Kevin Hayes.
<img src="/images/2016/08/01/Screen%20Shot%202016-08-01%20at%2010.13.08%20AM.png" alt="">
Brisbane held 152 auctions compared to 144 auctions last year and 139 last week. Preliminary results show 55 percent of auctions were sold, up from 51 percent last week and lower compared to last year, when 58 per cent of Brisbane auctions were successful.
There were 74 Gold Coast auctions this week with a preliminary clearance rate of 43.9 percent.
Adelaide was host to 106 auctions this week, with a preliminary clearance rate of 71 percent, representing a sharp rise in both the number of auctions held (68) and the clearance rate (56 percent) when compared to last week.
"Despite an overall fall in auction volumes across the capitals for winter so far this year, Adelaide’s auction activity has been reflective of the same conditions seen one year ago," Kevin Brogan said.
There were 33 Perth auctions held this week, 22 last week and 23 at the same time last year. This week’s preliminary clearance rate was 43 percent, up from 33 percent last week and higher than one year ago (40 percent).
The preliminary results show 75 percent of the auctions reported for Canberra this week sold, compared to 69 percent last week and 72 percent last year. There were 44 auctions held across the city this week, down from 52 last week and similar to the 41 held at the same time last year. 
 
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Sydney's weekend auction success rate back into the 80s

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The four-bedroom home, which sits in the shell of a former steel factory, sold at weekend auction for $2.84 million through Nelson Alexander.
It had come with $2 million plus price guidance.
Bidding opened at $1.9 million with another four parties keen to secure 42 Barkly Street which had been remodelled about 20 years ago by Neometro back in the ’90s
Retaining the ghosting brickwork facade, the ground floor accommodates the living and dining areas, the front courtyard and home office with street access.
Upstairs two of its bedrooms overlook the back courtyard.
The main bedroom has its own terrace, walk-through wardrobe and en suite.
The 1910 factory sits on a 125 square metre block which last traded for $1.63 million in 2010.
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Neometro's Fitzroy North warehouse conversion sells at $2.84 million

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The thoroughbred breeding and horseracing empire Godolphin has listed Twin Hills race horse stud farm near Cootamundra in the NSW Riverina.
It has been listed by William Inglis director, Jamie Inglis and property sales manager Sam Triggs.
Twin Hills is 380km from Sydney and around 9km from the regional centre of Cootamundra.
It offers 8 houses and cottages along with its five bedroom Twin Hills homestead, and a Howard Tanner-designed stallion barn
It acquired the 1011-hectare property as part of a $500 million deal to buy the Ingham poultry family's Woodlands racing empire in 2008. 
"The Twin Hills Stud Farm has played an important part in Godolphin's success over the years and so the decision to sell has not been taken lightly," said managing director of Godolphin in Australia, Henry Plumptre.
"However, as our operations are increasingly focused on the Hunter Valley, Sydney and Central Victoria, the location of Twin Hills makes it difficult to consolidate our operations around our other significant landholdings.
"Ultimately, this will have no impact on the horses as the time they previously spent at Twin Hills will now be spent at other properties."
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Twin Hills Stud listed by Godolphin

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<img src="https://counter.theconversation.edu.au/content/62785/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Productivity Commission’s latest draft report on the regulation of agriculture highlights the need to get the balance right, as to when the government should and shouldn’t intervene in this industry, and then how to intervene.
The report is part of a nine-month public inquiry into the regulatory burden on farm businesses. It covers a wide range of issues from land and water use to labour and foreign investment.
Agriculture is fairly unique in that market competition is pervasive. Competitive markets provide the incentives and rewards for businesses to find cost-effective production methods, develop new products valued by buyers, and to adopt technology. At the same time, agriculture has to compete against alternative uses of limited national natural resources, labour and capital, and the sector has to pay market rates for these inputs.
Markets work well only with well-defined property rights, ranging from weights and measures for the products produced, through to the rights and responsibilities of owners in the use of land, water, labour, transport infrastructure, and other key inputs. Here, the Productivity Commission’s report questions current regulations on some property rights. For example, they restrict decisions on the potential use of land for agriculture versus for the environment, urban use and mining, and they restrict the opportunities for non-resident investment in agriculture much more than investment in mining and manufacturing.
The commission proposes that regulations should balance the opportunity costs of alternative uses of land, or restrictions on the use of land. For example, the value of land regulated for use for agriculture should be compared with the value to society if instead the land was restricted to the provision of the environment, mining or urban growth.
It also proposes the government intervene to correct market failures. This could include for example the effects of the exercise of market power, external costs and lack of information necessary for buyers and sellers to make informed decisions.
Examples of external costs include run-off of chemicals to rivers and the ocean, irrigation in some areas increasing salinity downstream, and biosecurity. Often Australian food markets do not provide buyers with required information about the production systems used, for example organic or GMO, about food safety and nutrition.
As the Productivity Commission notes, regulation is not the only form of government intervention and often it is not the best way to correct a market failure. For example, the creation of government environmental water managers with water property rights similar to those used by irrigators for the Murray-Darling Basin seems to be a more effective way to restore a balance of water use between irrigation and the environment, than previous restrictions on water available for irrigation.
Sometimes government failure, either from lack of information or the dominance of political considerations, can result in regulations with larger social costs than those for the market failure. Essentially this is reflected in the report’s argument that some regulations are counter productive, such as the banning of GMO and regulation the sugar industry again.
Where regulation is a proposed solution to the market failure, a next step is to design the regulation. The objective is to balance the benefits and costs to society, and not just for agriculture, of the restrictions imposed on the products produced and the production methods used.
In many cases these social benefit cost assessments will be very challenging and with legitimate debates on key costs and benefits. Regulations on animal welfare illustrate. There are challenges in providing robust measures of animal welfare and even in obtaining estimates of the different values and attitudes people place on different levels of animal welfare.
Forthcoming information about the side effects of new chemicals and production methods, as well as the evolution of society preferences, likely will justify adapting and changing regulations over time as new information becomes available.
A particular area of excessive regulation cost affecting Australian agriculture identified by the Productivity Commission concerns over-lapping, and sometimes conflicting, regulations across the three levels of government.
Greater inter-government cooperation over the design and conduct of regulations is what the Productivity Commission draft report proposes and the government would do well to listen.
John Freebairn is professor, Department of Economics, University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/john-freebairn-90" target="_blank">here</a>.
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Government needs to get balance right in regulating agriculture

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

Joel Robinson

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

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]

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.

Jonathan Chancellor

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