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GUEST OBSERVER
Britain’s vote to leave the EU on 23rd June 2016 and the subsequent political and constitutional turmoil that followed in its wake, introduced a very large dose of uncertainty into investment markets not only in the UK and the EU, but globally and so changed both the sum total and distribution of risk dramatically. 
While some markets have realised that this perception of risk was overdone in certain sectors, and have recovered markedly, others remain subdued or have rallied only moderately. Some markets such as gold, the Yen and US dollar have strengthened signi cantly while Sterling, Euros and UK stocks, particularly REITs and construction, are still down (see Figure 1). 
Unlike these assets, there is no real- time trading data in directly owned real estate so it will not be possible to precisely assess the impact of Brexit in either pricing or turnover terms for at least a few months but it is possible to look at the characteristics of property against other assets to begin to understand its potential positioning.
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To do this, we consider in this note not only the key qualities of real estate in relation to other asset classes but also the relative position of different geographies. The following sections look at real estate in relation to: 
1. Interest rates 2. Exchange rates 3. Geopolitical and cyclical risk 
The key themes that emerge are: 
Globally, real estate will increasingly be sought after as an income-producing investment, with decreasing emphasis on capital growth, particularly where bond yields are low or have even turned negative. 
The role of property in providing a safe store of wealth in ‘safe haven’, secure title, jurisdictions will come to the fore although this will be tempered by currency risk in places where currency may move down further against the investor currency. 
A focus on real estate occupier fundamentals, and their impact on rental returns and prospects for rental growth, is inevitable and may present investment opportunities over coming months. 
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Buying opportunities will be most apparent for those with large war-chests and in dollar- denominated or Yen currencies who were already waiting for cyclical buying opportunities in some fully valued markets. This activity will be tempered by fear of economic downturns but, again, the longer- term nature of real estate investment will come to the fore.
Leveraged investors will be less prominent and opportunistic and unconventional investors with cash will be the most active globally. This may mean a larger proportion of private investors once again active in the market.
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Interest rates and yields 
In the face of rising global risk (and in the expectation of Bank of England base rate cuts), there appears to have been a ight to safety in the form of government bonds. At the end of June, the UK joined Japan and Germany in experiencing short-term negative bond rates (see Figure 2). 
Expectations before the referendum were that UK and US base rates would start to move out in the near future. Fears in some fully valued markets were that rental growth would not keep pace. With expectations once again that base rates will stay lower for longer, or even drop, property yields have longer to move out and are more likely to do so through rental growth rather than capital contraction. 
When the opportunity cost of money turns negative, any income- producing asset must start to have particular attractions. This potentially puts real estate into a new and different class for as long as the majority of tenants continue to pay rent. Under these circumstances, we expect fully let properties of all use types and classes with low void rates in deep markets to remain an essential part of any well-balanced investment portfolio. 
However, we expect this also means that the fundamentals and the future prospects of both the market and the property will be carefully scrutinised by investors before purchase.
<a href="/images/2016/07/29/Screen%20Shot%202016-07-29%20at%208.53.52%20AM.png" target="_blank">Click to enlarge</a>
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When the world is searching for income, investors are likely to be looking for both quality AND value. 
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Exchange rates 
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UK and European property has become signi cantly cheaper for US dollar and related currencies and especially for holders of Japanese Yen. 
We do not think these currency changes will give every dollar buyer a desire to buy UK and European real estate but it does mean that investment buyers will become increasingly focused on the fundamentals of yield levels and rental growth prospects. Real estate will look good value where these are present, particularly as expectations of more global volatility rise. The world is faced with further UK, US and European political change and elections, to cite just one element of risk, for example.
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The credit rating of the UK was instantly downgraded on the 24th June when the referendum results were known and sterling plummeted against most other currencies, even the euro which also suffered devaluation against the US dollar.
Currency volatility has added to the risks of placing investments in Euros or sterling for the moment but also offers opportunities for those holding US dollars, other dollar- pegged currencies and Yen to buy assets more cheaply. Figure 3 shows how currencies have moved since the eve of the referendum. 
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UK and European property has become significantly cheaper for US dollar and related currencies and especially for holders of Japanese Yen. We do not think these currency changes will give every dollar buyer a desire to buy UK and European real estate but it does mean that investment buyers will become increasingly focused on the fundamentals of yield levels and rental growth prospects. Real estate will look good value where these are present, particularly as expectations of more global volatility rise. The world is faced with further UK, US and European political change and elections, to cite just one element of risk, for example. 
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Geopolitical and cyclical risk
Long before the Brexit vote, some degree of geopolitical risk related to the Eurozone seems to have already been priced into European real estate markets. Prime of ce investors at the end of last year, for example, were buying London on the same level of net effective yield, adjusted for bond rates, as other major world cities like New York and Hong Kong while Eurozone cities such as Paris, Frankfurt and Brussels had not seen the same degree of yield compression and some were being priced on the same risk-adjusted net effective yields as Chengdu and Manila (see Figure 4). 
Yields have since moved in signi cantly in many European cities but some global investors' appetite for Euro denominated assets in a region of political uncertainty may have been somewhat impaired compared to other world regions. Global markets appear to think that the EU is not out of the woods yet. 
Conclusion 
In the very early days of global post Brexit reaction, and indeed in the days preceding it, stock market volatility has increased dramatically. Meanwhile, yields on lower-risk government bonds – even UK ones, have moved in, not out since the referendum. The search for safety is still on and the prospects for negative interest rates seems to have increased. 
There is still appetite from global investors to put their money somewhere. It is becoming increasingly difficult to nd asset classes and sectors which offer stable incomes and stability or safe haven status. The price of gold, for example, rose by 6.4%, from US$1,253/ounce to US$1,333 over the four days to June 27th. Some other real assets, particularly real estate, may look only slightly less attractive to certain investors, particularly those seeking income as well as diversi cation.
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There is a point, especially in countries with negative interest rates, like Japan, when the yield available from real estate in countries with secure tenure and socially safe environments and transparent markets looks compelling, despite increased risk and volatility. This is especially the case for cash investors seeking mid and long-term income streams. Recent currency strength, especially if it is expected to be temporary, makes the purchase of sound Sterling or Euro denominated rental income look cheap.
While expectations of economic growth may be receding in certain quarters, some cities and some countries are likely to do better than others and it is the most stable, high yielding sectors in safe jurisdictions that investors will increasingly be looking for. 
Performance will be found, as always, in real estate locations where there is steady demand from growing populations, security of title, market transparency, limited supply plus long-term economic and growth prospects. Investors are likely to be looking for all these quality factors but looking for value too in the form of higher yields. Returns will be further enhanced in places where the currency strengthens over time so that income returns to foreign currency investors are improved. 
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Yolanda Barnes is director, World Research at Savills and can be contacted <a href="https://www.savills.com" target="_blank">here</a>.
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The Brexit impact on global real estate: Yolande Barnes

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 GUEST OBSERVER
Architect-designed townhouses are essential to support sustainable population growth in our rapidly expanding capital cities.
Large-scale, master-planned townhouse developments in urban infill sites provide an option for increased density that offers an attractive solution to rising land value while creating a greater number of affordable dwellings in central or well-serviced locations.
ABS data reports two out of three Australians live in a major city, with population growth exceeding predictions. Rather than catering to this growth via urban sprawl, where outer-city suburbs and residents are often underserviced due to the enormous public cost of civic infrastructure, townhouses allow for greater diversity of residents in established communities while adding to the available housing stock. Townhouses are the missing piece of high quality inner-city - living – an architecturally designed product for those who prefer not to live in an apartment, not specifically due to spatial concerns, but lack the budget for stand-alone housing in desirable, well serviced and well located areas. Concern regarding population growth and sustainability present additional reasons for choosing this higher density housing model.
The trend we’re seeing in our own practice is driven by a market gap for dwellings that are more sustainable and affordable than larger detached houses. At ROTHELOWMAN we have witnessed significant growth in the volume of townhouse projects we are designing. From January 2015 to March 2016 we designed 2,384 townhouses, a marked increase from the previous year. With this trend comes a greater appreciation for the typology’s versatility, necessity and market acceptance.
For consumers, large-scale master-planned townhouse developments are not only a financially viable housing alternative, they also provide access to transport corridors and inner-city amenities. Data published by Urbis indicates young professionals, in particular, value proximity to education, entertainment and employment over owning large properties. While perfect for young workers, townhouses also provide the flexibility to cater for varying demographics, from families to downsizing retirees.
In Brisbane, ROTHELOWMAN has designed the staged master-planned development Summerlin to transform negative perspectives around townhouses based on the poorly designed, mass-produced boxes of decades past. Summerlin’s master plan develops an existing industrial site in the suburb of Banyo (within 15km of the CBD), transforming it into a residential community through the creation of new internal streets, laneways, vegetated pedestrian links and communal open space parklands. The architecturally designed townhouses of Summerlin employ a ‘critical regionalism’ that pays homage to the surrounding vernacular of simple, hand-built homes with generous setbacks. Reflecting this, materials chosen for Summerlin include painted weatherboard, rendered masonry and raw brick as an interpretation of the local vernacular. Banyo is surrounded by some of the most biodiverse parts of Brisbane and Summerlin’s design complements this with a 5000m2 park featuring recreation spaces, dense planting, stormwater treatment and pedestrian links.
In the middle-ring Melbourne suburb of Doncaster, where median house prices have reached over $1.2 million (realestate.com.au), the ROTHELOWMAN-designed townhouse development Williamsons Road is a perfect example of how we can offer a growing population high-quality, medium-density residences. Comprising two, three and four bedroom townhouses – a total of 106 dwellings – the mixed housing typologies have enabled new residents to move into the tightly held area, accessing its quality amenity and infrastructure without detracting from the character of the suburb.
In protecting character, amenity and location remain important. Where large detached housing has become less of a priority for city dwellers, we are seeing a return to a pattern that was established in the early history of Australia’s urban centres and capital cities. Terraced housing was introduced to Australia in the 19th century, based on architectural typologies that had been developed in areas of Europe to meet the already burgeoning challenges of density and urban sprawl. Establishing townhouses as a solution to demand isn’t a novel answer then but one that has been tested over centuries.
For developers, master-planned townhouse developments can create a density that meets the demands of rising land value yet balances it with a desire for quality sustainable, active, green and thriving communities that are attractive and highly liveable for residents. Lotus Terraces, ROTHELOWMAN’s latest townhouse project in Woollooware (24km south of Sydney’s CBD), creates a village-like atmosphere through the design of a community centred around a green common to be shared by all.
The key to explaining this critical typology within developing future cities is skilfully balancing urban amenity and proximity to cultural infrastructure with space and affordability. It is getting these balances right that makes creating a new generation of top quality master-planned townhouse developments absolutely critical for the cities of tomorrow. 
Jeff Brown is Principal, Rothe Lowman Brisbane and can be contacted <a href="https://www.rothelowman.com.au" target="_blank">here</a>.
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Reinventing the townhouse for Australia's shifting cities: Jeff Brown

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ASIC has banned Ron Cross, of Figtree, New South Wales, from providing financial services for a period of four years.
Mr Cross is the CEO and a director of Park Trent Properties Group Pty Ltd (Park Trent).
On 27 November 2015, further to proceedings issued by ASIC, the Supreme Court of New South Wales found that Park Trent had unlawfully carried on an unlicensed financial services business for over five years by advising clients to purchase investment properties through a self-managed super fund (SMSF).
The Court also permanently restrained Park Trent from providing unlicensed financial product advice to clients regarding SMSFs.
ASIC found that, as the key decision maker of Park Trent, Mr Cross:
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<li>was knowingly involved in Park Trent's contraventions, making all of its major strategic and business decisions and intended to influence clients to purchase properties through SMSFs; and</li>
<li>that Mr Cross was willing to ignore legal advice and warnings about Park Trent's practices, demonstrating that he is likely to contravene financial services laws.   </li>
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ASIC Deputy Chairman Peter Kell said, 'ASIC's action against Mr Cross shows that we will not hesitate to exclude property spruikers who provide unlicensed financial services from the industry.'
Mr Cross has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
ASIC launched legal proceedings in November 2014 against Park Trent who, by the time of the trial in June 2015, had advised over 860 members of the public to establish and switch funds into an SMSF.
On 15 October 2015, the Supreme Court of NSW found Park Trent had been unlawfully carrying on a financial services business for over five years by providing advice to clients to purchase investment properties through a SMSF (refer: 15-300MR).
On 27 November 2015, the Supreme Court of NSW handed down final orders further to the judgment delivered against Park Trent on 15 October 2015.
Park Trent has appealed the decision to the NSW Court of Appeal and the appeal is set down for a final hearing on 31 August 2016.
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Park Trent's Ron Cross banned by ASIC after SMSF advice investigation

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The government is still consulting on superannuation after concerns raised by backbenchers over changes made in the budget. However these changes are more important than ever, as evidenced by the 2016 HILDA statistics on wealth and superannuation.
The statistics highlighted changes in the distribution of wealth of Australians since the survey commenced in 2001. The most significant assets held by most Australians continue to be their family residence and superannuation, but policy changes over the time of decade the survey have changed the balance of those investments.
More concerning is the finding that wealth inequality has increased. The data adds strength to the argument that superannuation reforms are overdue, with a small number of wealthy people able to accumulate wealth in superannuation and investment property.
In Chapter 5 of the report, which discusses household wealth, the authors note that superannuation will soon overtake the family home as the major asset owned by Australians. This is the result of two separate trends: increases in superannuation balances and lower net wealth in housing.
Looking at the HILDA data, it’s not unexpected to see that younger age cohorts have experienced the strongest growth in superannuation assets.
Prior to 1993 superannuation was very different to the current system. According to Treasury data in 1986 53.5 percent of Australian full time employees did not have superannuation coverage, and over 80% of those who did, were members of a defined benefit scheme, which would not generally be reported as an asset. By 2000, 96.9% of full time employees had superannuation coverage, with 86% of those employees in accumulation type funds.
The superannuation guarantee has been a significant contributing factor in the importance of superannuation as a household asset. Notably, the phasing in of the rate of the superannuation guarantee shows in account balances. As can be seen from the HILDA report the increased rate of superannuation guarantee after 2002 has resulted in higher superannuation balances for people at the same age in successive surveys.
The increase in housing values is the second trend which has altered the mix of assets. Over this time residential house prices rose significantly, with ABS data showing an increase in the Residential Property Price Index across eight capital cities from 69.0 in September 2003 to 120.2 in Dec 2014.
Given that in the 2002 data the major asset of Australians was the family home, homeowners benefited disproportionately from the increased value of housing. Even with the significant increases in superannuation, for older Australians the proportion of wealth held in housing has been maintained as their total wealth has increased.
However for younger age groups the story is not as positive. The rate of home ownership is declining as it is becoming more difficult to enter the housing market and home equity is declining among younger age groups as the value of loans has increased.
The HILDA data shows that most age cohorts, including all except the oldest retirees, have seen increases in their superannuation accounts over time. Policy changes effective from 2007 have supported superannuants through tax exemptions and high contribution levels.
Another trend contibuting to this is that people are retiring later. The change in the pension age to 67 has been accompanied by a trend for people to work longer. Not only are they deferring withdrawals from their superannuation fund, but they are also continuing to contribute during this time.
As noted in the Productivity Commission report last year there is some evidence of withdrawals at the time of retirement, but these are generally used to pay outstanding debts, including mortgages against the family home.
Others convert their superannuation at retirement into other financial investments. This cements the family home as the most significant asset held by retirees.
The more concerning finding for policy makers is that wealth inequality has increased, and that superannuation holdings and investment properties are factors in this inequality. HILDA data shows that in 2014 the mean superannuation balance of the top 10% of people aged 50 to 69 was $991,268, up from $650,619 in 2002, compared to $210,798 in 2014 for the sixth to ninth decile and $13,719 for the bottom 50% (although a significant number of retirees in this age group do not have any superannuation balance).
There is a strong correlation between high superannuation balances, income and non-superannuation wealth. People in the top decile have access to higher levels of income to make higher levels of concessional contributions, and the ability to find the funds to make non-concessional contributions into a tax preferred investment environment.
As has been noted previously, the current superannuation system allows high income and high wealth individuals to over-accumulate in tax preferred superannuation, which increases wealth inequality as well as intergenerational inequality.
The Government proposals to restrict the level of contributions and to reduce the amount that can be retained in a tax free environment are important tools to address increasing levels of wealth inequality in our community.
Helen Hodgson is associate professor, Curtin Law School and Curtin Business School, Curtin University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/helen-hodgson-94553" target="_blank">here</a>.
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Wealth inequality shows superannuation changes are overdue

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The Melbourne hip suburban fringe property developer Tim Gurner has submitted plans for his $350 million development in North Fitzroy.
It will feature terraced apartments with their own terrace gardens.
His architect, Koichi Takada proposes a cascading 16-storey development of about 550 apartments, covered in greenery inspired by the rice paddies of south-east Asia.  
Apartment prices will start at $450,000 for a 47-square-metre, one-bedroom apartment rising to $4 million for a 135-square-metre four-bedder.
Tim Gurner's proposed development will retain the existing industrial heritage facade, with a piazza offering community space and shops and restaurants.
The $40 million site was bought in February on <a href="https://www.propertyobserver.com.au/https://vhd.heritage.vic.gov.au/places/result_detail/104097?print=true" target="_blank">Queens Parade</a>. The site was the K.G. Luke Pty Ltd electro plate manufacturing factory created in 1938 for Kenneth G. Luke. 
In 1921 Kenneth Luke became a partner in a small metal-spinning and silverware business at Carlton.
By 1925 he was its proprietor and an employer of seven. These employees were still with him thirty years later, with 650 others, making an ever-increasing range of products: silverware, stainless steel surgical equipment, plated goods and glass-washing machines.
Luke went on to achieve many major public roles.
In 1938-55 he was president of the Carlton Football Club. A delegate (from 1935) to the Victorian Football League, he was its vice president (1946-55) and president (1956-71). 
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Tim Gurner proposes paddy fields-inspired North Fitzroy project

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GUEST OBSERVER
In the past two weeks I’ve met two people who introduced themselves as global nomads.
By “nomads” they mean someone who moves from place to place with no fixed address, other than their email address. They consult wherever they go, and are enabled through technology to live and work from anywhere.
This new thinking about what and where work is performed is starting to influence thinking on where we live, offering an entirely new take on work-life balance.
Earlier generations had a job for life and lived close to the factory or office; work and life supported each other symbiotically. Today, while many people still co-locate near their primary employer, for others the “office” is anywhere with a reliable internet connection.
Working differently allows us to live differently. This thinking is what’s behind the “co-living” trend. Combined work and residential space is aimed at the flexible worker, the itinerant entrepreneur, the tech-fuelled millennial.
<h2>How it works</h2>
The idea is simple enough. A network of residential offerings provides semi-independent living across multiple locations; be it in one country or across many. Members pay a subscription and register in advance to secure a place, usually for at least a month at a time. In the early days, many operators are also allowing more short-term access of a few days at a time.
BASE, operating in Melbourne, Australia, aims to bring together young creatives in a co-living experiment. It incorporates a co-working space and regular events.
There are plenty of other co-living examples across the US in particular. Many appear to be driven by millennials eager to find new ways of bringing their work and life together. There is a theme of purpose-driven living that most if not all share.
While the majority of these offerings are centred on bringing together smaller communities, the emerging larger operators in this space include roam.co (previously Caravanserai). It has offerings in the US, Spain and Bali, with the UK and Argentina imminent. Nomadhouse.io boasts 18 locations across Europe, Morocco, Southeast Asia, the US and Colombia.
<h2>A new way of living</h2>
Recently, the world’s largest co-working space operator, WeWork (last year valued at US$10 billion), launched a new co-living spinoff, WeLive. It has two spaces in New York and Washington DC co-located above existing WeWork sites.
WeLive operates on a monthly subscription basis. It provides everything that you would expect from an Airbnb, with a dose of community that co-working members come to expect from WeWork, including its famous “unlimited beer and coffee”.
WeWork is betting big that its co-living model will be a hit. Leaked financials late last year reveal WeWork was expecting demand for WeLive to coincide with increasing co-working membership demand. In fact, WeWork expects income from WeLive memberships to increase to more than US$600 million in 2018, representing 21% of the company’s total revenue.
WeWork is opening its doors in two locations in Sydney shortly, but we don’t yet know if it has plans for WeLive in Australia. In an increasingly saturated local co-working market, the first challenge will be for it to gain traction in co-working.
<h2>Working alone together</h2>
Australia has seen rapid growth in co-working spaces, with more than 160 now operating. These cater to growing numbers of entrepreneurs, small business owners and, increasingly, corporate commuters looking for a change from the standard office environment.
Increasingly, too, these spaces are being recognised for their innovative potential by corporations interested in and working with emerging startups, such as Fin-tech hub Stone &amp; Chalk in Sydney, or in building deeper relationships with customers, like The Village by NAB in Melbourne.
<h2>Seeking a tribe? Enquire within</h2>
Living in share communities is nothing new. We’ve been co-living in various forms for a long time.
Many of the communes of the 1960s and 70s are still with us, albeit segregated from mainstream society. Kibbutzim have formed an important part of modern Jewish history. Share houses, dorms and fraternities have been rites of passage for many through university and early professional life. And the final co-living destination for many is the retirement village.
Are recent co-living “experiments” only for millennials who want to live an Airbnb lifestyle, or is this the start of a bigger shift in the way we live and work, and the continued blurring of any remaining line between them?
If recent research on the impact of co-working spaces is anything to go by, being part of a co-living community appears to have clear benefits. One recent global co-working survey found 70 percent of co-workers felt they had become physically healthier as a result of their membership; 70 percent strongly felt a sense of belonging and 74 percent experienced greater productivity in their work life.
It is this last statistic that may reveal the dark side of co-living projects such as WeLive, warning that the line between life and work may be all but gone for younger generations who pursue “efficiency in life” at all costs.
In a world where life and work continue to dance around each other, our need for purpose and belonging remains. Co-living ventures like WeLive may inspire us to rethink our relationship with work, and refocus on becoming a part of our local community. Or, perhaps, the gloss of the startup and entrepreneur life will start to fade, and we’ll realise there really is no place like home.
Tim Mahlberg is PhD Candidate, University of Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/tim-mahlberg-272846" target="_blank">here</a>.
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Co-living is demolishing the line between work and life

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Looking back on the changes in office design over the past 30 years, it is easy to see why some employees feel as if they have been subjects in a giant ongoing experiment.
For decades the office has moved from private, to open plan and more recently, no desk at all. These changes have been driven almost simultaneously by the push to reduce real estate cost and to also increase collaboration among employees.
While savings in real estate costs appear to have been achieved, the negative effects of the open plan office on employees have now been well documented. A large body of research shows these offices are noiser; employees have difficulties concentrating and are unable to hold private conversations.
The promise of increased collaboration in open plan appears to have very little evidence to support the idea. A study of more than 42,000 employees found that open plan office environments did little to increase interaction.
Given all this evidence, it is perhaps unsurprising that a recent study by Oxford Economics found the impact of open-plan office design is far greater than executives realise. The report found both productivity and employee peace of mind suffers in the open workplace. Although there appears to be a growing realisation of the negative effects, the results showed few companies have effective strategies in place to address the problems.
Another key issue in the open plan office is that it doesn’t cater to either differences in individuals or differences in the type of work that needs to be undertaken. The time workers are spending on collaborative tasks is decreasing, while time on quiet concentrated work is increasing.
In response to these issues, organisations have been experimenting with ways to segment workplaces to overcome these problems. Articles on new office design are peppered with concepts such as “caves”, “campfires”, “town squares” and “city zones”.
The segmented office is based around the idea that different spaces are needed to support different tasks and different personalities. Sleep pods, library spaces, mobile-free zones and cafes are becoming standard features in new office designs.
Employees are encouraged to move between the different areas based on what they are doing at the time. Tasks such as taking a phone call, holding a meeting, doing work that requires focus and quiet or work that needs collaboration with others are all allocated separate areas.
While seen as a positive move by <a href="">some employees</a>, the changes often don’t go far enough to allow concentrated, productive work. What if your co-workers are just noisy people in general?
Julian Treasure, sound consultant and author of the book Sound Business, suggests employees are one-third as productive in open office designs as in quiet rooms. In research I am currently conducting, many employees report that having to find a space to work each morning is tiring, while others resent having to move around to do different tasks.
The practicality of moving to different spaces, carrying laptops, power cords and other documents and materials needed to complete work can be tiresome at best and impractical at worst. The inability to find co-workers when needed appears to be another common complaint in early results of the study I am undertaking, with some employees opting out of IT-based location identification systems in order to not be interrupted.
Other key issues emerging in my research on this topic are that often the number of phone booths and meeting rooms are limited, resulting in wasted time and frustration trying to find somewhere to meet or take a call. When the need for confidential conversations arise, such issues often need to be dealt with immediately. Employees report to me that finding private places to converse in such situations is challenging, and being told to “book a room” or “go to a coffee shop” is not uncommon.
The overall office size in Australia is relatively small. As a result, offices being designed to embrace the segmented idea can end up having a gym with a rowing machine as well as the cafe space within metres of the open plan desk area.
It seems we still have a way to go. Recent research in the Harvard Business Review indicates the push for collaboration is too much of a good thing and staff are increasingly demanding quiet spaces to work where they can focus and concentrate.
With many working from home or other third places to get work done, does the office still matter?
Some authors suggest the office will die out all together. Nikil Saval, in his book Cubed, goes so far as to suggest leisure is over as the office now follows its employees everywhere thanks to the cloud.
Yet the imperative to get it right appears more important than ever. While we may indeed be able to work from anywhere, it seems we still want to come to the office.
Two-thirds of employees prefer to build relationships face-to-face, and the majority prefer to build that connection in an ideal workplace. How we create the ideal workplace remains to be seen.
Libby Sander is lecturer, Bond University, and authors for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/libby-sander-143232" target="_blank">here</a>.<a href="https://theconversation.com/profiles/libby-sander-143232" rel="author"></a>
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The backlash against open plan offices: segmented space

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GUEST OBSERVER
The Consumer Price Index – the main measure of inflation in Australia – rose by 0.4 percent in the June quarter, in line with expectations.
In seasonally adjusted terms the CPI rose by 0.6 percent. The annual rate of inflation fell from 1.3 percent to 1.0 percent – equalling the low set in June 1999. So inflation stands at a 17-year low. 
The Reserve Bank monitors three measures to derive the underlying inflation rate. The trimmed mean rose by 0.5 percent in the June quarter (1.7 percent annual); the weighted median rose by 0.4 percent (1.3 percent annual) and the CPI less volatile items rose by 0.3 percent (1.6 percent annual). Overall, underlying inflation rose by 0.4 percent in the quarter and by 1.53 percent over the year – a record low.
Petrol prices rose by 5.9 percent in the quarter with medical and hospital services up by 4.2 percent, tobacco up by 2.1 percent and new dwelling purchase up 0.9 percent. The CPI was dragged lower by a 3.7 percent fall in domestic holiday costs, a 1.3 percent fall in car prices and 1.5 percent fall in telecom equipment and services.
Education fees rose 3.3 percent over the year – the slowest growth on record. A raft of goods fell at a record annual rate including breakfast cereals, wine, snacks &amp; confectionary and communication. 
<a href="/images/2016/07/28/Screen%20Shot%202016-07-28%20at%208.21.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/28/Screen%20Shot%202016-07-28%20at%208.21.34%20AM.png" alt="">
What does it all mean?
 Price pressures are contained. Clearly this is not a new development and certainly not one confined to Australia. Consumers can buy goods anywhere and anytime with internet purchases transforming businesses across the globe. Competition is keeping downward pressure on prices and margins and causing businesses to look first at cutting costs before opting to lift prices. And disruption is adding to the competitive forces – developments like Airbnb and Uber are challenging mainstream industries and businesses.
Inflation is stubbornly below the Reserve Bank’s 2-3 percent target band. And importantly it is unlikely the Bank will look to revise the target any time soon. The only way that the Reserve Bank can seek to lift the inflation rate to the target band is by running the economy at a faster rate and that means cutting interest rates. So a rate cut will be on the agenda at the Reserve Bank Board meeting next Tuesday.
Will a rate cut actually boost growth? It is far from certain, but the Reserve Bank has to try. But the Reserve Bank won’t continue to cut rates if it’s clear that interest rates at super-low levels have become ineffective in boosting demand.
Before today’s data the Reserve Bank had assumed an annual headline CPI result near 1 percent in the June quarter with the underlying rate at 1.5 percent. Those forecasts have been realised. But the Reserve Bank had tipped inflation to stay locked between 1.5-2.5 percent over the next two years. So even before the latest data the Reserve Bank held open the possibility of a rate cut with inflation expected to remain at or below the bottom end of its 2-3 percent target range.
 Low inflation isn’t confined to certain parts of the economy – it is very much an economy-wide phenomenon. In fact the core measure of market-determined services (excludes volatile items) actually fell by 0.2 percent in the quarter. It’s not just goods but also services that are getting cheaper. Consumers are kings and queens in the current environment.
<a href="/images/2016/07/28/Screen%20Shot%202016-07-28%20at%208.22.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/28/Screen%20Shot%202016-07-28%20at%208.22.36%20AM.png" alt=""> 
What do the figures show?
Consumer Price Index
The All Groups Consumer Price Index (CPI) rose by 0.4 percent in the June quarter, broadly in line with expectations. In seasonally adjusted terms the CPI rose by 0.6 percent. The annual rate of inflation fell from 1.3 percent to 1.0 percent – equalling the low set in June 1999. So inflation stands at a 17-year low.
Underlying measures of inflation were generally in line with forecasts in the June quarter. The trimmed mean rose by 0.5 percent in the June quarter (1.7 percent annual); the weighted median rose by 0.4 percent (1.3 percent annual) and the CPI less volatile items rose by 0.3 percent (1.6 percent annual). Overall, underlying inflation rose by 0.4 percent in the quarter and by 1.53 percent over the year – a record low.
The Bureau of Statistics noted: “The most significant price rises this quarter are medical and hospital services (+4.2 percent), automotive fuel (+5.9 percent), tobacco (+2.1 percent) and new dwelling purchase by owner- occupiers (+0.9 percent). The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-3.7 percent), motor vehicles (-1.3 percent) and telecommunication equipment and services (- 1.5 percent).”
Prices of tradables rose by 0.6 percent in the June quarter with higher petrol prices offsetting low car prices. The tradables component of consumer prices was unchanged in the year to June.
Prices of non-tradables rose by 0.4 percent in the June quarter. Price increases were recorded for new dwelling purchase and hospital and medical services. The most significant offsetting fall was for domestic holiday travel and accommodation. Non-tradables prices rose by 1.6 percent in the year to June. Tradable goods are those items whose prices are largely determined on the world market. Non-tradable prices are more affected by domestic economic conditions.
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Why is the data important? 
The Consumer Price Index (CPI) is regarded as Australia’s premier measure of inflation. The CPI is published quarterly and measures price changes for a ‘basket’ of goods and services that dominate expenditure of metropolitan households. The “All Groups” index is the main focus, but other inflation measures are also published such as so-called ‘underlying’ measures. These include measures that abstract from price changes in volatile price items such as fresh food and petrol. The Reserve Bank aims to keep the headline inflation rate between 2-3 percent over an economic cycle. If inflation is high and expected to rise, the Reserve Bank may elect to raise interest rates in order to constrain price pressures. Conversely, if inflation is low and expected to remain low, the Reserve Bank may elect to cut interest rates if it believes the growth pace of the economy is in need of strengthening.
What are the implications?
CommSec expects the Reserve Bank to cut the cash rate next week by 25 basis points or a quarter of a percent to 1.75 percent.
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At the Reserve Bank website, four measures of inflation are represented – the headline rate of inflation and three underlying measures. All four are important. The headline inflation rate is at 17-year lows. The average underlying rate is 1.53 percent – the lowest result in data extending back to 1983. It is clear that little stands in the way of the Reserve Bank cutting rates again.</div>
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<div class="column">There are no inflationary pressures. Businesses will need to continue to look at cost and productivity savings to keep prices low or drive prices even lower. </div>
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 Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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Little in the way of the Reserve Bank cutting rates again: CommSec's Craig James

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GUEST OBSERVER
The Q2 CPI printed 0.4percent compared to Westpac’s forecast for 0.5 percent. The market median was 0.4 percent. The annual rate is now just 1.0 percentyr compared to 1.3 percentyr in Q1 which is the lowest rate of annual inflation since June 1999.
The core measures, which are seasonally adjusted and exclude extreme moves, rose 0.48 percent compared to the market’s expectation of 0.4 percent rise. Westpac’s forecast was lower at 0.35 percent. In the quarter, the trimmed mean gained 0.51 percent while the weighted median lifted 0.44percent. The annual pace of the average of the core inflation measures is now 1.5 percent from 1.5 percent in Q1 (Q1 was revised from 1.4 percentyr).
The six month annualised pace of core inflation came in well below the band at a very 1.3 percentyr pace, this is the fourth quarter in a row it has been below the bottom of the target band and the lowest six month annualised pace since the 1.3 percenty print in March 1999 (a seventeen year low).
Click to enlarge
<img src="/images/2016/07/27/Screen%20Shot%202016-07-27%20at%201.57.09%20PM.png" alt="">
Helping to hold the core measures down, but not pushing the pace even lower, was the modest 0.4 percent rise in housing cost which is a small lift from the 0.3 percent in Q1. Rents held a very subdued rise of just 0.2 percent (from 0.1 percent in Q1) but of more interest was the 0.9 percent bounce in house purchases from the very mild 0.2 percent in the March quarter. In the quarter dwelling prices rebounded in Sydney (1.5 percent from 0.5 percent in Q1), Melbourne and Brisbane (both 0.9percent from 0.4percent) easing fears that we may be seeing a significant slowdown in housing costs which would pin down both core and non-traded inflation.
Non-traded prices rose 0.4 percent in Q2 as a boost to health costs (2.6percentqtr) added to the lift from housing costs. 
Traded goods prices rose 0.6 percentqtr following a very weak –1.4percent in Q1. The June quarter saw something of a reversal for the auto fuel prices (+5.9 percentqtr vs –10percent in Q1) and fresh fruit &amp; vegetables (1.7percent vs –4.3 percent in Q1). However, excluding fuel, food and tobacco traded goods rose a modest 0.3 percentqtr which is only a modest bounce from the 1.3 percent decline in Q1. This left this ‘core’ measure of traded goods prices at a very modest 0.3percentyr.
Our March quarter observation about across the board weakness in Australia retail prices was modestly reversed in the June quarter with some recovery housing costs, a lift in health costs and some sign of AUD pass-through with 2.0 percent lift in clothing &amp; footwear prices. As such, it does provides at least some near term relief from fears that the outlook for inflation could be significantly lower than what the RBA is currently expecting. 
It does not, however, remove those fears as falling food prices (ex-fresh fruit &amp; vegetables), recreational goods and car prices highlight that the pressure on margins remain. 
Outlook for the RBA – Bill Evans, Chief Economist. 
The underlying measure of the inflation printed 0.48percent to two decimal places. That was above our forecast of 0.4percent. Annual underlying inflation held steady at 1.5percent – outside the 2-3 percent target range.
We pointed out in our note last week that the risk in the number was in the “house purchase” or “construction costs” that printed 0.9percent compared to our expectation of 0.3percent. However the other housing component that captures the housing effect – rents remained subdued at our forecast number of 0.2percent.
The RBA sees the disinflationary “forces” coming from weak wages growth; tight retail margins; and slowing housing costs while it is less convinced about the “pass through” effect of the fall in the AUD.
Evidence of sagging wages growth and disinflationary global pressures provide little evidence that “something will turn up” to reverse this ongoing “below target zone” performance.
The retail margin squeeze was apparent with food; household goods; and cars, although not in clothing and footwear. The housing slowdown eased in the quarter.
Recall that the RBA’s own forecast for underlying inflation for the year to June quarter was 1.5 percent – so this number will be in line with their forecasts.
Also recall that the RBA forecast for underlying inflation in 2016 is 1.5 percent and 2.0 percent in 2017.
That forecast, in May, used “market pricing” which at the time incorporated a further full rate cut by year’s end.
We can only assume that the Bank  will continue to accept that another rate cut , some -time in 2016, will be necessary to achieve these “barely acceptable.” forecasts in the context of a Bank that targets a 2-3 percent inflation “zone”.
Another way to look at this number is that at 0.48percent still “annualises” to a “below target range” number. Of course, the 6 month annualised number is running at 1.3percentyr.
In our view this report is still consistent with a rate cut of 0.25 percent next week.
However because there was some “bounce back” in the number the case can be made to wait if there is a fundamental philosophical resistance to cutting.
Evidence of that “resistance” softened in the recent Board minutes where the Board appeared to be more cautious around both the labour market and the housing market.
With the market expecting a rate cut and most commentators supporting that position the best policy still appears to be another cut.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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Rate cut of 0.25 percent possible: Bill Evans, Justin Smirk

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According to the Australian Bureau of Statistics, consumer prices rose by 0.4 percent from the prior quarter and 1 percent over the year to June 30.
The numbers were largely in line with economist projections.
Today’s inflation figures were highlighted by the RBA as key to any decision to cut the rates again.
The yearly rise of 1 percent is the lowest since the 1999 June quarter of 1999 so leaves the door open to a further rate cut this year.
With underlying inflation at 1.5 percent year on year, which is what the RBA especially watches, and still below the target 2 percent to 3 percent, many forecasters still see the case for another rate cut.
The A$ actually jumped on the latest ABS release, but then came back a tad in late morning trade.
Opinions remained divided but the general consensus was echoed by Stephen Koukoulas ‏tweeting: "There's the rate cut locked in for next week."
CommSec also suggested the chances of an RBA rate cut next week have increased after the release of softer than expected 2Q inflation.
CommSec's Craig James then issued an advisory that noted inflation is stubbornly below the Reserve Bank’s 2-3 per cent target band. 
"And importantly it is unlikely the Bank will look to revise the target any time soon. 
"The only way that the Reserve Bank can seek to lift the inflation rate to the target band is by running the economy at a faster rate and that means cutting interest rates. 
"So a rate cut will be on the agenda at the Reserve Bank Board meeting next Tuesday.
"Will a rate cut actually boost growth? It is far from certain, but the Reserve Bank has to try. 
"But the Reserve Bank won’t continue to cut rates if it’s clear that interest rates at super-low levels have become ineffective in boosting demand."
THE ALL GROUPS CPI
<ul>
<li type="square">rose 0.4 percent this quarter, compared with a fall of 0.2 percent in the March quarter 2016. </li>
<li type="square">rose 1.0 percent over the twelve months to the June quarter 2016, compared with a rise of 1.3 percent over the twelve months to the March quarter 2016.</li>
</ul>
 OVERVIEW OF CPI MOVEMENTS
<ul>
<li type="square">The most significant price rises this quarter are medical and hospital services (+4.2 percent), automotive fuel (+5.9 percent), tobacco (+2.1 percent) and new dwelling purchase by owner-occupiers (+0.9 percent). </li>
<li type="square">The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-3.7 percent), motor vehicles (-1.3 percent) and telecommunication equipment and services (-1.5 percent).</li>
</ul>
 
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Inflation figure leaves door open for August rate cut by RBA

Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

Joel Robinson

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

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.

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.

Jonathan Chancellor

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