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GUEST OBSERVER
 It’s now four weeks since the Brexit panic on June 24 and since then US and European shares are up 6 percent, British shares are up 9 percent, Australian shares are up 7 percent and Japanese shares are up 11 percent.
Fears around Brexit’s global impact look to have been wildly exaggerated. The only really lasting impact (so far) has been on the British pound which is down another 3 percent leaving it down 11 percent from June 23rd, which understandably reflects the negative impact of Brexit on the UK economy.
Over the past week the rally in shares generally continued with US and European shares up slightly, solid gains in Japanese and Australian shares but a fall in Chinese shares. A combination of good economic data, good US profit results, the absence of a major negative impact outside the UK from Brexit and talk of more policy stimulus in parts of the world are continuing to help. 
Bond yields were generally flat to down, commodity prices were mixed and the $A fell partly in sympathy with NZ moves towards another monetary easing. 
The talk around Japan’s planned fiscal stimulus is continuing to get ramped up with the size of the package supposedly going from ¥10trillion, to ¥20trillion to maybe even ¥30trillion which is around 6 percent of GDP albeit it depends how many years it is spread over. If as we expect it’s focussed on encouraging consumers to spend more then it should have a reasonable chance of success. 
In maybe a sign of things to come in Australia – NZ looks to be heading for another rate cut. After a surprisingly low June quarter inflation outcome, the announcement of plans to tighten restrictions on residential mortgage lending and the Reserve Bank of New Zealand stating that “a decline in the [$NZ] is needed”, the RBNZ has clearly set the scene for a rate cut next month. In fact, it doesn’t mince words stating that “it seems likely that further policy easing will be required”.
The IMF downgraded it global growth forecasts to 3.1 percent for 2016 (from 3.2 percent) and to 3.4 percent for 2017 (from 3.5 percent) on Brexit risks - but hardly a surprise. It must often strike the ordinary investor as weird that much fanfare is given to the IMF downgrading its growth forecasts but share markets seem to largely ignore it. There are several reasons for this but in essence it’s because the market (and most economists) have already moved ahead of the IMF and the IMF global growth forecasts have been starting out too optimistic for years now. 
Since early this decade they have been starting out forecasting 4 percent global growth for the year ahead only to end around 3 percent. This is not great – but it’s not bad either! Just more of the same. 
 One positive from the last week – we learned that Trumps can say thoughtful things. Not to worry that they were Michelle Obama’s. In the week ahead it’s on to the Democrat convention which may be a lot calmer. 
Major global economic events and implications
US data on a roll. Housing data was strong (with solid readings for home builder conditions, starts, sales and home prices), jobless claims remain very low, leading indicators rose more than expected and while the headline Philadelphia Fed manufacturing index fell readings for shipments, new orders and employment rose solidly. The US housing recovery likely has a long way to go as housing starts at 1.2 million continue to run below underlying demand of 1.5 million with the overbuilding of last decade having been more than worked off. Buying a house in Detroit still looks like a good proposition! 
 Evidence is continuing to build that US profits bottomed in the March quarter. 115 S&amp;P 500 companies have now reported June quarter earnings to date and so far so good with 81 percent beating on earnings and 58 percent beating on sales. While the market expects profits to fall 3 percent from a year ago, this will translate into a rise in profits of 8 percent from the March quarter.
As expected the ECB remained in wait and see mode at its July meeting. However, President Draghi referred to greater uncertainties in reference to Brexit and reiterated the ECB’s “readiness, willingness and ability to act” if necessary. We remain of the view that its QE program will be extended beyond its current expiry of March 2017. 
Eurozone consumer confidence fell only fractionally in July suggesting little impact on confidence (or perhaps it was a case of good riddance). Interestingly the ECB’s bank lending survey showed an increase in demand for loans and a further easing in lending standards which is also a good sign as the survey was conducted before and after the Brexit vote.
Japan’s manufacturing conditions PMI showed a welcome improvement in July albeit it’s still weak.
The Chinese property market recovery remains a positive for Chinese growth – with residential property prices up another 0.8 percent in June or 7.8% year on year. Tier 1 cities are seeing most the gains but Tiers 3 and 4 have picked up. Meanwhile, the MNI Chinese business sentiment index rose in July and significant flooding in parts of China could have a short term positive impact on GDP from rebuilding and may temporarily boost food prices.
Australian economic events and implications
In Australia, the minutes from the RBA’s last Board meeting confirmed that the door is wide open for another rate cut at its August 2 meeting. 
While not as direct as the Reserve Bank of New Zealand, the RBA indicated that it was waiting on further information on inflation, the labour market and the housing market and the next update of the RBA’s economic forecasts. Since it has described the labour market and the housing market as “mixed” and recent data on both suggest no reason to change that assessment, the implication from the RBA is that should we see another low inflation reading when the June quarter CPI numbers are released on Wednesday then it’s likely that the RBA will cut the cash rate from 1.75 percent to 1.5 percent on August 2. A CPI outcome of 0.4% quarter on quarter  for headline and underlying – which is what we expect - would likely be enough to see the RBA cut again.
What to watch over the next week?
The focus in the week ahead will be on monetary policy -  with June quarter inflation data in Australia providing a guide to whether the RBA will cut rates again next month and both the Fed and Bank of Japan meeting – and European banks with another round of stress tests.
In the US, we expect the Fed (Wednesday) to leave rates on hold as it seeks to gain more confidence that US growth is back on track and that the impact from Brexit will be minimal but to indicate that it still expects to raise rates in a gradual and cautious fashion. 
The US money market is only implying an 8 percent chance of a hike in the week ahead but the Fed may try and push up the market’s probability of a hike going forward which is currently at just 25 percent for September and 45% for December. With US growth averaging around 2 percent, the labour market continuing to tighten with wages growth edging higher and inflation heading up towards target we see more like a 65% chance of a hike in December. The main brake on the Fed will be if the $US rises too strongly as it amounts to a de facto monetary tightening. On the data front in the US expect to see continuing gains in US home prices, a rise in new home sales but a fall in consumer confidence (all Tuesday), softish durable goods orders and a rise in pending home sales (Wednesday), a slight edging up wages growth according to the June quarter employment cost index and a bounce back in annualised GDP growth to 2.6 percent in the June quarter (both Friday) after just 1.1 percent growth in the March quarter. Earnings will also remain a focus with over 100 S&amp;P 500 companies to report June quarter earnings.
In the Eurozone, the focus will be on the latest ECB bank stress tests (Friday) which will indicate whether banks are sufficiently capitalised or not. Italian banks of course will be the main focus, and the stress tests should help clear the way for some of them to be recapitalised. On the data front expect June quarter GDP (Friday) to show moderate economic growth of around 1.5 percent year on year and confidence readings (Thursday) will provide a guide to the impact of Brexit on business confidence. Data will also be released for bank lending (Wednesday) and core inflation (Friday) is likely to have remained around 0.9 percent year on year on July.
The Bank of Japan (Friday) is likely to announce further monetary easing as the Japanese government prepares to unveil its much talked about fiscal stimulus package. While it’s doubtful this will involve “helicopter money” (ie direct BoJ financing of government spending), it is getting close. Rather its likely to involve further monetary easing through some combination of increased ETF purchases and corporate debt purchases and a another cut in the negative deposit rate. Japanese data due Friday is expected to show continued labour market strength and a bounce in industrial production but soft household spending and inflation.
In Australia, expect another low inflation reading on Wednesday for the June quarter to clear the way for an August RBA rate cut. While headline inflation is expected to rise 0.4 percent quarter on quarter thanks to higher petrol prices and a seasonal rise in health costs this is likely to see annual inflation drop to 1.1% year on year and low wages growth and competitive pressures are likely to have seen underlying inflation rise just 0.4%qoq or 1.4%yoy which is down from 1.6%yoy in the March quarter. Export, import and producer price inflation data will also be released. June credit data (Friday) is likely to show that credit growth remains moderate with the stock of lending to property investors continuing to show slower growth.
Outlook for markets
Brexit related risks, Italian bank risks, renewed $US strength as the Fed heads back towards tightening and seasonal September quarter weakness could still see more volatility in shares in the short term. However, beyond near term uncertainties, we anticipate shares trending higher over the next 12 months helped by okay valuations, very easy global monetary conditions and continuing moderate global economic growth. 
Ultra-low bond yields (with one third of the global bond index in negative yield territory) point to a soft medium term return potential from them, but it’s hard to get too bearish in a world of fragile growth, spare capacity, low inflation and ongoing shocks. That said, the recent bond rally has taken yields to pathetic levels leaving them at risk of a snapback. Renewed expectations of a Fed hike may be the driver.
Commercial property and infrastructure are likely to continue benefitting from the ongoing search for yield by investors. 
Dwelling price gains are expected to slow to around 3% over the year ahead, as the heat comes out of Sydney and Melbourne thanks to tougher lending standards and as apartment prices get hit by oversupply in some areas. Prices are likely to continue to fall in Perth and Darwin. 
Cash and bank deposits offer poor returns. 
The Australian dollar is still higher than it should be and the longer term downtrend looks likely to continue as the interest rate differential in favour of Australia narrows as the RBA continues cutting and the Fed eventually resumes hiking, the risk of a sovereign ratings downgrade continues to increase, commodity prices remain in a secular downswing and the $A sees its usual undershoot of fair value. The $A is still likely to fall to around $US0.60 in the years ahead. 
 <a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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Low inflation to clear way for RBA rate cut: Shane Oliver

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GUEST OBSERVER
Private building activity is set to soften in 2016 after strengthening in four of the past five years.
Approvals have long since declined, led lower by the office market, with recent activity levels sustained by reducing the work pipeline. We anticipate only a relatively modest moderation in private activity.
By contrast, public works - accounting for 20 percent of total activity - is beginning to recover, after the downturn of recent times. This will provide only a partial offset to weaker private sector activity.
Click to enlarge
<img src="/images/2016/07/22/Screen%20Shot%202016-07-25%20at%208.14.53%20AM.png" alt="">
Activity: Real private building activity turned down in the March quarter, contracting by 6.7 percent to be 4.4 percent lower than a year ago. That follows a 31% expansion in the five years to December 2015, including a 7.8 percent increase in 2015.
Public works began to turn higher in the March quarter, advancing by 2.7 percent, to still be 11.7 percent lower than a year ago.
<a href="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.19.49%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.19.49%20AM.png" alt="">
Total real building work contracted by almost 5% in the March quarter, to be almost 6% lower than a year, having been broadly flat in both 2014 and 2015.
Total commencements lifted to be above par in the March quarter, valued at $8.9bn, up from a 2015 average of $7.5bn and averages for the previous five calendar years ranging between $8.2bn and $8.4bn. That said, the March result is insufficient to prevent a near-term moderation in activity.
Private commencements moved broadly sideways in Q1, at $6.2bn, relative to $5.9bn on average for 2015, which is down from the three previous calendar years, ranging between $6.3bn and $6.9bn. Public commencements lifted in Q1 to $2.7bn, the strongest quarterly result in four years, and up from a 2015 average of $1.5bn. The result was boosted by health projects proceeding across Tasmania, NSW, South Australia and the ACT.
The pipeline of work outstanding has been significantly reduced since mid-2014, to be at $20bn, down from a peak of $27bn, as work progresses on major health projects and office buildings across the states. For private projects, the work pipeline at $13.9bn currently, down from $20.7bn, is approaching the lows of 2009 to 2011. For public projects, the pipeline has lifted to a still low $6.2bn, up from $4.7bn in mid-2015.
•As to the prospects for a near-term moderation in building activity, it is notable that private commencements are running 13% below the current level of work done, while for the sector as a whole, the figure is about 7 percent below.
<a href="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.25.44%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%208.25.44%20AM.png" alt="">
Commencements and approvals
Commencements were above par in the opening quarter of 2016, coming in at $8.9bn, up from the 2015 average of $7.5bn. Strength was evident in public projects, at $2.7bn, up from a 2015 average of $1.5bn. Notably, a number of health projects commenced in the quarter, across Tasmania, South Australia, the ACT and NSW. Private commencements tracked broadly sideways in March 2016, at $6.2bn relative to a 2015 quarterly average of $5.69bn.
Notwithstanding the positive start to 2016, the broader trend remains that commencements and approvals have taken a step lower since the first half of 2014 - albeit a relatively modest one by historical standards.
As to the more timely building approvals, these have been broadly steady of late, but are down from earlier highs - see charts opposite. In the year to May 2016, total approvals increased by 2% relative to the year prior, leaving them 14 percent below the peak in the year to February 2014. For private sector projects, approvals are 15% below the peak of early 2014, including a 5 percent decline over the past year.
The office market is a key driver - but certainly not the only driver - of building approvals and building activity. Office approvals are characterised by large swings reflecting the long lead times for often large projects. Over the past decade, office approvals have moved through two cycles, with a pre-GFC peak in 2008 of $9bn and a post-GFC peak of almost $8bn in 2013, see chart opposite. Currently, office approvals are at cyclical lows, at $3.7bn, some $4bn, 50 percent, below earlier highs.
Total building approvals are only modestly below the highs of early 2014, in contrast to the sharp retreat in the office market. This divergence reflects a number of key trends, notably: strength and the growing importance of social building projects (which includes health, education, aged cared, accommodation and entertainment); the resilience of the retail sector, as competition for the consumer dollar intensifies; and a lift in public approvals during the past year, albeit from relatively low levels.
State-by-state 
Conditions and the outlook are quite varied across the states. As at the national level, the importance of social building projects, a lift in public investment, and resilience in the retail sector together add nuances to the state-by-state picture not apparent from differences in office markets across the capital cities.
Real building work nationally declined by 6% over the past year, down $0.5bn, centred on a softening of activity in: Victoria (from a high base); South Australia; and WA - which more than offset a lift in Qld and Tasmania, while the cycle was cresting in NSW.
In the mining state of WA, building activity in 2016 has further downside, notwithstanding firmer approvals over the past couple of months. By contrast, conditions in Qld are likely to be reasonably resilient with retail and social approvals strengthening of late. In Victoria, where the work pipeline is now relatively low, much of the pull-back in activity has occurred. In NSW, a sizeable work pipeline will support activity near-term, ahead of a likely moderation - one that may be relatively mild if a round of new projects receive the go ahead. In South Australia and Tasmania, a lift in public investment will support activity going forward, particularly in Tasmania. 
 
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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Modest downturn in non-residential building sector:  Andrew Hanlan

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Urban and regional planning, as an institutional practice, is increasingly criticised for failing to meet ordinary citizens' needs. Enter “hacktivism”.
Fusing hacking and activism, the term has previously referred to using information technology to achieve political goals. While “hacking” often entails malicious attacks on websites, it has another meaning. Hacking also means innovative problem-solving by combining new ideas with readily available materials.
Examples include taking an old DVD and using it as a drink coaster, bending a paperclip to reset a digital device, or twisting a coat hanger to unblock a drain. These are do-it-yourself “hacks” like those of the television character MacGyver.
Essentially, hacking is creative problem-solving. “Hackathons” are a case in point. Hackathons involve the “brainstorming, designing and testing of ideas with change-makers”.
Hacktivism in this sense refers to grassroots problem-solving by like-minded people who are willing to “go round the back” of established institutions to achieve social objectives. Hacktivism reflects a growing disenchantment with mainstream institutions, pervasive neoliberalism, and cultures of consumption.
Hacktivism is different to “place-hacking” by urban explorers. Recent examples of this include guerrilla gardens, pop-up libraries, repurposinginfrastructure and even disco traffic lights and street pong.
<h2>What’s driving hacktivism?</h2>
Hacktivism can challenge the trend among governing bodies to embrace neoliberal rhetoric about fast-tracking development. Cutting “red” and “green” tape disenfranchises residents.
Debates about urban consolidation are an example. Big developers seem to be able to bulldoze communities into accepting projects, which some residents feel will destroy the places they love, overshadow backyards, reduce privacy, increase congestion and noise, or even ruin neighbourhood character.
These concerns are often dismissed as “NIMBYism” and self-interest.
But streamlined development assessment processes and “consultation” typically limit citizen engagement. Who can blame residents for getting angry?
Citizen groups, civic-minded planners, environmentalists and others are beginning to resist the privatisation of public spaces and the erosion of public functions by offering alternatives. These range from interventions such as the parklets and pop-up venues of so-called “tactical urbanism” to more “activist”-oriented responses such as a Toronto group’s subversive use of advertising billboards.
<h2>Case studies in Australia</h2>
In Australia, a small but growing cadre of residents is experimenting with hacktivism in planning. Two recent examples are instructive:
<ul>
<li>
Gold Coast Hinterland and Environment Council’s (GECKO) initiative to “hack planning” by producing a community-led climate change action plan; and
</li>
<li>
organised community resistance to the “West Village” development in West End, Brisbane, where residents have developed their own collaborative planning processes to create an alternative vision for the site.
</li>
</ul>
West End has a history of community-based resistance to evictions and inappropriate or undesirable development. It also has a history of challenging developers and governments to engage in a more sophisticated debate around best practice in planning and development.
The West Village development proposes seven 15-storey apartment towers and a large supermarket on an inner-city lot. This project highlights the ongoing struggle for social justice in inner Brisbane in the face of rapid development.
Stage 1 of West Village was deemed code-assessable, meaning no provision for public notification and no appeal rights. The full masterplan for the site is, however, impact-assessable.
Many residents saw the development proposal as flawed and creating many serious problems. Building on existing social ties and strengths, a group of residents and interested parties have begun to create an alternative vision (“Instead of West Village”) for the site. The aim is to pressure both the developer and government to engage with their concerns and aspirations.
Residents are using an open, collaborative, community-based planning process, similar to earlier grassroots engagements in the suburb. Community-led draft masterplans have been developed and discussed at various events. These plans are contrasted against community-generated models and images of the proposed development. Public meetings and workshops have enabled input from diverse quarters.
The alternative vision is still being finalised, but the collaboration and spirit of hacktivism underpinning it transcend the importance of the alternative master plan.
This hacktivism asserts a right to the city. It demands that planning be better: more just, more sustainable, more inclusive. In doing so, communities are beginning to “hack” planning itself.
GECKO’s recent Climate Change For Good Conference is a second example. This local non-profit organisation has partnered with the Queensland government to pioneer a new model of local climate-change adaptation.
The process began with a weekend of presentations by a range of experts and practitioners. These were accompanied by community-based problem-solving workshops. The forum closed with an innovative proposal to “hack planning”.
The intent is to devise a living document that crowdsources innovative adaptation ideas from the community to meet challenges such as health, food and water security, emergent business opportunities and place-making. This offers an alternative to Gold Coast City Council’s climate change adaptation plan, which has been shelved.
The community-led plan will enable engagement with diverse groups that are often marginalised in the planning process, such as Aboriginal groups, caravan park dwellers, migrants, youth and homeless citizens.
By giving a voice to real people living in everyday places, and by drawing on citizen knowledge and ingenuity, hacktivism promises action on issues beyond the remit of traditional planning. So, how could you “hack” your city?
Jason Byrne is associate professor of Environmental Planning, Griffith University and can be contacted <a href="https://theconversation.com/profiles/jason-byrne-6066" target="_blank">here</a>.
Natalie Osborne is lecturer, School of Environment, Griffith University and can be contacted <a href="https://theconversation.com/profiles/natalie-osborne-282804" target="_blank">here</a>.
Both are authors for The Conversation.
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Urban hacktivism: getting creative about involving citizens in city planning

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New Zealand investor Brian Cook has secured the $16.3 million retail component of the new Omnia residential development in Potts Point.
The Woolworths Omnia centre comprises the 1,190sqm retail component of the new Omnia residential development, anchored by a 15-year prelease to Woolworths. 
It is directly opposite Coles and close to Harris Farms outlet.
CBRE’s Nick Willis negotiated the sale on a yield of close to 5 percent with colleagues Justin Dowers and Sharon Yang.
The Omnia sale is subject to Woolworths not exercising a final right of refusal to acquire the property where it plans a new format Metro store.
Woolworths has been operating from the Ikon basement on Macleay Street, with its future in doubt, but Woolworths is coy on giving its rivals any indication of its formal intent.
"We ensure our Metro stores are all in locations which are convenient for our customers to easily access given their busy lives and we look forward to launching in the area by 2018."
The Auckland-based investor Ben Cook has taken his Australian retail property buying spree over the past nine months to over $100 million.
The Cook Property Group also acquired the Beach House Lane retail centre on Bondi Beach for $31 million and the Bunnings warehouse in Sydney's Eastgardens for $56 million last October.
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New Woolworths Potts Point premises sold

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The Mt Eliza home that Roger Federer stayed in during the Australian Open has been listed for $2.5 million plus.
Considered as one of the greatest to ever play the game, Federer rented the Mornington Peninsula property for around $1,800 per week during the Grand Slam in Melbourne.
<a href="https://www.realestate.com.au/property-house-vic-mount+eliza-122378694" target="_blank">Listed through Nicholas Lynch Mornington agent Vicki Sayers</a>, the five bedroom home has many luxury features, but a tennis court isn't one of them.
It does however offer direct access to Ranelagh Club however, which has six courts.
Set on 1270 sqm with views across the bay to the city skyline, the Rosserdale Crescent house was built in 2006 after the block cost $425,000 in 2001.
This article was first published in the Weekend Australian Mansion Australia property section.
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Roger Federer's Mt Eliza holiday rental up for sale

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Australia's richest woman, Gina Rinehart, has expanded her cattle business.
She has bought two more cattle properties located south-west of the town of Katherine in the Northern Territory.
They were bought from one of Indonesia's largest importers of cattle, Japfa.
The Rinehart-controlled Hancock Prospecting Pty Ltd made the announcement.
The financial terms of the deal were not disclosed.
"I am very excited about the acquisition of these two cattle properties and to be investing in Australia, particularly in the Northern Territory," Mrs Rinehart said in a statement.
"I am passionate about our agricultural industry and developing northern Australia."
The combined purchase of 550,000 hectares (1.36 million acres) and 40,000 head of cattle marks the latest agricultural acquisition from the mining magnate after Mrs Rinehart bought a West Australian cattle station last year.
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Gina Rinehart buys another northern cattle farm

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
One of the startling facts about the Brexit vote was the deep division between the city of London and the rest of the country.
There was clearly a sense that change was working to the advantage of the urban elites, and often to the detriment of people who lived outside those privileged areas.
The recent Australian election reveals some of the same division but within the major cities rather than between city and the regions. Inner-city areas voted quite differently to the suburbs.
The fight over Melbourne’s East-West Link road project played out in those terms. The plan was heavily opposed by inner-city residents who had access to good public transport (trams, trains, buses, bicycles etc) and supported by residents of the suburbs who wanted improved cross-city road transport. The inner-city elite won.
We now have a similar but more egregious case evolving in Melbourne. The state government is supporting the construction of a project called the Western Distributor. It is basically a plan to improve the flow of goods in and out of the Port of Melbourne (which is in the CBD). This provides a significant benefit to the people of the western suburbs – that is, to the poorer half of the city.
There are two advantages to the city’s west. It will dramatically reduce the number of trucks passing along suburban streets and it will reduce travel times from the west to the north of the city. The government’s evaluation is that it will:
… take 22,000 vehicles including 6,000 trucks off the West Gate Bridge daily, remove up to 6,000 trucks from local streets in the inner west, improving amenity, air quality and safety … [and] reduce serious injury crashes by 20 percent.
The Victorian government promotes the benefits of the Western Distributor Project.
There is also a broad economic advantage to Victoria as a result of better logistics flows. Melbourne is a major container port and improvements to the movement of freight produce advantages for all Victorians: the project will “cut travel time to the port by up to 50%, and deliver an annual A$35 million saving to the freight industry”.
Opposition based on self-interest
The inner city is opposed to the project. The grounds put forward are revealing. City of Melbourne Greens councillor Cathy Oke said:
No city in the world is encouraging cars into the CBD so I can’t see how this project is a winner for our liveability status.
The state Greens MP for inner-city Melbourne, Ellen Sandell, makes the same argument:
No modern, global city is trying to bring more cars into its CBD. We should be investing even more in public transport, cycling and pedestrian infrastructure and ways to get trucks off streets in the west – not new freeways that bring cars into the city.
These are clearly selfish propositions. Inner-city residents do not want any more cars in the city regardless of the benefits that might accrue to other residents of Melbourne, and regardless of any broader economic benefits for the city and the state. The fact that the people of the west are poorer, have worse public transport, worse health outcomes and high levels of unemployment, is seen as unimportant.
A recipe for social divisions
These are the sort of elite positions that created Brexit and the broader political unhappiness in Europe and the US. If the inner-city residents are going to be this selfish, then we can expect to see some political response from the suburbs.
The inner city is spoilt. Inner-city residents have free trams in Melbourne, paid for by people in the suburbs. Inner-city residents have all of the Melbourne arts precincts and all of the cultural venues, also all subsidised by people in the suburbs. The inner city also has all of the major sporting venues, again all subsidised by the suburbs.
If we are to avoid the rise of populist concerns seen in other countries, the inner-city elite need to change its attitude. Rather than dividing the society by rejecting change that might hurt rich inner-city dwellers a little but provide substantial benefits for the rest of the city, these sorts of changes need to be considered fairly and discussed reasonably.
Residents in inner-city Melbourne (and inner-city Sydney and Brisbane too) have lower unemployment, higher pay and much better cultural amenity than people in the suburbs. Fairness requires some change and better support for the poorer parts of the city, not the richer parts.
Governments need to respond too by reducing the subsidies to the inner city. Even some clearer presentation of the state budgets to separate out the impact of spending on a geographical basis would help. Let us start spreading the benefits more widely.
Rodney Maddock is vice chancellor's fellow at Victoria University and Adjunct Professor of Economics, Monash University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/rodney-maddock-107543" target="_blank">here</a>.
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Inner-city bias: the suburbs need a fair go

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Property developer Theo Onisforou has purchased an Elizabeth Bay knockdown, but with no desire of demolishing the Billyard Avenue home.
He maintains his $6.8 million purchase of the non-waterfront house at Bradfield Cleary auction was best kept as a renovated single residence dwelling rather than flats on the 530 sqm holding.
He's since told friends he'd snapped up the cheapest house in the suburb's best street.
There are just the 10 freestanding houses on the avenue where he also lives.
Boomerang tops the offerings, and already eliciting serious buying interest.
Onisforou suggests ownership opportunities for non-unit dwellers are limited in the densely populated precinct so expects a nice rental return from downsizers who desire a freestanding home.
It last sold 44 years ago.
This article was first published in the Saturday Daily Telegraph.
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Elizabeth Bay knockdown gets second wind from investor

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Caroline Frykberg, the widow of the late sports broadcasting legend, Ian Frykberg has sold their Port Douglas retreat for $5.1 million.
Perched high on the most easterly point of Flagstaff Hill, the home offers views of the Coral Sea, Four Mile Beach and the rainforest.
The 931 sqm Murphy Street parcel comes the five bedroom, four bathroom residence which has been <a href="https://www.beachvillas.com.au/Bangalow-50-Murphy-Street.19.0" target="_blank">a holiday rental</a>.
It was bought for $2 million in 2001 from the comedic Melbourne entreprenuer Steve Vizard. The Frykberg's had previously owned next door, a penthouse which was bought in 1997 for $640,000 and sold in 2003 at $1 million.
Fryckers, as he was affectionately known, was a formidable force in the media game, the founding executive producer of the Today Show in 1982.
He went onto broker deals for the NRL, AFL and the English Premier League.
The home sold to Melbourne couple, Tony Nunan, the former national president of the Pharmaceutical Society of Australia, and his wife Genevieve.
This article was first published in the Weekend Australian Mansion Australia property section.
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Port Douglas Frykberg retreat sold

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GUEST OBSERVER
Governments and private companies could save millions of dollars and drastically reduce their carbon footprint with a simple adjustment to the way they use air conditioning.
Air conditioning systems were generally fixed at what is considered to be an optimal 22 degrees based on an arbitrary standard which took no account of outside temperatures and employee comfort levels. It turns out that we heat and cool the built environment to a fixed 22 degrees. Why? Because it is the thermal comfort level of a forty four year old man which was determined by the Americans in the 1950s. I kid you not. This is an arbitrary point that makes little sense and which costs governments and industry millions of dollars a year to say nothing of the impact on the environment. In 2008 the United Nations, as a publicity stunt at its New York headquarters, adopted a temperature range of 19-25 degrees. A month later the UN estimated the savings at one hundred thousand US dollars. In Australia some 40 percent of our energy is consumed in the built environment and a large amount of that energy is used in heating and cooling. The question is why wouldn’t you adopt some flexibility with regard to your air-con temperature settings? If we did this in Australia in office buildings and shopping centres, it would save a hundred million dollars and three hundred thousand tonnes of carbon emissions per year and it would not cost a cent. Now let’s run that out through all the other property in the country including residential and then run that out around the world and we are talking billions of dollars and millions of tonnes every year. Irrespective of the dollar savings, it was incumbent upon governments and industry to make that adjustment as part of their social responsibility.
For more information, <a href="https://www.savills.com.au/research/australian-research/life-out-of-balance.aspx" target="_blank">click here</a>.
Tony Crabb is national head of research, Savills Australia and can be contacted <a href="https://www.savills.com.au" target="_blank">here</a>.
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Air conditioning at 19 to 25 degrees would save millions of dollars: Tony Crabb

Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Joel Robinson

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

Jonathan Chancellor

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