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<div>A revived Victorian Italianate mansion has been sold for $6.35 million in Woollahra.</div>
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<div>The impressive three-storey, four bedroom home at <a href="https://www.realestate.com.au/property-house-nsw-woollahra-122423454" target="_blank">19 Wellington Street</a> sits on a 474 sqm land parcel.</div>
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<div>Built in 1890, the property has undergone a contemporary revival with regard to its heritage.</div>
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<div>The lower level is devoted to recreation, complete with a home cinema, gym and temperature-controlled wine cellar.</div>
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<div>Pillinger Double Bay sold the home which comes with Carrara marble bathrooms and kitchen.</div>
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<div>The median house price in Woollahra is $2.4 million according to CoreLogic RP Data.</div>
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jchancellor-FAypfDUnLy

Italianate trophy home sells in Woollahra

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
At the most basic level a government budget is about two things: revenue and spending. True happiness, as Mr Micawber would say, lies in ensuring that outgoings do not exceed what comes in.
Under that definition NSW treasurer Gladys Berejiklian would be very happy today, having handed down a budget with a surplus of $3.4 billion this financial year (and $3.7 billion over 2016-2017), as well as forecasts of surpluses (albeit slimmer) in the forward estimate years ending 2019-20. And this feeling may well spill over to the Federal Coalition in coming election.
The results, mainly off stamp duties received from residential property and its participation in the federal government’s asset recycling incentive program, which rewards it for investment in infrastructure and privatisation of state assets, sees the state’s debt drop to just .01% of Gross State Product, backing her claim six months ago that NSW was debt free for the first time in 20 years.
It’s not all good news, with Berejiklian noting NSW would lose GST payments from the Commonwealth by some $850 million, equating to $10.8 billion in lost revenue by 2019-20.
State governments are technically sovereign on their spheres of competence but in the real world they are highly dependent on the commonwealth government because of vertical fiscal imbalance. They cannot do what they have to do without a regular influx of money from the Commonwealth government. This constrains their freedom of action.
Berejiklian, claimed that this was a function of the success of the NSW economy and government financial management which perhaps only underlines some of the perversities of Australian federalism in action.
The NSW state government has claimed $3.4 billion dollar surplus for 2015-16 and says that it will deliver surpluses of about $2 billion a year for the next four years. However, it was recently reported that there could be a $17 billion “black hole" in future budgets over the next few decades.
One issue is that state revenue quite dependent on the property market and its capacity to deliver stamp duty. The capacity of NSW by itself as with all the states to raise revenue is limited. This is why state finances are vulnerable to the up and downs of the property market.
Given that the boom in the construction of apartments appears to be coming to an end this may mean the NSW’s capacity to remain “debt free” is very limited. This is perhaps why Mike Baird at the beginning of 2016 was such a vocal supporter of an increase of the rate of taxation imposed for the GST.
In this context, two of the taxation measures in the budget are interesting. One is the imposition of an additional stamp duty and land tax for foreign investors.
The other is the reduction of certain types of duty for business. Both of these resonate with the federal election, the desire to make those from elsewhere pay tax and the reduction in company tax by the Liberals.
Both of these measures indicate important aspects of any Liberal strategy; on the one hand the need to raise money in a way that does not impose on voters, on the other hand a desire to lift the taxation burden on business so that it can flourish, create jobs and create more revenue through other forms of taxation.
Another theme which resonates with the federal situation is that the treasurer has also indicated her desire to cut government costs through an efficiency dividend. This is something that her federal counterpart seems reluctant to do, although as Opposition member Ryan Park has suggested, such savings in public service spending have to be balanced against increased spending on consultants.
At the moment NSW is performing well economically, which will help the federal Liberal Party in its quest to be returned to office. Therefore a steady as she goes budget, even if it is at a time when the property boom is winding down, seems appropriate. The absence of nasties, especially in the context of “no debt”, creates a mood of confidence and prevents the fostering of any real grievances amongst the ordinary voter which could express itself in the federal election.
Moreover, the announcement of increased funding for both education and roads, both issues which resonate in Western Sydney, will help the Liberal Party in crucial marginal seats in that area.
The real issue with such a budget relates to those things which are not being discussed a lot. In the longer term NSW, like all the states, faces massive costs, especially areas related to an ageing population and health. As with education, these are things which the state can afford to pay for without assistance from the Commonwealth government.
In this regard, the real issue is how rising health costs will be funded over the next decade. As Stephen Duckett has pointed out neither party at the federal level has proposed “any plan for funding hospital cost growth beyond 2020”.
The federal election campaign has said a lot about spending but there has been little indication how the very real problems facing Australia as it moves close to the third decade of the century will be funded. There is a certain air of unreality that somehow we will, like the British, “muddle through” so that everything will work out. For the moment everything is in a holding position.
One gets a similar feeling about the NSW budget. There is the afterglow of a property boom which has done wonders for government finances. But there are also storm clouds on the horizon. Receipts from stamp duty can only go in one direction. The state is losing a good amount of its GST revenue. In the longer term real problems funding both health and education threaten.
But a state government can only do so much. It remains dependent on Commonwealth money. The real challenges over the next few years will be to re-negotiate the federal compact, a task begun by Tony Abbott, and to find ways of ensuring that health costs can be funded and do not weigh down the public purse.
In the meantime, both the Federal Government and the Government of New South Wales enjoy a bit of an Indian Summer, the calm before the storm. From that perspective one should expect a good showing by the Liberal Party at the coming Federal elections in NSW. The worrying thing is that they might not be doing enough to prepare for the storm.
Gregory Melleuish is associate professor, School of History and Politics, University of Wollongong and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gregory-melleuish-8479" target="_blank">here</a>.
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NSW budget delivers a fat surplus, but mixed bag for Turnbull’s chances

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A major campaign, “Cool Japan”, is underway to promote the nation as a “cultural superpower”. As part of a resurgence of interest in the Edo era (the name for Tokyo between 1603-1868), we want to suggest that “Edo Japan is Cool!”
Today, the Japanese have an insatiable appetite for all things Edo. This goes deeper than the daily long lines outside the Edo-Tokyo Museum or the very popular historical dramas on TV every Sunday evening.
Azby Brown, author of Just Enough: Lessons in Living Green from Traditional Japan, believes current anxieties about the state of the world are driving interest in the Edo experience.
At the beginning of the Edo period, Brown argues, Japan faced ecological collapse from deforestation, erosion and watershed damage. New conservation practices were introduced in response to this crisis and to promote Satoyama landscapes. This brought about a sustainable interaction between nature and humans.
This is supported by Conrad Totman, author of The Green Archipelago. Totman argues that the Edo government (Bakufu) responded to these ecological threats by introducing new technologies. Complemented by a combination of social and cultural value changes, this led to Edo becoming a sustainable city.
What lessons can growing, developing-country cities learn from Edo?
<h2>Edo’s global relevance</h2>
With a population of 38 million, modern Tokyo is 13 million people larger than the world’s second-largest city, Delhi. While Tokyo’s population is predicted to decline slightly, Delhi’s is still growing and the two cities will be the same size in the next 15 years.
In 1721, Edo was also the world’s largest metropolis with a population of around one million. The next-largest city was London with 630,000 people.
London’s growth was limited, in part, because it couldn’t efficiently dispose of sewage. This problem wasn’t solved until the invention of Victorian sewerage pipes. Edo dealt with this problem by collecting and disposing of night soil.
The intensity of Edo’s agriculture gave the city a crucial advantage. Rice farming required smaller plots of land than grain or animal husbandry, so it could be closely woven into the fabric of the city. This, in turn, reduced the effort and cost of transporting night soil.
Agriculture also buffered flooding from typhoons, giving the city a clean and stable water supply. As for food, such was the primacy of urban agriculture, fruit and vegetables were named after the Edo suburbs known for producing them.
The first lesson from Edo was therefore to develop and maintain a unique home-grown technological solution to urban life. 
In addition, efficiency was central to the Edo economy and daily life. Rather than have a bath in each house, co-operative bathing in a sento became an essential place for socialising, while saving on water and firewood for heating. Clothes were maintained and mended, ceramics repaired. Whole industries were built around recycling and resource recovery.
The people of Edo understood the meaning of a zero-waste society well before the term was invented. Edo teaches us the value of looking carefully at planning solutions that are developed in a particular context. It also shows us that, for cities such as Delhi, West is not necessarily best.
<h2>Ethical but not utopian</h2>
The second lesson relates to the ethical framework of the citizens of Edo. Their worldview was informed by an ethic of life and interaction.
Brown suggests that the people of Edo understood the “big picture". They recognised that they needed to run their city, economy and lives within the  limits of the natural world. This is something most people struggle with today.
We live as if we are free to ignore ecological limits and planetary boundaries. For most people today, a life lived within limits easily equates to impoverishment and austerity. This constrains our imagination of what it may be like to live in a constrained economy, as in Edo Japan.
Edo was by no means a utopia. It had a rigid class structure of samurai, peasant farmer, artisan, merchant and untouchables. You were born into your position and could not move between classes. The samurai lived in gated communities and the average merchant or artisanal family lived in cramped conditions with few possessions.
Yet, knowing your place in the community extended out to knowing your place in the city and the natural world. This was a key mechanism to help citizens understand the right thing to do and live an ethical life through codes of honour, loyalty and a sense of duty.
While this might jar with our modern values, it raises the question of what rights, if any, we would be willing to give up. And what responsibilities would we be willing to accept for a truly sustainable future? 
<h2>Edo and the future of Japan</h2>
The third and final lesson derives from a dystopian prediction of our ecological predicament.
One of the most forceful advocates for reassessing Edo is the Japanese author Eisuke Ishikawa. In his 1998 book, 2050 is the Edo Period, he argues that Japan is undergoing a “slow crash”.
The book traces the decline of Japan through the memories of an old man in 2050. Society has declined and aged. The economy has stagnated for decades. In 2050, according to Ishikawa, 99 percent of the population will be living rural lifestyles and the big cities of Tokyo, Nagoya and Osaka are derelict.
In the West, this dystopian Japanese vision of the future is paralleled by James Howard Kunstler’s “long emergency” and his engaging novel, World Made by Hand. Kunstler depicts small-town US after the collapse of the global economy and modern society. It is a world where we have to live with less – no electricity, no running water, no health services, no government and so on.
Interestingly, Kunstler writes about Japan in his blog and comments on the nation’s two-decade economic malaise, as the population shrank and its debt climbed. He suggests that all this is “getting to them [the Japanese] in a deep, major way” and “they perhaps secretly long to get back to something like an older traditional Japanese society” – the Edo era.
It would be impossible for Japan to revert to that time, but we can profit vastly from Edo’s experience. In the words of Azby Brown:
The challenge that faces us now is to redesign our production and our consumption so that they share the virtues of their Edo-period counterparts, to link our sophisticated technical systems to the kind of mentality that those prescient forebears displayed.
As the Japanese government promotes a “soft power” campaign of “Cool Japan”, it should embrace a larger and more nuanced view of Edo’s contribution to human progress.
Brendan Barrett is research fellow, RMIT University and can be contacted <a href="https://theconversation.com/profiles/brendan-barrett-179124" target="_blank">here</a>.
Marco Amati is associate professor of International Planning, Centre for Urban Research, RMIT University and can be contacted <a href="https://theconversation.com/profiles/marco-amati-209638" target="_blank">here</a>.
Both are authors for The Conversation.
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The past offers lessons for surviving in the world's biggest city, Tokyo

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A South Melbourne commercial property leased to burger giant Grill’d has fetched $3.36 million at auction.
The Clarendon St premises sold on a yield of 3.4 percent after bidding from local and international investors.
Grill’d recently signed a new seven-year lease for the shop, with an option of a further seven years.
It was sold by Fitzroys agent Andrew Hewett.
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Grill'd South Melbourne premises sell

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The first property vehicle to float on the Australian Securities Exchange this year, Australian Unity Office Fund saw investors making 6.5 per cent on the float price of $2 a share this week.
The new trust has a $391 million portfolio of eight assets in Sydney, Adelaide, Melbourne, Brisbane and Canberra.
Its share price traded as high as $2.20 in trading on debut on Monday June 20. It was trading at $2.12 on Wednesday, July 22.
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The fund manager raised $155 million in new equity for the former unlisted vehicle through the bankers at UBS, Credit Suisse and National Australia Bank.
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The new Australian Unity trust is forecasting a dividend yield of 7.4 percent. 
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The property portfolio has a 96.5 percent occupancy rate, according to Credit Suisse. 
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The fund is overseen by former Federation Centres non-executive director Peter Day as chairman.
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Australian Unity lists on ASX

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Taxing foreign buyers, rather than any new hand outs to first home buyers was the focus of the NSW State Government budget.
Treasurer Gladys Berejiklian said she wanted to be cautious when dealing with the property market.
The State Government is not tipping any Sydney property market correction, just a likely easing.
The state budget didn't raise or lower property taxes, other than the much anticipated new taxes on foreign investors.
All foreign property investors in NSW will be hit with a 4 percent stamp duty surcharge when buying homes and apartments and face an ongoing extra 0.75 per cent land tax surcharge on their residential property holdings.
Treasurer Gladys Berejiklian said she was confident the extra costs would not deter foreign buyers given other states had similiar measure.
"Economists say it is an inelastic market," she said, when asked if there could be any fallout.
The NSW Treasurer Gladys Berejiklian's second state budget anticipates a slowing in stamp duty revenues from home sales.
But they will still get $8,777 million in the next financial year, then $9,124 million in 2017-2018.
"I don't apologise for be very cautious when it comes to the property market," she said.
Residential transfer duties are tipped to rise at 4.4 percent annually over the next four years, "significantly more subdued than the pace see in recent years."
There was 13.6 percent growth in the current budget year, and a stunning 40 percent growth when the boom was its most robust in 2013.
The NSW State Budget officially revealed an extra $835 million extra stamp duty purchasing revenue will come from foreign buyers over the next four years.
It also expects $166 million is over the next four years from land tax on foreign investors.
NSW land tax revenues are forecast to rise at a faster rate than stamp duty revenues.
Land tax on investors will yield 8.1 percent higher revenue every year for the next four years, taking revenues from $3,136 million this year to $3,761 million in 2019-20..
The housing boom longevity is not being assumed by the NSW Treasury who suggest price growth was "moderating."
Transfer duty represents 29% of state government revenue. Land tax represents 11%.
The budget papers noted there was potential downside risk of a decline in the broader housing market.
On the upside was "the impact of low, and possibly even lower interest rates leading to stronger housing construction and consumer spending," the budget papers advised.  
There was no change to NSW first home buyer grants in the state budget with the January 2016 reduction from $15,000 to $10,000 triggering a smaller govenment outlay.
Just $96 million was spent on the first home new home scheme this year, down on the $115 million in the 2014-15 year. The first home exemptions and concessions are estimated to sit at $88 million next financial year.
"We are doing every thing we can for first home buyers," Berejiklian said.
"The key thing is to continue to focus on supply," she added noting that there had been record levels of 70,000 new homes in the year to April.
"We are spending on infrastructure in local areas conducive to housing." 
She anticipated any glut in apartment numbers would contribute to housing affordability by putting "downward pressure on prices." 
"I appreciate the challenges people go through to get into the market."
She also signalled her concern at the Federal Labor's negative gearing tax policy. 
"Without being over dramatic I am concerned that the election of a Shorten government will jeopardise conditions in NSW," she said.
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Taxing foreign buyers the focus of the NSW State Government budget

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Foreign property investors - individuals and corporations - in NSW will be hit with a 4 percent stamp duty surcharge when buying homes and apartments, the state budget confirmed.
Overseas investors will also cop an extra 0.75 per cent land tax surcharge on residential property.
Treasurer Gladys Berejiklian said she was confident the extra costs would not deter foreign buyers given other states had similiar measure.
NSW land tax revenues from investors are forecast to rise at a faster rate than stamp duty revenues over the next four years.
Land tax on investors will rise 8.1 percent higher revenue every year for the next four years, taking revenues from $3,136 million this year to $3,761 million in 2019-20..
The NSW Treasury suggested price growth was "moderating."
The New South Wales budget was released at midday on Tuesday, with much information pre-released. 
The State Government is not tipping any Sydney property market correction, just a likely easing.
The state budget didn't raise or lower property taxes, other than the previously canvassed new taxes on foreign investors.
 The NSW Treasurer Gladys Berejiklian's second state budget anticipates a slowing in stamp duty revenues from home sales.
They will still get $8,777 million in the next financial year, then $9,124 million in 2017-2018.
Residential transfer duties are tipped to rise at 4.4 percent annually over the next four years, "significantly more subdued than the pace see in recent years."
There was 13.6 percent growth in the current budget year, and a stunning 40 percent growth when the boom was its most robust in 2013.
The NSW State Budget officially revealed an extra $835 million extra stamp duty purchasing revenue will come from foreign buyers over the next four years.
It also expects $166 million is over the next four years from the new land tax on foreign investors.. 
NSW has not adjusted its stamp duty rates for three decades.
Transfer duty represents 29 percent of state government revenue. Land tax represents 11 percent.
The State Government revealed it is on track to deliver a record $3.4 billion surplus this financial year - and a $3.7 million in the next financial year.
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Foreign buyers to cop extra property taxation: NSW state budget 

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GUEST OBSERVER
Advanced economies have essentially been in a low growth, low inflation and low interest rate nexus since 2008. There have been a few oscillations along the way, but the trend has been consistent throughout.
The Australian economy was able to decouple from the “3 lows” for much of that period due to a mining investment boom that left the economy with little spare capacity. As a result, growth, inflation and interest rates were significantly higher in Australia than in the G7 economies. But that has since changed and Australia has transitioned to the low inflation and low interest rate world, says the latest note from CBA Economics.
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.12.07%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.12.07%20AM.png" alt="">
While GDP growth in Australia has been solid, if not spectacular, domestic demand growth has been soft. And while the unemployment rate has trended down recently, it is still stuck above the level associated with full employment.
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.13.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.13.36%20AM.png" alt="">
In other words, there is slack in the Australian economy and this has led to record low wages growth and underlying inflation now running below the RBA’s 2-3 percent pa target band. The RBA has responded by cutting its policy rate to a record low of 1¾ percent. The latest rate cut can be put down to a change in the RBA’s assessment on the outlook for inflation because the Bank significantly downgraded its inflation forecasts in the May Statement on Monetary Policy (SMP). As a result, we expect further rate cuts to come in 2016 as the central bank seeks to further stimulate the economy. We see the RBA cutting to 1¼%.
This note explores the issues around spare capacity, wages and inflation in Australia and the implications for monetary policy.
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.14.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.14.36%20AM.png" alt="">
Spare capacity and the labour market
Labour market outcomes provide key indicators of spare capacity in an economy. In particular, the unemployment and underemployment rates are measures that show how far an economy is operating below its potential.
The unemployment rate that is commensurate with an economy producing around its potential output is generally associated with stable inflation. It is referred to as the ‘non-accelerating inflation rate of unemployment’ (NAIRU). The most recent OECD estimates of the NAIRU in Australia put it at 5.3 percent and Treasury estimates it to be 5.0 percent. Whichever way you slice it, the unemployment rate in Australia has been above the NAIRU for the past three years even though it is low by historic standards.
The underemployment rate, however, remains near its highest level on record. This indicates that the Australian economy is operating below its capacity and an output gap has opened up. This has had implications for wages and inflation.
While the output gap in the US has been closing (and core inflation has lifted a little), the reverse has happened in Australia over the past two years. An output gap has opened up primarily due to the end of the labour-intensive mining investment boom and resultant impact on jobs and domestic demand. GDP growth has been solid over that period, but domestic demand growth has been soft.
Decent GDP growth and weak domestic demand growth is reconciled by the strong contribution to growth from net exports. The big lift in resource export volumes is great for headline GDP growth. But mining production is not labour intensive like mining investment. As such, productivity in the resources sector has lifted, but headcount has fallen.
The underemployment rate tends to fly under the radar, but it’s a very usual measure of labour market slack. It provides a gauge of the proportion of people who are employed people but whose labour is not fully utilised. It is near its highest level on record. The sum of the unemployment rate and the underemployment rate produces the underutilisation rate which is the broadest measure of spare capacity in the labour market – it is high and presently sits above the level hit during the Global Financial Crisis.
The lift in underutilisation is also captured through the step down in average hours worked by full-time workers from late-2011. Average hours worked of full-time workers remains well down on its late-2011 peak.
Implications for wages
The lift in the unemployment rate and associated increase in spare capacity in the labour market has contributed to a slowdown in wages growth (both real and nominal). Since mid-2010, wages growth has eased and is currently running at its lowest annual rate since the 1990s recession.
The decline in wages growth has been broad-based across the private and public sectors, though the public sector slowdown has not been as pronounced. Most industries have experienced a slowdown in wages growth and the Wage Price Index is growing at a flaccid 2.1 percent pa (as at QI 2016).
The picture appears even softer when looking at Average Weekly Earnings (AWEs) which are running at just 1.5 percent pa. The WPI measures changes in wages across a range of industries (just like the CPI picks up price changes for a basket of goods), but it doesn’t pick up compositional changes in the labour market. AWEs, however, do. Growth in AWEs has declined by more than growth in the WPI because of the shift in jobs away from higher paying mining-related jobs towards lower paid services sector jobs.
The slowdown in wages growth due to a lift in spare capacity and increase in the unemployment rate was expected. But the historical relationship between wages growth and the unemployment rate suggests that wages growth has slowed by a lot more than would have usually been expected. We think that there are a few reasons for this. First, a more flexible labour force enables firms’ greater scope to limit wages growth due to slackness in the labour market. It may be that workers are willing to take lower wages growth for job security.
Second, the underutilisation rate has risen by more than the increase in the unemployment rate meaning that the change in the unemployment rate alone is not fully capturing the lift in spare capacity in the labour market. Third, job security fears have risen substantially over the past few years. Employees are less likely to look to negotiate a pay rise while job security fears are elevated. Finally, the terms-of-trade has fallen significantly which means that nominal income growth has supressed across the economy. This has effectively crushed wages growth by more than would have otherwise been the case.
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.15.38%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.15.38%20AM.png" alt="">
Implications for inflation
Headline inflation has slowed considerably in Australia and has been running below the RBA’s target band for the past six consecutive quarters. Underlying inflation has also slowed and the most recent print (QI) showed it was running at just 1.5 percent pa.
The impact of declining wages growth as a result of a lift in spare capacity has put downward pressure on non-tradables (i.e domestic) inflation. At the same time, tradables inflation has slowed primarily because of a big fall in the price of oil. This muted the impact that the lower AUD was expected to have on tradables inflation. The relationship between non-tradables inflation and wages growth is depicted in the chart opposite. As spare capacity in the labour market has lifted, wages growth has slowed and dragged down the rate of domestic inflation with it.
We expect domestic inflation pressures to remain weak primarily because spare capacity in the labour market will keep a lid on wages costs. Wages growth is unlikely to lift until the unemployment rate gets closer to the NAIRU. And we are some way off that. In fact, falling inflation expectations in Australia points to some further weakness in wages growth.
The NAB survey of businesses suggests that there has been a sharp decline in long run inflation expectations. Almost 70 percent of Australian businesses surveyed expect inflation to average less than 3 percent over the long run, more than double the proportion before 2012. Business long run expectations for inflation has been a good predictor for wage inflation and suggests earnings growth may slow further in 2016 (see chart opposite).
There are other forces, too, that are weighing on inflation. Rental growth, for example, has slowed considerably because dwelling supply has lifted, particularly in the apartment space. With further supply to hit the market over the next 18 months, rent inflation should remain weak. So there aren’t any forces on the near term horizon that point to a lift in inflation. Eventually the large fall in oil prices will ‘wash through’ the quarterly data prints. But even so, we expect the pulse of headline and underlying inflation to remain soft.
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.16.53%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.16.53%20AM.png" alt="">
Implications for monetary policy
The degree of spare capacity in the economy is an important consideration for monetary policy because it is the primary driver of domestic inflation. The RBA’s rate cut in May came purely down to the Bank’s concerns about entrenched low inflation and disinflation risks. Growth and labour market trends didn’t signal that more rate cuts were forthcoming. Indeed, falling inflation against an unemployment rate that is trending lower is rare.
The Minutes of the May Board Meeting suggest that the decision to cut rates was a finely balanced one. Specifically, “members discussed the merits of adjusting policy at this meeting or awaiting further information before acting”.
So the 50/50 market pricing going into the meeting was probably right. But the May SMP, published a few days after the rate cut, suggests that further policy easing is coming. The Bank made material downgrades to its inflation forecasts in the SMP, shaving ½ppt off its near term underlying and headline inflation forecasts. The RBA now expects both underlying and headline inflation to be 1-2 percent pa over 2016 (below the Bank’s target band). This points to further rate cuts, in our view.
Since the May interest rate cut a number of prominent economists, policymakers and commentators have come out questioning the RBA’s latest rate cut. Indeed, former RBA Governor Ian Macfarlane stated that, “the inflation targeting approach says that if inflation forecasts are below target, we should run an easy monetary policy – we already have that.
It doesn't say that each time we receive an inflation statistic showing it is below target, we have to cut interest rates." And former RBA Governor Bernie Fraser stated that, “I was a bit surprised by the rate cut on budget day because of the ambiguity that such a move is likely to create in the public mind. I wouldn't myself have been concerned about a short period of under 2 per cent inflation – not in the slightest.”
These comments are interesting food for thought. Indeed, we have our own view on whether the RBA should have eased policy in May. But for us market economists, what primarily matters is calling what the RBA is likely to do next and not what we think they should do. As such, we expect further monetary policy easing and have pencilled in two more rate cuts that would take the cash rate to just 1¼ percent. Current market pricing is indicating a terminal cash rate of 1.42 percent.
As always, the timing of picking rate moves is pretty tough. But we favour August and November as these dates follow CPI updates. In our view, all rate meetings over the near term are “live” and activity data will play a role in shaping market expectations and pricing over coming months.
Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
 
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Why spare capacity is driving wages growth, inflation & rates down: CBA's Gareth Aird 

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Australia’s first commercial office tower made of timber is set for the Barangaroo development.
International House Sydney will be located at the gateway to Barangaroo on Sydney's Sussex Street.
It will be built by Lendlease.
It will be Lendleases’s third building constructed using these materials following Forte timber apartments in Melbourne and The Dock, a public library in Docklands.
The office tower over 7910 square metres has been designed by Tzannes Associates.
“The architecture of International House Sydney reflects a new form of beauty. Beyond shape and surface, it is ‘deep design’ renewing architecture’s role to serve the greater social purpose of lowering carbon emissions,” Alec Tzannes told The Urban Developer website.
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Lendlease propose six storey Barangaroo timber office block

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Opposition Leader Bill Shorten told Q&amp;A viewers that the federal government spends more on negative gearing and capital gains tax discounts than it does on child care or higher education.
Is that right?
<h2>Checking the source</h2>
When asked for sources to support Shorten’s statement, an ALP spokesperson said the Grattan Institute has estimated the cost of the capital gains tax and negative gearing concessions at $11.7 billion per year.
The Treasury’s tax expenditure statement (TES) lists the cost of the capital gains tax discount as $6.15b for 2015-16. The TES does not list the cost of negative gearing, but using Grattan’s total figure and subtracting the value of the capital gains tax discount, this shows that the cost of negative gearing is around $5.5 billion… this cost exceeds the cost of child care assistance or university education as per the budget papers.
You can read the longer response <a href="https://theconversation.com/full-response-from-labor-spokesperson-61201" target="_blank">here</a>.
So, does federal government spending on child care or higher education outstrip the cost of revenue forgone due to negative gearing and capital gains tax (CGT)?
<h2>How much does the government spend on child care subsidies?</h2>
This year’s budget showed the federal government is estimated to spend about $8.2 billion on child care fee assistance in 2016-17. That’s comprised of about $4.2 billion for the child care benefit and about $3.9 billion for the child care rebate.
<a href="/images/2016/06/21/image-20160614-17209-1gramrh.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/image-20160614-17209-1gramrh.png" alt="">
Budget Paper 1, 2016-17 Federal Budget.
Here’s a graph produced by the Parliamentary Budget Office showing how the cost of child care subsidies is projected to change over time.
<a href="/images/2016/06/21/image-20160614-29225-1v45yz.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/image-20160614-29225-1v45yz.png" alt="">
<a class="source" href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Budget_Office/Chart_packs">Parliamentary Budget Office</a>
<div class="enlarge_hint"> </div>
<h2>How much does the government spend on higher education?</h2>
This year’s budget shows that the federal government is estimated to spend about $9.5 billion on higher education in 2016-17, an amount which is fairly stable over the forward estimates period. It is projected to be about $9.4 billion by 2019-20.
<a href="/images/2016/06/21/image-20160615-22416-5uy7q4.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/image-20160615-22416-5uy7q4.png" alt="">
Budget paper 1, 2016-17 federal budget.
Here’s a graph produced by the Parliamentary Budget Office showing how the cost of higher education expenses is projected to change over time.
<a href="/images/2016/06/21/image-20160615-22411-1qzpsjt.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/image-20160615-22411-1qzpsjt.png" alt="">
Parliamentary Budget Office
<h2>How much do negative gearing and capital gains tax concessions cost the government in revenue forgone?</h2>
Capital gains tax: As Labor’s spokesperson says, the Treasury’s 2015 tax expenditure statement (TES) lists the cost of the capital gains tax discount as $6.15 billion for 2015-16.
According to Treasury’s estimates of tax expenditures, the “cost” associated with the capital gains tax discount for individuals and trusts is estimated to be $6.8 billion in 2016-17, rising to $9.09 billion in 2019-20. Note that this estimate does not include any estimate for the concessional treatment of owner-occupied housing.
<a href="/images/2016/06/21/image-20160615-22398-cw74xm.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/image-20160615-22398-cw74xm.png" alt="">
Budget Paper 1, 2016-17 federal budget.
Negative gearing: This is where it gets tricky. Treasury does not regard negative gearing as a “tax expenditure” and thus does not provide any estimates for the “revenue foregone” as a result of it. So we have to look at other sources for estimates.
Labor has inferred from the Grattan Institute’s report that the cost of negative gearing is around $5.5 billion ($11.7 billion minus the $6.15 billion cost of the CGT discount).
Labor did not provide The Conversation with any Parliamentary Budget Office (PBO) estimates on the cost of negative gearing to The Conversation. Labor’s spokesman said only that the PBO estimated Labor’s plan to restrict negative gearing to new property and to halve the capital gains tax discount could raise $565 million over the forward estimates.
The Greens put the cost of negative gearing at somewhere around $4 billion a year.
A 2015 report by The Australia Institute said that modelling by National Centre for Social and Economic Modelling (NATSEM) estimated that:
negative gearing of residential investment property is currently reducing tax revenue by $3.7 billion per year.
Ben Phillips, Associate Professor at the ANU Centre for Social Research and Methods (who previously conducted the NATSEM modelling quoted by The Australia Institute), reported in February 2016 that:
We estimate that in 2017-18 the total tax savings from negatively gearing properties is $4.3 billion.
And I have previously estimated that negative gearing costs more than $5 billion per annum in revenue forgone – although that estimate was for the 2010-11 financial year when interest rates were considerably higher than they are today. It was also a “gross” figure that did not allow for the impact of interest expenses being carried forward to be offset against future capital gains tax liabilities.
So what’s the combined cost of negative gearing and CGT? Nobody knows for sure. It could be as high as $11.7 billion, as the Grattan Institute has <a href="https://grattan.edu.au/report/hot-property/">said</a>. It could also be lower.
<h2>So does CGT and negative gearing cost more than child care or higher education?</h2>
This year’s budget showed the federal government is estimated to spend about $8.2 billion on child care fee assistance and about $9.5 billion on higher education in 2016-17.
Using the estimates outlined above, the combined annual effective cost of negative gearing and capital gains tax discounts to the public purse in revenue foregone is somewhere between about $9 billion and $11.7 billion (although no-one knows for sure because of differing opinions on the cost of negative gearing).
So Shorten’s statement that Australia is “spending more at the Commonwealth level on negative gearing and capital gains tax discounts than we are on child care or higher education” is likely to be somewhere in the ball park – but it’s impossible to say conclusively.
<h2>A word of caution</h2>
It’s worth remembering that none of the major parties are advocating scrapping negative gearing altogether.
And finally, it is worth drawing attention to Treasury’s caution that its estimates of tax expenditures such as the capital gains tax discount assume that taxpayer behaviour is unaffected by the existence of the concessional tax treatment. That assumption that may not be valid in practice, so that these estimates:
do not indicate the revenue gain to the budget if specific tax expenditures were to be abolished…. care needs to be taken when comparing tax expenditures with direct expenditures as they may measure different things.
<h2>Verdict</h2>
Is Australia “spending more at the Commonwealth level on negative gearing and capital gains tax discounts than we are on child care or higher education”?
Nobody knows for sure, because of the difficulty in measuring exactly how much negative gearing tax breaks cost the federal government every year in revenue foregone. (Treasury cautions against comparing tax expenditures with direct expenditures as they may measure different things.)
Using available estimates, however, Bill Shorten’s statement is probably in the ballpark.
<h2>Review</h2>
I agree with this assessment of the statement. There are official estimates on the projected spending on childcare, education and the revenue foregone in relation to the capital gains tax discount, although as Treasury notes these figures may not be directly comparable. It is more difficult to estimate the foregone revenue in relation to negative gearing as there are no official estimates. Each model will come up with a different estimate based on the parameters used for the estimate.
I would also caution that the statement by Bill Shorten should be read in conjunction with proposed ALP policies in these areas. In particular, tax concessions on negative gearing and the CGT discount will be pared back but negative gearing will still be available to taxpayers currently holding investment properties, and the CGT discount will be halved but not removed.
Given the difficulties in identifying the cost of negative gearing and the problems inherent in comparing data measured differently, the statement is within reasonable estimates. – Helen Hodgson
 
Saul Eslake is vice-chancellor’s fellow, University of Tasmania and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">here</a>.
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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What’s the combined cost of negative gearing and CGT? Saul Eslake

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.

Joel Robinson

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

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.

Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for <a href="https://www.apartments.com.au/new-apartments/cove-on-ourimbah-40-56-ourimbah-road-mosman-nsw-2088">Cove on Ourimbah</a>, a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.

The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.

Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.

<img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" />

Doroch Architects said the building had been designed to reinforce Mosman's established character.

"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.

The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.

The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.

The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.

&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a>

&nbsp;

Jonathan Chancellor

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