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GUEST OBSERVER
The bond market, even more so than the stock market, is often a key indicator of investor expectations and the overall health of the economy. 
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Figure 1 below shows the RBA reported bond yields on treasury bonds from 90 day bills to 10 long term bonds. We can see that from March to April this year, long-term yields decreased than short-term ones. 
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%208.10.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%208.10.58%20AM.png" alt="">
This is called “flattening” of the yield curve and is often a sign of lower investor confidence and a bleaker future outlook for the economy. From April to May, the op effect can be observed: while yields for all maturity dates decreased, the yield curve steepene slightly. The drop in short term yields reflects the RBA’s decision at the start of May to cut the cash rate by 25 basis points (0.25 percent).
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So what has happened since the interest rate cut? Figure 2 illustrates snapshots of treasury bonds being traded on the Australian Stock Exchange (ASX) on three separate occasions: one before the interest rate cut (19/04/16) and two after (17/05/16 and 15/06/16). Again, between the April and May snapshots, a similar effect to the above can be observed: short term rates decreased due to the interest rate cut and long term rates decreased slightly less.
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%208.16.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%208.16.12%20AM.png" alt="">
 
However, since the May cut, short term rates have remained at about the same level, while long term rates, especially on bonds with 10+ year maturities, have continued to plummet. The yield on the longest duration bond (maturing in 2039) is down nearly 0.4% over the past month. This means that since April, the steepness of the yield curve has only increased by about 0.1 percent. 
An interest rate cut is designed to stimulate the economy and lift investor confidence. While this boost was achieved in the (very) short term, the threat of Great Britain leaving the EU, uncertainty about China’s future direction and an upcoming Federal Election to name a few have all but eroded the stimulus. 
With the Brexit vote on June 23rd and Australia voting on July 2nd, some of the shakiness may be resolved. However, both events have the potential to further upset economic conditions. If the latter occurs, expect another rate cut before the year is over.
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
 
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jchancellor-FAypfDUnLy

Another rate cut may be due before the year is over: Secret Agent

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Harry Dent, the boldly bearish US economist, is in Sydney this Thursday some two years after last peddling his contrarian forecasts.
His insights alway capture the headlines.
His last seminars advising that Australia’s ‘property bubble’ would burst with a 50 percent price decline actually mimiced his prior forecast from 2011.
The doomsday US commentator sees the world - and most of Australia's multi-dimensional property market - through the prism of his 2011 book, The Great Crash Ahead. There is now a new book to sell.
His 2011 remarks on David Koch’s Sunrise program, saw Dent implore major capital city viewers to sell their homes before the 50% crash in prices arrived on our doorsteps.
Dent’s argument appeared based mostly on the claim that Australian dwelling values were 9.5 times family incomes, and ought in his view, be about half this level. 
Not long after a chart released by the RBA showed the Australian house price-to-income ratio was actually around four or five times, ie half Dent’s claims.
Dent refined the 2011 outlook with his colourful analogy that the Australian property market would be like popcorn popping - different markets would be bursting at different times.
Last time Dent was here I asked him on his hit and miss success rate.
"I am likely to get 30 or 40% of forecasts wrong in the timing," he advised.
Dent says he studies bubbles.
"When everyone is in a bubble, most can't see it, when the markets are at their lows, they can't see the recovery...and that's when there is money to be made," he said.
Harry is the founder and senior editor at Dent Research, where he seeks to identify and study demographic, technological, consumer spending and geopolitical trends to forecast economic booms and busts well ahead of the mainstream.
The forecast he his most proud of was when Dent tipped that Japan, then on top of the economic world, would suffer a slowdown lasting more than a decade.
Japan is still pretty much in a coma, he says after its 1991 peak when most economists envisaged Japan overtaking the US in world economic dominance.
Saying it often can be just one piece of information that provides the clue, his late 1980s Japanese forecast was based on his premise that people slow in spending way ahead of retirement, from 46 years onwards.
I asked how much understanding the pysche of the population of a city or country was helpful in understanding property market movement, and he agreed with the concept.
"You are right, yes markets do go up and down together, but to different degrees."
As with many economist naysayers, Dent may get Sydney right sooner or later, but it is best to take the forecasts with a certain level of cynicism or else cop the cost of lost opportunity.
Afterall Sydney's house price median was at $560,000 and Sydney’s unit median at $458,500 around the time of his 2011 forecast.
By 2014 it was $765,000 for Sydney houses and $550,500 for units.
It now sits at $890,000 for houses and $680,000 for units, according to CoreLogic.
It's not to say Sydney won't be spooked sometime, but for most of us it will be a question of holding one's nerve in the face of the herd mentality.
That's more her-like panic likely to come from investors, rather than home owners.
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<div>This article was first published in the Saturday Daily Telegraph.</div>
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No dent to our market - and we've heard it all before from Harry

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Capital city areas comprise four of the top five regions nationally for investor concentrations, with Darwin topping the list at 42.9 percent of all dwellings owned by investors.
The Gold Coast shows the second highest ranking for investment concentration nationally, with 32.8 percent of dwellings owned by investors.
 Inner capital city apartment markets dominate investor preferences, according to CoreLogic, followed by lifestyle, regional and mining locations.
The only capital city missing from the top 20 list nationally is Hobart (ranked 31 nationally) where investors comprised 18.3 percent of all dwellings.
Across the regional markets, the highest investment concentrations were generally located in the major regional centres associated with either lifestyle factors such as tourism and holiday homes, or locations more aligned with the mining and resources sector.
<a href="/images/2016/06/Screen%20Shot%202016-06-20%20at%209.32.24%20AM.png" target="_blank">Click here to enlarge</a>
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Inner capital city apartment markets dominate investor preference followed by lifestyle, regional and mining locations

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The retail executive Katie Page has listed her contemporary Kingscliff beachfront investment property.
Page bought the Tweed Coast block in 2004 for $775,000.
<a href="https://www.realestate.com.au/property-house-nsw-kingscliff-122670806" target="_blank">Designed by multi-award winner Virginia Kerridge</a>, the five bedroom home was built shortly after its purchase with around 420 sqm living space.
It has a $3.35 million asking price.
Set on a 647 sqm parcel, there's a private entertaining area with large covered natural timber deck and 12 metre lap pool.
The North Point Avenue kitchen boasts marble and stainless steel kitchen benches, Italian cupboards, and European appliances. 
According to the agent, Sandra Ross at North Estate Agents Tweed Head suggested the "sculptural house screams design and class."
The compressed fibre cement cladding, the stone walls and the timber highlighted the best in quality design, she added.
There have been sales on the North Point strip of up to $5.2 million.
This article was first published in the Sunday Telegraph.
 
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Katie Page lists Kingscliff beachfront

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Glenn Stevens’ ten year stewardship of the Reserve Bank of Australia has been characterised by remarkable challenges. Yet, if the Australian economy has shown considerable resilience over this troubled decade, particularly during the global financial crisis, part of the credit certainly goes to the RBA.
When Stevens' deputy, Philip Lowe succeeds him in September, he will need to continue to shepherd Australian prosperity through the challenges of global deflation and faltering global economic growth.
What direction will he take with the country’s monetary policy?
Glenn Stevens’ Legacy
Under Stevens, inflation has remained relatively stable and predictable, which is the main target for a central bank like the RBA. The repercussions of the financial crisis in North America and Europe have been mostly avoided thanks to the solidity of the Australian financial system, which is also a key responsibility of the RBA.
Sure enough, the exchange rate has experienced some wide fluctuations. But in an economy where the central bank targets inflation and there is no external anchor, these fluctuations are inevitable. In fact, the flexibility of the exchange regime has been another important factor driving Australia’s resilience.
Finally, the RBA has maintained its strong reputation and credibility both domestically and internationally; and in the current context where central banks in many industrial countries are blamed for poor macroeconomic management (well beyond their actual faults), this is no little achievement.
A solid background
A graduate from the University of New South Wales, Lowe holds a PhD from the Massachusetts Institute of Technology. He began his career with the RBA in 1980 and, until 1997, occupying a various positions in the International Department and Economic Group, before becoming Head of the Economic Research Department in 1997-98 and then the Financial Stability Department in 1999-2000.
In 2000-02 he was Head of Financial Institutions and Infrastructure Division at the Bank for International Settlements. After returning to the RBA, he headed the Domestic Markets and Economic Analysis Departments.
In 2004 he was appointed Assistant Governor (Financial System), then Assistant Governor (Economic) from 2009 until 2012, when he assumed his current position as Deputy Governor. This already impressive curriculum is enriched by several academic publications.
Lowe’s on monetary policy and financial stability
The RBA operates with an inflation target; that is, its objective is to use monetary policy to stabilise inflation at around 2%-3% on average over the business cycle. The pursuit of the inflation target requires the RBA to respond to demand pressures that can eventually lead to undesirable fluctuations in inflation and consumer prices.
In a low inflation environment such as Australia, these demand pressures can manifest themselves in rapid credit and asset prices growth, which in turn trigger episodes of financial instability.
In some of his <a href="https://papers.ssrn.com/sol3/Papers.cfm?abstract_id=846305">academic work</a>, Lowe has documented these links, showing that inflationary pressures are likely to become evident in asset prices before they show up in goods and services prices.
Taken to the operational level, this means that the emergence of an asset-price bubble calls for a deflationary intervention of the RBA before the further enlargement of the bubble threatens financial and monetary stability.
We can therefore expect Lowe’s RBA to be watching credit and asset markets closely and be prepared to respond to fluctuations on such markets as a way to prevent a more general increase in consumer prices. To use an economist’s jargon, credit and asset markets become part of the monetary policy reaction function of the RBA.
But even under an inflation target regime, monetary policy should concern itself with the cycles of the “real” economy (that is, cycles of gross domestic product and employment). Provided that the inflation target is not compromised, monetary policy should be adjusted to stabilise cyclical changes in production and labour market conditions.
In fact, the RBA has never been the type of excessively hard-nosed central bank that exclusively pays attention to monetary stability. Even recently, monetary policy has been significantly accommodating, meaning that interest rates have been kept low as a way to support the cyclical recovery of the Australian economy.
This approach to monetary policy is very likely to continue under Lowe. For instance, in a recent address to Urban Development Institute of Australia (UDIA), he indicated that “[this] low inflation outlook provides scope for easier monetary policy should that be appropriate in supporting demand growth in the economy.”
In this regard, the challenge for him will be twofold. For one thing, as interest rates continue to decline, the effectiveness of further interest rate cuts in stimulating the real economy is likely to weaken. For another, a debt-obsessed government might end up relying too much on monetary policy and too little on fiscal policy to stimulate the economy.
This would then place the RBA in a difficult position, with Lowe having to protect the independence and autonomy of his institution.
Lowe’s on the long term prosperity of Australia
What else can monetary policy do for Australians? Someone might be tempted to argue that monetary policy should deliver long-term growth and prosperity.
In a sense, any public policy should aim at the greater good of the community. Monetary policy does that by delivering stable financial and monetary environment and by helping the economy to recover from short-term cyclical fluctuations.
But beyond that, prosperity becomes a matter of long term productivity growth and innovation, which in turn call for actions that fall largely outside the realm of monetary policy.
Sustaining productivity requires reforms to enhance competition, investment in transport infrastructure and in high quality education. Similarly, innovation stems from interventions that specifically support new entrepreneurial activities while preventing the distortions of old-school import substitution policies.
Active labour market policies are required to support the process of structural transformation of the economy and to guarantee that workers can relocate from declining to emerging sectors.
The RBA, or any central bank for that matter, is not meant to provide all that. In fact, expecting the RBA to do all (or even only some) of the above would tantamount to compromising its fundamental functions, throwing the Australian economy towards an era of financial and monetary instability and low economic growth.
In his October address to the CFA’s Australia Investment Conference, Lowe explicitly acknowledged that, ultimately, the rate at which living standards improve is unlikely to be driven by the actions of the central bank.
The hope is that the government will listen to him and take responsibility for bringing the Australian economy into a new era of prosperity.
 
Fabrizio Carpigani is professor, Griffith Business School, and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/fabrizio-carmignani-4375" target="_blank">here</a>.
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What sort of RBA governor will Philip Lowe be?

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Toorak's $24 million plus record setting, snappy sale by the wealthy Smorgon family to Chinese buyers might have captured the headlines last week, but just 50 kms away sits the nation's cheapest property opportunity.
Melton South secured the lowest auction result when $235,000 was paid for a three bedroom house.
The sale price of <a href="https://www.realestate.com.au/property-house-vic-melton+south-122601670" target="_blank">63 Station Road</a> (above)  through Raine &amp; Horne was at less than a third of the weekend Melbourne house median.
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<div class="x_domain-article-share-link x_domain-article-share-tw">Even Sydney investors have the affordable Melbourne locality on their purchasing radar, the Domain real estate suggested at the weekend.  </div>
<div class="x_domain-article-share-link x_domain-article-share-tw"> </div>
<div class="x_domain-article-share-link x_domain-article-share-tw">But the vacated property was picked up by a local home buyer, Raine &amp; Horne Melton agent Kieran Carson advised.</div>
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<div class="x_domain-article-share-link x_domain-article-share-tw">He said his four bidders were split between two home buyers and two investors seeking the three bedroom brick house with central bathroom that last sold at $72,000 in 1999.
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<div class="x_domain-article-share-link x_domain-article-share-tw">A recent study has shown around 80 percent of the Victoria’s investors do their investing locally.</div>
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The study showed Queensland was the next favoured investment location, but a long way behind as just 12 percent of Victorian investors own property in the sunshine state.
Victorian investors steer clear of pricey NSW accounting for just 3.3 percent, according to the Terri Scheer Insurance survey.
But there's no stopping the Sydney supremacy when it comes to auction sales success during 2016.
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Auction volumes bounced higher across the country from the long weekend dip, but Sydney was the only capital city to record a clearance rate above 70 percent.
With prices ranging between $400,000 and $3.42 million, Sydney vendors secured the sale of 74 percent of stock. There was a $1.3 million median house price and an $857,000 apartment median.
The nearest rival was Melbourne's 68 percent success rate with its houses recording an $875,000 median and units at a $545,000 median.
The national clearance rate was 67 per cent from the 2,139 capital city auctions, up from the 65 percent with the 1,100 listings in the prior week.
This time last year the volume was 2,268 and the clearance rate was 77 per cent.
CoreLogic's Kevin Brogan noted the trend in auction clearance rates had "nudged lower" over the last few weeks.
Some 964 Melbourne auctions have been reported, showing a preliminary clearance rate of 68 per cent, an improvement from last week when 64 per cent of the 341 auctions sold.
"Although Melbourne’s clearance rate remains under 70 per cent for the second week in a row, the increase this week signifies Melbourne’s auction market is close to reverting back to the levels seen prior to the slow down over the Queen’s birthday weekend," Kevin Brogan said.
At the same time last year, Melbourne’s clearance rate was 79 percent.
The Inner sub-region was the busiest for auctions across Melbourne with 202 homes going under the hammer.
Sydney’s preliminary auction clearance rate was 74 per cent this week, virtually matching 74 per cent last week.
"This week’s result is significantly lower than one year ago at 82 per cent, however the city continues to maintain a much higher clearance rate than what was seen towards the end of 2015.
Of Sydney's sub-regions, the best performers were the Ryde sub-region at 88 per cent and North Sydney and Hornsby at 85 per cent.
But the priciest sale was $3.42 million on the upper North Shore at Pymble followed by a Chiswick riverfront at $3.25 million.
Lantern Hill, a five bedroom 1940s home with pool and tennis court on 2675 sqm at <a href="https://www.realestate.com.au/property-house-nsw-pymble-122628282" target="_blank">8 Macquarie Road, Pymble</a> (below) was sold pre-auction through McGrath at $3.42 million.
<img src="/images/2016/06/17/Screen%20Shot%202016-06-19%20at%207.27.34%20PM.png" alt="">
It last sold at $2.58 million in 2013.
It was marketed as French Riviera style.
The $3.25 million Chiswick knockdown house was three bedroom original home on a 644 sqm holding at 8 Fortescue Street.
<img src="/images/2016/06/17/Screen%20Shot%202016-06-19%20at%207.39.19%20PM.png" alt="">
It was the street's eighth sale above $3 million in the past six years, including a $4.9 million sale just two week's ago of a contemporary home.
Domain senior economist Dr Andrew Wilson noted the busiest Sydney suburb with 11 auctions was Strathfield, including the recently built <a href="https://www.realestate.com.au/property-house-nsw-strathfield-122699174" target="_blank">27 Myrna Road</a>, (below) with 325 sqm internal space, which was passed in at $3.4 million.
<img src="/images/2016/06/17/Screen%20Shot%202016-06-19%20at%207.40.21%20PM.png" alt="">
Toorak secured the country's highest auction price when <a href="https://www.realestate.com.au/property-house-vic-toorak-122758286" target="_blank">16 Chastleton Ave</a> sold at $5.02 million.
<img src="/images/2016/06/17/Screen%20Shot%202016-06-19%20at%207.41.32%20PM.png" alt="">
It last sold at $1.05 million in 1998.
Kay &amp; Burton secured the likely 1950s knockdown price for the three bedroom house on 688 sqm.
The $24 million mid-week sale of the Smorgon's property secured the newly built seven-bedroom home on 1770 sqm at 4 Robertson Street was for the buyer, Shirley Ching Hua Hsieh.
The undisclosed Toorak price failed to better the Victorian record of $26 million at Portsea. 
With record June Saturday auction volumes for Melbourne, Glen Waverley had the most auctions in Melbourne with 21 scheduled including the modern home at <a href="https://www.realestate.com.au/property-house-vic-glen+waverley-122642014" target="_blank">6 Darri Court</a>, (below) which was passed in at $2.525 million.
<img src="/images/2016/06/17/Screen%20Shot%202016-06-19%20at%207.26.07%20PM.png" alt="">
The 785 sqm block had cost $1 million in 2014.
Brisbane's clearance rate dipped to 44 per cent, down from 46.3 per cent last week.
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Sales included a Norman Park <a href="https://www.realestate.com.au/property-house-qld-norman+park-122730438" target="_blank">1930s workers’ cottage</a> in Brisbane’s east (below), marketed as listed for the first time, and fetching $669,000.
<img src="/images/2016/06/17/Screen%20Shot%202016-06-19%20at%207.24.42%20PM.png" alt="">
The deceased estate at 39 Frank St, Norman Park attracted nine registered bidders.  
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Adelaide sat at 67 percent cleared, down from 75 percent last week.
Perth's clearance rate was 34 percent, compared to 28.6 percent last week.
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Home buyer beats interstate investor invasion in Melbourne's most affordable Melton 

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<div style="text-align: left;" align="center">GUEST OBSERVER</div>
<div style="text-align: left;" align="center"> </div>
<div style="text-align: left;" align="center">Following some of the most damaging weather Australia’s east coast has ever seen, the Victorian State Government is being urged to consider reforms which would see maintenance funds be made mandatory for owners corporation communities. </div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Maintenance funds help communities pay for emergency repairs whilst waiting for insurance claims to be processed; but without them, the wait can be perilous. </div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Thousands of apartment and unit communities were hit hard by recent weather, and with no laws in place to ensure that emergency maintenance funds are collected; many will struggle to cope with the fallout now and in the future. </div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">We’re very concerned that Victorian owners corporation communities aren’t in a position to financially deal with the unpredictable nature of Australian weather.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">We understand 20,000 claims have been lodged since the wild weather hit, and with the knowledge that many won’t be covered, the number of affected owners unable to afford repairs could very well reach into the thousands.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">If reports of insurers not covering recent damage, under an “act of the sea” clause are correct, it really shines a light on the need for maintenance funds to be behind each community. </div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Living in Australia often means being exposed to wild weather events and communities need to go a step further than simply relying on their insurance policy to save the day.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Insurers commonly do not cover ‘acts of the sea’ so repairs following the raging waters that have ripped coastline communities apart will likely need to be funded in other ways.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Aside from the funds themselves however, the wait for claims to be processed amid major events like the ones just seen can hurt just as much, so having access to funds immediately is pretty crucial.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Beyond weather from above, bushfires are a year-in year-out threat to Victorian owners corporation communities and communities need to be held accountable on their financial preparedness as soon as possible. </div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">It won’t be long until we’re discussing the devastating effect of bushfires on owners throughout the state and we’ve got a scheduled rollout for the State Government to consider in making these funds mandatory.</div>
<div style="text-align: left;"> </div>
<ul style="text-align: left;">
<li>By end of year 1, owners corporations with greater than 50 lots must implement a maintenance plan and set up the collection of funds. </li>
<li>By end of year 2, for owners corporations with 10-50 lots must implement a maintenance plan and set up the collection of funds. </li>
<li>By end of year 3, remaining owners corporations with 10 lots or less must implement a maintenance plan and set up the collection of funds. </li>
</ul>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Under this plan, the 1.5 million Victorians living in strata will in 3 years be able to consider minor hiccups following major weather events as a worst case scenario and we’re encouraging the State Government to consider the value of that.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">In place of any progress on the legislative front, Mr Beck is urging Victorian owners corporation residents to raise their voice and speak to a professional owners corporation manager to get clarification on how their community should best go about setting up funds. </div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Owners corporation communities don’t have to wait for the regulatory say so to set up maintenance funds, they can start financing their future needs today.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">The ugly truth is that there’s no guarantee there won’t be a major event this weekend that creates more chaos, so we hope State Government decision makers and owners corporation communities alike move quickly to see this issue overcome.</div>
<div style="text-align: left;"> </div>
<div style="text-align: left;">Rob Beck is general manager, Strata Community Australia (Vic) and can be contacted <a href="https://www.vic.stratacommunity.org.au" target="_blank">here</a>.</div>
 
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Strata maintenance funds need advance planning given weathering impacts: Rob Beck 

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Property Council of Australia, a lobby group representing the biggest real estate developers, has shaped election debate about negative gearing and some taxes. 
We see their spokespeople quoted in the papers and their ads on TV, but beyond that we know very little about how Australia’s lobby groups get what they want. This series shines a light on the strategies, political alignment and policy platforms of eight lobby groups that can influence this election.
Housing affordability and tax reform have shaped up to be two of the defining issues this election. The Property Council of Australia – which describes itself as “the Voice of Leadership” – has helped frame the debate on behalf of its 2200 company members.
The council began as the Building Owners and Managers’ Association of Australia (BOMA) in 1969, and was renamed the Property Council of Australia in 1996, with advocacy a core focus. The Residential Development Council and International and Capital Markets division were formed in 2001 and the Retirement Living Council in 2015.
With a board of directors drawn from Australia’s largest residential and commercial developers, the Property Council’s considerable annual revenue (A$27.3 million in 2015) is drawn primarily from membership fees and services.
<img src="/images/2016/06/17/image-20160616-19904-eyhn6q.png" alt="">
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The financial stakes are high when it comes to lobbying for regulatory settings which favour property development and investment. The Property Council’s healthy budget for advocacy and communication ($6.4 million and $1 million in 2015 alone) has generated a voluminous amount of reports, advertising campaigns and government submissions on taxation and planning reform. Another $7.2 million for “networking” ensures that this information is disseminated where it counts.
These deep coffers have funded the Council’s high profile television campaign to preserve negative gearing and capital gains tax discounts in response to mooted changes early this year. Likening the housing market to a fragile house of cards on the brink of collapse, the ad (released on 22 February) carried a menacing warning, “don’t play with property.”
The government has got the message. The Treasurer, Scott Morrison, who served as National Policy and Research Manager for the Council between 1989-1995 ruled out changes to negative gearing in the lead up to the 2016 Budget. Despite speaking out against negative gearing prior to becoming Prime Minister, Malcom Turnbull also changed his tune recently, rejecting  “reckless” changes to existing arrangements and suggesting that aspiring home buyers hit up their parents for help.
While the campaign to retain negative gearing is the Property Council’s most visible, behind the scenes the council has been busy meeting with government and writing submissions. In 2015 alone, the NSW division wrote 55 submissions and attended an extraordinary 230 government meetings. Its 2016 election brochure presents a number of “solutions” to “grow the economy through property”. Here are some highlights.
<h2>Negative gearing and the CGT</h2>
The council wants to retain negative gearing (which allow interest rates and other expenses associated with housing investment to be offset against total income) and capital gains tax discounts on investment properties. This is despite substantial evidence that these bonuses stimulate demand for housing, pushing up prices and leaving first home buyers unable to compete. But by framing housing affordability problems as a symptom of supply side pressures rather than demand side incentives, the council shifts the affordability debate to planning reform.
<h2>Housing and planning reform</h2>
Current incentives for property investment (such as negative gearing) don’t target new housing supply - only a small proportion of investor loans finance new dwellings. So the Council argues that Commonwealth payments to the states for “micro economic reform” should incentivise planning system changes needed to “turbocharge housing supply pipelines and deliver innovative affordable housing solutions.”
This is a tired argument which ignores the years of planning reform already undertaken by the states and territories, while levels of new housing production are currently at their highest in decades. This supply has done little to dampen price inflation in a market awash with domestic and foreign investors.
While the Property Council always bangs on about bottlenecks in housing supply (which it argues are caused by planning system constraints), such arguments miss the obvious issue that prices are a result of an interaction of supply and demand. What the combination of negative gearing and capital gains tax do is to drive demand so hard in boom times that even with sharp increases in supply, prices keep on rising, especially in today’s low interest environment.
The chart below shows this problem with respect to Sydney. It shows dwelling completions falling slowly when prices flatlined after the 1996-2004 boom, but rising in line with price inflation from mid 2011 on.
<a href="/images/2016/06/17/image-20160616-19949-lktfvl.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/17/image-20160616-19949-lktfvl.jpg" alt="">
</div>
<div class="content" data-raw="">
Prices: Department of Family and Community Services, Rent and Sales Report. Source: Completions. NSW Department of Planning, CC BY-SA
The Council’s election platform does call for institutional investment in affordable and social housing, and this is one idea worth taking up.
<h2>Cities and Infrastructure</h2>
The Property Council support long term infrastructure planning and delivery, coordinated by Infrastructure Australia. Who doesn’t?
But the problem is how to assign the costs and benefits. Land value rises due to investments in public infrastructure – such as a new rail line or road – are typically pocketed by landowners and developers.
Commonwealth and state governments are now canvassing value capture arrangements which would use some of this uplift to offset costs of provision. The council oppose this model, instead suggesting Tax Increment Financing (TIF), which leverages increases to commercial rates in defined districts.
While popular in some parts of the US, it has not been proven effective for larger schemes. It would be difficult to implement in Australia because our recurrent property charges are much lower than the US.
The Property Council also wants existing development contributions towards basic facilities like open space, local roads, and footpaths to be wound back, along with stamp duties on property transactions.
The idea of removing stamp duty has some merit (at least for domestic purchasers), since taxes on property transactions can discourage mobility, deterring retirees from moving to a smaller home, for example. But experts think stamp duty should be replaced by land taxes, to encourage more efficient use of land.
This would also provide a mechanism for capturing back values arising from public infrastructure investment. Not surprisingly, the Property Council thinks otherwise, calling instead for a higher GST.
While the Property Council complains about unfair tax burdens on its members, they seem content to spend a lot of money on their advocacy and networking activities. Described by economists as “premium seeking expenditure”, lobbying for more generous regulatory and financial settings clearly promises a high return for the property sector.
But it’s important to remember that despite their size, the Property Council only represents a portion of the development, construction, and real estate industry - they don’t really cover many smaller suburban developers or house builders.
The question is whether the “Voice of Leadership” will dominate the agenda or whether wider perspectives on housing and cities will be heard.
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<div class="profile-occupation grid-eight grid-prepend-three"> </div>
<div class="profile-occupation grid-eight grid-prepend-three">Nicole Gurran is professor - urban and regional planning, University of Sydney and can be contacted <a href="https://theconversation.com/profiles/nicole-gurran-759" target="_blank">here</a>.</div>
</div>
</div>
Peter Phibbs is chair of urban planning and policy, University of Sydney and can be contacted <a href="https://theconversation.com/profiles/peter-phibbs-27130" target="_blank">here</a>.
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How the Property Council is shaping debate around negative gearing

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Light globes that change colour with the tap of an app, coffee machines you can talk to, and ovens that know exactly how long to cook your food: our homes are getting smart. These devices, just a few examples of what is known as “the internet of things” (or IOT), have been called the “next great disruptor” and “the second digital revolution”.
One of the great hopes of this revolution is that it will help households save energy. Sensors can turn off lights and appliances when not in use, or turn the heating down when people go to bed. Smartphone apps can provide households with more insight into the energy use of their appliances.
While estimates vary widely, industry proponents suggest that emerging connected home technologies could help households reduce their energy bills by 10-25 percent. Such claims are largely speculative given the absence of robust “before and after” research.
Social research from Australia and the UK is revealing ways in which IOT might also increase energy demand. We have identified three “hidden” energy impacts which are rarely considered in IOT research or energy-saving predictions.
<h2>New updates and hardware</h2>
Estimates of the true energy and data costs of IOT are currently vague. In part, this is due to the variety of possible impacts within the home, within distributed information infrastructures, and in the production, transportation and disposal of goods.
For example, one estimate suggests that the data servers required to power the internet already produce as much greenhouse gas as the airline industry (around 2% of global emissions). Some predict that server electricity use will treble in the next decade.
While IOT is still a relatively small (and largely unknown) part of this growth, its share is likely to increase substantially in coming years.
As with smartphones and other computers, updates for connected devices add to growing data traffic and hence energy consumption by data centres and transmission networks.
There may also be more energy demand from the increasing need for data centres, control rooms and home networks located within people’s homes (as observed in some of our research). This hard infrastructure takes up space, runs on energy and may require air-conditioned cooling or heating to keep it operating normally.
The rapid emergence of new software for household appliances such as fridges and washing machines may encourage more frequent upgrading of these devices – as seen with televisions and computers over recent years.
Given that it also takes energy to make appliances, discarding and upgrading devices that aren’t smart enough would undermine policies intended to reduce electronic waste (e-waste) and reduce embedded energy.
<h2>New needs</h2>
Like the industrial revolution of the home, which raised cleanliness expectations and resulted in more energy and water consumption overall, devices like smart thermostats might also raise expectations for comfort, particularly if air-conditioned heating and cooling is used more often and in more rooms.
For example, home automation company Lutron promotes the creation of “pleasance” - a seductive concept promising the perfect combination of luxury, relaxation, pleasure and comfort - all enabled by smart tech.
This vision permeates a range of ambience and aesthetic connected technologies, such as mood and scene lighting, automated water fountains, smart toilets and whole-house audio-visual systems.
By themselves, such features may be relatively low-power. But they add to existing services and are likely to require a degree of always-networked, always-ready standby power consumption.
In one recent estimate, connected devices were forecast to grow globally from 10 billion in 2014 to between 30 billion and 50 billion by 2020. With potentially billions of networked devices in the not-too-distant future, globally these impacts could be considerable.
With more devices at our fingertips, we are also using them more often. Instead of watching only one television, multiple family members can use their tablets and smartphones at the same time. Even though each individual device might be super efficient and battery-powered, it may add up to more energy demand overall.
Even devices marketed to save energy might increase it. For example, some smart apps allow householders to switch their heating or cooling off remotely when they forget.
However, they also provide new opportunities to turn it on remotely. As one article suggests: “if you want the aircon roaring before you come home … use the app to turn it on before you get home”.
Having more connected devices can also create more complexity. This is opening up markets for new devices that integrate and consolidate technologies across the home.
For example, virtual helpers like Amazon’s Echo (Alexa) and the Google Home Assistant can do everything from turning on your lights to playing your favourite music. These devices are new additions for most homes, consuming small amounts of energy in their own right, but adding to the energy demands of distant data servers.
<h2>New services</h2>
New services are also emerging, such as smart versions of mattresses and fridges that monitor health and assist with sleep, diet and medication patterns.
The security industry is also rapidly evolving to provide surveillance features which allow constant home monitoring from a distance and enable lights and appliances to be switched on to deter burglars. Devices also provide live-stream video sent to smartphones and tablets so householders can check on the activities of their children and pets.
All these devices involve various forms of energy demand, which includes powering the devices themselves. They also transmit data over the internet and make greater use of streamed media content; another key component of the growing energy used by the internet.
That does not mean that IOT has nothing to offer: the devices we have described above arguably have many benefits.
But we do need to pay more attention to these hidden impacts as governments and households embrace these technologies for their promoted energy-saving benefits.
Yolanda Strengers is senior research fellow, Centre for Urban Research, RMIT University and can be contacted <a href="https://theconversation.com/profiles/yolande-strengers-15350" target="_blank">here</a>.
Janine Morley is senior research associate, DEMAND Centre, Lancaster University and can be contacted <a href="https://theconversation.com/profiles/janine-morley-148596" target="_blank">here</a>.
Larissa Nicholls is research fellow, RMIT University and can be contacted <a href="https://theconversation.com/profiles/larissa-nicholls-109087" target="_blank">here</a>.
Mike Hazas is senior lecturer in Human-Computer Interaction, Lancaster University and can be contacted <a href="https://theconversation.com/profiles/mike-hazas-152520" target="_blank">here</a>.
All are authors for The Conversation.
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The hidden energy cost of smart homes

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The Central Coast holiday home of convicted former NSW detective Roger Rogerson has been sold to pay his lawyers' fees for his recent murder trial.
Last month's $555,000 sale of the basic single level 1950s cottage was at Long Jetty.
Located 100 km north of Sydney, it was sold to a self managed superannuation fund investor who <a href="https://bateaubay.ljhooker.com.au/597H3X/8-thelma-street-long-jetty" target="_blank">now seeks $420 a week rental</a>.
It was just the one bedroom cottage with combustion fireplace and sunroom, located a few hundred metres to Toowoon Bay.
It was sold pre-auction through LJ Hooker agent Mitch Clifton who marketed it as a cute 1950's single level beach cottage situated on large lot, "perfect to renovate, invest, or make way to build a dream home, duplex or townhouses."
Set behind a picket fence, the house last traded at $51,000 in 1984.
The 660 sq m Thelma Street holding was retained by Roger following his 1992 divorce from his first wife, Joy.
Rogerson still co-owns the Padstow home he bought with his second wife, Anne in 1998 for $346,500.
Duncan McNabb's 2006 book, The Dodger: inside the world of Roger Rogerson noted both his homes were wired by listening devices by the authorities, ICAC and the Police Integrity Commission in their pursuit of Rogerson's earlier misdemeanours.
One of McNabb's chapters was prophetically titled: He's a great detective, but a lousy criminal.
The Telegraph crime report Mark Morri wrote that Rogerson spent nearly $1 million on his murder trial defence forcing him to sell his "beloved holiday house" at Long Jetty.
It was suggested Rogerson executed drug trafficing student Jamie Gao for a Triad crime syndicate because they believed the 20-year-old was an informant, with Rogerson and his co-accused Glenn McNamara allegedly allowed to keep the drugs.
Rogerson is awaiting sentence and McNamara has indicated he will lodge an appeal.
This article was first published in the Sunday Telegraph.
 
 
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Convicted former NSW detective Roger Rogerson sells Long Jetty holiday home

The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.

Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.

The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;

The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;

LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;

Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;

Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;

At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;

“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.

"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.

“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;

Fast Facts: What is Resilience LDI?&nbsp;

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

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

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

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

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

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

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

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

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

Jonathan Chancellor

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