<html><body>
Belconnen’s Wayfarer development is 90 percent sold, with a mix of one, two and three-bedroom apartments still available.
One-bedroom units range from $332,900 to $418,900, two-bedroom are priced from $452,400 to $622,400 and three-bedrooms are priced from $503,900 to $701,400.
Completion is expected before the end of the year on the 27-storey building.
<img src="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%2011.52.57%20AM.png" alt="">
The Wayfarer apartment kitchens were designed by renowned chef Tetsuya Wakuda who was engaged by Geocon managing director Nick Georgalis.
The complex was designed by Cox Architecture, with the top two levels of the 88-metre tall building including an infinity pool.
<img src="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%2011.53.13%20AM.png" alt="">
Level 25 will feature a sky lounge entertaining area with 360-degree views across Canberra.
For more information, <a href="https://geocon.com.au/project/wayfarer-apartments/" target="_blank">click here</a>.
</body></html>

jchancellor-FAypfDUnLy

Belconnen's Wayfarer is 90 percent sold with Tetsua designed kitchens

<html><body>
GUEST OBSERVER
A new report by JLL says it is time to review pre - Global Financial Crisis yardsticks to judge future investment performance for commercial real estate.  Instead, investors need to look more broadly at the long-term structural changes to the market that have been underway, behind the scenes.
And don’t wait for ‘normal’ market conditions to return, as traditional real estate benchmarks may not be reliable indicators in the future.  Some metrics, such as workspace ratios and retail turnover ratios, may no longer even be relevant in the shifting world of workplace mobility and IT connectivity.
The Report - ‘Real Estate Conundrums - Just another cycle – or a whole new ball game?’ was presented at a JLL Research event in Sydney.
Technology and urbanisation have been gathering pace for decades.  But while the cyclical nature of real estate has not been abolished, investors in real estate face a range of conundrums relating to yields, cross border investment, technology and urbanisation that can have long-term impacts for commercial real estate.
<a href="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.26.15%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.26.15%20AM.png" alt="">
The GFC has been a convenient scapegoat for the breakdown in previously trusted rules of thumb when investing in commercial real estate.  While for some the benchmarks of the years 2007-2008 do seem to mark a clear break from the patterns of the past, many trends have been evident for far longer than that.  Not everything is a GFC-driven event. For instance, real and nominal interest rates have been declining for 30 years.
The challenge for investors right now is that numerous structural and cyclical shifts are emerging, converging and interacting with each other.
Structural shifts for Australian commercial real estate:
<ul>
<li>Real estate markets are globalising – tenants, investors, developers</li>
<li>
Yields: Low growth, low inflation, low yields are also here to stay</li>
<li>
Cross Border Investment: Offshore capital is here to stay</li>
<li>Fundamental mismatch between capital and available assets</li>
</ul>
Market cycles have not been abolished:
<ul>
<li>Yields will cycle around lower benchmark levels</li>
<li>
Demography a key driver of all real estate asset classes</li>
<li>Financial markets move faster than physical markets</li>
<li>Don’t wait for ‘normal’ conditions to return</li>
</ul>
Structural Shifts – Yields and Cross Border Investment:
Implicit in JLL Research forecasts is a downward structural shift in interest rates and real estate yields – in other words, the ‘lower for longer’ theory is correct.  This does not mean that cycles have been abolished.  But average yields are likely to be lower than in the past.
<a href="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.28.57%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/16/Screen%20Shot%202016-06-16%20at%208.28.57%20AM.png" alt="">
Supported by growth in global pools of capital and a search for yield, JLL calculates that global cross border investment will continue to grow over the medium term.  In Australia, cross border investors accounted for 42 percent of all commercial property transactions in 2015.
While the impact of technology has been massive, the impact on real estate has been less than was anticipated 20 years ago; CBD’s remain magnets for office and retail tenants, despite rising travel and congestion costs, and inner-city residential demand (which was not foreseen) has increased substantially.
Perhaps though the falling cost of technology, the advent of wireless capabilities, combined with the rising cost and scarcity of skilled labour and rising wages (that puts a premium on commuting travel times) will now lead to a more substantial impact on real estate investment returns and a re-ranking of market values in CBD and non-CBD locations? 
If location premiums erode, non-CBD and suburban locations could be rewarding for investors.
Demography (and urbanization): – is it destiny?
Are we under-estimating the impact of the changing population age profile?  Baby-boomers and first home buyers are important – but over time there are many other impacts on real estate to consider – childcare, student housing, retirement living as well as the age profile within the working age population. 
While population will grow across all age categories in Australia, some age groups will grow much faster than others – therefore requiring specific real estate solutions – right across the spectrum from childcare, student accommodation, first home buyers, upgraders, empty nesters and retirement villages.
 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
David Rees is regional director, head of research, JLL Australasia and can be contacted <a href="https://www.jll.com.au/australia/en-au/people/113/david-rees" target="_blank">here.</a>
</div>
</div>
</div>
</div>
 
</body></html>

Time to review pre-GFC yardsticks to judge future performance of commercial real estate: JLL's David Rees

<html><body><div class="page" title="Page 1">
<div class="section">
GUEST OBSERVER
The Westpac–Melbourne Institute Index of Consumer Sentiment dipped 1 percent in June to 102.2 from 103.2 in May.
Coming after an 8.5 percent surge in May, the small decline in June mostly represents a consolidation at improved levels.
Last month’s surprise rate cut from the RBA was the main catalyst behind May’s rally and although confidence has slipped back a touch in June this is a fairly common pattern following an interest rate driven bounce. At 102.2 the Index is still in slightly ‘positive’ territory overall – recall that readings above 100 indicate optimists outnumber pessimists.
</div>
<div class="section">
<div class="layoutArea">
<div class="column">
<a href="/images/2016/06/15/Screen%20Shot%202016-06-15%20at%201.25.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/15/Screen%20Shot%202016-06-15%20at%201.25.11%20PM.png" alt="">
Responses to additional questions on ‘news recall’ point to a somewhat calmer backdrop compared to March although the majority of consumers still assessed news as being unfavourable. The highest recall levels were for news on ‘economic conditions’ (27.8 percent) and ‘Budget &amp; tax’ (25 percent) but both were notably lower than in previous quarters. That is despite the May Budget and campaigning in the lead up to next month’s Federal election.
News on ‘international conditions’ was also much less prominent with the 10 percent level of recall on this item the lowest read in over a decade. Unsurprisingly, there was higher recall for news on ‘interest rates’ (16.5 percent) with the news on this topic viewed less negatively than in the previous four quarters.
Responses to additional questions on the ‘wisest place for savings’ showed a slightly less risk averse tone but attitudes still appear to be more conservative than seen throughout 2015. The proportion of consumers nominating ‘pay down debt’ fell from 24.4 percent in March to 20 percent in June.
This compares to an average reading of 17 percent in 2015. Consumers continue to heavily favour ‘safe’ options as well, with the proportion nominating bank deposits rising from 27.4 percent in March to 29.5 percent in June. That contrasts with continued lower readings for the proportion nominating real estate (15.8 percent in June vs 14.7 percent in March and average 25.4 percent in 2015) and shares (8.0 percent in June vs 7.6 percent in March and an average of 8.9 percent in 2015).
Consumers’ assessments of labour market conditions also consolidated on recent improvements. The Westpac Melbourne Institute Index of Unemployment Expectations declined 0.1 percent from 136.3 in May to 136.2 in June. This Index measures respondents’ assessments of the outlook for the unemployment rate so lower reads indicate improved confidence in the employment outlook. The Index has fallen 7.5 percent over the last three months and is now down 10.9 percent on levels a year ago but is still 4.9 percent above its long run average – assessments have shown a steady improvement but are still more negative than usual.
The component detail behind the headline sentiment index showed firmer reads on ‘family finances’ but a softening in expectations for the economy. Most notably, the sub-index tracking respondents’ assessments of ‘family finances compared to a year ago’ – a component the RBA has emphasised as an indicator of demand – increased 4.3 percent. The sub-indexes tracking the one and five year outlook declined 3.8 percent and 5.2 percent respectively, with falls following particularly strong gains in May, of 13.2 percent and 14.8 percent respectively. The ‘time to buy a major household item’ sub-index was unchanged.
Consumer views on housing also consolidated in June. The ‘time to buy a dwelling’ index declined 2.7 percent but the retracement followed a strong 12.1 percent surge in May. Price expectations firmed in the month with the Westpac Melbourne Institute Index of House Price Expectations up 3.6 percent to the highest level since September 2015. Both buyer sentiment and price expectations are still well below the readings seen a year ago but have shown a clear firming from the weak levels in early 2016, the RBA’s May rate cut clearly a supporting factor.
The Reserve Bank Board next meets on July 5. A move at that meeting is highly unlikely. The key considerations for the Bank are around the outlook for inflation. On its current forecasts the RBA does not expect inflation to return to the bottom of the band until 2017, and that is on the assumption of a further rate cut given that the Bank’s forecasts are based on ‘market pricing’ for rates.
The most important and immediate information about whether the RBA’s May assessment is correct will come from the June quarter inflation report which prints on July 27, after the July Board meeting but ahead of the August 2 meeting. It is our assessment that the information in this report will confirm to the Board that another cut is indeed necessary.
 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<a href="/images/2016/06/15/Screen%20Shot%202016-06-15%20at%201.29.31%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/15/Screen%20Shot%202016-06-15%20at%201.29.31%20PM.png" alt="">
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div></body></html>

Consumer sentiment consolidates after post-rate cut bounce: Bill Evans

<html><body>
Shane Moran, of the Moran health care family, is the mystery buyer of Darling House, the priciest cottage yet sold in the NSW Government's Millers Point sell-off.
He paid $7.7 million for the 1840's Georgian Regency property which was previously an low income aged care facility. He now plans a boutique low care aged care enterprise.
It's no great surprise as the visionary Moran family have a very long association with heritage buildings across Sydney.
The property was marketed with the possibility to be turned into a grand family home, but Moran is intent on re-establishing its previous use.
But with an intimate club-like 10 rooms, it will be aimed squarely at wealthy retirees whose middle aged children likely work and live in the city proximity.
Set back from the street on 759 sqm, the standalone sandstone house offers ten bedrooms, ten ensuite bathrooms and picturesque gardens in a quiet enclave.
It's a little less grand that where Shane calls home. That's Swifts, the 56 room neo-Gothic castlelated mansion in Darling Point.
Darling House, formerly known as the Rocks Cottage Type Hospital, was sold by Richard Shalhoub of McGrath in conjunction with Shayne Harris from Savills.
The transformation of the suburb is set to make Millers Point a very special part of the city.
Darling House was first owned by local businessman Joseph Farris whose early tenants including surgeon, Leopold Sachs. 
The Sydney Harbour Trust took over the property in 1901.
This article was first published in the Daily Telegraph.
</body></html>

Shane Moran to open Millers Point aged care home

<html><body>
<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
We have to move the housing conversation beyond a game of political football about negative-gearing winners and losers. Australia needs a bipartisan, long-term, housing policy. Why? Because we have a slow-burn, deepening crisis that is affecting Australians who are already highly vulnerable and disadvantaged. They include:
<ul>
<li>
206,000 households on the waiting lists for social housing;
</li>
<li>
46 percent of those with greatest needs wait two years or more; and
</li>
<li>
105,000 were designated homeless in the 2011 Census.
</li>
</ul>
The UN Rapporteur on Human Rights, following a visit in 2007, concluded that Australia was failing to deliver the fundamental human right of adequate housing because of the lack of any co-ordinated national strategy. Nothing has changed since 2007.
<h2>A failure to join the dots of housing policy</h2>
Our cities will stop working if we do not do something. A decent long-term housing policy is not just about the million or so Australians who are in housing need, marginal housing or homeless. In reality, housing demand and supply for all tenures is intricately connected.
Failed first-time buyers rent privately, increasing demand and rent levels. This pushes lower-income families towards social housing waiting lists and, at the end of the queue, those on marginal incomes are more likely to experience homelessness. Investors push out would-be home buyers by leveraging generous tax breaks that are not available to renters who are saving up to buy.
Rental affordability is worsening, including for key workers in our cities. First-time buyers are having difficulty entering an overheated market. We face the prospect of a permanent “generation rent”.
Changes in the value of new lending, 2008-2016
<a href="/images/2016/06/15/image-20160608-15024-1pesejn.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/15/image-20160608-15024-1pesejn.jpg" alt="">
<h4>
Changes in the value of new lending to investors, first-home buyers and subsequent buyers from December 2008 to March 2016. CoreLogic, ABS
</h4>
More than 40 percent of people in private rental pay more than 30 percent of their income for housing – and this is after taking into account Commonwealth Rent Assistance. The 30 percent threshold is generally recognised as the level at which financial stress is experienced.
While states and territories have a wealth of experience and a clear role in delivery, the fact is the Commonwealth government must take a leadership role in co-ordinating national housing policy and connected programs across the four sectors of our housing system: home ownership; affordable private rental; social housing; and specific housing for Aboriginal, disability and homelessness needs.
It can be done; it has been done before. In 1945, Australia also faced a housing crisis. Despite skills and materials shortages and the financial difficulties of the post-war economy, the Commonwealth built 670,000 homes in ten years.
Decent housing underpins jobs, growth and productivity. Well-located, affordable housing is critical for preventative health, to provide a stable home environment for education and self-confidence, and for a productive workforce.
We need a national program of home building to meet the shortfall in all forms of housing. While this will not in itself resolve all problems, it is critical to a successful housing policy.
<h2>How much will it cost and where’s the money?</h2>
This is the subject of a new research report, Towards a National Housing Strategy, by Compass Housing working with a group of peak bodies, housing academics and community housing providers.
To get the long-term benefits of decent housing, we must recognise that providing this has an up-front cost and we are in a tight fiscal environment. The Ache for Home Report estimates a A$10 billion housing bond could meet the needs of the 100,000 currently homeless people. Across all tenures, Australia could build 500,000 homes in ten years for an annual investment of $12.5 billion.
Even if the Commonwealth government took full responsibility for funding a national building program of such scale, the annual investment would equate to less than one-fifth of the current annual cost of capital gains (CGT) exemption on the main residence. The bonus of investment on such a scale could be the boost to the wider economy in which each $1 spent on construction created a $1.30 gain.
A national housing strategy would need to do two key things to raise the cash needed:
<ul>
<li>
rebalance current tax settings to redirect money to where it is most needed; and
</li>
<li>
revise fiscal settings to attract more private capital into housing.
</li>
</ul>
Innovative financial models have been developed internationally that can bring private finance to the table. The development of an arm’s length, government-funded financial intermediary to provide loan guarantees within a housing bond approach is one model with merit. It is used in the UK, the US and Europe.
Rebalancing subsidy arrangements across housing sectors means ring-fencing current housing support and redirecting it across the housing system. Reforms of capital gains tax exemptions and discounts, as well as negative-gearing concessions, are contentious, but are levers to improve housing supply.
CGT exemptions for the main residence cost taxpayers $54 billion in 2014-15. Nearly 90 percent of the benefit went to the top 50 percent of earners. And the costs are increasing. The CGT discount of 50 percent on capital gains, including investment properties, will cost $121 billion by 2018-19.
Negative gearing amounts to an average saving of $2,900 per year for the 1.2 million who claim. However, its impact on the budget means it costs the remaining Australians $310 per year each in tax that they would not otherwise need to pay.
Across these subsidies alone, a modest redirection would provide for a significant start-up fund for affordable housing, to be leveraged with private investment funds.
A national bipartisan approach would allow an independent review of all subsidies and recommend rebalancing options. It could also ease financial stress in the private rental sector by examining the current caps and levels of Commonwealth Rent Assistance to improve prospects for the many families where renting is a lifetime housing solution.
Without a national, integrated approach to housing, Australia will by default continue the mistakes associated with seeing the four sectors of the housing continuum as discrete and conditioned by different factors.
Ralph Horne is deputy pro vice chancellor, Research &amp; Innovation; Director of UNGC Cities Programme; Professor, RMIT University and can be contacted <a href="https://theconversation.com/profiles/ralph-horne-160543" target="_blank">here</a>.
David Adamson is emeritus professor: Social and Community Policy, The University of South Wales and can be contacted <a href="https://theconversation.com/profiles/david-adamson-259956" target="_blank">here</a>.
Both are authors for The Conversation.
</body></html>

Our cities will stop working without a decent national housing policy

<html><body>
Australia's richest man, Meriton boss Harry Triguboff, has slammed the NSW government for its plans to impose higher taxes on foreign buyers of residential property.
"It is very bad. Without the Chinese nothing would ever get built," Mr Triguboff told The Australian Financial Review.
"Never mind the bullsh-- stories, sales volumes have already dropped and prices are coming down steadily.
"The Chinese buyers are already disappearing.
"This is not a joke. Chinese real estate agents are already sacking staff," he advised. 
When asked how the surcharge might impact on Meriton's own sales – the group has been reported as selling about one in five apartments to Asian buyers – Mr Triguboff said he was not yet sure, but he might have to drop his prices.
The NSW Treasurer Gladys Berejiklian announced that from June 21, when she hands down the state budget, foreign buyers of apartments, houses and residential land in NSW will have to pay a 4 per cent stamp duty surcharge.
They will also be hit by a 0.75 per cent land tax surcharge commencing in the 2017 land tax year.
Mr Triguboff labelled the new taxes "very dangerous", coming as they did on top of moves by the banks to tighten up lending to foreign buyers.
He also urged caution in light of the decline of the mining sector.
"We have nothing else except real estate. We have to be very careful," Mr Triguboff told the AFR.
</body></html>

The Chinese are already disappearing: Harry Triguboff

<html><body>
<div class="page" title="Page 1">GUEST OBSERVER</div>
Lending: Total new loans (personal, business, housing &amp; lease) fell by 1.4 percent in April after rising by 1.3 percent in March and rising by 2.1 percent in February. Total lending is down 6.9 percent on April 2015. In trend terms lending fell 0.1 percent in April to be down 4 percent on the year.
Within personal fixed finance commitments, loans for new cars were up by 30.5 percent on a year earlier while loans for used cars were up 20.5 percent. Loans for residential blocks of land were down by 6.4 percent on a year ago.
Rural loans lift: In the year to April, loans to the Agriculture, forestry and fishing sector were up by 11.5 percent to $23.3 billion – a 61⁄2 year high and just off the record high of $23.5 billion.  The lending figures have implications for finance providers, retailers, and companies dependent on consumer and business spending.  
What does it all mean?
When you consider how low interest rates are, the fact that lending is still struggling to push ahead of the highs recorded 71⁄2 years ago is quite remarkable. Businesses and consumers are more inclined to pay down debt rather than take on new commitments showing that the global financial crisis is still affecting the collective psyche.
But there are some stand-out areas. Aussie consumers are keen to update their rides, borrowing a record $15 billion over the past year to buy new or used cars. And in the business space, loans to the rural sector totalled $23.3 billion over the past year, just below record highs. Record car affordability is boosting car sales. And keen global interest in Australia’s food and beverage products are driving interest in the farm sector.
<a href="/images/2016/06/10/Screen%20Shot%202016-06-10%20at%201.18.54%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/10/Screen%20Shot%202016-06-10%20at%201.18.54%20PM.png" alt="">
If businesses do start taking on debt with more gusto, this should be a precursor to increased spending on equipment and therefore more investment. For the Reserve Bank, this is the last shoe to drop. The economy is running at the fastest pace in 31⁄2 years, consumer spending is above-normal, housing is strong and the job market is improving. If business investment starts lifting then rate hikes will finally be taken off the agenda What do the figures show?
Lending Finance
Total new loans (personal, business, housing &amp; lease) fell by 1.4 per cent in April after rising by 1.3 per cent in March and rising by 2.1 per cent in February. Total lending is down 6.9 per cent on April 2015. In trend terms lending fell 0.1 per cent in April to be down 4 per cent on the year.
<a href="/images/2016/06/10/Screen%20Shot%202016-06-10%20at%201.20.34%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/10/Screen%20Shot%202016-06-10%20at%201.20.34%20PM.png" alt="">
Housing finance: The seasonally adjusted measure of construction and new purchases rose by 0.1 per cent in April while alterations &amp; additions fell by 0.5 per cent. Home loans are up 7.9 per cent on a year.
Commercial finance: The seasonally adjusted series for the value of total commercial finance commitments fell 3.3 per cent. Revolving credit commitments fell 5.0 per cent and fixed lending commitments fell 2.8 per cent. Business loans are down 14.4 per cent on April 2015.
Personal finance: The seasonally adjusted series for the value of total personal finance commitments rose 5.0 per cent. Revolving credit commitments rose 14.2 per cent, while fixed lending commitments fell 0.9 per cent. Personal loans are up 2.0 per cent over the year.
Within personal fixed finance commitments, loans for new cars were up by 30.5 per cent on a year earlier while loans for used cars were up 20.5 per cent. Loans for residential blocks of land were down by 6.4 per cent on a year ago.
Lease finance: The trend series for the value of total lease finance commitments fell 1.6 per cent in April 2016 and the seasonally adjusted series rose 0.4 per cent, after a fall of 7.8 per cent in March 2016. Lease loans are up 2.9 per cent on the year.  What is the importance of the economic data?
Lending Finance is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.
<a href="/images/2016/06/10/Screen%20Shot%202016-06-10%20at%201.21.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/10/Screen%20Shot%202016-06-10%20at%201.21.43%20PM.png" alt="">
What are the implications for interest rates and investors?
The latest lending data precedes the May interest rate cut, so we will need to wait a few more months to see how both the rate cut and Budget measures have affected lending. Business lending has eased over the past five months from 8-year highs. The pull-back in lending is something to monitor, and serves to keep rate cuts on the agenda.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
 
</body></html>

Rural lending in vogue: CommSec's Craig James

<html><body>
Adelaide's weekend prices ranged from $495,000 for a townhouse at North Adelaide to $1.6 million at Gulfview Heights.
The two bedroom <a href="https://www.realestate.com.au/property-townhouse-sa-north+adelaide-122689442" target="_blank">1960s townhouse on Barnard Street</a> (above) had traded at $365,000 in 2007.
The 41 Bellevue Circuit two storey home (below) sold pre-auction.
<img src="/images/2016/06/14/700_bellevue.jpg" alt="">
The <a href="https://www.realestate.com.au/property-house-sa-gulfview+heights-122607502" target="_blank">four bedroom home</a> with 78 sqm space sits on a 1056 sqm block.
"The home could be an eight bedroom home if necessary, however the current layout works as a comfortable 4 bedroom," selling agent Colin Martin said, adding there was also space to park eight cars.  
</body></html>

Adelaide trophy home sells at $1.6 million

<html><body>
<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Queensland government recently launched a call for ideas to shape a revised plan for the future of Southeast Queensland.
The deputy premier and minister for infrastructure, local government and planning, Jackie Trad spoke recently of the opportunities for Southeast Queenslanders to grow communities sustainably and protect the region’s amenity – its environs, facilities, services and values.
This plan will consider consequences for the next 50 years. A 20-year plan will underpin the 50-year vision.
However, a long-term plan can’t properly underpin a vision without engaging many of Southeast Queensland’s stakeholders and visitors. It must also use appropriate futures methods to help look ahead 50 years.
What role for futures thinking?
Professional futures studies tools help to map, anticipate and deepen understanding of complex local and global trends and challenges. Kelvin Spiller’s experience as CEO at Maroochy Shire Council, on the Sunshine Coast, includes a process of “visioning” to establish long-term priorities across the whole city.
Now CEO of Geelong City Council, Spiller believes such visioning is vital for successful local government:
"particularly when there are service implications worth tens of millions of dollars or infrastructure replacement is necessary."
He employs the following steps to bring about change in cities:
<ul>
<li>visioning with stakeholders;</li>
<li>service planning;</li>
<li>asset strategy planning;</li>
<li>encouraging leaders and managers via upskilling and guidance contained in legislation;</li>
<li>gaining a clear understanding of the council, government and community financial opportunities and constraints in relation to the vision as identified by the wider community. Link the infrastructure and social requirements of the vision to the finances available;</li>
<li>managing carefully the expectations, what can be achieved and timelines with the community, key stakeholders and governments; and</li>
<li>regularly refreshing the vision and strategic direction process with key stakeholders.</li>
</ul>
What the plan needs
The plan must consider the pressing and engaging futures that affect the region’s residents. These include the softer social and harder economic and environmental issues and solutions that must cascade throughout cities if we want to achieve sustainability.
Southeast Queensland’s population will grow to 5.3 million people in the next 25 years, according to Trad. This growth has implications for how Queenslanders settle and then relocate in the region given the demographics of age groups and lifestyle changes – for example, work opportunities, career changes and family developments.
One implication of accelerated change is how quickly preferences of Generations X and Y change from wanting co-location options, specialised services and village communities. Each generation is seeking services that match their particular needs.
Futures opportunities up for grabs
In visioning initiatives in the region’s cities, communities have created city visions. These called for the priorities to be areas of community and cultural connection, engagement, openness and environmental sustainability.
A priority is pride in cities, and how we sustain a socially just and connected society across all demographics. Taking care of youth through to the elderly, multiple cultures, the disabled and disempowered requires designing and innovating to meet future health, security, cultural, education and social needs.
Uniting people around behaviours that help maintain and enhance the quality of our ecosystems, pristine air, water, food and energy requirements will remain of vital importance.
Our economic interests include prospects for jobs and prosperity – not simply in creating wealth, but also in creating opportunities. Transport and technology challenges, the new digital economy and our knowledge economy factor highly.
Our capacity to connect regionally to globally is also critical. Economic hotspots around the globe are shifting, as are the cities, mega-cities and cultures we network with.
Questions remain
The plan’s strengths are in thinking about issues dealing with infrastructure and land use. Yet, in proposing the plan’s revision, some questions about “softer” issues remain unanswered:
1  In considering long-term consequences, will the plan help the creation of innovative futures networks that empower hard-to-reach communities alongside policymakers, businesses, NGOs, consultants and universities? And will it legislate for more and better community engagement standards by cities in the region?
2  Given the projected population growth and accelerating pace of technological and climate change, will the plan encourage cities to develop city-wide visions and community plans to help them consider the opportunities and challenges ahead?
What issues will the plan translate into strategy and actions to tackle regional challenges? Will these include health, education, policing and encouragement of jobs that create sustainable futures?
Answers to these questions will depend largely on how stakeholders, community members and interested persons respond to the <a href="https://www.shapingseq.com.au/about-shaping-seq" target="_blank">call for feedback</a>.
Colin Russo is futurist, University of the Sunshine Coast and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/colin-russo-267108" target="_blank">here</a>.
</body></html>

Queensland’s 50-year vision for its southeast must take heed of all region’s future needs

<html><body>
GUEST OBSERVER
Regardless of their size, investors and fund managers such as superannuation funds, syndicators, listed property trusts, charitable trusts or larger high net worth families, are often out on the market looking for the same type of investment product - properties that are ‘accretive’. 
Put simply, this means that several tick boxes need to be ticked for the ideal investment property, such as:
<ul>
<li>
Lease term - ideally needs to be longer than the average Weighted Average Lease Term (WALT) of the portfolio (generally this is 4-5 years)</li>
<li>
Yield – ideally needs to be higher than the running average return and higher than debt costs </li>
<li>
Building Quality / Location – this typically means relatively modern in an established location</li>
</ul>
 
With many buyers searching for the same type of investment, the competition quickly becomes crowded for property that ticks all the boxes, and the above criteria becomes an investment hurdle.
This is where Core Plus investments come in
As the investment hurdles can be difficult to overcome, some investors are turning to Core Plus investments.
Core Plus is a value-add story, where the core is the initial yield on which the property is bought and the plus relates to an immediate increase in the property’s value.
Investopedia defines Core Plus as a fixed-income investment management style that permits managers to add instruments with greater risk and greater potential return to core portfolios. This type of investment is considered moderate risk/moderate return, and is slightly higher on the risk scale due to the additional enhancements needed to bring the property to value.
Supplementing the core yield
The core yield may be supplemented by any one or a number of the following:
<ul>
<li>
Surplus Land – where a building provides the initial running yield but surplus land can be developed or sold to increase the return</li>
<li>
Lease Extension – where the tenant may have a long right of lease renewal or no renewal at all and the purchaser backs themselves to be able to renegotiate a better lease position offering immediate upside value </li>
<li>
Under Rented – when the passing rent is less than the estimated rental value. After purchase,  the investor backs themselves to increase the rent to achieve a better running yield</li>
<li>
Change of Use – where a building is zoned as one type but then redeveloped as another (for example an industrial building can be redeveloped to accommodate retail to provide higher rents, or even residential where “air space” can be developed) </li>
<li>
Land Fragmentation – where a large unsubdivided or englobo block of land is subdivided into small parcels where the end result is a higher overall value</li>
<li>
Land/Building Purchase – where the ‘existing’ building on the site is deemed obsolete or unleasable, so the investor purchases at land value with the building free</li>
</ul>
Investment hurdles are difficult to move past, so Core Plus is becoming an innovative way for investors to take on increased risk to boost their portfolios. The reality is that investors are using Core Plus as an alternative investment formula.
Paddy Callesen is a managing director of the Savills Auckland office and can be contacted <a href="https://www.savills.com.au" target="_blank">here</a>.
</body></html>

Adding the ‘plus’ into core plus investments: Paddy Callesen

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News