<html><body>
<p>GUEST OBSERVER</p>
<p class="x_MsoNormal">No surprises from the RBA which left the official cash rate on hold yet again at 1.5 percent at its December Board meeting. </p>
<p class="x_MsoNormal">The RBA appears to be a bit more confident in its views regarding global growth and inflation, sees rising commodity prices as reflective of both stronger demand and supply cutbacks and sees them boosting national income and doesn’t seem too concerned about the rise in bond yields.</p>
<p class="x_MsoNormal">By contrast, its comments on Australia are a bit more mixed seeing growth slowing in the short term, the labour market as mixed and inflation remaining low before turning back up. In terms of the housing sector it now seems a bit more concerned acknowledging that conditions have strengthened overall. </p>
<p class="x_MsoNormal">But while the RBA sees year ended growth slowing in the short term – which is presumably a reference to the high risk of a negative September quarter GDP outcome – it  doesn’t appear to be too concerned and is expecting growth to pick up again as resources projects complete. </p>
<p class="x_MsoNormal">Following a surprisingly correlated run of weaker than expected September quarter data for real retail sales, housing construction, private and public investment and trade volumes there is now a very high risk that GDP contracted in the September quarter with the consensus of economists now expecting -0.1 percent quarter on quarter or +2.2 percent year on year.</p>
<p class="x_MsoNormal">This would only be the fourth quarter of GDP contraction since the last recession ended in 1991 – the last three being in the December quarter 2000 (after the introduction of the GST), December quarter 2008 (the GFC) and March quarter 2011 (mainly due to a hiccup in exports). While a contraction will no doubt invite talk of a recession (usually defined as two consecutive quarters of falling GDP) we, like the RBA, see growth bouncing back again.</p>
<p class="x_MsoNormal">Weak September quarter GDP looks like payback for stronger than expected GDP growth over the year to the June quarter of 3.3 percent. And looking forward the ramp up in resource export volumes has further to go, there is still a huge pipeline of housing activity yet to be completed, strengthening approvals for non-dwelling construction are a positive sign, the drag from mining investment is fading as it reduces as a share of GDP and its likely to be close to a bottom in the next 12-18 months, recent retail sales data have improved suggesting a consumer bounce back in the December quarter and the rebound in commodity prices tells us that the income recession in Australia is over.</p>
<p class="x_MsoNormal">But despite this and although the tone of the RBA’s Statement remained basically neutral, absent a surprise bout of fiscal stimulus in Australia we remain of the view that its way too early to rule out further rate cuts next year.</p>
<p class="x_MsoNormal">The risks to growth are on the downside, inflation is likely to remain below target for longer than the RBA is forecasting as wages growth remains weak, the RBA may also need to offset increases in bank mortgage rates that are being driven by the rise in global bond yields and the $A remains too high. So we are allowing for one rate cut in the first half of next year. Regardless of whether there will be further cuts or not, a rate hike remains a 2018 story at the earliest.</p>
<p class="x_MsoNormal"><em><span><a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a></span> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.</em></p>
</body></html>

mick.cee-iDmgDDAmu8

Still see another rate cut next year: AMP's Shane Oliver

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span>GUEST OBSERVER</span></p>
<p><span>NSW Premier Mike Baird should take care of his own backyard rather than attempting to interfere in federal politics.</span></p>
<p><span>The comment’s follow Mr Baird’s address to the National Press Club in Canberra (29 November 2016) when he called for changes to negative gearing to be considered. </span></p>
<p><span>Mr Baird is attempting to deflect attention away from what he and his government have control over, stamp duty and land tax. </span></p>
<p><span>If he is serious about making comments in regard to taxation reform he needs to start looking in his own backyard and conduct a review of these outdated and unfair taxes.</span></p>
<p>Mr Baird must butt out of the federal taxation debate, stop pointing the figure at someone else and take responsibility for first homebuyers in NSW who are struggling to get onto the property ladder.</p>
<p><span>It is time for Mr Baird and his government to make the tough decision to stop reaping the rewards of a failure to review stamp duty that is filling government coffers at record rates and bring it back to levels that were intended. </span></p>
<p><span>Currently upwards of 25 percent of the cost of the purchase price of a new residential property goes on local, state and federal taxes, including GST. This is what is impeding turnover of property in NSW. It is time to look after the best interests of the people of this state.</span></p>
<p><em>Malcolm Gunning is the immediate past president of the Real Estate Institute of NSW and can be contacted <a href="https://www.gunningre.com.au" target="_blank">here</a>.</em></p>
</div>
</div>
</div></body></html>

Baird should butt out of federal taxation debate: Malcolm Gunning

<html><body>
<p>Unseasonal rain this year may have led to an unusual number of sale contracts and negotiations under way for this time of year, according to Herron Todd White's (HTW) November rural report.</p>
<p>HTW said there are about 10 contracts of sale in the northern Queensland marketplace at present.</p>
<p>"The normal marketing and selling period is after the wet from April to June," HTW said.</p>
<p>"This year saw limited market activity during this period and things were looking bleak. </p>
<p>"Now that some rain has fallen in winter, things have stepped up a gear and total sales volumes for the year are expected to be within a healthy range from 20 to 25 cattle stations.</p>
<p>Many of the details of transactions are confidential at this stage.</p>
<p>"From an independent view point, the sale prices are sensible when duly considered and do not represent an increase in values from last year," the report said.</p>
<p>"There are some areas where sale value rates this year are showing that they have recovered to the pre-drought levels. They are certainly not above the pre-drought levels though.</p>
<p>"Up until recently, the strong cattle market has been good for vendors and has enabled businesses to do some good cattle trades and re-generate cash ow after three very lean years. This has enabled some prospective vendors to pay their bills while they market their stations. Perhaps with the cattle market coming off a bit lately, property buyers will remain cautious in their due diligence.</p>
<p>"Apart from the rain, a good thing for the property market is the low interest rate environment. This would be attractive for some buyers and also positive for existing owners.</p>
<p>"At this stage, the recovery in values to pre drought levels is looking good for the district to the north of Richmond, Julia Creek, Cloncurry and Camooweal up to the Gulf. The other area that is showing signs of value rate recovery is from Hughenden to Muttaburra and back up to Prairie."</p>
</body></html>

Rain, low interest rates seeding busy northern Queensland rural property market: HTW

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span>GUEST OBSERVER</span></p>
<p><span>Design guidelines are one thing but in order to see ‘better apartments’ in Melbourne, a cultural shift whereby smaller footprint living is normalised is what’s required. </span></p>
<p><span>During a recent panel session on ‘Developing Policy’ hosted by Open Journal as part of its High Density Happiness program at MPavilion, Victorian Minister for Planning Richard Wynne, BKK Architects’ Simon Knott, MA Architects’ Karen Alcock and I discussed how to best support the creation of quality adaptable apartments. </span></p>
<p><span>The session’s focus was on the imminent release of the final Better Apartments guidelines, which are the culmination of a period of industry consultation that followed the Victorian Government’s release of draft design standards in August 2016. </span></p>
<p><span>If the large crowd at MPavilion was anything to go by, these guidelines have touched a nerve within the industry and the apartment market more generally. </span></p>
<p><span>In the process, they’ve initiated a vital conversation about design quality, especially given Melbourne will overtake Sydney as Australia’s most populous centre by 2050, with more than 90,000 people coming to live in the city every year. </span></p>
<p><span>If Melbourne is to maintain its mantel as the world’s most liveable city, this regulatory approach to ensuring quality housing will play an important role. However, there needs also to be a recalibration of how we view apartments. </span></p>
<p><span>At present, there’s a disconnect whereby the quality of an apartment is assessed from purely a cash flow perspective that doesn’t take into account capital growth or depreciation. </span></p>
<p><span>What’s needed is a more sophisticated conversation about apartments and how they work in a financial sense. </span></p>
<p><span>For example, apartments at Jewell Station, A New Urban Village by Neometro in the inner- Melbourne suburb of Brunswick can be up to 10 per cent more expensive than other apartment projects in the area but that is down to better quality design, including from a public realm perspective. </span></p>
<p><span>A whole new type of development is being created at Jewell Station, with a collective endeavour that integrates quality apartment living with social infrastructure such as bike paths, communal gardens, public arts and events programs, a rejuvenated local park, cafés, and independent retail and meditation spaces. </span></p>
<p><span>Educating buyers is difficult but they need to know that buying a high quality apartment is a positive financial step. </span></p>
<p><span>Buyers who are better informed about the benefits of quality apartment design will push higher standards on developers and that can only be a good thing. </span></p>
<p>James Tutton is director, Neometro and can be contacted <a href="https://neometro.com.au" target="_blank">here</a>.</p>
</div>
</div>
</div></body></html>

We need a more sophisticated conversation about apartments

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span>Melbourne based fund manager Forza Capital have listed a four level office space on the fringe of the Melbourne CBD.</span></p>
<p>The 6,178 sqm building is located in South Carlton, just 600 metres from the north eastern fringe of the CBD.</p>
<p>The building on a vast 3,772 sqm - a rare size in the tightly held precinct - comes fully leased with a $2.15 million per annum income.</p>
<p>The tenants are primarily from the health sector. Vic Health and Breast Screen Victoria are two of the most recognisable names, along with the likes of Novotech and Warner Brother.</p>
<p>There are 160 basements car parking spots.</p>
<p>Forza Capital, led by Adam Murchie and Ashley Wain, have enlisted Fitzroy's Paul Burns and Bayley Stuart Real Estate's Alasdair MacGillivray to market <a href="https://www.commercialview.com.au/15-31-pelham-street-carlton-vic/commercial-for-sale-details-11195906" target="_blank">15-31 Pelham Street</a>.</p>
<p>“The property was identified in 2012 due to the scarcity of quality office stock on the northern fringe of the CBD," Wain said, Forza Capital's managing director.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/11/03/Carlton2.jpg" alt="" width="415" height="261"></p>
<p>Since their purchase, Forza have seen a 100 percent occupancy ever since.</p>
<p>“Over half of the building’s NLA has been renewed in the last 12 months, with only one tenant vacating and their 1,400m2 tenancy being immediately relet to other tenants in the Health/Medical sectors.” Wain said.</p>
<p>Paul Burns at Fitzroy's said this is a unique and rarely available opportunity.</p>
<p>"At a time when vacancy rates have fallen dramatically and we are on the cusp of enjoying meaningful rental growth, we have an offering which has been securely leased and recently refurbished.” </p>
<p>“Carlton and the immediate North Eastern CBD fringe is one of the tightest and most securely held pockets of Melbourne.</p>
<p>"When space does come available, major Educational Institutes like Melbourne University and RMIT compete with a number of Healthcare groups who need to be in this location."</p>
<p> </p>
<p><span> </span></p>
<p> </p>
<p><span> </span></p>
<p> </p>
<p> </p>
<p> </p>
</div>
</div>
</div></body></html>

Forza Capital to offer Melbourne CBD fringe office investment

<html><body>
<p>GUEST OBSERVER</p>
<p>As expected, the Reserve Bank Board decided to leave the cash rate unchanged at 1.5 percent.</p>
<p>It is significant that the Governor chose to retain the same language as used in October for the concluding paragraph which signals any bias. The neutral bias which we saw in October has been retained in November.</p>
<p>In recent speeches the Governor has highlighted his overall approach to policy. That entails a 2-3 percent target for inflation “over time”. He has pointed out that with inflation currently below the bottom of that band he eventually expects inflation to move within the band. However the pace at which that movement is expected will be dependent upon the state of the labour market and the housing market.</p>
<p>Over the last month we received key data on employment; housing; and inflation. As we anticipated, the inflation report printed broadly as the Board expected signalling no need to adjust the policy stance for the inflation update. Recall that the Bank’s forecasts for underlying inflation in 2016 are 1.5 percent and in 2017 2 percent. The September inflation report signalled that the 1.5 percent is likely to be achieved and our analysis indicated that there was some evidence that we have passed the low point in inflation although the pace of increase is likely to be moderate. That scenario fits with the 2 percent forecast for 2017.</p>
<p>The language around the labour market was almost identical to October although consistent with the disappointing September employment report the Governor noted that “employment growth overall has slowed”. However he did repeat the observation that “forward-looking indicators point to continued expansion”.</p>
<p>Commentary around the housing market was also broadly unchanged although the language describing the activity in Sydney and Melbourne was strengthened from “some markets have strengthened recently” to “some markets have been rising briskly”.</p>
<p>International commentary, specifically around China, has changed. In October the Governor noted that the “underlying pace of growth in China has been moderating”. He now recognises that recent data has improved but points out that “medium term risks to growth remain”. That sentiment is consistent with the detailed analysis in the Financial Stability Review of the risks emerging in the Chinese banking system as the small private sector banks grow rapidly with over reliance on short term funding and a generally increasing exposure to complex investment assets.</p>
<p><strong>Conclusion</strong></p>
<p>We are not surprised by this decision and Statement. It is entirely consistent with our view that rates will remain on hold for the remainder of this year and over the course of 2017.</p>
<p>As we have discussed in previous notes the inflation outlook is unlikely to be the source of any future policy adjustment.</p>
<p>The policy easing in 2016 has been in response to the inflation shock earlier in the year but now policy is likely to refocus on the real economy.</p>
<p>Our current forecast of 3.3 percent growth next year, supported by 1.6 percent growth in employment, is unlikely to signal the need for lower rates.</p>
<p>However, with inflation only likely to track along the bottom of the 2-3 percent target band next year there will be scope to ease further should growth, and the labour market in particular, profoundly disappoint.</p>
<p>That is not our forecast but we acknowledge that if rates are to move next year it will be down rather than up in 2017.</p>
<p><em>BILL EVANS</em><em> is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
</body></html>

Reserve Bank retains neutral bias, no significant change in commentary: Westpac's Bill Evans

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">GUEST OBSERVER</div>
<div class="column"> </div>
<div class="column">Employment fell by 9,800 in September after falling by a revised 8,600 people in August (previously - 3,900). Full-time jobs fell by 53,000 while part-time jobs rose by 43,200. Economists had tipped a 15,000 increase in jobs.</div>
<div class="column">
<br>Hours worked rose by 0.2 percent in September. Hours worked are up by 0.3 percent on the year.</div>
<div class="column">
<br>Jobless rate: The unemployment rate fell from 5.7 percent to 5.6 percent in September. To two decimal points the jobless rate fell from 5.66 percent to 5.57 percent (lowest rate recorded in 31⁄2-years). The trend unemployment rate fell from 5.7 percent to 5.6 percent (hasn’t been lower in 31⁄2-years). The participation rate eased from 64.7 percent to 64.5 percent.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%202.00.07%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%202.00.07%20PM.png" alt=""></div>
<div class="column">
<br>Unemployment across states in September: NSW 4.9 percent – 4 year low (August 5.0 percent); Victoria 5.7 percent (5.6 per cent); Queensland 6.0 percent (6.2 percent); South Australia 6.7 percent (6.8 percent); Western Australia 6.2 percent (6.3 per cent); Tasmania 6.5 percent (7.2 per cent). In trend terms unemployment in the Northern Territory fell from 3.5 percent to 3.4 percent; ACT unemployment was steady at 3.5 percent.</div>
<div class="column">
<br>A raft of companies is affected by the employment data but especially those dependent on consumer spending. Amongst stocks affected are Fairfax, West Australian Newspapers, Seek Limited, McMillan Shakespeare and Skilled Group.</div>
<div class="column">
<br>What does it all mean?</div>
<div class="column">
<br>Well the latest employment result certainly disappointed. Expectations were for a modest lift in overall employment however not only did total employment fall in September but the August result was revised to a larger fall. In addition the job losses once again centred on full-time employment. Full time jobs fell by over 53,000 in September – the biggest monthly fall in 51⁄2-years.</div>
<div class="column">
<br>The shift to part-time employment has been the trend so far over 2016. In fact full-time employment fell by 112,100 over the nine months of 2016 compared with a gain of 104,000 full-time jobs this time last year. The economy lost momentum around the time of the UK ‘Brexit’ vote and the Federal Election. Simply, businesses wanted to see what happened before deciding on additional spending, investment or employment. It’s clear that Aussie business have been trying to manage their largest cost base (wages) given the slowdown in activity levels over the first half of 2016.</div>
<div class="column"> </div>
<div class="column">We expect that economic momentum will recover in the next few months. Anecdotal evidence suggests that spending has picked up after the election. Certainly job advertisements have continued to lift, in fact job vacancies are holding at 3- year highs – suggesting that employers are looking to hire staff in coming months. And both consumer and business confidence lifted in the last month.</div>
<div class="column"> </div>
<div class="column">
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">Interestingly the unemployment rate continues to fall, now holding at a 31⁄2-year low. The slide in unemployment is being driven by a modest slide in the participation rate. However there is a vast differential across the states. In NSW unemployment as fallen to 4.9 percent – the lowest result in four years, while the ACT has an unemployment rate of 3.5 percent. At the other end of the spectrum unemployment in South Australia, Tasmania and Western Australia held well above 6 percent.</div>
<div class="column">
<br>The weaker-than-expected unemployment result has left the door open for the Reserve Bank to cut rates in in November, but only if inflation remains stubbornly low next week. For the record we expect the “headline” CPI probably rose 0.4 percent in the quarter and 1.0 percent over the year, replicating the June quarter results. We expect that “underlying” prices rose by 0.5 percent in the quarter and 1.7 percent over the year.</div>
<div class="column">
<br>Results in line with our forecasts don’t provide the “smoking gun” needed to justify another rate cut. But if the underlying estimate of inflation lifts by less than 0.4 percent then another rate cut will be on the agenda at the November 1 Reserve Bank Board meeting. The question for Reserve Bank Board members is whether there is value in cutting rates again.</div>
<div class="column">
<br>What do the figures show?</div>
<div class="column">
<br>Labour force:</div>
<div class="column">
<br>Employment 9,800 in September after falling by a revised 8,600 people in August (previously -3,900). Full-time jobs fell by 53,000 while part-time jobs rose by 43,200. Economists had tipped a 15,000 increase in jobs.</div>
<div class="column"> </div>
<div class="column">Hours worked fell by 0.2 percent in August. Hours worked are up by 0.7 percent on the year.</div>
<div class="column"> </div>
<div class="column">The unemployment rate 5.7 percent to 5.6 percent in September. To two decimal points the jobless rate fell from 5.66 percent to 5.57 percent (lowest rate recorded in 31⁄2-years). The trend unemployment rate fell from 5.7 per cent to 5.6 per cent (hasn’t been lower in 3 1⁄2-years).</div>
<div class="column">
<br>The participation rate eased from 64.7 percent to 64.5 percent.</div>
<div class="column"> </div>
<div class="column">Click to enlarge</div>
<div class="column"><img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%202.01.37%20PM.png" alt=""></div>
<div class="column"> </div>
<div class="column">A total of 163,200 jobs were added over the year to September. The annual growth rate eased to a 17-month low of 1.4 percent. In trend terms, employment has risen for 34 consecutive months. The working age population rose by 24,800 in September. The working age population rose by 289,900 (1.51 per cent) over the last year.</div>
<div class="column">
<br>Unemployment across states in September: NSW 4.9 percent (August 5.0 percent); Victoria 5.7 percent (5.6 percent); Queensland 6.0 percent (6.2 percent); South Australia 6.7 percent (6.8 percent); Western Australia 6.2 percent (6.3 percent); Tasmania 6.5 percent (7.2 percent). In trend terms unemployment in the Northern Territory fell from 3.5 percent to 3.4 percent; ACT unemployment was steady at 3.5 percent.</div>
<div class="column">
<br>Jobs across states and territories in September: NSW +6,700; Victoria -11,700; Queensland -4,100; South Australia unchanged; Western Australia -7,600; Tasmania +2,300. Trend terms: Northern Territory -100; ACT +400.</div>
<div class="column">
<br>Why is the data important?</div>
<div class="column">
<br>The Labour Force estimates are derived from a monthly survey conducted by the Bureau of Statistics. The population survey is based on a multi-stage area sample of private dwellings (currently about 22,800 houses, flats, etc.) and a sample of non-private dwellings (hotels, motels, etc.). The survey covers about 0.24 per cent of the population of Australia and includes all people over 15 years of age, except defence personnel.</div>
<div class="column">
<br> If more people are employed, then there is greater spending power in the economy. But at the same time companies may adjust the work hours of employees. If employees work less hours, and therefore get paid less, then spending power in the economy is reduced.</div>
<div class="column">
<br>What are the implications?</div>
<div class="column"> </div>
<div class="column">The latest jobs data suggests that the improvement in business conditions and confidence is yet to translate through to a lift in full-time employment. But overall it seems a case of steady as you go. The jobless rate is still the lowest recorded in three years and job ads data suggest that it could fall further in coming months.</div>
<div class="column">As the job market tightens, the focus will shift to wage pressures. 
<p> </p>
<p> </p>
</div>
<div class="column"><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></div>
</div>
</div>
<p> </p>
<p> </p>
</div>
</div>
</div>
</div></body></html>

No smoking gun for RBA after full-time jobs record biggest fall in 5½-years

<html><body>
<p>GUEST OBSERVER</p>
<p>The minutes of the monetary policy meeting of the Reserve Bank Board for October, which mark the first meeting of the new Governor Lowe, provide significant insight into the Board’s current deliberations.</p>
<p>The minutes are quite honest that there is a high degree of uncertainty in a number of areas. In particular the assessment of the labour market is quite mixed and conflicting evidence is presented around the housing market.</p>
<p>The minutes point out that even though the unemployment rate has fallen by half a percentage point over the past year the underemployment rate, which captures workers who would like to work more hours, has increased. That message is consistent with a number of other developed economies where the unemployment rate is not necessarily a clear indicator of spare capacity in the labour market. In a speech which the Governor delivered today he estimates that the current unemployment rate is around half a percent above ‘full employment’, pointing to ample spare capacity in the labour market. However, the minutes do note that job vacancies and advertisements have increased and are consistent with employment growth in the coming months. There is also a more confident assessment that the relentless downward pressure on earnings may be waning. Recent evidence from the national accounts shows that average earnings have picked up in the past two quarters because the switch from high paying mining-related jobs to lower paying service jobs has slowed. The increase in the terms of trade in the June quarter, and expected increase for the September quarter also point to a boost to wages and profits.</p>
<p>The assessment of the housing market is more uncertain than had been the case at the time of the August rate cut. In particular for the first time in this cycle the Board recognises high auction clearance rates in Sydney and Melbourne and strengthening house price growth. Uncertainty around the outlook for housing is most clearly emphasised when the minutes states: “developments  would need to be monitored closely”.</p>
<p>In the speech referred to earlier the Governor linked those two markets back to monetary policy’s key objective around inflation. He pointed out that the need to achieve the inflation target should be affected by the conditions in labour and housing markets. For example, if inflation was well below the target but moving it back to the target came at the cost of a weakening of balance sheets and an unsustainable build up in leverage, a longer period away from the target would be appropriate. On the other hand if the labour market was deteriorating then a much more rapid movement towards the target would be appropriate. Clearly the story is never as clear cut as that but we can see strands of that approach to policy coming out in the minutes where uncertainty around those two markets is a central theme., although the assessments of the Sydney and Melbourne housing markets counsel caution.</p>
<p>The minutes also surprised us by the explicit sentence in the final paragraph: “Members noted that data on CPI inflation for the September quarter and an update of the forecasts would be available at the next meeting”….. providing the opportunity to review conditions in the labour and housing markets. Explicitly recognising the upcoming inflation report is not a standard approach. Certainly,it was referred to explicitly in the July minutes when we were clearly conditioned to see the June quarter inflation report as critical to the August policy decision.</p>
<p>We have not been of the view that the next inflation report will have the same significance. Bear in mind a 0.3%qtr is dropping out of the annual number and so the report would have to indicate that core inflation printed 0.2%qtr or less to see a further fall in annual inflation. We think that is extremely unlikely given our own forecast of 0.4%qtr and therefore an actual increase in annual underlying inflation from 1.5%yr to 1.6%yr. It is reasonable to assume that the Bank has a similar number in mind and therefore eliminating any case for a  policy response. However, choosing to include this sentence in the minutes and noting that the Governor has used the same observation in his speech today points out that given the uncertainty around housing and labour markets there may be a sufficiently low number that would put policy back into play for November. That is not to say that there would be an automatic policy response to an extraordinarily low number given that further information will also be available on the housing and labour markets.</p>
<p>While the minutes do not consider inflation expectations the Governor’s speech today highlights their importance- in particular the significance of the current inflation read for impacting inflation expectations: “One of the key influences on inflation expectations is the actual outcomes for inflation” – this observation further emphasises his assessment of the importance of current inflation for the future path of inflation.</p>
<p>There were no other surprises in the minutes. The Board is slightly more positive about the global economy as a result of a better performance from China. The minutes point out the recent boost to commodity prices but recognise that supply effects have been critical to this adjustment. It is our view that with evidence that supply is already responding, particularly in China, prices will adjust back towards costs of production over the course of the next year.</p>
<p>While the minutes included a section on the Bank’s half yearly assessment of the financial system (Financial Stability Review) there was surprisingly little emphasis on the risks around the inner city apartment market. Consistent with the Bank’s uncertainty around the residential property market the minutes are surprisingly brief on this issue.  </p>
<p>Conclusion</p>
<p>The minutes and today’s speech have provided us with valuable insights into the core approach to policy that we can expect from the new Governor. Less emphasis on specific inflation targeting and direct consideration of the implications of policy for housing and labour markets is clearly spelled out. However, the minutes do remind us that inflation is still the central policy objective and the inflation reports which we receive on a quarterly basis will always be important to the policy response. Based on the Governor’s apparent uncertainty around housing and the labour market at the moment it is clear that he would not welcome a sharp negative surprise on current inflation. We do not think that such an outcome is at all likely and we also believe that his tolerance for a very low number will be high but not infinite.</p>
<p>We maintain our long held view that rates will remain on hold in November and developments in the real economy will be sufficiently supportive to keep rates on hold in 2017.</p>
<p><em>BILL EVANS</em><em> is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
</body></html>

Reserve Bank minutes highlight uncertainty about housing and labour markets: Westpac's Bill Evans

<html><body>
<p>Property developer Golden Age have received over 2000 registrations of interest and over 400 deposits  prior to the public launch of their latest Sydney project, Park One, this weekend.</p>
<p>Park One will feature 409 one, two and three bedroom apartments across two buildings surrounded by 5500sqm of outdoor private parkland.</p>
<p>Jeff Xu, Golden Age managing director said Macquarie Park is fast becoming one of Sydney’s most popular and desirable locations for home buyers.</p>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span>The launch begins 9.00am, 15 October 2016 at 80 Waterloo Rd, Macquarie Park.</span></p>
</div>
</div>
</div>
<p>For more information, <a href="https://www.parkonesydney.com" target="_blank">click here</a>.</p>
</body></html>

Buyer registrations soar for Golden Age's Macquarie Park project, Park One

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>GEUST OBSERVER</span></p>
<p><span>Yesterday was Phil Lowe's first day as Governor of the Reserve Bank of Australia, having been elevated from Deputy Governor to replace Glenn Stevens, who has retired. </span></p>
<p><span>Given Lowe's long history at the RBA and close involvement in the board process, as Deputy Governor since 2012 and an assistant Governor since 2004, we expect that the transition from Governor Stevens to Lowe will be as smooth as could be imagined. </span></p>
<p><span>We do not see Lowe as any more or less hawkish or dovish than Stevens. Guy Debelle also steps up from assistant governor (financial markets) to the deputy governor role, a move that, once again, supports continuity of policymaking rather than explicit change. We expect the RBA's policy framework to remain unchanged, including the 2-3 percent flexible inflation target. </span></p>
<p><span>Facts </span></p>
<p><span>Phil Lowe starts as Governor, following Glenn Stevens' retirement. Lowe has been deputy governor since 2012 (and thus a board member) and, prior to that, an assistant governor since 2004. He started at the RBA in 1980, straight out of high school. He received a PhD in economics at MIT (completed in 1991) and has seconded to the Bank of International Settlements (BIS) from 2000 to 2002. </span></p>
<p><span>Guy Debelle becomes Deputy Governor, following nine years as assistant governor for financial markets. Debelle started at the RBA in 1994, from the Australian Treasury and completed a PhD in economics from MIT, under Stanley Fischer (current Federal Reserve Deputy chair) and Rudi Dornbusch, and has seconded to the IMF, MIT and the BIS. </span></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Implications </span></p>
<p><span>In appointing Deputy Governor Phil Lowe to the Governorship, the Treasurer has chosen to maintain significant continuity in the operations of the Reserve Bank of Australia. In this way, it is a strong endorsement of the operations of the Reserve Bank by the current government. Likewise, the promotion of assistant governor, Guy Debelle, to the Deputy Governor role supports continuity of policymaking. The appointments support the continued operation of the RBA as an independent central bank with a flexible inflation target. </span></p>
<p><span>Although some observers point out that Phil Lowe's speeches have tended to be more hawkish than those of Glenn Stevens, we doubt that Lowe will be more hawkish than Stevens in policymaking (as we have pointed out recently, see </span><span>'The RBA Observer: On hold, at Governor Steven's last meeting', 2 September 2016</span><span>). </span></p>
<p><span>In our view, Stevens' speeches also tended to be more hawkish when he was an assistant and deputy governor, but became somewhat more balanced when he took the governorship. It is also worth keeping in mind that the RBA have been 'reluctant cutters' all through the recent easing phase, being successively forced to cut by lower than expected inflation rates. We expect this reluctance to continue under Governor Lowe. </span></p>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<p><span>Much like Stevens, a great deal of Lowe's economic research has been in the area of asset prices, financial cycles and their importance for monetary policy settings. Much of this research significantly pre-dated the global financial crisis. </span></p>
<p><span>Lowe and Christopher Kent (a current assistant governor) wrote a paper in 1997 suggesting that 'when an asset price bubble emerges, there may be circumstances where policy should be tightened in order to bring on the collapse of the bubble before it becomes too large'. Lowe went on to write papers at the BIS, in 2000-2002, that focused on the importance of financial cycles in monetary policy settings. </span></p>
<p><span>This emphasis on the importance of credit cycles is likely to inform Lowe's policy approach, but he has also always emphasised that it needs to be (and can be) consistent with the flexible inflation-targeting framework. </span></p>
<p><span>With a new governor, a new agreement will be signed between the Governor and the Treasurer. This is how the Reserve Bank Act is operationalised and is likely to be signed and published soon. We expect it to be very similar to the previous agreement, particularly stating that the RBA has the 'objective of keeping consumer price inflation between 2 and 3 percent, on average, over the cycle'. </span></p>
<p><span>We doubt the inflation target will be changed and strongly believe this would be the wrong move (see </span><span>'Lowering Australia's inflation target would be a mistake', 12 May 2016</span><span>). </span></p>
<p><span>We expect the agreement to continue to include an explicit role for the RBA in maintaining financial stability. There could be some changes to the wording of this part of the agreement, in light of the RBA's more explicit concerns about lending standards during the recent housing price boom. However, we do not expect this to change the way prudential policy is implemented or the role of the prudential regulator. </span></p>
<p><span>Phil Lowe's first policy recommendation will be the board meeting on 4 October. We see the RBA keeping its cash rate firmly on hold at 1.50 percent at this meeting. Our central case has the RBA on hold in coming quarters. </span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<p><span><em><a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. </em></span></p>
</div>
</div>
</div>
</div></body></html>

New RBA Governors, but little expected change: HSBC's Paul Bloxham

<p>The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.</p>

<p>Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.</p>

<p>The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.</p>

<p>The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.</p>

<p>Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.</p>

<p>The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.</p>

<p>The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.</p>

<p>Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.</p>

<p>Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.</p>

<p data-end="345" data-start="110">The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.</p>

<p data-end="689" data-start="347">Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.</p>

<p data-end="689" data-start="347">Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.</p>


Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

<p>Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.</p>

<p>The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.</p>

<p>The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.</p>

<p>The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" /></p>

<p>SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.</p>

<p>“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" /></p>

<p>The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.</p>

<p>Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" /></p>

<p>“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.</p>

<p>The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.</p>

<p>The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.</p>

<p>Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a></em></p>


First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.</p>

<p>The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.</p>

<p>The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.</p>

<p>SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”</p>

<p>The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" /></p>

<p>The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.</p>

<p>A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.</p>

<p>Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" /></p>

<p>The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.</p>

<p>Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.</p>

<p>The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.</p>


First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.</p>

<p data-end="950" data-start="653">Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.</p>

<p data-end="1522" data-start="1309">The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.</p>

<p data-end="1945" data-start="1716">The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.</p>
</section>
</section>

<p>[smartcode_project_cta:default project_id=112661]</p>


Michael Crawford

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News