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

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<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>
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Baird should butt out of federal taxation debate: Malcolm Gunning

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

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<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>
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We need a more sophisticated conversation about apartments

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<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>
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Forza Capital to offer Melbourne CBD fringe office investment

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

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<div class="column">GUEST OBSERVER</div>
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<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>
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<br>Hours worked rose by 0.2 percent in September. Hours worked are up by 0.3 percent on the year.</div>
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<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>
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<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>
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<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>
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<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>
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<br>What does it all mean?</div>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<br>What do the figures show?</div>
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<br>Labour force:</div>
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<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>
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<div class="column">Hours worked fell by 0.2 percent in August. Hours worked are up by 0.7 percent on the year.</div>
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<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>
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<br>The participation rate eased from 64.7 percent to 64.5 percent.</div>
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<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>
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<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>
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<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>
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<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>
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<br>Why is the data important?</div>
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<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>
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<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>
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<br>What are the implications?</div>
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<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. 
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<div class="column"><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></div>
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No smoking gun for RBA after full-time jobs record biggest fall in 5½-years

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

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<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>
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<p><span>The launch begins 9.00am, 15 October 2016 at 80 Waterloo Rd, Macquarie Park.</span></p>
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<p>For more information, <a href="https://www.parkonesydney.com" target="_blank">click here</a>.</p>
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Buyer registrations soar for Golden Age's Macquarie Park project, Park One

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

<p data-end="568" data-start="388">Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.</p>

<p data-end="803" data-start="570">Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.</p>

<p data-end="1041" data-start="805">The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.</p>

<p data-end="1239" data-start="1043"><a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.</p>

<p data-end="1239" data-start="1043">[smartcode_project:default project_id=114246 project_image_fid=378718]</p>

<p data-end="1459" data-start="1241">Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.</p>

<p data-end="1582" data-start="1461">Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.</p>

<p data-end="1777" data-start="1584">"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.</p>

<p data-end="2018" data-start="1779">"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.</p>

<p data-end="2245" data-start="2020">"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."</p>

<p data-end="2245" data-start="2020">[smartcode_project:default project_id=114246 project_image_fid=378713]</p>

<p data-end="2438" data-start="2247">A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.</p>

<p data-end="2577" data-start="2440">Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.</p>

<p data-end="2772" data-start="2579">The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.</p>

<p data-end="2245" data-start="2020">[smartcode_project:default project_id=114246 project_image_fid=378720]</p>

<p data-end="2245" data-start="2020">Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.</p>

<p data-end="2996" data-start="2932">"The penthouse is a serene study in quiet luxury," Freeman said.</p>

<p data-end="3264" data-start="2998">"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."</p>

<p data-end="3384" data-start="3266">Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.</p>

<p data-end="3531" data-start="3386">"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.</p>

<p data-end="3823" data-start="3533">"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."</p>

<p data-end="3823" data-start="3533">[smartcode_project:default project_id=114246 project_image_fid=378694]</p>

<p data-end="3986" data-start="3825">Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.</p>

<p data-end="4199" data-start="3988">Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.</p>

<p data-end="4370" data-start="4201">Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.</p>

<p data-end="4516" data-start="4372">"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.</p>

<p data-end="4717" data-start="4518">"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.</p>

<p data-end="4883" data-start="4719">"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."</p>

<p data-end="4947" data-start="4885">The penthouse will be exclusively marketed by SRM Residential.</p>

<p data-end="4947" data-start="4885">[smartcode_project_cta:default project_id=114246]</p>


Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

<p>New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.</p>

<p><a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.</p>

<p>The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.</p>

<p>Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.</p>

<p>[smartcode_project:default project_id=149951 project_image_fid=377072]</p>

<p>Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.</p>

<p>Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.</p>

<p>“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.</p>

<p>“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”</p>

<p>The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.</p>

<p><img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" /></p>

<p>Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.</p>

<p>Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.</p>

<p>Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.</p>

<p>“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.</p>

<p>“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”</p>

<p>“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”</p>

<p><img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" /></p>

<p>Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.</p>

<p>It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.</p>

<p>Cottee said Marrone represented the first stage of the group's longer-term plans for the area.</p>

<p>Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.</p>

<p>Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.</p>


Dalcott targets owner-occupiers with South Brisbane debut Marrone

<p>Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.</p>

<p>Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.</p>

<p>Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.</p>

<p><img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" /></p>

<p>Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.</p>

<p>The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.</p>

<p>The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.</p>

<p>Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.</p>

<p>The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.</p>

<p><img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" /></p>

<p>Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.</p>

<p>The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.</p>

<p>A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.</p>

<p>Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.</p>

<p>A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.</p>

<p><img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." /></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

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<p>Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.</p>

<p>Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.</p>

<p>The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.</p>


First look: New apartment tower pitched for Strathfield Town Centre precinct

<p>An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.</p>

<p>Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.</p>

<p>Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.</p>

<p>The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378731]</p>

<p>All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.</p>

<p>The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378732]</p>

<p>A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.</p>

<p>OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.</p>

<p>“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.</p>

<p>“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378736]</p>

<p>La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.</p>

<p>ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.</p>

<p>“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.</p>

<p>“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”</p>

<p>Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.</p>

<p>“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.</p>

<p>“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”</p>

<p>The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378734]</p>

<p>Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.</p>

<p>The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.</p>

<p>Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.</p>

<p>The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.</p>

<p>Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.</p>

<p>[smartcode_project_cta:default project_id=95606]</p>


ODUS releases $18 million penthouse crowning La Mer Main Beach

<p><a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.</p>

<p>Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.</p>

<p>The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365685]</p>

<p>"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.</p>

<p>Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.</p>

<p>"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368869]</p>

<p>That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.</p>

<p>Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.</p>

<p>Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365689]</p>

<p>Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.</p>

<p>They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.</p>

<p>The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.</p>

<p>"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368872]</p>

<p>The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.</p>

<p>With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.</p>

<p>A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.</p>

<p>Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.</p>

<p>[smartcode_project_cta:default project_id=509]</p>


Michael Crawford

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