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The mortgage broker, <a href="https://www.homeloanexperts.com.au/" target="_blank">homeloanexperts.com.au</a> recently prepared an info-chart on one of the biggest decisions you’ll need to make on taking a home loan - to play it safe by locking in your interest rate or take a risk in the hopes rates will drop even further amd you won't have to sell in the meantime. 
There are pros and cons to each option no matter which way rates go.
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DISCLAIMER: This is general information only and should not be taken as financial advice. Please speak to a financial professional before making a decision on your home loan.
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Fixed or variable? HomeLoanexperts.com.au

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Economists and banking experts unanimously agree the Reserve Bank will hold the current cash rate ahead of the RBA's monthly meeting.
Many believe May rate cuts have yet to filter down into the economy ,with others citing an improved employment rate, increased housing costs and overseas financial conditions as other reasons to hold the cash rate.
All 33 experts surveyed for the <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">finder.com.au Reserve Bank Survey</a> believe the RBA will continue to hold the cash rate. The majority of experts (56% or 18 experts) are expecting the cash rate to start rising next year, possibly the last quarter of 2016.
HSBC's chief economist Paul Bloxham said he is still watching and waiting to see the impact of the 50 basis points of cuts delivered in the first half of this year, with the Commonwealth Bank's chief economist Michael Blythe adding the Reserve Bank is in "wait and see" mode while they assess incoming data, such as the next Consumer Price Index due at the end of July.
 
 
 
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RBA predicted to hold cash rate

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The most popular holiday home For Sale search on realestateview.com.au over recent weeks has been a Tasmanian coastal property.
<a href="https://www.realestateview.com.au/Real-Estate/18-airey-drive-arthur-river/Property-Details-buy-residential-8647212" target="_blank">18 Airey Drive, Arthur River, Tasmania</a>, is located only minutes from Tasmania's untamed west coast waves. It is for sale at $165,000, a small shack on a big vacant block.
According to listing agent Betty Kay from Betty Kay Realty, it can get 'a little rough' despite its reputation as a fishing hot spot as well.
The shack offering comes a little rough too.
"The three bedroom shack is in need of some renovation work but if you want a true shack - and not a house - then this could be your ideal holiday location," she said.
"There's gas cooking, hot water, wood heating and a new 26000 lltre water tank. 
"Rarely does a cheaper property come on the market, with a short walk to access the wonderful pristine beaches of the West Coast.
"There is only one block of vacant land for sale in the area, and no more land to be sold as it is held by Crown Lands," Mrs Kay said.
"People come to surf the remote and legendary Southern Ocean waves at Marrawah, to get close up with rare wildlife and to explore Arthur River and the Tarkine - Tasmania's largest protected wilderness area.
"If you are a handy man you can turn this into a comfortable holiday home with its large block of 1057m² and great location."
Its most clicked status was revealed in a list issued by the realesateview.com.au website to coincide with a marketing campaign on how the site listings attract buyer bites.
<img src="https://content.aimatch.com/pm/RealestateView/gone-fishing_leaderboard_728x90.gif" alt="" width="728" height="90">
There's so little property activity that <a href="/news">RP Data</a> hasn't been able to track any median house price movement for years.  
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Tasmania's Arthur River - Australia's most clicked holiday home for sale

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Median house prices in Sydney are tipped to fall a total of 4% over 2016/17 and 2017/18, with total price growth for three years until June 2018 forecast to be 2%, according to a new study. 
The BIS Shrapnel Residential Property Prospects 2015 to 2018 expects a 'real decline' of 6% until 2018. The study noted Sydney’s estimated median house price of $960,000 in June 2015 marks a 45% increase over the past three years. Current price growth is driven by Sydney's undersupply of dwellings.
BIS Shrapnel senior manager and study author, Angie Zigomanis said strong population growth is preventing Sydney's housing deficiency being reduced quicker than expected.
“Regardless, completions will continue to rise, and the slow erosion of the deficiency will also coincide a forecast tightening in interest rate policy over 2016/17,” said Zigomanis. 
“The combination of higher interest rates and recent price growth is expected to discourage both owner occupiers and investors, particularly as pent up demand pressures are beginning to ease.”
<a href="/images/2015/06/29/bis_brisbane.jpg" target="_blank">Click to enlarge</a>
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Sydney property market tipped to fall: BIS Shrapnel 2018

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GUEST OBSERVER
Infrastructure investment at the mature operating stage provides predictable revenue and growth in revenue above the rate of inflation, providing high levels of inflation protection.  
Infrastructure is classified as either economic or social. Economic infrastructure includes assets that facilitate transportation and telecommunications or utilities that generate and distribute power, water and gas. Social infrastructure includes assets in which services such as education, health and correctional facilities are provided.   
The majority of infrastructure assets operate in regulated environments with revenue increases linked to inflation through long term concession agreements and government contracts. There are usually high barriers to entry through large upfront establishment capital costs. Established infrastructure assets have monopoly/quasi-monopoly market positions with long useful lives of 20+ years and low operating costs.  Infrastructure assets provide services where demand is consistent or functions where demand exhibits resistance to business cycles and are linked to non-discretionary spending as a result. These attributes generate stable income returns.
Access to investment in infrastructure assets with these investment characteristics may be achieved through listed securities and unlisted funds. Listed infrastructure securities are available on the ASX and consist of companies that own economic infrastructure assets. Unlisted infrastructure funds may invest in listed securities or a portfolio of infrastructure assets either directly or through unlisted funds. Investors may also gain exposure to the infrastructure asset class through superannuation funds that invest in infrastructure through unlisted funds.
Listed and unlisted infrastructure is similar as the characteristics of the underlying physical assets are the same. Over the medium to long term returns are expected to converge between the two. Over the short term differences in pricing of listed and unlisted infrastructure investments will result in different returns and volatility of returns. Liquidity profiles differ with listed infrastructure securities readily tradeable on the ASX while unlisted funds are not liquid. Listed infrastructure securities also have a more diverse portfolio of assets both in location and type which will also affect the profile of returns.  
Australian infrastructure assets have outperformed Australian shares over the long term. In chart 1 (below) is shown the growth in value of $100 invested over 20 years from March 1995 to March 2015 in listed Australian infrastructure securities and Australian shares.
<a href="/images/2015/06/30/ev.owa.jpeg" target="_blank">Click to enlarge</a>
<img src="/images/2015/06/30/ev.owa.jpeg" alt="">
 
Source: UBS Infrastructure and Utilities Accumulation Index, S&amp;P ASX 200 Accumulation Index
Chart 1 shows that listed infrastructure generated a higher cumulative return than Australian shares over a 20 year period to 31 March 2015. Listed infrastructure generated a return of 16.4% p.a. while Australian shares generated a return of 10.4% p.a. 
Infrastructure assets provide stable and predictable cash flows with inflation linked revenue. Exposure to the infrastructure asset class can be achieved through listed securities, unlisted funds or superannuation funds that may invest in infrastructure. Listed and unlisted infrastructure is similar and has return profiles that differ over the short term and converge over the long term.  
Lev Driker is an Investment Analyst for Atchison Consultants. He can be contacted <a href="https://atchison.com.au/our-team/" target="_blank">here.</a>
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Infrastructure investment key to stable returns: Lev Driker

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Has a family member or friend asked you to be a 'co-borrower' or guarantee a loan for them? Before you say yes, think carefully - you could lose not only your money, but valuable assets such as your house or car.
What is a guarantor or co-borrower?
Co-borrower
You are a co-borrower if you sign a loan with someone else.
In most instances both you and the other co-borrower are jointly and individually liable for the debt. If the person you borrow the money with is unable to pay their share of the loan, you will be responsible for repaying the full amount outstanding.
Guarantor
If a credit provider is not willing to give a loan to a person on their own, they may ask for a guarantee. If you sign a guarantee for a friend or family member, you are known as the 'guarantor' of the loan.
When you sign your name as a guarantor, you are legally responsible for paying back the entire loan if the other person cannot or will not make the repayments. You will also have to pay any fees, charges and interest. As a guarantor does you don't have the right to own the property or items bought with the loan.
Guaranteeing a loan could affect your future loans and credit report
You will need to tell your credit provider about any loans you are a guarantor for, when you apply for credit. They may take into account the loan repayments on the loan you have guaranteed when they assess your ability to repay a new loan. This may stop you getting a new loan even if the person who's loan you are guaranteeing is making the repayments.
You may end up with a bad credit record if you and the borrower can't pay back the guaranteed loan. The loan will be listed as a default or non-payment on your <a href="https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-reports" target="_blank">credit report</a>, making it hard for you to borrow money for several years.
If you provide security, such as a mortgage on your home, to guarantee someone else's loan, you may not be able to use your home as security for your own loan. You may even end up losing your home if you don't pay out the guaranteed loan. 
You may also be made bankrupt by the credit provider. Even assets you haven't offered as security for a guarantee may then be sold to pay the outstanding debt. 
Think very carefully before guaranteeing a loan
Is there another way you could help without becoming a guarantor? For example, could you contribute to a deposit so that a guarantee is not needed? Consider how you will pay back the loan if your friend or family member can't. Can you afford the repayments? Do you have savings you can use or assets you can sell to pay the debt? If you do have to use your own money or assets to pay off someone else's loan, you could be risking your financial future. What about your relationship with the borrower if something goes wrong? It may be better to say 'no' now and avoid damaging your friendship. 
Case study: Connie guarantees a business loan for her son
Connie's family ran cafes for years until her late husband became too ill to work. Her son Leo grew up working for the family business, and Connie thought he could make a go of it. But she didn't know he had a gambling problem.
A few months after Connie guaranteed a business loan for him, Leo fell behind in his repayments. Then he was evicted from the cafe for not paying rent. She asked relatives to contribute to Leo's repayments but even with their help, there was not enough money to pay off the debts.
The bank and landlord contacted Connie to pay back what was owed. Connie is talking to the bank about repayment arrangements, including postponing enforcement proceedings, but is resigned to the fact she may have to sell the family home to pay off Leo's debts. 
Ask questions
Before you guarantee a loan, ask the credit provider the following questions.
Q. What type of loan am I guaranteeing?
Be very careful about guaranteeing a loan that has no specific payback time, such as an <a href="https://www.moneysmart.gov.au/borrowing-and-credit/other-types-of-credit/overdrafts" target="_blank">overdraft</a>. This kind of loan could potentially go on forever.
Q. What should I check if I am asked to guarantee a business loan?
Find out everything you can about the business. Ask for a copy of the business plan to understand how it intends to operate. It's also important to look at the business' financial state. For example, check past financial statements and speak to the business' accountant to make sure the company is in good financial health and has good prospects.
Q. Is the guarantee for a fixed amount of money, or is it for the total amount owing?
You are better off guaranteeing a fixed amount because you will know exactly what you owe. If you sign a guarantee for the total amount owing, you will be legally responsible for what the borrower owes now and in the future. This could include interest, fees, charges and penalties. If you think there has been an increase in the amount you agreed to guarantee without your consent, seek legal advice straight away.
Q. Exactly how much am I guaranteeing?
The guarantee should clearly describe how the amount of money you owe will be calculated if the worst happens and the borrower does not pay. If you are not comfortable with the amount, ask if you can reduce it.
Q. Do I have to put up assets as security?
If the loan is not for personal, household or domestic purposes, you may be asked to put up an asset such as your house as security. This means the credit provider can sell your house to pay the debt if the borrower defaults on their loan.
Q. What should the loan contract tell me?
Get a copy of the loan contract from the credit provider. It should tell you:
<ul>
<li>The amount of the loan</li>
<li>The interest rate, fees and charges</li>
<li>Whether the loan is secured (where the borrower has to put up an asset, such as their house, as security)</li>
<li>How long the borrower has to repay the loan</li>
<li>The amount of the repayments</li>
</ul>
Get legal advice
Never let a family member pressure or force you into signing anything. If a large amount of money is involved, talk with a lawyer or get <a href="https://www.moneysmart.gov.au/managing-your-money/managing-debts/free-legal-advice">free legal advice</a> so you understand the risks you are taking on. If you're feeling pressured, seek financial counselling - it's a free and confidential service. 
Challenging a claim
In certain situations, guarantors may be able to challenge a claim even though they have signed contracts.
You should get advice immediately if you:
<ul>
<li>Only agreed to sign through pressure or fear</li>
<li>Suffered from a disability or mental illness at the time of signing</li>
<li>Did not receive legal advice before signing and did not understand the documents or the extent of the risk you were taking on; for example, you thought you were guaranteeing a certain amount but a much larger amount is now being claimed</li>
<li>Believe the credit provider or <a href="https://www.moneysmart.gov.au/glossary/b/broker" target="_blank">broker</a> used unfair tactics, or tricked or misled you</li>
</ul>
What to do if a personal relationship breaks down
A breakdown in your personal relationships affects every part of your life, including your finances. If you were a guarantor or co-borrower for your ex-partner, you may be liable for their debts if they can't or won't repay their loan.
In most cases, you won't be able to get out of loan contracts you made in the past, but speak to a lawyer or get <a href="https://www.moneysmart.gov.au/managing-your-money/managing-debts/free-legal-advice" target="_blank">free legal advice</a> about where you stand. 
Stop and think before agreeing to be a co-borrower or to guarantee someone's loan. If they cannot or will not pay off the loan, you will be responsible for the debt. Take the same care that you would if you were taking a loan out for yourself.
For more information from ASIC, click <a href="https://www.moneysmart.gov.au/borrowing-and-credit/home-loans" target="_blank">here</a>.
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ASIC's tips for parents financing home purchases for their children

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GUEST OBSERVER
In a recent address to the Economic Society of Australia, the Reserve Bank Governor Glenn Stevens hit the nail on the head when he remarked that “monetary policy alone can’t deliver everything we need and expecting too much from it can lead, in time, to much bigger problems”.
What was particularly important in this address was the (implicit) suggestion that the answer goes hand in hand with another question; what should we expect from fiscal policy?
Though at first sight it might appear to be a rather tenuous link, a decent review of the taxation system and more generally of the revenue side of the fiscal equation, may be a big help in taking some of the burden off monetary policy from its current constraints.
Stevens is not alone in suggesting that too much might be being expected of central bankers in promoting growth and reducing unemployment. Similar sentiments have come from former Federal Reserve Chairman, Ben Bernanke.
It is useful to distinguish two aspects to the question of whether we expect too much of monetary policy. The first is whether we can expect it to work when the economy is on the downswing in the same degree as when it is on the upswing. In particular, can we expect an easing of monetary policy to stimulate growth as effectively as a tightening of monetary policy can choke it off.
Central banks for the most part have a brief of keeping inflation <a href="https://www.rba.gov.au/inflation/inflation-target" target="_blank">within a certain range</a> and, with that done, to assist in keeping the economy’s growth rate near to trend; in the best of worlds, consistent with full employment.
Expectations about what more accommodating monetary policy can do for a sluggish economy have at times had to take a reality check here and in other parts of the world. Bringing interest rates down and making the assets side of bank balance sheets more liquid via “quantitative easing” can stimulate the real economy only to the extent that the binding constraint on spending by consumers and business is a financial one.
But in an environment where producers expect sluggish or even falling domestic or export demand, one would also expect to see sluggish investment demand, regardless of interest rates or the willingness of banks to lend. In other words, slow growth in demand may well mean expected rates of return from investment in new plant are revised down as much as interest rates.
As Stevens noted in his address, lower interest rates may not help consumption expenditure much either in present circumstances, since household sector’s debt burden means that it “has the least scope [compared with government and corporations] to expand their balance sheets to drive spending”.
And, as plenty of commentators have noted, injections of liquidity and easing credit conditions may be channelled into financial assets which don’t have significant stimulatory effects on the real side of the economy, which is where we need it for growth and reduced unemployment.
Some have even argued that a lengthy period of easy monetary policy has adverse distributional effects benefiting owners of stock and property. However the precise distributional effects of seem rather complex and less than clear cut, and will depend in part on whether or not accommodatory monetary policy stimulates the economy and hence employment growth.
The second and perhaps broader aspect related to expectations about what monetary policy can and should do is that it is often asked to effectively make use of a limited toolbox to deal with conflicting objectives. One could be forgiven for thinking that in this country we have only one macro policy instrument - interest rates – to both control inflation and manipulate growth in economic activity.
The obvious elephant in the room here is fiscal policy.
In his address Stevens actually raises an old and interesting idea about fiscal policy: that it can have a stimulatory role perfectly consistent with “sound financing” (to borrow a perverted phrase with which Keynes’ was forced to do battle); where stimulatory expenditure and any increased debt are on the capital or investment side of the budget.
Such fiscal stimulus may even have what some economists refer to as a “crowding-in” effect: a positive impact on expectations about growth, as Stevens notes. This idea also provides a bulwark against the nonsense about fiscal contraction or consolidation (as it’s euphemistically called) being necessary to stimulate the economy.
The caution here from the Governor is also sound it seems; that capital expenditure is not overnight, so the confidence boost is probably more important for the short-term than the actual direct impact on government expenditure.
In any case, if fiscal policy in general and government expenditure in particular is to come back into its own as a macro policy instrument, reform of the revenue base and thus the tax system is paramount.
But note here, a significant driver of tax reform should be the sustainable funding of an expenditure side which fulfils its macro economic role as a generator of demand growth and its social role in generating infrastructure.
Tax reform should not be seen exclusively as code for a lower taxes, this being an end, the means to which to point of is government withdrawing from its expenditure responsibilities. Unfortunately, this latter view seems to dominate much discussion in this country.
From a macro policy standpoint, looking at tax or more appropriately at the revenue side of the fiscal equation may well have a positive spin-off for monetary policy, leaving it to focus, if that is the continued wish of the political masters, on inflation.
And if one is worried about complex adverse distributional effects of monetary policy, expenditure on infrastructure, done properly, would surely help redress inequality by lifting the social wage.
Graham White is Associate Professor, School of Economics at University of Sydney. He can be contacted <a href="https://sydney.edu.au/arts/economics/staff/profiles/g.white.php" target="_blank">here</a>.
 
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When monetary policy reaches its limits, what of fiscal policy?

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GUEST OBSERVATION
A key budget measure to change the age pension asset test has passed both houses of Parliament, despite concerns about the impact on pensioners raised by the Opposition, National Seniors and Industry Super.
But many such analyses have focused only on the income from investment assets rather than taking full account of retirees’ ability dip into their assets – like superannuation – to bolster their standard of living.
Superannuation - a nest egg or a gift to the next generation
In one example of a criticism that failed to show the whole picture, a National Seniors’ campaign poster<a href="https://nationalseniors.com.au/be-heard/retirement-income/2015-pension-cuts-campaign"> </a>against the cuts said that: a single woman living off $17,875 from $550,000 in savings will lose her part-pension. Yet, someone with no savings will receive a full pension of $22,365 plus concessions.
Little is made of the fact that the woman losing her pension can use the equity in her home to access a full pension via the Pension Loan Scheme, let alone that -– unlike the full pensioner -– she can spend some of her $550,000 in savings to supplement her standard of living.
Indeed, she is better off than most. Based on 2010 <a href="https://www.melbourneinstitute.com/hilda/" target="_blank">HILDA data</a>, only about a fifth of people aged 65-plus had non-home assets of over $500,000. Renters were even less likely to have such funds.
Similarly, analysis by Industry Super and Rice Warner projected the income levels of future retirees and compared these to what would be needed for a “comfortable’ retirement, as defined by Association of Superannuation Funds of Australia.
They found that, based on income from the age pension, superannuation, and wealth outside of superannuation, almost half of those retiring in 2055 are expected to have an income below the comfortable level and that the asset test changes will exacerbate the outcomes.
Their analysis also shows that as people accumulate more super, the asset test will affect a greater proportion of retirees and start impacting on middle-income Australians. This is unsurprising and exactly what one would expect from a maturing superannuation system. But again, little is said about how retirees have the option to use their financial assets to bolster their standard of living.
The implicit assumption seems to be that financial wealth will be passed on to children rather than be used to compensate for the loss of the pension and fund retirement (or health and care expenditures, since these are largely covered by the state). And this is in addition to passing on the family home.
The under-consumption puzzle
Recent <a href="https://www.cepar.edu.au/media/154967/age_pensioner_profiles_a_longitudinal_study_of_income__assets_and_decumulation.pdf" target="_blank">research</a> by the Centre of Excellence in Population Ageing Research confirms that most households receiving the age pension indeed choose not to spend down their financial assets and leave considerable bequests. It is part of a wider literature looking at what is referred to as the “under-consumption puzzle”.
The analysis is based on a sample of administrative data that tracked the assets and incomes of full and part age pensioners in the period between 1999 and 2007.
The results show that on average, younger and wealthier households tend to spend some of their financial wealth, but the majority see the financial assets grow, particularly couples and homeowners. Housing assets are usually preserved until very old ages unless a partner dies or goes into residential care, suggesting an element of downsizing.
Interestingly, the data shows that consumption is low when compared to the Association of Superannuation Funds of Australia benchmarks for a “modest” and “comfortable” retirement, even among the wealthier households in the sample.
One explanation is that pensioners may be self-insuring for investment and expenditure shocks, but the outcome of low spending profiles is that a large proportion of pensioner households leave significant assets as bequests.
Over 10% of single-person households in the sample exhausted 90% of the initial assets over the period, but the median pensioner that passed away during the study period was able to bequeath wealth (mainly financial) equivalent to 90% of the assets recorded at first observation.
Next up: a review of retirement income
The research highlights the extent to which pensioners rely on the age pension while preserving capital for their estate. In a system where the age pension is designed to be needs-based – not rights-based – and in the absence of inheritance tax, a strong asset test seems like an appropriate tax on such a practice.
The behavioural responses will be watched closely. A complete spend-down to gain pension eligibility is unlikely to be good value for money. Some might dip into their capital to compensate for the loss of their pension but the research suggests they will simply spend less. Others may invest in the family home, excluded from the asset test.
But one seldom quoted response is how the asset taper will affect risk. Those far from eligibility may seek out safer investments like annuities because the pension will no longer insure for losses in assets. Those who are on the steeper asset taper may seek riskier investments since the pension <a href="https://www.ceda.com.au/2015/05/Shrinking-the-Age-Pension-and-retirement-income">acts as a hedge</a> and compensates for losses (at $78 per $1k loss, compared to $39 previously).
Next on the agenda is a review of retirement income – a concession that the Greens extracted from the Government when agreeing to the asset test changes. Once the review does take place, let’s not forget to think about income as well as how people deplete their capital.
 
Rafal Chomik is Senior Research Fellow, ARC Centre of Excellence in Population Ageing Research, UNSW at UNSW Australia and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/rafal-chomik/41/4b9/263" target="_blank">here</a>.
Susan Thorp is Professor of Finance at University of Sydney and can be contacted <a href="https://sydney.edu.au/business/staff/susanth" target="_blank">here</a>.
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Super, savings meant to fund retirement, not be bequeathed; academic

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Some 6.2% of Melbourne resales over the March 2015 quarter were at a price lower than the previous purchase price, according to the latest CoreLogic RP Data pain gain report.
The figure was down from 7.5% a year earlier however up from the 5.6% the previous quarter. 
The Moorabool and Murrindindi council areas were the only regions across the city to record no resales at a loss over the quarter. 
The regions with the highest proportion of loss-making resales were the heart of Melbourne (24.0%), followed by Melton (15.2%), Macedon Ranges (10.4%) and Whittlesea (10.3%).
The average loss of vendors in the inner Melbourne sits at $34,000. 
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Highrise inner Melbourne residential loss sales running at 24%: CoreLogic RP Data pain gain report

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Over the March 2015 quarter, 9.7% of Adelaide resales were at a gross loss.
CoreLogic RP Data's pain and gain report noted that was up from 9.0% at the end of 2014 but lower than the 11.3% over the same quarter last year.
Mallala had one sale over the quarter and it was at a loss, elsewhere the proportion of loss-making resales was espcially high in the Light (25.0%), Playford (21.0%) and West Torrens (16.2%) council areas.
The proportion of loss-making resales was relatively lower in the Unley (3.3%), Mount Barker (3.3%) and Adelaide Hills (4.2%) council areas.
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Light, Playford and West Torrens top the list of Adelaide's top property losers: CoreLogic RP Data

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

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