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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.
<a href="/images/2015/06/23/700_pain6.jpg" target="_blank"> Click to enlarge </a> 
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Light, Playford and West Torrens top the list of Adelaide's top property losers: CoreLogic RP Data

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

Joel Robinson

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

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

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

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

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

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

Bottega House secures landmark riverfront site in St Lucia 

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

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