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GUEST OBSERVATION
The Australian economy is well placed for the medium to long term. But we face risks as we transition back to broad-based growth.
Australia’s resources boom lasted a decade. Iron ore, coal, gas, gold - you name it. If we could dig it up, China was ready to buy it at record prices.
But adapting to a boom is hard. The boom increased demand for the Australian dollar, increasing the exchange rate (which is just the price of an Australian dollar). This hurt non-commodity exporters and led to a two-speed economy. The resource centres of Western Australia and Queensland boomed while the manufacturing and services centres of Melbourne and Sydney hit the wall.
We adapted. It was tough.
However, mining booms are temporary. As exploration and development expands supply, the prices inevitably drop. Our mining boom has ended. We have seen massive falls in <a href="https://www.smh.com.au/business/mining-and-resources/iron-ore-tipped-to-fall-below-us40-this-year-20150206-138235">iron ore</a>, coal, <a href="https://www.theweek.co.uk/business/oil-price/60838/oil-price-yo-yo-continues-as-traders-jockey-to-find-bottom">oil</a> and gas prices in recent years. It was fun while it lasted, but the inevitable has occurred and now the Australian economy is adjusting back again.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71427/area14mp/image-20150209-13704-159mbzh.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71427/width668/image-20150209-13704-159mbzh.png" alt=""></a>
It’s good the boom is over
This is a good thing. A mining boom is like a boozy party. Great while it lasts, and it may lead to a <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2015-02-07/house-passed-in-at-auction-after-million-dollar-price-dive/6077724">short-term hangover</a>. However, so long as our economy can adapt back to the “new normal” of a lower exchange rate and more balanced growth driven by broad trade with our Asian neighbours, the end of the boom will lead to a new period of economic prosperity. The key is adaptability.
The end of the boom doesn’t mean that our earnings from mineral exports are back to 2000 levels. The development of new projects means that we will keep exporting and <a href="https://www.businessinsider.com.au/australian-iron-ore-exports-are-still-making-plenty-of-money-for-the-government-2014-12">earning more</a>. Put simply, quantity matters as well as price.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71423/area14mp/image-20150209-13719-f1ta6v.jpg"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71423/width668/image-20150209-13719-f1ta6v.jpg" alt=""></a>
Further, as the end of the boom leads to a fall in the Australian dollar, this hurts consumers as the price of imports rise. But Australian companies that compete with imports will find life easier. There will be more growth and jobs in these areas.
Similarly, the drop in the exchange rate helps our non-commodities exporters. Australian farmers, tertiary educators, high-end manufacturers and other service exporters should all have big grins on their faces. They will be expanding over the next few years as the rest of the world finds that they are much cheaper.
So the end of the boom will mean a return to more sustainable, balanced long-term growth across our economy. Asia is still growing and we are still well placed to benefit from that growth.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71424/area14mp/image-20150209-13713-3f98zz.jpg"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71424/width668/image-20150209-13713-3f98zz.jpg" alt=""></a>
What are the short-term risks?
The biggest risk is that the federal government will panic. Transition means that unemployment will increase as workers fly-out of the mining centres and move back to the south eastern states. Federal tax revenue will also temporarily fall as profits decrease in the resource sector but are yet to rise in other sectors. This means that there will be an increasing budget deficit. Fortunately, we have low levels of government debt by international standards, interest rates are at historic lows and our government can easily borrow to both cover the deficit and invest in infrastructure that will assist the transition.
Our federal government should not party like it is 2010 again. But there is no budget crisis.
The second biggest risk is that state and federal governments will fail to continue the necessary long-term reform needed in areas such as taxation, health, education, transport and energy. The outcome of the Queensland state election has undermined reform. It shouldn’t. The evidence is clear that reforms, including privatisation, but particularly reforms that sensibly <a href="https://theconversation.com/privatisation-in-australia-as-the-accc-opens-a-can-of-worms-what-are-the-lessons-on-government-ownership-and-regulation-21752">introduce competition</a> where it can work, have benefited people in the states that have had the leadership to push forward.
There is still plenty of <a href="https://www.erawa.com.au/cproot/12778/2/Final%20Report%20-%20Inquiry%20into%20Microeconomic%20Reform%20in%20Western%20Australia.PDF">scope for reform</a>. Congestion charging on urban roads with funds being used to improve public transport, is a no-brainer. Removing impediments to the sharing economy, such as the regulations that protect vested interests but undermine platforms like Uber and Airbnb, will mean better and cheaper choice for families. Requiring government infrastructure projects to have independent cost-benefit analysis will reduce political boondoggles that help marginal electorates but cost the broader community. Moving to real-time pricing in electricity and using smart grids to give consumers more control over their power bills, will reduce energy use and carbon emissions while saving money for households.
There is a long list of reforms that governments should be pursuing. These reforms are necessary to maintain our economic flexibility. But with any reform there will be winners and losers. Governments need to have the guts to implement reforms, but the compassion to reform in a way that protects the most vulnerable in the community.
Finally, our governments need to remember the compact that has underpinned Australia since federation. We do not leave people behind. There has long been a series of transfers, through the grants commission and through the distribution of the GST, from the richer states to the poorer states and from the cities to the bush. These transfers help guarantee that all Australians can gain from long term economic growth. These transfers need to continue. But they also <a href="https://theconversation.com/bandaids-on-broadband-has-turnbull-got-what-it-takes-to-fix-the-nbn-36913">need to be transparent</a>. And states need to remember that <a href="https://economics.com.au/?p=8726">today’s winners can be tomorrow’s losers</a>. The transfers are like a national insurance policy that protect us all.
So, the economic future is looking bright for Australia. Sure, the economic winds have changed. But so long as we can adapt and “change tack”, and governments do not get in the way, the next ten years for Australia are likely to be even better than the last ten.
Stephen King is professor at the Department of Economics at Monash University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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Turning headwinds into tailwinds - the economy can correct course: Stephen King

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At last Monday’s do-or-die Press Club speech Prime Minister Tony Abbott claimed jobs growth in 2014 was triple the rate in 2013, with 4,000 new jobs a week. 
Treasurer Joe Hockey said the same thing on AM on Wednesday, refashioning the figure as 600 new jobs a day.
It’s a claim that seems counterintuitive amid headlines about the PM abandoning as unachievable his pre-election pledge to create a million jobs within five years. Unemployment jumped above 6% last year, the resources bust is on us, and consumer and business confidence has stalled.
A walk-through the figures from the Treasurer’s office confirms the calculations are ridgy-didge, as far as they go, being based on simple averages of the total persons employed column of the most recent Australian Bureau of Statistics labour force data. The government is only making one debatable assumption: that the labour market performance through 2013 can be properly attributed to the previous government, even though the Coalition was in power for the last three months of the year, while the 2014 stats are credited to the current government. The Treasurer’s office says assuming a three month lag before its policies take effect is perfectly plausible, and let’s not quibble there.
On average in 2013 there were 5,063 jobs created each month, while in 2014 there were 17,823 a month — more than 4,000 a week or 600 a day.
The ABS data doesn’t break out employment by industry sectors but construction is reckoned to be the stand-out performer in jobs growth last year. Given how toppy property markets are looking, particularly in Sydney and Melbourne, it would be a brave policymaker who counted on a housing-led recovery in employment continuing on and on — even with lower interest rates.
But if the ABS data is right and jobs growth has tripled, why are we so gloomy about our job prospects and security? One problem with it is the official data fails to take account of population growth, as was highlighted in this <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=2&amp;cad=rja&amp;uact=8&amp;ved=0CC0QFjAB&amp;url=http%3A%2F%2Finsidestory.org.au%2Faustralia-today-a-million-new-adults-just-385000-new-jobs&amp;ei=twjUVNTHGaPJmAXX2oI4&amp;usg=AFQjCNFsu1-W8Q3M00TaKp2CXc-WXJJFmA&amp;sig2=E-mbSaUTIv-Bvmh_PvwBfQ">terrific article</a> by former Age economics editor Tim Colebatch. Over the three years to December 2014, the economy created 385,000 new jobs for every million new adults, his analysis shows, well down on the 690,000 new jobs created for every million new people over the past 30 years. Colebatch points at the high immigration rate — particularly employers using 457 visas to employ cheap cooks, for example — and argues the labour market simply can’t generate enough work for everybody.
People are simply dropping out of the workforce. The problem is highlighted in the following chart, which shows that, excepting Tasmania, the ratio of employment to population has tanked since the financial crisis.
<a href="https://media.crikey.com.au/wp-content/uploads/2015/02/employmentpopulation.jpg"><img class="aligncenter size-full wp-image-479203" src="https://media.crikey.com.au/wp-content/uploads/2015/02/employmentpopulation.jpg" width="513" height="445"></a>
South Australian Senator Nick Xenophon, whose office provided the chart, told Crikey he has railed for years about the official employment figures and queries the government’s jobs claim: “I think that needs to be deconstructed, it needs to be forensically looked at. What percentage of those new jobs is someone working three, six, eight hours a week, particularly given anyone is counted as employed if they work as little as an hour a week?”
Data quality aside, the most pressing question is, given the tough job of transitioning out of the resources boom, where is future jobs growth going to come from? The Treasurer’s office points to “green shoots” such as last month’s ANZ job ad survey, which <a href="https://www.theaustralian.com.au/business/economics/anz-survey-shows-job-ads-rising-for-seventh-month-in-row/story-e6frg926-1227182042074">showed</a> jobs ads had risen for the seventh month in a row, and this week’s Dunn &amp; Bradstreet business expectations survey for the next quarter, which <a href="https://www.smh.com.au/business/expectations-surveys-show-business-sector-optimistic-about-employment-20150202-1342fs">shows</a> a jump in the hiring intentions of business for the next quarter.
Unfortunately for the government neither survey, on a close reading, is optimistic. ANZ’s job ads survey was a reliable leading indicator when print dominated, and although it now includes online ads it does not include social fora like LinkedIn, so it is still finding its feet in the digital economy. ANZ chief economist Warren Hogan commented: “The good news is that the economy continues to produce new employment opportunities. The bad news is that this has not been quite enough to counteract the flow of new workers into the economy plus the on-going loss of jobs in certain sectors”.
Hogan told Crikey ANZ had revised its forecasts for 2015 down, like most economists and expected unemployment to peak later this year: “We’re expecting jobs growth in certain key services such as real estate, IT and telecommunications and construction.
“The $64,000 question is whether or not broader business services industries can increase their headcount again — banking, accounting and the legal profession have been subdued at best for the last half-decade and they are big employers”.
Headlined “outlook cools”, Dunn &amp; Bradstreet’s survey is also less than confidence inspiring: firstly, although the survey has shown a jump in hiring intentions since the last election, and a big jump in January’s one-month survey, actual hiring has consistently tracked below expectations. Whether the jump in intentions translates into new jobs is unclear.
D&amp;B adviser Stephen Koukoulas told Crikey there was no suggestion we were headed for the precipice: “The labor-intensive parts of economy are retail and construction. Both are doing pretty well. House building and construction is pretty strong, really encouraging, and unlike mining, which is not very labor-intensive. The other one is retail, as we move from the mining boom to the dining boom, if we’re spending more money in cafes and restaurants , that employs a lot of people. So there’s a compositional shift in growth towards those sectors.”
Koukoulas is also not too gloomy about the future of manufacturing: “If you’re a manufacturer and you’ve survived last few years, with the Australian dollar now below US80c and probably staying there, you’re going to start doing well.”
Hockey’s office nominate three industries as source of future jobs growth: financial services, infrastructure and high-tech manufacturing — pointing for example to the Sydney firm that makes RODE microphones, recently <a href="https://www.joehockey.com/media/transcripts/details.aspx?s=621">toured by the Treasurer</a>. The recent free trade agreements will help manufacturers too, Hockey’s office says.
A microphone-led recovery seems unlikely, but niche manufacturing stories are always like that. Most concerning for the likes of Xenophon (and Victorian independent Senator John Madigan, who let rip on submarines on Q&amp;A on Monday) is looming self-inflicted job catastrophes in industries like car manufacturing and shipbuilding, particularly if our next submarine is going to be built offshore.
Says Xenophon: “We are looking at a tsunami of unemployment with the auto sector in next few years. [The subs decision] will have a massive multiplier effect in terms of unemployment.”
Xenophon points to growth industries like food manufacturing, medical technology and backs calls for relief on penalty rates for small businesses in the hospitality sector. ”I think we should be looking in advanced manufacturing, taking head-on the dumping that occurs that kills jobs — we take a very narrow approach to the WTO rules. We need to have a strategic approach to infrastructure, and smart manufacturing. We need to make sure our subs are built here and I think we need to have incubators for SMEs to drive jobs growth — miniature silicon valleys in our capital cities.”
It’s not exactly a comprehensive jobs plan, but it’s better than cutting industry assistance, abolishing the carbon tax and praying — which seems to be the nub of the government’s strategy to date.
This story originally appeared on <a href="https://www.crikey.com.au/2015/02/06/where-are-all-these-jobs-abbott-is-supposedly-creating/">Crikey</a>.
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Where are all the jobs Abbott is supposedly creating?

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GUEST OBSERVATION
The move by the RBA to a<a href="https://www.rba.gov.au/statistics/cash-rate/" target="_blank"> record-low 2.25% cash rate </a>at its first meeting for 2015 has unsurprisingly reignited speculation of a <a href="https://news.domain.com.au/domain/interest-rate-cut-likely-to-turbocharge-sydney-houseprice-growth-20150203-134qd6" target="_blank">“turbo-charged” bubble</a> in Sydney’s house prices.
In actuality, the rate cut will not ignite a housing bubble and is the right policy given broader macroeconomic conditions.
While prospective property buyers in Sydney may feel the central bank has snubbed them, monetary policy is about a lot more than Sydney’s house prices. While pockets of Sydney have experienced high price appreciation in the past 12 months, this growth has not been experienced evenly across the city and certainly not across the country. <a href="https://www.corelogic.com.au/research/monthly-indices" target="_blank">Latest data from CoreLogic RP Data</a>, for example, show that while property prices in Sydney are up 13% over the past year, prices in Perth (2.56%), Darwin (1.40%) and Canberra (-0.34%) have barely kept pace with inflation in the 12 months to 31 Jan 2015.
This high variation in property prices across the country is a recurring theme in Australia. The figure below shows the average annual housing market returns to the east coast cities (SMB: Sydney, Melbourne and Brisbane) against non-east coast cities (APD: Adelaide, Perth and Darwin). For comparison, housing market returns in Sydney alone are also charted.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71256/area14mp/image-20150205-28589-fn4ndj.JPG"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71256/width668/image-20150205-28589-fn4ndj.JPG" alt=""></a>
Several facts become apparent in this analysis. Firstly, while price growth in Sydney has been high and increasing in the past year, it is not a bubble and is showing signs of cooling off. It also shows how the two-speed economy extends to housing markets.
Monetary Policy Is About More Than Sydney’s House Prices
The RBA cash rate is a blunt policy tool. The same rate applies to the housing market in Sydney as much as Perth, and to homeowners as much as small business owners, farmers and stock market investors. Adjusting the cash rate in order to target something as specific as house prices in Sydney is certainly not the appropriate response.
Rather the RBA has used the cash rate to target inflation. In the broader economy, there has been a significant easing in inflationary pressures. Commodity prices are falling, unemployment is creeping up and, most importantly from the RBA’s perspective, the consumer price index grew at its slowest rate since mid-2012 last year, slipping below the 2-3% target range.
Another common argument you will hear from the bubble-spruikers is that property investors are going to fuel price increases with lower borrowing rates. Over the past year credit growth to housing investors has grown relative to homeowners (<a href="https://www.afr.com/p/national/abs_admits_big_error_on_first_home_ucmamlfo725pG6fBM9JgKL" target="_blank">although subsequent data revisions indicate this difference was initially exaggerated</a>). However, this trend is unlikely to continue with rents steady and yields falling markedly in the past year. Where the average rental yield in Sydney in 2013 was over 4.25% it has fallen to under 3.9% in 2014.
Sydney rental yield:
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71257/area14mp/image-20150206-28594-1wn5gq7.JPG"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/71257/width668/image-20150206-28594-1wn5gq7.JPG" alt=""></a> 
It is the role of regulators and government, not the RBA, to consider issues such as housing affordability and equitable access. We are seeing other regulators, such as the Australian Prudential Regulation Authority (APRA), actively monitoring lending practices as a targeted response to risks in the housing market. Earlier this week, the Prime Minister also signalled that <a href="https://www.theaustralian.com.au/news/latest-news/foreign-investment-rules-set-for-overhaul/story-fn3dxiwe-1227205321823">issues around foreign investment would be considered by the government and Foreign Investment Review Board</a> in coming weeks.
Keep these facts in mind as the tea leaves of the RBA’s February Statement on Monetary Policy are read and you hear about the impending property bubble.
<img src="https://counter.theconversation.edu.au/content/37269/count.gif" alt="The Conversation" width="1" height="1">Danika Wright is a lecturer in finance at University of Sydney.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Hot air but no bubble following RBA rate cut: Danika Wright

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Back in November a little-noticed graph in Westpac’s 2014 profit result told an important story: the proportion of bad or worrisome loans on the banks books — in the jargon, stressed exposures as a percentage of TCE or total committed exposures — had dropped below 2008 levels, to 1.24%.
That is to say, Westpac had weathered the storm, the crisis was over. Rounding out the picture of a healthy bank were lower wholesale funding costs, higher net interest margins and record profits. And of course, Westpac and the other big banks had emerged from the crisis with much less competition from smaller and non-bank lenders.
<img src="https://media.crikey.com.au/wp-content/uploads/2015/02/tce.png" width="430" height="505">
Which is a roundabout way of saying the big banks did not have a leg to stand on when it came to passing on Tuesday’s 0.25 percentage point cut to the official cash rate by the Reserve Bank.
As though his life depended on it, Treasurer Joe Hockey made that crystal clear in his press conference yesterday afternoon, and you could hear the urgency in his voice on ABC Radio yesterday:
“The flow-through to the Australian economy is significant. And importantly, it must be immediate. And I say again to the Australian banks, pass it on in full now, not just to home owners, but importantly small business and credit cards as well.”
The Commonwealth Bank was the first of the Big Four to move, cutting standard variable home loan rates by 0.25 percentage points (and, interestingly, five-year fixed rates by 0.3 percentage points). Westpac quickly cut by an even higher 0.28 percentage points, and NAB, which has its rates under review, is certain to follow. ANZ customers will have to hold their breath since chief Mike Smith announced a year ago a stand-offish, stick-in-the-mud policy of waiting until Fridays (three days after the RBA meets each month) to announce any changes to interest rates, to stop bank-bashing treasurers, shadow treasurers and journalists berating the bank within seconds of any official rates move.
As they cut rates more or less in lockstep, however, the banks might be permitted a private grumble about mixed signals coming from the federal government and regulators. On one hand, David Murray’s Financial System Inquiry has just recommended the banks tighten home loan risk weights and retain higher levels of capital, to prevent another “too big to fail” moment requiring the kind of public bailout we saw in Australia with the bank deposit and wholesale funding guarantees or (much worse) in the United States, where the government spent trillions buying troubled assets and the Fed took equity stakes in the likes of Citigroup and Goldman Sachs to recapitalise them. The same pressure is felt internationally from the Financial Stability Board for example, and Australia’s big four — still among the world’s biggest banks — are key players in the debate.
Furthermore, the banks are being asked by Australian Prudential Regulation Authority (APRA) —  quite rightly, <a href="https://www.crikey.com.au/2014/11/03/bullying-banks-threaten-govt-over-price-signalling/?wpmp_switcher=mobile" target="_blank">as Crikey has argued</a>  — to toughen lending standards, particularly for those low- or no-deposit home loans originated by mortgage brokers on sales commission incentivised to maximise volume. As house prices surge — entering “new paradigm” territory with the likes of real estate agent John McGrath tipping that inner-Sydney suburbs will be “hot forever” — and self-managed super funds pile in, reducing housing affordability, right when income and jobs growth are receding, the systemic risk represented by some kind of house price slump increases. Tighter “macro-prudential” controls will hurt first home buyers struggling to get into the market, but they are necessary to stop borrowers over-committing on the false premise that prices only move in one direction.
On the other hand, despite this hawkish regulatory tendency, the second the RBA loosens monetary policy, we find ourselves screaming at the banks to “pass it on this instant!”. When it comes to the crunch, we all want easier money.
This story originally appeared on <a href="https://www.crikey.com.au/2015/02/04/hockey-bets-it-all-on-a-rate-cut-but-will-the-banks-save-his-bacon/">Crikey</a>.
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Hockey bets it all on a rate cut, but will the banks save his bacon?

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The Australian Electoral Commission released financial disclosure data for the 2013-14 financial year earlier this week, revealing that the single largest donor to the ALP was an unknown China-based person named Zichun Wang. 
Crikey can reveal that Zichun Wang appears to be the deputy general manager of Chinese property development firm Ever Bright Group, responsible for several large developments in Melbourne’s eastern suburbs.
Wang gave $850,000 to the national ALP Secretariat in two parcels that year, the largest donation to either party.
An article about the “mystery Chinese donor” in <a href="https://www.smh.com.au/federal-politics/political-news/mystery-chinese-donor-zi-chun-wang-tops-political-donations-with-850000-gift-to-labor-20150202-133ofe" target="_blank">Fairfax</a> provoked much speculation as to the identity of the generous figure, with Business Spectator <a href="https://www.businessspectator.com.au/news/2015/2/3/china/chinese-man-tops-list-australian-political-donors?utm_content=SocialFlow&amp;utm_campaign=EditorialSF&amp;utm_source=BusinessSpectator&amp;utm_medium=Twitter">discovering</a> links between Wang and Australian real estate investment.
But Crikey can reveal the man behind the money appears to be Melbourne-based Ever Bright Group’s deputy general manager.
Ever Bright Group is responsible for building a range of large property developments primarily across Melbourne and Shijiazhuang, the largest city in Hebei province. Property developers have been banned from donating to political parties in New South Wales since 2009, but there are no Victorian or federal rules against it.
It is unclear whether Ever Bright Group is state owned, though there is a Chinese state-owned conglomerate of the same name. The company’s published history on its website suggests it may be linked to the state-owned China State Construction Engineering Corporation. Careers website <a href="https://company.zhaopin.com/%E6%B2%B3%E5%8C%97%E6%B0%B8%E6%98%8C%E6%88%BF%E5%9C%B0%E4%BA%A7%E5%BC%80%E5%8F%91%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E4%BF%9D%E5%AE%9A%E5%88%86%E5%85%AC%E5%8F%B8_CC432198127.htm" target="_blank">Zhaopin</a> lists EBG as a private company.
The contact address given on the Australian Electoral Commission disclosure form for the donor is given as a housing block for retired Communist Party apparatchiks and bureaucrats in Shijiazhuang, as well as the Hebei Provincial Development and Reform Commission.
When Crikey called Ever Bright Group’s Melbourne office, the receptionist said Wang was currently in China, but gave the same contact email address as that supplied on the AEC return form.
The China-based phone number listed on the AEC form rings out.
The company’s website features a <a href="https://www.ebgcn.com/news1_details.aspx?nid=12021" target="_blank">news story</a> from March 2014 of Wang visiting Melbourne’s Carey Baptist Grammar school. Another <a href="https://ebgcn.com/news1_details.aspx?nid=12040">article</a> shows EBG Chairman Yuan Wan Yong meeting with Prime Minister Tony Abbott and then-Victorian premier Denis Napthine in June 2014.
Ever Bright Group’s Melbourne developments have included the controversial Stonington Mansion Estate in Malvern. The estate was previously used by Deakin University as a campus, but the university sold it to private developers in 2006 in the face of protests from Stonnington City Council and former federal treasurer Peter Costello. Ever Bright paid $30 million for it in late 2010.
The company is also responsible for the $110 million Lucia luxury apartments in South Yarra. Ever Bright’s website says the development should have been completed by late 2014.
<a href="https://www.businessspectator.com.au/news/2015/2/3/china/chinese-man-tops-list-australian-political-donors?utm_content=SocialFlow&amp;utm_campaign=EditorialSF&amp;utm_source=BusinessSpectator&amp;utm_medium=Twitter" target="_blank">As revealed by </a><a href="https://www.businessspectator.com.au/news/2015/2/3/china/chinese-man-tops-list-australian-political-donors?utm_content=SocialFlow&amp;utm_campaign=EditorialSF&amp;utm_source=BusinessSpectator&amp;utm_medium=Twitter" target="_blank">Business Spectator</a>, a search of usernames attached to Wang’s email address reveals a series of posts on forums by a Hebei-based user dating back to 2007 showing an interest in Australian property investments.
One comment stated: “Very interesting! I’m interested in investing, and will keep an eye on it!”
This article first appeared on <a href="https://www.crikey.com.au/" target="_blank">Crikey</a>.
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Meet the mysterious Chinese property developer giving a motza to the ALP

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GUEST OBSERVATION
Though markets had somewhat priced in an Australian interest rate cut yesterday, many analysts and commentators were still left surprised.
The rate had not been cut for 18 months. Over that period commentary varied over the entire gamut of the need for both increased and decreased rates. But the markets have until this point been largely satisfied with the expectation of little change.
This time the markets were concerned. The falling value of the Australian dollar showed their uncertainty about the likelihood of a move (although the direction was fairly well expected).
What can we learn from the market reactions and the extent of the cut?
Norwegian economist Tore Ellingsen and Swedish central banker Ulf Söderström <a href="https://www.propertyobserver.com.au/https://www.jstor.org/discover/10.2307/2677943?sid=21105778703003&amp;uid=2&amp;uid=3737536&amp;uid=4">have argued</a> that the behaviour of the <a href="https://www.investopedia.com/terms/y/yieldcurve.asp">yield curve</a> following a rate cut clearly indicates the nature of the surprise experienced by the market. To sum up, if the yield curve simply shifts this represents the extent to which the change in the interest rate reflects changes in the economic environment as assessed by the central bank. On the other hand, if the yield curve rotates this represents communication of changing preferences over the economic aims of the central bank.
This simplification of their theoretical model is useful in the current context. First of all, it is very evident that the Australian yield curve did not rotate in reaction to the news yesterday. There is no evidence the central bank has changed its preferences in relation to its economic aims. The rhetoric in the bank’s statement and the market actions as a result do not show any inconsistency with the policy concerns that all players in the market are familiar with. This should be comforting.
The fact that the yield curve shifted means the markets were surprised by the action to some extent. One mechanism of surprise can be that the markets are waiting for validation of the expert view in the market from the central bank in the face of considerable uncertainty – and this may well be the most compelling argument for the current action.
Many academic economists (myself included) <a href="https://cama.crawford.anu.edu.au/rba-shadow-board/outcome/2015-02">supported</a> a continuation of the 2.50% rate as the most appropriate path last week. However markets were unsure; in this case the cut seems to have served to increase transparency about policy and the economic situation, helping to anchor expectations. Taken to its extreme the transparency argument suggests that a central bank with strong rhetoric will almost never surprise financial markets, as expectations will be managed via other communication means.
So how does the Reserve Bank of Australia (RBA) perform in communicating its policy intentions in general?
New research in collaboration with former Treasury economist Edda Claus (based on a <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1538-4616.2012.00539.x/abstract;jsessionid=5A56AE7055E885361CBBEAEDA6877597.f03t01?deniedAccessCustomisedMessage=&amp;userIsAuthenticated=false">methodology we developed</a>), compared the policy surprises generated at the RBA, Bank of Canada and the US Federal Reserve over the last two decades, and found the RBA is less likely to surprise.
The RBA appears to be particularly good by international standards in providing clear policy guidance to markets and sticking with a consistent policy agenda. Even during periods of significant market stress, the changes in policy preferences and direction do not surprise the market to the extent evident in Canada and the US.
The global leadership of the US markets may explain some of the greater evidence of surprise in Fed actions, but the comparison between Canada and Australia is of considerable interest. Studies that use institutional factors to measure transparency clearly favour the Bank of Canada as more transparent than the RBA. Yet, the market evidence, which directly addresses the question of “do the markets understand the actions?”, clearly favours the strategies of the RBA.
The actions of the RBA in reducing the cash rate, accompanied by the rhetoric in the press release, seem to be part of the RBA’s consistent moves to clarify its current assessment of the economic situation for the market. This has reassured the market that there is no departure from its policy aims and agenda.
The reassurance that monetary policy is well in hand is likely to be a calming influence in what are unsettled international conditions over which Australia has no control. This has to be a good thing.
Mardi Dungey is professor of Economics and Finance, Associate Dean of Research, Tasmanian School of Business and Economics at University of Tasmania
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Why it's good for markets to second-guess the RBA: Mardi Dungey

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At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.25 per cent, effective4 February 2015.
Growth in the global economy continued at a moderate pace in 2014. China's growth was in line with policymakers' objectives. The US economy continued to strengthen, but the euro area and Japanese economies were both weaker than expected. Forecasts for global growth in 2015 envisage continued moderate growth.
Commodity prices have continued to decline, in some cases sharply. The price of oil in particular has fallen significantly over the past few months. These trends appear to reflect a combination of lower growth in demand and, more importantly, significant increases in supply. The much lower levels of energy prices will act to strengthen global output and temporarily to lower CPI inflation rates.
Financial conditions are very accommodative globally, with long-term borrowing rates for several major sovereigns reaching new all-time lows over recent months. Some risk spreads have widened a little but overall financing costs for creditworthy borrowers remain remarkably low.
In Australia the available information suggests that growth is continuing at a below-trend pace, with domestic demand growth overall quite weak. As a result, the unemployment rate has gradually moved higher over the past year. The fall in energy prices can be expected to offer significant support to consumer spending, but at the same time the decline in the terms of trade is reducing income growth. Overall, the Bank's assessment is that output growth will probably remain a little below trend for somewhat longer, and the rate of unemployment peak a little higher, than earlier expected. The economy is likely to be operating with a degree of spare capacity for some time yet.
The CPI recorded the lowest increase for several years in 2014. This was affected by the sharp decline in oil prices at the end of the year and the removal of the price on carbon. Measures of underlying inflation also declined a little, to around 2¼ per cent over the year. With growth in labour costs subdued, it appears likely that inflation will remain consistent with the target over the next one to two years, even with a lower exchange rate.
Credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months. The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.
The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies. It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy.
For the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. At today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate. This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target.
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Varying house price trends across cities: RBA Governor Glenn Stevens' rate cut statement

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If it happens, the sale of Harry Triguboff’s Meriton empire will probably stand forever as the biggest residential property deal in Australia, and make the the 81-year-old billionaire the richest person in Australia.
Gina Rinehart’s wealth, which <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.brw.com.au%2fp%2flists%2frich-200%2f2014%2fbrw_rich_list_gina_rinehart_m7ycsmzbKAfToPc7CQvJ5N" target="_blank">BRW reckoned was $22 billion in June</a>, is plunging in line with iron ore prices. Her ongoing family lawsuit, the cost of building her Roy Hill mine in the Pilbara, and non-receipt of half a billion dollars from the sale of her Galilee Basin coal interests aren’t helping her fortunes. Only yesterday America's <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.forbes.com%2fprofile%2fgina-rinehart%2f" target="_blank">Forbes magazine cut her estimated wealth</a> from US$18 to US$12 billion -- still enough to put Rinehart at the top of its list of the 50 richest Australians, but she's clearly peaked.
Triguboff, on the other hand, is on the rise thanks to booming property prices in Meriton's three key markets -- Sydney, Brisbane and the Gold Coast. BRW's Rich List <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.brw.com.au%2fp%2flists%2frich-200%2f2014%2fbrw_rich_list_harry_triguboff_eDO3uvrTTyl8oEGGsqxV4N" target="_blank">put his fortune at $5.5 billion</a>, and Forbes <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.forbes.com%2fprofile%2fharry-triguboff%2f" target="_blank">now ranks him as the second-richest Australian</a> after Rinehart, worth US$5.6 billion (up from US$4.3billion a year ago), trumping Frank Lowy and James Packer.
Triguboff's wealth is in Meriton, his privately owned apartment developer he built from scratch and owns outright. Triguboff, still hands-on, is well past the usual retirement age and has no clear succession plan.
Notwithstanding awards including his AO, colour always surrounds Triguboff, an imposing figure famous for blueing endlessly with tough Sydney lord mayors like Frank Sartor and Clover Moore, and near-constant controversy <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.smh.com.au%2fbusiness%2fproperty%2fmeritons-war-of-world-tower-20130104-2c8xn" target="_blank">over building and design quality</a>, Meriton's practice of vendor-financing and <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fgoddardsolicitors.com.au%2fmedia%2ffeud-hangs-regis-towers%2f" target="_blank">warring for control of bodies corporate</a>, and on and on. In one <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.smh.com.au%2farticles%2f2004%2f11%2f06%2f1099547432537%3ffrom%3dstorylhs" target="_blank">2004 case </a>Triguboff and his wife, Rhonda, were dragged before the Residential Tenancies Tribunal and ordered to pay almost $3,000 compensation to two of their tenants for failing to fix an oven in a Bondi Junction flat.
That 50-year career comes to a head with the touted sale of Meriton -- named after the street in Gladesville, in Sydney's inner-west, where Triguboff pulled off one of his earliest successful unit developments in the '60s.
Triguboff has been talking about selling Meriton for almost a year, most often to a mooted Chinese buyer like huge developer Country Garden, but no investment bank has been appointed to conduct a formal sale price, fueling scepticism in the market that a deal is even happening.
And as Jonathan Chancellor has <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.propertyobserver.com.au%2fforward-planning%2finvestment-strategy%2fproperty-news-and-insights%2f39600-harry-triguboff-s-hopes-hit-15-billion-for-meriton" target="_blank">pointed out</a>, the asking price keeps going up, from <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.afr.com%2fp%2fbusiness%2frich_lister_harry_triguboff_mulls_dMyzinTOaL5wJ60cTWElzI" target="_blank">$6 billion in April 2014</a> (although that was just the development business) to <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.propertyobserver.com.au%2fforward-planning%2finvestment-strategy%2fproperty-news-and-insights%2f37329-meriton-s-harry-triguboff-says-10-billion-is-his-asking-price" target="_blank">$10 billion by October</a>, to $12 billion then -– in an interview with <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.theaustralian.com.au%2fbusiness%2fharry-triguboff-wild-about-a-15bn-deal-on-meriton%2fstory-e6frg8zx-1227197593769" target="_blank">The Australian this week</a> -- the eye-popping figure of $15 billion.
That asking price would make Meriton worth more than listed developers like Mirvac, which has a market capitalisation of $7 billion (a multiple of 15 times next year's expected earnings), Lend Lease (capped at $9 billion or 14 times forward earnings) or Stockland ($10 billion capitalisation, or 16 times earnings). None of these are directly comparable to Meriton, however.
Just before Christmas, for the first time in its history, Meriton <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=6Vuz3msqDUSirtnFTsQa2bZBHyilENII1T2qCVyKyyrj6xxQrqmi-0DoOY6coE1pjaWiB7KZWMQ.&amp;URL=http%3a%2f%2fwww.meriton.com.au%2fblog%2fmeriton-the-year-in-review%2f" target="_blank">put a value</a> on its net property assets including the thousands of apartments it owns, claiming they had leapt in value 21% from $6.1 billion to $7.4 billion in 2014. Meriton also said an external valuation by Grant Samuel (not released) suggested that the whole company was worth between $10 billion and $12 billion when recurring income was taken into account.
There is no way to verify these figures: Triguboff controls the Meriton empire through shareholdings in 10 private companies and dozens of directorships. He would not be interviewed for this story or respond to written questions, but company insiders told Crikey that Triguboff was in no hurry to sell Meriton, and if he were to sell, he would not split the company.
On the one hand, even as some of the froth comes out of housing markets, Triguboff is clearly hoping to get out at the top. On the other hand, the rapidly depreciating currency is making Meriton more attractive to an overseas purchaser.
Morningstar head of property research Tony Sherlock said that, accepting Meriton's stated $7.4 billion net asset value, a rough valuation of the whole business at $10 billion could be supportable, based on a set of plausible assumptions about the development business -- a 15% profit margin on sale of 3,000 units a year worth $600,000 each on average, less 30% tax, creates after-tax profits of $189 million per annum, which, at an earnings multiple of 12-14x, would value the development business at $2.3 billion to $2.6 billion. Whether those numbers are sustainable is anyone's guess.
Based simply on the numbers that have been canvassed publicly, Sherlock says, there will be "no interest at $15 billion, casual whiffs at $10 billion, and strong interest at $8 billion".
Sherlock does not think a sale will happen: "From a risk perspective an overseas buyer would feel more comfortable with the Australian dollar at 75c than 100c. But I think a lot of people think property is expensive, so why would you be rushing in to buy expensive assets? People want some value on the table, but at $15 billion, I think he's leaving none."
This article first appeared on <a href="https://www.crikey.com.au/" target="_blank">Crikey</a>.
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How much is Meriton really worth? Harry Triguboff's sale price possibilities

With $91 million in personal property holdings, are Queensland's politicans really unbiased?

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NAME: Anton Lawrence <img src="/images/2015/01/28/anton-lawrence.jpg" alt="" align="right">
POSITION: Senior Consultant
COMPANY: Atchison Consultants
OFFICE LOCATION: Melbourne
How long have you been in the industry?
26 years.
What's happening in the area you specialise in?
I specialise in helping property fund managers and other related fund managers build their businesses. It's an exciting time with many new players post the GFC and a large number of foreign entities wishing to participate in the Australian market.
Describe the most interesting commercial property you have worked on?
A shopping centre in Chicago which was having issues with a frozen river nearby that was causing the land (and by extension the walls of the centre) to buckle. Being able to view the problem while standing on the ice in the middle of the river provided an interesting perspective.
What are the ingredients to being successful in your job?
Having integrity and being honest in everything you do. Following through for your client. Your name always precedes you.
What aspects of your role do you enjoy the most?
Face to face communication. Technology is making this skill a challenge for some people.
Where would you invest a spare $750,000?
Anywhere but Australian residential property. I don't know when it will undergo a major correction but it will.
Which football team do you support?
I'm a rugby nut and was born in New Zealand. The All Blacks.
What's your favourite app or techno gadget?
I'm pretty boring. Most apps revolve around international news websites.
How do you use social media?
Very sparingly. As mentioned earlier I prefer face to face communication.
You can't read someone's body language too well on Twitter...
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In Profile: Atchison Consultants' senior consultant, Anton Lawrence

<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

Joel Robinson

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

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.

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;

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