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GUEST OBSERVATION
There is no one key factor as to why property costs what it does. Recently, people have been complaining that it's interest rates, international investment and a million other reasons as to why housing is unaffordable in Australia.
Negative gearing cops a lot of flack in the media, but the truth is a combination of factors are pushing prices up. Here are the other key reasons prices are rising:
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Interest rates One of the reasons prices have gone up is record low interest rates. Money is cheaper than previously and many investors see an opportunity to lock in interest rates. A 1-2% rise in interest rates will put a lot more pressure on investors and potentially increase the stock on the market. However at the moment, a lot of properties can be neutrally geared making financial burdens manageable. Fact: Variable mortgages were 17% in 1989. That is one way to starve off investors buying up all of the property.  
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International investment An astonishing amount of money has been invested in to Australian property. You hear these fanatics saying "Ban Asian investment!" However that isn't the solution. Surprisingly when the research was presented, international investment came from all over the globe. And where did the second largest amount of investment come from after China's $6 billion dollars in 2013? That's right, Canada, a country with a population of 35 million who invested just under $5 billion dollars last year. You haven't heard once for people to ban Canadian investment. The trick here is not to ban international investment, but to make it less attractive. Charging a higher exit fee on profit made off the property is one way, as well as increasing the taxes on international rentals received off an investment property.  
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Lack of supply The cold hard fact about why property is expensive is because of basic economics. The reason we read about property prices being pushed up is because more people want to live in some areas more than others.  Housing is not unaffordable in Australia, it just depends on where you want to live. You can buy a home further out of CBD locations, but you have to sacrifice your ideal location in order to do it. If the government incentivised people to sell homes, we would have more supply and balance the demand issue. At the moment, people buy homes either in their super account or as an investment and land bank them. They pass these on through their family and never 'realise' their investment. The solution is to create a greater incentive for people to sell. 
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Super is way to attractive Before negative gearing is abolished, there needs to be an investigation into allowing people to buy homes in their super funds. Currently, investors who have bought a property using super funds and decide to sell a property after they have started drawing down a pension, don't pay any capital gains tax. If you decide to hold your property in super, any rental income is taxed at 15% and then not at all during the pension phase. Solution: Tax people at a higher level when they claim revenue off their asset after claiming their pension. 
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There are multiple reasons why prices are currently so high. We need to collectively tackle everyone of these and stop complaining about each in isolation. If we make amendments to some of these, work on building out more avenues like the first home buyers grant, but on a larger scale, and decreased the attractiveness for investors, then we may actually get somewhere. Whatever the case is, it won't happen over night, and it will take work. 
Rocky Bartolotto is the national sales director for <a href="https://homely.com.au/" target="_blank" data-cke-saved-href="https://homely.com.au/">Homely.com.au</a> and a Sydney auctioneers, with over 4000 auctions performed through his business <a href="https://auctionservices.net.au/" target="_blank">Auction Services</a>.
Todd Schulberg handles all things marketing for <a href="https://homely.com.au/" target="_blank">Homely.com.au</a>.
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Four reasons property prices are rising higher and higher

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GUEST OBSERVATION
While Australian insurers are making hundreds of millions of dollars in profits, many North Queensland retirees are struggling to pay their strata insurance premiums. Locals say that insurance premiums for strata title unit buildings have risen 200-800% since tropical Cyclone Yasi. Many retirees are struggling to remain in their homes. 
The Insurance Council of Australia (ICA) recently put out a media release to stress that insurers aren't gouging their customers and that the pricing of insurance in Northern Queensland is reasonable. They need to take a look at the Change.com petition '<a href="https://www.change.org/p/help-north-queenslanders-get-fair-and-affordable-insurance-premiums" target="_blank">Help North Queenslanders get fair and affordable insurance premiums</a>'. On it they will find 83 year old retirees complaining that they cannot pay their bills as a result of insurance premium increases, others complain of strata insurance premiums quadrupling to $32,000 per annum and in one building 30% of owners say they are unable to pay the levies due to increased premiums.
To add insult to injury, the ICA also wants international competitors, who are expected to offer cheaper cover, to be locked out of the North Queensland market. Perhaps we should expect as much from an industry association committed to protecting its members’ financial interests. It takes guts to argue for maintaining the status quo but the ICA is defending an industry that has been condemned in the US for using unethical strategies to take advantage of their trusting clients for over 20 years now.
When a catastrophe hits, home owners and businesses expect their insurer to deliver on their promise to help them get back on their feet after a loss. Unfortunately most Australians would be unaware that since the 1990s, insurers have implemented strategies to maximise their profits by consciously deterring their customers from obtaining their legitimate entitlements. They do this by deliberately "low-balling" or discounting their clients’ claims or denying their insurance claims altogether.
These strategies, developed by professional management consultants, came to light in the US case of Hager v Allstate Insurance. Lawyers for Ms Hager alleged that Allstate Insurance offered claimants a simple choice when they made a claim: they could chose a gentle hand by complying and accepting a low ball offer or if they didn’t want to accept the offer, they could expect a blow from a fisted glove, in the form of years of protracted and expensive litigation.
This miserable strategy relies on the fact that most inexperienced claimants will drop off if their claims are denied or discounted as they do not have access to advice or have the resources to maintain a battle with their insurer.
So if you accept a pittance, then your claim will be processed promptly, otherwise you may fight for years. Here, you are likely to need lawyers to fight for what is rightfully yours.
It’s a simple plan that makes perfect sense to management consultants, but it goes against the principles of trust and faith upon which insurance was once based. Today, instead of paying out in good faith, insurance companies want to hang on to your money as long as they can so they can earn more profit on it.
The problem for retirees in North Queensland and for claimants around the nation is that the insurance industry is an extremely effective lobbyist and it has been extremely successful in looking after its own interests, often at the expense of its customers. Apart from employing lawyers to enforce their rights, there are few legislative protections for claimants.
Queenslanders deserve better than this. Because strata owners are forced to insure their property under state law, both state and federal governments have a duty to legislate to protect their citizens.
The proposal of the Commonwealth government to open up the market for strata insurance to appropriately qualified overseas insurers is a good one. But in addition, the federal government should monitor premium increases and demand that insurers explain why areas that have not been affected previously by flood or cyclone are being subjected to the massive increases in premiums.
George Newhouse is a leading human rights advocate and disaster insurance recovery department manager with <a href="https://www.shine.com.au/" target="_blank">Shine Lawyers</a>.
George was the Labor Party candidate for the seat of Wentworth at the 2007 federal election.
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The government must step in to fix North Queensland's strata insurance crisis

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Dodgy financial planners will soon be named and shamed on a public register, in a move to make the financial planning industry more transparent and protect businesses and individuals from poor advice.
The register forms part of the federal government’s response to a five-month parliamentary inquiry into the <a href="https://www.smartcompany.com.au/growth/economy/42786-cba-announces-chair-of-financial-planning-review-unemployment-rate-now-at-6-shares-up-on-open-midday-roundup" target="_blank">Commonwealth Bank scandal</a>, according to <a href="https://www.afr.com/p/business/financial_services/public_shaming_for_rogue_planners_QAMKyItad5ZUzx5jefubeJ" target="_blank">The Australian Financial Review</a>. 
It will include advisers’ names, their registration number, qualifications and professional association memberships. Any bans, disqualifications or enforceable undertakings will also be listed.
Finance Minister Mathias Cormann said in a statement the register will be up and running by March 2015, and will be funded by increasing the current ASIC lodgement fee for Australian Financial Services licensees from $5 to $44.
“Our goal remains to ensure that we have a robust but efficient financial services regulatory system, which is competitively neutral so that people saving for their retirement or managing financial risks through life can access high quality advice they can trust and which is also affordable,” he says.
“The government will continue to work with the industry working group and all other interested stakeholders on efficient and effective ways to keep lifting professional, ethical and educational standards across the financial advice industry.”
Mark Rantall, chief executive of the Financial Planning Association of Australia, said he welcomed the announcement.
“This is something we’ve been calling for many years and in fact it’s part of our 10-point plan to raise standards and trust in the financial planning industry,” he says.
“Consumers being able to find who has the highest qualification – and in this case a certified financial planner which is the gold standard, and whether they have had any action against them – is really important for transparency so consumers get advice they can trust.”
Rantall says one of the interesting things to look out for when further details come to light is how the register will define what constitutes a ‘professional association’ as opposed to an ‘industry association’.
“Clearly a professional association has ethics, regulations and enforcement and a commitment to ongoing education,” he says.
“Unless an organisation has that at the most robust level then they’re an industry association, not a professional association.”
Rantall says it is critical for SMEs to access sound financial advice, and the new public register is a step in the right direction.
“Running an SME is probably one of the most rewarding things to do, but also one of the highest risk areas where you’ve got your own capital on the line,” he says.
“You need to be on top of your numbers and getting appropriate advice to ensure your business is not only compliant, but also has a solid plan including cash flow analysis so that you give yourself the best chance of success.”
In May, a Melbourne man who claimed to be a financial planner <a href="https://www.smartcompany.com.au/legal/42175-melbourne-financial-planner-faces-court-over-100-million-fraud-charge" target="_blank">faced the Magistrates’ Court</a> for his 10-year involvement in a fraud scheme said to be worth $100 million.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Public register for dodgy financial planners aims to clean up industry

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GUEST OBSERVATION
Traditional funding sources are becoming inadequate to meet public transport demands in Australian cities, despite the broad economic and social benefits public transport brings, such as cost savings associated with reduced traffic congestion, productivity through improved job creation, competitiveness and livability.
In 2013 around <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Products/3218.0~2012-13~Main+Features~Main+Features?OpenDocument#PARALINK0">two-thirds of Australia’s population</a> resided in a capital city. By 2061, the Australian Bureau of Statistics forecasts this proportion will increase to <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/AUSSTATS/abs@.nsf/mf/3222.0" target="_blank">74%</a>. This population growth is creating pressure for public transport systems and infrastructure, and governments need to find alternative funding resources.
In Australia, governments face a funding shortfall, which is compounded by limited funding resources (low taxes) and competing priorities. Unfortunately, <a href="https://www.theage.com.au/victoria/abbott-warns-victorian-libs-no-money-for-urban-rail-20130404-2h8uj#ixzz30Fmd2jEb" target="_blank">the federal government in Australia has in some cases ceased funding public transport projects</a>.
New financing resource
The concept of “value capture” is being explored to help fill the hole left by the Commonwealth. <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1536-7150.2006.00474.x/abstract" target="_blank">Value capture</a> is the appropriation of some land value gains that result from the installation of specific public infrastructure improvements in a limited benefit area, and sees part or all of these revenues used to fund the improvements.
Before introducing value capture financing to fund public transport, we need to know the value of uplift that occurs as a result of different public transport infrastructure. To answer this question, we have been exploring how Brisbane’s ferries have influenced property values in the city.
Since four CityCat ferry systems were introduced in 1996, this influential system has grown to 23 terminals, 19 CityCats and 9 mono-hulled ferries. But what effect have they had on land values?
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If you get one kilometre closer to the ferry terminal that is expected to increase the property price an average 4%.
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Many ferry-oriented developments have been built to leverage off Brisbane’s CityCats and other ferries. Land developers have paid for part or all of the construction costs for the Regatta, Hamilton Northshore and Teneriffe terminals on the Brisbane river, to ensure ferries service their developments.
The challenge was to measure the effects for these ferry-oriented development areas, to see whether developers were justified in their decisions.
What are the property value effects?
We used property data for much of Brisbane to see what impact the ferry terminals have on property values, and found property prices tended to increase for properties located closer to the ferry terminals. If you get one kilometre closer to the ferry terminal that is expected to increase the property price an average 4%, excluding other factors.
The positive effects on house prices brought about by the ferries were particularly notable at the Regatta, Bulimba and Hawthorne terminals, and to a lesser extent at Mowbray Park. This suggests the combination of suburbs with mature terminals and a decade of ferry-oriented development has positive impact on house prices or property values. There were less effects around the nearby Norman Park terminal because it is only serviced by more limited, lower-frequency cross-river services.
Unexpectedly our study found a fall in property values around the Guyatt Park terminal, but we think this may be explained by the Green Bridge opening from Fairfield to St Lucia, which broke the monopoly on student housing in St Lucia, and which was not included in our study. No property uplift effects were observed at Teneriffe and at Hamilton North Shore, where development is still immature. It is still too early to say what the impacts will be there.
The effects were more muted at locations such as West End where redevelopment opportunities have been scarce, partly due to planning controls, and at the QUT Gardens Point and University of Queensland terminals dominated by higher education land uses.
Many properties that benefited from ferry proximity were also highrise apartments in the Brisbane central business district. Our research suggests that a one hundred metre decrease in the distance to the ferry stop would increase property values by between 4.9% and 13.1% in this location. This is a considerably stronger response than the 4% average increase across the broader study area.
Ultimately it appears property developers were justified in seeking to secure ferry terminals to service their developments. Governments may also be justified in bringing in land value capture mechanisms to help pay for terminals, vessels or operating costs in appropriate locations.
Barbara T.H. Yen is Research Fellow at Urban Research Program at <a href="https://www.griffith.edu.au/" target="_blank">Griffith University</a>.<a href="https://www.griffith.edu.au/" target="_blank"></a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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How the introduction of Brisbane's ferries affected property prices

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Everyone knows Harvey Norman co-founder Gerry Harvey will want to mop up the last of his debt, but the Australian Taxation Office will also be watching closely when the first of former mining magnate Nathan Tinkler's four stud farm auctions gets underway this Thursday.
The Tax Office has taken the unusual step of registering two mortgages over the stud farms following their recent deed of settlement with the coal baron.
Title searches show one deed relates to a $20.1 million debt, signed last month between the Tax Commissioner and Tinkler himself (and witnessed by his sister Donna), five Patinack entities, and the companies that own the Newcastle Jets A-League team and formerly owned the Newcastle Knights rugby league team.
A separate deed over a $19.5 million debt, signed in May, is between the Tax Commissioner, the Tinkler group of companies and four Patinack Farm entities.
Tinkler reportedly owed Harvey about $40 million and was forced to break up his beloved Patinack Farm operation after a touted $130 million sale to a Middle Eastern consortium, led by <a href="https://www.crikey.com.au/2014/06/17/the-shadowy-bizarre-company-that-bought-tinklers-stud/" target="_blank">mysterious Dubai-based Cibola Capital</a>, fell through earlier this year.
A four-day total stud dispersal sale at Harvey’s Magic Millions auctions on the Gold Coast netted $34 million. Reports suggested Harvey has either been paid in full or was close to being extinguished. It is unclear whether the Tax Office ranks ahead of Harvey, or vice versa.
Listing agents expect somewhere between $43 million and $60 million is likely to be recouped in the four stud farm sales over the next fortnight.
The <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.afr.com%2fp%2fbusiness%2fcompanies%2fcould_nathan_tinkler_get_rich_on_BxEbmluMbhwE6sxjmsXAyH" target="_blank">Australian Financial Review reckoned</a> the sales would leave Tinkler with a fortune of $50 million to “play with” but the tally does not include outstanding tax debts, or the other unpaid creditors lining up against him.
Auditors Ernst and Young filed a wind-up application against a number of the Patinack Farm entities in July, andCrikey is aware of numerous other claimants who say they are owed money by Tinkler.
Once a billionaire, Tinkler had hoped to use the proceeds of the Patinack Farm sale to fund a comeback in the coal industry, but <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.crikey.com.au%2f2014%2f08%2f27%2ftinklers-last-roll-of-the-dice-to-get-back-into-the-coal-game%2f%3fwpmp_switcher%3dmobile" target="_blank">a deal to buy the mothballed Wilkie Creek mine</a> from American giant Peabody Energy collapsed in August.
A former mine electrician from the Hunter Valley, Tinkler struck it rich in 2008 when he sold his stake in the Middlemount coal project to Macarthur Coal, reaping a $442 million cash windfall. In a giant shopping spree he snapped up mansions, jets, supercars and football teams and blew an unprecedented $300 million to establish his own racing dynasty, Patinack Farm, fulfilling a childhood dream. Over the past two years, Tinkler has lost control of most of his assets. The NRL <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.theherald.com.au%2fstory%2f2364195%2fgame-over-how-tinkler-lost-the-knights%2f" target="_blank">took ownership of the Knights in June</a>, and the Jets are for sale.
Patinack Farm, Canungra, Queensland, is the initial offering, with 447 hectares comprising four properties known as Wadham Park, Elysian Fields, Benobble and Sarahvale listed through LJ Hooker Surfers Paradise.
The price estimates for the four ­Canungra properties range from $18 million to $23 million in total.
LJ Hooker agent ­Cameron McPhie has advised at least five international buyers have inspected the property, with three from Hong Kong, and one from Europe and one from the US.
Next week, Patinack Farm's Hunter Valley ­complex, Richmond Grove Stud, a 1337-hectare property goes under the hammer, likely to fetch between $17 million and $25 million.
Patinack Farm's 1397-hectare Tremayne property in Broke will also go up for October 30 auction with sale estimates around $6-$9 million.
The final Patinack property Banoon, in Monegeetta, Victoria, has been scheduled for an October 31 auction with Keating Real Estate suggesting a sale between $2 million and $3 million, which would represent a loss.
*Paddy Manning is the author of <a href="https://mail.privatemedia.com.au/owa/14.3.181.6/scripts/premium/redir.aspx?C=b6s5zWgaskCYAkXPp0B8zl_qmxN0wNEIQdGKzACICvDHDfRs7iuOVZDgKgu4U1-85jyRe4DvcX0.&amp;URL=http%3a%2f%2fwww.blackincbooks.com%2fbooks%2fboganaire" target="_blank">Boganaire: The Rise and Fall of Nathan Tinkler</a>, published by Black Inc and available in bookstores now (RRP $29.99).
This article first appeared on <a href="https://www.crikey.com.au" target="_blank">Crikey</a>.
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Nathan Tinkler horse stud farm sales come with ATO mortgages

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Functional and stylish – don’t forget both elements There’s no point making something beautiful if it can’t be used in the way intended. Renovators should consider how a room is used as well as how it looks. Storage, access and use are just as crucial as giving something a contemporary, high end and luxury look. 
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Be firm with your suppliers Many couples in The Block Glasshouse were faced great difficulty trying to get materials, such as cabinetry, from their suppliers, leaving some installing it 45 minutes before completion time. Some strict words did assist with speeding up the process. It’s crucial to let your suppliers know your expectations. Leave plenty of time as a buffer for any delays. 
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Budget While many of the teams do well with budgeting, in The Block Glasshouse's office episode Carlene managed to max out their credit card earlier on in the piece by overspending on pricey fabric and making other extravagant purchases. Budget ahead of time, know where the bang for your buck items are. Think smartly about your spending choices. Some DIY furniture saved Michael and Carline in the end, using timber that was on site, however it could have worked out far worse. 
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Find a focal point The couples that did the best knew to focus on a “wow” factor, and focus the room around that point. Those that missed out dressed either all of their room too much (such as Chris and Jenna with too many plants) or not enough. Think of the point of difference – a clever skylight, or a canopy bed – and enhance this with your styling. 
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Teamwork Communication and strong team work are crucial when you’re suffering from lack of sleep, structural issues and a short time period. Many couples were unable to make decisions between them, or to trust each other to make choices. It’s crucial to stay in touch, to know whose is responsible for which task and to choose who will do what. 
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Fitout may fade, but aspect is forever. While Steve and Chantelle’s renovating skills in The Block Fans v Faves may have left a lot to be desired at times, their street-fronting apartment had that all-important north facing aspect. With windows all along their western wall and huge arched windows at the north, their apartment was flooded with light. Should they wish to, changing the apartment’s furnishings will cost the buyers relatively little. 
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Use the building’s natural features. Contestants in The Block Fans v Faves were lucky enough to makeover one of the most interesting buildings in Albert Park, the former Dux Picture Theatre. With townhouses and apartments in the suburb already in high demand, the rarity of The Block’s warehouse conversions were a huge pull for buyers and audiences. All four teams took advantage of this fact, playing up the industrial elements of their properties with complimentary timber work and exposed red brick. 
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Location matters, even in TV land The Block’s producers have an impressive track record now of picking buildings in blue chip inner city suburbs, where demand runs hot and residences are hard to come by. As buyers’ advocate Frank Valentic noted, the couple who purchased the winning apartment this series had been seeking a home in Melbourne’s inner south for some time. With The Block Glasshouse taking part in Prahran, it's clear they have continued this trend. 
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Treat your tradies well Trouble with tradies is a running theme across many of The Block seasons, as is those with the best tradie-relationships securing the best results. Poor planning meant that teams at times had to re-do their work with different tradespeople, while disputes in The Block Fans v Faves sees Alisa and Lysandra ditch one of their employees. 
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Reno smart, sell smarter With the least experience and the least money, The Block Fans v Faves' Steve and Chantelle relied on strategy, channelling their energies into the kitchen and living spaces and their master bedroom, two of the most valuable areas for buyers. But it was their clever choice to go last in the auction proceedings that was the couple’s best play, with high demand and low supply the perfect ingredients for a winning price.</li>
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10 novice renovator tips from The Block

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Governor Glenn Stevens' statement:
At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. 
Growth in the global economy is continuing at a moderate pace. China's growth has generally been in line with policymakers' objectives, though some data suggest a slowing in recent months. Weakening property markets there present a challenge in the near term. Commodity prices in historical terms remain high, but some of those important to Australia have declined further in recent months.
Volatility in some financial markets has picked up in recent weeks. Overall, however, financial conditions remain very accommodative. Long-term interest rates and risk spreads remain very low. Markets still appear to be attaching a low probability to any rise in global interest rates or other adverse event over the period ahead.
In Australia, most data are consistent with moderate growth in the economy. Resources sector investment spending is starting to decline significantly, while some other areas of private demand are seeing expansion, at varying rates. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend for the next several quarters.
Labour market data have been unusually volatile of late. The Bank's assessment remains that although some forward indicators of employment have been firming this year, the labour market has a degree of spare capacity and it will probably be some time yet before unemployment declines consistently. Growth in wages has declined noticeably and is expected to remain relatively modest over the period ahead, which should keep inflation consistent with the target even with lower levels of the exchange rate.
Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over recent months as competition to lend has increased. Investors continue to look for higher returns in response to low rates on safe instruments. Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise over recent months.
The exchange rate has declined recently, in large part reflecting the strengthening US dollar, but remains high by historical standards, particularly given the further declines in key commodity prices in recent months. It is offering less assistance than would normally be expected in achieving balanced growth in the economy.
Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years.
In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.
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Dwelling prices have continued to rise over recent months: Glenn Stevens' governor statement

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The Bank of Queensland has agreed to pay $17 million in compensation to victims of the <a href="https://www.smartcompany.com.au/growth/economy/18030-20101223-banks-to-fight-storm-legal-action" target="_blank">Storm Financial</a> scandal.
The Australian Securities and Investment Commission brought action against a number of banks in 2010 after it alleged the banks breached contracts and broke laws under the Trade Practices Act relating to the collapse of Storm Financial in 2009.
The collapsed company left debts of $88 million, with some customers losing their entire investments and homes through the scandal.
<a href="https://www.theaustralian.com.au/business/financial-services/boq-to-pay-17m-compensation-over-storm-scandal/story-fn91wd6x-1227066223358" target="_blank">The Australian reports</a>  the gross payment by the bank to settle the legal action will be $19.7 million, including $17 million for customers caught up in the scandal.
Acting chief executive Jon Sutton said customers eligible for compensation would be contacted and had the option of either accepting a settlement or remaining on their current repayment plan.
“We are pleased to have reached a resolution to this long-running issue and will now work towards providing certainty to the customers who were involved,” he said in a statement.
The Commonwealth Bank and Macquarie Bank have previously agreed to compensate customers.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Bank of Queensland to pay out $17 million in compensation to Storm Financial victims

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GUEST OBSERVATION
The unemployment rate is one of the most closely followed macroeconomic indicators.
Of importance in its own right, it tells us about the level of spare capacity in the economy and provides information about likely future developments in inflation.
Recent fluctuations in the unemployment rate have surprised many economists. In July, the unemployment rate jumped by 0.3 percentage points to 6.4% – its highest level in twelve years – only to be unwound in the August release.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59385/area14mp/gndjq2sw-1411017659.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59385/width668/gndjq2sw-1411017659.png" alt=""></a> ABS
The sharp increase in July may partially reflect measurement issues - the Australian Bureau of Statistics (ABS) updated the criteria to be actively searching for a position, although the ABS said the impact of this change was not significant.
The unwinding of this spike in unemployment in August was due to a surge of part-time employment – in fact the largest growth rate since the mid-1980s. The increase was so large that the ABS extensively checked the figures. However, the lift in part-time employment was evident in many dimensions of the data – it occurred both across the country (with the exception of the Australian Capital Territory) and across many age groups.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59386/area14mp/c33bsqdg-1411017876.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59386/width668/c33bsqdg-1411017876.png" alt=""></a> ABS
Amidst this considerable volatility, it is probably best to focus on estimates of the “trend” unemployment rate, which is also advocated by the ABS. The trend measure effectively smooths the data, down-weighting the recent observations.
However, trend estimates aren’t perfect – for example, as more data become available they can be revised. Also, by down-weighting the recent data they can miss turning points which policymakers might have otherwise wanted to react to in a timely manner. Bearing these caveats in mind, the trend unemployment rate in recent months has moved higher.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59387/area14mp/cc8z98s6-1411018041.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59387/width668/cc8z98s6-1411018041.png" alt=""></a> ABS
At around 6%, the trend unemployment rate suggests that slack exists in the labour market. Similarly, the trend participation rate – the ratio of people in the labour force (either employed or unemployed) to the population – recently has picked up, but remains below the levels of the late-2000s.
Structural issues
While as discussed in a speech by Reserve Bank of Australia Assistant Governor <a href="https://www.rba.gov.au/speeches/2014/sp-ag-160614">Christopher Kent</a> part of the decline in the participation rate probably can be explained by structural factors, such as the ageing of the population, a component is likely to be cyclical.
Recent <a href="https://www.rba.gov.au/publications/bulletin/2014/sep/pdf/bu-0914-2.pdf">Reserve Bank of Australia</a> model-based estimates also suggest that spare capacity currently exists in the labour market, but much less than occurred during the early-1990s recession. The Reserve Bank study also highlights the considerable uncertainty which surrounds these estimates.
The unemployment rate is a narrow measure of labour market slack – it abstracts both from people working fewer hours than they would like, or in a position that does not fully utilise their skills. The ABS tackles the first aspect in its measure of labour force underutilisation. As it is a broader measure, the labour underutilisation rate is always greater than the unemployment rate, although the wedge between them widened in the early 1990s recession.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59390/area14mp/nzfpfzym-1411018671.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59390/width668/nzfpfzym-1411018671.png" alt=""></a> ABS
We’re getting more ‘flexible’
This wedge widened with the onset of the global financial crisis, unwinding some narrowing in it which had occurred. An important part of the macroeconomic adjustment that occurred in Australia during the GFC was a reduction in average hours worked. This mitigated the rise in the unemployment rate and probably was facilitated by the more flexible nature of the labour market today relative to in the past.
The increase in the labour underutilisation rate over the past eighteen months has outpaced that in the unemployment rate. In the September quarter it exceeded the levels reached during the GFC, although it remains well below the high levels reached during the severe early-1990s recession.
The rise in labour underutilisation has not been uniform across all parts of the labour market. While typically labour underutilisation is much higher for those aged 15-24 compared to those 25 and above, and it increases sharply during either recessions or slowdowns, recently it has risen noticeably.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59392/area14mp/qf49y4bk-1411019346.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/59392/width668/qf49y4bk-1411019346.png" alt=""></a> ABS
The unemployment rate and the labour underutilisation measures show slack exists in the labour market, but much less than in the early 1990s. This slack is likely to hold down wages growth.
Private sector wages growth over the year to the June quarter was the lowest rate since the measure preferred by policymakers was introduced in the late 1990s. As wages, together with productivity, are the key factors which influence domestically-based inflationary pressures, these are likely to remain contained in the near term.
Tim Robinson is a research fellow at the Melbourne Institute, University of Melbourne<a href="https://theconversation.com/institutions/university-of-melbourne"></a>.
Tim Robinson is on extended leave without pay from the Reserve Bank of Australia. The views expressed in this article are his own.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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What's really happening with the unemployment rate?

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GUEST OBSERVATION
A “yes” vote to Scottish independence today would mean a great many things for Scotland, and also for England. But what would it mean for Australian business and financial markets?
It’s tempting to say “very little” — what do internal politics half a globe away have to do with us? Yet the Australian dollar strengthened markedly against the pound last week, almost surely due to a poll suggesting that the “yes” vote was ahead 47-45%.
To begin to understand what Scottish independence might do to Australian firms and markets it’s important to understand what it would do to Scotland and England. The key economic question here is what currency the Scots would use.
The pro-independence “team” has been pretty clear about this. They’ll keep using the pound. And it’s true that England can’t stop them — just as Australia can’t stop New Zealand from using the Aussie dollar.
At first this sounds sensible — the pound is a big, liquid currency. The Haggis — or whatever a Scottish currency would be called — would not be. Case closed, right?
Actually, no. Having a common currency without economic and political integration is a very, very dangerous thing. Monetary policy would be set by the Bank of England, presumably without reference to Scottish economic conditions. So if there was a recession in Scotland one would want lower interest rates, but unless England was also in recession of a similar magnitude the Bank of England would be unlikely to cut rates.
Worse, losing control of the ability to print money means that if Scottish debt got out of control it could not be inflated away. Ask Spain how that works out.
The risk for banks
Worse still, Scottish banks would no longer be implicitly guaranteed by England. This is a huge deal.
The events of 2008 taught us how quickly modern-day bank runs can happen, how devastating the effects can be, and how only overwhelming credibility can prevent disaster. Scotland wouldn’t have that — and England would have no incentive to help out. Even if England wanted to, markets would have to believe it, and that’s far from a sure thing.
So it’s clear Scotland would be in a dangerous economic position — not obviously in trouble right away, but without any macroeconomic fire extinguishers if trouble arises.
This is a potential worry for major Australian exporters to Scotland — but there just aren’t very many of those. Australian companies with operations in Scotland could be affected.
A notable example is National Australia Bank, whose subsidiary Clydesdale Bank is located in Scotland and could face higher borrowing costs under independence. NAB has said it would seek to <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-09-12/nab-clydesdale-bank-plans-to-leave-independent-scotland/5738822" target="_blank">shift</a> Clydesdale bank’s corporate registration to England in the event of a “yes” vote. But even in that case it’s a small part of the NAB.
The bigger concern would be if independence affects England in a significant way, since this is a bigger trading partner for Australia. As we saw last week, markets have rightly been concerned about the impact on England. At the very least there would be an 18-month plus process of “demerging” two countries, a process that would be complicated and distracting.
Keep calm
Yet, whatever the impact on England, it’s hard to see how it would materially impact Australian business. The pound might weaken relative to the Australian dollar, potentially hurting Australian exporters. Having said that, we would all do well to heed former treasury secretary Ken Henry’s advice on Tuesday to be less focused on the real exchange rate in this country. The impact of a modest devaluation of the pound just won’t make much difference.
Could independence lead to a major blow-up of the English economy? As we learnt in 2008, a major problem in any significant economy can quickly reverberate around the world. We are all interconnected now. A big problem in England could be a big problem for world financial markets, Australia’s among them.
This is possible, but it seems highly unlikely. England is a very large economy with its own currency and a broad web of international economic connections. Scotland is close, historic, and important – but independence is not likely to lead to an economic meltdown in England.
Perhaps it could change politics in England in a big way and this could have an effect. Perhaps a more conservative Tory leader would emerge. And perhaps that would lead to different economic policies. But that’s a lot of perhapses.
Demerging two countries would be wrenching. It would affect those countries — especially Scotland — in lots of ways, including economically.
Whatever the pros of a “yes” vote for Scotland, it would bring with it huge economic risks. And some for England, too. For Australia and Australian businesses, the risk is small.
<img src="https://counter.theconversation.edu.au/content/31724/count.gif" alt="The Conversation" width="1" height="1">Richard Holden is professor of economics at <a href="https://www.asb.unsw.edu.au/Pages/default.aspx" target="_blank">UNSW Australia Business School</a>.
<h5> </h5>
Richard Holden is an Australian Research Council Future Fellow.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. 
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Independence day? What a Scottish ‘yes’ vote would mean for Australian markets

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Joel Robinson

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

<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>

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.

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