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Charis Palmer  is deputy business editor at The Conversation
Emil Jeyaratnam is multimedia editor at The Conversation.<img src="https://counter.theconversation.edu.au/content/30272/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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How exposed are Australian banks? The infographic that explains Australian banks' exposure to commercial property

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PARTNER CONTENT
With a lot of the focus recently being on the growth within Sydney and Melbourne, Brisbane is sometimes overlooked as a location to purchase; both as an investment and as somewhere to live. We receive a lot of market commentary, and have compiled some of it here to answer the question of why Brisbane, and why now?
Looking at some underlying drivers of growth, the <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/Ausstats/abs@.nsf/mf/3218.0" target="_blank">Australian Bureau of Statistics</a> shows that population growth to 2013 for Queensland sits at 1.9%, which is above NSW at 1.4% and on par with Victoria.
On a side-note, despite this growth in the southern states, approvals for private sector houses fell nationally, but have actually risen in Queensland on average by 0.3%.
With the Queensland economy showing strong signs of life, bolstered by regional centres recording growth, the state government has identified $134.2 billion of infrastructure investment to occur in Brisbane over the coming years as a part of their statewide infrastructure plan.
This investment, amongst other things, is starting to pay off with Brisbane now appearing on <a href="https://monocle.com/film/affairs/quality-of-life-survey-2014/" target="_blank">Monocle’s</a> worldwide ‘Quality of Life’ survey for 2014. This survey measures a city’s intangible aspects, beyond simply the infrastructure that keeps it going. Melbourne and Sydney have been solid contenders over the years, however of note is that Brisbane appeared for the first time this year in the top 25 list.
<a href="https://www.rpdata.com/research/monthly_indices" target="_blank">RP Data</a> shows the southern cities experiencing growth over 10% in the past 12 months to July 2014, with Brisbane coming in at a strong 6.9%. This growth in the Sunshine state is tipped to increase in the coming months; with Brisbane being identified as only being at the beginning of its upward movement in its property cycle. <a href="https://www.bis.com.au/verve/_resources/Rel_RPP14_FINAL.pdf" target="_blank">BIS Shrapnel</a> states that the strongest growth over the next three years is forecast for the Brisbane market, where affordability has improved significantly after weak price performance in recent years.
The southern markets are also currently presenting a potential barrier to entry for buyers in the form of median house values, being $838,000 and $711,000 for Sydney and Melbourne respectively. <a href="https://www.rpdata.com/research/monthly_indices" target="_blank">RP Data</a> shows Brisbane as having a more affordable $496,000, or $399,000 for units, which would purchase a new two bedroom apartment 7 kilometres from the Brisbane CBD.
This combination of lifestyle choice, anticipated growth, improving infrastructure and price point has led investors looking north for the high yields and future growth potential. Owner-occupiers are also looking to Queensland along similar lines, and are looking to take advantage of the $15,000 Great Start Grant and the transfer duty discount for first homes.
With Queensland taking its place on the world stage with the upcoming G20 meetings and the next Commonwealth Games, Brisbane presents as ripe for investment and with the low property prices first home buyers are finding it easier to get onto the property ladder in the rising market.
ANDREW HERBERT is partner of <a href="https://myfirstplace.com.au/Property-Observer" target="_blank">My First Place</a>.
My First Place is offering a buyers club to support buyers in finding their property. For First Home Buyers there’s a package worth $4,200 that covers solicitor fees, mortgage application fees, building inspection, insurance and utilities. For investors the package is worth $3,350 and it covers solicitor fees, mortgage application fees, building inspection, landlord insurance and a depreciation schedule.
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Why Brisbane, why now?

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GUEST OBSERVATION
There is now keen interest in whether the US Federal Reserve will move to raise its near zero interest rates following two recent pieces of conflicting economic data.
Data on real GDP for the second quarter of 2014 indicate the US economy is growing at an annualised rate of almost 4%. This figure represents a marked turnaround on the negative growth rate for the first quarter of 2014. The average annualised quarterly growth rate for real GDP since the end of the <a href="https://www.nber.org/cycles">US recession</a> in the second quarter of 2009 is only 2.2%. So the 4% figure represents an above-average outcome.
Some preliminary evidence that the stronger US growth will be maintained into the third quarter of the year can be found in the latest <a href="https://www.markiteconomics.com/Survey/PressRelease.mvc/d4d22d88d4f54cf69dcc6e2fa12cb082">PMI</a> figures for July.
But despite the recent strong growth in real output, the consensus view remains that actual US output is still below its potential output, implying the continued existence of a negative output gap for the US economy (where the output gap is defined as actual output less potential output). The latest Congressional Budget Office estimates for potential output suggest a current output gap of about -4.5%.
Further evidence of a negative US output gap can be found in the unemployment rate, which stood at 6.2% for the month of June. The civilian unemployment rate reached a post-recession peak of 10% in October 2009 and has trended downwards since then.
At 6.2% the unemployment rate is still about 1.8 percentage points above its pre-2008 recession low-point. The current rate also lies above the average rate of 5.3% that was achieved during the 2001 to 2008 expansion.
Both these outcomes raise questions as to whether the Fed will soon end its unconventional monetary stimulus program of quantitative easing, and more significantly begin to increase its interest rate, more properly referred to as the Federal Funds (FF) rate, set just slightly above zero since the end of 2008.
Quantitative easing (QE) is a policy whereby the US Fed purchases longer-term assets - mainly mortgage-backed securities and long-term US Treasuries - with the ultimate objective of reducing long-term interest rates (if the Fed’s purchases bid-up the price of an asset it will reduce its yield). QE began during the GFC and continues today. Recently, the Fed has begun to taper the size of its asset purchases and at its end-July meeting the Federal Open Market Committee (FOMC) reduced the value of monthly asset purchases from $US 35 billion to $US 25 billion.
The other key variable for the Fed’s monetary policy setting is US inflation. The Fed has a stated target rate for inflation of 2% per annum. Standard measures of US inflation are the PCE (personal consumption expenditures) index - which showed year-ended inflation for the month of June at 1.6% - and the CPI (consumer price index) - which showed year-ended inflation for the month of June at 2.1%.
These are headline figures and like most central banks the Fed uses measures of underlying or core inflation as an indicator the general trend in inflation. One widely used measure of US core inflation is the PCE less food and energy, which increased by 1.5% in the year through to June.
Whatever measure is used, the inflation outcomes for the US since the end of the 2008 recession have generally been well below the Fed’s target rate of 2%. To date there has been little pressure from inflation outcomes for the Fed raise the FF rate.
The current unemployment rate and negative output gap are consistent with the view that resource utilisation in the US economy is still below some optimal/normal level. Provided that inflation and its forecasts do not move significantly above the Fed’s 2% target, this will tend to support a continued expansionary stance for monetary policy; with no immediate movement towards raising the FF rate.
A reading of the end-July FOMC Statement suggests that if current tends in US growth and inflation continue, the Fed will move to end its QE program, but may then wait some time to begin raising the FF rate.
Furthermore the process of returning the FF rate to some normal level - a rate approximately equal to the sum of the real interest rate and 2% inflation - is likely to occur via a series of small steps. Current expectations suggest the first increase in the FF rate will be in 2015.
For the Australian economy, the initial effects of rising FF rate are likely to be felt as downward pressure on the value of the Australian dollar.
 
Glenn Otto is associate professor at <a href="https://www.asb.unsw.edu.au/" target="_blank">Australian School of Business<img src="https://counter.theconversation.edu.au/content/30044/count.gif" alt="The Conversation" width="1" height="1"></a>. 
Glenn receives funding from the Australian Research Council.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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US interest rates: time for a change or steady as it goes?

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GUEST OBSERVATION
“With more and more Australians finding it difficult to break into home ownership, adopting the Canadian scheme would make a difference to thousands of Australians each year,” <a href="https://www.mortgagebusiness.com.au/breaking-news/7542-xenophon-to-introduce-fhb-changes">Senator Xenaphon said</a>.
“As HomeStart Finance said this week, there’s something strange about being able to access your super fund if you are about to default on your housing loan, but you can’t access it to put a deposit on a home in the first place,” he said.
Australia is in the midst of a <a href="https://housingstressed.org.au/get-the-facts/">chronic housing affordability crisis</a>. Housing price inflation has outstripped both rents and household incomes for over a decade, leading to a residential property market considered unaffordable both historically and internationally. Yet, instead of helping to resolve the crisis, Australia’s political class is apparently determined to maintain world-beating prices with poorly but purposefully designed policies to <a href="https://www.publicresearchinstitute.org/reportfiles/Economic/KeenTheGreatResidentialHousingDebateFinal.pdf">maximise prices</a>.
The public should ask “Are the property holdings of our federal politicians negatively influencing policy and causing them to ignore evidence?” The parliamentary register of members’ interests may help to answer this question, allowing for a summary report of real estate holdings for each Australian federal politician (which may be jointly owned with their spouse).
It is evident that politicians are heavily invested in the property game, with the 226 members in both houses of parliament with an ownership stake in a total of 563 properties – an average of 2.5 properties per member, conservatively estimated at around $300 million (563 multiplied by the median dwelling price of $530,000 as of <a href="https://www.macrobusiness.com.au/wp-content/uploads/2014/08/RP-Data-Rismark-Home-Value-Index-1-August-2014-FINALMK.pdf">July 2014</a>).
The real total is probably higher considering well-off politicians are likely to purchase real estate in prime suburban and coastal areas above the median (and not all property holdings are residential such as farmland and commercial properties). Property investment is popular across the political spectrum and is a common thread binding the normally divided and bickering politicians together.
<img src="/images/2014/08/06/Table1-1.png" alt="">
 
Australia’s federal political class own an enormous property portfolio, with only 13 of the 226 members (6 per cent) not holding any real estate. In the Senate, 76 members own a total of 202 properties – 2.7 properties per Senator – estimated to be worth around $107 million.
Further, 91 per cent of all Senators own real estate (57 per cent investment/commercial property/vacant land, 41 per cent owner-occupied and 2 per cent recreational), 75 per cent have a mortgage, and the top ten control a colossal 95 properties.
Senator Xenophon maintains an impressive portfolio of eight investment properties, along with Senator Barry O’Sullivan from the National Party who owns an incredible fifty properties (see Table 2). The high concentration of landed gentry in the Senate acts as a vested interest to pass policies which inflates housing (land) prices.
<img src="/images/2014/08/06/Figure1-1.png" alt="">
<img src="/images/2014/08/06/Figure2-1.png" alt="">
The 150 members in the House of Representatives also have substantial property interests. In total, they own 361 properties – 2.41 properties per member – estimated to be worth around $191 million. 
Moreover, 95 per cent of all Representatives own real estate (54 per cent investment/commercial property/vacant land, 43 per cent owner-occupied and 3 per cent recreational), 86 per cent have a mortgage, and the top ten own an astonishing 92 properties. Double-digit property holdings are maintained by David Gillespie (NP, 18 properties), Clive Palmer (PUP, 13 properties), Natasha Griggs (CLP, 12 properties) and Karen Andrews (LIB, 10 properties) (see Table 2).
<img src="/images/2014/08/06/Table2-1.png" alt="">
The trends in the data suggest a sizeable majority of federal politicians have a vested interest in maintaining high housing prices, particularly since most have mortgages over their own investments. A fall in housing prices may cause many politicians to fall into negative equity, providing a strong incentive for politicians to enact legislation which has helped fuel a <a href="https://www.australiaboomtobust.com/">housing bubble</a>, enriching owners.
When the top twenty members of the landed gentry in federal parliament own 191 properties, it is difficult to believe that politicians will address the real causes of housing unaffordability, despite the recommendations from <a href="https://www.propertyoz.com.au/library/A%20good%20house%20is%20hard%20to%20find%20report%20JUNE%202008.pdf">government reports</a>.
If federal senators like Xenophon are <a href="https://www.worldeconomicsassociation.org/books">looking for solutions</a>, the focus should be on negative gearing, capital gains tax concessions and exemptions, liberalised SMSF and foreign property investment, first home owner grants and boosts, deregulated bank lending, land-banking, town planning, local infrastructure and development levies and the absence of a uniform land value tax.
The property-rich Senate and House of Representatives cannot be trusted to act in good faith on matters concerning real estate. Aversion to evidence-based housing policy has a long and tortured history, owing to federal politicians’ interest in maintaining the value of their collective real estate bounty, and also fearing a voter backlash following any substantive reforms that reduces prices, let alone the corrosive lobbying (legalised bribery) by the <a href="https://en.wikipedia.org/wiki/FIRE_economy">FIRE sector</a>.
Politicians regularly demonstrate flagrant ignorance of policies which lead to more affordable housing, having consistently implemented flawed reforms that actually increase prices. Negligence and indifference has become par for the political course, suggesting the direction of housing policy must be freed from the vested interests of an unrepresentative parliament.
 
<a href="https://www.australiaboomtobust.com/buy-now" target="_blank" title="Australia: Boom to Bust. Buy Now">Click Here</a> to purchase a copy of the book ‘Australia: Boom to Bust’ from your preferred book retailer. 
<a href="https://www.worldeconomicsassociation.org/books" target="_blank" title="Bubble Economics">Click Here</a> for a copy of Bubble Economics by Philip Soos and Paul Egan.
Lindsay David is a co-founder of clean technology company GreenRigCo and a former strategy &amp; business development consultant. Lindsay holds an MBA from IMD Business School.
Philip Soos is an economist and post graduate candidate at Deakin University. He has recently co-authored <a href="https://www.worldeconomicsassociation.org/files/Bubble_Economics_Egan_Soos.pdf" target="_blank">Bubble Economics: Australian Land Speculation 1830-2013 </a>with Paul D Egan.
Paul D. Egan was previously employed as a supervisor and policy officer at the state government level.
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The propertied federal politicians: Pollies and their $300 million property portfolio

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GUEST OBSERVATION
What is proposed? 
The proposal is an exemption from unnecessary real estate agent licensing requirements, and other regulation, for agents managing on behalf of ‘large professional commercial property owners’, including those agents managing for ‘related entity’ property owners (e.g. AMP’s shopping centre management arm managing on behalf of AMP-owned shopping centres).
Why shouldn’t these agents hold a real estate agents license? 
The real estate agents license is exclusively oriented to residential real estate and teaches the holder nothing about commercial property work. Large commercial property owners (such as Dexus, AMP Capital Investors and Stockland) understand fully the risks involved in commercial real estate transactions.
They do not need the protection of Parliament in their business affairs. All this does is add unnecessary costs.
Why not have a special license for commercial property? 
There is no need for a licence. Because the present license is irrelevant, large professional commercial property owners have instigated their own intensive on the job, and off the job, training for their staff.
The Property Council Academy also provides specialised professional development courses. The training of commercial property staff in Australia is admired around the world.
Will this have a major impact on commercial property? 
No. This will affect fewer than 1% of commercial property buildings and more than 96% of commercial building sales will be unaffected.
If it has such a limited impact, why bother doing anything? 
This is a major cost for commercial property owners since they have to send staff off to gain an unnecessary qualification and provide staff cover for them while they are doing so.
It also hamstrings them in making efficient staffing arrangements. This also means taxpayers’ money is being spent unnecessarily administering and enforcing this regulation.
What effect will it have on tenants? 
None. Retail tenants are protected by retail tenancy legislation (such as the Retail Leases Act) and this reform is supported by the major retailer associations. It has never previously been claimed that the estate agents legislation was a protection for tenants.
Are any other States doing this?  
Yes. The Queensland has already legislated for these exemptions in its new Property Occupations Act which is expected to begin operation in September.
The government said this was a major initiative to reduce business costs in Queensland. The Victorian government has also announced it will do the same, following a recommendation from its independent Red Tape Commissioner. 
Will this have any implications for home owners and home buyers? 
None. This does not affect residential real estate.
Will this have adverse implications for small and medium sized commercial real estate agencies? 
No. This will only benefit large commercial property owners. These do not use small commercial real estate agencies for their management. Those large commercial property owners who do use large third-party managers (such as JLL, Savills) will still opt to use those agencies because they bring professionalism and experience.
Why did State Governments require regulation and licensing of these large commercial property owners in the first place? 
This was regulation by historical accident. The original legislation was in existence prior to the rise of the professional commercial property industry in Australia and before the founding of companies such as Westfield (now Scentre Group) and Stockland. Because an agency relationship existed between these companies and their managers (even when the manager was a ‘related entity’) they were ‘caught’ by the legislation.
If this removal of regulation so minor, why are the Real Estate Institutes opposing it? 
Not all REIs are opposing. The REI Queensland supported the exemptions, although it specified a minimum threshold for defining a ‘large commercial property owner’. We agree with their minimum.
The attitude of the REINSW and REIV is puzzling since it will have such a limited impact. We have been told privately by some of their officials that they fear this will be the ‘thin end of the wedge’, leading to the removal of all licensing requirements for commercial property agents. They fear this will lead to more competition in the industry. This should not be a consideration for governments.
Is there a precedent for removing a portion of an industry from regulation? 
Yes. It is common for Parliaments to decide that there are entities that are large enough, and commercially sophisticated, to look after themselves in commercial transactions.
For example large retailers (those whose floor space is more than 1,000 square metres or whose rent exceeds a certain threshold) do not get the protection of the Retail Leases Act.
Parliaments decided that retailers such as Coles and Woolworths do not need the protections of this legislation, which was to be confined to ‘small retailers’. This is the same.
Companies as large as AMP and Lend Lease do not need to be protected in business dealings with their managers.
Is this being rushed through? 
No. Debate on this issue has been going on for more than 10 years. The ‘related entity’ exemption has been recommended (twice) by the NSW Independent Pricing and Regulatory Tribunal (IPART) and by the independent Review of the NSW Property Stock and Business Agents Act. 
Both the ‘related entity’ and ‘large property owner’ exemptions were recommended in the Regulatory Impact Statement on the proposed national license for real estate agents. Both exemptions were recommended in Queensland by the Red Tape Reduction Review of the Property Agents and Motor Dealers Act, which led to the exemptions being legislated in Queensland (see Q.6). 
Milton Cockburn is an adviser to Shopping Centre Council of Australia.
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Why real estate agent licensing requirements for large commerical property owners are unnecessary 

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Governor Glenn Stevens' statement:
At its meeting today, the Board decided to leave the cash rate unchanged at 2.5%. Growth in the global economy is continuing at a moderate pace, helped by firmer conditions in the advanced countries. China's growth remains generally in line with policymakers' objectives. Commodity prices in historical terms remain high, but some of those important to Australia have declined this year. Financial conditions overall remain very accommodative. Long-term interest rates and risk spreads remain very low. Emerging market economies are receiving capital inflows. Volatility in many financial prices is currently unusually low. Markets appear to be attaching a very low probability to any rise in global interest rates, or other adverse event, over the period ahead. In Australia, growth was firmer around the turn of the year, but this resulted mainly from very strong increases in resource exports as new capacity came on line; smaller increases in such exports are likely in coming quarters. Moderate growth has been occurring in consumer demand. A strong expansion in housing construction is now under way. At the same time, resources sector investment spending is starting to decline significantly. Signs of improvement in investment intentions in some other sectors are emerging, but these plans remain tentative as firms wait for more evidence of improved conditions before committing to significant expansion. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend over the year ahead. There has been some improvement in indicators for the labour market this year, but it will probably be some time yet before unemployment declines consistently. Recent data showed an increase in inflation, with both headline and underlying measures affected by the decline in the exchange rate last year.  But 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 for some borrowers have continued to edge lower over recent months. Savers continue to look for higher returns in response to low rates on safe instruments. Credit growth has picked up a little, including most recently to businesses. The increase in dwelling prices has been slower this year than last year, though prices continue to rise. The exchange rate remains high by historical standards, particularly given the declines in key commodity prices, and hence is offering less assistance than it might 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% 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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Interest rates for borrowers have edged even lower: Glenn Stevens' August statement

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PARTNER CONTENT
Buying your first property can be one of the most exciting moments in your life.
All those times of declining invitations to shop, dine-out and have caramel syrup in your latte have finally paid off.
With your financial details and a sizeable deposit in hand, you head to your mortgage broker to get pre-approval before you start your search.
Something that you may not have known is that the deposit you have is about to shrink by somewhere between $5,000- $25,000 and there’s nothing you can do to avoid this.
When buying a property there are a number of professionals that you have to engage as well as services and fees that are required to be paid during the transaction. Some of the essential costs involved are listed below. All fees vary due to property, state or territory and your personal circumstances.
<ul>
<li>
Transfer Duty </li>
</ul>
Transfer duty is a government fee that must be paid on dutiable transactions for property. This varies between states and the type of property purchased and may be reduced by government grants. Fees range from $1,000 to $25,000 plus.
<ul>
<li>
Lenders Mortgage Insurance </li>
</ul>
This protects the lender in the unfortunate event that you default on your home loan. This will vary due to the structure of your loan and your deposit. Fees range considerably, so allow 3% of your loan amount.
<ul>
<li>
Settlement costs </li>
</ul>
Expenses during the settlement of the property, these include body corporate, rates and valuation shortfalls amongst others. Fees range considerably, so allow up to 3% of your purchase price.
<ul>
<li>
Conveyancing or Solicitor fees </li>
</ul>
Fees range up to $3,000 for legal advice and services throughout your purchase.
<ul>
<li>
Mortgage Application fees </li>
</ul>
This will cover the preparation of the loan and supporting documents, valuations and searches by your financial institute. Fees range up to $2,000.
<ul>
<li>
Building Inspection </li>
</ul>
This is a written account of the property that will give you an indication of any defects or problems. Fees range from $300-$900 plus, depending on services.
There are also a number of other fees that you may have to cover that can quickly add up. These include utility connections, home and contents (or landlord) insurance, moving services and even mail redirections. Some of the essential fees can be incorporated into your mortgage, but others have to be paid up front.
As a guide, be prepared to put aside 10% of the purchase price to cover the costs involved in buying your property. We’ve put together some scenarios for buying in Queensland and New South Wales as a first home buyer and as an investor to show the type of consideration necessary for a safe and financially stress free purchase.
<img src="/images/2014/08/01/fhb%20partner%20aug%201.jpg" alt="">
Purchase costs are something that first time property buyers are often unaware of and as a result overlook them when saving for their deposit.
Preparing to use 10% of the purchase price on additional costs can be daunting as you see your deposit suddenly dwindle. But it is best to find yourself with money left over after your purchase than scrambling around at the last minute asking family and friends to help cover the shortfall.
Andrew Herbert is partner of <a href="https://myfirstplace.com.au/Property-Observer" target="_blank">My First Place</a>.
My First Place is offering a buyers club to take care of some of the fees involved in purchasing.
For first home buyers there’s a package worth $4,200 that covers solicitor fees, mortgage application fees, building inspection, insurance and utilities.
For investors, the package is worth $3,350 and it covers solicitor fees, mortgage application fees, building inspection, landlord insurance and a depreciation schedule.
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Don't get caught unaware: Essential purchase costs can eat into your deposit

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<img src="https://counter.theconversation.edu.au/content/29843/count.gif" alt="The Conversation" width="1" height="1">
Charis Palmer is deputy business editor and Emil Jeyaratnam multimedia editor at <a href="https://theconversation.com">The Conversation</a>.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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Australia’s housing debt: The infographic that shows why we should be cautious

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Forget sea-changers and tree-changers, more and more people are moving to the cities, attracted to their amenities and the sort of “creativity” social theorist Richard Florida identified in his books The Rise of the Creative Class and Cities and the Creative Class.
But as our cities fill with more residential apartments towers, their new inhabitants discover that the city “lifestyle” they were initially attracted to comes with a price: other towers sprouting and spoiling their view, the noise of 4am garbage trucks, drunken revellers, doof-doof from nightclubs.
Melbourne City Council, more than any other city in Australia, has encourged the growth of its CBD population and promoted converting its once grungy network of laneways into places of cool with street art, cafes, and clubs with a 24/7 appeal. It even named one of these laneways AC/DC Lane.
For 14 years a live music venue in that lane, Cherry Bar, has been pumping with music seven days a week, presenting 1,100 acts a year. Its owner, James Young, says in that time it has not had one noise complaint but now a 12-storey, 189-apartment residential development behind it at 108 Flinders Street towers directly over AC/DC Lane as its north-facing balconies overlook the lane.
The tower’s new resident are due to move in next month and Young fears that one complaint about noise could see Cherry Bar closed down. He says the law is on the side of any “pop-up” complaint maker so he is soundproofing the venue but has launched a crowd-funding campaign to pay for half the cost of the works.
The PledgeMusic direct-to-fan campaign, launched last week will, he says: “mean Cherry is compliant with noise restrictions related to its brand new residential neighbours … PledgeMusic are taking care of all transaction fees and donating back five per cent of the campaign income to help save Cherry.”
Yesterday, Young announced that his campaign to raise funds to soundproof Cheery Bar was a roaring success, with over $50,000 pledged for the works.
On the launch of the campaign last week, we asked Young to to tell us more about being at the coal face of the noise issue which he claims is “the biggest issue globally facing music today”.
How much money do you need to raise from the pledge?
$40,000, which is just under half of the cost of soundproofing works.
How much does it cost to soundproof the Cherry Bar?
$90,000.
How complicated is it to soundproof?
Not complex. Costly. Double glazing windows, double-bricking walls, special ‘box’ entries.
How long does it take to install?
Not long, two weeks.
What guarantee do you have that music inside the venue will not be heard from neighbours?
We paid an acoustics expert a fortune to recommend the soundproofing so that we are ‘compliant’.
Do you have any sympathy for people who buy apartments without knowing about the bar (or indeed any other entertainment venue in the area)?
Yes, but the developers should be protecting them by paying for our works.
Have any of the developers approached you about their plans before they start their marketing?
No, of course not.
Do you know if they tell prospective residents to expect noise in the area from venues?
Sincerely doubt this, why would they? They want to sell and move on.
Do you know if the apartments at 108 Flinders Street are fitted with soundproof windows?
They are double-glazed, yes. But EPA measurements are taken from outside the window so Cherry would be rooted without soundproofing.
Do you think it should be a requirement that new residential buildings in recognised entertainment precincts be soundproofed?
No, just soundproof the source.
Are any of your residential neighbours supportive of the bar and the use of that part of town for entertainment?
Yes, the guy who donated $5,000 anonymously lives 100 metres from Cherry!
But installing soundproofing will not prevent people complaining if they complain about noise from patrons arriving and leaving, will it?
Sadly not.
You say that residential development is the biggest issue globally facing music today. That’s a big statement. Can you explain it more?
Physical music sales are dead. Live music venues are the epicentre of income and learning for bands. And these venues are under threat and being closed by new residential developments.
How are other cities are handling the resident/venue conflict?
Brisbane declared Fortitude Valley a “cultural cluster” exempt from normal sound laws!
Do you feel that the legal and planning system puts all the onus on you to deal with the problem and not the apartment owners?
At the moment, yes, but hopefully this will change soon.
What would the loss of the Cherry bar mean to live music in Melbourne?
Over my dead body will Melbourne lose Cherry. Rock ‘n’ Roll ain’t noise pollution … in AC/DC lane.
This article first appeared on <a href="https://dailyreview.crikey.com.au/" target="_blank">The Daily Review</a>.
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Cherry Bar to rock on, but live venues still threatened by residential developments

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GUEST OBSERVATION
Having led the world in the 1990s in embracing defined contribution retirement plans, Australia now is rightly reviewing whether the design of its retirement income system is meeting the needs of Australians living in retirement.
David Murray’s interim report into Australia’s financial systems noted the particular strengths of this three-pillar system, which comprises the age pension, compulsory superannuation guarantee and voluntary private savings. With more than A$1.8 trillion of assets under management, Australia now has the fourth largest private pension pool in the world. The questions, as the Murray report identified, are around the complexity, efficiency and efficacy of the system.
The fact is Australians are not only living longer, they are seeking greater choice and control in managing their retirement arrangements and need cost-effective products that meet their income needs over many decades after stopping full-time work.
The problems with the current system, as I see it, are two-fold: One is around the lack of meaningful information given to consumers and the other is around the stated lump sum goal of most superannuation plans. Unlike the old employer-sponsored defined benefit plans, the defined contribution (DC) plans that dominate in Australia and in the US market transfer the investment and other risks from companies to employees.
My view is that putting relatively complex decisions in the hands of individuals with little or no financial expertise is problematic. While some say the answer is increased financial literacy, it is simply unrealistic to expect people to make decisions about strategies that challenge even seasoned investment professionals. To use an analogy, when we service our cars, the mechanic does not expect us to be able to understand how the fuel injection system works. Most of us just want a vehicle that gets us safely and reliably to our desired destination.
It’s the same with our retirement plans. It really makes no sense to ask individuals to make complex choices about risk exposures and asset allocation, for instance.
The second problem is the goal itself. The language around DC investment is about asset value. People are trained to see the key metric as the size of their fund pool, when what really matters to them is whether they will have sufficient income in retirement to live the lives they want to live.
If an individual’s pension savings are invested to maximise capital value at time of retirement and her personal goal is to achieve a reasonable level of retirement income, there is a clear mismatch involved.
In the view of the superannuation fund, the relevant risk is portfolio value. But the risk for the individual is uncertainty around retirement income. How do we solve this dilemma? The answer is to adopt a liability-driven investment strategy that is equivalent to how an insurer hedges an annuity contract or how pension funds hedge their liabilities for future retirement payments to members. Nearly a quarter of a century since Australia moved to compulsory super, the financial technology now exists to invest individual super contributions this way. Each fund member would still get a pot of money at retirement and would still have the same choice over their savings they have under current DC arrangements. The difference is the value of the pot would be obtained through a strategy meant to maximise the likelihood of achieving the desired income stream.
Moving to this income-focused strategy would require changes not only to the way super plans actually invest their members’ money but also to how they engage and communicate with savers.
Instead of being asked complex (and meaningless) questions about asset allocation, members would be asked three simple questions – their retirement income goal, how much they can contribute from current income and how long they plan to work. Of course, the asset allocation is important, but this only a factor for achieving success. It is not a meaningful input for the choices the consumer actually makes. Once these variables are known, the fund need only regularly communicate to the member the probability of reaching her goal. To increase that probability, the fund member has only three choices – save more, work longer or take more risk. There are no other ways.
The gap between what exists and what Australians need was highlighted by the Murray inquiry interim report, which noted that the current focus on lump sum balances in the superannuation system is evident in the absence of retirement income projections from annual statements to members.
“For many people, income projections, while difficult to calculate, would be far more useful than total accrued balances,” Murray said.
As someone who has spent much of his professional life researching this issue, I can only agree. Ultimately, what Australia needs is an approach to superannuation that uses smarter products rather than trying to make consumers smarter about finance.
Robert C. Merton is Nobel Laureate, Professor of Finance, School of Management at <a href="https://theconversation.com/institutions/massachusetts-institute-of-technology">Massachusetts Institute of Technology</a>.<img src="https://counter.theconversation.edu.au/content/29547/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Alongside his academic positions at MIT and Harvard, Professor Merton holds the post of resident scientist with global asset management firm Dimensional Fund Advisors. This article is drawn partly from his recent essay in the Harvard Business Review on the retirement planning challenge.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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Superannuation: make income the outcome

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&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.

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 international 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.

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