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Australia needs to change the way it assesses potential infrastructure projects, to ensure that governments can better understand which road and rail projects are worth building.
One way would be to make long-overdue changes to how we value the impact of infrastructure on future generations. This is done through the choice of a “<a href="https://www.investopedia.com/terms/d/discountrate.asp" target="_blank">discount rate</a>” – the mechanism used to compare costs and benefits of projects that occur at different points in time.
Australian governments have chosen to keep their central discount rate at 7% since at least 1989. This is despite one of the key components of the discount rate, the real borrowing rate, varying from as high as 8% to below 1% in this time.
The <a href="https://grattan.edu.au/report/unfreezing-discount-rates-transport-infrastructure-for-tomorrow/" target="_blank">latest report</a> released by the Grattan Institute recommends that governments adopt discount rates that change when the world changes, and that reflect the riskiness of a project.
While the concept might seem arcane, using an artificially high discount rate muffles the signal that tells governments what projects are worth building and which ones aren’t. Using the wrong discount rate probably means we build the wrong infrastructure.
<h2>Costs and benefits</h2>
A future benefit or cost needs to be converted into today’s dollars because future dollars have a different value to today’s dollars. This is because, even ignoring the effects of inflation, people value a dollar today more than one at some future date.
When a transport project’s benefits mostly come about in the distant future, a high discount rate treats those benefits more sceptically than a low discount rate would.
The Melbourne Metro rail project provides a good example of the discount rate’s importance. If we use a 7% discount rate, as recommended by Infrastructure Australia, the estimated benefits are only a tiny <a href="http://infrastructureaustralia.gov.au/projects/files/Melbourne_Metro_Project_Evaluation_v2.pdf" target="_blank">10% larger than the costs</a>.
But using a 4% discount rate, the project will deliver benefits that are almost two-and-a-half times greater than the project’s A$9 billion cost.
On one reading, then, the project is expected to be a major economic success. On another its value is marginal. Changing the discount rate has huge implications for the cost-benefit analysis of new projects.
The discount rate is also an important determinant of the mix of projects that governments consider. As you can see in the chart below, changing the discount rate changes the rankings of different projects.
<a href="https://images.theconversation.com/files/207620/original/file-20180223-108150-1xh6vfh.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip" target="_blank"><img src="https://images.theconversation.com/files/207620/original/file-20180223-108150-1xh6vfh.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<h2>Re-examining the basis for Australia’s discount rates</h2>
Discount rates are part of the appraisal and ranking of potential infrastructure projects. The discount rate is designed to reflect the next-best use of the resources for that project, and with the same level of risk.
The next-best project could be another project in the transport portfolio, in another portfolio, or even a financial investment overseas with the same level of risk.
Our report challenges the way Australian governments apply this framework. Instead of being frozen at 7%, discount rates should vary when there is material variation in the cost of money. In addition, discount rates should differentiate between projects that are more risky and those that are less risky. If we are comparing a low-risk project with a riskier one, then we’re comparing apples with oranges.
The cost of money is usually inferred from government borrowing costs, signalled by the 10-year Commonwealth bond rate. Back in 1989, when the 7% discount rate was established in Australia, the government borrowing rate <a href="https://tradingeconomics.com/australia/government-bond-yield" target="_blank">was 6.8% in real terms</a> (adjusted for inflation); in 2017, it was 0.8%.
Discount rates should reflect such a dramatic change in the cost of money.
The type of risk that matters for discounting is the sensitivity of a project’s expected returns to the economy generally – known as the <a href="https://www.investopedia.com/walkthrough/corporate-finance/4/return-risk/systematic-risk.aspx" target="_blank">systematic risk</a>.
Most government transport infrastructure is still used whether the economy is booming or in the doldrums, because most people keep on travelling to work or school and buying transported goods. But some projects are more sensitive than others to the state of the economy, and the discount rate should be higher for them.
If we incorporate risk and the cost of low-risk borrowing, the discount rate in 2018 should be around 3.5% for projects where systematic risk is low, and around 5% where it is high by the standards of transport infrastructure projects.
Both rates are substantially below today’s 7% standard central rate. Sensitivity testing remains important, of course, because precision is difficult.
<h2>Better evaluations</h2>
Lower discount rates will help to make clear which are the most valuable transport projects available. But they will also make the economics of all transport projects look better.
Our recommendations may therefore seem at odds with previous Grattan Institute analysis, which showed that Australian governments have <a href="https://grattan.edu.au/report/cost-overruns-in-transport-infrastructure/" target="_blank">systematically underestimated the cost of transport projects</a>, making many appear more attractive than they really were.
But our consistent goal is to improve all aspects of project selection and appraisal, so we can know which are the best projects to build and in what order. This accords with past work by both the Productivity Commission and <a href="https://bitre.gov.au/publications/2005/files/report_110.pdf" target="_blank">Bureau of Transport, Infrastructure and Regional Economics</a>, arguing that the discount rate is not the appropriate way to deal with optimism bias.
<img src="https://counter.theconversation.com/content/92265/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Ultimately, using an artificially high discount rate comes at the cost of distorting public policy priorities. We should be aiming to improve every aspect of evaluation wherever better approaches are evident, so we build the right projects in the right order. Better discounting would be a big step in that direction.
<a href="https://theconversation.com/profiles/marion-terrill-325786" target="_blank">Marion Terrill</a>, Transport Program Director, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a> and <a href="https://theconversation.com/profiles/hugh-batrouney-318476" target="_blank">Hugh Batrouney</a>, Fellow, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/smart-money-a-better-way-for-australia-to-select-big-transport-infrastructure-projects-92265" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

A better way for Australia to choose big transport projects

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Queensland Sotheby’s International Realty has recruited elite sales executives former franchise owners of Explore Property in Ashgrove, Kelly Qualtrough and Sean Wallis.
The duo are the latest top agents to join the company, following in the footsteps of Port Douglas’ Barbara Wolveridge and North Gold Coast’s Lisa Halpin.
“We are thrilled to have Kelly and Sean as part of our rapidly growing team, both of whom are committed to excellence and have values aligning superbly with the Queensland Sotheby’s International brand,” CEO Paul Arthur said.
“They are known through-out Brisbane’s North west. They are a welcome addition to our Paddington (Brisbane) team.”
In 2017, Qualtrough and Wallis were responsible for the transactions of more than 100 properties while also successfully operating a strong property management business.
“It was a difficult decision for us to close the doors on our own agency – we are dedicated to our clients and knew we had to align ourselves with people we respect and a brand that can help us make a difference” Qualtrough said.
The pair’s extensive rent roll is merging with that of Queensland Sotheby’s International Realty’s property management division, which is headed up by director Blake Farquhar. 
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Kelly Qualtrough and Sean Wallis recruited by Queensland Sotheby's

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An opportunity to acquire a significant parcel of level land at Westmead with development potential has hit the market.
Located at 93 Bridge Road, the site occupies 8,664 square metres of land and benefits from a 92.795 metre frontage along Bridge Road to the western elevation and 256.6 metres of combined local internal road frontages along the Northern and Southern boundaries of the property. 
The site is located in a gateway position close to the Westmead health district to the North and situated on the western fringe of the Parramatta CBD.
The existing improvements on the site comprise 31 single storey two bedroom villas. 
The site is underdeveloped subject to the provisions of the Parramatta Local Environmental Plan 2011 and benefits from a R4 High Density Residential zoning with an accompanying 1.7:1 floor space ratio and a building height of 20 metres allowing for up to six storeys of residential development. These existing provisions allow for the construction of circa 14,728.80 square metre of potential GFA.
They expect the very limited supply meant offerings such as 93 Bridge Road are sure to be keenly pursued by a number of local and offshore groups.
93 Bridge Road, Westmead is being sold through Savills Australia with offers due April 5 through Neil Cooke, director residential site sales at Savills Australia, and Stuart Cox and Johnathon Broome of Savills Australia.
Savills suggests a growing population, low interest rates, infrastructure spend and consumer confidence has seen values within Westmead, one of Sydney’s popular growth suburbs soar over recent years.
That growth is likely to continue its upward trend, ensuring new developments in Westmead remain highly desirable, it says.
Westmead’s location surrounded by hospitals, schools, transport links and the Parramatta CBD. 
Over $900 million has been allocated to the redevelopment of Westmead Hospital which will feature a new building, called The Central Acute Service Building as well as infrastructure upgrades and the recently completed eight level car park offering 1,250 spaces. The new Acute Service building will be completed by 2020.
Westmead is 22km west of the Sydney CBD and only 2km west of the Parramatta CBD.
Parramatta is commonly known as the geographical centre of Sydney and is a thriving metropolis of commercial and economic activity being the sixth largest CBD in Australia.
Major amenity upgrades have occurred around the railway station with the expansion of Westfield Parramatta (second largest retail complex in Australia), the creation of a new transport interchange and the ongoing development of the Parramatta Square
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/26/Westmead%20to%20Sydney%20CBD%20aerial.jpg" alt=""> 
Savills have recently noted there have been "very few development opportunities within the area" and only a handful of significant sites offered to the market in recent years.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/26/93%20Bridge%20Road_Westmead-%20site%20aerial.jpg" alt="">
 
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Demand for land soars in Westmead in Sydney's west: Savills

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GUEST OBSERVER
Australia should cut its immigration intake, according to Tony Abbott in a recent speech at the Sydney Institute. Abbott explicitly cites economic theory in his arguments: “It’s a basic law of economics that increasing the supply of labour depresses wages; and that increasing demand for housing boosts price.”
But this economic analysis is too basic. Yes, supply matters. But so does demand.
While migration has increased labour supply, it has done so primarily in sectors where firms were starved of labour, and at a time of broad economic growth.
Immigration has put pressure on infrastructure, but our problems are more a function of governments failing to upgrade and expand infrastructure, even as migrants pay taxes.
And while migrants do live in houses, the federal government’s fondness for stoking demand and the inactivity of state governments in increasing supply are the real issues affecting affordability.
The economy isn’t a fixed pie
Let’s take Abbott’s claims about immigration one by one, starting with wages.
It’s true that if you increase labour supply that, holding other factors that affect wages constant, wages will decline. However, those other factors are rarely constant.
Notably, if the demand for labour is increasing by more than supply (including new migrants), then wages will rise.
This is a big part of the story when it comes to the relationship between wages and migration in Australia. Large migrant numbers have been an almost constant feature of Australia’s economy since the end of the second world war, if not earlier.
But these migrants typically arrived in the midst of economic growth and rising demand for labour. This is particularly true in recent decades, when we have had one of the longest periods of unbroken growth in the history of the developed world.
In our study of the Australian labour market, we found no relationship between immigration rates and poor outcomes for incumbent Australian workers in terms of wages or jobs.
Australia uses a point system for migration that targets skilled migrants in areas of high labour demand. Business is suffering in these areas. Migrants into these sectors don’t take jobs from anybody else because they are meeting previously unmet demand.
These migrants receive a higher wage than they would in their place of origin, and they allow their new employers to reduce costs. This ultimately leads to lower prices for consumers. Just about everybody benefits.
There’s an idea called the “lump of labour fallacy”, which holds that there is a certain amount of work to be done in an economy, and if you bring in more labour it will increase competition for those jobs.
But migrants also bring capital, investing in houses, appliances, businesses, education and many other things. This increases economic activity and the number of jobs available.
Furthermore, innovation has been shown to be strongly linked to immigration. In the United States, for instance, immigrants apply for patents at twice the rate of non-immigrants. And a large number of studies show that immigrants are over-represented in patents, patent impact and innovative activity in a wide range of countries.
We don’t entirely know why this is. It could be that innovative countries attract migrants, or it could be than migrants help innovation. It’s likely that the effect goes both ways and is a strong argument against curtailing immigration.
Abbott’s comments are more reasonable in the case of housing affordability because here all other things really are held constant. Specifically, studies show that housing demand is overheated in part by federal government policies (negative gearing and capital gains tax exemptions, for instance) and state governments not doing enough to increase supply.
Governments have responded to high housing prices by further stoking demand, suggesting that people dip into their superannuation, for instance.
In the wake of Abbott’s speech there has been speculation that our current immigration numbers could exacerbate the pressures of automation, artificial intelligence and other labour-saving innovations.
But our understanding of these forces is nascent at best. In previous instances of major technological disruption, like the industrial revolution, the long-run effects on employment were negligible. When ATMs debuted, for example, many bank tellers lost their jobs. But the cost of branches also declined, new branches opened and total employment did not decline.
In his speech, Abbott said that the government needs policies that are principled, practical and popular. What would be popular is if governments across the country could fix our myriad policy problems. Abbott identified some of the big ones – wages, infrastructure and housing affordability.
What would be practical is to identify the causes of these problems and address these directly. Immigration is certainly not a major cause. It would be principled to undertake evidence-based analysis regarding what the causes are and how to address them.
<img src="https://counter.theconversation.com/content/92255/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">A lot of that has already been done, notably by the Grattan Institute. What remains is for governments to do the politically difficult work of facing the facts.
Robert Breunig, Professor of Economics, Crawford School of Public Policy, Australian National University.
Mark Fabian, Postgraduate student, Australian National University.
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/blaming-immigrants-for-unemployment-lower-wages-and-high-house-prices-is-too-simplistic-92255" target="_blank">original article</a>.
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Blaming immigrants for high house prices is too simplistic

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Mernda has experienced the biggest stock decrease over the past year according to Investar.
Investar suggests the stock for sale has decreased by 79%, from 500 houses this time last year to its current 102 offering.
The suburb's median house price sits on $480,000, according to CoreLogic. 
Investar puts it the suburb median rental at $365 a week.
A three bedroom Goulburn Street house has been listed for sale with $600,000 hopes (pictured below).
Close to the upcoming Mernda train station, the 79 Goulburn Street home comes with three bedrooms, kitchen with Caesar stone waterfall benchtops, and open plan meals/family area.
 Further benefits include ducted heating, split system cooling and alarm system with security cameras.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/26/70%20goulburn%20st.jpg" alt="">
A Mernda four bedroom house has been sold for $751,500 earlier this month (pictured below).
Situated within walking distance to parklands and within easy access to schools, supermarkets and train station, <a href="https://www.realestate.com.au/sold/property-house-vic-mernda-127488198" target="_blank">the 20 Chicory Street</a> home comes with large formal lounge/theater room, hostess kitchen with euro appliances, and large family room.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/26/20%20chicory%20st.jpg" alt="">
Another three-bedroom house was sold for $610,000 last year (pictured below).
It was sold by Rod Taylor and John Kalpakis form Ray White. 
<a href="https://www.realestate.com.au/sold/property-house-vic-mernda-126709370" target="_blank">The 15 Heals Road house </a>comes with three bedrooms, formal lounge and double steel garage.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/26/15%20heals%20road.jpg" alt="">
The new Mernda Train Station and proposed town centre are within walking distance.
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Mernda sees biggest stock decrease in Victoria

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Homes located within the catchment for some of Melbourne’s best public schools are achieving six-figure premiums, compared to neighbouring properties which fall just outside the zone.
The latest REIV data shows the median house price in highly sought after public school catchments is up to $400,000 more expensive than homes within a one kilometer radius of the zone.   
In the year to December 31, homes zoned for some of the city’s best primary schools recorded the largest price difference, with South Yarra Primary School leading the way. Homes within the South Yarra Primary School zone had a median price of $1,930,000 while properties bordering the zone had a median of $1,520,000 – a difference of $410,000.
Vendors of homes within the catchment area for Altona Primary School could also expect higher sale prices than those located just outside the zone. The median house price for those within the zone was $1,225,000 while neighbouring homes bordering the zone fetched $325,000 less.
In Bentleigh East, homes zoned for Valkstone Primary School were almost $250,000 more expensive than those within one kilometer of the school zone.
REIV President Richard Simpson said access to quality public schools remains a key factor for many buyers, which is delivering significant capital gains for homes located in these catchments.
“Parents of school-aged children are investing in the family home by buying into areas zoned for some of the city’s best public schools, rather than paying the equivalent in private school fees.”  
Camberwell High School experienced the largest price difference for secondary schools, with a difference of $289,000 recorded between those in the zone and those bordering the zone.
Homes located within the catchment of McKinnon Secondary College also achieved  significantly higher prices than those just outside the zone. The median house price for homes within the zone was $1,690,000 while those bordering the zone had a median price $235,000 less.
PRIMARY SCHOOLS
<table>
<colgroup>
<col width="228">
<col width="106">
<col width="140">
<col width="150">
</colgroup>
<tbody>
<tr>
<td>
12 months to Dec17
</td>
<td>
In School Zone
</td>
<td>
Bordering School Zone (1km)
</td>
<td>
Difference
</td>
</tr>
<tr>
<td>
South Yarra Primary School
</td>
<td>
$1,930,000
</td>
<td>
$1,520,000
</td>
<td>
$410,000
</td>
</tr>
<tr>
<td>
Altona Primary School
</td>
<td>
$1,225,000
</td>
<td>
$900,000
</td>
<td>
$325,000
</td>
</tr>
<tr>
<td>
Valkstone Primary School
</td>
<td>
$1,630,000
</td>
<td>
$1,385,000
</td>
<td>
$245,000
</td>
</tr>
<tr>
<td>
Fitzroy Primary School
</td>
<td>
$1,635,000
</td>
<td>
$1,400,000
</td>
<td>
$235,000
</td>
</tr>
<tr>
<td>
Hampton Primary School
</td>
<td>
$2,050,000
</td>
<td>
$1,860,000
</td>
<td>
$190,000
</td>
</tr>
<tr>
<td>
Llyod Street Primary School
</td>
<td>
$2,000,000
</td>
<td>
$1,870,000
</td>
<td>
$130,000
</td>
</tr>
<tr>
<td>
Preston West Primary School
</td>
<td>
$1,045,000
</td>
<td>
$952,000
</td>
<td>
$93,000
</td>
</tr>
<tr>
<td>
Hartwell Primary School
</td>
<td>
$2,001,000
</td>
<td>
$1,950,000
</td>
<td>
$51,000
</td>
</tr>
<tr>
<td>
Templeton Primary School
</td>
<td>
$997,500
</td>
<td>
$965,500
</td>
<td>
$32,000
</td>
</tr>
<tr>
<td>
Regency Park Primary School
</td>
<td>
$920,000
</td>
<td>
$903,000
</td>
<td>
$17,000
</td>
</tr>
</tbody>
</table>
SECONDARY SCHOOLS
<table>
<colgroup>
<col width="237">
<col width="96">
<col width="150">
<col width="141">
</colgroup>
<tbody>
<tr>
<td>
12 months to Dec17
</td>
<td>
In School Zone
</td>
<td>
Bordering School Zone (1km)
</td>
<td>
Difference
</td>
</tr>
<tr>
<td>
Camberwell High School
</td>
<td>
$2,399,000
</td>
<td>
$2,110,000
</td>
<td>
$289,000
</td>
</tr>
<tr>
<td>
McKinnon Secondary College
</td>
<td>
$1,690,000
</td>
<td>
$1,455,000
</td>
<td>
$235,000
</td>
</tr>
<tr>
<td>
Frankston High School
</td>
<td>
$778,400
</td>
<td>
$650,000
</td>
<td>
$128,400
</td>
</tr>
<tr>
<td>
Box Hill High School
</td>
<td>
$1,425,000
</td>
<td>
$1,335,000
</td>
<td>
$90,000
</td>
</tr>
<tr>
<td>
Mount Waverley High School
</td>
<td>
$1,407,000
</td>
<td>
$1,328,500
</td>
<td>
$78,500
</td>
</tr>
</tbody>
</table>
A three bedroom house in South Yarra Primary School Zone has been sold for $3.5 million earlier this month (pictured below).
<a href="https://www.realestate.com.au/sold/property-house-vic-south+yarra-127443318?cid=pdp:recent-sales" target="_blank">Located at 48 Fawkner Street</a>, the Victorian home is only 0.28 kilometres from the South Yarra Primary School.
It comes with three bedrooms, open plan kitchen and dining, and a sizable balcony.
Additional features include a sitting room, study, under stair storage lush courtyards and rear right of way parking access for two cars.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/27/south%20yarra%20primary.jpg" alt="">
A Stodart Street five-bedroom house, which is 0.66 kilometres from Camberwell High School, was sold for $5.5 million last year (pictured below).
Built in 1928, the 12 Stodar Street home comes with five bedrooms, a well-appointed Miele kitchen, informal living and dining rooms and private garden with heated pool and spa.
Willison station, parks, trams and schools, including Camberwell Primary School, Camberwell High School and Canterbury Girls Secondary College are within short distance.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/27/12%20stodart%20st.jpg" alt="">
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Camberwell tops school zones value benefit: REIV

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Melbourne ranked the top in both number of new listings and number of total listings in capital cities as February draws to a close, according to CoreLogic.
Melbourne fresh stock was up 1.2% on the same time last year with total stock up three%, according to CoreLogic.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/26/corelogic%203.jpg" alt="">
A new offering currently on the market is a one bedroom apartment in Southern Cross, which has been listed for sale with $438,000 hopes.
<a href="https://www.realestate.com.au/property-apartment-vic-melbourne-127693210" target="_blank">The 1403/200 Spencer Street apartment </a>comes with spacious bedroom, well-appointed kitchen and European laundry.
Located opposite Southern Cross Station and the Skybus, it is close to trams, the Queen Vic Market, restaurants and supermarkets.
Another offering listed by Selling Melbourne Real Estate is a two bedroom apartment with city views (pictured below).
<a href="https://www.realestate.com.au/property-house-vic-melbourne-123137606" target="_blank">The south facing 2207/80 A'Beckett St</a> apartment comes with two bedrooms, one bathroom and car parking space.
It also features in swimming pool, Sky lounge and resident amenities.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/26/melbourne.jpg" alt="">
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Melbourne stock levels up on last year: CoreLogic

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Set on an 800 square metre block in central Cannonvale, the three bedroom house has been sold by mortgagees for $272,000.
It was sold by Ellen and Bek from Ray white earlier this month.
It had last sold for $375,000 in 2006.
<a href="https://www.realestate.com.au/sold/property-house-qld-cannonvale-127313018" target="_blank">Located at 4 Grace Avenue</a>, the property features polished floorboards and a large entertaining deck.
There is plenty of car parking under the home and the potential to build in underneath and there is also space to put in a pool.
The suburb's median house price sits on $430,000 according to CoreLogic. 
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Cannonvale, Queensland offering sold by mortgagee

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The Melbourne food and beverage operator Beacon 88 has secured a five-year lease for its Albert Park premises.
It is a 160 sqm retail space on the ground floor of the residential complex at 88 Beaconsfield Parade.
Beacon 88 will open a high-end eatery leased at a net annual rent of $593 a square metre.
Knight Frank agent Paul Pellegrino brokered the deal for landlord, Pentas Property Investments.
<a href="http://88beaconsfield.com/vision" target="_blank">The building </a>was designed by Omiros One Architecture with a 4th floor lap pool and sun deck, overlooking the Melbourne CBD skyline, and provide a space accessible to all residents to enjoy the Port Phillip Bay view.
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Beacon 88 lease deal on Albert Park promenade

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In the ACT, the Leases (Commercial and Retail) Act generally applies to small commercial premises and premises being used for the sale of retail goods and services. However, the test for determining whether a tenant is offering retail services may not be as simple as you think. For example, it includes the provision of services to another business.
Who uses the goods or services?  When considering if goods and services provided by a tenant are retail rather than wholesale, the courts will consider who is using the goods and services. However, the question is not whether the consumer is the general public or another business. Instead the question is whether the consumer is the end user or the ultimate consumer of the goods and services.     For example, if the tenant is selling stationery to a business which uses the stationery, then the customer is the ultimate consumer and the sale of goods by the tenant is considered to be retail. If the tenant is selling stationery to a business which then sells the stationery in an unaltered state to a third party, the customer is not the ultimate consumer and the sale of the goods by the tenant is considered to be wholesale.     The same test is applied to services. For example in the recent case of IMCC Group (Australia) Pty Ltd v CB Cold Storage Pty Ltd [2017] VSCA 178, CB Cold Storage Pty Ltd (‘the Tenant’) operated a cool storage business using freezer warehouses and related facilities. The Tenant’s customers were usually companies in the food industry who paid a fee to store products such as dairy products, small goods, and seafood. The customers ranged from large primary production enterprises to small owner operated businesses.     IMCC Group (Australia) Pty Ltd (‘the Landlord’) argued that the customer was not the ultimate consumer as they would take the products from the cold storage, thaw them, cook them, and someone else would eat them. However, the court disagreed as the court was not deciding if the goods were retail but if the service was retail. The court found that the customers of the Tenant were the ultimate consumer of the services as the customers were not passing on the services in an unaltered state to a third party. Accordingly, the provision of the services by the Tenant was considered to be retail.     The court acknowledged that it may be difficult to contemplate circumstances where the provision of services is not retail. However, this does not change the decision.     Other examples  Some other examples of the use of premises which have been found to be ‘retail services’ are: 
<ul>
<li>pathology business </li>
<li>serviced apartments </li>
<li>function and conference centre </li>
<li>office and warehouse for logistic service and </li>
<li>a patent attorney office  </li>
</ul>
In all of these cases, it was found that the tenant was supplying a service to someone who is the ultimate consumer.     What are the implications?  If a tenant is using the premises for ‘retail services’ then in Victoria the Retail Leases Act 2003 may apply and in the ACT the Leases (Commercial and Retail) Act may apply.     In the CB Cold Storage case the Tenant used the Retail Leases Act 2003 (Vic) as the basis for successfully recovering land tax payments made to the Landlord.     Other implications of the relevant Act applying could be: 
<ul>
<li>tenants may be entitled to a minimum term of 5 years </li>
<li>landlords may not be able to recover outgoings </li>
<li>tenants may have a right of termination within the first 6 months of the lease </li>
<li>a rent review clause may be void </li>
<li>landlords may have broader repair obligations </li>
<li>tenants may be able to claim compensation for interferences with their occupation (including breakdowns in plant and equipment) and </li>
<li>implications for lease assignments, including the release of outgoing tenants in certain circumstances. </li>
</ul>
What should you do?  Landlords and tenants should consider the use of the premises and the services being provided by the tenant. It may be that, as in the CB Cold Storage case, the relevant Act applies to your lease of industrial or warehouse premises.     Meyer Vandenberg can be contacted here
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Are your leased ACT premises truly being used for retail services?

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

Staff reporter

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