<html><body>
EXPERT OBSERVER
Victoria’s virus flare up and subsequent lockdown has hit the south-eastern state’s economy hard. The implementation of level 4 restrictions in Melbourne and level 3 constraints in regional Victoria – including curfews – led to the shutdown of 90 per cent of Victoria’s shopping centres and retail stores in August, according to Kepler Analytics. So it’s no surprise that retail spending in Victoria fell by whopping 12.6 per cent in the month. According to Commonwealth Bank card spending data, Victorian credit and debit card spending plunged by 14.8 per cent in the week to August 14 from a year ago after being down just 0.8 per cent in the prior week.
The damage to Victorian businesses and workers from the two COVID-19 lockdowns is evident in the latest Statistical Area 4 (SA4) weekly payroll jobs data. Since March 14 (the week Australia recorded its 100th confirmed COVID-19 case) payroll jobs have decreased most in Melbourne’s Inner (-9.8 per cent), North-Western (-9.3 per cent) and Western (-8.7 per cent) suburbs. And regional Victoria hasn’t been spared with payrolls down 8.8 per cent in North-Western Victoria and the Mornington Peninsula (-8.5 per cent). Job losses also exceed 7 per cent across Geelong, Ballarat, Bendigo and Latrobe-Gippsland.
Victoria’s labour market scarring is likely to persist in the near term with skilled job vacancies falling 7.5 per cent in August – the only state or territory to post a decline in ads during the month. In Greater Melbourne job vacancies are down 44.6 per cent over the year to August.
Australia’s manufacturers have weathered the coronavirus shock better than most sectors of the economy. Despite manufacturing’s share of Aussie economic output declining from peaks of just under 30 per cent of GDP in the early 1960s to 5.6 per cent of GDP in 2019, its importance has been underlined by global supply disruptions (freight delays and import restrictions) during the pandemic.
Australia is making more hi-tech manufactured goods than ever before, including the manufacture of food, wine, beverages, vitamins, baby formula, building materials, mining machinery and medical equipment. In fact, the latest survey of purchasing managers shows that manufacturing activity rose to the highest level in 29 months in September, supported by a pick-up in production, sales, export orders and building capacity pressures.
Importantly, IHS Markit report that manufacturers employed more factory workers for the first time since November 2019. This is good news given that manufacturing is Australia’s sixth largest employer, employing around 852,800 (or 7 per cent of the total workforce).
What do the figures show?
‘Preliminary’ retail trade – August
‘Preliminary’ retail trade fell by 4.2 per cent in August after rising by 3.2 per cent in July. Retail spending is still up 6.9 per cent on the year and 6 per cent above pre-COVID-19 levels in February. The final August data is scheduled for October 2.
According to the ABS, “Victoria led the falls, down 12.6 per cent compared to July 2020. Stage-4 restrictions in Melbourne, and Stage-3 restrictions in Regional Victoria, restricted trading for non-essential retail businesses.
“Excluding Victoria, the rest of Australia fell 1.5 per cent from July 2020 to August 2020.
All industries fell, primarily driven by the Victorian result, although there were falls in most states and territories.
At the industry level, Household goods retailing led the falls, although sales in this industry remain 20 per cent above the levels of August 2019.
Clothing, footwear and personal accessory retailing, Department stores, and Cafes, restaurants and takeaway food services, also saw large monthly falls, with the largest falls recorded in Victoria. New South Wales saw a large fall in Cafes, restaurants and takeaway food services.
Food retailing saw a small fall, with mixed results amongst the states and territories.”
Regional payrolls – Week ending September 5
The Australian Bureau of Statistics (ABS) has released the regional (SA4) payroll indexes.
Between March 14 (date of 100th case of COVID-19) and September 5, payrolls fell most in Melbourne - Inner (-9.8 per cent). Thirteen of the 15 regions with the biggest declines in payrolls can be found in Victoria. Sydney’s City and Inner South also feature with payrolls down 8.3 per cent for the period.
Of the 15 regions with the smallest declines in payrolls over the period, seven can be found in Western Australia. Perth’s South-West recorded just a 1 per cent fall in payrolls from March 14 to September 5. But the New England and North-West region of NSW performed best with payrolls down just 0.9 per cent over the period.
Skilled job vacancies – August
In seasonally adjusted terms, the Internet Vacancy Index (IVI) increased by 1.3 per cent (or 1,700 job advertisements) in August to stand at 133,400. Despite this increase, job advertisements are 19.5 per cent (or 32,400 advertisements) below the level recorded a year ago.
In August, job advertisements increased in three of the eight occupational groups. The strongest gains were recorded for Professionals (up 2,300 or 5.8 per cent), followed by Clerical and Administrative Workers (up 350 or 1.9 per cent); and Managers (up 120 or 0.9 per cent). But ads fell most for Labourers (down 420 or 4.1 per cent).
Over the year to August, job vacancies for Machinery Operators and Drivers (up 480 or 6.5 per cent) and Labourers (up 180 or 1.9 per cent) lifted most and now exceed pre COVID-19 levels. But vacancies fell for the other six occupational groups, led by declines for Managers (down 7,300 or 34.4 per cent) and Clerical and Administrative Workers (down 8,700 or 31.4 per cent).
All states and both territories recorded an increase in job advertisements in August, except Victoria. NSW (up 2.4 per cent); Victoria (down 7.5 per cent); Queensland (up 0.4 per cent); South Australia (up 7.4 per cent); Western Australia (up 8.7 per cent); Tasmania (up 8.1 per cent); Northern Territory (up 6.8 per cent); ACT (up 8.3 per cent).
Over the year to August, job ads increased in Western Australia (up 1,700 or 10.6 per cent), South Australia (up 760 or 10.2 per cent) and Tasmania (up 30 or 1.9 per cent). All remaining states and both territories recorded falls in job advertisements over the year with the biggest falls in Victoria (down 21,200 or 45.7 per cent) and NSW (down 11,500 or 20 per cent).
Over the year to August, in three-month moving average terms, job ads increased in 20 of the 37 IVI regions. Dubbo &amp; Western NSW posted the strongest increase in vacancies (up 50.7 per cent), followed by Southern Highlands &amp; Snowy NSW (up 34.6 per cent), South-West Western Australia (up 32.5 per cent), Yorke Peninsula &amp; Clare Valley South Australia (up 26 per cent) and Fleurieu Peninsula &amp; Murray Mallee South Australia (up 24.2 per cent). But Melbourne recorded the biggest decline (down 44.6 per cent), followed by Sydney (down 38.4 per cent), Geelong &amp; Surf Coast Victoria (down 32.0 per cent), Ballarat &amp; Central Highlands Victoria (down 23.4 per cent) and Brisbane (down 20.7 per cent).
‘Flash’ IHS Markit Purchasing Managers’ Indexes (PMI) - September
The IHS Markit ‘flash’ PMI for manufacturing rose from 53.6 in August to a 29-month high of 55.5 in September. The services PMI lifted from 49 in August to 50 in September. The composite PMI rose from 49.4 in August to 50.5 in September. A reading above 50 indicates an expansion in activity.
According to IHS Markit economists, “The latest PMI data showed signs of stabilisation in Australia's private sector business conditions during September, with activity and sales increasing marginally after falling in August amid tightening containment measures to contain a surge in new infection cases. However, other survey indicators suggest that the rebound may lack legs going forward. The absence of capacity pressure led to a further and sharper decline in workforce numbers, highlighting the prospect of rising unemployment.
The survey also showed a divergence in the sectors participating in the economic recovery. Services business activity remained subdued, coinciding with weak sales as the sector was more adversely hit by COVID-19 restrictions. Meanwhile, manufacturing output continued to increase, supported by renewed growth in export sales.
Government spending on public works and expectations of an eventual easing of containment measures, including crossborder restrictions, boosted business sentiment, which rose to the highest for just over two years."
What are the implications for investors?
Yet another central bank has provided an update on its policy ‘tool kit’ – this time the Reserve Bank of New Zealand. Kiwi monetary policy makers have made it abundantly clear that they will implement negative interest rates if more stimulus is required to prop up the economy after Auckland’s virus setback.
As excitable Aussie investors reacted to Reserve Bank of Australia Deputy Governor Guy Debelle’s ‘monetary policy approaches’ speech yesterday by aggressively pricing in a rate cut to 0.1 per cent on October 6, Reserve Bank of New Zealand Governor Adrian Orr calmly reiterated that the Bank intends to hold the official cash rate at 0.25 per cent until March 2021 - as communicated on March 16. Governor Orr also suggested that instruments including a Funding for Lending Programme (FLP) and purchases of foreign assets are additional policy options, along with a negative official cash rate.
The divergence between Victoria and the rest of Australia continues. The re-opening of the NSW-South Australian border is encouraging with border closures - and associated restrictions - inhibiting the economic recovery. What is also positive is that recruitment activity in South Australia and Western Australia is now above pre-COVID-19 levels with Tasmania just 1 per cent below these levels in August. Regional areas outside of Victoria are performing better than their city peers with lower unemployment, more job vacancies and more stable housing markets.
The next few weeks are critical to the economic outlook. The Reserve Bank’s monetary policy meeting and Federal Government’s Budget are both delivered on October 6. Expectations for a co-ordinated policy response to Victoria’s health and economic crisis are growing. It appears that the Morrison Government will announce more infrastructure spending and bring forward personal income tax cuts at a time when the JobKeeper wage subsidy and JobKeeper government payments are reduced. But as yesterday’s weekly payrolls jobs data shows, a continued targeted approach in supporting small and medium sized enterprises (SMEs) is equally, if not more important. The acceleration of payroll losses (-1.9 per cent) for businesses with 20 or fewer employees between August 22 and September 5 will trouble policymakers.
Ryan Felsman is a Senior Economist at CommSec
</body></html>

j.ballantyne1990-6AQqhLzZaK

Victoria has dominated job losses as retail trade tumbles: CommSec's Ryan Felsman

<html><body>
EXPERT OBSERVER
It is crucial that the Federal Government continues to provide support to businesses and households in a year of unprecedented economic challenge.
However, whilst the decision to apply US-style Chapter 11 bankruptcy laws that will allow small businesses to trade their way out of insolvency is well-intentioned, it will do little to generate jobs and growth down the track.
In August, RBA Governor Phillip Lowe warned that a considerable number of insolvencies would emerge, with many businesses unlikely to recover from the ‘forced economic hibernation’ imposed in March.
That remains the case, regardless of any legislation that allows companies to continue trading while insolvent.
New CreditorWatch data has shown that new company registrations across Australia have increased by 10% in the July-August 2020 period. However, these companies will fail if they take on customers that are never going to survive without government support
.The focus should therefore be on those small businesses who have a viable capability of emerging from the COVID environment with their balance sheets intact and an ability to successfully trade without government support.
There’s a lot of uncertainty out there for creditors as they don’t quite understand how this will affect then.
Ultimately, if it helps businesses survive or at least flattens the inevitable insolvency curve, it’s a good thing. The government should be commended for working on such big policy changes in short pressure-filled time.
HARLEY DALE is the Chief Economist at CreditorWatch
</body></html>

Continued government support is crucial to save businesses: Harley Dale

<html><body>
A unit in the Brisbane’s Sherwood has been listed for mortgagee auction.
The one-bedroom, one-bathroom property, situated at <a href="https://www.propertyobserver.com.au/realestate.com.au/property-unit-qld-sherwood-134451686">411/6 Quarry Road</a>, was advertised as a mortgagee on realestate.com.
Offering open-plan living and dining, high ceilings and an expansive balcony, the home is ideal for an entertaining owner occupier.
<img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-24%20at%2010.35.00%20am.png" alt="">
Set on 81sqm, the home includes a laundry space and secure car accommodation for one.
The median value for a unit in Sherwood is $416,000, according to CoreLogic data.
RayWhite’s Georgia Pevy and Temeca Crous have the listing.  
The auction will take place on Wednesday, October 21.
</body></html>

Sherwood, Brisbane apartment set for mortgagee auction 

<html><body>
A home in Western Australia’s South Kalgoorlie has been listed for sale by mortgagee with a price guide of $165,000.
The four-bedroom, one-batrhoom home, situated at <a href="https://www.realestate.com.au/property-house-wa-south+kalgoorlie-134457942">33 Belgravia Place</a>, was advertised as a “mortgagee in possession” at realestate.com.
The 774sqm property comes with a open kitchen and living area and lounge.
A shed, about six metres by six metres, sits in the home’s backyard, offering workshop space or storage.
The home last traded for $190,000 in 2007.
It is located less than five kilometres from the Kalgoorlie-Boulder Airport.
The median sales price for homes in South Kalgoorlie is $250,000, according to CoreLogic data.
Goldfields agent Karen Wibberley has the listing.
</body></html>

South Kalgoorlie mortgagee home listed for minor loss

<html><body>
A large home in Booragoon, Western Australia has been listed for auction by mortgagee.
The five-bedroom, two-bathroom property, situated at <a href="https://www.realestate.com.au/property-house-wa-booragoon-134413786">207 Riseley Street</a>, was advertised as a mortgagee on realestate.com.
Booragoon is a southern suburb of Perth, located within the city of Melville.
Set on 766sqm of land, the home comes with two living areas and about 18.5 metres of frontage.
The home needs a complete renovation to lease out or to occupy.
According to CoreLogic data, the median sales price of houses in Booragoon is $820,000.
It is located close to Leach Highway and on a bus route to Westfield Shopping Centre and Applecross High School.
The home last traded for $740,000 in 2013.
Acton Applecross’ Monica Yeoh holds the listing, with the auction set to take place Saturday, October 17 at 11AM.
</body></html>

Booragoon, WA home listed for mortgagee auction 

<html><body>
The Newcastle and Hunter region property market has continued to hold steady through the ongoing pandemic, according to the August Herron Todd White (HTW) residential report. 
The valuation firm presented an 'investor playbook' of real estate performance. 
<div class="page" title="Page 31">
<div class="section">
<div class="layoutArea">
<div class="column">
Whilst buyer uncertainty has not stopped investors purchasing property, the volume of quality properties on the market has not fully recovered but it’s on its way, the report noted. 
"Property prices in Newcastle and Lake Macquarie rose ever so slightly in the last three month period even with the region shedding 24,000 jobs," the valuation firm said. 
Agents have noted that investors from outside of the region are showing interest in purchasing investments. With the pandemic and with people still working from home, investors looking for a sea change have Newcastle and regional properties under the microscope.
Property experts are predicting there could be market movement later in the year which we will be monitoring for future discussion.
"The good news is that properties in the areas are still selling even though there is less stock on the market. 
"The overall volumes are quietly increasing as we get further into the back half of the year. Areas around Lake Macquarie and Maitland areas are still popular for investors looking to buy land and build property," the valuation firm said. 
 Vacant blocks of land are still selling for similar prices before Covid 19 hit earlier this year, the report noted. 
The suburb of Eraring in Lake Macquarie saw the sale of one of the largest waterfront properties available.
The property at <a href="https://www.realestate.com.au/sold/property-house-nsw-eraring-132448006" target="_blank">17B Payten Street </a>(pictured below) was sold for an undisclosed amount which is believed to be around the $4 million mark which would be a suburb record and also one of the highest in the Lake Macquarie region.
<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/2020/9/14/eraring%20.jpg" alt="">
<div class="page" title="Page 32">
<div class="section">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 32">
<div class="section">
<div class="layoutArea">
<div class="column">
In the Port Stephens region north of Newcastle a property overlooking Dutchies Beach at <a href="https://www.realestate.com.au/sold/property-house-nsw-nelson+bay-132935906" target="_blank">2 Gloucester Street, Nelson Bay</a> (pictured below) recently sold for a record $3.195 Million which is the highest price paid in the Nelson Bay area for a residential property, the report noted. 
<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/2020/9/14/nelson%20bay.jpg" alt="">
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

Newcastle property market continues to hold steady: HTW

<html><body>
Overall retail trading conditions remain challenging for many local traditional shop front businesses, particularly in the Wollongong CBD, according to the latest report from valuation firm Herron Todd White.
The property valuation firm has seen a decline in foot traffic due to the COVID-19 pandemic and associated work from home directives still in place for numerous commercial office tenants.
Suburban retailers, particularly in the food and beverage sector, have seemingly benefited from the change in work patterns, reporting improved customer visits since the April lockdown, while many of the large national bulky goods retailers that have an online ordering system have been reporting strong sales figures.
Despite some serious initial concerns, retail leasing activity has not fallen off a cliff with many landlords still coming to terms with tenants albeit with higher incentives that typically include a rent free or rental discount period over the initial six to 12 month period of the lease term.
The report authors said, "It is our view though that the real test is still to come with many of the government programs and schemes to be wound back over the coming months."
"Sales activity remains at a low level with several sales occurring over the past six months in the sub $1 million range to owner-occupiers and only a couple of retail investment sales in the higher price range."
"Investors during these periods are typically seeking defensive assets with strong long term lease covenants with the market predicting a long period of low inflation," they concluded.
</body></html>

Local Wollongong retail property is struggling: HTW

<html><body>
Like most other assets, transaction volumes for Sydney retail assets can be seasonal, however volumes are more likely to be a response to economic drivers, according to the latest report from valuation firm Herron Todd White.
The property valuation firm found, buyer activity for retail assets is typically a result of several factors. These include local businesses looking to purchase their existing tenancies, owneroccupiers wishing to secure their location, investors seeking retail assets with strong, long term lease covenants, and demand from developers wishing to secure and amalgamate sites.
Sales activity for retail is primarily driven by fluctuations in capital values.
In a strong market, investors typically look to capitalise on their investment and reinvest in other areas with greater growth prospects. In some instances we have also noted some businesses upsizing or expanding.
Conversely, some sellers are motivated by increasing vacancies and it is not uncommon to see a newly leased asset placed on the market for sale.
Increases in holding costs and perceived risks can also drive retail assets onto the market. The move to online shopping has forced some retailers to close storefronts thus increasing the sales volumes.
A driving factor of supply and demand for retail in some areas is the surge of residential property values which has coincided with an increase in the redevelopment of mixed use sites. This trend has been ongoing for some 10 years.
This surge in redevelopment has seen an increase in the supply of ground floor retail space, which is often required under the planning provisions. A good example of this trend can be seen across South Sydney, which saw a surge in retail supply when developments reached completion.
This has led to an oversupply of such stock, which has now been an issue in some areas for some five to ten years.
In other areas, adaptation to changing demands has resulted in renewed tenant demand. Examples of this can be seen in Redfern and Summer Hill. These two local retail precincts have traditionally been dominated by local businesses that service the local population and whilst this remains the case, both of these areas have seen an increase in demand as they become go to locations for small restaurants and bars.
HTW Valuers noted, "the COVID-19 pandemic continues to have implications for the Sydney retail property market. We are currently concerned about smaller retail precincts, particularly inner-city areas that rely heavily on food and beverage sales."
"Some areas have seen severe increases in vacancies. In other areas we are witnessing a slow return to normal with increases in trade leading to a revival and the slow reopening of some businesses."
"Overall, we are predicting rental reductions and an increase in required incentives in some areas, which we anticipate will result in a decline in capital values. Whilst there are currently few sales to demonstrate the impact the pandemic is having, some of those that have occurred have shown a decline in value."
"We have also noted an increase in properties available for both sale and rent in some areas and some difficulty with off the plan strata retail that is now coming up to settlement in a diminished market."
"We maintain the view that investment in retail assets will diminish as they are considered to be highly volatile and, as a result, we anticipate a decline in values. The retail market is facing a long recovery period for which we cannot know the full extent as yet", they concluded.
</body></html>

Investment in Sydney retail assets will shrink: HTW

<html><body>
Heffron has launched Phase 2 of its Super Toolkit in response to those seeking guidance in order to meet auditor and ATO requirements for their SMSF landlords providing rent relief to COVID impacted commercial tenants. 
According to Heffron an estimated 54,000 SMSFs have commercial property investments. As a consequence of the pandemic many of these landlords have provided rent relief for tenants who are unable to comply with the standard terms of their lease.
For SMSF landlords specifically, complying with superannuation law adds complexity to this process.  
"We were inundated with requests to provide guidance to our clients that would help them meet legal requirements for their own SMSFs clients with commercial property investments," said Heffron managing director, Meg Heffron. 
The COVID-19 Rent Relief tool walks users through the ATO’s requirements for compliance relief, helping users identify the drivers for rent relief and articulate the reasons why relief should be given in particular situations, as well as highlighting rent relief risks. 
The first stage of the toolkit was announced in March and launched in June, and covered SMSF investment strategies using a guided tool that helps subscribers to the service create an ATO-compliant strategy with documents that can be shared with clients as part of the process.
The Heffron Super Toolkit is available from $20 per month and once subscribed, users can gain access to each new component as released.
</body></html>

Heffron launches COVID rent relief tool answering SMSF compliance concerns

<html><body>
A country home in the mid-north South Australian town of Peterborough has been listed for sale by mortgagee.
Situated at <a href="https://www.realestate.com.au/property-house-sa-peterborough-134400346%20">110 Queen Street</a>, the property was advertised as mortgagee on realestate.com with a price tag of $99,000.
The home’s offerings include three bedrooms and one bathroom, plus a brick extension that could be made into an office or fourth bedroom.
Set on an expansive 1,011sqm block of land, the home comes with a rear lobby, underground rainwater tank, bullnose verandah and abundant storage space.
According to CoreLogic data, the median house price for Peterborough is $64,000.
This home last traded for $89,000 in 2005.
It is located within walking distance to Main Street, high school and the hospital.
Nutrien Harcourts’ Jeff Oakley and Gerda Oakley hold the listing.  
</body></html>

Peterborough country home listed for sale by mortgagee for under $100,000

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

Joel Robinson

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

The City of Sydney has approved plans for <a href="https://www.apartments.com.au/developers/billbergia">Billbergia Group</a> and Metrics Credit Partners’ $3.5 billion Castlereagh Place project in the heart of the Sydney CBD

The towers will be among the tallest in <a href="https://www.apartments.com.au/developments/sydney-nsw-2000">Sydney</a>'s CBD, with more floors than any other residential tower in the city.&nbsp;

The 6,000 sqm site was acquired by the joint venture partners in 2024. It is the largest amalgamated land parcel in the Sydney CBD and comprises eight individual sites fronting Castlereagh, Pitt and Liverpool Streets.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/castlereagh-place-sydney-324-348-pitt-street-sydney-nsw-2000">Castlereagh Place</a> will transform an underutilised city block into a landmark mixed-use destination, anchored by two 82-storey towers comprising 607 luxury residences above an 8-level podium housing a 209-room luxury hotel. A 1,000 square metre civic park on ground level features a curated mix of food, beverage and retail.

The plans have been refined over the past year to rebalance the residential and hotel offering, and reconfigure the retail footprint to create a stronger, more dynamic dining experience.

A three-level flagship building on the prominent corner of Pitt and Liverpool Streets will be the gateway to the Castlereagh Place lifestyle precinct. Set to become a Sydney icon, the building is capable of housing multiple hospitality venues.

“Castlereagh Place is designed to be the City's next great urban oasis - an energetic mixed-use precinct that pulses with life, day and night,"&nbsp;said Joseph Kinsella, Group Director of Billbergia.

"It will bring the vibrancy of places like Barangaroo and Darling Quarter into a more accessible, central destination at the very heart of Sydney."

Kinsella said the project will build on&nbsp;Sydney’s growing laneway culture with the City’s largest network of new activated lanes - an expanded, next-generation take on precincts like Angel Place, Palings Lane and Ash Street in Wynyard.

[smartcode_project:default project_id=134477 project_image_fid=374401]

Castlereagh Place has been designed by architects <a href="https://www.apartments.com.au/architects/fjc-studio">fjcstudio</a> in collaboration with Trias Studio, Aileen Sage and Polly Harbison Design, joint winners of an international design competition in 2018.&nbsp;

Signature design elements from the original scheme remain unchanged, while the public domain has been significantly enhanced, delivering 60 per cent more open-to-sky space.

Pedestrian access will also be enhanced through new laneways linking Pitt, Liverpool and Castlereagh Streets, drawing people into a new civic park with outdoor seating, landscaping and integrated public art.

With activated laneways supported by strong hospitality offerings, Castlereagh Place is tipped to become a vibrant new dining destination in the heart of Sydney’s CBD.

It marks the largest undertaking to date for the Billbergia and Metrics Credit Partners partnership. Together they are developing other underutilised Sydney sites into mixed-use precincts, including the $2.2 billion Concord Central and the $1.3 billion Chatswood Grand Residences.

Metrics Managing Partner and Group CEO Andrew Lockhart said Castlereagh Place is a landmark project that will redefine Sydney’s skyline.

"As the tallest residential high-rise development, the revitalised site will offer panoramic views across the CBD and surrounds. We are excited to partner with Billbergia to reinvigorate an underutilised site and create a sophisticated and contemporary mixed-use offering situated in the heart of Sydney.”

Total apartments within the towers have increased to 607 dwellings, with a focus on larger floorplans. Aligned to growing market demand, Castlereagh Place now comprises 299 three-plus-bedroom apartments, 198 two-bedroom units and 110 one-bedroom configurations.

[smartcode_project:default project_id=134477 project_image_fid=374402]

Resident amenities will include an exclusive residents club containing a gym, rooftop pool, dining rooms, co-working spaces, library, golf simulator, games room, cinema room, and access to an exclusive concierge service. There will be around 500 basement car spaces below the towers.

The development will also include a state-of-the-art wellness centre, set to feature a bathhouse with magnesium pools, hot/cold plunge pools and premium amenities.

&nbsp;

According to fjcstudio, the towers will feature distinctive yet elegant architectural design reflecting Sydney’s geometry and urban character, with a network of through-site links and intimate public spaces activating the streetscape.

"Castlereagh Place is a city-making project of significant scale and ambition," said Richard Francis-Jones, Design Director at fjcstudio.

"It will create a rich urban complex of public open spaces, landscaped gardens, and vibrant laneways. Defining these new public spaces and the important streetscape of Castlereagh Street is a sequence of fine-grained, diverse retail and hotel architecture designed in collaboration with Aileen Sage, Polly Harbison Design and Trias.

“Rising above the tree-lined, human-scale streetscape are two slender residential towers that will transform the city skyline and look towards the Harbour, Hyde Park, and the Royal Botanic Garden.”

Demolition and early construction works have commenced onsite at Castlereagh Place.

[smartcode_project_cta:default project_id=134477]

Billbergia, Metrics, approved for $3.5 billion Sydney skyscrapers

International developer&nbsp;<a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> is preparing to re-launch its long-awaited $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a> development at Budds Beach, bringing a new price point to the Surfers Paradise apartment market.

The developer will release one-bedroom apartments from $825,000 and two-bedroom apartments from $1.24 million in the three-tower development.

According to Urbis, the starting price for the two-bedroom apartments is more than $400,000 below the weighted average sale price for comparable two-bedroom apartments in Surfers Paradise during 2025, which was pinned at $1.7 million.

&nbsp;

Urbis reported quarterly average sale prices for new two-bedroom, two-bathroom apartments ranged from around $1.2 million to $1.7 million throughout 2025, peaking in the December quarter.

[smartcode_project:default project_id=106566 project_image_fid=185853]

Paradiso Place is now moving into its formal sales campaign, with a limited early-release opportunity available ahead of the public launch.

The development will comprise 845 apartments across three towers rising 40, 41 and 44 storeys from a 1.15-hectare site spanning an entire city block. The towers will sit above a new retail precinct.

"Paradiso Place represents a rare opportunity in today's market, offering premium apartments at a price point that is significantly more competitive than anything else currently available," SPG Land Sales Director Brad McMahon said.

"When you look at comparable new developments across Surfers Paradise, Main Beach and the Southern Beaches precinct, buyers are typically paying hundreds of thousands more for a similar product.

"The scale of this project and the developer-builder construction model allows us to unlock efficiencies that smaller developments simply cannot achieve. We are passing those benefits directly to buyers, while still delivering a five-star residential experience with an unmatched lifestyle."

[smartcode_project:default project_id=106566 project_image_fid=374280]

Each of the three towers designed by Rothelowman will have its own podium, connected by an elevated skybridge network to create a beachside village for residents. The resident amenity has been designed to rival a five-star hotel, with private dining rooms, resident lounges and entertainment spaces.

McMahon said the pricing strategy was a deliberate response to the current market.

"What Paradiso Place offers is a unique balance, genuine value within a premium market. Buyers are not compromising on quality, design or amenity, they are gaining access to it at a more competitive price point at a time when prices across the Gold Coast continue to reach new highs."

[smartcode_project:default project_id=106566 project_image_fid=362498]

Located around 100 metres from the beach and within walking distance of the Surfers Paradise North light rail station, Paradiso Place occupies one of the Gold Coast's most tightly held beachfront precincts.

Construction is continuing to progress, with eight of the project's 112 foundation piles now complete. Excavation has also commenced on the first diaphragm wall panel, with the first concrete poured on 15 June, marking a key milestone in the project's early works program.

[smartcode_project_cta:default project_id=106566]

SPG Land launches $1.5 billion Paradiso Place at attractive price point

Luxury developer-builder <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> has achieved a new Victorian benchmark for an off-the-plan apartment, with the sale of two penthouses at its ultra-exclusive Maison Savoy development in Brighton.

The two penthouses achieved a combined sale rate of $49,926 per sqm. Both transactions eclipsed the previous identified Victorian off-the-plan price-per-square-metre benchmark, set by the 449 sqm apartment at Como Toorak, which sold at $46,659 per sqm.

[smartcode_project:default project_id=140818 project_image_fid=366473]

<a href="https://www.apartments.com.au/new-apartments/maison-savoy-brighton-150-esplanade-brighton-vic-3186">Maison Savoy</a>, Lowe Living's redevelopment of the former Brighton Savoy Hotel on absolute beachfront land at 150 The Esplanade, Brighton, has gained significant momentum since launching just eight weeks ago. Around 30 per cent of the project's 19 residences have already been secured, generating approximately $45 million in sales.

"Securing two of the three penthouse sales at this stage, within eight weeks of launching to market speaks to the confidence our clients place in Lowe Living," Lowe Living co-founder Emma Lowe said.

"They know we'll be with them through every stage of the journey, and that assurance is something we've worked hard to earn and never take for granted."

[smartcode_project:default project_id=140818 project_image_fid=366474]

Lowe said Maison Savoy was conceived as a genuine alternative to a prestige Brighton home, combining house-scale proportions with the convenience, security and lock-up-and-leave appeal of apartment living.

Lowe Living co-founder Tim Lowe said the early sales success demonstrated the resilience of Melbourne's prestige market and highlighted the growing demand for house-sized apartments among ultra-high-net-worth buyers.

"The Melbourne market has definitely been tested in recent years, with interest rates and global economic factors all creating a period of uncertainty across the real estate sector. The sales success at Maison Savoy however demonstrates that confidence remains exceptionally strong at the top end of the market.

"The prestige market is being driven by long-term lifestyle decisions rather than short-term market sentiment, which continues to create a level of certainty that befits an absolute beachfront property in a blue-chip location like Brighton.

"Brighton's fundamentals remain among the strongest in Melbourne, with limited new supply, enduring demand from an overwhelmingly local owner-occupier market, and a rare combination of beachfront amenity and proximity to the CBD."

[smartcode_project:default project_id=140818 project_image_fid=374378]

According to Cotality, Brighton remains one of Melbourne's most tightly held prestige suburbs, with an average ownership tenure of 15.3 years for houses and 12.3 years for units, while more than 73 per cent of homes are owner-occupied.

Tim Lowe said selling two of the project's three penthouses so early in the campaign was an uncommon result.

"This sales result is a reflection of quality and understanding the local market. It's incredibly rare to transact the penthouses so early in a sales campaign in any project so to have sold two of the three penthouses at Maison Savoy so soon after launch, all in-house without any external sales agency appointed, is reflective of our careful consideration of our buyers' needs and lifestyle.

"This is knowledge that is accumulated not just from data and demographic analysis, but via a deeply embedded understanding of how this type of buyer wants to live and feel in their home. We pride ourselves on getting to know our clients personally, and over the last 10 years we have been able to refine our product offering by talking one-on-one with our clients about their design and floorplan preferences.

"Being a fully integrated developer-builder with an in-house design and sales team allows us to lead every part of the process and ensure the highest quality of product and service at every touchpoint. It's a really important part of our DNA and the recent sales success at Maison Savoy indicates that our clients and purchasers are resonating with this point of difference.

"It reinforces that demand remains strong for thoughtfully designed residences that offer rarity, lifestyle and long-term value in tightly held locations, which ultimately validates Maison Savoy's positioning as creating a new benchmark for house-scale, wellness-led apartment living on Brighton's beachfront."

&nbsp;

[smartcode_project:default project_id=140818 project_image_fid=366480]

The residences at Maison Savoy start from 295 sqm, with most enjoying uninterrupted views across Port Phillip Bay. The project sits moments from the Brighton Bathing Boxes, Royal Brighton Yacht Club, Middle Brighton Baths and Church Street's retail and dining precinct.

A key feature of the development is its private residents-only bathhouse, curated by the founder of Aurora Spa &amp; Bathhouse and modelled on traditional European bathing rituals and the award-winning Sorrento bathhouse.

The wellness offering includes a hydrotherapy pool, salt room, sauna, steam room, cold plunge pool, foot activation zone and a Vichy rainfall bed, one of only a handful in Australia. Residents will also have access to a Technogym studio, lounge spaces and a dedicated concierge service offering everything from morning coffee delivery and restaurant bookings to dry cleaning and home coordination.

"Wellness-led design has become a defining factor for luxury buyers," Emma Lowe said.

"Purchasers increasingly value homes that enhance wellbeing through thoughtful design, private amenity, privacy and liveability."

The penthouse purchasers are now undertaking a bespoke customisation process curated personally by architect Pete Kennon and the Lowe Living team, one of the developer's signature service offerings.

Construction on the $160 million transformation of the former Brighton Savoy Hotel site commenced last month, with completion expected in early 2028. The project has secured funding from NAB alongside development partner Monark.

Just one penthouse remains available, along with a limited number of two and three-bedroom residences starting from $3.75 million.

Lowe Living currently has eight projects on the market across Melbourne and recently celebrated its 10th anniversary, having grown a $1 billion development pipeline alongside a $350 million construction pipeline.

&nbsp;

[smartcode_project_cta:default project_id=140818]

Lowe Living set new Melbourne off the plan apartment record

For more than three decades, Hyecorp has been delivering residential projects across Sydney's Lower North Shore, building a portfolio centred on design-led apartment living in some of the city's most established neighbourhoods.

Hyecorp recently launched the latest in its long line of apartment developments, Celine, a 29-storey tower on Archer Street in Chatswood. Like the majority of the developer's projects, Celine caters to a broad buyer demographic, offering a mix of one, two, three and four-bedroom apartments, all designed with owner-occupiers in mind.

Functionality and flexibility are often buzzwords in the new apartment market, but they sit at the core of Hyecorp's design philosophy.

Hyecorp Joint Managing Director Stephen Abolakian says the developer understands it isn't designing apartments for today's needs alone, but for how buyers will live several years into the future.

"When we launch our projects we need to be aware that these developments aren't finished for several years," Abolakian says.

"That home office in the here and now might be a nursery by the time the project completes for a prospective buyer, so we need to think about how the apartment spaces function for future uses so there's longevity in the ownership."

Celine's architects, Fuse, followed the same philosophy, saying the design extends well beyond aesthetics.

"Celine focuses on timeless architectural form and functionality, with a strong emphasis on light, proportion and materiality. The design responds to the urban context of Chatswood while delivering calm, highly liveable interiors that feel both contemporary and enduring. The floorplans have been carefully resolved to maximise usability and outperform typical market offerings in terms of efficiency and liveability."

Most apartments incorporate multipurpose rooms designed for flexibility. Each includes an integrated desk and a standard Murphy pull-down single bed, allowing the space to transition from a home office or study to guest accommodation as needs change. The layouts have also been designed to maximise natural light, storage and overall functionality.

One and two-bedroom apartments feature Miele appliances, while three and four-bedroom residences are appointed with integrated Gaggenau appliances and Taj Mahal stone benchtops.

Buyers who purchase early in the construction process can also take advantage of Hyecorp's "Live Your Way" interior design service, allowing them to personalise finishes and tailor elements of their home to suit their own lifestyle. It's a feature designed to appeal to owner-occupiers who want their apartment to feel uniquely theirs from the day they move in.

[smartcode_project:default project_id=149594 project_image_fid=362614]

While flexible floorplans have become a hallmark of Hyecorp's apartment design, the developer has also continued to place significant emphasis on resident amenity.

As buyers increasingly expect more from apartment living, shared spaces have evolved beyond a gym and barbecue area. They are now an extension of the home, providing spaces to relax, exercise, entertain and connect with neighbours.

At Celine, the resident amenity has been designed with a focus on wellness, centred on the level six podium. An infinity-edge swimming pool, spa, sauna and fully equipped gym are complemented by barbecue facilities and a residents' lounge, creating a range of spaces for relaxation, recreation and social connection above the streets of Chatswood.

Practical conveniences have also been integrated throughout the building, including EV charging provisions, smart parcel lockers, bicycle storage, a pet wash station and dedicated car wash bays, reflecting the project's focus on making everyday living as seamless as possible.

[smartcode_project:default project_id=149594 project_image_fid=362633]

"Celine has been designed to deliver a refined residential experience that reflects the evolution of Chatswood into a premium urban centre,"&nbsp;Abolakian says.

"With over 30 years of experience delivering projects across Sydney's Lower North Shore, Hyecorp brings a deep understanding of what local buyers value. Every detail has been considered to balance luxury, functionality and long-term liveability. This is not just about apartments, but about creating a lasting residential address for discerning buyers."

Hyecorp, vertically-integrated builder-developer, is anticipating construction commencement later this year.

[smartcode_project_cta:default project_id=149594]

Staff reporter

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News