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Large housing price falls in parts of Australia mean some borrowers are facing negative equity – where the outstanding balance on the loan exceeds the value of the property it is secured against.
Negative equity creates vulnerabilities both for borrowers and lenders, the RBA recently noted in a research paper.
A borrower having difficulty making loan repayments who has negative equity cannot fully repay their debt by selling the property.
Negative equity also implies that banks are likely to bear losses in the event that a borrower defaults.
Evidence from Australia and abroad suggests that borrowers who experience an unexpected fall in income are more likely to default if their loan is in negative equity, the RBA financial stability review indicated.
"At present, the incidence of negative equity remains low," the report said.
"Given the large increases in housing prices that preceded recent falls and the decline in the share of mortgages issued with high loanto-valuation ratios (LVRs), housing prices would need to fall significantly further for negative equity to become widespread.
"However, even if this did occur, increased defaults would be unlikely if the unemployment rate remains low, particularly given the improvements in loan serviceability standards over recent years.
"Few loans are currently in negative equity despite sizeable housing price declines Estimating the share of borrowers with negative equity requires data on current loan balances and property values."
The RBA’s Securitisation Dataset contains the most extensive and timely data on loan balances and purchase prices.
These data can be combined with regional data on housing price movements to estimate the share of loans that are currently in negative equity.
This suggests that nationally, around 2.75% of securitised loans by value are in negative equity (just over 2% of borrowers).
The highest rates of negative equity are in Western Australia, the Northern Territory and Queensland, where there have been large price falls in areas with high exposure to mining activity.
Almost 60% of loans in with negative equity are in Western Australia or the Northern Territory. Rates of negative equity in other states remain very low (Graph B1).
<img src="https://www.urban.com.au/images/2019/4/12/Negative%20Equity%201.JPG" alt="">
Estimates of negative equity from the securitisation dataset may, however, be under or overstated, the RBA financial stability review acknowledges.
"They could be understated because securitised loans are skewed towards those with lower LVRs at origination.
"In contrast, the higher prevalence of newer loans in the dataset compared to the broader population of loans, and not being able to take into account capital improvements on values, will work in the other direction."
It noted some private surveys estimate closer to 10% of mortgage holders are in negative equity.
However, these surveys are likely to be an overestimate for a number of reasons; for instance, by not accounting for offset account balances. Information from bank liaison and estimates based on 2017 data from the Household Incomes and Labour Dynamics of Australia (HILDA) survey suggest rates of negative equity are broadly in line with those from the Securitisation Dataset.
The continuing low rates of negative equity outside the mining exposed regions reflect three main factors: the previous substantial increases in housing prices; the low share of housing loans written at high LVRs; and the fact that many households are ahead on their loans, having accumulated extra principal payments.
Housing prices in some areas of Sydney and Melbourne have fallen by upwards of 20% from their peak in mid to late 2017.
But the RBA review noted only a small share of owners purchased at peak prices, and many others experienced price rises before property prices began to fall.
Properties purchased in Sydney and Melbourne since prices peaked account for around 2% of the national dwelling stock.
Looking further back, properties purchased in these two cities since prices were last at current levels still only account for around 4½% of the dwelling stock.
Few recent borrowers had high starting LVRs.
Over the past five years, the share of loans issued by ADIs with LVRs above 90 has roughly halved.
Since 2017, it has averaged less than 7% (Graph B2).
Around 80% of ADI loans are issued with an LVR of 80 or less. Around 15% of owner-occupier borrowers and 20% of investors take out a loan with a starting LVR of exactly 80.
<img src="https://www.urban.com.au/images/2019/4/12/Negative%20Equity%202.JPG" alt="">
Given most borrowers do not have high starting LVRs, housing price falls need to be large for widespread negative equity.
The review noted only 15% of regions have experienced price declines of 20% or more from their peaks.
Around 90% of these regions are in Western Australia, Queensland and the Northern Territory.
"If a borrower has paid off some of their debt, then price declines will need to be larger still for them to be in negative equity.
"Most borrowers have principal and interest loans that require them to pay down their debt and many borrowers are ahead of their repayment schedule."
Around 70% of loans are estimated to be at least one month ahead of their repayment schedule, with around 30% ahead by two years or more.
When a borrower is behind on repayments and their loan is in negative equity, banks classify the loan as ‘impaired’.
Banks are required to raise provisions against potential losses from impaired loans through ‘bad and doubtful debt’ charges.
Currently the proportion of impaired housing loans is very low, at 0.2% of all residential mortgages, despite having increased of late (Graph B3).
<img src="https://www.urban.com.au/images/2019/4/12/Negative%20Equity%203.JPG" alt="">
Negative equity is concentrated in Western Australia, Queensland and the Northern Territory
Queensland, Western Australia and the Northern Territory together account for around 90% of all mortgage debt in negative equity.
These states have regions that experienced large and persistent housing price falls over several years.
"This has often been coupled with low income growth and increases in unemployment, which have reduced the ability of borrowers to pay down their loans," the RBA financial stability review indicated.
"Loans currently in negative equity were, on average, taken out around five years ago and had higher average LVRs at origination, of around 85%.
"This made them particularly susceptible to subsequent falls in property values."
Investment loans are also disproportionately represented, despite typically having lower starting LVRs than owner-occupier loans.
Investors are more likely to take out interest-only loans in order to keep their loan balance high for tax purposes.
Around 10% of loans in negative equity have interest only terms expiring in 2019, which is double the share for loans in positive equity.
For these borrowers, the increase in repayments from moving to principal and interest may be difficult to manage, especially as loans in negative equity are already more likely to be in arrears.
Having more borrowers in this scenario is distressing for the borrowers themselves and for the communities they live in.
However, it is unlikely to represent a risk to broader financial stability given it remains largely restricted to mining-exposed regions, which represent a very small share of total mortgage debt.
Further significant housing price falls in Sydney and Melbourne would see negative equity increase, but widespread defaults are unlikely, the RBA financial stability review suggested.
Continued housing price falls would be expected to increase the incidence of negative equity, particularly if they affect borrowers with already high LVRs.
Around 11/4% of loans by number (and 13/4% of loans by value) have a current LVR between 95 and 100, making them likely to move into negative equity if there are further housing price falls (Graph B4).
However, compared to the international experience with negative equity during large property downturns, the incidence of negative equity in Australia is likely to remain low.
Negative equity peaked in the United States at over 25% of mortgaged properties in 2012 and in Ireland it exceeded 35%, as peak to trough price falls exceeded 30 and 50% respectively.
However, high origination LVRs were far more common in these countries than they have been in Australia.
Even if negative equity was to become more common in the larger housing markets of Sydney and Melbourne, impairment rates for banks are unlikely to increase significantly while unemployment and interest rates remain low.
<img src="https://www.urban.com.au/images/2019/4/12/Negative%20Equity%204.JPG" alt="">
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j.ballantyne1990-6AQqhLzZaK

Around 30% of Australian mortgage holders are ahead by two years or more: RBA

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GUEST OBSERVATION
In 1961, the Australian Labor Party came within a whisker of an unlikely victory.
At the time, the ALP was still recovering from a split with the Democratic Labor Party and was not viewed as a serious threat to the Liberal-Country Party Coalition. The <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BN/2011-2012/DPLOverview" target="_blank">DLP</a> was a conservative, Catholic-based, anti-communist party that consistently gave its preferences to the Coalition over the ALP.
In the 1958 federal election, aided by DLP preferences, the government of <a href="http://adb.anu.edu.au/biography/menzies-sir-robert-gordon-bob-11111" target="_blank">Robert Menzies</a> was returned to power in a major swing against the ALP. The Coalition gained 54% of the two-party preferred vote, with 77 seats in the House of Representatives to the ALP’s 45.
What nearly cost the Coalition the next election, though, was the Menzies government’s “credit squeeze”.
The end of import restrictions and the credit squeeze
Despite its huge electoral advantages, the Menzies government began to encounter political problems in the early 1960s. From 1952 to 1960, the Menzies government had been forced to license imports because Australia’s rural exports did not earn enough to pay for its imports. An opportunity to abolish import licensing came at the end of the 1950s, when <a href="https://www.rba.gov.au/publications/confs/1992/stevens" target="_blank">inflation</a> started to rise.
<a href="http://primeministers.naa.gov.au/primeministers/holt/" target="_blank">Harold Holt</a>, the then-treasurer, urged the government to end import licensing to boost imports and thereby dampen inflationary pressure. <a href="http://adb.anu.edu.au/biography/crawford-sir-john-grenfell-jack-1391" target="_blank">Sir John Crawford</a>, the secretary of trade, disagreed. He feared a blow-out in the balance of payments, and urged caution and a gradual easing of import controls.
Despite Crawford’s objections, the Cabinet preferred Holt’s plan and abolished import restrictions in February 1960. The result, as Crawford predicted, was a balance of payments crisis. In November 1960, Menzies took drastic action, sharply increasing sales taxes and imposing restrictions on credit to bring the economy back into balance.
The consequence of the “credit squeeze” was a minor recession. <a href="https://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp1997n24.pdf" target="_blank">Unemployment</a>, rose to 53,000 people at the end of 1960, and 115,000 at the end of 1961. The Menzies government’s longevity after 1949 had partly been due to its achievement of high levels of employment. Even moderate levels of unemployment posed a significant danger for a government that would have to face re-election in 1961.
But <a href="https://www.propertyobserver.com.au/https://catalogue.nla.gov.au/Record/56067?lookfor=author:%22Martin,%20A.%20W.%20(Allan%20William),%201926-2002%22&amp;offset=10&amp;max=31" target="_blank">Menzies</a> remained optimistic. He said: "I do not think we will be beaten. There are no circumstances which would suggest even a remote possibility of the opposition winning 17 seats."
The 1961 election
<img src="https://images.theconversation.com/files/269258/original/file-20190415-147487-g1ygt3.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Gough Whitlam meets with Arthur Calwell. L. J. Dwyer, National Library of Australia, nla.obj-142691238
The ALP, led by Arthur Calwell and Gough Whitlam, seized the opportunity given them by the Menzies government’s apparent mismanagement of the economy. Calwell, despite being a far less impressive television performer than Menzies, campaigned doggedly on the economy. Calwell also received support from the Sydney Morning Herald, whose owner, Sir Warwick Fairfax, had become disenchanted with Menzies.
Calwell promised that, if elected, the ALP would reduce unemployment through a series of selective import controls and expanded social services. <a href="https://www.propertyobserver.com.au/https://catalogue.nla.gov.au/Record/56067?lookfor=author:%22Martin,%20A.%20W.%20(Allan%20William),%201926-2002%22&amp;offset=10&amp;max=31" target="_blank">Menzies</a> lampooned Calwell’s ideas as pie-in-the-sky rhetoric, and broadened his attack to include the ALP’s alleged closeness to the Communist Party.
Queensland was the key state. The Coalition held 15 of the 18 Queensland seats in the House of Representatives, and the ALP needed to win a swag of them to have any chance of victory. But election observers predicted that the ALP would not pick up more than two or three in Queensland, and that the ALP’s overall gains would be limited to seven or nine seats.
Following a frantic whistle-stop tour by Whitlam to north Queensland, the results of the December 9 election surprised everyone. For days, the election hung in the balance.
In the end, the ALP won a total of 15 seats, eight in Queensland. But the vote count finally tipped in Menzies’ favour when Billy Snedden was returned in Bruce and <a href="https://www.smh.com.au/national/killen-dies-aged-81-20070113-gdp8i6" target="_blank">James Killen</a> in Moreton, both supported by DLP preferences.
Menzies was so shell-shocked by the results that he did not congratulate Killen on his victory, forcing Killen to concoct a story that the prime minister had famously <a href="http://www.andrewbartlett.com/blog/?p=1286" target="_blank">greeted him with the words</a>: "Killen, you were magnificent."
Consequences of the election
In the long-term, Menzies and his colleagues were able to turn the near-defeat in 1961 into another decade of Coalition rule, aided by further electoral victories in 1963, 1966 and 1969.
When <a href="https://www.propertyobserver.com.au/https://catalogue.nla.gov.au/Record/3545835?lookfor=author:(SExton,%20Michael)&amp;offset=1&amp;max=42" target="_blank">Labor</a> was finally able to win office in 1972, it faced three years of unremitting hostility from the Senate, non-Labor states and an opposition that regarded an ALP government as so exceptional as to be illegitimate.
If Labor had won in 1961 and lasted until 1964, or perhaps longer, could this have had a longer-term impact on the country? Would Australia have entered the Vietnam War? Would conscription have been introduced? Would Australia have officially recognised the People’s Republic of China a decade earlier?
Menzies’ legacy also would have been cut short by what would undoubtedly have been considered one of the biggest election upsets in Australian history.<img src="https://counter.theconversation.com/content/115140/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
David Lee, Associate Professor of History , UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/issues-that-swung-elections-the-credit-squeeze-that-nearly-swept-menzies-from-power-in-1961-115140" target="_blank">original article</a>.
Main photo: Arthur Caldwell almost defeated Robert Menzies in the 1961 federal election, dominated by debate over the economy and unemployment. National Archives, National Library of Australia, Wikimedia, <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a> 
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The ‘credit squeeze’ that nearly swept Menzies from power in 1961

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Lower investor demand is being reflected in a shrinking apartment pipeline, according to a new report from JLL.
According to JLL’s latest 1Q 2019 Apartment Market Reports, the number of apartments under construction in Australia’s six major capital cities has fallen by around 10% over the past year.
The number of apartments being marketed has fallen by a massive 48% over the same period.
Melbourne’s construction numbers held strong with 18,540 apartments under construction, up 15% from a year ago.
However, the number of apartments being marketed in Melbourne fell by 51% over the past year (1Q 2018 – 1Q 2019).
Sydney has seen a 24% fall in construction over the past year and a massive 77% reduction in apartments marketed, while Brisbane experienced a 36% reduction in construction and 59% reduction in apartments marketed.
<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/2019/5/31/New%20Project%2012.jpg" alt="">
These trends are a result of several factors influencing local market conditions, said Leigh Warner, JLL’s Head of Residential Research - Australia.
“The decline in the supply pipeline that has been happening for some time now very clearly illustrates how the pre-sales requirements put on developers by financiers in Australia makes our supply pipeline very responsive to prevailing demand conditions,” said Warner.
“We’ve seen quite a few projects that we’ve been tracking for some time be redesigned for other land uses including office, hotels and student accommodation by existing or new owners.
“This has particularly been the case in Melbourne.
“The medium-term danger now is clearly that it will take some time for the supply pipeline to get going again and, with still very strong levels of national population growth, we could quite easily move into supply shortages over the next few years at the national level.
“This could result in real pressure on renters in some parts of the country in particular and move us from a housing price affordability crisis into a rental affordability crisis if we are not careful.”
<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/2019/5/31/New%20Project%2013.jpg" alt="">
With the exception of first home buyers, most buyer groups have been very inactive over the past few years, the JLL report said.
APRA’s macro prudential measures have been the major cause of slow investor credit growth, said Warner.
“The fall in overseas demand cannot really be attributed to any one thing,” said Warner.
“State and Federal imposts on foreign investors and credit constraints definitively contributed to the decline, but changes to Chinese capital restrictions likely had a much larger impact.
“And the late stage of the cycle and better opportunities elsewhere also likely played a role.”
With investors largely sitting out, developers are changing schemes to better target owner occupiers, the report found.
“In 1Q19 there was an increase in planning submissions lodged, reflecting both lapsed approvals being resubmitted and developers changing schemes to better suit current demand trends and more specifically target owner occupiers with smaller projects, larger apartments and higher quality finishes,” said Warner.
JLL expects conditions to remain tough in the short-term, with many parts of the country to see further downward pressure on prices and rents before starting to stabilise in late-2019.
“The combination of still tight credit, the Federal election and buyers holding off to see where prices will settle in some markets will all remain headwinds in the short-term,” said Warner.
“However, we think the medium-term outlook is very different.
“We have not significant over-built in aggregate and very low completions over the next few years, along with continued strong population growth, will see us quickly move into an under-provision of space and see rental markets tighten once more.
“The timing of this recovery will differ across the country, but it is likely to be the resource markets of Brisbane and Perth that lead the next cycle as economic and population growth continue to improve in these markets.
“The excesses of the booms in Sydney and Melbourne mean these markets will take longer for price growth to return, but lower investor activity could mean the turnaround in the rental market in these cities could be much quicker.”
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Number of apartments being marketed falls 48% in a year: JLL

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GUEST OBSERVATION
Too often it takes a crisis to trigger changes in legislation and behaviour, when forward thinking, cooperation and future planning could have negated the risk in the first place. Australia’s building and construction industry is under the microscope and changes in the law are in the wind, due to situations that could have been avoided. These include the evacuation of <a href="https://www.theguardian.com/australia-news/2019/feb/22/sydney-opal-tower-report-finds-multiple-design-and-construction-faults" target="_blank">Sydney’s Opal building</a> and the fires in Melbourne’s <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-02-28/lacrosse-apartment-owners-win-5.7-million-cladding-fire-damages/10857060" target="_blank">Lacrosse tower</a> in 2014 and the <a href="https://www.theguardian.com/australia-news/2019/feb/04/apartment-fire-in-melbournes-spencer-street-prompts-new-fears-over-cladding" target="_blank">Neo200</a> apartment building in February, both of which were <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">fuelled by combustable cladding</a>, as was the <a href="https://www.theguardian.com/uk-news/2018/jun/04/expert-lists-litany-of-serious-safety-breaches-at-grenfell-tower" target="_blank">2017 fire in London’s Grenfell Tower</a> that killed 72 people.
The <a href="https://aibs.com.au/Public/News/2018/ShergoldWeir.aspx" target="_blank">Shergold Weir report</a> made 24 recommendations to improve the National Construction Code to ensure compliance, integrity and more. Commissioned by federal and state building ministers, the report was made public at the Australian Building Ministers Forum in April 2018. But implementation has been too slow to prevent the problems in the Opal and Neo200 apartment buildings. And it included no changes to climate-proof buildings.
A new National Construction Code comes into effect on May 1. Recent events have, however, exposed inadequate construction standards and increased public pressure for further change. This presents an opportunity to future-proof our cities as well as restore public confidence in our construction industry.
Construction codes were created to eliminate “worse practice”, but we are now in a position to make them “best practice”. Importantly, we must prepare for climate change. Australia is increasingly <a href="https://theconversation.com/state-of-the-climate-2018-bureau-of-meteorology-and-csiro-109001" target="_blank">experiencing more extreme weather patterns</a>, but are we ready?
The legislative overhaul must also include building sustainability and higher performance requirements. A low-to-zero-carbon future must be part of the picture.
Construction code changes are needed urgently, not just for increased safety, but to ensure future urban developments:
<ul>
<li>are ready for higher energy demands to cool and heat buildings</li>
<li>are designed to maximise sun and shade at the appropriate times to cool and warm both building and street</li>
<li>use materials that reflect heat for hot climates and absorb it for cooler ones</li>
<li>maximise insulation to reduce energy use</li>
<li>provide enough green space to give shade, produce oxygen and sustain a healthy environment</li>
<li>use water features to cool common and public areas</li>
<li>install smart technology to monitor and manage buildings and precincts.</li>
</ul>
Many leading developers are taking the initiative to ensure projects include high-performance, zero-carbon, highly energy-efficient buildings, with top star ratings, but action needs to be across the board. This can only be done via tough legislation and enforced compliance.
The <a href="https://www.estate.unsw.edu.au/tyree-energy-technologies-building-sustainable-energy-research" target="_blank">University of NSW’s Tyree Building</a> is an excellent example of a high-performance building, as is <a href="https://www.theguardian.com/artanddesign/2014/nov/11/sydneys-one-central-park-wins-international-best-tall-building-award" target="_blank">One Central Park, Sydney</a>, which features hanging gardens and an internal water recycling plant. But its most striking feature is its “heliostat”, a large array of mirrors that reflect sunlight to areas that would otherwise be in shadow.
<iframe src="https://www.youtube.com/embed/2jN8-rMbQDM?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe>
Around the world, high-performance buildings are on the increase, such as <a href="https://e360.yale.edu/features/singapore_takes_the_lead_in_green_building_in_asia" target="_blank">313@Somerset</a> in the heart of Singapore, and the <a href="http://nirman.com/blog/2016/08/31/cii-sohrabji-godrej-green-business-center-hyderabad-a-guiding-light/" target="_blank">Sohrabji Godrej Green Business Centre</a> in Hyderabad – India’s first <a href="http://leed.usgbc.org/leed" target="_blank">Leadership in Energy and Environmental Design (LEED)</a> platinum-rated building. There are many more.
Changing the law
New building standards and compliance are required to ensure high-performance buildings are the norm, not the exception. The construction industry should fulfil a “cradle to cradle” objective for materials. This means accounting for:
<ul>
<li>where materials come from</li>
<li>how materials are made</li>
<li>safety levels</li>
<li>carbon component</li>
<li>recyclability at demolition.</li>
</ul>
Laws covering low-carbon building design are imperative, setting standards for geography, maximising natural light, air flow, insulation and smart technology. Technology can monitor and run a building’s utilities to ensure it’s not only energy-efficient but also delivers a health standard that’s adaptable to the future pressures of climate change.
Sustainable buildings are achievable now
Current know-how makes all this achievable. Over the past seven years the <a href="http://www.lowcarbonlivingcrc.com.au/" target="_blank">Cooperative Research Centre for Low Carbon Living</a> and its industry partners have funded research into most low-to-zero-carbon aspects of the built environment. This has led to many recommendations in reports like <a href="https://www.asbec.asn.au/research-items/built-perform/" target="_blank">Built to Perform</a>, produced by the Australian Sustainable Built Environment Council.
The many research projects include:
<ul>
<li>17 living laboratories providing cutting-edge data</li>
<li>creating low-carbon communities</li>
<li>developing tools to measure carbon outputs, from materials to services</li>
<li>studying the effects of heatwaves in Western Sydney and ways to cool cities</li>
<li>research into low-carbon concrete made of fly ash.</li>
</ul>
This plethora of data reveals that sustainable cities and precincts are achievable, while providing for a growing communities. <a href="https://theconversation.com/how-blockchain-can-democratize-green-power-87861" target="_blank">Blockchain and solar technology</a>, for example, is now proven for managing a precinct’s energy needs and can help turn energy users into providers.
Although we are more global than ever, online and social media have in turn made us locally focused. We can know what’s going on in our street at a click and this technology is applicable to the operation of our future, sustainable cities.
We have the data, expertise, tools and knowledge to make safe, low-to-zero-carbon cities part of our future. But there’s much work to do. We still need to implement this knowledge, use the tools, change behaviour and instil 100% trust in the design and construction process. There’s no time to waste.<img src="https://counter.theconversation.com/content/113365/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Deo Prasad, Scientia Professor and CEO, Co-operative Research Centre for Low Carbon Living, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/dont-forget-our-future-climate-when-tightening-up-building-codes-113365" target="_blank">original article</a>.
Photo: John Gollings (Aerial images of One Central Park)
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Don’t forget our future climate when tightening up building codes

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Veriu CEO Zed Sanjana has announced that the first Veriu-branded Melbourne property will open adjacent to the city’s iconic Queen Victoria Market.
The new-build hotel is slated to open in late 2022 as part of Melbourne-based developer PDG Corporation’s major renewal of the Queen Victoria Market.
Along with the hotel, the project includes the City of Melbourne’s largest community hub – facilities such as childcare, family services and an underground car-park, complemented by retail and a limited number of residences.
The new retail space will benefit from 140 years of on-site trading history, integrating market legacy with modern laneways that provide new entry points to one of Melbourne’s most well-travelled precincts.  
The Queen Victoria Market hotel is the second new hotel announcement since former Quest CEO Sanjana became CEO of the Veriu Group in September 2018. 
Veriu also revealing word of a new 95-key neighbourhood hotel in Collingwood this week, with more details to follow in the coming months.  
The brand’s push into the Melbourne market began in 2018 with the purchase of the Punthill Apartment Group.
Since this acquisition, Veriu have announced two new Punthill-branded properties; Ivanhoe in partnership with Cayden, and Alphington in partnership with Alpha Partners. 
 <img src="https://www.urban.com.au/images/2019/5/1/Back%20Lane.jpeg" alt="">
Back in its home state of New South Wales, Veriu will open a 144-key apartment hotel in Green Square this July.
This property is a joint venture with Charter Hall.  
Veriu is set to divest its Sydney Central property, one of four Sydney properties.
The sale will be handled by Colliers, and the new owners will have the opportunity to lease the hotel back to Veriu on a long-term basis.  
”Veriu’s sale of Veriu Central will enable us to free up capital to invest in our national expansion plans for both Punthill and Veriu over the course of the next five years," Sanjana said.
"It will also enable Veriu to focus on delivering its two development sites at 323 George St Sydney and 822 George St, Chippendale.”
Veriu has a further two hotel sites in addition to Collingwood and Queen Victoria Market in the Melbourne pipeline with a further five to six locations within inner suburban areas.
The group plan to add 500-plus keys to the Victorian market over the next five years within unique neighbourhood locations like Carlton, Prahran, Richmond, Windsor, South Yarra, South Melbourne as well as CBD Melbourne.  
Nationally, there are a further 10 sites in the pipeline across Sydney, Perth and Adelaide. 
“We are currently targeting to open between 20-30 hotels under the Veriu brand over the next 10 years with a focus on interesting neighbourhoods that meet our brands criteria” says Sanjana.  
Veriu’s current Sydney portfolio includes Veriu Broadway, currently ranked third in Sydney on TripAdvisor, and Camperdown that is ranked in the top 20 hotels in Sydney. 
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Veriu announce new Queen Victoria Market Hotel

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Charter Keck Cramer (Charter) is expanding its national operation with a new office on the Gold Coast.
Shaun Golden (National Director) and Jamie Macdonald (Associate Director) will lead the Gold Coast office with James White (Senior Valuer) also joining the team as a Commercial Valuer.
“Following the success of Charter Keck Cramer’s Brisbane Office over its first year of business it became obvious to establish a Gold Coast presence” said Golden.
Charter opens its fourth national office as it continues to canvass further international expansion throughout Asia to compliment its Singaporean office, which opened late in 2017.
“Our business is as dynamic as the property industry itself,” said Peter Hutchins, Charter Keck Cramer’s managing director.
"Our diversity and geographical reach is responding to the needs and wishes of our clients.”
Charter also has offices in Melbourne, Sydney and Brisbane.
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Charter Keck Cramer to open Gold Coast office

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Greaton has acquired Queensland's Keswick Island, as the group continues to diversify its portfolio from apartments to hotel resorts.
It reported it was recently listed with adjusted $20 million hopes.
The transfer of the lease over Keswick Island from Edward Dawson-Damer to Sydney-based Chinese investors Greaton has received State Govenmemnt sign off.
In 2016 Keswick Island, a Great Barrier Reef island, was on the market with $30 million hopes.
Keswick Developments, owned by the Dawson-Damer family, was hopeful of attracting Chinese tourism interests. 
Keswick Developments is dieted by Edward Dawson-Damer, a former equerry to Queen Elizabeth.
Captain James Cook charted Keswick on his maiden voyage, but since the hilly island -- home to an extinct volcano -- has been sparsely occupier with only about 20 houses and permanent residents.
Cars are banned, with residents travelling by golf buggy on the island.
Keswick Developments obtained the head lease eight years ago after the previous owner, Peter Marshall, spent 20 years attempting to develop the island.
The new owner will have a 117-hectare development lease with the Queensland government until 2096.
The rest of the 517 hectare island is national park. 
The purchase will also give the buyer a 25-hectare seabed lease for a 180-berth marina and deep water jetty.
The mixed-use zoning on the sub-tropical island can accommodate 1000 dwellings and 3000 people. 
The island, 32 kilometres off the coast of Mackay, already has a sealed airstrip, 150 subdivided lots, and preliminary key infrastructure for ongoing development.
The local paper wrote Whitsunday MP Jason Costigan said he was aware of a number of ­issues on Keswick Island, and he hoped that the lease transfer would be “the start of an exciting new era”.
Costigan said it was a shame that many of the southern Whitsunday islands, including Keswick, St Bees and Brampton islands, had been underdeveloped in terms of their tourism potential.
Linc Energy founder Peter Bond has recently commenced a formal campaign to sell Dunk Island off Mission Beach on the Great Barrier Reef with expectations around $20 million.
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Greaton buys Queensland's Keswick Island

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The new owner of Nine’s regional newspapers, Antony Catalano, has denied suggestions he’s embarking on building up a real estate outfit to eventually take on his former employer, Domain.
The denial came after sources speculated to the media website Mumbrella that the acquisition was part of a wider play for Catalano.
It was suggested he could roll-up his assets to launch a real estate portal to take on Domain, which is majority owned by Nine.
The former CEO of Domain also owns a stake in Domain’s biggest client, media agency Tomorrow.
“Why would I have my own real estate play when I’ve got a clearly defined partnership which includes promotion with the Nine Network for the next three years?,” he said.
“It’s ill-informed speculation without understanding. We’ve clearly done a deal [with Nine]. We clearly want to work together,” he said, noting it would work against him to go up against Nine and Domain.
<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/2019/5/1/Domain-News.jpg" alt="">
“The speculation doesn’t have any basis. It’s actually completely contrary to what’s in front of you.”
Catalano did, however, concede he once had visions of such a roll-up.
“I actually thought at one time that Fairfax should actually buy advertising agencies in the real estate space [to] close the loop,” he told Mumbrella.
Domain has reported a 6 percent dip in revenues in a market update released yesterday.
It comes on the back of a 13% decline in residential sale listings during the March quarter, with Domain CEO Jason Pellegrino adding agent upselling and enhanced consumer products were offsetting the decline in listing volumes.
The result reflect Domain’s performance across the first three months of calendar year 2019.
Despite the listings falls, the company reported double-digit growth in residential digital yield.
Deepening the Domain brand and content integration with Nine including a new Your Domain TV show and other TV integrations are set to occur.
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"Our relationship with Nine provides unparalleled opportunity to expand Domain’s reach and engagement. We have several initiatives underway," Pellegrino said.
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"We are expanding our business model beyond the typical six-month transaction window to service the entirety of the typical 10-year property ownership cycle," he said.
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Antony Catalano denies claims he's set to take on Domain

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GUEST OBSERVATION
Globally, road crashes <a href="https://www.un.org/press/en/2013/sgsm15005.doc.htm" target="_blank">kill 1.3 million people a year</a> and injure nearly 50 million more. Autonomous vehicles (AVs) have been identified as a potential solution to this issue if they can learn to identify and avoid situations leading to crashes.
Unlike human drivers, these vehicles won’t get tired, drive drunk, look at their phone, or speed. What’s more, AVs will reduce congestion and pollution, increase access to public transport, be cheaper, improve mobility for people with disabilities, and make transport fun again. Right?
Well, <a href="https://infrastructure.gov.au/transport/automatedvehicles/files/automated-vehicles-brochure.pdf" target="_blank">that’s what the brochure says</a>.
Rightly or wrongly, <a href="https://www.bloomberg.com/news/articles/2018-08-01/autonomous-car-tech-investment-skyrockets-on-softbank-deals" target="_blank">billions of dollars</a> are being poured into autonomous vehicle research and development to pursue this autopia. However, barely any resource or thought is being given to the question of how humans will ultimately respond to the AV fleet. In a city full of autonomous cars, how might our behaviour and use of city streets change?
In one scenario, people could act on the knowledge that these vehicles will stop any time someone chooses to step in front of them, bringing traffic to a halt.
Humans (and animals) will adapt
O⁠n⁠e⁠ ⁠o⁠f⁠ ⁠h⁠u⁠m⁠a⁠n⁠s'⁠ ⁠g⁠r⁠e⁠a⁠t⁠ ⁠s⁠t⁠r⁠e⁠n⁠g⁠t⁠h⁠s⁠⁠ is our⁠ ⁠a⁠d⁠a⁠p⁠t⁠a⁠bility⁠. We quickly ⁠⁠l⁠e⁠a⁠r⁠n⁠ ⁠t⁠o⁠ ⁠m⁠a⁠n⁠i⁠p⁠u⁠l⁠a⁠t⁠e⁠ ⁠a⁠n⁠d⁠ ⁠e⁠x⁠p⁠l⁠o⁠i⁠t⁠ ⁠o⁠u⁠r⁠ ⁠e⁠n⁠v⁠i⁠r⁠o⁠n⁠m⁠e⁠n⁠t⁠.⁠ A future road environment saturated with autonomous vehicles will be no different.
⁠F⁠o⁠r ⁠e⁠x⁠a⁠m⁠p⁠l⁠e⁠, think about why you don’t walk out in front of traffic or drive through stop signs. Because other cars could injure or hurt you, right?⁠ ⁠
But autonomous vehicles promise something new. They are being designed to “<a href="https://www.youtube.com/watch?v=iRIn4-5TmUM" target="_blank">act flawlessly</a>”.
There are two elements to this: the first is not making mistakes, and the second is compensating for the occasional errors and misjudgements that fallible humans make. Autonomous vehicles promise alignment with Asimov’s First Law of Robotics: "A robot may not injure a human."
Now imagine crossing a road or highway in a city saturated by autonomous cars where the threat of being run over disappears. You⁠ ⁠<a href="https://www.newscientist.com/article/dn24076-birds-are-aware-of-speed-limits-on-roads/" target="_blank">(⁠o⁠r⁠ ⁠a⁠n⁠y⁠ ⁠o⁠t⁠h⁠e⁠r⁠ ⁠mildly i⁠n⁠t⁠e⁠l⁠l⁠i⁠g⁠e⁠n⁠t⁠ ⁠a⁠n⁠i⁠m⁠a⁠l⁠)</a>⁠ might quickly learn that ⁠⁠oncoming traffic <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=2&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwjWi__RncXhAhXoiVQKHV8DCZIQwqsBMAF6BAgHEAc&amp;url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DpjQt2lEZIXg&amp;usg=AOvVaw2Sfosz-BND_3X573Ne7IEM" target="_blank">poses no threat at all</a>. Replicated thousands of times across a dense inner city, this could produce gridlock among safety-conscious autonomous vehicles, but virtual freedom of movement for humans – maybe even heralding a return to pedestrian rights of yesteryear.
<a href="https://images.theconversation.com/files/268560/original/file-20190410-2924-pg0xju.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/268560/original/file-20190410-2924-pg0xju.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Could an autonomous vehicle future return the streets to humans, as seen here in early 20th-century Melbourne outside Flinders Street Station? University of Melbourne Architecture, Building &amp; Planning Glass Slides Collection
A simple example of how this might happen comes from game theory. Take two scenarios at an intersection where pedestrians and vehicles negotiate priority to cross first. Each receives known “pay-offs” for behaviour in the context of the other’s action. The higher the comparative pay-off for either party, the more likely the action.
In the left-hand scenario below, the <a href="https://en.wikipedia.org/wiki/Nash_equilibrium" target="_blank">Nash equilibrium</a> (the optimum combined action of both parties) exists in the lower left quadrant where the pedestrian has a small incentive to “stay” to avoid being injured by the manually driven car, and the driver has a strong incentive to “go”.
However, in the scenario on the right, the autonomous vehicles has a desire to act flawlessly and pose no threat to the pedestrian at all. While this might be great for safety, the pedestrian can now adopt a strategy of “go” at all times, forcing the AV to stay put.
<a href="https://images.theconversation.com/files/268555/original/file-20190410-2931-gru7no.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/268555/original/file-20190410-2931-gru7no.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
A simple ‘normal game’ comparison of pedestrians versus manually operated and autonomous cars negotiating intersections. Author provided
Can this potential problem be overcome?
One solution might be to ⁠p⁠r⁠o⁠g⁠r⁠a⁠m⁠ ⁠⁠a⁠l⁠g⁠o⁠r⁠i⁠t⁠h⁠m⁠s⁠ into vehicles ⁠t⁠h⁠a⁠t⁠ make them ⁠o⁠c⁠c⁠a⁠s⁠i⁠o⁠n⁠a⁠l⁠l⁠y⁠,⁠ ⁠p⁠u⁠r⁠p⁠o⁠s⁠e⁠f⁠u⁠l⁠l⁠y⁠,⁠ ⁠r⁠u⁠n into⁠ ⁠people, animals or other <a href="https://www.theverge.com/2019/4/22/18511527/elon-musk-tesla-aggressive-autopilot-mode-fender-bender" target="_blank">vehicles</a>⁠⁠. Although this would maintain a level of fear and caution in the population, l⁠e⁠g⁠a⁠l⁠l⁠y⁠ ⁠a⁠n⁠d⁠ ⁠m⁠o⁠r⁠a⁠l⁠l⁠y⁠⁠ ⁠it is hard to see how this would be ⁠a⁠c⁠c⁠e⁠p⁠t⁠a⁠b⁠l⁠e⁠.
Another option could be infrastructure separating autonomous vehicles from vulnerable road users, such as pedestrians and cyclists. But the cost and reduction in amenity this would create would be enormous. Further, this type of solution <a href="https://www.towardszero.vic.gov.au/news/articles/flexible-barriers-how-they-work-and-the-cheese-cutter-myth" target="_blank">could be applied now</a>, negating much of the need for AV software and technology development in the first place.
A final, duplicitous idea is to simply turn off the safety systems that cause so-called “erratic vehicle behaviour” (i.e., slowing down to avoid hitting people). This is reported to have occurred when a <a href="https://www.ntsb.gov/investigations/AccidentReports/Reports/HWY18MH010-prelim.pdf" target="_blank">self-driving Uber struck and killed a pedestrian in Arizona last year</a>. However, if this is the solution, you then have to ask, “What is the transport problem autonomous vehicles are actually trying to solve?”
It won’t happen overnight
In the scenarios above most of the fleet are autonomous vehicles, and humans adapt to their consistently safe behaviour. However, the <a href="https://www.wired.com/story/future-of-transportation-self-driving-cars-reality-check/" target="_blank">complete transition</a> to autonomous vehicles <a href="http://www.infrastructurevictoria.com.au/AVadvice" target="_blank">will not occur overnight</a> and might create new crash situations that are, so far, poorly understood.
For example, we are developing simulations of interactions between vulnerable road users and a mixed fleet of autonomous vehicles and human-driven cars. These models show how inconsistencies between the behaviour of manual and autonomous vehicle types could even lead to <a href="https://www.propertyobserver.com.au/https://twitter.com/Agent_Jase/status/1116179718967939072" target="_blank">more crashes during the transition</a>.
The future for AVs under threat
As AV technology rolls on, and the marketing hype surrounding them continues to draw attention <a href="https://techcrunch.com/2019/03/12/ubers-self-driving-car-unit-was-burning-20-million-a-month/">and burn up investment dollars</a>, it should be remembered that humans and animals are still going to behave how we always have by continually adapting and exploiting weaknesses in our environment.
Part of the promise of autonomous vehicles is their proposed safety through deference to human life. But, if the point of transport systems is to enable efficient movement of people and goods for the benefit of society, this strength of AVs might prove to be their ultimate weakness as a viable mass transport mode.<img src="https://counter.theconversation.com/content/114504/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Jason Thompson, Senior Research Fellow, Transport, Health and Urban Design (THUD) Research Hub, University of Melbourne
Gemma Read, Senior Research Fellow in Human Factors &amp; Sociotechnical Systems, University of the Sunshine Coast
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/nothing-to-fear-how-humans-and-other-intelligent-animals-might-ruin-the-autonomous-vehicle-utopia-114504" target="_blank">original article</a>.
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How humans (and other intelligent animals) might ruin the autonomous vehicle utopia

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The shortlist for the 2019 NSW Architecture Awards has been revealed.
The shortlist contains 97 entries across 12 categories.
The shortlist was developed following an intensive schedule of presentations, while now the juries, led by Chair of Juries Peter Poulet, will undertake site visits in early May.
“Jurors across categories are looking forward not only to experiencing the shortlisted projects in the flesh, but also to the discussions and debate about architectural excellence that will flow from this next and critical stage in the judging process,” said Poulet.
This year’s program attracted a wide range of projects, from major civic, cultural and commercial buildings to small public amenities, from high-end luxury residences to sustainable, adaptable homes, said NSW Chapter President Kathlyn Loseby.
“This year we have seen notable increases in entries for the Houses (New) and Multi-Residential awards categories,” Loseby said.
“Across residential projects we saw a strong trend towards a material palette of timber and off-form concrete combined with planting and courtyards.
“Sustainability is gaining even greater emphasis for architects and their clients.
“This year we are also pleased to have established a more formal entry process for the Sustainability Category, which received 97 entries.”
The winners in each category will be announced at the 2019 NSW Architecture Awards ceremony on Friday 5 July in Sydney’s Alexandria.
The winner of the NSW Architecture Medallion for best entry across all categories will also be announced.
Entries that earn NSW Chapter Awards and Named Awards will progress to be considered by the National Jury for the National Architecture Awards later this year.
Shortlisted projects are listed in alphabetical order by practice name.
<ul>
<li>Residential Architecture – Houses (new)</li>
</ul>
37 entries / 12 shortlisted projects
Courted House | Breakspear ArchitectsLune de Sang Pavilion | CHROFIWoollahra Courtyard House | CO-AP (Architects)
Bondi House | Collins and Turner The Seed House | fitzpatrick+partnersBundeena Beach House | Grove ArchitectsSunrise House | MCK Architects Bay Guarella | Peter Stutchbury ArchitectureGB House | Renato D'Ettorre ArchitectsMerewether | SAVIO PARSONS Castle Cove House | Terroir Almora House | Tonkin Zulaikha Greer Architects
<ul>
<li>Residential Architecture – Houses (new) Jury</li>
</ul>
Ed Lippmann (Chair) | Lippmann Partnership Miriam Green | Studio M
Matt Chan | Scale Architecture Linda Morris | Sydney Morning Herald
<ul>
<li>Residential Architecture – Multiple Housing</li>
</ul>
32 entries / 13 shortlisted projects
Polaris | Allen Jack + Cottier Architects The Burcham | Allen Jack+Cottier Iglu Redfern | Bates Smart OneA | Breakspear Architects and Kann Finch Group
Emblem | BVN North Rocks | Candalepas Associates Mezzo | CHROFI and KANNFINCH 100 Balmain | Custance Architects Omnia | Durbach Block Jaggers Architects with SJB Architects Arlington Grove | Smart Design Studio Imperial | Stanisic Architects Illume - Tony Caro Architecture, MAKO Architecture | Tony Caro Architecture (concept and DA) and MAKO Architecture (Design Development and Documentation)
537 Elizabeth Street | Woods Bagot
<ul>
<li>Residential Architecture – Multiple Housing Jury</li>
</ul>
Conrad Johnston (Chair) | Fox Johnston
Ines Benavente-Molina | HDR Paulo Macchia | Government Architect NSW
<ul>
<li>Residential Architecture – Houses (Alterations and Additions)</li>
</ul>
30 entries / 11 shortlisted projects
Maybanke | Allen Jack &amp; Cottier ArchitectsSurfside House | Andrew Burges ArchitectsNaremburn Twin Peaks | Benn + Penna Architecture
Peekaboo | Carter Williamson ArchitectsMoreton Manor | CO-AP (Architects) Five Gardens House | David Boyle ArchitectMachiya House | Downie North ArchitectsRedfern Warehouse | Ian Moore ArchitectsExtruded House | MCK ArchitectsErskineville Creature | Retallack ThompsonTwin Set | Welsh + Major Architects
<ul>
<li>Residential Architecture – Houses (alterations and additions) Jury</li>
</ul>
Ed Lippmann (Chair) | Lippmann Partnership Miriam Green | Studio M
Matt Chan | Scale Architecture Linda Morris | Sydney Morning Herald
<ul>
<li>Interior Architecture</li>
</ul>
25 entries / 10 shortlisted projects
Caroma On Collins | Archier Our Lady of the Assumption Catholic Primary School | BVN Sydney Dance Company Rehearsal Studios |Dunn &amp; Hillam Architects
Redfern Warehouse | Ian Moore ArchitectsWest Hotel Sydney | In Collaboration - Fitzpatrick+Partners - Architecture / Woods Bagot – Interiors
Light House | Neeson Murcutt ArchitectsBrown Street House | Rod Pindar &amp; Natalie Sciberras Green Square Library and Plaza | Studio Hollenstein with Stewart Architecture Castle Cove House | TERROIR in collaboration with Pascale Gomes-McNabb DesignDangrove | Tzannes
<ul>
<li>Interior Architecture Jury</li>
</ul>
Sandra Furtado (Chair) | Furtado Sullivan Tony Grist | HASSELL Amber Stewart | ARM Architecture
<ul>
<li>Public Architecture</li>
</ul>
14 entries / 8 shortlisted projects
Royal Far West Centre for Country Kids |
Architectus Newcastle Interchange | CCG ArchitectsMaitland Riverlink | CHROFI with McGregor Coxall Shellharbour Civic Centre | DesignInc in association with Lacoste+Stevenson State Library of New South Wales | HASSELLCabarita Park Conservatory | Sam Crawford Architects Forensic Medicine &amp; Coroners Court Complex |Silver Thomas Hanley and COX ArchitectureGreen Square Library and Plaza | Studio Hollenstein with Stewart Architecture
<ul>
<li>Public Architecture Jury</li>
</ul>
Jonathan Evans (Chair) | Tzannes Jamileh Jahangiri | Cox Architecture Jasmin Williamson | John Wardle Architects
<ul>
<li>Small Project Architecture</li>
</ul>
11 entries / 3 shortlisted projects
Kangaroo Valley Outhouse | Madeleine Blanchfield Architects Punch Park Amenities | Carter Williamson Architects
Bungarribee Parklands Shelters | Stanic Harding Architects with Paramatta Park &amp; Western Sydney Parklands Trusts
<ul>
<li>Small Project Architecture Jury</li>
</ul>
Elisha Long (Chair) | Long Blackledge Architects Ava Shirley | Peter Stutchbury Architecture Luigi Rosselli | Luigi Rosselli Architects
<ul>
<li>Educational Architecture</li>
</ul>
18 entries / 10 shortlisted projects
Faculty of Arts and Social Sciences, University of Sydney | Architectus Field Studies Centre | Building Studio Architects
Our Lady of the Assumption Catholic Primary School (pictured above) | BVN University of Sydney F23 Administration Building | Grimshaw Architects
The University of Sydney Life, Earth &amp; Environmental Services Building | HDRTaronga Institute of Science and Learning |NBRS ARCHITECTURE
St Pius X High School, Library | SHACBalgowlah Zone Substation Adaptive Reuse - Giraffe Early Learning Centre | SupercontextPenrith Anglican College Performing Arts Centre | TERROIR UNSW Roundhouse | Tonkin Zulaikha Greer
<ul>
<li>Educational Architecture Jury</li>
</ul>
Jonathan Evans (Chair) | Tzannes Jamileh Jahangiri | Cox Architecture Jasmin Williamson | John Wardle Architects
<ul>
<li>Urban Design</li>
</ul>
10 entries / 6 shortlisted projects
Harbourfront Balmain | Bates Smart Maitland Riverlink | CHROFI with McGregor Coxall The Flour Mill of Summer Hill | HASSELLElizabeth Bay Marina | Lahznimmo architectsHarold Park - Mirvac Design | Mirvac DesignGreen Square Library and Plaza | Studio Hollenstein with Stewart Architecture and Hassell
<ul>
<li>Urban Design Jury</li>
</ul>
Conrad Johnston (Chair) | Fox Johnston Ines Benavente-Molina | HDR Paulo Macchia | Government Architect NSW
<ul>
<li>Heritage</li>
</ul>
14 entries / 9 shortlisted projects
The Burcham | Allen Jack+Cottier Balmain Rock | Benn + Penna ArchitectureParamount House Hotel | Breathe ArchitectureState Library of New South Wales | HASSELLSt John’s College Library | Hector Abrahams Architects Renewal of the Opera House’s Joan SutherlandTheatre | Scott Carver Balgowlah Zone Substation Adaptive Reuse - Giraffe Early Learning Centre | SupercontextHouse in Darlinghurst | Tribe Studio Tayim | Welsh + Major Architects
<ul>
<li>Heritage Jury</li>
</ul>
Elisha Long (Chair) | Long Blackledge Architects Ava Shirley | Peter Stutchbury Architecture Luigi Rosselli | Luigi Rosselli Architects
<ul>
<li>Commercial Architecture</li>
</ul>
18 entries / 8 shortlisted entries
Barrack Place | Architectus 2 Bligh Street | Bates Smart Paramount House Hotel (pictured below) | Breathe Architecture
 <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/2019/4/Paramount%20House%20Hotel%20-%20Sharyn%20Cairns.jpg" alt="">
400 Barangaroo Avenue | Durbach Block Jaggers Architects West Hotel | In Collaboration - Fitzpatrick+Partners - Architecture / Woods Bagot - Interiors
Rail Operation Centre | Jacobs with Smart Design Studio Little Albion Guest House (SURRY HILLS SURRY HILLS) | Terence Yong Architecture, Shed (Architecture) with Archemy, Space Control (Interior Design)
Dangrove | Tzannes
<ul>
<li>Commercial Architecture Jury</li>
</ul>
Sandra Furtado (Chair) | Furtado Sullivan Tony Grist | HASSELL Amber Stewart | ARM Architecture
<ul>
<li>Sustainable Architecture</li>
</ul>
7 shortlisted projects
The Burcham | Allen Jack+Cottier Paramount House Hotel | Breathe ArchitectureOur Lady of the Assumption Catholic Primary School | BVN Imprint House | Anderson Architecture UNSW Roundhouse | Tonkin Zulaikha GreerBundeena House | RAAarchitects My Ideal House by Mirvac | Mirvac Design with Madeleine Blanchfield
<ul>
<li>Sustainable Architecture Jury</li>
</ul>
Rod Simpson (Chair) | Greater Sydney Commissioner Mary Casey | HKA Adam Russell | Roberts Day
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2019 NSW Architecture Awards shortlist announced

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

Staff reporter

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