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GUEST OBSERVER
So much for the <a href="https://theconversation.com/the-reserve-bank-thinks-the-recovery-will-look-v-shaped-there-are-reasons-to-doubt-it-138213">v-shaped recovery</a>.
Australia is set to record its biggest quarterly fall in GDP in history this week. The federal government will extend its JobKeeper wage subsidy program by six months. About <a href="https://theconversation.com/victoria-will-have-more-people-on-jobkeeper-in-december-and-march-quarters-than-the-rest-of-australia-combined-145301">1.75 million workers</a>, including about 1 million Victorians, are expected to rely on it till March.
But there’s more to be done, particularly to help the small and medium-sized businesses taking the brunt of the COVID-19 economic impacts.
Small and medium enterprises employ about <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/8155.0Main%20Features42018-19?opendocument&amp;tabname=Summary&amp;prodno=8155.0&amp;issue=2018-19&amp;num=&amp;view=">two-thirds of the workforce</a>. They are crucial to the prosperity of local communities.
A full third are pessimistic about <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5676.0.55.003Main%20Features3August%202020?opendocument&amp;tabname=Summary&amp;prodno=5676.0.55.003&amp;issue=August%202020&amp;num=&amp;view=">making it through</a> the next three months, according to the Australian Bureau of Statistics’ most recent survey of <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5676.0.55.003Main%20Features3August%202020?opendocument&amp;tabname=Summary&amp;prodno=5676.0.55.003&amp;issue=August%202020&amp;num=&amp;view=">COVID-19 business impacts</a>. By comparison only 18% of large companies (those employing more than 200 employees) expect difficulties in meeting their financial obligations.
Even at the best of times many small businesses struggle. Yet <a href="http://dx.doi.org/10.1108/ijebr-01-2020-0031">our research</a> on 223 Australian business owners highlights failure (or success) isn’t just the result of individual entrepreneurs’ personal resources and capabilities. The local business environment plays a significant role.
As Malcolm Gladwell puts it in his book <a href="https://www.goodreads.com/book/show/3228917-outliers">Outliers: The Story of Success</a>:
The tallest oak in the forest is the tallest not just because it grew from the hardiest acorn, it is the tallest also because no other trees blocked its sunlight, the soil around it was deep and rich, no rabbit chewed through its bark as a sapling, and no lumberjack cut it down before it matured.
The same is true for businesses. Even the most resourceful business owners struggle to get ahead when the environment stifles their efforts.
This is a thorny problem for governments as they turn from emergency measures to chart longer-term recovery policies.
There will, no doubt, be much debate over the usual areas – of subsidies and grants, tax breaks, red tape and industrial relations changes. But we suggest four less obvious priorities to create a favourable environment for small business.
1. Government procurement
Small businesses should be given a real advantage in procurement. Procurement policies and processes must be clear, protective and accessible to the small guys, <a href="https://www.smh.com.au/business/small-business/incredibly-traumatised-small-businesses-facing-bushfire-insurance-maze-20200122-p53tkp">not a maze</a> that ends up helping only the big corporations.
The <a href="https://www.asbfeo.gov.au/about/the-ombudsman">Australian Small Business and Family Enterprise Ombudsman</a>, Kate Carnell, has proposed that federal government contracts worth up to A$10 million <a href="https://www.smartcompany.com.au/coronavirus/small-business-ombudsman-calls-for-small-business-procurement-panel/">go through a small business panel</a> as part of the tender process. “Lowest cost is not always the best value for money,” she said. We agree, with state and local government procurement policies being equally important.
2. Ensure they get good advice
One of the biggest decisions many small business owners will face will be whether to borrow money to keep their business going or cut their losses. That’s something for which they should get sound professional advice.
But when small businesses are cash-strapped, cutting back spending on advisers such as lawyers and accountants can be an obvious way to save money.
State and local governments offer some (limited) support to small business advisory services. Western Australia’s <a href="https://www.businessnews.com.au/article/The-Small-Business-Development-Corporation-helping-to-support-your-local-business-community">Small Business Development Corporation</a>, for example, provides free advice to local government for encouraging small business.
What we need now is a national program to ensure all small business owners can get good, free professional advice.
3. Encourage localism
Encouraging consumers to “buy local” is a pillar of regional development strategies. “Buy Australian” campaigns have been around since the 1980s with the latest incarnation <a href="http://www.buyaustralianmade.com.au/">Buy Australian Made</a> campaign launched in June. Its slogan: “It’s never been more important to buy Australian than right now.”
The success of these campaigns is <a href="https://theconversation.com/why-businesses-arent-buying-it-when-it-comes-australian-made-3022">open to debate</a>, but the general principle appears sound. A <a href="https://doi.org/10.1016/j.jclepro.2017.07.039">2017 analysis</a> of foodstuffs, for example, found greater localism associated with more resilient and sustainable local economies.
4. Promote mental health
The last measure is more psychological support. This has been a neglected area in the past, but improving business owners’ mental health is as effective as building a stronger network or increasing cash flow.
<a href="http://dx.doi.org/10.1108/ijebr-01-2020-0031">Our calculations</a> suggest developing hope, optimism, self-efficacy and resilience can improve firm performance by 38%. That’s the same as building a stronger social network (38%), and twice as much as formal entrepreneurial education (15%).
With growing recognition of mental health issues, and the effects of COVID-19 crisis, government policies to promote small business should include a focus on business owners’ mental health.
So what does it all mean?
Together, these key factors determine whether business owners can leverage their own resources to drive performance and ride out the recession.
In the words of motivational speaker Alexander Den Heijer in <a href="https://www.goodreads.com/book/show/40203003-nothing-you-don-t-already-know">Nothing you don’t already know</a>:
When a flower doesn’t bloom, you fix the environment in which it grows, not the flower.
Hopefully that will be enough.<img src="https://counter.theconversation.com/content/145310/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;">
<a href="https://theconversation.com/profiles/andrei-alexander-lux-883644">Andrei Alexander Lux</a>, Lecturer in Leadership and Organisational Behaviour, <a href="https://theconversation.com/institutions/edith-cowan-university-720">Edith Cowan University</a> and <a href="https://theconversation.com/profiles/flavio-romero-macau-998456">Flavio Romero Macau</a>, Senior Lecturer in Supply Chain Management and Global Logistics, <a href="https://theconversation.com/institutions/edith-cowan-university-720">Edith Cowan University</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/4-things-governments-can-do-to-help-small-business-145310">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Four things governments can do to help small business

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GUEST OBSERVER
It’s become a truism of Australian politics that important economic reform peaked in the 1980s and 1990s.
Sometimes the early years of the Howard government in the late 1990s are given credit as well.
This Grattan Institute map of important reforms illustrates the story.
<a href="https://images.theconversation.com/files/355743/original/file-20200901-18-1sru2fr.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/355743/original/file-20200901-18-1sru2fr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
 Notes: Reforms that were not passed, or that were subsequently substantially wound back or repealed, are shown shaded out. A/T/M = Abbott/Turnbull/Morrison. FTAs = Free Trade Agreements. PBO = Parliamentary Budget Office. GBE = Government Business Enterprise. CBA = Commonwealth Bank of Australia. Airline IPO = the sale and Initial Public Offering of Qantas in 1993 and 1995. <a class="source" href="https://blog.grattan.edu.au/2020/08/oecd-track-record/">Access Economics (2019); The Economist (2011); Grattan analysis</a>
<hr>
Indeed, it looks like Australian governments have merely ‘improved’ at unwinding the reforms of their predecessors, and the reforms they propose for themselves.
But it’s possible that this is all just the rosy-hued memories of former <a href="https://www.ceda.com.au/CEDA/media/General/Publication/PDFs/CEDA-Top-10-Speeches-of-2017-Paul-Keating-Final.pdf">politicians</a>, <a href="https://treasury.gov.au/speech/reflections-on-australias-era-of-economic-reform">public servants</a>, and <a href="https://www.afr.com/opinion/australia-must-rediscover-the-spirit-of-the-1980s-reformers-20180222-h0whbg">journalists</a>.
It might also be that today there are fewer policy reforms worth doing – perhaps most of the big ones have already been done.
<a href="https://images.theconversation.com/files/355750/original/file-20200901-14-m6y0gv.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/355750/original/file-20200901-14-m6y0gv.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
To test whether previous governments really were better at reform than more recent governments, we would need a running list of reforms proposed in advance, so we could see what proportion were adopted.
Between 1972 and 2018, the Organisation for Economic Co-operation and Development produced 31 <a href="https://www.oecd.org/economy/australia-economic-snapshot/">Economic Surveys of Australia</a> – roughly one every 18 months.
Each publication put forward reforms that the OECD believed would increase economic growth and living standards.
The good old days were better
Our <a href="https://blog.grattan.edu.au/2020/08/oecd-track-record/">analysis of the full series</a> finds that between 1984 and 2001 the overwhelming bulk of these recommendations were taken up by the Hawke and Keating governments, and by the Howard government in its first two terms.
But from roughly 2003 onwards, the record is a lot more patchy: many more of the reforms recommended by the OECD have been either rejected, only partially implemented, or (in the case of carbon pricing) implemented and then unwound.
<hr>
Fate of OECD Economic Survey recommendations
<a href="https://images.theconversation.com/files/355776/original/file-20200901-24-wqmkwn.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/355776/original/file-20200901-24-wqmkwn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> 
Policies that the OECD recommended but which ran into the sand include reducing the gap between the company tax and top personal income tax rates, implementing a mining resource rent tax, reviewing negative gearing, creating competitive neutrality among Australian ports, aligning the eligibility ages for superannuation and the age pension, including more of the value of owner-occupied housing when calculating eligibility for the age pension, and raising Newstart.
 
A number of other proposed reforms continue to sit in the too-hard basket, including increasing the rate and coverage of the goods and services tax, swapping stamp duties for property taxes, congestion charging for roads, and the use of smart meters for time-of-day electricity pricing.
An imperfect measure, that tells us something
As a means to evaluate the history of reform, the OECD Economic Surveys aren’t perfect, but they’re guide.
It’s true that the scope and number of OECD recommendations has expanded over time, but that expansion was already underway during the Hawke/Keating and Howard eras.
And it’s arguable that these days, the OECD recommends smaller reforms - it certainly recommended many more between 1997 and 2010.
It’s likely that the OECD’s recommendations are partly influenced by the views of the government of the day. But many recommendations have been suggested under one government and implemented by the next.
And while OECD recommendations aren’t gospel, many policy experts support most of them. For instance, all of the policies that are on the OECD’s continuing wish-list are <a href="https://grattan.edu.au/report/commonwealth-orange-book-2019/">also advocated</a> by the <a href="https://grattan.edu.au/report/state-orange-book-2018/">Grattan Institute</a>.
Our review of what happened after the OECD surveys is broadly consistent with popular wisdom, or at least the recollections of old men (usually men) that the good old days really were better.
 
And it is consistent with work in progress by <a href="https://www.afr.com/policy/economy/official-reform-efforts-hit-multi-decade-low-20200811-p55kp9">Alphabeta</a> reviewing the history of Australian economic reform.
Our review also shows that it often takes a long run-up of research, advocacy, and detailing before a government implements a major reform. Many reforms were only implemented after sitting on the slate for well over a decade, including the goods and services tax, lower tariffs, a more flexible award system, lower company tax, and competition in utility industries. Reforms often require patient advocacy.
It’s hard to prove beyond reasonable doubt that Australia has got worse at it. But our review of the OECD’s recommendations for Australia over the past 48 years is consistent with the oft-cited view that governments in the most recent 20 years have rejected many more significant reforms than governments in the 20 years before them.
There’s plenty still on the slate for the 20 years to come.
<a href="https://theconversation.com/profiles/john-daley-1870">John Daley</a>, Senior Fellow, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/rory-anderson-1151011">Rory Anderson</a>, Researcher, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/when-it-comes-to-economic-reform-the-old-days-really-were-better-we-checked-145296">original article</a>.
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When it comes to economic reform, the old days really were better

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McGrath Limited today announced the appointment of an additional non-executive director, Shane Smollen.

Mr Smollen’s appointment follows McGrath posting a significant turnaround with Underlying EBITDA of $3.7 million for the year to 30 June 2020, compared with a loss of $6.4 million in the previous year.

A leading property professional since 1983, Mr Smollen owned one of the country’s leading real estate networks before selling it to McGrath in 2015. Mr. Smollen, who currently holds 7.94% of McGrath’s issued capital, has been advising McGrath’s sales management team over recent months with a focus on productivity and revenue growth.

Chair of McGrath, Mr. Peter Lewis, said “Shane brings to the board an excellent real estate track record with expertise in all aspects of the sector, combined with integrity and insights that will accelerate our profit turnaround and restore shareholder value."

Mr Smollen said “I am delighted to join the board of McGrath, a company that I know well. I believe the group is well placed to take advantage of an expected consolidation of the real estate agency sector.

McGrath has performed significantly better than the market during the year, notwithstanding the ongoing impacts of COVID.

<h2>Recently listed properties:</h2>

[smartcode_project:default project_id=24323]

[smartcode_project:default project_id=22699]

[smartcode_project:default project_id=26730]
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McGrath appoints Shane Smollen as non-executive director

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Q2 GDP fell by a massive 7% (-6.3% y/y), confirming the large hit to economic activity as a result of the shutdown to limit the COVID-19 pandemic.
The fall in activity was driven by a collapse in household consumption, where spending on services fell 18% amid the peak of the restrictions.
Likewise, by industry, hospitality and recreational services saw the largest falls in activity, although nearly all industries were heavily impacted. We expect that we are past the peak impact on activity, but the recovery will be still be a long process.
We forecast a broadly flat outcome in Q3 (which will be impacted by the Victorian restrictions) and a ramping up in the level of activity as the economy reopens in the first half of 2021.
The labour market will continue to deteriorate given the lags from activity to labour market and the worst in unemployment will probably be in early 2021. These accounts also clearly demonstrate the unprecedented support provided by policy makers, which has more than offset the hit to household income - but not the fall in the level of activity itself.
Overall, private sector demand drove the weakness in Q2, where it subtracted 7.9ppt from GDP. In particular, household consumption fell by a record 12% – with a very large 18% fall in services consumption, reflecting widespread restrictions in place early in Q2.
Dwelling investment also saw a sharp 7% decline in the quarter, while new business investment fell 3.5%. This was partially offset by public sector spending and net exports. These accounts also show the substantial support from government.
Despite the large hit to activity and the 10% collapse in hours worked, household income rose 2.5%. This reflects the significant 42% increase in social assistance benefits (welfare payments) and 22% increase in gross mixed income (boosted by JobKeeper), while compensation of employees (wages) only saw a fall of 2.2% (also supported by JobKeeper).
Looking forward, we expect a flatter outcome in the September quarter and a gradual recovery from there – but do not expect the economy to recover its pre-virus level until early/mid 2023. The unemployment rate will continue to rise from here, reaching a peak of over 9% later this year and nearer 10% in early 2021. It will then begin to recover over the course of 2021 and 2022, but will remain well above its starting point and the NAIRU.
From a policy perspective this outlook warrants ongoing support to ensure the recovery can happen as quickly as possible. We expect the RBA will remain on hold for an extended period with the risk of some further easing in policy should their forecasts be disappointed.
On the fiscal side we think ongoing support is required and that more will be likely done – likely in the form of ongoing wage subsidies, higher unemployment benefits and possibly the bring forward of tax cuts. They may also bring forward infrastructure investment and structural reform which would also help.
ALAN OSTER is the NAB Group Chief Economist
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Shocking GDP fall due to collapse in household consumption: NAB's Alan Oster

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ASIC has obtained interim orders in the Federal Court of Australia against companies in the Mayfair 101 group and their director, James Peter Mawhinney, including the appointment of provisional liquidators to M101 Nominees Pty Ltd, the issuer of the M Core Fixed Income Notes promoted by Mayfair 101.
On 13 August 2020, the Court appointed Said Jahani and Philip Campbell-Wilson of Grant Thornton as provisional liquidators of M101 Nominees, pending an application by ASIC to wind up M101 Nominees on just and equitable grounds. ASIC alleges that M101 Nominees has been involved in breaches of the corporations legislation, and there is a justifiable lack of confidence in the conduct and management of its affairs that gives rise to a risk to the public that warrants protection.
In particular, ASIC alleges that M101 Nominees raised approximately $67 million from investors through debentures called the M Core Fixed Income Notes, based on representations that there would be security for the full amount invested. ASIC further alleges that those funds were not fully secured, and consequently, M Core Fixed Income Note investors may be unable to recover the full amount of their principal investment.
The provisional liquidators will provide a report to the Court by 24 September 2020 about the provisional liquidation of M101 Nominees, including identifying its assets and their value, and providing an opinion as to solvency and the likely return to creditors if the company is wound up.
On 13 August 2020, the Court made additional interim orders restraining Mr Mawhinney, and any company of which he is an officer or shareholder, from:
Receiving or soliciting funds in connection with any financial product; Advertising or promoting any financial product; and Removing from Australia any assets acquired with funds received in connection with any financial product.
These orders apply to all products currently offered by Mayfair 101, including the M Core Fixed Income Notes, the M+ Fixed Income Notes and Australian Property Bonds, as well as any other financial product.
The Court also restrained Mr Mawhinney from leaving Australia until further order.
The Court made interim orders restraining Sunseeker Holdings Pty Ltd, of which Mr Mawhinney is a director, from dealing with the units in 14 trusts which hold property at Mission Beach and Dunk Island in Queensland. The units in those trusts are part of the security held on behalf of investors in the M Core Fixed Income Notes.
ASIC’s investigation is ongoing.
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ASIC Investigation ongoing against Mayfair 101 director James Mawhinney

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A mortgagee house in the Ballarat suburb of Miners Rest is under offer with an asking price of between $377,500 and $415,000.
Located at 9 Baxter Street, the property features four bedrooms, two bathrooms, and a double car garage.
Now under offer, it is situated on a 542 square metre block.
The home was built in 2008, and last sold in 2017 for $380,000.
Miners Rest’s median house price is $430,000.
John McMahon, from Professionals Ballarat, has the listing.
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Miners Rest, Victoria mortgagee home under offer

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A mortgagee house, in Kin Kora has been sold for $270,000, $15,000 higher than its asking price. 
Located at 8 Marlock Court, the property features four bedrooms, three bathrooms, and a lockup garage.
It is situated on a 706 square metre block.
The home was built in 1980, and last sold in 2010 for $439,000.
Kin Kora’s median house price is $279,000.
Kerry Connor, from Gladstone Real Estate, had the listing.
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Kin Kora, Queensland mortgagee house sold for $169,000 loss 

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A mortgagee house, in Kin Kora is now under offer with an asking price of $255,000.
Located at 8 Marlock Court, the property features four bedrooms, three bathrooms, and a lockup garage.
It is situated on a 706 square metre block.
The home was built in 1980, and last sold in 2010 for $439,000.
Kin Kora’s median house price is $279,000.
Kerry Connor, from Gladstone Real Estate, has the listing.
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Kin Kora, Queensland mortgagee house listed for $180,000 loss under offer

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EXPERT OBSERVATION
In August, reiwa.com data shows it took a median of 21 days to lease a property in Greater Perth which is 13 days less than the same time last year – making it the quickest time to lease since the construction phase of the last mining boom in February 2015.
Strong demand in the rental market continued into August which recorded improvements to the median rent price, listings volumes and days to lease.
From an individual suburb level, Maddington was the fastest suburb to lease in August, taking a median of seven days to lease, which was closely followed by Armadale with nine days, Coolbellup and Wanneroo with 10 days, and Secret Harbour with 11 days.
The median rent has remained stable at $360, however houses increased $10 per week to $380 and with Perth’s vacancy rate sitting at 1.6 per cent, we can expect to see continued upward pressure on rents in the coming months.
A closer look at the data shows four out of five Perth suburbs experienced an improved or stabilised median rent price, with Perth, Ellenbrook, Hamilton Hill, Bentley and Scarborough the top five performers.
The high demand for rentals has seen rental stock on reiwa.com fall 10 per cent on July, with 3,205 properties for rent on reiwa.com at the end of August and based on present levels of enquiry we expect stock levels to decline further in September.
Feedback from our members on the ground is that there is still only a limited number of investors in the market looking to buy investment property.
It’s important that we return confidence to investors and one way the State Government can lead is to significantly reduce the number of properties subject to the residential tenancies COVID-19 legislation. Unless we get investors confident enough to get into the market, the rental shortage will only get worse.
Perth residential sales market
CoreLogic’s latest home value index shows dwelling values in Perth stabilised in August.
Although overall prices had remained stable in the Perth region, reiwa.com data shows 45 per cent of suburbs experienced an increase in median sale price.
Kelmscott saw the biggest increase to its median in August with a 5.4 per cent increase to $320,000, which was followed by Riverton (up 3.9 per cent), Duncraig (up 3.7 per cent), Piara Waters (up 3.6 per cent), and Carramar (up 3.4 per cent).
Interestingly, three of the top five suburbs had a median sale price under Perth’s median of $475,000 and suggests people are taking advantage of properties in Perth that are priced at the lower end.
Listings for sale were also down in August with only 10,627 properties for sale on reiwa.com, which is 1.2 per cent lower than July and 23.2 per cent lower than this time last year.
In the last few months, sales activity has been particularly strong due to the various government bonus schemes, so it is only natural as the interest around the stimulus eased, we saw activity in August decrease compared to July.
The suburbs that saw the biggest improvement in sales were Stirling, Shenton Park, Fremantle, Bayswater and Iluka.
It certainly appears that Greater Perth, and in fact a large part of Western Australia, has escaped the COVID-19 induced property slowdown. Given the high levels of demand and limited supply, we may even see prices rise later in 2020.
DAMIEN COLLINS is the REIWA President
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WA rental properties leasing two weeks quicker in August: REIWA's Damian Collins

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EXPERT OBSERVER
The national vacancy rate held steady for the third consecutive month, remaining at 2.1 per cent and below the April peak of 2.6 per cent.
A two-speed vacancy rate has emerged as Melbourne entered its first month of heightened stage four restrictions in early August. Elsewhere, other capitals have avoided secondary lockdowns despite minor outbreaks occurring.
Melbourne’s stricter stage four lockdown has disrupted the rental market, with estimated vacant rental listings surging by 20.6 per cent over the month, and a staggering 140.7 per cent higher compared to last year.
In all other capital cities, vacant rental listings continue to see a downward trend in vacant rentals since the April peak.
Vacancy rates across the capitals continued to decline for the fourth consecutive month, except Melbourne, Sydney and Adelaide.
Melbourne has seen a steady rise since April, overtaking Sydney for the first time in the Domain’s vacancy rate series to become Australia’s highest vacancy rate market. Also, vacancy rates in Adelaide and Sydney remained stable over the month but are lower than the April peak.
Sydney’s vacancy rate held steady at 3.5 per cent, now the second highest of all capital cities. This is 50 basis points higher than one year ago. There were an estimated 21,828 vacant rental listings at the end of August, a fall of 0.5 per cent from the previous month.
In Melbourne, vacancy rates surged in August, increasing 60 basis points to 3.8 per cent, the highest rate ever recorded in the Domain vacancy rate series and 220 basis points higher than last year.
This was due to a 20.6 per cent rise in estimated vacancies, with 21,509 rentals sitting vacant by the end of the month. The elevated vacancy rate will continue to put downward pressure on rents in the months to follow.
In Brisbane, the vacancy rate declined 10 basis points to 2.2 per cent. There were an estimated 6679 vacant rental listings at the end of August, a fall of 240 over the month. Year-on-year the vacancy rate remains steady.
Conditions have tightened for Hobart tenants, with the vacancy rate now returning to pre-pandemic levels of March, contracting 10 basis points to 0.6 per cent. This makes Hobart the tightest capital city rental market.
In a small rental market, this represents 28 fewer vacant rentals by the end of the month. Over the year, Hobart’s vacancy rate is still 20 basis points higher than than the extraordinarily tight 0.4 per cent.
In Perth, the vacancy rate has continued its long-term downward trend despite the COVID-19 pandemic shock in April, a sign Perth’s property market is recovering.
The vacancy rate continues to fall, contracting 30 basis points to 1 per cent, and is the lowest vacancy rate recorded in Perth since the inception of the Domain vacancy rate series. This is down from the peak of 5 per cent in June 2017 and down 170 basis points year on year.
The vacancy rate in Canberra continues to fall, declining 10 basis points to 1 per cent, to become the second tightest rental market across the capital cities. Over the year, Canberra is 10 basis points lower.
In Adelaide, the vacancy rate held steady at 0.9 per cent, 10 basis points higher than last year.
Darwin’s vacancy rate continues to see a sharp decline, falling 40 basis points to 1.3 per cent, 210 basis points lower than last year.
NICOLA POWELL is a Senior Research Analyst at Domain
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Melbourne's rental vacancy rate surged 20% in August: Domain's Nicola Powell

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.

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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."

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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.

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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.

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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.

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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.

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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."

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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."

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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.

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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;

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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;

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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.

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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

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