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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

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

Staff reporter

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