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A Chinese buyer has flown in from Beijing to buy a Hampton retail asset, paying $3.6 million - $200,000 over reserve – on a tight 3.2% yield.
The 2 Small Street property, comprising a 368 square metre shop on a 438 square site, was sold at a healthy $8219 a square metre land rate.
Just 150 metres from Hampton railway station and within a short distance of Hampton Beach, the highly exposed corner site offered dual access points and on-site parking for five cars. The property was sold fully leased, returning $113,500 per annum net.
CBRE Senior Manager, Rorey James, who sold the property with Jing Jun Heng, Nic Hage and Mark Wizel, said the buyer had pointed to Australian commercial real estate as being a safe haven for investment.
"This is another example of the post June 30 trend showing encouraging signs that Chinese money is beginning to flow again," he said.
"Governments may put hurdles in the way but they cannot stop the almost irresistible perception of safety in Australian property.
“How significant that renewed flow is we will see over coming months, particularly towards the end of the year and into the new year with the conclusion of transactions."
Despite the restrictions on off-shore Chinese investors, CBRE has sold 22 properties worth more than $200 million to Asia-linked buyers since the first week of July.
Heng said the property had attracted a strong field of local, interstate and off-shore purchasers, who were also drawn to the potential development upside of a site within Hampton’s prime retail precinct.
"The property offered encouraging value-add growth prospects in the medium to long term based on surrounding heights being achieved and the flexibility of the underutilised landholding in the best location in Hampton," Heng said.
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j.ballantyne1990-6AQqhLzZaK

Buyer flies in from Beijing to swoop on Hampton retail property

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A Greenwich four bedroom home designed by architect Michael Suttor with manicured gardens by Paul Bangay has been listed for sale with a price guide of $5.5 million. 
Hugh Macfarlan, of Raine &amp; Horne HM Group, has scheduled an October 20 auction. 
Set on a 615 square metre allotment, the harbourside house at <a href="https://www.realestate.com.au/property-house-nsw-greenwich-129360526" target="_blank">52 King William Street </a>comes with four bedrooms, formal lounge with fireplace, and open plan living and dining areas served by marble kitchen.
It also features study, self contained teenage retreat, wine cellar, plant room and rainwater tanks.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/10/greenwich%202.jpg" alt="">
The home is just a stroll to the local shops, Greenwich primary school, parks, Harbour foreshore walks and CBD ferry transport, moments to RNS Hospital, and surrounded by Sydney's best private schools.
The suburb's median house price sits at $2.56 million according to CoreLogic. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/10/greenwich%203.jpg" alt="">
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Harbourside Greenwich trophy home set to go under the hammer

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Commercial property confidence is at much more encouraging levels than its residential counterpart, according to the latest ANZ Property Council Survey.
The survey found that the gap in confidence between commercial and residential property has now reached record levels.
Despite this, commercial sentiment has also dropped.
The drop in sentiment in the most recent quarter occurred across all segments, although the retail segment is still the weakest.
<a href="https://www.propertyobserver.com.au/images/2018/10/11/AMP%20Capital%201.JPG" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2018/10/11/AMP%20Capital%201.JPG" alt="">
Sluggish income growth, rising mortgage rates and utility costs and reduced wealth effects as house prices fall are all issues reducing the level of household consumption taking place.
Online retailing and global competition are also continuing to hinder domestic bricks and mortar retailers.
However, the industrial segment is now the most optimistic, displacing tourism.
<a href="https://www.propertyobserver.com.au/images/2018/10/11/AMP%20Capital%202.JPG" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2018/10/11/AMP%20Capital%202.JPG" alt="">
Firms in the industrial industry report that the construction pipeline has increased further over the recent quarter, especially in New South Wales, while it remains elevated in Victoria and Queensland.
Danial Gradwell and David Plank, the authors of the report stated:
"The outlook for capital values is solid, which we think is consistent with demand coming from the strong pipeline of infrastructure projects coming through in those states.
"In addition, while online retailing is disrupting the retail sector, the storage and logistics requirements are supporting the industrial sector."
<a href="https://www.propertyobserver.com.au/images/2018/10/11/AMP%20Capital%203.JPG" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2018/10/11/AMP%20Capital%203.JPG" alt="">
"It is disappointing to see that survey respondents’ appraisal of the federal government has retreated considerably," the report said.
"While the September quarter showed a solid improvement in the government performance index (likely in response to the 2018-19 Budget), the subsequent leadership spill in August appears to have hindered confidence once more."
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Commercial property confidence is solid, for now: ANZ

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Quarterly net absorption across CBD office markets has hit the highest level since Q4 2007, according to recent findings from JLL Research.
JLL Research's Q3 2018 statistics on national office markets showed positive net absorption of 151,200 square metre over the quarter and 258,600 square metres over the 12 months to September 2018.
The national CBD office market vacancy rate compressed 9.1% in Q3 2018 a reduction of 1.8 percentage points over the year to September 2018.
“Labour force surveys show that corporate Australia is increasing headcount which has translated into positive leasing enquiry and activity,” stated JLL Head of Research, Australia, Andrew Ballantyne. 
"While Melbourne continues to be the standout performer, the leasing market upturn is more diverse with above trend net absorption in Canberra, Adelaide, Brisbane and Perth.”
<img src="https://www.urban.com.au/images/2018/10/11/JLL%20Graph%201.JPG" alt="">
The Melbourne CBD recorded 79,900 square metres of net absorption in Q3 2018 and 187,800 square metres over the 12 months to September 2018.
The Melbourne CBD vacancy rate tightened from 4.6% in Q2 2018 to 4.0% in Q3 2018 – the lowest level since Q2 2008.
Melbourne CBD prime gross effective rents increased by 1.1% over Q3 2018 and by 8.7% over the 12 months to September 2018.
“The Melbourne CBD office leasing market juggernaut continues to roll on. Melbourne is one of the world’s strongest performing cities and we continue to see a diverse range of industry sectors expanding their occupational footprint in the Melbourne CBD," JLL Head of Office Leasing, Australia, Tim O’Connor said.
“The Melbourne result was even more impressive as it included the relocation of the Victorian WorkCover Authority to a new premise in Geelong.
“The Melbourne CBD development pipeline will deliver new product over the next two years with 2020 expected to be the largest year for completions since 1991. However, the strength of the demand-side of the equation has led to a downward revision in the vacancy rate. We project 2020 vacancy will be in the 6% territory – well below equilibrium of 7% to 9% for the Melbourne CBD."
<img src="https://www.urban.com.au/images/2018/10/11/JLL%20Graph%202.JPG" alt="">
JLL Research found that the Sydney CBD recorded 8,800 square metres of net absorption over the 12 months to September 2018 and vacancy was 4.7%. Low vacancy continues to exert upward pressure on Sydney CBD rents. Prime gross effective rents increased by 0.8% over the quarter and by 10.1% over the 12 months to September 2018.
“Co-working operators are really ramping up their presence in the Sydney CBD. Two more WeWork facilities opened in Q3 and we are speaking with a number ofpotential new co-working operators. One of the challenges for new entrants is the lack of contiguous space in the Sydney CBD,” O’Connor said. 
The Brisbane CBD recorded 15,400 square metres of net absorption in Q3 2018 and vacancy tightened to 13.9%. Over the past 12 months, net absorption in the Brisbane CBD has totaled 39,600 square metres – 29% above the 40-year average of 30,600 square metres.
“The Brisbane CBD leasing market recovery is starting to gather momentum with prime grade vacancy (8.2%) tightening to the lowest level since Q412. The next phase of the Brisbane recovery will see a reduction in leasing incentives and an improvement in prime effective rents,” Ballantyne said.
The Perth CBD recorded net absorption of 17,600 square metres in Q3 2018 and 34,000 square metres over the 12 months to September 2018. Vacancy remains elevated (22.0%), but the spread between prime (18.0%) and secondary (28.1%) grade vacancy remains wide.
The Adelaide CBD recorded positive net absorption of 14,700 square metres in Q3 2018 and 23,200 square metres over the 12 months to September 2018. The quarterly net absorption in Adelaide was the strongest since Q408. Vacancy tightened to 13.7% with prime grade vacancy moving back into single digit territory (8.3%) in Q3 2018.
Ballantyne said defence, resources and professional services are growth sectors of the Adelaide CBD office market. The expansion of the defence sector and competition for skilled labour has led to organisations shifting operations into the CBD. BAE Systems moved into the CBD from Edinburgh Parks in Q3.
Canberra recorded net absorption of 35,700 square metres in Q3 and vacancy tightened to 11.6%. Low vacancy in the prime grade sector (6.2%) has resulted in rental growth with prime gross effective rents increasing by 3.7% over the 12 months to September 2018.
Ballantyne concluded by noting Brisbane, Perth and Adelaide will be the office markets to watch closely in 2019. Leasing enquiry and activity is positive, prime grade vacancy has tightened in Brisbane and Adelaide and we expect owners will start winding back incentives to a level more associated with current vacancy rates.
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Net absorption across CBD office markets reach their highest levels since 2007: JLL

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Morgan Stanley has forecast the current property downturn will be the largest since the early 1980s.
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“We now see a 10-15 per cent peak to trough decline in real house prices, from 5-10 per cent previously, which would mark the largest decline since the early 1980s," the investment bank said.
“This downgrade largely reflects the downturn’s extended length, as we expect the relatively orderly declines to date will continue.”
The early 1980s saw a severe global economic recession.
<p data-gtm-vis-recent-on-screen-6236702_632="1539287775296" data-gtm-vis-first-on-screen-6236702_632="1539287775296" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">The current modelling now points to larger home price falls arising from new housing supply.
“All housing market drivers remain a drag, but supply-demand balance was the main driver of this quarter’s decline, adding to the drag in previous quarters from tightening credit supply,” Morgan Stanley says, according to the Business Insider website.
</div>
<div class="_1lC_G"> The category measures the gap between completions and the net increase in households.</div>
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“On the supply-side, the run-up in construction from the east coast apartment boom has continued longer than we expected, with completions around 215,000 annualised.
<p data-gtm-vis-recent-on-screen-6236702_632="1539287785316" data-gtm-vis-first-on-screen-6236702_632="1539287785316" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">“On the demand side, net migration has fallen noticeably in the past few quarters, trimming our underlying demand estimate to around 175,000.”
</div>
“We struggle to see improvement in any of our components over the next year, with pre-existing headwinds of net supply, an RBA on hold and sustained focus on lending standards, all independent of potential negative gearing/capital gains tax changes,” Morgan Stanley says.
<div class="_1665V undefined">
With households two times more leveraged to housing than in the early 1980s, the impact on housing equity would be larger again.
</div>
<div class="_1lC_G">Morgan Stanley suggest the large correction comes with a small risk of a disorderly price decline.</div>
<div class="_1665V undefined">
“An acceleration of declines are in our bear case, and we will continue to monitor stress points, including arrears trends,” it says.
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Morgan Stanley forecast property downturn will be the largest since the early 1980s

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GUEST OBSERVATION
On average, renovating a home generates far more waste than building a new one from scratch.
This waste goes straight to landfill, damaging the environment. It also hurts your budget: first you have to pay for demolition, then the new materials, and then disposal of leftover building products.
By keeping waste in mind from the start and following some simple guidelines, you can reduce the waste created by your home renovation.
1. It starts with the design
Waste is often treated as inevitable, factored into a building budget with no serious attempt to reduce it.
By raising the issue early with your architect, designer or builder, they can make decisions at the design stage that reduce waste later. Often the designers and architects don’t see their decisions contributing to waste – or rather, they don’t really think about it.
During my research on reducing construction waste, I asked one architect what he thought happens to the waste generated. He laughed with a glint in his eyes and said, “I think it disappears into pixie dust!”
One simple early decision that dramatically reduces waste is designing with material sizes in mind. If you have a ceiling height that does not match the plasterboard sheet, you end up with a tiny little strip that has to be cut out of a full sheet. In the case of bricks, not matching the ceiling height is even more wasteful.
Obviously not all materials will work together at their standard sizes (and you need to fit your renovation to the existing house). But sensitive design can make intelligent trade-offs, reducing overall waste.
When I asked architects why they don’t design zero-waste buildings more often, they said clients don’t ask for it. Make it part of your brief, and ask the architect how they can save money by using the materials efficiently.
2. Get your builder involved early
If you’re using an architect for your renovation, it’s common to have very little collaboration between them and the builder. Any errors or issues are usually spotted after construction has begun, requiring expensive and wasteful rework.
Instead, ask your architect and builder to collaborate on a waste management plan. Such integrated approaches have worked well in Australia and the United States.
This means clients, engineers and builders are collaborating, rather than taking adversarial roles. For such contracts to work, it’s important to involve all parties early in the project, and to encourage cooperation.
The briefing stage is an opportunity for architects, quantity surveyors and builders to work together to identify a waste minimisation target.
3. Whatever you do, don’t change your mind
One the biggest contributions to waste on sites is late design changes. Client-led design changes are identified in all literature as having far-reaching implications on waste.
These are mostly due to owners changing their mind once something is built. Reworking any part of a building due to design changes can account for as much as 50% of the cost overrun, as well as causing delays and generating waste.
The early work with your design and construction team outlined in the first steps gives you the chance to make sure you’re committed to your original design. Skimping in the planning stage can end up costing you far more in the long run.
4. Deconstruction, not demolition
Ask your builder not to demolish the building, but to deconstruct it. Deconstruction means taking a building apart and recovering materials for recycling and reuse. This provides opportunities for sorting materials on site.
Salvaged materials can be resold to the community or reused in the renovations. It greatly reduces the tip fees which are usually higher for mixed waste (typical from demolition process) and lower for sorted waste.
Of course this takes more time and has an additional cost. Therefore you do have to balance the cost of deconstruction against the savings.
Denmark, which recycles 86% of its construction waste, has made it mandatory for all government buildings to undergo selective demolition and sorting of construction waste. A good place to start in Australia is your state environment department, which may have guidelines on what is involved.
5. Choose materials carefully
Good-quality materials last longer, reducing maintenance later. Choosing manufacturers that use minimal packaging also reduces waste (be careful here to check the difference between “minimal” and “inadequate” packaging, as the latter can mean your material breaks).
Reusing materials from your renovation may also be an option (you will need to discuss this with architect and builder at the beginning of the project). Finally, using materials with recycled content is a great option, and boosts our recycling industry.
In March 2017 the Housing Industry Association released data suggesting the Australian residential building industry will increasingly become more dependent on renovation work rather than new construction,
If you’re renovating your home, making efficiency and low waste a priority helps cut costs and reduce landfill.<img src="https://counter.theconversation.com/content/103942/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;">
Deepika Mathur, Researcher in sustainable architecture, Charles Darwin University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/five-ways-to-reduce-waste-and-save-money-on-your-home-renovation-103942" target="_blank">original article</a>.
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Five ways to save money and reduce waste on your home renovation

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For the tenth consecutive quarter, property experts identified tight credit as the biggest constraint on new housing development in the country, according to the latest NAB Residential Property Survey.
Moreover, they said it was causing more concern than at anytime since mid-2011.
Clearly, intensified lending scrutiny by banks and APRA-inspired tighter credit policies has played a key role.
Tight credit was also singled out as the biggest constraint for new housing development in all states - particularly in NSW where it was viewed as a ‘very significant’ constraint.
The overall level of concern over rising interest rates also grew. It was seen as being most problematic by property professionals in NSW and SA/NT and least problematic in VIC.
Property professionals overall were less concerned about all other factors, especially around lack of development sites and labour availability.
<img src="https://www.urban.com.au/images/2018/10/11/NAB%20QARP%201.JPG" alt="">
Access to credit remains the most ‘significant’ impediment for buyers of existing property as well according to surveyed property professionals.
It was also seen as a much bigger issue than in the last survey and more so than at any time since the Survey began. In fact the property experts surveyed in all states considered access to credit to be the most ‘significant’ issue in their state.
Rising interest rates replaced employment security as the second biggest issue for buyers of existing property in Australia - and in all states expect VIC (house price levels) and WA (employment security).
<img src="https://www.urban.com.au/images/2018/10/11/NAB%20QARP%202.JPG" alt="">
Heightened concern about interest rates is consistent with NAB’s view of the market.
The author's of the survey stated:
"We expect growth to remain above trend which should see the labour market tighten, wages growth lift and inflation more broadly begin to rise.
"As spare capacity is reduced, and inflationary pressures become more evident, the degree of accommodation in monetary policy will be gradually reduced, with the RBA starting a process of rates normalisation towards a more neutral setting."
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Constraint on credit a growing concern for new and established housing: NAB

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Financial adviser Noel Whittaker says headlines about property booms can lure inexperienced buyers into traps.
He also wrote recently that headlines with doom and gloom scenarios can scare people from making a good decision to buy.
"So, if you are serious about investing in property, stop reading the headlines and set yourself a specific plan," advised Noel Whittaker, the author of Making Money Made Simple and numerous other books on personal finance.
"One day we are told that real estate is booming, the next day people like Steve Keen and Harry Dent are predicting falls of up to 40%.
"When a boom is on we are even subjected to articles telling us how much our home is increasing each day, often accompanied by comments that it’s a tax-free gain and worth more than we are earning.
"Of course, it’s all nonsense – capital gain is not something that is happening, it is something that has happened.
"And the sad reality is that a big capital gain last year is a red flag that next year may be very different."
Whittaker noted the principal is called regression to the mean.
"I am not at all troubled by the usual negative comments about property that are circulating at the moment. 
"Australia’s population is on track to reach 40 million within 35 years – this has to be positive for anybody who buys well-located, quality real estate today and hangs on to it for the long term."
He advised there is no such a thing as a single property market – not for Australia, not even for a single capital city – there are myriad property markets all doing their own thing.
"How can you compare a townhouse in Cairns with a mansion in Point Piper?
"All over Australia some markets may be rising, other markets may be falling, and some may be flat."
He also noted real estate figures are notoriously unreliable because they take no account of improvements by owners,
Whittaker advised the first task for prospective investors was to find out exactly what they could afford, which means talking to a lender or mortgage broker, and laying all your cards on the table.
"Then, having worked out your price bracket, you need to research areas where you can buy a property you like for the price you’re able to pay.
"Once you have established that you are in the running, take the time to research the market thoroughly so that you become an expert on the area.
"You do this by going to open houses, befriending local real estate agents, and reading everything you can about your preferred location.
"Then when you come across a genuine bargain you will know that you have struck a winner.
"Always keep in mind that the secret of success in real estate is to buy well, and then add value." 
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Noel Whittaker says if you want to invest in property, stop reading the news

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GUEST OBSERVATION
Might government benefits, and government employment, be a self sustaining machine – one in which those who benefit from government payments deliver the votes needed to ensure they continue?
It’s a proposition seriously put forward by researchers at the Centre for Independent Studies in a new paper entitled <a href="http://www.cis.org.au/publications/policy-papers/voting-for-a-living-a-shift-in-australian-%20politics-from-selling-policies-to-buying-votes/" target="_blank">Voting for a living: A shift in Australian politics from selling policies to buying votes?</a>
The paper argues “there are now so many beneficiaries of government largesse that they may constitute a political force strong enough to bias policy outcomes”.
It also says “when the number of public sector employees is added, there is a clear majority of voters benefiting more from government than they contribute.”
The authors reckon they’re on to something.
They use <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6537.0" target="_blank">Australian Bureau of Statistics data</a> to conclude that “the emergence of a large segment of the population that may in a sense ‘vote for a living’ could help explain much that has gone awry with public policy”.
Amplifying their argument in a column in the <a href="https://www.afr.com/opinion/columnists/when-buying-votes-replaces-selling-policies-%2020180912-h15aan" target="_blank">Australian Financial Review</a>, they ask whether the government’s decision to abandon raising the pension age was “an example of what may happen in a democracy when an increasing majority of its voters receive net benefits from government […] while only a diminishing minority is left to pick up the net tax burden?”
A new idea it is not
The argument has been around for a while.
In August 2016, <a href="https://www.propertyobserver.com.au/http://www.abc.net.au/radionational/programs/drive/australias-new-divide,-the-taxed-and-%20taxed-not/7786370" target="_blank">then treasurer Scott Morrison</a> told us “more Australians are likely today to be net beneficiaries of the government than contributors – never paying more tax than they receive in government payments”.
He spoke of “a new divide”, between the taxed, and the taxed-nots.
The Heritage Foundation in the United States has argued there is a divide for a decade or more. And the argument goes back further, to the first half of the 19th Century and the American politician and political theorist <a href="https://www.propertyobserver.com.au/https://www.jstor.org/stable/40751557?seq=1#metadata_info_tab_contents">John C, Calhoun</a>.
But it is based on a misunderstanding.
In every system, everywhere, there’s zero net tax
The ABS stats do indeed show that close to half of the population <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6537.0" target="_blank">receives more in cash benefits than it pays in income tax</a>.
If benefits in kind such as education and health care are included, and also indirect taxes such as the goods and services tax, the proportion climbs to 70-80%, at any point in time.
But it isn’t the same 70-80%, and it is unconnected to the size of government and the progressivity of the tax system.
To clear up some myths and misconceptions, the Tax and Transfer Policy Institute at the Crawford School at the ANU published <a href="https://taxpolicy.crawford.anu.edu.au/files/uploads/taxstudies_crawford_anu_edu_au/2016-%2011/zero_net_taxpayers_whiteford_nov_complete.pdf" target="_blank">a detailed policy brief</a> on the idea of “taxed-nots” in 2016.
Strikingly, it showed that a country’s share of “taxed-nots” was unrelated to its level of direct taxes and social security spending.
Australia’s 50% share of “taxed-nots” was similar to the share in the United States, and in New Zealand, and in Sweden – countries each of which have very different tax and spending systems.
The tax take has little to do with it
Korea and Denmark both had low shares of “taxed-nots”, at under 40%, but Denmark’s spending and tax was seven to eight times Korea’s.
The reason the share of “taxed-nots” has almost nothing to do with the level of spending or tax is that (as long as the budget is roughly balanced), by definition, the population on average has to pay zero net tax.
It makes no difference whether tax revenue is 46% of GDP as it is in Denmark or 26% of GDP as it is in Korea.
It is also not relevant how progressive the tax and social spending systems (that take less from low earners and give more to low earners) actually are.
Imagine a country in which everyone paid a flat poll tax, and the only spending was on goods with shared benefits, such as defence and public order.
In such a completely non-redistributive system, 100% of the population would be zero net taxpayers.
Zero net tax is hard to avoid
Far from being unusual or unsustainable, a situation in which a majority of taxpayers pay no net tax is close to unavoidable.
And the taxed and taxed-nots change places.
In Australia (as in all other high income countries) about 90% of households aged 65 or over receive more in public spending than they pay in tax. Most of them paid more tax than they received in public spending when they were younger.
The recent <a href="https://www.pc.gov.au/research/completed/rising-%20inequality" target="_blank">Productivity Commission inequality report</a> found more than one third of Australians spent at least one year in the richest 10% of the population between 2001 and 2016.
More than half of those who were in the richest 20% in 2001 where in the bottom half by 2016.
Today’s taxpayer is tomorrow’s taxed-not
Almost nobody stayed in the same income group for his or her entire working life.
Economic status changes when people finish study and get jobs, get promoted, lose jobs, raise families, marry, become sick, and become disabled or retire.
The concept of the “taxed-nots” or “net benefit recipients” sounds scientific, but isn’t a meaningful guide to anything very much.
This doesn’t mean we can’t work to improve our tax and spending systems.
But it does suggest if we want to improve them we need to be clear about how they work.<img src="https://counter.theconversation.com/content/103910/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;">
Peter Whiteford, Professor, Crawford School of Public Policy, Australian National University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/relax-the-divide-between-the-taxed-and-the-taxed-nots-isnt-new-and-doesnt-buy-elections-103910" target="_blank">original article</a>.
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The divide between the taxed and the ‘taxed-nots’ isn’t new and doesn’t buy elections

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The Bellevue Hotel in Paddington has been bought by Royal Hotels, which is owned and operated by the highly regarded Malouf family.
Vendors for the sale of the Bellevue Hotel, WDS Hotels, had conducted an extensive renovation shortly following its acquisition of the popular hotel in 2014.
“We’ve enjoyed a successful four years of ownership at this great hotel, and following complete renovation and repositioning, formed a decision to focus on our existing portfolio which includes the Fortune of War Hotel, and in doing so to recycle the capital into another opportunity we’re considering,” commented WDS director Steven Speed to The Hotel Conversation.
Paddington, as a hospitality precinct, has proven popular with investors.
Andrew Jolliffe of HTL Property would not confirm the sale price paid.
The Pubtic website suggested around $6.5 million.
Built 1880, the elegant two-storey Bellevue sits on the corner of Hargrave Street and Windsor Lane.
It has gone through a succession of name owners, including John Singleton and Geoff Dixon’s Australian Pub Fund, with operations by Riversdale.
They subsequently sold it to Speed, and partner Peter Walker, in early 2014.
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Bellevue Hotel in Paddington sold off-market

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Staff reporter

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