<p><a href="https://www.urban.com.au/developers/far-east-consortium">Far East Consortium</a>’s 640 Bourke Street stands as a testament to&nbsp;<a href="https://www.urban.com.au/developments/melbourne-vic-3000">Melbourne</a>’s ability to bridge its storied past with a bold vision for the future.&nbsp;</p>

<p>Rising above the heritage-listed Eliza Tinsley building, the development reflects a broader shift toward adaptive reuse in the city, where historical assets are retained and reinterpreted as part of new residential development.</p>

<p>Designed by <a href="https://www.urban.com.au/architects/rothelowman">Rothelowman</a>, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> incorporates the Eliza Tinsley building as its foundation, housing a grand gallery and lobby space that serve as both a functional and symbolic centrepiece. The heritage façade informs the tower’s design, creating a connection between Melbourne’s past and its contemporary skyline.</p>

<p>"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365684]</p>

<p>Above this historic base, the 68-storey tower will deliver just over 600 residences, a notable reduction from earlier schemes, reflecting a deliberate move toward larger-format apartments and a stronger owner-occupier focus.</p>

<p>Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.</p>

<p>"The discussion was all around making 640 Bourke Street the best residence to live in, to be much more focused on the people in the building rather than people looking at the building," Marsland explained.&nbsp;</p>

<p>This shift is evident in the development’s interiors, which emphasise practical luxury with spacious layouts, high ceilings, and floor-to-ceiling windows framing sweeping views of Melbourne and Port Phillip Bay.&nbsp;</p>

<p>“What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Lauren Sheldon, Far East Consortium’s Director of Sales and Marketing, said.&nbsp;</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365687]</p>

<p>Rothelowman Associate Jun Chang added, "We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."&nbsp;</p>

<p>Amenities spanning more than 3,000 sqm across multiple levels further reinforce this focus on resident experience. These include a pool, gym, co-working areas, and a range of hospitality-inspired spaces such as a whisky lounge, library, and private dining rooms, many drawing reference from traditional bathhouses and Melbourne’s laneway culture.</p>

<p>"We wanted to make both the pool and the gym area to be absolutely destinational, and when you traverse across to these spaces, there is a gentle familiarity to the beautiful notions of the hammams and the Roman baths, a gentle nod to history," Chang noted.</p>

<p>At street level, the project contributes to the ongoing transformation of the western CBD, with upgrades to Langs Lane and the introduction of retail, hospitality, and gallery spaces designed to activate the precinct and strengthen its connection to the surrounding city fabric.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365689]</p>

<p>The location places residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market, and the Docklands waterfront, positioning the development within a rapidly evolving inner-city neighbourhood.</p>

<p>"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;</p>

<p>640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.</p>

<p>"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."</p>

<p>One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.</p>

<p><em>Renders shown are Artist's Impressions correct as of May 2026.</em></p>

<p>[smartcode_project_cta:default project_id=509]</p>


Joel Robinson

Heritage-led design anchors Far East Consortium’s 640 Bourke St, Melbourne

<p><a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.</p>

<p>The sale equates to around $37,500 per sqm.</p>

<p>The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.</p>

<p>Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.</p>

<p>“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.</p>

<p>“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323057]</p>

<p>The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.</p>

<p>Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.</p>

<p>When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.</p>

<p>“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.</p>

<p>“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323055]</p>

<p>Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.</p>

<p>Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.</p>

<p>“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”</p>

<p>Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323052]</p>

<p>The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.</p>

<p>Mould said the design intent was to balance that outlook with a sense of retreat.</p>

<p>“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”</p>

<p>The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.</p>

<p>[smartcode_project_cta:default project_id=146358]</p>


MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

<p>Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.</p>

<p>Developer BIG Projects brought in the renowned Sydney-based design studio YSG Studio to craft the interiors for The Frederick, BIG Projects' new Mermaid Beach project and YSG Studio's first move into the multi-residential development space.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for BIG Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.</p>

<p>“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.</p>

<p>"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”</p>

<p data-end="236" data-start="64">A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.</p>

<p data-end="951" data-start="762">SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Sydney’s YSG Studio makes Gold Coast multi-residential debut with BIG Projects at The Frederick

<p>Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;</p>

<p>Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;</p>

<p>The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;</p>

<p>The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;</p>

<p>Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" /></p>

<p>Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;</p>

<p>Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;</p>

<p>The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.</p>

<p>“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."</p>

<p>Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

<p>Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.</p>

<p>The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.</p>

<p>Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366285]</p>

<p>The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.</p>

<p>Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.</p>

<p>All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366277]</p>

<p>Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.</p>

<p>The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.</p>

<p>[smartcode_project_cta:default project_id=150128]</p>


Construction to commence at luxury Glen Iris townhome project, Orchard Mews

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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<div class="column"><strong>Expert Observation by Dr Shane Oliver, head of investment strategy and chief economist of AMP Capital</strong></div>
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<div class="column">As we’ve seen recently growth assets like shares have periods of bad short-term performance versus bonds &amp; cash. But they provide superior long-term returns which is essential to grow retirement savings. It makes sense for superannuation to have a high exposure to them. The best approach is to simply recognise that super and investing in shares is a long-term investment.</div>
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<p><span>This is an update of a note I wrote last November, but after the recent plunge in shares and the associated ten per cent or so loss in balanced growth superannuation funds through the March quarter, it</span><span>’</span><span>s particularly relevant now. When share markets plunge as they did into March the standard questions are: What caused the fall? W</span><span>hat’s the outlook? </span><span>And what does it mean for superannuation? The correct answer to the latter should be</span><span>“nothing really</span><span>, as super is a long-term investment and share </span><span>market volatility is normal.” </span><span>This may sound like marketing spin. But, except for those who are into trading or are close to or in retirement - shares and super really are long-term investments.</span></p>
<h2><span>Super funds, growth assets &amp; compound interest</span></h2>
<p><span>Superannuation is aimed (within reason) at providing maximum (risk-adjusted) funds for use in retirement. So typical Australian super funds have a bias towards shares and other growth assets that grow in value with the economy, particularly for younger members, and some exposure to defensive assets like bonds and cash to avoid excessive short-term volatility. These approaches aim to make the most of the power of compound interest which sees returns build on returns over time. The next chart shows the value of a $100 investment in Australian cash, bonds, shares and residential property from 1926 assuming any interest, dividends and rents is reinvested along the way.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/29/14_1.jpg" alt="" width="460" height="276"></span></p>
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<p><span>As return series for commercial property and infrastructure only go back a few decades I have used residential property as a proxy. Over the period shown since 1926 cash has returned 5.4 per cent per annum, bonds 6.9 per cent pa, property 10.7 per cent pa and shares 10.9 per cent pa. Because shares and property provide higher returns over long periods the value of an investment in them compounds to a much higher amount over long periods. So, it makes sense to have a decent exposure to them when saving for retirement. The higher return from shares and growth assets reflects compensation for the greater risk in investing in them </span><span>– </span><span>in terms of capital loss, volatility and illiquidity.</span></p>
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<span>But </span><span>investors don’t have 90 years</span><span>?</span>
</h2>
<p><span>But while the above chart covered more than 90 years of returns, our natural tendency is to think very short term. Particularly so in times of uncertainty like now. And this is where the problem starts. On a day to day basis shares are down almost as much as they are up. See the next chart. So, day to day, it</span><span>’</span><span>s pretty much a coin toss as to whether you will get good news or bad on shares. But if you just look monthly and allow for dividends, the historical experience suggests you will only get bad news around a third of the time. If you go out to once a decade, positive returns have been seen 100 per cent of the time for Australian shares and 82 per cent for US shares. So while it</span><span>’</span><span>s hard given the bombardment of financial news these days it makes sense to look at your returns less because then you are more likely to get positive returns and less likely to make rash decisions based on short term bad news.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/29/14_2.jpg" alt="" width="459" height="280"></span></p>
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<p><span>This can also be demonstrated in the following charts. On a rolling 12 month ended basis the returns from shares bounce around all over the place compared to the relative stability of cash (and bonds). See the next chart.</span></p>
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<p><span>However, over rolling ten-year periods, shares have invariably outperformed, although there have been some periods where returns from bonds and cash have done better, albeit briefly.</span></p>
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<p><span>Pushing the horizon out to rolling 20-year returns has almost always seen shares do even better, although a surge in cash and bond returns from the 1970s/1980s has seen the gap narrow. Over rolling 40-year periods </span><span>– </span><span>the working years of a typical person </span><span>– </span><span>shares have always done better.</span></p>
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<p><span>This is all consistent with the basic proposition that higher short- term volatility from shares - often reflecting exposure to periods of falling profits and a risk that companies go bust - is rewarded over the long term with higher returns.</span></p>
<h2><span>But why not try and time short-term market moves?</span></h2>
<p><span>The temptation to do this is immense. With the benefit of hindsight many swings in markets like the tech boom and bust, the GFC and maybe in the years ahead the current episode look inevitable and hence forecastable and so it</span><span>’</span><span>s natural to </span><span>think “why not give it a go?” </span><span>by switching between say cash and shares within your super to anticipate market moves. Fair enough if you have a process and put the effort in. But without a tried and tested market timing process, trying to time the market is difficult. A good way to demonstrate this is with a comparison of returns if an investor is fully invested in shares versus missing out on the best (or worst) days. The next chart shows that if you were fully invested in Australian shares from January 1995, you would have returned 8.5 per cent pa (with dividends but not allowing for franking credits, tax and fees).</span></p>
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<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/29/14_6.jpg" alt="" width="469" height="295"></span></p>
<p><span>If by trying to time the market you avoided the 10 worst days (yellow bars), you would have boosted your return to 11.7 per cent pa. And if you avoided the 40 worst days, it would have been boosted to 17.1 per cent pa! But this is not easy as many investors only get out after the bad returns have occurred, just in time to miss some of the best days. For example, if by trying to time the market you miss the 10 best days (blue bars), the return falls to 6.3 per cent pa. If you miss the 40 best days, it drops to just 1.9 per cent pa.</span></p>
<p>The following chart shows the difficulties of short-term timing in another way. It shows the cumulative return of two portfolios.</p>
<p style="padding-left: 30px;"><span>• </span><span>A fixed balanced mix of 70 per cent Australian equities, </span>25 per cent bonds and five per cent cash;</p>
<p style="padding-left: 30px;"><span>• </span><span>A </span><span>“switching </span><span>portfolio</span><span>” </span><span>which starts off with the above but </span>moves 100 per cent into cash after any negative calendar year in the balanced portfolio and doesn't move back until after the balanced portfolio has a calendar year of positive returns. We have assumed a two-month lag.</p>
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<p><span>Over the long run the switching portfolio produces an average return of 8.6 per cent pa versus 9.9 per cent pa for the balanced mix. From a $100 investment in 1928 the switching portfolio would have grown to $185,869 compared to $595,510 for the constant mix.</span></p>
<h2><span>Key messages</span></h2>
<p><span>First, while shares and other growth assets go through periods of short-term underperformance relative to bonds and cash, they provide superior returns over the long term. As such, it makes sense that superannuation has a high exposure to them.</span></p>
<p><span>Second, switching to cash after a bad patch is not the best strategy for maximising retirement savings and wealth over time as it locks in the loss with no hope of recovery.</span></p>
<p><span>Third, the less you look at your investments the less you will be disappointed. This reduces the chance of selling at the wrong time or adopting an overly cautious stance.</span></p>
<p><span>The best approach is to simply recognise that super and investing in shares is a long-term investment. The exceptions to this are if you are really into putting in the effort to getting short- term trading right and/or you are close to, or in, retirement.</span></p>
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Why super and growth assets like shares have to be seen as long-term investments: Shane Oliver

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<p><strong>Expert Observation by Dr Shane Oliver, head of investment strategy and chief economist at AMP Capital</strong></p>
<p>The Australian March quarter Consumer Price Index showed headline inflation rising by 0.3 per cent over the quarter with annual inflation up by 2.2 per cent which was higher than market expectations of a 0.2 per cent quarterly increase or 1.9 per cent over the year.<br> <br>The RBA’s preferred measure of “core” inflation, as measured by the “trimmed mean” index rose by 0.5 per cent or 1.8 per cent, also above market expectations of a 0.3 per cent increase or 1.6 per cent over the year.<br> <br>Usually the inflation data is a key component of the Reserve Bank’s policy deliberations but its importance has been reduced (for now) as the impacts of the coronavirus on the economy takes hold.<br> </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/4/29/15_1.jpg" alt="" width="443" height="280"> </p>
<p>In a pre-coronavirus world, today’s inflation data would have given the Reserve Bank confidence that its low interest rate settings were making inroads into lifting inflation, with underlying inflation showing its strongest quarterly rise since early 2018.</p>
<p>However, this has all changed because from the impacts of COVID-19 and associated shutdowns to economic activity. Inflation is expected to go backwards in the near-term (i.e. deflation) from the impacts of the virus and low inflation could persist for a while if the economic recovery is slower than expected.</p>
<p>The key points from the March quarter inflation data are: </p>
<ul>
<li>The largest upside surprise was from higher food prices, from drought and bushfire impacts (bushfires increased transport costs for some fresh produce). The largest price rises were in fruit and vegetables (+6.0 per cent) and meat and seafood (+2.05). Covid-19 panic buying was evident towards the end of March for products like rice and pasta which lifted the prices for these items.<br><br>
</li>
<li>Tobacco prices rose by 2 per cent from the tobacco tax excise increase. <br><br>
</li>
<li>There were less signs of discounting in the March quarter in clothing &amp; footwear but this is likely to be reversed in the June quarter as stores try to increase sales in the current environment.<br><br>
</li>
<li>The early signs of Covid-19 impacts were evident in higher prices for non-durable household products (up by 3.4 per cent) with rises for things like toilet paper, soap, hand sanitiser. Most of these increases are unlikely to be sustained as the surge in demand for such items has simply brought spending on them forward.<br><br>
</li>
<li>Health costs rose (+1.7 per cent) due to the way the Pharmaceutical Benefits Scheme works, which usually see seasonal rises in prices for pharmaceutical products and in medical and hospital services in the March quarter.<br><br>
</li>
<li>A large fall in fuel prices (-6 per cent) from a lower oil price reduced transport costs. Expect even lower fuel prices in the June quarter given the collapse in the oil price over recent weeks.<br><br>
</li>
<li>Recreation prices fell by 1.7 per cent (mainly due to holiday travel and accommodation) which is a usual seasonal effect after the peak holiday period in the prior quarter. There were no signs of Covid-19 impacting travel prices because the social distancing restrictions only came into effect in late March and also because the ABS would have measured the cost of travel done in March at the time it was booked which wouldn’t give enough time for price discounts to be evident.<br><br>
</li>
<li>Education prices rose by 2.6 per cent from the usual rises in school feels in the March quarter.<br><br>
</li>
<li>Insurance and financial services prices were up by 0.7 per cent over the quarter.</li>
</ul>
<p> </p>
<p><strong>Implications</strong></p>
<p>Looking ahead, June inflation is expected to be negative in Australia, possibly as weak as -2 per cent quarter on quarter or -0.5 per cent year on year which would be the biggest fall in annual consumer prices since a 1.3 per cent decline over the year to the June quarter in 1962.</p>
<p>Petrol prices (in Australia) are already down by around 35 per cent compared to the March quarter, childcare prices will fall sharply as a result of the Government subsidy up until the end of June, rents are declining, many government charges are seeing price freezes or rebates, some non-government education providers are providing discounts, communication costs will decline due to providers offering larger internet plans with no extra costs (recorded as a price fall by the ABS), finance and insurance costs are being cut and retailers are discounting in areas of weak demand.</p>
<p>While there might be some offset from higher food prices given supply constraints, below-capacity economic activity and much higher unemployment will likely keep inflation weak and well below target for several years.Inflationary pressures could rise once economic activity recovers, spare capacity is used up and unemployment falls below full employment levels helped by significant monetary and fiscal stimulus, but this is unlikely to be the case until sometime after 2022. As a result the RBA’s cash rate is likely to be stuck at 0.25 per cent for the next three years at least.</p>
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March quarter inflation higher than expected but irrelevant given the Covid-19 disruption: Shane Oliver

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<p>EXPERT OBSERVATION<strong> </strong></p>
<p class="CSbulletlv1"><span style="text-decoration: underline;">Inflation:</span> The Consumer Price Index – the main measure of inflation in Australia – rose by 0.3 per cent in the March quarter (consensus: 0.2 per cent). In seasonally adjusted terms the CPI rose by 0.4 per cent. The annual rate of headline inflation lifted from 1.8 per cent to 2.2 per cent – the strongest pace in 5½ years. </p>
<p class="CSbulletlv1"><span style="text-decoration: underline;">Underlying measures:</span> The Reserve Bank monitors three measures to derive the underlying inflation rate. The trimmed mean rose by 0.5 per cent in the March quarter (1.8 per cent annual); the weighted median rose by 0.5 per cent (1.7 per cent annual) and the CPI less volatile items rose by 0.5 per cent (2.1 per cent annual). Overall, underlying inflation rose by around 0.5 per cent in the quarter and by around 1.7 per cent over the year. Market goods and services less volatile items rose by 0.3 per cent in the quarter to be up 2.1 per cent on the year.</p>
<p class="CSbulletlv1"><span style="text-decoration: underline;">Main changes:</span> The most significant price rises in the March quarter were for food and non-alcoholic beverages (+1.9 per cent), alcohol and tobacco (+1.6 per cent), education (+2.6 per cent) and health (+1.7 per cent). The most significant offsetting price falls this quarter are automotive fuel (-6.0 per cent), domestic holiday travel and accommodation (-3.1 per cent) and international holiday travel and accommodation (-3.0 per cent).</p>
<h2>What does it all mean?</h2>
<p class="bullets">Aussies venturing out to buy essentials at supermarkets during the peak of the coronavirus (COVID-19) crisis would’ve noticed that food had become more expensive. In fact, prices of food and non-alcoholic beverages surged by an annual growth rate of 3.2 per cent in the March quarter – the strongest rate in 5½ years – propelling overall headline consumer prices higher. Why? Supply shortages due to the drought and bushfires – fruit and vegetable prices lifted sharply. </p>
<p class="bullets">The Bureau of Statistics said, <em>“There were some price effects of COVID-19 apparent in the March quarter due to higher purchasing of certain products towards the end of the quarter, as restrictions came into effect. Most notably, rises were seen in, other non-durable household products (+3.4 per cent), which includes toilet paper; personal care products (+2.2 per cent), which includes soap and hand sanitiser; and other cereal products (+4.4 per cent), which includes rice and pasta.”</em></p>
<p class="bullets">The lift in grocery prices broadly aligns with Coles’ sales report today. The supermarket chain not only reported a record 12.9 per cent lift in sales to $9.2 billion during the March quarter, but it also announced that its grocery and food prices rose by 2.6 per cent during the quarter, or by 1.8 per cent excluding tobacco and fresh foods. Why? COVID-19 panic buying saw a surge in shopper demand so the company scaled-back promotional activity with consumers preferring to purchase smaller grocery pack sizes in the frenzy.</p>
<p class="bullets">But before anyone gets too excited about the headline annual inflation rate hitting the lower end of the Reserve Bank’s 2-3 per cent target band, the demand shock from the virus crisis is about to plunge Australia into the deflationary world, a world experienced by Japan and Europe in recent years. In fact, Reserve Bank Governor Philip Lowe warned last week that, <em>“it is quite likely that year-ended headline inflation will turn negative in June. If so, this would be the first time since the early 1960s that the price level has fallen over a full year.”</em></p>
<p class="bullets"> A sharp decline in crude oil and petrol prices, supportive government measures to cap and reduce prices - such as free childcare – tepid wage growth and weaker home rental prices are all likely to be disinflationary. Given the size of the housing cost basket within the consumer price index - around 23 per cent – falling home prices, higher vacancy rates and weaker rents could persist for the rest of 2020, weighing on consumer prices. </p>
<p class="bullets">Slow wage growth and falling prices of consumer goods – such as electronics, clothing and footwear – have been a feature of low-inflation for several years now. And businesses have been reluctant to pass on the rising cost of imported goods (due to the weaker Aussie dollar) amid consumer spending caution and intense competition. The huge impact of the economic shutdown will see deflation persist for a few quarters. In fact, Commonwealth Bank Group economists are forecasting the annual headline rate to fall to just 0.5 per cent in 2020 after turning negative in the June quarter. But the annual underlying inflation measure (trimmed mean) is estimated to hold up at 1.3 per cent in 2020.</p>
<p class="bullets"><strong>RYAN FELSMAN </strong><em>senior economist at CommSec</em></p>
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Highest headline inflation in 5½ years: Ryan Felsman

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<div>There's been a fair amount of talk about negatively geared landlords, and whether they might need to sell property during the rental market disruption.<br><br>You should never judge a 20-30 year investment on what's happening right now, but it's nevertheless worth taking a look at the current state of play.<br><br>With the Airbnb sector effectively shuttered at the present time some areas have seen a 5 to 10 per cent jump in rental listings as landlords seek tenants, especially in areas that are generally popular with students, holidaymakers, or short-stay lets.<br><br>With the borders also effectively closed to New Zealanders, tourists from China and India, and international students, there's likely to be a scramble for tenants over the coming months.<br><br>On the flip side, of course, Aussies aren't heading overseas either, so the net effect is less pronounced.<br><br><div class="separator"><img src="https://1.bp.blogspot.com/-NHMwiB8le_s/Xqi_KI_OKqI/AAAAAAAA1co/f9bzKMhEbmYEpvVXqz0_K20qZL-txRQgACNcBGAsYHQ/s640/STDs.jpg" width="640" height="374" data-original-height="801" data-original-width="1370"></div>
<br>The New South Wales State Government looks set to do its part with the apartment overhang by buying up unsold new apartments from developers. </div>
<div> </div>
<div>The compensating good news for landlords is that some of the available mortgage rates have plunged over recent months.</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-pjevvfP3Yqo/Xqfy-Yv2d1I/AAAAAAAA1bk/7w7WuVZNbwIz8t-1h7xSFw_7uqsyT_JOACNcBGAsYHQ/s640/A1.jpg" width="640" height="576" data-original-height="460" data-original-width="510"></div>
<p>The latest figures aren't available yet, but when they are they'll probably show that interest cost serviceability is back to where it was about 35 years ago.</p>
<p><img src="https://1.bp.blogspot.com/-U63M-j09Ntk/Xqi7novQO8I/AAAAAAAA1cc/OkXV1ekccmcdanXhcxsw06e9sh5RH5xYgCNcBGAsYHQ/s640/RBA.jpg" width="640" height="366" data-original-height="804" data-original-width="1405"></p>
<p>Some of the 'rack rate' variable mortgage rates are still unreasonably high for investors, but for those taking a  moment to shop around rates may now be very low indeed. </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-utLoCT8JsAI/Xqfy-UAUzRI/AAAAAAAA1bg/QL_0FM-tVpoEsEb-2ahfFuCDG8rnX3L7ACNcBGAsYHQ/s640/A2.jpg" width="640" height="569" data-original-height="452" data-original-width="505"></div>
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<div>New owner-occupiers can secure mortgages from close to 2 per cent in some cases, while rates tend to be higher for investors. </div>
<div> </div>
<div>A lot of the statistics quoted on the number of negatively geared landlords are years out of date (the figure was 1.3 million in 2016-17, but interest rates have nosedived since then, so the figure would be lower today). </div>
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<div>Even assuming flat rents, a stylised model suggests that net rental losses will now be the lowest in years.</div>
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<div>Most investors own one rental property, and the <em>average</em> net rental losses will probably be about $1,000 to $1,500. </div>
<div> </div>
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<p>The detailed Australian Taxation Office statistics <em>do</em> show that many of those investors aged between 30 and 60 choose to hold an investment property with a reportable net rental loss of between $5,000 and $10,000 per annum, partly to reduce their income tax payable. </p>
<div>Generally this cohort tends to be the white collar set, earning solid incomes in relatively speaking more secure positions.<br><br><strong><span style="text-decoration: underline;">Depreciation report (MCG)</span></strong>
</div>
<div> </div>
<div>Moreover, the net rental loss reported to the ATO is not the same thing as the investor's cashflow.</div>
<div> </div>
<div>In fact it's possible to be negatively geared from a taxation perspective but still to have a positive cashflow, due to on-paper depreciation benefits and capital allowances. </div>
<div> </div>
<div>MCG's <em><strong>1000 Assets 2020</strong></em> report showed that there was a big increase in investors buying new property over a period of four years through the construction boom.<br><br>These investors tend to receive very significant depreciation benefits, but I expect there will many investors in this cohort facing negative equity as brand new property tends to...well, depreciate.</div>
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<div class="separator">MCG's study also found that investors have become more aware of depreciation benefits, and as a result they're claiming deductions sooner than they used to. </div>
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<div><em>Source: MCG Quantity Surveyors</em></div>
<div><span style="text-decoration: underline;"><em> </em></span></div>
<div>Some property investors will choose to sell, of course.<br><br>But the number of forced sellers will be lower than otherwise would've been the case due to record low mortgage rates, while borrowers have also been extended the option to switch to interest-only loans or take a 6-month repayment holiday. </div>
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<div>A couple of years ago many reports suggested that the interest-only reset would lead to a spike in mortgage arrears, but owners adapted and arrears barely moved. <br><div> </div>
<div>
<strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em>
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Will investors hold or sell in this troubled time? Pete Wargent

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<p class="legacy">GUEST OBSERVER</p>
<p>Amidst a global pandemic, some people are starting to dream big about infrastructure projects to help get Australia moving again. The decades-old dream of an Australian fast train is <a href="https://amp.smh.com.au/politics/federal/labor-backs-economic-game-changer-high-speed-rail-as-part-of-pandemic-recovery-20200418-p54l24">back in the headlines</a>. But, as alluring as it sounds, the federal opposition’s idea for a bullet train from Melbourne to Brisbane is not a good use of a generation’s worth of infrastructure spending.</p>
<p>After the coronavirus crisis, there may be good reasons to fast-track infrastructure to create jobs and stimulate the economy. But it remains as important as ever that funding go only to worthy projects. A bullet train does not fit the bill.</p>
<p><strong>No silver bullet</strong></p>
<p>Federal Labor <a href="https://www.smh.com.au/politics/federal/labor-backs-economic-game-changer-high-speed-rail-as-part-of-pandemic-recovery-20200418-p54l24">claims</a> the train would be an “economic game-changer” for the regions in its path. But a <a href="https://www.infrastructure.gov.au/rail/publications/high-speed-rail-study-reports/files/HSR_Phase_2-Main_Report_Low_Res.pdf">study</a> into the train, commissioned by Labor itself in government in 2010, found no evidence for this.</p>
<p>Any regional development was too uncertain, the authors concluded, to be considered in their cost-benefit analysis. In fact, they found the project could damage towns along the route:</p>
<p><em>The history of the impact of transport improvement in Australian towns is that they concentrate activity in the larger centres and create commuter towns lacking in higher level services. Without concerted efforts to the contrary, this is also a likely outcome of the introduction of HSR [high-speed rail].</em></p>
<p>Of course, as advocates will be quick to point out, the study did conclude total benefits would outweigh costs by a considerable margin: $2.30 in benefit for every $1 of cost. But this rosy calculation was based on a series of assumptions that are either outdated or inappropriate. As our upcoming report on fast rail will explain in more detail, it’s unlikely the train’s benefits would exceed its costs if a rigorous independent assessment were carried out today.</p>
<p>The benefits are also narrowly concentrated. The biggest winners would be business travellers between Melbourne, Sydney and Brisbane. Wider benefits to society accounted for only 3% of the total, and the effect on economic growth was expected to be minimal.</p>
<p>That’s because the train would take a very long time to build. According to the study, the project would only be “shovel ready” 15 years after funding was committed. This makes it completely ineffective as a timely stimulus during a downturn.</p>
<p>Advocates also argue the train would reduce emissions by taking high-emitting planes out of the sky. But a net reduction won’t be achieved for many years – maybe decades – because constructing the line would create so many emissions.</p>
<p>If built, this train would be the most expensive infrastructure project in Australian history. The study estimated the price tag at A$114 billion – A$130 billion in today’s dollars. As our chart shows, this is enough to pay for an entire generation’s worth of infrastructure.</p>
<p><a href="https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/330286/original/file-20200424-126800-jhqvr2.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a></p>
<p><em> <span class="caption">Projects are not presented as an alternative to the train but provide a point of reference for the scale of spending required for the high-speed rail project. Projects in yellow have active government funding commitments. Figures indicate total project funding costs, including private contributions. Figure for the fast train is in 2019 dollars.</span> <span class="attribution"><span class="source">Source: Based on most recent figures from Department of Infrastructure, Transport, Regional Development and Communications, Infrastructure Australia, NSW, Victorian and Queensland governments, Brisbane City Council, AECOM, ABS</span>, <span class="license">Author provided</span></span></em></p>
<p><img src="https://images.theconversation.com/files/330891/original/file-20200427-28119-1gi471o.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt="" width="335" height="349"></p>
<p><strong>So what should be done?</strong></p>
<p>It is true current low interest rates would make borrowing to pay for such a large project cheaper than ever before, and fast-tracking infrastructure may be justified to aid economic recovery. But that doesn’t give governments a blank cheque to spend on whatever they like. The crisis does not absolve government of its responsibility to scrutinise projects to decide whether they are worthwhile.</p>
<p>A good place to start is by identifying the problem you want to solve.</p>
<p>If regional development is the goal, other options are available to governments that are more likely to be effective than a bullet train. <a href="https://www.infrastructurevictoria.com.au/wp-content/uploads/2019/03/IV_30_Year_Strategy_WEB_V2.pdf">Infrastructure Victoria</a> and <a href="https://insw-sis.visualise.today/documents/INSW_2018SIS_BuildingMomentum_Summary.pdf">Infrastructure NSW</a> both identify better digital connectivity as a pressing need for regional and rural areas. The <a href="https://www.smh.com.au/politics/federal/nbn-urged-to-intervene-as-pandemic-tests-broadband-connections-20200316-p54ain">current strain</a> on the national broadband network as many of us try to work from home is a good reminder of the link between connectivity and productivity.</p>
<p>If governments do want to focus on transport, “smaller picture” projects, though not as glamorous, tend to deliver more bang for buck, as <a href="https://grattan.edu.au/report/remarkably-adaptive/">previous Grattan work</a> has argued.</p>
<p>Projects that can be fast-tracked to start construction soon are also more likely to support economic recovery. Infrastructure Australia’s <a href="https://www.infrastructureaustralia.gov.au/sites/default/files/2020-02/current_priority_list_%20february_2020.pdf">priority list</a> suggests a range of transport projects and initiatives that are much further developed, including improving the Sydney-Canberra rail link. And the priority list includes projects that benefit all states and territories, not just the big three on the east coast.</p>
<p>The coronavirus crisis has upended many of our assumptions about “normal operating procedure” for governments. But it doesn’t mean we throw the old rule book out the window. Governments should only spend public money on projects that have clear and tangible benefits to society – not on grand “nation-building” projects that are big on style but low on substance.<img src="https://counter.theconversation.com/content/136834/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;"></p>
<p><span><a href="https://theconversation.com/profiles/marion-terrill-169480">Marion Terrill</a>, Transport and Cities Program Director, <em><a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a></em> and <a href="https://theconversation.com/profiles/tom-crowley-1041697">Tom Crowley</a>, Associate, <em><a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a></em></span></p>
<p>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/look-beyond-a-silver-bullet-train-for-stimulus-136834">original article</a>.</p>
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Look beyond a silver bullet train for stimulus: Grattan Institute

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<p>We’re going to benefit from the shutdown imposed by the virus, in infinite ways. It may not feel like it at the moment, and I don’t disregard the pain many are going through, but Australia will look back at this crisis as a time that changed the nation for the better.</p>
<p>The discussion now is about how and when we return to normal. But the new normal will be different to the old. It has to be.</p>
<p>One of the big lessons is that we cannot continue to have so many important things made in one country – or anywhere offshore. There are things we need to make in Australia. Manufacturing is poised for a revival, with benefits in employment. This will be part of a strong economic recovery.</p>
<p>The corporate twits who thought it made sense to locate customer call centres offshore because it saved a few bucks are now reconsidering their strategies. They need to bring customer service back home and in the process they will have fewer angry and frustrated customers. And create jobs in Australia.</p>
<p>The situation has forced us to innovate and to work harder at helping our customers. Real estate has found ways to function without live auctions and open houses. We’re seeing examples of online auctions achieving sales well over the reserve price. One-on-one inspections of properties have taken us back to old service standards and getting to know buyers one-on-one. Everyone benefits.</p>
<p>Many of us have realised how much we value the simple things we took for granted, like meeting friends for a cuppa or taking the family to the beach. When the restrictions are lifted, Australians will party like they never have since the end of World War Two – not extravagantly but by going to cafes, pubs, theatres, parks and beaches. A recent survey indicates people plan to take holidays in Australia. Many of the lost jobs will come back (not all, unfortunately).</p>
<p>Some people have learned, by accident, how to save. The restrictions have stopped us going out and spending. The improvement to the bank balance has been an eye-opener. Now some of us know how to get on top of the mortgage and young adults have been shown a way to save a deposit for a first home. First-home buyers with secure jobs will be busy in the second half of the year.</p>
<p>The resources sector has remained steady in the shutdown period. Queensland locations with links to the mining industry have experienced an uplift in rental demand amid the virus crisis, with rents actually rising. China, our biggest trading partner, is projected by the IMF to experience moderate economic growth this year and a boom next year. I’m expecting a resources boom in Australia as China and other nations get ambitious about economic recovery. Real estate markets influenced by resources links may surge – but investors should proceed with caution, because these are fickle and volatile markets.</p>
<p>A more engaging trend with impacts on real estate is the one I wrote about last week. We can expect an increase in people moving from the big cities and buying in lifestyle areas within an hour or two of the city. This movement has been enhanced by technology which allows people to work remotely – and will be exacerbated by the shutdown, which has forced people to work from home.</p>
<p>Some will make it a permanent arrangement. Expect uplift in markets like the Central Coast and the Southern Highlands in NSW; Ballarat, Bendigo, the Latrobe Valley and elsewhere in Victoria; and the Sunshine Coast in Queensland.</p>
<p>As an aside, the virus has done all of us a favour by delivering a major come-uppance to the ugly bastards who run global oil businesses and regularly hold the world to ransom with their cynical manipulation of supply and prices. We’ve all saved money by needing to fill up our cars less often and paying less when we do. Will it change our habits post-shutdown? Hopefully, but probably not.</p>
<p>The virus has generally done the environment a big favour. The before-and-after shots of some of world’s big cities are a revelation, including some in Australia. There’s been a big reduction in emissions. The greatest benefit of the shutdown would be achieved if we learnt something from that. Will we? I fear we will easily slip back into old habits.</p>
<p>But, amid everything, we’ve learnt who the real heroes are and how much we underpay them. We’ve discovered that we can do without over-rated footie players and self-absorbed corporate executives, but not without under-resourced and under-appreciated nurses. Boris Johnson has learnt that more than most.</p>
<p>And we’ve seen a cultural shift in politics and business. There’s been a refreshing absence of adversarial politics. The country apparently can function without people shouting at one another in Parliament. Let’s make that a permanent change.</p>
<p>Business in many ways has sought to be part of the solution, even including the major banks. The only sectors which haven’t entered into the spirit of pulling together have been insurance and some sections of news media.</p>
<p>Who knows – maybe going out of your way to help people is actually good for business.</p>
<p>Terry Ryder is the founder of hotspotting.com.au <br>ryder@hotspotting.com.au<br>twitter.com/hotspotting</p>
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The future benefits of the coronavirus crisis: HotSpotting's Terry Ryder

nconisbee-4KnoX9XmtH

Limited signs of distress in commercial property so far: REA's Nerida Conisbee

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<p>7-Eleven and its franchisees have been granted conditional interim authorisation to discuss potential temporary store closures or reduced trading hours in light of reduced customer demand because of COVID-19 restrictions.</p>
<p>7-Eleven owns and operates stores in competition with its franchisees in some areas and therefore discussions and agreements between them risk breaching the competition laws.</p>
<p>“We recognise that 7-Eleven and its franchisees are facing difficult trading conditions due to the COVID-19 pandemic, and believe this co-operation could help the network and individual stores to remain viable,” ACCC Chair Rod Sims said.</p>
<p>“Importantly, franchisees are not required to temporarily close or reduce their store hours if they do not wish to. Our decision to grant interim authorisation does not force franchisees to agree to the terms offered by 7-Eleven.”</p>
<p>Franchisees that agree to close temporarily will receive an ex-gratia payment from 7-Eleven to cover certain unavoidable operational costs. For franchisees that agree to reduce their hours, the minimum guaranteed income that the franchisee receives from 7-Eleven would be pro-rata adjusted to reflect the temporary reduction in trading hours.</p>
<p>“Franchisees are strongly encouraged to seek independent legal and financial advice when considering whether to adopt these temporary measures,” Mr Sims said.</p>
<p>Interim authorisation is subject to a condition that requires 7-Eleven to notify the ACCC of arrangements reached with franchisees to provide some ACCC oversight.</p>
<p>“We are going to closely monitor the effect of these arrangements and when it is appropriate for this authorisation to be revoked,” Mr Sims said.</p>
<p>Having granted interim authorisation for the arrangements, the ACCC will seek feedback on 7-Eleven’s application for authorisation. </p>
<p>Details on how to make a submission and more information, including the ACCC’s interim authorisation decision, is available at <a href="https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/7-eleven-stores-pty-limited" target="_blank">7-Eleven Stores Pty Limited</a>.</p>
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7-Eleven and franchisees authorised to co-operate on store opening times: ACCC

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<p>Melbourne coffee institution St. ALi will begin serving students and staff of the Faculty of Fine Arts and Music representing owner Salvatore Malatesta.</p>
<p>James Lockwood and Rick Berry of Fitzroys negotiated the long eight-year lease for the 16 sqm hole-in-the-wall with a 56 sqm outdoor deck area on behalf of the University of Melbourne.</p>
<p>“We utilised our extensive hospitality database to undertake a targeted approach to quality coffee operators, which resulted in lease negotiations with St. ALi within 24 hours of the space hitting the market,” Lockwood said.</p>
<p>The space is one of a number of brand-new food and beverage tenancies Fitzroys has been marketing in the heart of the Melbourne arts precinct on behalf of the University in line with the its $200 million campus transformation of the Victorian College of the Arts and the Conservatorium of Music, creating the Faculty of Fine Arts and Music.</p>
<p>Malatesta’s involvement in the coffee industry began in earnest in 1996.</p>
<p>“I opened my original coffee cart at the University of Melbourne when I was a student, so we are very excited for St ALi to be heading back to where it all started, and feel there is great synergy of the sustainability principles that both the University and the St ALi brand represent,” Malatesta said.</p>
<p>Other deals recently concluded by Fitzroys for the University include the main café at Southbank Campus, to be opened late 2020, and event bar and foyer in the new Conservatorium of Music, Axil Coffee at the new Webs building at the Parkville Campus, and Mr Ed Café at the Werribee Veterinary and Agricultural Sciences Campus, by Four 10 Hospo Group who also run Leroy’s Café in Newport.</p>
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