<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;

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.

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.

"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.

[smartcode_project:default project_id=509 project_image_fid=365684]

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.

Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.

"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;

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;

“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;

[smartcode_project:default project_id=509 project_image_fid=365687]

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;

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.

"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.

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.

[smartcode_project:default project_id=509 project_image_fid=365689]

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.

"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;

640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.

"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."

One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.

Renders shown are Artist's Impressions correct as of May 2026.

[smartcode_project_cta:default project_id=509]

Joel Robinson

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

<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.

The sale equates to around $37,500 per sqm.

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.

Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.

“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.

“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”

[smartcode_project:default project_id=146358 project_image_fid=323057]

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.

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.

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.

“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.

“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”

[smartcode_project:default project_id=146358 project_image_fid=323055]

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.

Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.

“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”

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.

[smartcode_project:default project_id=146358 project_image_fid=323052]

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.

Mould said the design intent was to balance that outlook with a sense of retreat.

“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.”

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.

[smartcode_project_cta:default project_id=146358]

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

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.

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.

[smartcode_project:default project_id=110588 project_image_fid=5346]

It was a strategic move for BIG Projects to bring in a Sydney eye to the development.

“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.

“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.”

There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;

[smartcode_project:default project_id=110588 project_image_fid=5347]

Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."

“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.

"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.”

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.

[smartcode_project:default project_id=110588 project_image_fid=5360]

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.

“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.

Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.

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.

"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.

Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.

[smartcode_project_cta:default project_id=110588]

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

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;

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;

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;

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;

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;

<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" />

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;

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;

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;

ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;

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;

<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" />

For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;

“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.

"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.

“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."

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.

"We are really looking forward to the market’s response,” he said.&nbsp;

ALTA Property to deliver $200 million Queens Road apartment tower

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.

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.

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.

[smartcode_project:default project_id=150128 project_image_fid=366285]

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.

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.

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.

[smartcode_project:default project_id=150128 project_image_fid=366277]

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.

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.

[smartcode_project_cta:default project_id=150128]

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

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.

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;

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.

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.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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" />

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

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.

<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" />

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.<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" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

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;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

<html><body>
<div>EXPERT OBSERVER</div>
<div> </div>
<div>Housing conditions were strong up until the end of February, the last of the pre-Coronavirus data series showed. </div>
<div> </div>
<div>Total housing lending was fairly steady at $19.5 billion, representing an increase of +13.1 per cent from a year earlier, mainly driven by homebuyers. </div>
<img src="https://1.bp.blogspot.com/-Tj7kB74Cv28/Xo048SI75LI/AAAAAAAA1Jg/s4CFqoIWW4gX7Mo97meC-8FgegCjW6M7wCNcBGAsYHQ/s640/HF2.jpg" width="640" height="366" data-original-height="824" data-original-width="1440">
First homebuyer commitments rose to the highest level since 2009.
 <img src="https://1.bp.blogspot.com/-7d99RZVWWZM/Xo048PZtQVI/AAAAAAAA1JY/mkyCDs4_KPUAmZJBb1bFWbRLACAWaY3awCNcBGAsYHQ/s640/HF3.jpg" width="640" height="378" style="font-size: 12.16px;" data-original-height="828" data-original-width="1398">
<div>At the state level, homebuyer loans (ex-refi) in Queensland and Western Australia were strong, while New South Wales and Victoria saw a partial retracement, although volumes in these states remained +15 per cent and +20 per cent higher than a year earlier respectively.</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-Kiyhs8_oEo4/Xo048QGK6oI/AAAAAAAA1Jc/2-ANgNnHLDsVHpZypHKAfi0zxh4AET7kQCNcBGAsYHQ/s640/HF1.jpg" width="640" height="380" data-original-height="829" data-original-width="1392"></div>
For home buyers purchasing existing dwellings the average loan size was steady at a near-record high.
<div class="separator"><img src="https://1.bp.blogspot.com/-_n553QTxyPs/Xo049K_1vkI/AAAAAAAA1Jk/ubZ9VV4Y3DUgx9yKI7xSyX2DLjkbaiB5QCNcBGAsYHQ/s640/HF4.jpg" width="640" height="382" data-original-height="818" data-original-width="1369"></div>
There was some variation around the states, partly impacted by refinancing activity.
<div class="separator"><img src="https://1.bp.blogspot.com/-V0wxrfOsSto/Xo049Qhu3uI/AAAAAAAA1Jo/ibRdXCV_EdMM0hP04S3mmFceQHshcVOkgCNcBGAsYHQ/s640/HF5.jpg" width="640" height="374" data-original-height="831" data-original-width="1421"></div>
<div>
The wrap Overall, lending volumes were considerably stronger than a year earlier up until February 2020, but transaction activity is now expected to drop sharply through March and April as movements are restricted. </div>
<div>
 PETE WARGENT 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>.
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Housing loans declined slightly in February: Pete Wargent

<html><body>
EXPERT OBSERVER
introduction
After a roughly 35% plunge from their February high point to their lows around 23rd March, global and Australian shares have had a 15-20% rally. What’s more this rally has occurred despite increasingly bleak economic data ranging from plunges in business conditions surveys or PMIs (see the next chart) to a record 10 million surge over two weeks in claims for unemployment payments in the US. Volatility remains very high but at least we are seeing up and down volatility rather than all down as was the case into mid-March.
<img src="https://www.urban.com.au/images/2020/4/8/111.png" alt="">
Markets usually lead and so may have already factored in the worst. And we have seen massive fiscal and monetary stimulus over the last few weeks to match the coronavirus threat to economies. So maybe we have already seen the low for shares? Or maybe not? There is still a lot of bad news ahead regarding the virus and the economic hit and we still don’t know how long the shutdown will be for and hence it’s hard to gauge the size and duration of the economic hit, when the recovery will come and what it will be like. What’s more past bear markets have often been interrupted by strong rallies, eg, October/November 2008 saw two 19% rallies in US shares followed by the ultimate low in March 2009. This could be the case here even if we have entered into a bottoming process.
So, what should investors look for in terms of when we can expect a bottom or be at least somewhat confident that the bottom has been reached? Not that anyone will ring a bell at the bottom or that investors will be bullish at the bottom.
The following are what we are looking for:
<ul>
<li>confidence the coronavirus can soon be contained;</li>
<li>measures to minimise collateral damage to the economy;</li>
<li>confidence collateral damage is being kept to a minimum &amp; signs that growth momentum is bottoming; &amp;</li>
<li>technical signs of a market bottom.</li>
</ul>
Confidence the coronavirus will soon be contained
This is important as it will give guidance as to the duration of the shutdowns and their severity and hence the first round hit to the economy. There are several key things to watch:
The severity of suppression measures.
After containment policies (quarantining &amp; contact follow up) failed to control the virus (South Korea may be an exception), most countries have moved on to suppression, ie social distancing. This has been made necessary to allow hospital systems to cope without a blow out in deaths as in Italy. The question is are they being applied rigoursly. The evidence suggests that they are. Of 41 major countries nearly 80% now have severe restrictions in place, including Australia.
<img src="https://www.urban.com.au/images/2020/4/8/222.png" alt="">
Is suppression working? The best thing to watch for is a turn down in the number of new cases. Italy is a good one to watch as it went into national lockdown around 9 March and if they get it under control it gives other countries hope. And there are some positive signs here with a downtrend in new cases evident in Italy, Spain, Germany, the EU generally and Australia. In the US it’s too early to tell, but it’s New York epicentre is showing a decline in new cases.
<img src="https://www.urban.com.au/images/2020/4/8/333.png" alt="">
<ul>
<li>Based on China’s experience: 11-21 days after the lockdown new cases peak, and a month or so after that, the shutdown can start to be relaxed, which is why Chinese economic indicators started to improve in March. (While some question the reliability of China’s Covid19 case data, directionally it looks right and lines up with President Xi’s March 10 Wuhan visit &amp; the restart of its economy.)</li>
<li>This would suggest that the lockdown in Italy and maybe even Australia may be able to be relaxed later this month or in May, if the number of new cases continues to trend down.</li>
<li>Of course, if the lockdown is eased too quickly this may risk a second wave of cases (as occurred in relation to the 1918 Spanish flu pandemic). To guard against this, quarantining of new cases and contact follow up will have to be aggressive and international travel bans would likely have to remain in place to prevent imported new cases (as China has found). There are two things that could short circuit this.</li>
<li>
Antibody tests. It’s likely the actual number of coronavirus cases is being significantly underestimated because those with mild or no symptoms are not showing up for testing, but mass testing for antibodies to Covid19 would reveal what proportion of the population have already been infected and recovered. They will likely no longer be transmitters of the virus and should be able to return to work. Some estimates suggest that it’s already 40-60% of the Italian and UK populations. If so, there would already be a degree of “herd immunity” making it easier to safely relax the shutdowns. Such testing may still be several months away though.</li>
<li>
Anti-virals or a vaccine. A vaccine may still be 12 months away but anti-virals are being rapidly tested.</li>
</ul>
The bottom line on this is that there are a lot of balls in the air but the decline in the number of new cases in several countries including Australia indicates that shutdowns are working which in turn holds out the hope that they can be relaxed in a month or so (providing containment measures are rigorous). International travel will likely be the last restriction to be lifted.
Policy measures to support the economy
The past month has seen a massive ramp up in monetary and fiscal measures globally and in Australia to support businesses, jobs and incomes through the shutdown period and to keep financial markets functioning properly. These are discussed here and here. Some (eg in Australia) are better than others (eg in the US) but with policy makers committed to doing whatever it takes they provide confidence that second round damage from the shutdowns will be kept to a minimum, which will enable economies to recover once the virus is under control. We rate this as positive, although more may still need to be done.
Collateral damage being kept to a minimum/growth indicators bottoming
There are a range of indicators to track on this front, including:
<ul>
<li>Credit spreads. Corporate &amp; government bond yield gaps need to narrow. They are off their highs, but above normal.</li>
<li>Money market funding costs. As measured by the gap between 3 month borrowing rates and expected official rates these have narrowed in Australia but remain high in the US.</li>
<li>Default rates up only slightly. This is important in terms of assessing whether public support &amp; debt/rent payment holidays are working. It’s too early to tell in most countries.</li>
<li>Daily activity indicators (eg, for energy production and traffic congestion) stabilising. This has been a good indicator in China, but it’s too early in developed countries.</li>
<li>Business conditions PMIs stabilising/improving. They’ve improved in China but are still falling elsewhere.</li>
</ul>
Technical signs of a market bottom
Market bottoms usually come with a bunch of signs.
<ul>
<li>Extreme oversold conditions. This got a tick in March.</li>
<li>Apocalyptic investor sentiment. It’s very negative but maybe not apocalyptic yet.</li>
<li>Signs of falling downwards momentum. This may only become apparent on a re-test of the March low.</li>
</ul>
Signpost table
The following provides a summary. The key ones are in blue.
<img src="https://www.urban.com.au/images/2020/4/8/444.png" alt="">
<img src="https://www.urban.com.au/images/2020/4/8/555.png" alt="">
Concluding comment
Many of these signposts tick off positively so we may have seen the low. But given the uncertainty around the length of the shutdown, risks of a second wave and very poor economic data to come it’s still too early to say that with confidence. Trying to time market bottoms is always very hard so a good approach for long term investors is to average in over several months.
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Dr SHANE OLIVER is the Head of Investment Strategy and Chief Economist AMP Capital
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Signposts that indicate when shares have bottomed: Shane Oliver

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EXPERT OBSERVER
When governments rolled out international travel restrictions, closed state borders and banned unnecessary travel as well as closing pubs, restaurants and casinos along with a variety of other facilities it was clear that the tourism and hospitality sectors would be some of the hardest-hit sectors.
However, it is still striking that 70% of food and accommodation employers reported a reduction in staff hours.
Food and accommodation employs about 8% of Australians, or about 1.2 million people. This is where a more granular view of employment data can highlight risks to the property market.
The detailed quarterly survey data provides insight into what industry residents work in, at the SA4 level.
The February edition suggests that most food and accommodation workers are highly concentrated in Sydney’s Inner West, followed by the Sunshine Coast and the Coffs Harbour-Grafton region.
<img src="https://www.urban.com.au/images/2020/4/9/CL%20food.png" alt="">
The risk to demand-side factors for property is particularly susceptible in areas of high employment in food and accommodation, as the sector typically has more ‘precarious’ work arrangements. About 62% of those employed in the sector are employed on a part time basis, compared with the broader workforce, where 32% of staff are employed part time.
Interestingly, some of these areas also have more precarious housing arrangements, with higher portions of rental housing than ownership.
In Sydney’s Inner West, 35.4% of households are estimated to be renting households, as opposed to 31% nationally. This means that lesser hours in food and accommodation services may affect property values indirectly, because value estimates may be reconsidered based on rental return.
For Hobart, where 9.3% of the population are employed in food and accommodation, the CoreLogic home value index shows there has already been a drop in dwelling values, of -0.2% in March.
However, it is worth noting that the Hobart market was arguably due for correction even before the onset of COVID-19, having seen annualised capital growth of 7.7% each year for the past 5 years to March 2020.
Therefore, even though high concentrations of food and accommodation employment are indicative of greater risk to the property market, ongoing assessment of price and employment shifts will be necessary to isolate the full impact of COVID-19 on values. 
ELIZA OWEN is the Head of Research Australia at CoreLogic
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Food and accommodation work is more precarious for housing and employment: CoreLogic's Eliza Owen

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A 2,461 sqm freestanding industrial building in Botany has been sold for $5,730,000. 
A private investor purchased the property from Woodsize Pty Ltd.
Located at 36 Chegwyn Street, the freestanding industrial building comprises a 2,461 sqm high clearance warehouse with first floor office and storage space. 
The freestanding building sits on a 1,646 sqm site area and has two street frontages.
The deal was negotiated by Edward Washer and Sam Wallace, Savills Australia who said the sales campaign saw a large amount of interest from owner occupiers and investors. 
According to Mr Washer, “The buyer saw great value long term in the location and the flexible B7 business park zoning and 1.5:1 FSR."
“Previously used as a leather tannery, the new owners will look to bring new life to the building and align it with tenant demand in the area."
 
 
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Freestanding industrial Botany building sold for $5.73 million

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A 5,546sqm development site in Flagstone, Queensland for $1,386,500 plus GST.
A local syndicate has purchased the property from PEET.
Located at Stage 7I, Commercial Circuit, Flagstone is a Peet Masterplan community bringing 12,000 homes and about 30,000 residents to Flagstone over the next 25 years. 
Flagstone will also include a city centre comprising of 126 hectares of retail and office floor space with the proposed passenger rail service running through the middle.
The deal was negotiated by Will Carman and James Stevenson of Savills Australia who said the buyer believed in Flagstone and the future growth of the suburb. 
“The zoning allowed for multiple code assessable uses, they are initially land banking the property and dealing with tenant requirements as they see fit,” said Mr Carman.
The Flagstone catchment has a project population growth rate of 4.1%pa which represents an average increase of 6,633 residents per year
The site is within walking distance to major retailers, including Coles, McDonalds, 7Eleven, IGA, SNAP fitness and Dominos and 35 metres to Commercial Circuit.
 
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Flagstone development site in Queensland sells for $1.4 million

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EXPERT OBSERVER
Australia's trade balance is now falling away. In fact, it was already tailing away by the end of February.
<div class="separator"><a href="https://1.bp.blogspot.com/-DOmhb_SA0jA/Xoxjg6jjTAI/AAAAAAAA1I4/z6XkdAsKbEEsekV4D5rPxPY-9iwwGHnwACNcBGAsYHQ/s1600/IT1.jpg"><img src="https://1.bp.blogspot.com/-DOmhb_SA0jA/Xoxjg6jjTAI/AAAAAAAA1I4/z6XkdAsKbEEsekV4D5rPxPY-9iwwGHnwACNcBGAsYHQ/s640/IT1.jpg" width="640" height="372" data-original-height="818" data-original-width="1402"></a></div>
Coal exports were dropping away in the early months of 2020.
 
<a href="https://1.bp.blogspot.com/-xILeCnbw360/XoxjhNrg4gI/AAAAAAAA1I8/_YE1hMJWV5A8JbIEaqS5y5KyO7YFa1_oQCNcBGAsYHQ/s1600/IT2.jpg" style="font-size: 12.16px;"><img src="https://1.bp.blogspot.com/-xILeCnbw360/XoxjhNrg4gI/AAAAAAAA1I8/_YE1hMJWV5A8JbIEaqS5y5KyO7YFa1_oQCNcBGAsYHQ/s640/IT2.jpg" width="640" height="388" data-original-height="830" data-original-width="1369"></a>
And commodity export values had rolled over. <a href="https://1.bp.blogspot.com/-XinURAg-fLg/XoxjhIC658I/AAAAAAAA1JA/7IOfS1zHzgcbMnLHiaYwpBlodZB4CfuOwCNcBGAsYHQ/s1600/IT3.jpg" style="font-size: 12.16px;"></a>
<a href="https://1.bp.blogspot.com/-XinURAg-fLg/XoxjhIC658I/AAAAAAAA1JA/7IOfS1zHzgcbMnLHiaYwpBlodZB4CfuOwCNcBGAsYHQ/s1600/IT3.jpg" style="font-size: 12.16px;"><img src="https://1.bp.blogspot.com/-XinURAg-fLg/XoxjhIC658I/AAAAAAAA1JA/7IOfS1zHzgcbMnLHiaYwpBlodZB4CfuOwCNcBGAsYHQ/s640/IT3.jpg" width="640" height="370" data-original-height="834" data-original-width="1441"></a>
Worryingly, even in February services credits were hammered, as tourism began to dry up.
<a href="https://1.bp.blogspot.com/-FpYKdHb0Tn4/Xoxjh8WkNAI/AAAAAAAA1JE/BLjF-zHbAN4U6BUBPBbalg5wG7WV-LYiwCNcBGAsYHQ/s1600/IT4.jpg" style="font-size: 12.16px;"><img src="https://1.bp.blogspot.com/-FpYKdHb0Tn4/Xoxjh8WkNAI/AAAAAAAA1JE/BLjF-zHbAN4U6BUBPBbalg5wG7WV-LYiwCNcBGAsYHQ/s640/IT4.jpg" width="640" height="390" data-original-height="832" data-original-width="1364"></a>
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<div class="separator">The Reserve Bank didn't sugar-coat anything in its Minutes today, predicting a sharp contraction in growth and a substantial rise in unemployment.</div>
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<div>The RBA noted that financial markets have been operating somewhat more effectively, partly thanks to central bank measures around the world, with a starburst of co-ordinated fiscal and monetary stimulus coming down the pipe. </div>
<div> </div>
<div>Borrowing costs for some new borrowers are declining, but note that these trends impact borrowers on a case by case basis, and in some respects lending standards and assessments have been tightening and becoming more conservative.</div>
<div> </div>
<div>
PETE WARGENT 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>.
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Australia's trade balance is falling away: Pete Wargent

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EXPERT OBSERVER
<div>New listings fell in March according to SQM Research as more potential vendors decided not to list.</div>
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<div>However, total listings had already begun to increase (+3.7 per cent) as more 30-60 day stock banked up, having failed to sell. </div>
<img src="https://1.bp.blogspot.com/-d2CQt-N3jio/XowhwDv7zpI/AAAAAAAA1IM/83eJ9Qa8bz0i2eCpwC4KlueT4ghuvHaLgCNcBGAsYHQ/s640/SQM1.jpg" width="640" height="388" data-original-height="830" data-original-width="1368">
 
From a year ago total property listings remained -13 per cent lower than year earlier, mainly due to Sydney where listings were still -23 per cent below March 2019 levels, with Hobart also down -19 per cent year-on-year.
<div><img src="https://1.bp.blogspot.com/-LrJvfUcx3w0/XowhwMrVFKI/AAAAAAAA1IQ/2u2tYMooKcsELebZ2QC6lyCKmpIAn6IGwCNcBGAsYHQ/s640/SQm2.jpg" width="640" height="388" data-original-height="827" data-original-width="1359"></div>
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<div>SQM reported that asking prices increased further in March, driven by increases in Sydney, Melbourne, and Perth, suggesting that vendors have not yet adjusted their price expectations, despite the effective shutdown of the economy.</div>
PETE WARGENT 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>.
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New listings and sales are falling but asking prices rose in March: Pete Wargent

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The Commonwealth Government has published a set of good faith leasing principles for commercial tenancies including retail, office and industrial.
It is to operate between owners/operators/other landlords and tenants, in circumstances where the tenant is a small-medium sized business is an eligible business for the purpose of the Commonwealth Government’s JobKeeper programme, i.e. seen a 30 percent fall in its turnover.
The national cabinet agreed that there would be a proportionality to rent reductions based on the tenant’s decline in turnover to ensure that the burden is shared between landlords and tenants.
The Code provides a proportionate and measured burden share between the two parties while still allowing tenants and landlords to agree to tailored, bespoke and appropriate temporary arrangements that take account of their particular circumstances.
National Cabinet again noted that it expects Australian and foreign banks along with other financial institutions operating in Australia, to support landlords and tenants with appropriate flexibility as they work to implement the mandatory code.
The Commonwealth Government is also acting as a model landlord by waiving rents for all its small and medium enterprises and not-for-profit tenants within its owned and leased property across Australia.
The new leasing code is mandatory.
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But all premises are different, as are their commercial arrangements; it is therefore not possible to form a collective industry position. All parties recognise the intended application, legal constraints and spirit of the Competition and Consumer Act 2010.
The parties will take into account the fact that the risk of default on commercial leases is ultimately (and already) borne by the landlord. 
The landlord must not seek to permanently mitigate this risk in negotiating temporary arrangements envisaged under the code.
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All leases must be dealt with on a case-by-case basis, considering factors such as whether the SME tenant has suffered financial hardship due to the COVID-19 pandemic; whether the tenant’s lease has expiredor is soon to expire; and whether the tenant is in administration or receivership.
Leases have different structures, different periods of tenure, and different mechanisms for determining rent. 
Leases may already be inarrears. Leases may already have expired and be in “hold-over.” 
These factors should also be taken into account in formulating any temporary arrangements in line with the code.
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1. Landlords must not terminate leases due to non-payment of rent during the COVID-19 pandemic period (or reasonable subsequent recovery period).
2. Tenants must remain committed to the terms of their lease, subject to any amendments to their rental agreement negotiated under this Code. Material failure to abide by substantive terms of their lease will forfeit any protections provided to the tenant under this Code.
3. Landlords must offer tenants proportionate reductions in rent payable in the form of waivers and deferrals (as outlined under “definitions,” below) of up to 100% of the amount ordinarily payable, on a case-by-case basis, based on the reduction in the tenant’s trade during the COVID-19 pandemic period and a subsequent reasonable recovery period.
4. Rental waivers must constitute no less than 50% of the total reduction in rent payable under principle #3 above over the COVID-19 pandemic period and should constitute a greater proportion of the total reduction in rent payablein cases where failure to do so would compromise the tenant’s capacity to fulfil their ongoing obligations under the lease agreement. Regard must also behad to the Landlord’s financial ability to provide such additional waivers.Tenants may waive the requirement for a 50% minimum waiver by agreement.
5. Payment of rental deferrals by the tenant must be amortised over the balance of the lease term and for a period of no less than 24 months, whichever is the greater, unless otherwise agreed by the parties.
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6. Any reduction in statutory charges (e.g. land tax, council rates) or insurance will be passed on to the tenant in the appropriate proportion applicable under the terms of the lease.
7. Landlords must not draw on a tenant’s security for the non-payment of rent (be this a cash bond, bank guarantee or personal guarantee) during the period of the COVID-19 pandemic and/or a reasonable subsequent recovery period.
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8. The tenant should be provided with an opportunity to extend its lease for an equivalent period of the rent waiver and/or deferral period outlined in item #2 above. This is intended to provide the tenant additional time to trade, on existing lease terms, during the recovery period after the COVID-19 pandemic concludes.
9. Landlords agree to a freeze on rent increases (except for retail leases based on turnover rent) for the duration of the COVID-19 pandemic and a reasonable subsequent recovery period, notwithstanding any arrangements between the landlord and the tenant.
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Where landlords and tenants cannot reach agreement on leasing arrangements (as a direct result of the COVID-19 pandemic), the matter should be referred and subjected (by either party) to applicable state or territory retail/commercial leasing dispute resolution processes for binding mediation, including Small Business Commissioners/Champions/Ombudsmen where applicable.
The national cabinet offered a scenario examples of practical variations reflecting the application of the principle of proportionality may include, but are not limited to:
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 Qualifying tenants would be provided with cash flow relief in proportion to the loss of turnover they have experienced from the COVID-19 crisis ie. a 60% loss in turnover would result in a guaranteed 60% cashflow relief.
o At a minimum, half is provided as rent free/rent waiver for the proportion of which the qualifying tenant’s revenue has fallen.o Up to half could be through a deferral of rent, with this to be recouped over at least 24 months in a manner that is negotiated by the parties
  So if the tenant’s revenue has fallen by 100%, then at least50% of total cash flow relief is rent free/rent waiver and the remainder is a rent deferral. If the qualifying tenant’s revenue has fallen by 30%, then at least 15% of total cash flow relief is rent free/rent waiver and the remainder is rent deferral.
  Care should be taken to ensure that any repayment of the deferred rent does not compromise the ability of the affected SME tenant to recover from the crisis. 
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How the new leasing code works for Australian retail/office/industrial tenants

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EXPERT OBSERVER
The significance of the property price data for March has been grossly underplayed and misinterpreted by the dismal media with which we are afflicted in this country.
Most mainstream media outlets dismissed the positive results achieved in March as largely irrelevant and focused their coverage instead on speculation about the potential outcome a month from now – which was, you guessed it, relentlessly negative although based on nothing more than a narky attitude.
This, rather sadly, perpetuates a pattern that has become evident increasingly as Australia deals with the health and economic consequences of the pandemic.
There is, by and large, a wave of “we’re all in this together” community spirit which has seen various sections of society rise to this very difficult occasion to do what’s best for the nation and its people – with the notable exception of our scurrilous media.
The Federal Opposition has essentially adopted a bipartisan approach (with some exceptions) to put minimal objections in front of the Government’s decisions to deal with a mind-boggling situation. The major banks have made it known that they will help struggling customers with responses such as mortgage payment holidays. Businesses that are thriving in these peculiar circumstances have extended new jobs to some of those who have been stood down from hospitality and other impacted sectors. Some of the nation’s wealthiest, such as mining magnate Andrew Forrest, have used their muscle to help with medical supplies or to sponsor medical research. With some exceptions, there are efforts by commercial landlords and tenants to reach a win-win accommodation.
There are plenty of other examples where normal commercial or personal practices have been suspended in a spirit of helping out in these unique times.
The great glaring exception to this has been mainstream media – our major newspapers and television news bulletins. Having been presented with the most sensational news story of our time, which requires no embellishment or need for beat-up, most forms of media have milked it for all its worth.
The relentless, hardline negativity of the coverage has been breathtaking to behold. Journalists have focused on every negative event or statistic with barely concealed glee and ignored the positives. There’s been a stark absence of balance.
We’ve had graphic depictions of the jobs lost and the Centrelink queues, but the considerable number of new positions being created by thriving businesses has been largely ignored. We’ve heard about the new coronavirus cases and each death is morbid detail but not about the numbers who have recovered nor about evidence of the curve flattening.
I’ve spoken to many people who say they have stopped tuning into news bulletins because they’re fed up with the negativity and the absence of any kind of helpful spirit in our media. I totally sympathize. I’ve stopped watching ABC television news, as one example, because of their tabloid mentality. The only place I can find balanced coverage is SBS television.
Australia is full of frightened people. No one has experienced anything quite like this and people are justifiably scared about the health issues, the economic consequences and the disintegration of normal life. And our media is making if worse – far worse than it needs to be.
One of the factors evident here is an absence of understanding by journalists of what their customers want from them. I don’t think the average journo spends a single moment of any day thinking about the needs of the people who buy their products. It’s all about the story, the headline - the more sensationally negative the better and to hell with the consequences.
And so we come the coverage of the property price data for the month of March, published last week. The raw data was a good news story amid the carnage. Every capital city and all the regional markets bar one recorded growth in house prices during March.
Given that the first share market meltdown occurred on 20 February and the event that’s causing the economic crisis is gargantuan, I would have expected some kind of adverse reaction in the housing market in March, but there wasn’t one. And that’s remarkable, but you wouldn’t know if from the miserable response of mainstream media.
Here’s a sample of the headlines:
• Ominous signs the property market is running out of steam – and fast. • Storms clouds roll over national house prices. • Frightening detail hidden in housing data. • Don’t expect property prices to rise this year. • It’s just a matter of time before coronavirus reduces property gains. • Housing market not immune as cracks show in Sydney and Melbourne. • Housing values slowing rapidly as virus weakens consumer sentiment.
The worst of the negativity has come from Fairfax newspapers, headed by the Australian Financial Review, which tends to regard residential real estate as something to be attacked rather than reported.
One Fairfax journo illustrated the mentality with this introduction to an article: “The news from CoreLogic that residential property values continued to climb in March looks positive at first blush – but a deeper delve shows signs are starting to emerge ….”
This is standard procedure for some journos: ignore the positives and keep digging until you find a negative and focus on that. And if you can’t find a negative among the facts, you can always call the usual suspects who are willing to make doomsday forecasts. Some property writers have them on speed dial.
We all know the analogy about those who see the glass half full and those who perceive it as half empty. There’s a third category for Fairfax journalists – those who see the glass as completely empty.
It’s beyond sad. If you had a friend or family member with this kind of mentality, you would be urging them to seek help from a mental health professional.
I’m not kidding myself that real estate is immune to a virus-induced downturn. It’s still early in the story and some markets will take a hit. But I do expect it to be short-term and I do expect a notable recovery.
And I do think it remarkable that real estate survived the March we have just had with values rising in virtually every market across the nation. It says something about the strength of our markets going into the crisis and resilience of real estate in times of adversity.
Terry Ryder is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
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Media is overlooking the positive and regurgitating negativity: Hotspotting's Terry Ryder

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A prized major infill site at Glen Waverley in Melbourne’s east has been sold for $23 million.
The 583 Ferntree Gully Road property comprises a 16,470 square metre site zoned General Residential with 161 metres street frontage.
Located between the Monash Freeway and Springvale Road and opposite Brandon Park Shopping Centre, the property is currently utilised as an early childhood education centre.
The child education centre is run by the vendor the not-for-profit, bestchance Child Family Care, which will continue to provide childcare services from the retained portion of the site.
CBRE Director Investments, Mark Wizel managed the expressions of interest campaign with Julian White and Chao Zhang in conjunction with Vinci Carbone Property.
According to Mr Wizel, the result was not a surprise despite COVID-19 concerns.
"What we do know is that there is a significantly large group of developers looking at new opportunities – the strong response to the  campaign bore that out – with the knowledge that underlying fundamentals including population growth will ultimately drive demand for new product. 
"The key here was a site with enormous development potential in one of Melbourne’s most dynamic residential growth zones which has seen an extraordinary 16 per cent growth in the median house and unit price over the 12 months to February,’’ Mr Wizel said.
Mr Wizel said while the commercial property market was likely to continue to see asset sales even in the depths of the global health crisis.  
Due to a confidentially clause the developer’s name could not be disclosed.
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