<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

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Private investment opportunities will abound as Sydney’s new aerotropolis development takes off, but those who want a slice of the action would be wise to start investigating options now.
The Western City &amp; Aerotropolis Authority aims to create 200,000 new jobs across the Western Parkland City, with a particular focus on advanced manufacturing and agribusiness, as well as in education, housing, healthcare and pharmaceuticals.
Central to the development is the creation of a modern, digitised supply chain, which in itself won’t create many jobs, but will provide a vital support network to leverage the opportunities of an airport that operates 24/7.
Early mover investors
The authority is aiming to have the agribusiness and manufacturing precincts up and running by the time the airport opens in December 2026.
Several businesses in those sectors have committed to build facilities in the area, including advanced 3D-printing company GE Additive, Australian vitamin and pharmaceutical maker Vitex, along with the Australian Space Agency and 18 SMEs in aerospace.
Additionally, aerospace company Northrop Grumman has committed to an AUD 50 million investment in an advanced defence electronics maintenance and sustainment centre. Japanese multinationals Mitsubishi Heavy Industries and the Sumitomo Mitsui Financial Group have also agreed to invest in the aerotropolis. The state’s largest wholesale produce market, Sydney Markets, has signed an agreement to expand into the aerotropolis.
And to help supply the skilled workforce needed for many of these businesses and others in the region, the University of Newcastle, University of NSW, University of Wollongong, and Western Sydney University plan to join forces to create a world-class, higher education institution at the aerotropolis.
State and federal governments have committed AUD 20 billion to build Western Sydney’s new airport and all the associated transport infrastructure, yet the NSW government estimates that to build out all of the development required in Western Sydney – the airport and aerotropolis, the transport infrastructure, housing, schools, hospitals and so on – will cost more than AUD 100 billion.
Where opportunities await
The remaining AUD 80 billion will come from the private sector and this presents a huge opportunity for investors, in property, in business, in infrastructure – and even as potential owners of the airport should the government eventually privatise it, says Roddy Adams, Head of Energy, Infrastructure &amp; Resources NSW at Westpac.
Accommodating population growth
A huge amount of investment will be required to house the population of the rapidly growing Western Parkland City, as the government has tagged the region.
In a Westpac-commissioned report titled Western Sydney Infrastructure Projects and Investment Opportunities, The Root Partnership has identified what will need to be built in the two decades to 2036 to accommodate the rapid growth:
Roddy Adams, Head of Energy, Infrastructure &amp; Resources NSW at Westpac, notes that the airport has been structured as a stand-alone corporation, Western Sydney Airport. While nothing has been confirmed, Adams believes the government may put the airport up for sale once it is operating, providing another opportunity for investors in the region.
“It would make sense for them to recycle their money once the airport's up and running because that's how it was with every other airport in Australia,” he says.
Additionally, while the federal government has committed AUD 5.3 billion to the airport, Adams says most observers believe that to bring it up to the standards of an international class airport total investment will be more like AUD 10 billion, suggesting the government will have to raise additional cash, or sell off the airport in stages to fund its continued development.
He expects the airport to attract interest from the superannuation sector, which is drawn to the stable, long-term cashflow that comes with many major infrastructure investments.
It won’t just be multibillion-dollar, headline-grabbing projects which create opportunities for investors. Adams says the knock-on effects for the whole region will be quite profound.
There are also investment opportunities in the aerotropolis itself, which will host industry and manufacturing, and logistics centres designed to take advantage of the new airport – and it will be home to new communities, parklands, cultural and sporting centres, shopping centres, schools, childcare centres, universities, aged care facilities, healthcare and hospitals.
Investors have the capacity to put money into the aerotropolis both by establishing businesses in the precinct and by funding its development, plus they will have the chance to either buy land or acquire long-term leases as well.
Obvious candidates to set up in the aerotropolis include logistics and supply chain businesses and those involved in agribusiness. “You don't have to think too hard down that line to come up with a whole range of people, both from an industrial or other institutional equity perspective, who’ll be keen to look into this,” says Adams.
Westpac will be involved in facilitating the region’s growth both as a member of the community which has had branches in the region since the early 1900s and as a facilitator of opportunities for corporate and institutional clients.
Adams says, "we want to help the aerotropolis drive as much value into the business supply chains locally as we can as well."
“This is one of the biggest growth opportunities that the bank currently has on its radar,” he concluded
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j.ballantyne1990-6AQqhLzZaK

Investor opportunities abound in Western Sydney Aerotropolis: Westpac

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GUEST OBSERVATION
A top fund manager for some of Australia’s most wealthy future Chinese citizens, Atlas Advisors Australia, is urging the Australian Government to improve the Significant Investor Visa industry regime to encourage greater investment into the nation.
Executive Chairman of Atlas Advisors Australia, Guy Hedley said he supported the Australian Government’s review of Investor visas and Significant Investor visas as part of its “Business Innovation and Investment Program: Getting a better deal for Australia” inquiry.
“The Federal Government is working hard to maximise the opportunities and benefits to Australia from the program,” Mr Hedley said.
“The best way to achieve this is through ongoing collaboration with key industry participants after the public consultation period for the inquiry closes on February 14.”
Mr Hedley urged the Australian Government to stay committed to the SIV program and to increase incentives for applicants. 
“Tweaks to improve the system could include extending the significant investor visa period from four years to five years which would equate to a 20 per cent increase in economic benefit without changing the asset mix,” he said.
“Alternatively, investors riskier exposure to emerging companies and venture capital could be increased with a reduced visa period of three years rather than four years.”
Mr Hedley said it was critical to remember that SIV applicants were future citizens who were pouring millions into the Australian economy without any certainty about their applications.
“This is boosting local businesses and funding startups in important areas such as health and technology as well as lifting Australian exports, employment and international trade connections,” he said.
Atlas Advisors Australia manages the investments of many of the highest net worth Chinese investors into Australia with more than $1.7 billion of funds under management.
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Deadline looms on Significant Investor Visa reform: Atlas Advisors Guy Hedley

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According to JLL’s annual Australian Shopping Centre Investment Review and Outlook 2020, the retail sector will be a key focus for investors seeking to take advantage of the more attractive pricing and depth of opportunities available. 
2020 Outlook:
JLL’s Joint Head of Retail Investments – Australia Jacob Swan said, “While retail investment volumes were light in the first half of 2019 ($1.8 billion), we saw a real change in momentum in the back half of the year ($4.5 billion) which saw 2H activity rise to the levels seen over the last five years.
“Institutional owners with large existing retail portfolios continue to revise their investment strategies and are likely to selectively divest assets in 2020. 
“REITs are transitioning from a long term historical strategy of accumulating retail assets to a more selective approach to portfolio construction.
“There is also likely to be a growing shift towards the re-classification of sub-sectors (such as regional and sub-regional) which may have implications for valuations, performance benchmarks and the pricing of risk by investors,” said Mr Swan.
<a href="https://www.propertyobserver.com.au/images/2020/2/5/shopping%20centre%201.jpg" target="_blank">Click here</a> to enlarge: 
<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/2020/2/5/shopping%20centre%201.jpg" alt="">
Source: JLL Research
Deep pool of capital remains in 2020:
Joint Head of Retail Investments – Australia Sam Hatcher said, “A range of dynamic new capital sources are emerging to absorb these institutionally owned assets, driven by the opportunistic timing, attractive yields relative to core office/industrial and the longer term potential for re-development and re-positioning. 
“A fragmentation of ownership will continue to occur in the retail sector as major owners become more selective towards the assets they retain in their portfolios and as new players build scale in the sector.
“Properties with strong underlying land value and long term future development potential are highly sought by investors. 
“While there has been less liquidity for larger centres, there has been a consistently deep pool of capital for non-discretionary anchored centres and single-tenant retail assets.
“Freestanding supermarkets and Bunnings Warehouses with strong covenants and long leases have continued to attract investor interest.
“In addition, retail assets in metropolitan areas with development potential remain highly sought after,” said Mr Hatcher.
Private investors expected to be active in 2020:
Mr Hatcher said, “The fact that private investors were net buyers in 2019, for the first time after six consecutive years as net sellers, is significant. Private Investors were net buyers in 2008, 2009 and 2010 when asset pricing was attractive. 
“Private capital is opportunistic and is acquiring assets to take advantage of the depth of opportunities available.  Demand is also strong for core retail assets, particularly for neighbourhood shopping centres in metropolitan locations and for single-tenanted retail assets with long leases,” said Mr Hatcher.
<a href="https://www.propertyobserver.com.au/images/2020/2/5/shopping%20centre%202.jpg" target="_blank">Click here </a>to enlarge: 
<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/2020/2/5/shopping%20centre%202.jpg" alt="">
Source: JLL Research
The year in review 2019:
After a slow start for retail investment transactions in 2019, liquidity improved in the second half as more capital sources emerged to take advantage of more attractive pricing.
It was the slowest first half in 2019 for retail investments since 2009.  Sales in the first half were $1.8 billion, with activity for the second half of the year stronger at $4.5 billion.  Transaction activity was at a seven year
low in 2019 in value terms ($6.3 billion)
Net buyers and sellers changed as a result of caution in the markets.
The two major institutional categories, REITs and Unlisted Funds, turned from net buyers to net sellers in 2019.  Private investors were net buyers in 2019 ($795 million) following six consecutive years of being net sellers.
Regional centres accounted for the highest proportion of shopping centres sold over 2019 at 29% or $1.8 billion.  Neighbourhood and sub-regional centres accounted for 21% (1.3 billion) and 17% ($1.1 billion) of total transactions respectively.
New South Wales accounted for 33% of total sales by value in 2019.  Victoria was the most active market by number of transactions in 2019 (39) but transactions by value fell to 19% from 32% in 2018.
Offshore investor acquisitions were stable at approximately $1.4 billion – consistent with the previous two years.  As a share of total transactions, offshore investors accounted for 22% in 2019, up from 18% in 2018.  
JLL’s Senior Director of Retail Research – Australia Andrew Quillfeldt said, “While there are limited signs of distress among major shopping centre owners, some groups are motivated to reduce their weighting/exposure to retail which will drive a steady supply of investment product.
“Fundamentals for shopping centres continue to evolve and buyers continue to price-in conservative assumptions.  Nevertheless, recent major transactions show there is still capital available for large retail assets. 
“The macro-economic drivers of retail spending suggest conditions for shopping centre fundamentals will remain largely unchanged in 2020 given the counterbalancing factors at present.    
“Annual retail completions fell by around 27% in 2019 and have been trending lower on a per capita basis for most of the past 25 years, excluding single-tenanted large format retail. The 2020 to 2023 forecasts suggest per capita supply will be around half the historical average,” said Mr Quillfeldt. 
<a href="https://www.propertyobserver.com.au/images/2020/2/5/shopping%20centre%203.jpg" target="_blank">Click here </a>to enlarge: 
<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/2020/2/5/shopping%20centre%203.jpg" alt="">
Source: JLL Research
JLL’s Head of Retail, Property &amp; Asset Management, Tony Doherty said, “Shopping centres are evolving to include new space users and sources of tenant demand. Social infrastructure such as childcare and health care are becoming more mainstream and will be a key growth opportunity for the sector. Competitive social operators are also slowly gaining traction as a new concept for shopping centres, with the introduction of technology-related businesses like esports and other experience-based retailers. 
“Owners and shopping centre managers will be keenly exploring various strategies to backfill discount department stores spaces and the strategy will vary depending on the location of the centre, the demographics and the retail mix. Many shopping centre owners will be exploring development opportunities for alternate use as a way to maximise the value of their land and as the sector embraces its mixed-use future,” said Mr Doherty. 
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Retail sector will be a focus for investors in 2020: JLL

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Mirvac Group has paid $249 million in a deal that will see it take over the redevelopment of the Nine Entertainment's headquarters in Willoughby, Sydney.
Mirvac has entered into an agreement to acquire the site from LEPC9 Pty Ltd, a joint venture between Lotus Property Fund and Hong Kong-based fund manager Euro Properties.
It intends to proceed with the approval for the construction of 460 new dwellings (pictured: CHROFI ARCHITECTS supplied concept image).
An agreement has also been reached to acquire the adjacent TX Australia property, with plans to demolish the TX transmission tower and repurpose the site. 
The site was first occupied by the Nine Network in the 1950s.
The selling syndicate headed by Lotus Property managing director Michael Jiang paid $147 million in 2015.
Last June the prime Willoughby property attracted about 12 bidders, including Harry Triguboff’s Meriton, Iwan Sunito’s Crown, Singapore’s Frasers Property Group, China’s Country Garden and the locally listed Mirvac.
<div id="vidora-top" class="circular-widget view-xlarge">The highest offer was reported as about $171 million.</div>
The vendor owns the Lotus Chinese restaurant chain, which has outlets at The Galeries at 500 George Street, Walsh Bay, College Street and Barangaroo in the Sydney CBD.
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$100 million premium paid by Mirvac to buy Nine's Willoughby site for $249 million

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EXPERT OBSERVER
The Reserve Bank has released its quarterly Statement on Monetary Policy (SMP). The report rounds out a full week for RBA communication that has also included the Governor’s decision statement following the Board’s February policy meeting, a speech on “the year ahead” and this morning’s semi-annual testimony to Parliament. The key themes throughout have been: a surprisingly confident outlook, notwithstanding a weaker recent performance and near term outlook due to bushfires and the emerging coronavirus shock; relatedly, a more positive view on the housing outlook, most notably around construction; a continued preparedness to cut rates further, particularly if labour markets were to weaken; but with a little more weight in the ‘balance of risks’ assessment being placed on the potential for further rate cuts to drive a renewed increase in household debt.
The SMP provides the fullest account of the RBA’s assessment and risks to the outlook. The central message here is that despite some downward adjustments to near term estimates: “…the medium-term outlook for the Australian economy is broadly unchanged from three months ago.” The bank’s point forecasts have GDP growth of 2% for 2019, 2.7% for 2020 and 3% 2020 (December quarter on December quarter growth rates). That compares to 2.3%, 2.8% and 3.1% in the previous SMP released in November. The medium term ‘central case’ view is of a gradual return to ‘around trend’ this year and rising slightly above trend in 2021. Similarly, the unemployment rate is expected to hold in the 5-5¼% range near term before gradually declining heading into 2021.
As we noted when these new forecasts were first revealed in the Governor’s statement following the Board meeting on Tuesday (see here), it is surprising that the RBA has retained its ‘around trend’ growth forecast for 2020 given the weaker momentum apparent in the September quarter national accounts; developing questions around the global economy; and the softer tone from a range of labour market lead indicators. Westpac’s forecast is considerably more downbeat, with growth now expected to come in at 1.9% this year, factoring in the impact of bushfires (more here) and a preliminary assessment of the impact from the coronavirus (more here). That in turn is expected to see the unemployment rate track higher, drawing a further easing response from the RBA with 25bp cuts forecast in April and August followed by quantitative easing measures.
Note that the RBA’s latest forecasts do include preliminary assessments of the impact of both bushfire and the coronavirus, although the high degree of uncertainty around the latter is stressed. It’s more detailed forecasts show a material downgrade to the first half of 2020 with annual growth of 1.9%yr over the year to June compared to a 2.6%yr forecast back in November. As the largely unchanged calendar year forecasts imply, this is largely offset by a rebound in the second half.
Key to the RBA’s more positive outlook are signs that last year’s policy easing is working to generate a lift in momentum – especially in the housing sector – and a view that this will continue as the ‘long and variable lags’ flow through to other sectors, consumer demand in particular. From the SMP: “The transmission of monetary policy is evident in established housing markets … It is too soon to see any response to this in household spending, but over time the drag on consumption growth from the earlier decline in housing prices and activity should wane.”
The global backdrop is also seen as more positive than a few months ago although here the messaging has been a little uneven. The emphasis in the Governor’s decision statement and speech was that “global growth is expected to be a little stronger this year and next than it was last year”. That jars slightly with the SMP commentary, which notes that “overall growth in Australia’s major trading partners is expected to be a little lower in 2020” – the difference possibly reflecting some late changes to allow for the emerging coronavirus shock.
On the bank’s more detailed forecasts, the 2020 outlook for business investment has been upgraded to 9.3% from 6.2% in November. The text suggests that this is around mining investment, “Growth (in mining investment) is expected to pick up noticeably over 2020 and 2021 as work commences on a number of sustaining and expansionary projects.” The RBA acknowledges that non-mining business investment was (1) weaker than expected in the September quarter, led by equipment spending; and (2) “the capex survey indicates equipment investment is likely to be weaker than previously expected over the remainder of 2019/20”. This had led to “the forecast for non-mining investment has been lowered over the next few quarters” Beyond that, “from late 2020, non-mining business investment growth is expected to increase modestly, in line with the broader pick-up in private demand”.
On household income, it is striking that real household disposable income growth for Dec 2020 has been downgraded to 1.4% from 2.3% previously. The figure for Dec 2019 is as before at 1.6%. The downgrade to consumer spending for Dec 2020 is more modest, 2.4% to 2.0% - suggesting in our minds downside risks given this weak income outlook. In the Overview of the Statement, consumption growth is expected to recover gradually, with “the low level of interest rates, a somewhat faster rate of income growth than in recent years and the recovery in household wealth are all expected to contribute to this turnaround”. The mix implies a significant decline in the household savings rate over the year.
On housing, “the trough in dwelling construction is expected to occur in the second half of 2020, before a recovery in residential construction gets underway through 2021”. The forecast profile for home building activity has been upgraded a little: with the Dec 2019 figure, to -9.8% from -11.3%; the Dec 2020 figure, to -1.9% from -2.6%; while for Dec 2021 the figure is unchanged at 9.2%.
Around the assessment of policy, the Bank clearly remains open to further policy easing. The board again considering the case for additional easing in February with the main concern being: “… the only gradual nature of the progress [towards the inflation target and full employment]” and “ongoing uncertainties” (i.e. around household balance sheet adjustments and from the near terms shocks from bushfires and the coronavirus). More specifically, the Bank is prepared to ease further “if the unemployment rate were to be moving materially higher and there was no further progress being made towards the inflation target.”
However, there has been a notable shift in the way the Board is assessing the case for further easing, which came more to the fore in the Governor’s speech, Parliamentary testimony and in the SMP than in Tuesday’s decision statement. Whereas back in late November the RBA Governor indicated that he was not particularly worried about the resurgence in house prices, the February SMP now explicitly notes that in considering the case for further policy easing “… a balance needs to be struck between the benefits of lower interest rates and the risks associated with having interest rates at very low levels.”, namely that lower rates could “encourage more borrowing by households eager to buy residential property at a time when housing debt is already quite high and there is already a strong upswing in housing prices in place. … [which] could increase the risk of problems down the track.”
Conclusion
Westpac continues to expect that a combination of a more moderate growth outlook and a deterioration in the labour market will require a further policy response. However, the RBA’s surprisingly confident forecasts and uncertainty around what the bank views as temporary shocks impacting near term casts doubt over how they will respond. The case for further policy accommodation will become clear to the RBA as its overly-optimistic expectations are not met. Currently we have April pencilled in for the next cut but recognise that the Governor may need more time to be convinced that further action will be required.
MATTHEW HASSAN is a Senior Economist for Westpac
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RBA's surprisingly confident view despite weaker recent performance: Westpac's Matthew Hassan

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Minister for Better Regulation Kevin Anderson today announced that recruitment is underway for an expert team to deliver on the NSW government’s building reform agenda.
Minister Anderson said the recruitment process within the Office of the NSW Building Commissioner will commence with the hiring of a new Transformation Management team.
With a workforce comprising of up to 15 operational staff, the Transformation Management team will be exclusively dedicated to the delivery of the Government’s six building reform pillars.
“Last year we recruited NSW Building Commissioner David Chandler to overhaul the building and construction industry. Now we’re at the stage we can build our capacity by hiring experienced professionals to support the Commissioners plan and deliver the reforms efficiently and effectively under his leadership,” Mr Anderson said.
In addition to the Transformation Management team, the Minister announced the phased delivery of up to 60 new roles responsible for the implementation and operation of the new auditing, registration and design lodgement functions.
Mr Anderson said, "we are also making progress on the risk ratings tool, which aggregates builder, designer, certifier and developer data to create a risk and compliance profile for each project." 
“Once the risky players are identified, we will ensure the right staff are in place to assist the Building Commissioner in exercising proposed powers to audit any development,” he concluded.
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NSW government now hiring for building reform agenda

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The Reserve Bank Governor Philip Lowe has indicated that the current level of interest rates is low enough to support the economy.
He hasn’t ruled out further rate cuts – especially if the jobless rate were to rise. But Governor Lowe has indicated that policy is appropriate for now.
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<div>
The Governor is well aware that low rates are affecting “confidence of some people”. He also recognises that low rates could encourage further borrowing to buy homes and that this could to “problems down the track”. 
So for now – with the jobless rate coming down and inflation gradually lifting – the Reserve Bank is happy to remain on the interest rate sidelines.
Despite bushfires, drought and the threat of coronavirus, the Reserve Bank is tipping economic growth near 2.75 per cent this year – near the economy’s speed limit.
The bushfires may cut economic growth by 0.2 percentage points across December quarter 2019 and March quarter 2020. 
<h1>Global economy</h1>
The Governor is more upbeat on the global economy: “These (US-China trade agreement and Brexit) are encouraging developments and provide a reasonable basis to expect that this year will be better than last year.”
Governor Lowe also reflected on one of the themes that CommSec has been focussing on over the past year: “we find ourselves in a world of low unemployment, low inflation and low interest rates. I expect that we are going to remain here for quite some time given the structural factors at work, although it does remain possible that a re-acceleration of growth in economies with little spare capacity could see inflation re-emerge.”
<a href="https://www.propertyobserver.com.au/images/2020/2/5/global%20economy%20.jpg" target="_blank">Click here</a> to enlarge:
<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/2020/2/5/global%20economy%20.jpg" alt="">
“Some investors are also taking on more risk as they search for higher returns in a low interest rate world. Both higher asset prices and a willingness to take more risk can be good for the global economy, especially if they lead to more investment, not just more borrowing. 
"We do, though, need to remember that it is possible to have too much of a good thing. So this is also an issue that international bodies, including the Financial Stability Board, are keeping a close eye on.”
<h1>Local economy</h1>
Our central forecast is for the Australian economy to expand by 2¾ per cent over 2020 and 3 per cent the following year. These growth rates are a little above our current estimate of medium-term growth in Australia, so some inroad into spare capacity should be made.”
“The expected pick-up in world growth should help us, the resources sector is in expansion mode again and we are expecting consumer spending to pick up. The outlook is also being supported by ongoing high levels of investment in infrastructure and the likelihood that the downswing in residential construction will come to an end later this year. Further increases in resource exports and continuing solid growth in public demand will also help.”
<h1>Specific topics</h1>
Governor Lowe focussed on three issues:
Ø  the ongoing adjustment in household balance sheets
Ø  the bushfires, the drought and the coronavirus outbreak
Ø  the importance of continuing to invest in our future.
<h1>Household balance sheets</h1>
The Governor said “we expect consumption growth to strengthen as households become more comfortable with their balance sheet positions. “Higher home prices and lower unemployment will assist in lifting spending growth.”
·         “So it is reasonable to expect that things improve from here, although it is hard to be precise about how much longer this period of balance sheet adjustment will continue.”
<h1>Bushfires &amp; coronavirus</h1>
On the bushfires, the Governor said “In assessing the impact of this on the Australian economy as a whole we have taken into account that there will be a material rebuilding effort and that government grants and insurance payments will assist many people. On this basis, our assessment is that GDP growth for 2020 as a whole will be largely unaffected. 
"There is, however, likely to be a noticeable effect across the December quarter last year and the current quarter. While it is still difficult to be precise, we estimate that the effects of the bushfires will reduce GDP growth by around 0.2 percentage points across the two quarters.”
On the drought, Lowe said: “A further decline of around 10 per cent in farm output is expected in 2020, representing a drag on GDP growth of around a quarter of a percentage point.”
On the coronavirus Governor Lowe said: “It is too early to tell what the overall impact will be, but the SARS outbreak in 2003 may provide a guide. On that occasion, there was a sharp slowing in output growth in China for a few months, before a sharp bounce-back as the outbreak was controlled and economic stimulus measures were introduced.”
<h1>Investment</h1>
The Governor again stressed that Australian businesses and governments need to invest.
“As I have said on other occasions, low interest rates should make it easier for both the public and business sectors to contemplate long-term investments, given that future returns don't need to be discounted as much. They also mean that financing costs are lower. With interest rates at record lows and likely to remain low for quite some time there are plenty of opportunities here.”
<h1>Monetary Policy </h1>
The Reserve Bank Governor said that “Over the next couple of years we expect further progress to be made towards full employment and the inflation target, although that progress is likely to remain quite slow.
Governor Lowe went on further saying that “The gradual nature of this progress reflects some significant structural shifts in the global economy related to technology and globalisation and, as I discussed earlier, a period of adjustment in household finances in Australia.” 
Lowe added: “Monetary policy has already responded to this and is providing considerable support to the Australian economy.”
<a href="https://www.propertyobserver.com.au/images/2020/2/5/gdp%20growth.jpg" target="_blank">Click here</a> to enlarge: 
<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/2020/2/5/gdp%20growth.jpg" alt="">
So monetary policy has acted. But what about further reductions?
Governor Lowe noted: “Given the outlook I have outlined today, the Board has, however, continued to discuss the merits of further monetary stimulus in an effort to speed the pace of progress and to make it more assured. 
"On balance, though, the Board has decided to hold the cash rate steady, recognising the significant monetary stimulus already in place and the long and variable lags associated with monetary policy.”
“This decision also reflects a judgement about the benefits from a further reduction in interest rates against some of the costs and risks associated with very low interest rates.”
“It certainly remains the case that a further reduction in interest rates would help with the balance sheet adjustment by households with existing debt, which should help bring forward the day that consumption strengthens. It would also have a further effect on the exchange rate, which would boost demand for our exports and therefore support jobs growth.”
“On the other side of the equation though, there are risks in having interest rates at very low levels. Internationally, there are increased concerns about the effect of very low interest rates on resource allocation and their effect on the confidence of some people. 
"Lower interest rates could also encourage more borrowing by households eager to buy residential property at a time when there is already a strong upswing in housing prices in place. If that occurs, this could increase the risk of problems down the track. So there is a balance to be struck here.”
“The Board recognises that the nature of this balance can change over time and that it depends very much upon the state of the economy. So it is continually looking at both sides of the equation. 
"If the unemployment rate were to be trending in the wrong direction and there was no further progress being made towards the inflation target, the balance of arguments would change. In those circumstances, the Board would see a stronger case for further monetary easing. We will continue to monitor developments carefully, including in the labour market, as we seek to strike the right balance in the interests of the community as a whole.”
<h1>What are the implications for interest rates and investors?</h1>
Interest rates are set to remain low. But further rate cuts are ruled out for now. As a result investors will continue to favour investment in shares and property, rather than cash.
Watch the jobless rate. If it starts rising again, then the Reserve Bank may act on rates. But for now the jobless rate is falling, forward indicators are positive and housing demand is rising.
Consumer spending remains one of the big uncertainties for 2020 together with the coronavirus impact on the global economy.
<a href="https://www.propertyobserver.com.au/images/2020/2/5/uneployment%20.png" target="_blank">Click here</a> to enlarge: 
<img src="https://www.urban.com.au/images/2020/2/5/uneployment%20.png" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2020/2/5/inflation%20.jpg" target="_blank">Click here</a> to enlarge:  
<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/2020/2/5/inflation%20.jpg" alt="">
CRAIG JAMES is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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The Reserve Bank Governor paints a positive picture: Craig James

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EXPERT OBSERVER
I’ve been telling our customers for the past two years that the outstanding property market in Australia is Regional Victoria.
And multiple data sources continue to support the view that anyone seeking affordable property, good rental yields and in particular great capital growth would be wise to consider Regional Victoria.
There is no other market jurisdiction in Australia that has delivered so many locations with double-digit growth in their median prices in the past 12 months. Equally, Regional Victoria is a national leader on locations with strong long-term capital growth rates.
The regional areas of Victoria were also prominent in the latest Pain and Gain Report from CoreLogic which highlights the number of properties sold for a profit in the September 2019 Quarter.
Why is Regional Victoria doing so well? Partly it’s because Victoria is the No.1 economy in the nation. The latest State of the States report from CommSec confirms Victoria as the leading economic performer in the nation, with New South Wales slipping down the rankings to third.
And partly it’s because Victoria continues to be the No.1 state for population growth, gaining significantly from both overseas and interstate migration.
Victoria’s ranking as the No.1 economy and population growth state isn’t just about Melbourne – the regions have been major contributors to the state’s success.
Recent data on unemployment showed that Regional Victoria leads the states in jobs growth and has the lowest unemployment rate. ABS data shows that 20,000 people found work in regional Victoria in the three months to November.
Regional Victoria’s jobless rate is 3.7% – the lowest in the nation and well below the average regional rate of 5.1%. In the past five years, regional Victoria’s unemployment rate has decreased by 2.9 percentage points.
This is translating into exceptional performance in real estate.
CoreLogic’s quarterly Pain and Gain report (which compares the prices of properties sold in the September Quarter with their previous sale) found that Hobart was the national leader – 98% of houses sold made a profit.
But close behind in second place was Regional Victoria, where 97% of houses sold for a price higher than the vendors paid previously (ahead of Melbourne’s 96% and Sydney’s 92% - and the national average of 90%).
In terms of apartments, Regional Victoria ranked third in the national (94%), well above the national average of 80%, Sydney’s 87% and Melbourne’s 85%.
The out-performance of Regional Victoria locations shows up in price growth data for the past year and also for the past decade.
Dozens of Regional Victorian locations have recorded double-digit growth in their median house prices in the past 12 months.
Ballarat has been particularly outstanding, with Ballarat Central (13%), Brown Hill (20%), Golden Point (18%), Lake Wendouree (11%), Mt Pleasant (21%) and Wendouree (10%) all producing strong price growth.
The City of Greater Geelong also produced multiple growth leaders, including Barwon Heads (12%), Bell Park (12%) and Drysdale (20%).
Other high-growth locations were spread around the state, including Newborough (16%), Wonthaggi (14%), Heathcote in Bendigo (17%), Maldon (17%), Irymple near Mildura (23%), Daylesford (13%) and Mansfield (13%).
This kind of growth in not a one-off event – many Regional Victorian locations have long-term capital growth rates above 7% per year, with some nudging 9% per year – which puts them alongside the best in the nation.
The City of Greater Geelong, Ballarat and the Macedon Ranges LGA all have multiple locations with capital growth rates between 7% and 9% per year.
Lake Wendouree in Ballarat has averaged 8.9%, while Woodend (Macedon Ranges) and Norlane (Geelong) have both averaged 8.7% per year.
Others with capital growth rates above 8% per year include Beveridge, Daylesford, Maldon, Geelong (the suburb), Kyneton and Herne Hill (Geelong).
TERRY RYDER is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
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terryryder-YECXbqmri2

Regional Victoria is Australia's most outstanding property market: Hotspotting's Terry Ryder

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EXPERT OBSERVER
As expected, the Reserve Bank Board decided to keep the cash rate unchanged at 0.75%.
It is noteworthy that the Board has also not adjusted its growth forecasts for 2020 and 2021 holding them at 2.75% and 3% respectively. The discussion around the two recent shocks to growth – bushfires and coronavirus – emphasises the likely temporary impact of both although the statement does appropriately point out that “it is too early to determine how long lasting the impact [of the coronavirus] will be”.
Further emphasising this tentative approach to coronavirus developments, the description around the world economy has changed: “global growth is expected to be a little stronger this year and next than it was last year.” That compares to the December statement which only referred to: “the outlook for the global economy remains reasonable” – a surprising modest lift in confidence around the world economy given the current recent market developments.
On the other hand the fall in the unemployment rate since the last Board meeting, from 5.3% to 5.1% has been taken on board and the new forecast for the unemployment rate in 2020 appears to be 5.1% down from 5.25% at the December Board meeting. For 2021 the expectation that the unemployment rate will fall slightly below 5% is maintained.
It is of some interest that the statement does not repeat the description “gentle turning point” although the arguments pointing to an improving growth outlook – the low level of interest rates; tax refunds; ongoing spending on infrastructure; a brighter outlook for resources – is now supplemented by a more confident outlook for the residential construction cycle where the statement points to an expected recovery later this year.
It is important that the sentiment in the December statement that “the Australian economy can sustain lower rates of unemployment and underemployment” has been repeated. This emphasises the desirability, from the Board’s perspective, of further falls in the unemployment rate.
The recent weakness in the Australian dollar is recognised with the AUD being described as “around its lowest level over recent times”. That compares with the previous description of “at the lower end of its range in recent times”. There may be some inconsistency in this observation given that if, as the growth forecasts imply, the economy bounces back from the short term shocks, a recovery in the AUD is almost certainly going to be an outcome.
In the final paragraph, the statement repeats the sentiment of the December statement emphasising: 1) the long and variable lags in the transmission of monetary policy; and 2) the Board is prepared to ease policy further if needed. The third point used in December, that “[the Board] continues to monitor developments, including in the labour market” has been modified to “The Board will continue to monitor developments carefully, including in the labour market”. Arguably this final difference can be interpreted as the Board being more uncertain about future developments and therefore wanting to emphasise its strong duty of care.
Conclusion
We have been surprised that the Board has retained its growth forecast for 2020 at 2.75% (around trend) given the weaker momentum which was apparent from the September quarter national accounts and developing questions around the global economy. It is also somewhat brave, given a range of leading indicators around the labour market, to assume that the recent surprise fall in the unemployment rate over the last two months, from 5.3% to 5.1%, will be sustained. Westpac’s forecast is for the unemployment rate to drift upwards over the first half of 2020.
The uncertainty around the coronavirus poses substantial risks to economic forecasts but certainly the impact of the virus over the course of the first quarter both globally and domestically has to be quite damaging. It seems unlikely that subsequent stimulus policies will be able to fully offset the short term damage done to confidence and activity implying a realistic downward revision to growth forecasts, both globally and domestically.
Westpac continues to expect that a combination of a more moderate growth outlook and an unexpected (by the RBA) deterioration in the labour market will require a further policy response. Our forecast is that the next rate cut will occur in April followed by a further cut in August.
BILL EVANS is the Chief Economist at Westpac
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RBA remain optimistic but cash rate cuts ahead

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EXPERT OBSERVER
Dwelling approvals posted a much smaller than expected 0.2% dip in Dec, following a sharp 10.9% jump in November. The Consensus had been looking for a 5% pull back. Annual growth lifted to 2.7%yr, the first positive since June 2018, albeit with monthly comparisons flattered by base effects. Measured on a quarterly basis, Q4 saw a 6.1%qtr rise but approvals still down 8.3%yr.
As noted in our preview, the previous month's gain was heavily concentrated in NSW, which posted a 50%+ rise, approvals ex NSW down 0.9%. We attributed much of this to a delayed effect associated with regulatory changes rolled out in October with December expected to see the spike reverse.
<img src="https://www.urban.com.au/images/2020/2/4/Dwelling%20Approvals%20CL%20JAN.JPG" alt="">
The December detail confirmed this with a sharp reversal in NSW (–30%mth) but the impact was negated by an even sharper high-rise-driven spike in Vic (+34%mth). Our initial take is that this is again largely a temporary effect relating to the lumpy high rise project pipeline. That said, Vic is showing a decent lift in non high rise approvals as well that may be an early sign that the wider market upturn is starting to flow through to non high rise segments.
Outside of NSW and Vic, approvals across the rest of Australia fell 3.6%mth on a combined basis and are tracking a much weaker profile. For the December month, approvals fell 5.7% in Qld, slumped 20% in SA but rose 5.4% in WA.
The segment breakdown nationally showed an estimated 11% pull back in high rise approvals which followed a 40% jump in Nov. 'Low-mid' rise approvals surged strongly, up an estimated 19% in the month and 22%yr. Private house approvals dipped 0.1%mth to be down 7.1%yr. On a combined basis, non high rise approvals were up 4.1%mth but still down 0.8%yr.
Renovation approvals continued to fall sharply into year end, the total value of approvals down further 1.8% in December to be down 5.5% for Q4 as a whole – the fastest pace of decline since 2016.
Non residential building approvals pared back some of their recent weakness, jumping 35% in the month but still down 17.5% for Q4 as a whole – the segment can be extremely volatile month to month but has moved into a fairly clear downtrend since August.
Overall the December update shows a complex mix with one off factors likely again exaggerating strength but some hints of firming elsewhere. As always, housing-related data should be treated with extra caution through the December-January period as seasonality can amplify volatility. On balance we continue to expect approvals to show a muted and slow response to rate cuts with a gradual lift in non high rise approvals coming through more strongly by mid-2020 (overlaid with a slightly boost from bushfire-related rebuilding) but high rise holding broadly flat. While the monthly profile for total approvals may be shaping into a sharper turning point the detail suggests the underlying cycle is turning more slowly. Either way, its likely to be a few more months before we get a clear read.
MATTHEW HASSAN is a Senior economist at Westpac
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