<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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A development site in Botany with approval for 35 self contained accomodation rooms and four commercial shops has been listed for $5.5 million.
It's the site of the 1911 built Finnie's Buildings at <a href="https://www.realcommercial.com.au/for-sale/property-1094-1098-botany-road-botany-nsw-2019-502936794" target="_blank">1094-1098 Botany Road</a>.
The construction of Finnie's Buildings provides evidence of the retail infrastructure that was necessary to support the needs of the growing residential population by the turn of the 20th century.
<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/2019/12/5/1094%20-%201098%20Botany%20Road%20Botany%20.jpg" alt="">
The retail space has been mixed over its near 110 year old history. It's been called home by the likes of a butchers, chemist, bank, sporting goods store and a hairdresser.
It is currently made up of three retail shops with an office and three apartments upstairs, netting in total $151,275 per annum.
There's development approval to convert the building in to 35 self-contained rooms designed by Giles Tribe Architects.
<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/2019/12/5/1094%20-%201098%20Botany%20Road%20Botany%202.jpg" alt="">
The retail space will be expanding to four shops. There will parking for 13 cars and seven motorbikes, but no basement parking.
NG Farah agent Martin Farah is marketing the development site in conjunction with Century 21 agent Andrew Duignan. 
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jrobinson-rf4aSBido9

Botany site with approval for 35 apartments listed for $5.5 million

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EXPERT OBSERVER

Australians saved rather than spent most of the budget tax cuts, almost doubling the proportion of household income saved, leaving spending languishing.

The September quarter <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5206.0" target="_blank">national accounts</a> show that in the first three months of the financial year real household spending grew by just <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5206.0Main%20Features3Sep%202019">0.1%</a>, the least since the global financial crisis.

Over the year to September, inflation-adjusted spending grew by a mere 1.2%, also the least since the financial crisis. Australia’s population grew by 1.6% in that time, meaning the volume of goods and services bought per person went backwards.

<hr>
<h2>Quarterly growth in household spending</h2>

<a href="https://images.theconversation.com/files/305094/original/file-20191204-70149-1ixi708.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" src="https://images.theconversation.com/files/305094/original/file-20191204-70149-1ixi708.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip"></a>

Household final consumption expenditure, quarterly real growth. <a class="source" href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5206.0Main%20Features3Sep%202019" target="_blank">Australian National Accounts</a>

Separate figures released by the Federal Chamber of Automotive Industries on Wednesday show November new car sales were <a href="/news">down 9.8%</a> on November 2018.

By the end of November the Tax Office had issued more than 8.8. million tax refunds totalling A$25 billion, 30% more than a year before.

Instead of being largely spent, they were mostly saved, pushing up the household saving ratio from 2.7% to 4.8%, its highest point in more than two years.

<hr>
<h2>Household saving ratio</h2>

<a href="https://images.theconversation.com/files/305092/original/file-20191204-70144-nfcimx.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" src="https://images.theconversation.com/files/305092/original/file-20191204-70144-nfcimx.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip"></a> Ratio of household net saving to household disposable income. <a class="source" href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5206.0Main%20Features1Sep%202019">Australian National Accounts</a>

<hr>
Treasurer Josh Frydenberg put the best face on the result, saying whether they had been spent or saved, the cuts had put households in a stronger position.

The government’s goal has always been to put more money into the pockets of the Australian people, and it’s their choice as to whether they spend or save that money

Separately calculated <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8501.0Main+Features1Sep%202019" target="_blank">retail figures</a> show that in the three months to September the volume of goods and services bought fell 0.1%.

The disposable income households had available to spend grew an outsized 2.5%, driven by what the Bureau of Statistics said were the <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5206.0Main%20Features2Sep%202019" target="_blank">budget tax cuts</a>.

<h2>Growth at GFC lows</h2>

The Australian economy grew just 0.4% in the three months to September, down from 0.6% in the June quarter, and 0.5% in the March quarter.

Over the year to September it grew <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5206.0Main%20Features1Sep%202019" target="_blank">1.7%</a>, well short of the <a href="https://budget.gov.au/2019-20/content/bp1/download/bp1_bs2.pdf" target="_blank">budget forecasts</a>, which in year average terms were 2.25% for 2018-19 and 2.75% for 2019-20.

<hr>
<h2>Real GDP growth</h2>

<a href="https://images.theconversation.com/files/305100/original/file-20191204-70126-15uhedo.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" src="https://images.theconversation.com/files/305100/original/file-20191204-70126-15uhedo.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip"></a> <a class="source" href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5206.0Main%20Features1Sep%202019" target="_blank">ABS, Commonwealth Treasury</a>

<hr>
After taking account of population growth, GDP per person grew not at all in the September quarter. Over the year to September living standards grew a bare 0.2%.

Gross domestic product per hour worked, which is a measure of productivity, fell 0.2% during the quarter and fell 0.2% over the year.

Company profits were up 2.2% in the quarter and 12.7% over the year. Wage and superannuation payments grew at about half those rates: 1.2% and 5.1%.

Housing investment was down 1.7% over the quarter and 9.6% over the year.

What household spending growth there was was concentrated on essentials, led by health and rent. So-called discretionary or non-essential expenditures fell, led down by spending on cars, dining out and tobacco.

<hr>
<h2>Consumption growth by category, quarterly</h2>

<a href="https://images.theconversation.com/files/305120/original/file-20191204-70174-1ez6pr1.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" src="https://images.theconversation.com/files/305120/original/file-20191204-70174-1ez6pr1.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip"></a> Treasury definitions of discretionary and non discretionary spending. ABS, Commonwealth Treasury

<hr>
The economy was kept afloat by a surge in government spending. It grew 0.9% in the quarter and 6% over the year. Growth in government spending and investment together accounted for 0.3 of the quarter’s 0.4 points of economic growth.

<h2>Government and mining to the rescue</h2>

Mining production grew 0.7% over the quarter and 7.4% over the year. A mining-fuelled surge in exports (which eclipsed imports for the first time since the 1970s) contributed almost as much to economic growth as government spending.

Drought-affected farm production fell 2.1% over the quarter and 6.1% over the year.

Business investment fell 4% in the quarter and 1.7% over the year, led down by a 7.8% fall in mining investment in the quarter and a 11.2% fall over the year, as liquefied natural gas projects came to completion. Non-mining investment fell 0.4%.

Asked whether the December budget update would contain tax measures designed to boost business investment, the treasurer said he was in discussions with business. The update is expected in the week before Christmas.

There’s little evidence in today’s figures of the “<a href="https://www.rba.gov.au/media-releases/2019/mr-19-33" target="_blank">gentle turning point</a>” spoken about hopefully by the Reserve Bank governor as recently as Tuesday.

If things don’t pick by the bank’s first board meeting for the year in February, it is a fair bet it will cut its cash rate again. By then it will know what the treasurer did (or didn’t) do in the budget update and whether we decided to spend over Christmas.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/128297/count.gif?distributor=republish-lightbox-basic" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" width="1">

<a href="https://theconversation.com/profiles/peter-martin-682709" target="_blank">Peter Martin</a>, Visiting Fellow, <a href="http://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292" target="_blank">Crawford School of Public Policy, Australian National University</a>

This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/gdp-update-spending-dips-and-saving-soars-as-we-stash-rather-than-spend-our-tax-cuts-128297" target="_blank">original article</a>.
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GDP update: spending dips and saving soars as we stash rather than spend our tax cuts

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After two solid months of growth in August and September, online retail sales weakened in October, according to the latest NAB Online Retail Sales Index data.
Transactions went back -1.4 per cent over October, however year on year were up over seven percent despite slowing growth.
The largest sales category, homewares and appliances, recorded a significant monthly contraction in sales, and was a key contributor to the headline result. 
There was further improvement in sales growth for the second largest sales category, grocery and liquor.
<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/2019/Online%20retail%20sales%20mom%20NAB.jpg" alt="">
This category was significantly impacted by the mid-year sales weakness, so much so, that its share of the online index has dropped from around 28% a year ago to about 26% now.
The smallest sales category, takeaway food, has been the most volatile in terms of sales growth; through this volatility, this category’s sales are up 80% when compared to the monthly sales of October 2018, and is almost 50% larger in the 12-months-to October 2019. 
 
<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/2019/12/4/NAB%20MOM%20retail%20sales.jpg" alt="">
Alan Oster said, Chief Economist, NAB said, "The three most populous states represent just over 80% of all online sales, slightly above their share of the population. Of these large sales states, Victoria leads in year-on-year growth, with ACT and NT leading the smaller sales regions."
"On average, online sales growth in Victoria has been higher than NSW over the past couple of years. Consequently, the gap in spend share between the two is narrowing."
"Representing about two-thirds of all online sales, metropolitan areas recorded a bigger contraction in sales growth in October, relative to regional areas."
"This generally followed across all states except WA, where regional sales growth contraction was larger than metro areas. In addition, regional online retail continued to grow in NSW and SA, indicating that the headline contraction for these states was driven by metro areas."
"By merchant location, international retailers (+1.0%) grew strongly in the month, while domestic (-1.6%) retailers contracted."
"While key domestic categories of grocery and liquor, and personal and recreational continued to grow, it was insufficient to offset weakness in the sales categories of homewares and appliances, media, fashion, and department stores."
"Fashion, games and toys, and small sales category takeaway food contributed to the continued growth for international merchants, he concluded.
<address> </address>
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Online retail sales weakens after strong growth: NAB

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EXPERT OBSERVER
Australia’s record economic expansion is well into its 29th year.
The Australian economy grew by 0.4 per cent in the September quarter (consensus: +0.5 to +0.6 per cent) after growing by an upwardly-revised 0.6 per cent in the June quarter. Annual economic growth rose from 1.6 per cent to 1.7 per cent.
The biggest contribution to growth came from net exports (+0.3 percentage points); followed by government consumption (+0.2pp). Household consumption, ownership transfer costs, public investment and inventories all contributed +0.1pp. Detracting from growth were machinery &amp; equipment spending (-0.2pp) and dwellings (-0.1pp).
Real net national disposable income rose by 0.9 per cent in the September quarter to be up 4.8 per cent on the year. In nominal terms GDP increased by 1.1 per cent in the quarter and rose by 5.5 per cent over the year (annual average +4.5 per cent).
GDP per hours worked fell by 0.2 per cent in the September quarter to be down by 0.2 per cent on the year.
Thirteen of the 19 industry sectors expanded in the September quarter. Strongest contribution to growth was recorded by Healthcare and Social Assistance (+0.2 percentage points). Mining, Professional scientific and technical services, and Public administration and safety all added 0.1pp to GDP growth.
What does it all mean?
The Reserve Bank continues to emphasise that the economy has reached ‘a gentle turning point’. And a thorough review of the evidence supports this view. If Aussie consumers and businesses had more confidence, then the upturn would be more robust. Because incomes are growing faster than longer-term averages. But the seeds are there.
There is more evidence that consumers are saving the tax cuts at the same time that borrowers are responding to rate cuts by paying off debt at a faster rate. The household saving ratio has lifted to 4.8 per cent. The Government and Reserve Bank will need to re-assess, and determine what stimulus measures have the best chances of working in the current environment.
Over the last 28 years the economy has stared down numerous challenges. Indeed, the economy has a wonderful knack of responding to challenges or crises. If consumers forget how to spend, then exports or government spending have stepped up to the plate. And that is what we are seeing now. The Reserve Bank may be struggling to get inflation into the target band, but it continues to preside over a record-breaking economic expansion. It’s important to know that Australia is not alone in dealing with lower-than-normal price growth.
The gloomsters will be disappointed - again. The record economic expansion continues. And supported by tax cuts, low interest rates, housing recovery, competitive exchange rate and an infrastructure boom, the prospects remain positive. Commonwealth Bank Group economists support the Reserve Bank in forecasting 2.75 per cent economic growth in 2020. Growth of 2.25-2.50 per cent is expected in 2019/20.
There is some hand-wringing on productivity at present. And clearly Australia needs to do better with the country actually less productive than a year ago. But employment has been surging in the past few years. And it takes time for the new employees to be fully productive. As a result some patience is required on a lift in productivity to more ‘normal’ growth rates.
CRAIG JAMES  is the Chief Economist at CommSec
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Australia's record economic expansion rolls on: CommSec's Craig James

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Centuria Property Funds Limited has announced that contracts have been exchanged to sell 2-10 Wentworth Street, Parramatta, NSW for $105.3 million.
Settlement is expected to occur in Q1 CY2020. The A-grade office tower was purchased in December 2014 for $45.1 million.
Commenting on the sale of the property, Centuria joint-CEO Jason Huljich said, "when we purchased Wentworth Street in December 2014, our view was that the Parramatta office market was poised to benefit from a number of positive factors, including improving infrastructure links, the decentralisation of NSW government departments, and the overall gentrification of the area."
“At the same time, A-grade office vacancy was below 1%, which we believed could support stronger tenant appetite for quality office properties, which in turn would mean upward pressure on rents – which the Parramatta market has seen in recent years,” he said.
Over the past five years Centuria completed leasing transactions over 90% of the property (9,807 sqm) and achieved sizable rental growth – from an average of approximately $497 per sqm gross at acquisition to $617 per sqm gross at sale – an increase of 34%.
Mr Huljich explained that Centuria has a strong focus on creating value for unitholders, by maintaining close relationships with tenants and actively responding to their needs.
“Quality tenants underpin the strong, reliable income streams,” he said.
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Centuria sells Parramatta office tower for $105 million

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A Hong Kong investor has bought two prime retail shops across from Luna Park in St Kilda.
He paid $2 million for <a href="https://www.commercialrealestate.com.au/property/4-shakespeare-grove-st-kilda-vic-3182-2015820349" target="_blank">4 Shakespeare Grove</a>, occupied by Bay City Burrito.
It was the bigger of the two spaces at 149 sqm. Bay City Burrito recently signed a 5+5+5 year lease at $118,660 per annum with three per cent annual rental increases.
The smaller 89 sqm retail space, <a href="https://www.commercialrealestate.com.au/property/5-6-shakespeare-grove-st-kilda-vic-3182-2015820350" target="_blank">5 and 6 Shakespeare Grove</a>, is currently the home of Japenese restaurant Gyoza King. That cost $1.45 million.
Gyoza King have a 5+5 year lease since December 2018. They pay $82,400 per annum, also with three per cent annual rental increases.
Both spaces are located just 50 metres from the premium Acland Street retail strip.
Savills agents Nick Peden, Mark Stafford, and Dorothy He negotiated the deals viatwo swift private sale campaigns, achieving tight yields and building rates of $13,423 and $16,292 per sq m. 
Peden said both local and offshore investors were drawn to the properties due to the high quality tenants and renowned location.
“Ultimately these two prime retail investments offered the buyers significant confidence, and highlight the strong buyer demand we are experiencing for revenue generating property.” 
“As interest rates continue at record lows, more and more people are looking to property investment for their savings, making these affordable investments highly sought after in the current market.” 
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Hong Kong investor buys adjoining prime St Kilda retail spaces

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EXPERT OBSERVER
As expected, the Reserve Bank Board decided to leave the cash rate unchanged at 0.75%.
The key themes around the policy outlook which have been consistently promoted in these RBA statements in recent months have been repeated.
Firstly, the Board “continues to monitor developments, including in the labour market”, and secondly, “the Board is prepared to ease monetary policy further if needed”.
However, an additional theme appears in today’s Decision Statement, “long and variable lags in the transmission of monetary policy”. This is not a new observation, given that it has appeared in Board minutes in the past but being elevated to the more succinct Decision Statement gives it some enhanced prominence.
The recent surge in established house prices, particularly in Sydney and Melbourne, has attracted further interest. The Governor now notes that the lower cash rate “has also boosted asset prices, which in time should lead to increased spending, including on residential construction”.
The relevance of house prices per se, and their impact on the real economy, will be a major source of policy discussion in the first half of 2020. The only other significant change to the Decision Statement in November is a more balanced outlook for the global economy – “while the risks are still tilted to the downside, some of these risks have lessened recently”.
Other consistent themes are: “economy appears to have reached a gentle turning point”, “the main domestic uncertainty continues to be the outlook for consumption”, and “the unemployment rate… is expected to remain around this level [5¼ per cent] for some time”.
However, in a direct reference to the need for further policy stimulus, the theme that “the Australian economy can sustain lower rates of unemployment and underemployment” stands out.
Finally, in reference to the turnaround in established housing markets, the Decision Statement still notes that “new dwelling activity is still declining and growth in housing credit remains low”.
Conclusion
This Decision Statement is a little more positive than we have seen in the past, mainly through the linking of rising house prices to a potential lift in spending and residential construction. It also continues to emphasise that the Board is prepared to be patient, is monitoring developments, that policy has long and variable lags, and is prepared to ease  "if necessary”.
If we were expecting a policy move over the next month, then this Decision Statement would raise some questions. However, our forecast that there will be a cut at the February meeting looks much safer. Over the course of the next few months, there will be a clear test of the RBA’s view that the unemployment rate will hold steady. There will also be further evidence around the strength of the consumer with the national accounts to be released tomorrow as well as two more retail sales reports.
The response of the Australian dollar to any confidence that the RBA will be on hold in February will also be important. We assess that one of the factors behind the consistently low AUD is the expectation that the RBA will continue down its easing path.
Overall, despite this emphasis on “monitoring” and the slightly more upbeat discussion on the Australian economy, we still feel confident that the rate cut in February will be delivered.
Furthermore, we argue that the growth, the unemployment rate, and inflation developments through 2020 will require further attention from the RBA culminating in a final rate cut to 0.25% in June. From that point, with further easing still required, the RBA will need to move to a form of Quantitative Easing, based on the regular monthly purchase of around AUD 2-3 billion of government securities.
BILL EVANS is Chief Economist for Westpac. 
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RBA holds the cash rate steady; emphasises scope to ease further: Bill Evans

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A substantial land holding with redevelopment potential (STCA) at Preston in Melbourne’ s inner north has hit the market.
The property, which is being offered for the first time in 35 years, will be sold by expressions of interest.
Located within close proximity of Northland, the 106 Bell Street is nine kilometres from the Melbourne CBD.
The property comprises a number of buildings/ sheds/warehouses of basic construction covering about 1000 square metres while the remainder of the land is sealed and utilised as hardstand. 
The near one acre, 3890 square metre site is zoned Industrial 3 and has seven metres frontage to Bell Street. 
The broad purpose of Industrial 3 zoning is to provide for industries and associated uses, to provide a buffer between the Industrial 1 Zone or Industrial 2 Zone and local communities, and to allow limited retail opportunities.  
According to marketing agents, Teska Carson’s George Takis and Adrian Boutsakis the property would suit an industrial park redevelopment or an owner-occupier yard.  
"The fact that the area has attracted the likes of Mazda, NAB, Office Works, Total Tools and Harvey Norman really underscores the significance of this location and the opportunity that the sale presents," Takis said. 
The property will be sold subject to a short term lease at a rental of $120,000 per annum gross. 
"As an inner suburb within close proximity of the CBD Preston has and continues to benefit from new development, population growth and gentrification, providing owner-occupiers, investors and developers with excellent growth," Boutsakis said.
"Key drivers have included an excellent level of amenities, an extremely popular market, Northland Shopping Centre, trains, trams, and schools and relatively affordable housing."
He said Bell Street provided easy access to several key arterials including Albert Street, Murray Road, Plenty Road, Chifley Drive and the Eastern Freeway. 
Boutsakis said the property’s key attributes included:
<ul>
<li>Industrial 3 zoning;</li>
<li>Large 3890 square metre site;</li>
<li>Prime Bell Street location;</li>
<li>Access to all amenities;</li>
<li>Main street frontage and exposure; </li>
<li>Short term holding income; and,</li>
<li>Close proximity to the CBD.</li>
</ul>
The expressions of interest campaign for the property closes on December 9.
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Development site of nearly once acre in Preston for sale

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EXPERT OBSERVER
<div id="post-body-2344560504014387325" class="post-body entry-content">
<div>Just to add to all the other woeful data released today, the preliminary index of commodity prices was down by -3.5 per cent in November, following on from a substantially (downwardly) revised -6.6 per cent decline in October. </div>
 <div class="separator"><a href="https://1.bp.blogspot.com/-ZpHxPyxhBS8/XeUWD1ePD_I/AAAAAAAAzJ8/cUV_89zPAP8WrA0ZWMBaCF4kiouWAPzKQCNcBGAsYHQ/s1600/Commodity.gif"><img src="https://1.bp.blogspot.com/-ZpHxPyxhBS8/XeUWD1ePD_I/AAAAAAAAzJ8/cUV_89zPAP8WrA0ZWMBaCF4kiouWAPzKQCNcBGAsYHQ/s640/Commodity.gif" width="640" height="498" data-original-height="465" data-original-width="597"></a></div>
<div> </div>
<div>Productivity figures released today were the worst in at least 25 years, and you can follow much of the other underwhelming news <a href="https://jamesfostermacro.blogspot.com/" target="_blank">here</a>. </div>
<div> </div>
<div>The Reserve Bank of Australia meets on Tuesday and the Board will need to work its way through a barrage of dire figures, including the ongoing nosedive in dwelling construction.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-mxFbqv6uopM/XeUV7w27ZDI/AAAAAAAAzJ4/-6H8KzN91H8V7WueVcKddgFbefJyG2nQACNcBGAsYHQ/s1600/RW.jpg"><img src="https://1.bp.blogspot.com/-mxFbqv6uopM/XeUV7w27ZDI/AAAAAAAAzJ4/-6H8KzN91H8V7WueVcKddgFbefJyG2nQACNcBGAsYHQ/s640/RW.jpg" width="572" height="640" data-original-height="924" data-original-width="828"></a></div>
 <div>Futures markets are unsurprisingly pricing further easing, with the economy, inflation, and wages growth all so mired in the doldrums.</div>
<div> </div>
<div>The question the Board will need to consider is: what exactly would waiting until February achieve?</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>. 
</div>
</div>
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Is a recession brewing? Pete Wargent

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EXPERT OBSERVER
Melbourne has negotiated the difficult post-boom correction phase and is now clearly in recovery mode.
The turn-around in overall fortunes in the Melbourne metropolitan area since the middle of 2019 has been characterised by a noticeable improvement in auction clearance rates and recent evidence of a revival in price growth.
Many Melbourne suburbs still have median house prices below the levels of 12 months ago, but in the most recent quarter their medians have risen.
And the latest generalised data for Melbourne suggests the city overall now has pricing levels higher than a year ago. SQM Research has Melbourne houses up 2% in annual terms, while CoreLogic reports a rise of about 1%. Both those sources report solid rises in latest month, both for houses and for apartments.
A standout feature has been the resilience of suburban unit markets in 2019: many Melbourne suburbs have recorded substantial decreases in their median house prices but rises in their median apartment prices.
The official statistics show that first-home buyers overall are more active now than at any time in the past eight years - and many young adults opt for the apartment lifestyle, rather than a house on land - and not just because it’s cheaper.
So demand for affordable apartments stayed relatively strong in 2019 at a time when demand for houses was weak. 
The price differential - in many Melbourne suburbs the median price for apartments is roughly half that for houses - has been a factor.
But demographic factors have also been influential. Not only do many young adults prefer apartments, but downsizing retirees are buying units and townhouses, while migrants flooding into Melbourne are often coming from cultures where attached dwellings are the norm.
For all these reasons, many apartments markets in suburban Melbourne have remained solid during the post-boom correction - and look poised for further growth.
At the same time, there has been strong demand for houses in good suburbs, but listings have been low.  Despite the onset of Spring and the increasingly positive market news in mainstream media, vendors have been strangely reluctant to come to the party. The downturn in the construction of new dwellings has been an additional factor.
The imbalance between supply and demand has been a factor in lifting clearance rates and median prices - and many forecasters are tipping strong performance in 2020.
SQM Research’s Louis Christopher in his Boom and Bust report, is forecasting price growth of up to 15% for Melbourne in 2020. SQM’s growth predictions for 2020 are modelled on different scenarios of what might occur over the next 12 months, based on changing market fundamentals and controls.
The base scenario – which would keep the cash rate unchanged at current lows of 0.75%, no intervention from banking regulator APRA, a recovering economy and a healthy Australian dollar – sees property prices rise 7% to 11% nationally through 2020.
But Melbourne is expected to exceed this with price growth of 14-15%, taking property values to new highs.
Other forecasters, including Commonwealth Bank and HSBC, are also tipping significant growth in major Australian cities in 2020, with Melbourne at the high end of the growth list.
In making selections for Hotspotting’s new edition of Top 5 Melbourne Hotspots, I have highlighted areas that have shown resilience during the downturn, have offerings that are affordable to mainstream buyers and have solid credentials for long-term, sustainable price growth.
The Darebin LGA precinct provides a good example: it has suburbs that continue to evolve through gentrification in good locations, with attractive proximity to the CBD and other big employment nodes.
Houses are relatively affordable and apartments particularly so. Vacancies are very low, as rental demand is consistently strong, and long-term capital growth rates are good. Yields are above average for Melbourne.
Similar arguments could be made for the Moreland and Moonee Valley municipalities which also feature in the new edition of our Melbourne report.
Brimbank and Wyndham make up the top five.
Overall, it’s a good time to be considering real estate investment in Melbourne and we expect 2020 to be a vibrant year for markets in the Victorian capital.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
 
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