<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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The Gold Coast City Council has purchased a vacant 85 ha block of land in Yatala for $12.8 million with plans to convert it into sports and recreation fields.
The substantial landholding is located at 396 Stanmore Road and was owned by the Enkelmann family since the 1800s, when they relocated into the region as one of the early European settlers.
It was taken to market via an Expression of Interest campaign through Colliers International on behalf of Joe Welch of Hickey Lawyers, as the executors of the deceased estate.
Daniel Coburn, Director of Industrial at Colliers International who marketed the property said the campaign generated interest from a range of developers and occupiers considering the land was zoned future low impact industry, is on the periphery of Yatala Enterprise Area and surrounded by rural and residential properties.
“The unique selling points of this cleared land parcel is that it had 1.3km of road frontage and as well as 900m Albert River frontage in the northern Gold Coast corridor which is one of the fastest growing regions in Australia in terms of population growth,” Mr Coburn said.
The proceeds of the sale will be used in a charitable foundation to benefit local charities and in memory of the Enkelmann family.
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j.ballantyne1990-6AQqhLzZaK

Gold Coast City Council bought vacant 85 ha Yatala block for $12.8 million

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EXPERT OBSERVER
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For a long time, we have been bearish on the Australian dollar,  seeing a fall into the high $US0.60s and revising this to around $US0.65 in May. In early October it fell to a low of $US0.6671.
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While negatives remain significant for the $A there is good reason to believe that we are close to the low or may have already seen it. This note looks at the main issues. 
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The negatives for the $A are well known 
The big negative for the Australian dollar is that growth is  weaker in Australia and spare capacity is much higher than in the US.
For example, labour market underutilisation is 13.8% in Australia versus just 7% in the US, on the latest available data real growth in Australia is running at 1.4% year on year compared to 2% in the US and that translates to per capita GDP growth of -0.2% in Australia compared to 1.4% in the US.
And the drag on growth from the housing downturn, weak consumer spending and the drought is likely to keep growth relatively weak in Australia for the next six months or so.
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This will keep inflation lower in Australia than in the US. Ideally more fiscal stimulus is required, and the Government has brought forward infrastructure spending. But combined with extra drought assistance this only amounts to an extra 0.1% of GDP of fiscal stimulus over the next 18 months which is not enough to make a significant difference to the growth outlook. 
So in the absence of more significant fiscal stimulus soon, the RBA is likely to cut the cash rate further to 0.25% and undertake some quantitative easing (ie using printed money to boost growth). By contrast the Fed is at or close to the low in US rates and is unlikely to return to quantitative easing. 
This will continue to make it relatively less attractive to park money in Australia. 
As can be seen in the next chart, periods of a low and falling interest rate differential between Australia and the US usually see a low and falling $A.
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So the higher probability of further monetary easing in Australia points to more downside for the Australian dollar. 
Of course, a shift in the policy focus away from monetary easing and towards greater fiscal stimulus would be more positive for the Australian dollar but this looks unlikely in the short term with the Government more focussed on delivering a budget surplus.
Five positives for the $A
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However, it’s no longer an easy (in hindsight) one way bet for the $A. There are basically five positives. First, the $A has already had a big fall. To its recent low it’s fallen nearly 40% from a multi-decade high of $US1.11 in 2011 &amp; it’s had a fall of 18% from a high in January last year of $US0.81.
Second, this decline has taken it to just below fair value. This contrasts to the situation back in 2011 when it was well above long-term fair value. The best guide to this is what is called purchasing power parity according to which exchange rates should equilibrate the price of a basket of goods and services across countries. Consistent with this the $A tends to move in line with relative price differentials over the long term.
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And right now, it’s just below fair value. Of course, as can be seen in the last chart, the $A could fall sharply below fair value as it tends to swing from one extreme to another. But this depends on the cyclical outlook for global growth and commodity prices. Which brings us to the next positive.
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Third, the global economic and commodity price cycle is likely to turn up next year in response to global monetary easing, a bottoming in the global inventory and manufacturing cycle and a 4 pause in President Trump’s trade wars as he refocusses on winning the presidential election.
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Based on historical experience, this should work against the US dollar as the US economy is less exposed to cyclical sectors than the rest of the world (which tends to see capital flow out of the US when global growth picks up and into the US when it slows). A weaker US dollar would in turn be positive for commodity prices &amp; the $A, which is a “risk on” currency given its greater exposure to cyclical industries like raw materials.
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Fourth, this comes at a time when global sentiment towards the $A remains very negative as reflected in short or underweight positions in the $A being at extremes – see the next chart. In other words, many of those who want to sell the $A have already done so and this leaves it vulnerable to a rally if there is good news.
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Finally, the current account has returned to surplus in Australia. The high iron ore price has helped, but so too have strong resource export volumes, services exports and a rising net equity position in Australia’s favour on the back of rising superannuation assets offshore. So the improved current account may be a permanent feature. This means less dependence on foreign capital inflows which is $A positive.
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So where to from here?
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The prospects for weaker growth and more monetary easing in Australia relative to the US suggests short-term downside pressure for the $A remains. But with the $A having already had a big fall to just below long term fair value, the global growth outlook likely to improve, short $A positions running high and the current account in surplus it’s likely that the $A may be close to, or may have already seen, its low. 
Our base remains for it to fall to around $US0.65 as the RBA continues to ease but at the end of 2020 it’s likely to be stuck around $US0.65-70 (or I’ll be honest &amp; admit I don’t have a strong view either way!).
Of course, if the US/China trade war escalates badly again and the global economy falls apart, causing a surge in unemployment in Australia as export demand and confidence collapses and another big leg down in house prices the Aussie will fall a lot more...but that’s looking less likely.
What does it mean for investors and the RBA?
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With the risks skewed towards the $A bottoming soon the case to maintain a large exposure to offshore assets that are not hedged back to Australian dollars has weakened. 
Of course, maintaining a position in foreign exchange for Australian-based investors against the $A provides some protection should things go wrong globally (say in relation to trade) or in Australia (say in relation to household debt).
For the RBA a shift in global forces towards being more supportive of the Australian dollar over the year ahead would complicate the RBA’s desire to boost Australian economic growth. 
Stronger demand for Australian exports would be positive, but upwards pressure on the $A would suggest that further monetary easing may be needed to help keep it down.
Key points
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In the absence of significant fiscal stimulus soon, further RBA monetary easing both in the form of rate cuts and quantitative easing point to more downside for the $A.
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However, there is good reason to believe we may be close to the low in the $A (or have already seen it): it has already had a large fall; it is just below fair value; the global economic cycle is likely to turn up next year; sentiment towards the $A is very negative; and the current account is in surplus.
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Our base case remains for the $A to fall to $US0.65 in the months ahead as the RBA eases further, but at the end of 2020 it’s likely to be stuck around $US0.65-70.
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SHANE OLIVER is Head of Investment Strategy and Chief Economist at AMP Capital.
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Five reasons why the $A may be close to the bottom: Shane Oliver

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Experts predict the Reserve Bank of Australia (RBA) will take unconventional measures to stimulate the economy in 2020, according to the latest survey data from Finder.
In their most recent <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">Finder RBA Cash Rate Survey™</a> – 33 experts and economists weighed in on future cash rate moves and economic indicators, including wage growth and housing affordability.
While economists almost universally expected no cut in December, many experts are forecasting a cut in February. This may be the last for a significant period, with three-quarters (73%) of economists saying a 0% cash rate is unlikely.
RBA Governor Phillip Lowe recently insisted that the federal bank had ‘no appetite’ for quantitative easing (QE), a process where the central bank creates new cash to decrease – or ease – the cost of borrowing.
But nearly half (46%) of experts said it was likely we’d see QE in 2020.
Graham Cooke, insights manager at Finder, said “The RBA said they may look to alternative stimulus methods once the rate hits 0.25%."
“We’re only two cuts away from that, and the three cuts of 2019 have failed to stimulate anything beyond the housing market,” Cooke said.
Click <a href="https://lh5.googleusercontent.com/02a-7JJna6IjqWtAijhZ6rm8W27bou3occx5_PFIeSABS_nb_aiZDZrQrSHUO-dztGbQ2TqccNgDB2tW8J3bBb67RMGMAEcBcM0Kcv6rE9az54GkaxiuiPqsohHaKb_fW7NyRYjm" target="_blank">here</a> to enlarge:
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On the bright side, a recession looks increasingly unlikely in 2020, with 89% of experts not expecting an economic decline and 88% thinking it unlikely that house prices will fall.
Three quarters of experts (76%) don’t foresee a significant rise in mortgage defaults, 64% think a US-China trade deal is likely and 52% say it is likely that house prices will fully recover.
Cooke said the positive outlook on China is significant because the fate of the US-China trade deal was cited as economists’ number one economic concern in the August survey this year.
While nearly all experts and economists predict a hold in December (97%, 32/33), two-thirds (66%, 22/33) expect the cash rate to drop to 0.50% in February 2020. This figure reflects the 64% of experts who predicted February would be a cut in last month’s survey. 
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Nearly half of surveyed experts forecast quantitative easing in 2020: Finder

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A standalone Coles supermarket, in the bayside suburb of Mentone, has sold on the tightest Victorian yield of 2019.
Located at 81 Mentone Parade, the recently refurbished property comprises a freestanding 2,854 square metre supermarket, with access to just over 150 council car spaces.
The standalone Coles supermarket sold for $15.3 million on a 3.4 per cent yield, the best vendor yield since Coles Clayton sold on a 2.57 per cent yield in March 2018.
The property was sold under a 10 year lease from January 2017, with a further 10 year option, to Coles at a current rental of $519,785 per annum net.
CBRE Director Mark Wizel, who managed the sale campaign with Justin Dowers and Joseph Du Rieu, said enquiry had been `through the roof’ with two Chinese investors - one the eventual purchaser - flying in for the auction.
Mr Wizel said the last three bidders – all Chinese – who took the bidding from $12 million to the close, were introduced through CBRE’s Asian Services Desk headed by Lewis Tong.
"This year we have seen yields hover around 5.5 per cent following an average closer to 4.5 per cent over 2018 but this result unambiguously indicates demand for this product remains very strong,’’ Mr Wizel said.
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Coles Mentone sold on tightest Victorian yield of 2019

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Wyndham Destinations Asia Pacific has bought Peppers Airlie Beach on the Whitsunday Coast.
The hotel, which was expected to sell between $15 and $20 million, will be re-branded Club Wyndham Airlie Beach Whitsundays and will be available for almost 60,000 Club Wyndham time-share owners.
As part of the acquisition, Wyndham Destinations Asia Pacific will also own and operate the on-site food and beverage and conferencing facilities.
Wyndham will take control of 59 of the 106 strata apartments. The rest are held in private ownership.
Barry Robinson, president and managing director, international operations at Wyndham Vacation Clubs, said "we are excited to secure this deal as we are committed to growing our presence in regional Australia and this acquisition is in line with that strategic intent.
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The Club Wyndham Air Beach features an open-air restaurant and bar, infinity pool and spa, gym, conference facilities and undercover parking.
CBRE Hotels agents Wayne Bunz, Hayley Manvell and Paul Fraser secured the sale.
The four and a half star hotel, opened in 2009, has been operated by Accor under the Peppers brand.
Josh Thompson’s Latitude Development Group built the resort for about $80 million.
 
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Wyndham buys Peppers Airlie Beach

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EXPERT OBSERVER
The second half of 2019 has seen a resurgence in demand from investors seeking to sweep up some of the Eastern Suburb’s most prized retail properties. 
The negative portrayal of Sydney’s economic growth seems to have kick started a desire to purchase commercial and residential property across the Eastern Suburbs. With interest rates sitting at record lows (0.75%), investor focus is now being diverted towards the property market in the search of higher returns.
Amidst the growing concerns over the impact of online shopping on high-street retail as we enter 2020, ABS 2019 data reports show that in August 2019 online retail sales accounted for 6.2% of total retail trade, indicating a minimal retail market share. 
Over the past couple of months, renowned suburbs such as Bondi, Double Bay and Woollahra have witnessed record breaking property acquisitions. It is suburbs like these that are being regarded as the best spots to invest in.
The Eastern Suburbs of Sydney contain some of the best retail strips, and we have seen a trend of areas with high foot traffic and low vacancy being targeted.
Recent key retail freehold transactions include:
27-29 Knox Street in Double Bay sold for $9,830,000 representing a net initial yield of 1.76%.
261 Bondi Road sold for $3.75m this month reflecting a net initial yield of 4%.
10 Cross Street in Double Bay sold for $10.25m reflecting a record breaking yield of 1.59%
While demand for leased assets with medium to long-term income streams seems to be a key requirement, there has been no shortage in transactions of vacant retail freehold properties that demonstrate strong fundamentals. 
Even more recently, two vacant strip retail properties (146 &amp; 148 Queen Street in Woollahra) sold for $5.65m reflecting a building rate of $24,459sqm. Investors are now becoming more creative as purchasing retail in these coastal hubs is not simply about securing a long term income stream but also about redevelopment potential or conversion with the implementation of a new tenant.
With average prime retail yields hovering around the 4-5% mark in Eastern Sydney, there has been strong demand from yield-chasing investors who have faced continued yield compression in the office and industrial markets. Recent data shows that bricks &amp; mortar retailing IS still very important with August retail trade having the strongest lift in spending in six months equating to a rise of 2.6% year on year.
Growth in retail is not limited to freehold assets, retail strata properties have also been a new talking point.
Shop 4, 284 Bronte Road, Waverley and 126-128 Avoca Street in Randwick transacted at yields of 5.1% and 5.45% respectively.
This indicates that attention is being directed to less expensive areas of the Eastern Suburbs as investors look to capitalise on infrastructure improvements such as the Randwick Light Rail, which has driven demand for surrounding pockets to the traditionally popular and more expensive suburbs like Bondi.
Looking ahead to 2020, whilst there is some conjecture as to how much longer this cycle will last, recent transactions have created an unprecedented pricing uplift for well-located retail properties. It is expected that investors will continue to favour the commercial property market as the probability of further interest rate cuts is soon to become reality.
Ollie Ridley is an executive for the metropolitan sales team at Savills Australia
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As Sydney’s temperature rises, so does demand for retail investment opportunities across the Eastern Suburbs: Savills

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A new report  by the ARC Centre of Excellence in Population Ageing Research (CEPAR), investigating the links between home ownership and population ageing, has found that delays in home purchase are broadly consistent with other social and demographic trends.
While younger people are less likely to commit to buying a home than they were in the past, this “makes sense given that lives have become longer and people are settling down at older ages”, according to the report’s lead author Rafal Chomik, a CEPAR senior research fellow at UNSW Sydney.  
“To give some examples, over the past 50 years the median age of home purchase has increased by six years, from age 27 to 33. Over the same period, the median age of getting a first job has increased by two years; finishing education has been delayed by five years; having a child has been delayed by seven years; and getting married is now taking place eight years later. In fact, the median age at death is now 12 years later, adding scope for people to catch up and purchase a house later in life,” he said.
<img src="https://www.urban.com.au/images/2019/11/18/graph%20.png" alt="">
“This is not to say that affordability and access to housing finance are not important. But the trend toward home purchase delay takes on a new complexion when placed in a broader demographic context,” Chomik added.
In a wide-ranging analysis of the links between housing and demographic ageing, the report, ‘Housing in an ageing Australia: Nest and nest egg?’ concludes that those at greatest disadvantage in retirement are renters. It reports on CEPAR estimates that indicate that relative poverty rates in this group are among the highest in the OECD.
“Home ownership serves multiple purposes and housing outcomes affect financial and personal health and well being over the lifecycle. It acts as a home – the nest – as well as a store of wealth – the nest egg – to guarantee financial security in retirement,” said Chomik.
“As lifespans increase and Australia’s population ages, it is important to understand the interactions between demography and housing.”
Centre Director John Piggott, Scientia Professor of Economics at UNSW Business School, said the research brief, which features and synthesizes research outcomes from more than 20 CEPAR researchers, was timely. It helped crystallise the role of housing in broader policies directed towards social support over the life course.
“Housing has long been a critical pillar in wellbeing and social support through the life course,” he said.
“One way or another, it has always been a central piece of our social support system. It is at least arguable that our social protection system has relied on a high owner-occupier ratio in order to function sustainably and adequately.”
Postponement of home purchase can have consequences
With the Australian retirement system built on the premise of home ownership, excessive or indefinite deferral of home purchase can have consequences.
“Lifetime home ownership rates will decline if some people postpone purchasing a home indefinitely,” said Chomik.
“Banks may be reluctant to lend past a certain age given retirement ages are increasing more slowly. Greater shares may retire with debt. In the report, we look at how ready Australia is for the population purchasing homes at later ages, or not at all, and provide an overview of evidence-based research in this area.
“There is the potential that in the future more older people end up renting, and if so, we need a safety net to support them as the current retirement income system is failing renters.
“Currently, the Age Pension offers the same maximum benefit for owners as it does for renters. The Government’s retirement income system review, due to report next year, is an opportunity to take housing into account more fully with the aim of narrowing the financial gap between renters and owners in the future.”
Older renters continue to experience significant vulnerabilities
The report outlines some of the challenges associated with people postponing their home purchase indefinitely and looks at how it may lead to vulnerabilities at older ages, including relative poverty, housing affordability stress, and, in the extreme case, homelessness.
New estimates, that take account of housing, suggest that older Australian renters have among the highest relative poverty rates in the OECD. They also have greater rental affordability stress than other age groups. While increases in measured homelessness among older women were due to greater numbers in this age group rather than higher incidence, their increased use of homelessness services was disproportionate.
<img src="https://www.urban.com.au/images/2019/11/18/graph%202.png" alt="">
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Home ownership being delayed longer as population ages: CEPAR report 

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Freehold industrial land in Brisbane’s Australia TradeCoast (ATC) has reached critical shortage with only circa 151 hectare (1 hectare sites or above) identified as vacant and available for industrial development on a freehold basis. 
As per the latest Colliers International research report, this represents less than 25% of the estimated land supply within the ATC precinct over the medium term, and it is located reoutside the Port of Brisbane and the Brisbane Airport. Leasehold land availability, on the other hand, shows relatively good supply of up to 455 hectares over the long term, representing 75% of the land available for industrial development.
“Whilst the Federal and State Governments retain ownership of the land at the Airport and the Port, the leasehold tenure inhibits direct investment by industrial operators or external investment vehicles,” Anthony White, National Director of Industrial at Colliers International said.
“Brisbane Airport Corporation and Port of Brisbane have proved to be highly capable and competitive industrial developers, primarily offering a solution to specific market sectors like corporate occupiers looking at long-term warehousing, container parks and airfreight facilities.
<a href="https://www.propertyobserver.com.au/images/2019/11/27/freehod%201.jpg" target="_blank">Click here</a> to enlarge: 
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“Current road and air infrastructure investment of circa $2 billion supports the precinct’s growth potential and would provide a competitive advantage for logistic operators. However, we agree with recent commentary that a dedicated rail connectivity to the precinct will be crucial to take pressure off South East Queensland arterial road networks.
“Currently, it is not viable for the Port operators to utilise inland rail as it stops 38km from the Port. The lack of freehold land opportunities within proximity to this infrastructure does provide another compelling argument for the construction of a dedicated freight rail connection to the Port,” White said. 
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Karina Salas, Research Manager at Colliers International said that based on historical take up rates, the ATC has industrial-zoned land supply (leasehold and freehold) to at least 2033, but it could be extended to approximately 2042. 
“Pinkenba is the main location for future freehold industrial developments in the ATC, with circa 45 hectares of developable industrial-zoned land. Over the next 15 to 24 years, more than 75% of the land available for industrial development would be offered on a leasehold basis.
“In terms of land values, ATC remains the most expensive South East Queensland industrial market, at an average price of $415/sqm as at September this year. Land values are likely to continue to experience moderate to solid growth over the years ahead supported by the forecast population growth in South East Queensland and the limited industrial-zoned land available for future development on a freehold basis.  
“Leasing activity within the precinct is forecast to remain solid, even though ATC is expected to remain the most expensive location for tenants, reporting average prime net face rents of $118/sqm compared to Brisbane offering average prime net face rents in the range of $103 to $111/sqm in different locations,” Salas said.
White also highlighted that occupiers are increasingly looking towards a total cost of occupation model with transport costs being a key driver.
ATC provides great access to major motorways which is key for distribution users, and the Port of Brisbane has always been a hotspot given the massive infrastructure spend over the past decade. Because of this, distribution operators continue to relocate to the precinct as it is a more viable option for them long term.
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Freehold industrial land in ATC reaches critical shortage: Colliers International 

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The Melbourne CBD commercial property market has performed strongly over 2019, continuing its momentum from the preceding year and setting record capital value rates and sharp yields, said Colliers International. 
According to its data, the Melbourne CBD market has performed exceptionally well year-to-date with a total of 12 middle market assets having transacted between $10 million - $100 million as at October 2019. 
Total transaction volume of sales is approximately $475 million averaging a capital value rate of over $15,000 and a sharp yield of 2.67%.
Daniel Wolman, Colliers International National Director of Melbourne City Sales, said the office investment market had been fuelled by the record low vacancy rate of 3.3%, one of the lowest vacancy rates we have experienced since 2008. 
“This has translated into the continued rise in rents and capital values, leading to further compressions of yields,” Wolman said. 
“We are seeing more and more local add-value players competing for high quality middle market assets within the Melbourne CBD. 
“The shortage of stock has also led to institutional players entering the $10 million - $100 million price bracket which is not traditionally explored by institutions.” 
Whilst the number of transactions decreased from 2018 and then remained steady throughout 2019, initial yields have demonstrated a strong downward trend with capital value rates creeping upwards, averaging $15,000 per square metre. 
The most recent sale of Swann House, 22 William Street, Melbourne demonstrates a sharp yield of 2.55%, in which sub 3% yields are becoming increasingly common place. 45 Exhibition Street, Melbourne which transacted in April 2019 showed a record high capital value rate of $17,562 and a yield of 1.33%. 
“The Reserve Bank of Australia cash rate cut to the current 0.75% has arguably fuelled the confidence of the commercial investment market, providing for a lower cost of borrowing coupled with an increase in appetite for quality commercial property offerings from investors and add-value players,” Colliers’ Oliver Hay said. 
“We anticipate this trend to continue throughout the rest of 2019. The extremely tight nature of middle market assets within the Melbourne CBD, coupled with the record low cash rate and positive investment sentiment will continue to fuel and provide a strong foundation for 2020.”
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Melbourne CBD office investment set to end year on a high

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Hobart remains the least affordable city to rent in Australia, followed by Adelaide which has overtaken Sydney as the second least affordable capital city, the latest release of the Rental Affordability Index (RAI) has found.
The RAI is an indicator of the price of rents relative to household incomes based on new rental agreements. It is released annually by National Shelter, Community Sector Banking, SGS Economics &amp; Planning and the Brotherhood of St Laurence.  
Rental affordability in some Australian cities, including Sydney, has improved marginally. However, the situation is untenable for people on Newstart, with rent costing at least 77% of their income in every capital city. 
Adrian Pisarski, Executive Officer, National Shelter, said: “There is not one place in Australia where a Newstart recipient can rent affordably.  
“Newstart renters in metro Sydney require 4.5 times their current income to achieve affordability. The most affordable places we have are in regional SA and even there someone on Newstart needs to pay 47% of their income to rent.  
“The RAI evidence is conclusive: all Newstart recipients who are renting are living in poverty. The situation is only marginally better for single and dual pensioners who also face unaffordable rents everywhere in Australia. 
“The implications for retirement incomes policy are dire with more people retiring without owning and facing a completely unaffordable rental market. We know older women are the fastest growing cohort experiencing homelessness and we’d expect increased rates of homelessness among older people based on these findings.”
Ellen Witte, Partner at SGS Economics and Planning said: “People on Newstart are the most vulnerable cohort in the country as they experience the worst levels of housing stress. 
“After paying the rent there are not enough resources left, and people may not even be able to fork out money to go to a job interview. There is an urgent need to raise the Newstart allowance and provide these households a pathway out of the poverty trap.”
James Barron, Head of Relations at Community Sector Banking, said: “Looking beneath the headline figures, rental stress is affecting the majority of very low-income households in Australia. People on Newstart are being hit particularly hard, being pushed to the outer fringes of our cities and away from opportunities for training and employment.
“Even in cities with higher than average incomes and better than average rental affordability, the plight of low-income renters continues to deteriorate.”
Conny Lenneberg, Executive Director of the Brotherhood of St Laurence, said that Newstart is the second-lowest unemployment payment in the OECD group of wealthy nations. When rent assistance is included, compared to other nations’ housing benefits, Newstart plunges to the lowest payment.
“Our social security safety net is letting down fellow citizens. There is an urgent need to raise Newstart and its very modest rental supplement and to increase subsidised social housing. 
“The evidence is utterly compelling: the deeply inadequate Newstart rate is a driver of homelessness. This is not the ‘fair-go’ society we cherish. 
“With high rents, single older job seekers and families with young children are in the eye of the affordable housing storm across the country. We are seeing increasing disparities, and the crisis end of this challenge is visible on our streets.” 
No relief for low-income households 
Rental stress has become so entrenched and severe for low-income households that the recent improvement in some cities has brought little relief – with the situation for most low-income households in these metropolitan areas remaining untenable.
More than a million households need some form of housing assistance, while 43% of low-income households experience rental stress. 
“Many working families and all non-working groups on benefits face severe rental affordability issues,” Pisarski said. 
“Renting households on incomes below $60,000 per annum have no affordable rentals in our cities, including all capitals and nearly every centre on the east coast. In the WA mining regions, even those earning up to $85,000 face unaffordable rents.”
A vision needed for Hobart 
A score of 100 and below on the RAI shows that households on average incomes would be required to spend at least 30% of their income on rent. A score of 100-120 indicates households are facing moderately unaffordable rents.  
Greater Hobart is the only capital city where rental affordability has dropped below the critical threshold of 100, falling to a RAI score of 93 in June 2019 and putting the city’s rent’s in the unaffordable category. This means that average income households are paying 30% of their income or more on rent.
The second least affordable capital city is Greater Adelaide, with a score of 113, surpassing Sydney, with a score of 119. Rents in both cities are considered moderately unaffordable.  
“Hobart is in the midst of a rental crisis, the worst in the country,” Witte, said. 
“The rents have been increasing by 10% per annum over the last three years. No matter how hard you work, you won’t be able to keep up with price rises like this. The market is failing and there is an urgent need for the government to intervene.
“There is a lack of new supply, while stock is being lost to the short-term holiday accommodation market. The rights of renters are weak, and the Tasmanian Residential Tenancy Act needs to be reviewed like Victoria has done.”
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