<a href="https://www.apartments.com.au/new-apartments/smith-by-valli-collingwood-224-228-smith-street-collingwood-vic-3066">Smith Collingwood</a> is a new boutique apartment development bringing a refined, design-led approach to one of Melbourne’s most established inner-city neighbourhoods.

Designed by <a href="https://www.apartments.com.au/architects/pandolfini-architects">Pandolfini Architects</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/lisa-buxton-interiors">Lisa Buxton</a>, Smith by Valli sits on iconic Smith Street and comprises just 22 residences tailored toward owner-occupiers seeking a more considered style of apartment living.

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The design of Smith focuses on a north-facing orientation across all residences, a relatively uncommon feature in dense inner-Melbourne settings. Each apartment has been planned to maximise natural light and outlook, alongside a material palette defined by warm tones, custom joinery, and a full suite of Gaggenau appliances.

The development comprises a mix of one, two, and three-bedroom apartments, with pricing currently ranging from just under $1 million to around $4.85 million for the premium penthouse-level residences, reflecting growing demand for luxury owner-occupier product in Melbourne’s inner urban market.

Residents will also have access to a private rooftop garden designed as an elevated retreat above the city, &nbsp;featuring curated landscaping, veggie boxes, intimate seating areas and spaces for relaxed gatherings. Sustainability has also been integrated into the project through a 7-star energy rating and two secure bicycle facilities for every residence.

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Smith by Valli sits in the heart of one of Melbourne’s most established retail and hospitality strips, within walking distance of venues such as Falco Bakery, Carnation Canteen and Alimentari, alongside parks and everyday services. With a Walk Score of 99, the location reinforces the project’s positioning toward buyers prioritising walkability and access over car dependency.

With only a limited number of residences, Smith reflects growing demand for smaller, highly curated apartment developments that prioritise design quality, liveability, and connection to neighbourhood character.

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Joel Robinson

Smith by Valli delivers a refined collection of luxury residences to Melbourne’s inner north

<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.

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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.

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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.

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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

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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Elbon Arcade, a commercial trophy asset in the heart of Double Bay, has been listed for sale.
The property at <a href="https://www.realcommercial.com.au/property-offices-nsw-double+bay-503331546" target="_blank">402 New South Head Road</a> comprises 10 commercial tenancies and currently brings in a net income of $385,000 per annum.
It is being offered for the first time in nearly four decades.
The likes of cafe Elbon Coffee, LA Spa and Nails and mens hair stylist Testarossa are among the tenants, as well as a number of office spaces. It is being offered fully leased.
Colliers International agents Matt Pontey, Miron Solomons and Nick Lumley have an October 17 auction.
They suggest the three level property on 256 sqm is ready to refurbish, redevelop or reposition. It has a 720 sqm gross building area.
 
 
 
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Elbon Arcade, the Double Bay trophy commercial property, listed for sale

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Sydney-based fund manager iProsperity and Singapore-based fund manager ZACD Group have announced the acquisition of a portfolio of 23 hotels in Australia from Luxembourg hotel investor, AccorInvest. 
The portfolio comprises 17 hotel properties which have been acquired for AUS $212.6 million.
 The transaction also incorporates six leasehold interests to be transferred subject to various conditions.
The transaction in terms of number of hotels is one of Australia’s largest hotel portfolio sales with 3,046 rooms and across Accor brands comprising MGallery, Novotel, Mercure, ibis and Ibis Budget. 
The hotels are located in Brisbane, Sydney, Melbourne, Canberra, Perth and regional New South Wales.
The transaction was brokered by Craig Collins and Peter Harper of JLL Hotels &amp; Hospitality Group.
iProsperity have been Australia’s most active hotel investor over the last four years.
ZACD are an integrated asset manager listed in Hong Kong and headquartered in Singapore, offering integrated solutions across the real estate value chain.
Co-Founder and CEO, Stanley Yeo commented, “We are delighted to be partnering with iProsperity on this geographically diverse hotel portfolio. We both hold a strong conviction as to the positive outlook for the Australian hospitality market and we see this portfolio as an excellent vehicle to build a meaningful presence in the Australian hotel market.”
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iProsperity and ZACD to acquire 23 AccorInvest hotels

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The former Bank of New South Wales in Kyneton has been listed for sale.
Marketed as one of the most iconic buildings in country Victoria, the landmark building in the Macedon Ranges north of Melbourne currently operates as a boutique hotel, as well as an associated lifestyle and home-wares store known as 'Mollisons'.
It was built in the early 1900's by notable architects Godfrey and Spowers with an asymmetrical red brick facade, steep gables, terra-cotta tiled roof, tall chimneys and distinctive Art Nouveau lettering.
Listed architecturally of State Importance, the 680 sqm building is an early example of the Edwardian Free Style.
Fully restored, the property has over 25 rooms comprising nine bedrooms, seven with ensuites, and a two bedroom apartment.
There are a number of living areas and courtyards, as well as a two large which would suit a cafe, store, wine bar or restaurant, according to Circa Hiertage and Lifestyle South Melbourne agent Dominic Romeo, who has a guide of $3.65 million to $3.95 million.
Kyneton and the surrounding region has a strong tourism sector and sees around 1.67 million visitors annually.
 
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Kyneton's former Bank of New South Wales listed for sale

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EXPERT OBSERVER
The claim that Australia has gone 28 years without a recession since the early 1990s recession ended in 1991 has been subject to some criticism in recent times with the economy sliding into a “per capita recession” where economic growth has been below population growth. Some have latched on to a recent Federal Reserve Bank of St Louis analysis that noted the 28 year claim should be “taken with a grain of salt” because “Australia has had three recessions since 1991 when looking at GDP per capita, the most recent one being from the second quarter of 2018 to the first quarter of 2019.”
GDP per capita
It’s true that Australia’s relatively strong population growth helps grow the economy. And in terms of living standards it’s GDP per person or per capita that really matters and the recent slowdown in GDP growth to 1.4% year on year which is below 1.6% population growth is a big concern. I even wrote a note after the release of the December quarter GDP data entitled “Australia enters a per capita recession”. But it does not measure up as a conventional recession.
Recession definitions The conventional definition of recession is two or more consecutive quarters of falling real GDP.
On this basis Australia’s last recession ended back in 1991, ie 28 years ago. However, if GDP per capita is looked at then Australia has had three per capita recessions since 1991 using the two or more consecutive quarters of decline approach – in the September and December quarters of 2000, the March and June quarters of 2006 and the September and December quarters of 2018. There was also a per capita recession in 1985-86.
However, while it may be reasonable to call them “per capita recessions” they don’t compare at all to the scale of the conventional recessions in 1981-83 and 1990-91 that saw far deeper and longer falls in GDP and per capita GDP.
But what about through the GFC? To be sure, Australian confidence had a recession-like fall through the global financial crisis (GFC) reflecting the dyer global news at the time and annual growth in GDP per capita fell, but there was only one quarter of contraction in both GDP and GDP per capita and there was no recession like slump in employment or rise in unemployment. What’s more the fall in per capita GDP at the time of the GFC was trivial compared to that in the US, Europe and Japan suggesting again that other things must have helped Australia beyond strong population growth
Wider definitions of recession
Nor would the per capita recessions of 1985-86, 2000, 2006 and 2018 comply with wider definitions of recession such as that of the US National Bureau of Economic Research that defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. For example, the next chart shows employment growth and unemployment since 1980 with per capita recessions shaded.
Only the per capita recessions of 1981-83 and 1990-91 which were also conventional recessions saw a significant slump in employment (both of around 4%) and sharp rises in unemployment (with both seeing around a 5 percentage point rise).
The other per capita recessions saw very little or no fall in employment and only small or no rises in unemployment. In fact, through the last per capita recession of 2006 jobs growth remained solid and unemployment fell, which makes a nonsense of calling it a recession particularly given it was in the midst of the mining boom! The recessions of the early 1980s and 1990s were horrendous events in terms of mass job losses, corporate collapses and financial failures. The per capita recessions of 2000, 2006 and more recently do not compare.
Which brings us to the smell test. For Australians like myself who lived through the early 1980s and early 1990s recessions it’s doubtful that they would recall the per capita recessions of 1985-86, 2000 or 2006 as real recessions.
Which is why they are often just referred to as slowdowns. The 2000 slowdown occurred because of the pull forward of spending due to the start up of the GST and also the end of the Olympics and the 2006 per capita recession can hardly be seen as a recession given it was in one of the biggest booms in Australian history, ie the mining boom. And a common question in relation to the recent episode is “things aren’t that bad, so why is the RBA cutting?” (The answer being that waiting for a real recession is likely leaving it too late.)
Consistent with this, consumer and business confidence was bouncing around average levels in 2000, 2006 and more recently in contrast to the slump of the early 1990s.
It’s not just strong population growth
While strong population growth helps grow the Australian economy as the Fed Reserve Bank of St Louis notes, it didn’t stop real recessions in 1981-83 and 1990-91. Going into the early 1980s recession population growth was 1.8% year on year and going into the early 1990s recession it was 1.5% year on year. So, if strong population growth didn’t stop conventional recessions in the past, other factors must have been playing a roll in heading off conventional recessions over the last 28 years.
These include:
1. economic reforms of the 1980s and 1990s that made the economy more flexible;  2. the floating of the $A that has seen it fall whenever there is a major economic problem providing a shock absorber for the economy; 3. desynchronised cycles across industry sectors and states; • strong growth in China that helped export demand through the GFC; 4. counter cyclical economic policy – like stimulus payments and monetary easing that helped in the GFC; and 5. good luck – which can never be ignored lest hubris set in!
But what about through the GFC?
To be sure, Australian confidence had a recession-like fall through the global financial crisis (GFC) reflecting the dyer global news at the time and annual growth in GDP per capita fell, but there was only one quarter of contraction in both GDP and GDP per capita and there was no recession like slump in employment or rise in unemployment. What’s more the fall in per capita GDP at the time of the GFC was trivial compared to that in the US, Europe and Japan suggesting again that other things must have helped Australia beyond strong population growth.
Concluding comment
The slowdown in Australian growth to below the level of population growth at a time of weak wages growth and high underemployment is a real concern and highlights the need to boost growth and productivity.
However, a per capita recession on its own is not the same as a real recession, and the three seen over the last 28 years do not compare to the recessions of the early 1980s and early 1990s in terms of their impact on jobs, economic welfare and confidence.
Which is why they are normally just referred to as growth slowdowns as opposed to being recessions. To be sure the risk of conventional recession in Australia has increased – although for the reasons noted here I think it remains unlikely. But there is clearly more to Australia’s 28 years without a conventional recession than just strong population growth.
Dr Shane Oliver Head of Investment Strategy and Chief Economist AMP Capital
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Has Australia really had three recessions in the last 28 years? Shane Oliver

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EXPERT OBSERVER
Canberra continues to show the solidity for which it is renowned, with most suburbs having recorded growth in their median house prices in the past year. While many city markets stumbled or stalled in the first half of 2019, Canberra retained its “steady as she goes” course and continues to deliver growth.
While the generalised data (one figure to describe an entire city) suggests little or no growth in Canberra prices, the more in-depth analysis conducted by Hotspotting tells a different story. Almost two-thirds of Canberra suburbs have recorded growth in their median house prices in the past 12 months.
The national capital is undoubtedly one of the steadiest markets in the nation – underpinned by the strongest real estate economy in capital city Australia. 
The ACT is consistently ranked No.3 or No.4 by CommSec in its quarterly State of the States report; as an economy it usually ranks ahead of all states/territories except Victoria and NSW. It ranks among the top two or three in CommSec’s latest report on housing finance, business investment, unemployment and retail trade.
The latest ABS data shows the ACT ranks second in the nation on population growth, close behind Victoria. Its unemployment rate is consistently the lowest in the nation. 
Its vacancy rate of 1.2% compares with the national average of 2.2%. Rents show consistent uplift and there is evidence of solid price growth in most parts of the Canberra market.
Long-term growth figures published by CoreLogic show Canberra house prices have increased 231% in the past 20 years, compared with 202% in Sydney and the national average of 197%.
Canberra is the Australian real estate embodiment of the “slow and steady wins the race” scenario.
Since the start of 2015, demand has been trending upwards in Canberra. It hasn’t been a dramatic rise and there have been a few minor ups and downs - but over four years the graph depicting demand in the market has trended north.
And the price data supports that. Our suburb-by-suburb analysis shows that 64% of suburbs have recorded increases in their median house prices in the past year: 19 suburbs have grown their median house prices by more than 5% and another 19 have grown by less than 5%. Only seven suburbs have decreased by more than 5%.
Price growth leaders include O’Connor (up 20% to $1,260,000), Calwell (up 14% to $630,000) and Duffy (14% to $730,000). Theodore ($580,000), Holder ($680,000), Latham ($595,000) and upmarket Yarralumla ($1,560,000) all have recorded annual growth of 12-13%.
In terms of sales activity, strong markets are found right across the ACT. As we often find, the strongest demand is in the northern suburbs: both the Belconnen and Gungahlin districts have multiple growth suburbs.
The Tuggeranong district is emerging steadily as a precinct with good growth markets. Suburbs with growing sales momentum include Calwell, Chisholm, Monash and Theodore – all of which have recorded median price growth above 5% in the past year.
The Inner North, Inner South and Woden Valley districts all have growth markets.
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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Canberra undoubtedly one of the steadiest property markets in Australia: Hotspotting's Terry Ryder

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EXPERT OBSERVER
It's like deja vu all over again! 
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<div>The historic ratio of household debt to disposable income was once again revised down, but the trajectory remained up. </div>
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<div>And in the end, we ended up back in the same old place, with an Aussie household debt ratio still at 1.9x disposable income. </div>
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<div>Note that the impact of tax and rate cuts has yet to flow through fully to these figures, so behavioural patterns could change going forward. </div>
 <div class="separator"><img src="https://1.bp.blogspot.com/-E1JICRVccs4/XY2p48YKbqI/AAAAAAAAx_E/iSC6SMuc62Yj4H-65nfDIT5IdyvUEI7mQCNcBGAsYHQ/s640/RBA1.jpg" width="640" height="378" data-original-height="808" data-original-width="1366"></div>
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<div>The 'record high' headlines will naturally follow in due course, although the ratio was ostensibly about 200 per cent a couple of years ago - before previous revisions were pushed through - and the growth in housing credit has since been crunched lower (to record lows for housing investors, at zero growth). </div>
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<div>The bulk of Australia's household debt remains concentrated in the upper two income quintiles, while net of a huge surge in prepayments the debt-to-income ratio is pretty much unchanged since 2006. </div>
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<div>Treasurer Frydenberg was also lightning quick off the mark to highlight that the value of assets was 5x that of the debt. </div>
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<div>Meanwhile the ratio of household interest payments to disposable income continued to fall and sow sits well under 9 per cent.</div>
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<div>This ratio is now some 33 per cent lower than at the 2008 peak, and trending lower (it was also higher in the late 1980s than it is today):</div>
 <div class="separator"><img src="https://1.bp.blogspot.com/-p9EkMGT4dH4/XY2p49HieWI/AAAAAAAAx_A/AJhLZqxNtjAwS6pUx5zeVs07A6IQAmC-ACNcBGAsYHQ/s640/RBA2.jpg" width="640" height="370" data-original-height="813" data-original-width="1404"></div>
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<div>Interest rates have since fallen further in the September quarter, so further declines are in the post.</div>
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<div>There has been some mortgage stress, even in spite of the household interest payments ratio being down by a third, mainly experienced in Western Australia and largely related to the forced interest-only mortgage reset. <div class="separator"><img src="https://1.bp.blogspot.com/-kzDI0RPnsOI/XY245qcXHRI/AAAAAAAAx_k/poT5fkvt4uYJppj8l-6cjZan2M6BGJG3wCNcBGAsYHQ/s640/sandp.jpg" width="640" height="360" data-original-height="803" data-original-width="1422"></div>
 That said, S&amp;P expects arrears to fall as repayments have become easier.  <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>
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Interest repayments continue to get easier: Pete Wargent

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The Brisbane CBD office market will benefit from continued growth in Queensland’s economy, according to the latest research from Knight Frank.
Their Brisbane CBD Office Market Overview found the underlying growth story of Brisbane and Queensland remains, with employment in the office-based sectors to show sustained growth, despite economic growth forecasts moderating due to global factors.
Knight Frank Partner Research and Consulting Queensland and report author Jennelle Wilson said, “forecast employment growth is expected to be a standout in 2019 with the Brisbane region to record 25,000-plus more jobs in the core office-based industries, according to Oxford Economics"
“While 2020 is expected to be lower, the coming five years will average 10,500 office based jobs per annum."
The Knight Frank findings showed tenant demand in the Brisbane CBD office market had remained steady with net absorption positive and vacancy decreasing to 11.9%, the lowest level in seven years, and down from 14.6% a year earlier.
Knight Frank Partner and Joint Head of Office Leasing Mark McCann said, the finance and insurance industry accounted for 26% of tenant activity over 2018 and 2019 due to the Suncorp pre-commitment to 80 Ann Street, followed by government and public administration at 22%, and resources and energy at 10%. 
“For the past 12 months both the CBD and fringe markets have recorded positive net absorption, ending the period of one market stealing tenants from the other," he said.
Supply additions in the market through late 2019 and early 2020,  will place a gap on further near-term vacancy falls, with vacancy expected to tick slightly upwards to reach 12.5% in January 2020.
From 2020 onwards the vacancy rate will resume a downward trend.
Ms Wilson said effective rental growth has continued in the Brisbane CBD office market, as vacancy has decreased and demand remains positive, with prime and secondary effective rents growing by 1.2% and 5.6% year-on-year respectively to July 2019.
“The majority of uplift is coming from face rents as incentive erosion has slowed. Tenants are motivated to relocate and upgrade where capital costs are mitigated.”
"Investment volumes in the Brisbane CBD office market are high, sitting at $2.86 billion over the year to September, roughly $1 billion higher than the corresponding period one year earlier ($1.82 billion)," she said.
While sales over 2018 were dominated by offshore buyers, there has been a noticeable decline in the level of direct transactions being undertaken by offshore buyers during 2019, according to the research.
The data shows the balance between domestic and offshore buyers has flipped in the 2019 calendar year to date, with offshore purchasing representing only 17% of transactions, compared with 73% in 2018. 
Yields in Brisbane’s CBD office market have continued to tighten, although the pace of contraction is reducing.
Mr McGrath noted, “Compressing by 23 basis points over the past year, Brisbane CBD yields are starting to move more in line with the Sydney and Melbourne CBDs.” 
“This comes after a period of accelerated yield compression as Brisbane was re-rated by investors," said Mr McGrath.
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Outlook positive for Brisbane's CBD office market: Knight Frank

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A $1 billion curvaceous skyscraper at 60 Martin Place - that leans over the historic interwar-era St Stephens Church - has been completed.
Investa Commercial Property Fund (ICPF) and the co-owner Gwynvill Group (Gwynvill) developed the site.
The building was designed by Hassel and contains more than 40,000 square metres  of net lettable area. 
Norton Rose Fulbright, Mizuho Financial Group, Munich Re, Banco Chambers and Spaces are among the core tenants. 
The building will also home to a rooftop garden, as well as the new Toppi Martin Place restaurant on the street corner. 
The building has reached 100% practical completion of all digital assets (71,848 in total) within the 33-level building and the creation of a 'digital twin', driven by Willow and the lead contractor Lendlease.
Rather than an analogue asset register compiled offline, Investa will utilise a digital twin of their asset, i.e. a 'single source of truth'.
This digital twin records and validates all aspects of the building’s equipment, warranty information, operation and maintenance information within an intuitive 3D environment to drive more efficient depreciation planning in operations. 
The digital completion of a building this scale is of great significance, Investa claim.  
It says that previously facilities management teams would have spent months developing this information from scratch, resulting in a sub-standard digital record post-completion.
According to ICPF's group executive and head of commercial development, Mark Tait, the building is currently 80% leased. 
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$1 billion curved skyscraper completed in Martin Place

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EXPERT OBSERVATION 
Comments by policy makers and global politics have given market participants many a point to consider.
For Australia, RBA Governor Lowe’s “Economic Update” speech in Armidale on Tuesday was the event of note. Overall, the speech had a cautious and concerned tone over the domestic and global economies respectively. Notably it was recognised that Australian growth has been weaker than anticipated, central to which is the stalling of growth in consumption per capita – highlighted by Governor Lowe as an “unusual outcome at a time when employment is growing strongly”.
While the RBA continues to expect a return to trend growth over the coming year, Governor Lowe added that “there are some obvious risks to this outlook”, and further that, while seeing the economy at a “gentle turning point”, “the strength and durability of this pick-up remains to be seen”. A key risk looking forward for consumption is that “the lift in wages growth looks to have stalled recently”. We would add that, as employment growth slows and participation and population growth remain historically high, the unemployment rate is set to lift, further hindering wages growth. 
On the world economy, concern over the impact of global uncertainties was evident, particularly for manufacturing and business investment. The risk that businesses might “also defer hiring” was emphasised too, as was the significance of central bank responses elsewhere in the world. 
On the latter, for the RBA, as a “small open economy, we have to take the world and global interest rates as we find them” and “if we did seek to ignore these shifts, our exchange rate would appreciate, which, in the current environment, would be unhelpful in terms of achieving both the inflation target and full employment”. 
<a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/40369" target="_blank">Westpac retains our call for an October RBA rate cut,</a> to be followed by another come February 2020. This will leave the cash rate at 0.50%. 
Turning to New Zealand, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/New_Zealand/2019/September_2019/OCR_Review_September_2019.pdf" target="_blank">the RBNZ met this week</a>. Their September decision was as expected, with the cash rate unchanged after August’s 50bp cut. However, a less dovish tone to their communications disappointed the market. Our New Zealand economics team continues to see a November cut as most probable, but there is a clear risk it does not eventuate. A November cut will require negative data surprises between now and then.
For the US, economic signals were mixed this week. New and pending home sales surprised to the upside in August. But home prices continued to decelerate in July, and Conference Board consumer sentiment began to wilt. Mixed messages were also provided by Federal Reserve officials, with Evans emphasising he believed the FOMC had done enough (to see inflation return to their 2.0%yr target) just as September dissenter Bullard continued to call for another 25bp cut by year end.
At this stage, it seems the Committee continues to place their faith in the spending power of the US consumer. <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/40382" target="_blank">We instead believe that GDP growth will slow</a> to and then below trend over the forecast horizon. This view is built on the weakness already evident in business investment feeding through to employment and hence consumption. While some ‘green shoots’ continue to be seen regarding trade, we are a long way from a deal and considerable damage has already been done to the US economy. This week’s developments in Washington regarding a formal impeachment inquiry against President Trump will create yet more uncertainty.
Finally to Europe, the most significant outcome was Germany’s flash manufacturing PMI falling to its lowest level since the GFC in September. German IFO business expectations also deteriorated further in the month, though the view on current conditions edged higher.
It is not surprising then that, in his last Parliamentary testimony before his term ends, ECB President Draghi emphasised that recent data points “do not show convincing signs of a rebound in growth in the near future and [that] the balance of risks to the growth outlook [therefore] remains tilted to the downside”. He went on to state that the “longer the weakness in manufacturing persists, the greater the risks that other sectors of the economy will be affected by the slowdown”.
Global central bankers have already taken decisive steps to ease policy this year. But, very clearly, there is a lot more to consider into year-end – let alone come 2020. 
ANDREW HANLAN is a senior economist for Westpac.
ELLIOT CLARKE is a senior economist at Westpac.
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There is much for Australian and global economic policy makers to consider: Westpac

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While housing sales activity slumped during the housing downturn, the recent trend shows turnover has levelled out as home values rise and mortgage rates reach the lowest level since the 1950’s.
Although the housing market appears to have moved through the bottom of a near two year downturn, sales activity remains well below normal levels.
Nationally, CoreLogic estimates that there were 367,630 settled sales over the twelve months ending August 2019; 17% lower year- on-year, and about 30% below the recent peak level of annual sales recorded over the twelve months ending September 2015.
<a href="https://www.propertyobserver.com.au/images/2019/9/26/corelogic%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/26/corelogic%201.jpg" alt="">
 
Source: CoreLogic 
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The good news is that home sales appear to be stabilising, albeit at a low base. 
The six month trend has found a floor at around the same lows recorded during the previous two downturns in 2008 and 2010-12. 
The six month trend has been tracking higher since June 2019, in line with a recovery in home values.
Such a large reduction in market activity has implications for the economy, especially from a consumption perspective. 
Reduced housing activity implies less spending on retail items such as home furnishings, white goods and appliances. 
With both values and volumes falling, state government stamp duty revenues have experienced a big hit, and of course we see real estate industry and finance sector participants receiving less income based on lower rates of sale and lower values.
<a href="https://www.propertyobserver.com.au/images/2019/9/26/corelogic%202.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/26/corelogic%202.jpg" alt="">
Source: CoreLogic 
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The drag on economic growth is compounded when housing values fall, as the wealth effect moves into reverse and households are less inclined to spend on discretionary items.
There isn’t a single trigger for the levelling in sales activity; in fact we can point to a variety of factors that have supported a turnaround in conditions.
A boost to confidence following the federal election, which removed a lot of the uncertainty around housing tax reform. Also, lower mortgage rates and policy changes from APRA which relaxed home loan servicing tests for borrowers were other likely factors driving the rebound in activity. 
Additionally there is the improvement in housing affordability driven by the 8.4% fall in housing values nationally.
<a href="https://www.propertyobserver.com.au/images/2019/9/26/corelogic%203.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/26/corelogic%203.jpg" alt="">
Source: CoreLogic 
Most of the capital cities have seen either a stabilisation in settled sales activity or a rise in the trend rate of sales. 
Housing turnover is rising the most sharply in Adelaide, with a more subtle improvement across Sydney, Melbourne and Canberra. 
The trend in sales has stabilised across Brisbane, Perth and Darwin but is still trending lower in Hobart.
The fact that housing values are now under some upwards pressure while housing turnover remains low presents somewhat of a paradox.
One explanation for the low rate of sales activity comes back to constraints around stock available for sale. 
Newly advertised stock levels remain about 15% lower than a year ago across Australia and total advertised stock levels are still 8% lower than a year ago and haven’t been this low for this time of the year since 2010.
As housing values continue to recover and the seasonal rise in listing numbers gathers pace we are likely to see sales activity also trend higher. Credit availability remains the wildcard in a material bounce back in turnover.
Although credit policies have become a little looser, gaining loan approval remains a challenge for many borrowers, despite the lowest mortgage rates since the 1950’s.
TIM LAWLESS heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
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