<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.

[smartcode_project:default project_id=140747 project_image_fid=367540]

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.

[smartcode_project:default project_id=140747 project_image_fid=367529]

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.

[smartcode_project_cta:default project_id=140747]

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.

[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]

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

<html><body>
GUEST OBSERVATION
In the weeks after the 2019 federal election, the Sydney Morning Herald <a href="https://www.smh.com.au/federal-election-2019/voter-turnout-at-record-low-after-young-people-disengage-20190530-p51sol" target="_blank">reported</a> that the turn-out of voters was the lowest since the introduction of compulsory voting in 1925.
It also reported there had been high rates of absenteeism of young voters who, while willing to participate in the recent marriage equality survey, had “turned their back on democracy” in the federal election.
The article continues a narrative about a decline in voter participation, which the federal parliamentary Joint Standing Committee on Electoral Matters (JSCEM) review of the the 2016 election <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Electoral_Matters/2016Election/2016_election_report/section?id=committees%2freportjnt%2f024085%2f26059" target="_blank">described</a> it as a “concerning trend”.
But it turns out the SMH report – which was based on the actual vote count undertaken by the Australian Electoral Commission – got it wrong, because it reported on the 2019 result before the count had been completed. In fact, voter participation in 2019 was actually 0.88% <a href="https://tallyroom.aec.gov.au/HouseTurnoutByState-24310.htm" target="_blank">higher</a> than in 2016.
Despite this, the national participation rate hasn’t returned to the 95% rate achieved in 2007. So what’s behind the apparent decline in civic duty?
Political disengagement is one factor, but data show that low turn-out also happens in seats with a high proportion of Indigenous people, and seats with a high proportion of renters.
<h2>Electorates with the lowest participation</h2>
Looking at the participation performance of individual federal electorates can show what might be happening.
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/TlxVN/1/" frameborder="0" width="100%" height="400"></iframe>
Among the litany of divisions with the lowest participation rates, two distinct electorate clusters emerge of what might be thought of as under-performing seats.
By far the most consistent under-performing seats are remote regional districts including Lingiari and Solomon (Northern Territory), Durack (Western Australia and previously known as Kalgoorlie) and Leichhardt (Queensland).
These are also the four federal seats with the highest proportion of voters who identify as Indigenous, according to the <a href="https://www.propertyobserver.com.au/https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/036" target="_blank">2016 Australian census</a>. In the case of Lingiari, 44.5% of residents identified as being Aboriginal or Torres Strait Islanders, 17.9% in Durack, 9% in Solomon and 6% in Leichhardt.
The next cluster of persistent under-performing seats are inner urban divisions whose residents are among the best educated and most affluent in the nation. This includes Sydney, Wentworth, Melbourne and Melbourne Ports (these days known as Macnamara).
They are also characterised by their comparative youthfulness. These are seats that have significantly larger proportions of citizens in the 19 to 39 year age groups than the national age distribution and, indeed, seats like Lingiari and Durack.
<a href="https://images.theconversation.com/files/286557/original/file-20190801-169676-ojlks.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/286557/original/file-20190801-169676-ojlks.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Based on data from the Australian Electoral Commission. Author provided
The relatively low turn-out rate and youthfulness of these inner urban electorates supports the argument that young people are enrolling, but not voting.
While this might be the case, it’s also true that the rate of participation in the inner urban cluster of seats is much stronger than for the remote rural cluster.
In short, lower election turn-out rates tend to be associated more with seats with comparatively higher proportions of Aboriginal and Torres Strait Islander voters than with youthful electoral districts.
This is an interesting aspect to electoral behaviour, especially when there is so much debate about how Aboriginal and Torres Strait Islanders could be given greater input to the political process by way of reforming the Australian constitution.
<h2>The role of renting</h2>
These two clusters of seats could not be more different from each other. And yet they do share a significant socioeconomic characteristic.
Both the inner urban and remote seat clusters are characterised by the comparatively large number of citizens with rented, rather than purchased, accommodation.
The 2016 census found that slightly more than 30% of Australians were renters. In contrast, 60% of residents in the seat of Sydney and 52.9% of residents in Lingiari were renting.
With renting comes the possibility of citizens changing their residential address and this, in turn, can make it difficult to maintain the electoral roll.
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/oOJ8N/1/" frameborder="0" width="100%" height="400"></iframe>
<h2>A political crisis?</h2>
Are these trends a sign of a political crisis, or are they simply “concerning” (to borrow from the <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Electoral_Matters/2016Election/2016_election_report/section?id=committees%2freportjnt%2f024085%2f26059" target="_blank">JSCEM report</a>)?
If the data indicates disengagement, it’s doing so at a fairly minimal rate. And at the last election, attendance rates improved compared with the previous election.
What’s more, the correlation of renters to under-performing electoral districts might even indicate that the problem is administrative rather than the product of civil disobedience.
Having said that, if the government feels the need to address the turn-out rate, they can use coercive powers to reinforce compulsory voting. This would involve imposing bigger fines for those who do not turn up to vote.
The existing legislation allows for a significant fine to apply (one penalty unit) when a voter hasn’t turned up. But the law as it currently stands does allow a wide range of excuses to permit a much less <a href="http://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/cea1918233/s245">onerous sanction</a> of a A$20 fine.
Were the parliament to be truly concerned about participation it could seek to alter the act and strengthen the hand of the AEC.<img src="https://counter.theconversation.com/content/120494/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Nick Economou, Senior Lecturer, School of Political and Social Inquiry, Monash University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/renters-hold-the-key-to-low-voter-turn-out-at-federal-elections-120494" target="_blank">original article</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Renters hold the key to low voter turn-out at federal elections

<html><body>
GUEST OBSERVATION
Coalition minister Angus Taylor is under scrutiny for possibly intervening in the clearing of grasslands in the southern highlands of New South Wales. Leaving aside the political dimensions, it’s worth asking: why do these grasslands matter?
The grasslands in much of eastern Australia are the result of forests and woodlands cleared to “improve” the landscape (from a grazier’s point of view) to make it suitable for grazing livestock.
The “improvement” typically entails cutting trees, burning the felled timber and uprooting tree stumps, followed by ploughing, fertilising and sowing introduced grasses that are more palatable to livestock than many native grasses.
However, largely treeless native grasslands once occurred at high elevations across much of the Monaro tableland, in the area stretching between Canberra and Bombala.
The Monaro grasslands (or in scientific speak, the <a href="http://www.environment.gov.au/biodiversity/threatened/conservation-advices/natural-temperate-grassland-southern-tablelands" target="_blank">natural temperate grassland of the Southern Tablelands</a>) are in relatively dry and cold areas, particularly in upland valleys or frost hollows where cold air descends at night.
The combination of dry climate and cold restricts tree growth and instead has encouraged grasses and herbs. Native grasses such as kangaroo grass and poa tussock dominate the grasslands, but there are many other unique plants. A typical undisturbed grassland area will support 10-20 species of native grasses and 40 or more non-grass species.
The grassy plains are also home to unique cold-adapted reptiles such as the grass-land earless dragon, little whip snake, pink-tailed worm lizard and striped legless lizards. This combination of plants and animals create a unique ecological community.
<a href="https://images.theconversation.com/files/286192/original/file-20190730-43136-1v4usvm.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/286192/original/file-20190730-43136-1v4usvm.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Striped legless lizards may resemble a snake, but most of its body is actually tail. It has vestigial limbs and a non-forked tongue. Benjamint444/Wikipedia, <a href="http://creativecommons.org/licenses/by-nc-sa/4.0/" target="_blank">CC BY-NC-SA</a>
A fraction remain
It is estimated <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/j.1442-8903.2007.00363" target="_blank">only 0.5%</a> of the area that would once have been natural temperate grasslands in the Southern Tablelands remains. The rest has been gradually “improved” <a href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/work/11035501?selectedversion=NBD25432907" target="_blank">since the mid-nineteenth century</a> to make them more productive for livestock grazing.
Livestock dramatically change the composition of grasslands, as animals remove palatable plants and compact the soil under their weight. Disturbed soil and the livestock also help to <a href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/work/11035501?selectedversion=NBD25432907">spread non-native weeds</a>.
However, most native grasslands have not just been modified by grazing but completely replaced by man-made pastures. That is, the land has been ploughed, fertilised and the seeds of introduced grasses have been planted.
These changes to the landscape mean much of the landscape is dominated by introduced plants and is now unsuitable for many of the native plants and animals that once lived and grew there.
Because the Natural Temperate Grassland of the Southern Tablelands is now so rare it is <a href="https://www.environment.nsw.gov.au/threatenedSpeciesApp/profile.aspx?id=20260" target="_blank">classified as critically endangered and federally protected</a>. Furthermore, many of the <a href="http://www.environment.gov.au/biodiversity/threatened/conservation-advices/natural-temperate-grassland-southern-tablelands" target="_blank">distinct plants and animals</a> that still live in these grasslands are classified as vulnerable or endangered.
<a href="https://images.theconversation.com/files/286193/original/file-20190730-186833-i4fw9q.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/286193/original/file-20190730-186833-i4fw9q.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
The pink-tailed worm lizard is one of the rare species living in the native grasslands of the Southern Tablelands. <a href="https://commons.wikimedia.org/wiki/File:Pink-tailed_Worm-lizard_(Aprasia_parapulchella)_(9106371285).jpg" target="_blank">Matt Clancy/Wikimedia Commons</a>, <a href="http://creativecommons.org/licenses/by-sa/4.0/" target="_blank">CC BY-SA</a>
Some of the best remaining examples of the Monaro grasslands can be found in old cemeteries and in areas set aside as public livestock grazing areas. These areas of public land have often been spared from pasture improvement or only lightly grazed, and thus now support relatively intact native grassland ecosystems.
While, to the untrained eye the Monaro grasslands may seem unremarkable and difficult to distinguish from grazing pastures, they are deeply important. They show us what Australia once looked like, and act as a haven for native biodiversity.
Indeed, what remains of the natural grasslands is now so disturbed by agriculture there is a real threat this distinctive ecological community and many of the species it contains may disappear altogether, if they are not protected from excessive grazing, fertilisers and the plough.<img src="https://counter.theconversation.com/content/121181/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Mike Letnic, Professor, Centre for Ecosystem Science, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-are-native-grasslands-and-why-do-they-matter-121181" target="_blank">original article</a>.
</body></html>

What are native grasslands, and why do they matter?

<html><body>
GUEST OBSERVATION
As the dramatic shutdown of major recycling company SKM this week has illustrated, recycling is not free.
Householders in Australia pay council rates for a recycling and garbage service. This fee is largely based on the costs of collecting, sorting and processing, and – importantly – what returns are likely from selling the end product.
However, since 2017 the price on the open market for mixed plastics has <a href="https://www.sustainability.vic.gov.au/Business/Investment-facilitation/Recovered-resources-market-bulletin" target="_blank">plummeted</a> from about A$325 per tonne to A$100 per tonne. Mixed glass actually dropped to a negative value, which meant that generators were potentially paying for it to be taken away.
On the other hand, prices for high-quality recycling (not mixed materials or items contaminated with food, for example) largely remained the same or <a href="https://www.sustainability.vic.gov.au/Business/Investment-facilitation/Recovered-resources-market-bulletin" target="_blank">slightly increased</a>.
This shows the market for low-quality, poorly sorted recycling, which Australia has <a href="https://theconversation.com/heres-what-happens-to-our-plastic-recycling-when-it-goes-offshore-110356" target="_blank">previously</a> offloaded to China and other Southeast Asian countries, is ending.
Unless we improve our recycling industry, we must start sending more recyclable material to landfill – as is <a href="https://www.standard.net.au/story/6301694/recycling-in-landfill-following-processor-shutdown-council-confirms/" target="_blank">happening now in some Victoria councils</a>.
So what can we do about it?
Reduce first
Reduction, fundamentally, comes before recycling. We <a href="https://theconversation.com/we-cant-recycle-our-way-to-zero-waste-78598" target="_blank">need to avoid waste to begin with</a>, in our homes and businesses.
As consumers, we should be vocal about seemingly contradictory practices by businesses. For example, supermarkets congratulate themselves on reducing plastic bags, but then use small plastic toys as marketing tools – not even making them out of recycled plastic. These toys are destined for disposal, potentially contaminating recycling streams, and <a href="https://www.sbs.com.au/news/coles-and-woolworths-in-plastic-toy-promo-wars" target="_blank">not all consumers are happy</a>.
Throw out recycling properly
It’s tempting, if you don’t know whether something is recyclable, to simply put it in the yellow bin and assume someone on the other end will “sort it out”. But in reality, incorrectly recycled material can contaminate entire loads of otherwise valuable and useful recyclables, diverting it to landfill.
Councils blame the recyclers for this, who blame the councils. Everyone blames state governments, and they in turn blame the recyclers.
Fundamentally though, we as the generators of waste must assume a high degree of responsibility. We are the ones putting contaminants into the recycling system that everyone else in the management structure must deal with.
It’s our job to familiarise ourselves with what can and cannot be recycled – although, to be fair, this can vary widely from council to council, and should be made easier to check.
If we can clean up the recycling streams, markets should increase and prices for these commodities will similarly rise. This encourages those in the sector to <a href="https://theconversation.com/australian-recycling-plants-have-no-incentive-to-improve-81336" target="_blank">improve their plant technology</a>, and for others to enter in what would then be a more competitive market.
Develop the industry
Clean recycling still requires an established market to be profitable. Governments, as the single largest purchasers in Australia, can play an important role here.
The Victorian government has already <a href="https://www.governmentnews.com.au/victorian-government-moves-on-green-procurement/" target="_blank">committed</a> to helping government agencies increase recycled content in their purchasing requirements. Other governments are doing <a href="https://www.governmentnews.com.au/governments-should-buy-recycled-material-inquiry/" target="_blank">likewise</a> and this is a very positive step.
At a minimum, contracts and tenders should specify a certain level of recycled materials used in products sold to the government, or prefer those suppliers who do have recycled content.
One innovative approach where governments can use their purchasing power is with the use of plastic and glass recyclables in roads. Trials have been extremely positive.
In fact, the Australian Council of Recycling has <a href="https://www.sbs.com.au/yourlanguage/italian/en/article/2019/05/09/call-government-use-recycled-content-build-infrastructure" target="_blank">suggested</a> that using recycled material in construction for the Snowy 2.0 scheme would consume all the recyclables generated in Australia.
We need to chew and walk gum
The most important message is, just as there’s no single person or sector to blame for Australia’s dismal recycling situation, there’s no single solution. We all need to take more care with what we put in the bin. Governments around Australia should incentivise local manufacturers to use domestic recycling.
Recycling companies should certainly improve their technology so they can produce higher-quality material, which can be sold at a profit.
And, as the current SKM debacle illustrates, governments need a plan B when the market breaks down.
Even with all of this, a sustainable domestic recycling industry is some way off. We urgently need to start doing the things we already know will work, rather than playing endless rounds of a pointless blame game.<img src="https://counter.theconversation.com/content/121241/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Trevor Thornton, Lecturer, School of Life and Environmental Sciences, Deakin University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/dont-just-blame-government-and-business-for-the-recycling-crisis-it-begins-with-us-121241" target="_blank">original article</a>.
</body></html>

Don’t just blame government and business for the recycling crisis – it begins with us

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">EXPERT OBSERVATION</div>
<div class="column"> </div>
<div class="column">The CPI was 0.6% in the June quarter compared to the market median (and Westpac’s) forecast for 0.5%. The annual rate lifted to 1.6% from 1.3%.</div>
<div class="column"> </div>
<div class="column">The average of the core measures, which are seasonally adjusted and exclude extreme moves, rose 0.4% in the June quarter/1.4% over the year. In the quarter, the trimmed mean gained 0.42% while the weighted median lifted 0.37%.</div>
<div class="column">
 Incorporating revisions, the six month annualised growth in core inflation was flat at 1.3% over the year well below the bottom of the RBA target band and the slowest pace since March 1999.</div>
<div class="column">
 Standouts in the quarter were: on the positive or high side of expectations, clothing &amp; footwear which suggests we are starting see some impact from the AUD depreciation, stronger transports cost which was not just due to a jump in fuel prices but also a surprising 1.4% bump in automotive prices while the seasonal fall in pharmaceuticals was smaller than the historical norm.</div>
<div class="column"> </div>
<div class="column">
<a href="https://www.propertyobserver.com.au/images/2019/8/1/CPI.jpg" target="_blank">Click here</a> to enlarge: </div>
<div class="column"><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/2019/8/1/CPI.jpg" alt=""></div>
<div class="column">Source: Westpac</div>
<div class="column">
 Prices that fell or where on the low side of expectations – tobacco prices surprised with a fall, housing was flat on falling house purchases and utilities, household contents fell more than expected while health rose less than expected and recreation fell more than expected.</div>
<div class="column">
 Food prices fell as expected, with falling fruit &amp; vegetable prices more than offsetting rising prices elsewhere. For now, the impact of the drought has been limited but we are watching this space closely as it extends in length and depth.</div>
<div class="column">
 It is worth noting the lack of inflationary pulse in housing. Overall housing costs fell a little more than expected as falling dwelling prices combined with falling electricity prices and flat rents. This moderation in housing costs is central to our outlook for low non- tradable and core inflation.</div>
<div class="column">
 In nine of the ten quarters to the 2019 Q1, inflation forecasters overestimated the quarterly rise in the CPI by 0.12ppts. Including Q2 analysts’ have now underestimated the quarterly print for the CPI in two quarters of the last three quarters. This suggests that the disinflationary pulse may be fading, if not coming to an end.</div>
<div class="column"> </div>
<div class="column">
<a href="https://www.propertyobserver.com.au/images/2019/8/1/CPI%202.jpg" target="_blank">Click here</a> to enlarge:</div>
<div class="column"><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/2019/8/1/CPI%202.jpg" alt=""></div>
<div class="column">Source: Westpac</div>
<div class="column">
 There are still some embryonic indicators that retail, in particularly clothing &amp; footwear, furniture &amp; appliances as well as motor vehicles, are turning modestly inflationary due to the AUD depreciation.</div>
<div class="column">
 However, housing has a significant weight in the CPI (22%) so it has a meaningful impact on both headline and core inflation. As such, it is hard to find any near- term risk of a meaningful acceleration in inflation.</div>
<div class="column">
 Our preliminary estimate for Q3 CPI is 0.4% in the quarter/1.6% over the year for headline and 0.3% in the quarter/1.5% over the year for the trimmed mean.</div>
<div class="column">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
Waiting for Godot has ended its long run
In the December quarter 2018, for the first time in two year the quarterly rise in the CPI exceeded market expectations. However, the first quarter of 2019 saw a return of a disinflationary pulse with the CPI print coming in under expectations with a flat print. 
Then it was reversed again in the June quarter with the CPI rising 0.6% vs. a median expectation for 0.5%.
 Including Q2 analysts’ have now underestimated the quarterly print for the CPI in two quarters of the last three quarters. This suggests that the disinflationary pulse may be fading, if not coming to an end.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/contributions.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/2019/8/1/contributions.jpg" alt="">
 
ABS confirms June quarter negative seasonality
As noted in our preview the June quarter 2019 was expected to be a seasonally soft quarter. 
However, on the estimates from the March quarter the estimated seasonal adjustment was +0.2ppt. 
In the June quarter release the seasonally adjusted CPI rose 0.7% so the seasonal adjustment factor was a smaller 0.1ppt. 
Revisions to the seasonal factors are a regular occurrence with the ABS conducting concurrent seasonal reanalysis.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/seasonality.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/2019/8/1/seasonality.jpg" alt="">
For core inflation, the trimmed mean lifted 0.4% in the quarter
The average of the core measures, which are seasonally adjusted and exclude extreme moves, rose 0.4% in the June quarter. 
In the quarter, the trimmed mean gained 0.28%/1.6%yr while the weighted median lifted 0.37%/1.2%yr. 
The annual pace of the average of the core measures printed 1.4%, a very modest deceleration from the 1.5% pace in the March quarter.
Incorporating revisions, the six month annualised growth in core inflation was flat at 1.2% over the year, holding well below the bottom of the RBA target band and the slowest pace of core inflation since March 1999.
For a broader core inflation measure, more in line with some international measures, market sector goods and services excluding volatile items rose 0.5% in the quarter with the annual pace lifting to 1.8% from 1.6%.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/core%20inflation.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/2019/8/1/core%20inflation.jpg" alt="">
We are yet to see the full inflationary impact of the drought
Food prices came as expected at 0.4% decline. Fruit &amp; vegetables fell slightly more than expected (2.8% vs 2.1%). 
Alcohol &amp; tobacco was slightly stronger (1.1% vs. 1.0%) with tobacco having a robust 2.4% rise following a surprising 0.7% in Q1.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/durables.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/2019/8/1/durables.jpg" alt="">
 
A surprising bump up in car prices
Transportation rose 3.4% vs. 2.9% expected as car prices lifted 1.4% vs. our expectation for a 1.0% fall. 
Car prices are now up 3.4%yr, the fastest pace of growth since June 2020 and another sector we would expect to see the impact of the weaker AUD. 
However, the rise in car prices is more than what you would expect given the weakness of the AUD in either TWI terms or against the Japanese Yen.
Clothing has a larger than expected bump highlighting AUD pass-through...
Clothing &amp; footwear was stronger than expected rising 1.6% vs. our 0.5% expected. We are now seeing some pass through of the weaker AUD but the impact has not been uniform across this sector. 
Male garments are up 4.8% over the year while garments for women are down 0.2%. Footwear is down 1.1% over the year while accessories are down 1.0%.
...as does the rise in household contents &amp; services.
An area where the downside pressure on prices has been significant was household contents &amp; services. 
In the June quarter they rose 0.7% vs. our expectation for a 0.5%. There has been a turnaround in the trade exposed components with furniture prices up 2.8% over the year and household appliances up 5.1%.
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
However, it is not all one way with textiles down 0.5% over the year and glassware down 4.1%. All up household furnishings are down just 0.4%, the softest deflationary pace since March 2018.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/inflaction%20pressure.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/2019/8/1/inflaction%20pressure.jpg" alt="">
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
Housing reveals signs of the housing correction in Vic and Qld, not so strong in NSW
The slightly softer than expected housing print reflected the fall in dwelling prices (0.2% vs. our forecast for a flat print – this reflected a further fall in Victorian dwelling prices of 0.4% in the quarter,  a larger 0.6% fall in Brisbane and a more modest 0.1% fall in NSW).
Rents were flat as expected while utilities fell more than expected (1.0% vs. 0.4% forecast) due to a 1.7% fall in electricity prices.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/dwelling.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/2019/8/1/dwelling.jpg" alt="">
There remains a significant near term negative risk around dwelling purchases prices in NSW.
 Prices are already falling in Victoria while rents have flattened in NSW. Given that rents and dwelling purchases together are worth around 15% of the CPI, this is a significant risk for headline inflation, and even more so for the core measures where the weight is somewhat higher.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/narrow%20turnaround.png" target="_blank">Click here</a> to enlarge:
<img src="https://www.urban.com.au/images/2019/8/1/narrow%20turnaround.png" alt="">
Tradables stronger while non-tradables had a modest rise
Tradables rose 1.2% in the June quarter. Tradable goods rose 1.2% due to automotive fuel (10.2%). Tradable services rose 2.5% due to international holiday, travel and accommodation (2.7%).
Non-tradables rose 0.2% in the June quarter. Non-tradable goods rose 0.2% due to tobacco (2.4%). Non-tradable services rose 0.3% due to medical and hospital services (2.6%).
Looking forward inflation holds below the band
There are signs that we are getting some AUD deprecation pass-through to inflation in clothing &amp; footwear (for some selected groups) and in automotive vehicles. But it is harder to find any broader impact or wider inflationary pulse.
As housing has a significant group weighting in the CPI (22%) it has a meaningful impact on estimates of both headline and core inflation. As such, with core inflation below the bottom of the RBA’s target band we can find little to suggest any risk of a meaningful acceleration.
With crude oil prices easing there has been a turnaround in fuel prices which are expected to be a drag in Q3. Our preliminary estimate for the June quarter 2019 CPI is 0.4% which would see the annual pace steady at 1.6%.
Our preliminary estimate for the trimmed mean in the September quarter CPI is 0.3% seeing the annual pace ease a touch to 1.5%.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/inflaction%202.jpg" target="_blank">Click here</a> to enlarge: 
</div>
</div>
</div>
</div>
<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/2019/8/1/inflaction%202.jpg" alt=""> 
Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Q2 CPI: Some AUD pass-through but housing is the anchor on inflation - Justin Smirk

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
EXPERT OBSERVATION
Australian shares back to their 2007 high...at last!
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
After nearly 12 years the Australian share market is above its November 2007 pre-Global Financial Crisis (GFC) high. 
The All Ords index surpassed it last week and the ASX 200 has done so this week. 
Basically, the Australian share market is looking through short-term uncertainties around the economy and focussing on lower interest rates and bond yields making shares relatively cheap, the likelihood that policy stimulus will ultimately boost growth, high iron ore prices boosting mining companies and a positive global lead. 
But why has it taken so long? Is the break out sustainable? And is the relative underperformance of Australian versus global shares over?
Why has it taken so long?
12 years is a long time to make a new high. US shares made it back to their 2007 high in 2013 and global shares did so in 2014. 
See the next chart. Since the March 2009 GFC low, Australian shares are up 118%, versus a 222% gain in global shares in local currency terms and a 347% gain in US shares.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%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/2019/8/1/share%20market%201.jpg" alt="">
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
So why has the Australian share market underperformed global shares since the GFC such that it’s taken far longer to regain its 2007 high? There are basically five reasons:
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
• Payback for its huge outperformance last decade –Australian shares go through periods of relative out performance and underperformance versus global shares. 
This can be seen in the next chart that shows the value of Australian shares relative to global shares. After underperforming global shares through the 1990s tech boom during which Australia was seen as “old economy” itcame roaring back during the resources boom last decade resulting in a huge outperformance. 
This is also evident in the previous chart – whereas global and US shares just made it back to their 2000 tech boom high by 2007 Australian shares more than doubled in value. 
This meant that the 2007 high for Australian shares was a much higher high than for global shares which really just spun their wheels last decade. 
So, the poor relative performance of Australian shares this decade is payback for their huge outperformance last decade. So, it’s naturally taken longer for Australian shares to get back to their pre-GFC high.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%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/2019/8/1/share%20market%202.jpg" alt="">
</div>
</div>
</div>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
• Tighter monetary policy for much of the post GFC period –whereas the US, Europe and Japan had near zero interest rates and quantitative easing, Australia has had much higher interest rates (until just recently) and no money printing.
 In fact, the relative underperformance really started in October 2009 when the RBA started to raise interest rates post GFC which was not followed by other major developed countries. See the previous chart.
• The surge in the $A to $US1.10 in 2011 – this reduced the competitiveness of Australian companies from which the damage can take a long time to reverse even though the $A has fallen to around $US0.70 in the last four years.
• The slump in commodity prices from 2011 – this weighed heavily on resources shares into 2006. US, European and Japanese shares have a lower exposure to resources.
• Property crash phobia – foreign investor fear of a crash inAustralia’s relatively expensive housing market has been a constant theme. Therefore, many stayed away.
</div>
</div>
</div>
Are high dividends holding Australian shares back?
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
An often heard view is that Australian companies are not investing because shareholders are demanding high dividends, and this is causing poor earnings growth and share market returns. This is unlikely. 
The dividend payout ratio (ie dividends relative to earnings) is in line with its historic norm. And it’smainly resources stocks that have boosted payouts since the GFC – but it’s been hard to argue they should ramp up investment so soon after the mining investment boom.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%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/2019/8/1/share%20market%203.jpg" alt="">
</div>
</div>
</div>
</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
The real reasons for the lack of investment by non-mining companies are likely to be post-GFC caution, wariness after getting smashed through the mining boom by the high $A, spare capacity &amp; competitive pressures, uncertainty about demand and too-high investment hurdle rates.
More fundamentally, Australia’s high dividend payouts arehealthy from a long-term perspective: high dividend payouts mean less risk of poor investment decisions from retained earnings, they are indicative of corporate confidence about future earnings and they indicate earnings are real.
2007 high was reached in 2013 with dividends
In fact, because Australian shares pay relatively high dividend yields (around 4.1%) compared to global shares (2.5%) they should be included in comparisons of Australian with global share market returns. 
Once dividends are allowed for (ie looking at the accumulation index, or total returns) the Australian share market surpassed its 2007 high in 2013.
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%204.j">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/2019/8/1/share%20market%204.jpg" alt="">
</div>
</div>
</div>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
The next chart compares the relative performance of Australian to global shares since 1970 in terms of: relative share price performance in local currency terms (green line); relative total returns ie with dividends added in (blue line); and relative total returns with global shares in Australian dollars (red line). 
A rising ratio means Australian outperformance and vice versa. Several things stand out. First over long periods of time and when dividends are allowed for Australian shares have had better returns than global shares. 
Since 1970 Australian shares have returned (capital growth plus dividends) 10.4% per annum compared to 8.3% pa for global shares in local currency terms. 
The falling $A over this period has enhanced the return from global shares to 9.9% pa but they still slightly underperformed Australian shares.
Second, the swings in the relative performance of Australian shares are apparent if dividends and currency movements are allowed for or not - in particular in the big outperformance last decade and underperformance this decade.
Since October 2009 Australian shares have returned 8.4% pa compared to 10.4% pa from global shares in local currencies or 12.5% in Australian dollar terms (as the $A fell).
<a href="https://www.propertyobserver.com.au/images/2019/8/1/share%20market%205.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/2019/8/1/share%20market%205.jpg" alt="">
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
What’s the outlook?
Is the break out by the All Ords and ASX 200 to new highs sustainable? Going through past bull market highs after a long period below can attract investors into the market so it could push on for a bit. 
But after such a huge run – the market is now up 21% year to date – its vulnerable to a short-term correction: we are coming into a seasonally weak part of the year; the August earnings reporting season could result in volatility; and there are various risks in relation to trade wars, tensions with Iran and soft economic data. 
However, the combination of low bond yields which means that the share market is comparatively cheap, monetary easing by the RBA and other central banks and a likely pick up in global growth by year end and Australian growth next year point to even higher share prices on a six to 12 month horizon.
In terms of the Australian share market’s valuation, its price to 12 month ahead consensus earnings multiple of 16.5 times is above its long-term average, but shares are known to trade on higher PEs when inflation and interest rates are low. 
In fact, the gap between the forward earnings yield of 6.1% and the 10 year bond yield of just 1.2% is well above average making shares relatively cheap.
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
Is the secular underperformance of Australian shares versus global shares over? So far this year Australian shares have outperformed global shares and the various comparisons in the last chart have hooked higher. 
Several of the factors that drove the relative underperformance this decade are fading:
<ul>
<li>
Much of last decade’s outperformance has been reversed. Payback has happened albeit it could still go further.
</li>
<li>
The RBA is easing more aggressively.
</li>
<li>
The surge in the $A to $US1.10 of 2011 has reversed making Australian companies more competitive.
</li>
<li>
The commodity price slump from their 2008-2011 highs (depending on the commodity) looks to be over.
</li>
</ul>
Finally, the risks of a property crash dragging banks and the economy into recession may be receding.
The Australian dollar is still likely to fall a bit and it makes sense to maintain a decent exposure to global shares for portfolio diversification reasons. But with many of the negatives for the Australian share market fading it’s hard to maintain a strong case against it versus global shares.
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
Key points
<ul>
<li>
The long time taken for Australian shares to regain their 2007 high and their underperformance compared to global shares this decade reflects a combination of payback after their strong performance last decade, tighter monetary policy, the strong $A into 2011, the slump in commodity prices and property crash phobia.
</li>
<li>
High dividend payouts are not to blame.
</li>
<li>
While the Australian share market is at risk of a short-term pull back it’s likely to be higher on a 6-12 month horizon and its period of relative underperformance compared to global shares is likely at or close to an end.
</li>
</ul>
</div>
</div>
</div>
</div>
</div>
</div>
DR SHANE OLIVER is the Head of Investment Strategy and Chief Economist at AMP Capital.
</div>
</div>
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
 
</div>
</div>
</div></body></html>

soliver-smf6LQXgW9

Australian shares hit record highs - is the decade long underperformance versus global shares over? Shane Oliver

<html><body>
Bundaleer Retreat, a Broken Head property located just 10 minutes south of Byron Bay on the Coast Road has hit the market with $2.75 million to $2.95 million hopes.
Sam Tancred of Byron Bay Property Sales has the listing.
Situated over five and a half hectares, the property at 1 Bundaleer Road comprises a main residence or manager's quarters, five private cabins, a large shed or workshop, covered BBQ area and 17 metre resort style pool with waterfall.
<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/2019/7/29/broken%20head%201.jpg" alt="">
The main residence comes with three large bedrooms, two separate living areas, well-equipped kitchen and covered deck.
Four of the cabins are open plan with a queen bed and single bed.
The fifth cabin features a separate bedroom and two single beds. 
<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/2019/7/29/broken%20head%203.jpg" alt="">
All cabins are fully self-contained and include a timber deck.
There are council approved plans for an additional five bungalows.  
</body></html>

Bundaleer Retreat at Broken Head listed with $2.95 million hopes

<html><body>
The Canberra industrial market had been stable prior to the election in May 2019, however there are glimpses of increased activity which suggest the start of a recovery cycle, according to the latest report from Herron Todd White (HTW).
The property valuation firm found commercial agents are reporting increased activity on the back of a stabilising residential market and improved consumer confidence.
The ACT government’s Four Year Indicative Industrial Land Release Program is based on the current level of demand for industrial land.
The program is intended to achieve a number of objectives, but in essence it is to increase the ACT government’s responsiveness to market changes by developing an inventory of land stock, where serviced industrial sites are available for immediate release.
Land will be available across new estates in Symonston (2020-21), Fyshwick and Majura Valley (Pialigo, 2021-22) as well as Hume.
The program aims to release 110,000 square metres over the next four years.
"Queanbeyan continues to provide a desirable option for owner-occupiers in the market, as increasing municipal rates in the ACT continue to discourage activity," the report said. 
"A Legislative Assembly committee is currently conducting a formal inquiry into the commercial rating system and has made numerous recommendations; the long-term effects from this are yet to be determined.
"Investors and owner occupiers are currently attracted to the small scale industrial market, particularly for superannuation purposes and also to have an asset that has potentially appreciating value and the ability to provide collateral for borrowing power.
"The outlook for the remainder of 2019 is for much of the same, namely growth and increasing activity on the back of a stable residential market and political climate.
"Industrial leasing demand is improving, however rents remain stable generally with a continued need for incentives.
"Further proposed rate cuts will have an impact on the market in the long term and some rental growth may be observed when tenant demand levels increase and sales activity begins to soften.
"The outlook for the Canberra and Queanbeyan industrial market is for increasing take-up levels over the next 12 months."
</body></html>

Glimpse of recovery in Canberra's industrial property market: HTW Industrial

<html><body>
The industrial property market across South Australia is expected to continue its recovery throughout 2019 as the market continues to be sustained by government investment in both the healthcare and renewable energy industries, according to the latest report from Herron Todd White (HTW).
The property valuation firm found investor sentiment has recently shifted from the retail to the industrial sector, mainly due to slowing trade growth within specific retail markets as retailers continue the fight against online shopping.
In contrast, warehousing and manufacturing benefits from the increase in online shopping, as companies require more warehousing space to facilitate the transport, manufacture and storage of goods.
Investors and major real estate investment trusts are looking to industrial property, as retail sectors such as department stores and clothing outlets recorded negative retail trade growth through the latter part of 2018 and early 2019.
HTW's property valuation experts stated: "Within the South Australian market, property remains tightly held in the sought-after northwest and inner-west industrial precincts.
"Limited sales of industrial properties occurred in these areas over the first half of 2019, making it hard for investors and owner-occupiers to enter the market.
"The majority of current industrial investment opportunities are available in outer suburbs such as Lonsdale and Edinburgh, which are 26 kilometres south and 35 kilometres north of the CBD respectively.
"Property remains tightly held in the north and western industrial sectors, with 14 sales of industrial use land in the first half of 2019 according to current sales data.
"The current low interest rate environment and recent cut in rates has resulted in further compression in property rents and yields."
Premium industrial space across the nation is currently fetching yields of 6.5%, while secondary space is generating yields of roughly 7.5%.
The Adelaide market is slightly better, with premium space measuring yields of 8% and secondary space nine%.
There has been no significant change in these figures since HTW's previous update in April.
Looking to affordable investments within the Adelaide industrial market, current offerings remain scarce amidst the shortage of recently completed industrial developments.
"Entry level stand-alone sheds within the north and innernorth industrial precinct are roughly $320,000 to $350,000, which would net the owner 305 square metres of industrial floor space in the northern suburb of Edinburgh and 180 square metres in the inner-northern suburb of Wingfield.
"Similarly, industrial investors can acquire a warehouse in the southern suburb of Lonsdale for $335,000.
"For the investor looking to enter the more popular west or inner-west industrial precincts, a warehouse and office in Marleston is currently on the market for $575,000.
"An industrial investor however can acquire a unit or a shed in these areas for almost half the price; sheds in Lonsdale are on the market for $175,000 for around 140 square metres of space, while a higher quality and larger unit (175 square metres) in the northern suburb of Mawson Lakes would set the purchaser back $275,000."
There have been no major shifts in industrial rents throughout the first half of 2019
Net rental levels for premium industrial space in the north are currently between $60 and $90 per square metre, $70 to $110 in the inner-north, $90 to $140 in the inner-west precinct and $60 to $80 in the south.
Slight upward pressure on rental growth is forecast throughout the latter half of 2019, as infrastructure investment and a decline in unemployment are expected to buoy the rental market for industrial property.
"The property market as a whole is predicted to stabilise throughout the remainder of 2019 as a Liberal government settles in for a new term.
"Investment in healthcare and renewable energy should fuel the demand for industrial space in South Australia as the market looks to recover from recent lows.
"Both the Darlington upgrade and the Northern Connector are expected to finish late this year, providing an upgrade to major freight and transport routes in the north and south of South Australia."
</body></html>

Adelaide industrial property market recovering: HTW Industrial

<html><body>
EXPERT OBSERVER
The Consumer Price Index – the main measure of inflation in Australia – rose by 0.6 per cent in the June quarter, above expectations.
In seasonally adjusted terms the CPI rose by 0.7 per cent. The annual rate of headline inflation lifted from 1.3 per cent to 1.6 per cent. The Aussie dollar rose by almost a quarter of a cent against the greenback in response.
The Reserve Bank monitors three measures to derive the underlying inflation rate. The trimmed mean rose by 0.4 per cent in the June quarter (1.6 per cent annual); the weighted median rose by 0.4 per cent (1.2 per cent annual) and the CPI less volatile items rose by 0.3 per cent (1.5 per cent annual). Overall, underlying inflation rose by around 0.4 per cent in the quarter and by around 1.5 per cent over the year. Market goods and services less volatile items rose by 0.5 per cent in the quarter to be up 1.6 per cent on the year.
Automotive fuel (+10.2 per cent), medical and hospital services (+2.6 per cent) and international holiday travel (+2.7%) recorded the most significant price gains. The most significant offsetting price falls this quarter are fruit (-4.1 per cent), electricity (-1.7 per cent) and domestic travel (-1.5 per cent).
<h1>What does it all mean?</h1>
- Inflation remains contained. But we can never claim that the inflation dragon is dead, rather resting. Higher fuel prices can be passed through in terms of higher taxi and public transport fares as well as freight and courier prices. Weather events like the current drought in eastern Australia can push up prices of supermarket goods as well as café, restaurant and takeaway food prices. The high activity in infrastructure building can put upward pressure on construction sector wages, in turn lifting prices of newly-built dwellings.   
- Clearly fuel and food prices are volatile. Fuel lifted 10.2 per cent in the June quarter, but over the past month, petrol is down by 3 per cent.
- If we are looking where future inflation pulses can come from, fuel prices, weather events, administered prices (such as utilities and child care), the exchange rate, construction and wages are the things to watch.
- Headline inflation has averaged 1.7 per cent over the past five years and averaged 2.1 per cent over the past decade. So clearly inflation remains below ‘normal’ levels and certainly still below the Reserve Bank’s 2-3 per cent target band.
- The key underlying measures of inflation rose 0.3-0.5 per cent in the June quarter. Even if the latest results were annualised, inflation would be below the Reserve Bank’s 2-3 per cent inflation target.
- Wages are still growing at a slower pace than in the past. But wages are outpacing prices and have lifted from lows. And businesses can’t absorb higher costs forever. The next wage price index data is released on August 14. 
- The Reserve Bank has cut rates in quick succession. At the same time there are indications that economic momentum has improved since the election. The US Federal Reserve is poised to cut rates. So it is opportune that the RBA stays on the interest rate sidelines for now. But with inflation below the target band and likely to remain low, the Reserve Bank can cut rates further if it believed it would be successful in generating faster economic growth, higher wages and lower unemployment. 
 <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/2019/7/31/CommSec%20CPI.jpg" alt="">
CRAIG JAMES is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
 
<ins id="aswift_0_expand" data-ad-slot="3195360564"></ins>
<div>
<div id="cpgAdsenseContainerId"><ins id="aswift_0_expand" data-ad-slot="3195360564"></ins></div>
</div>
 
 
</body></html>

cjames-5S2v74qSNK

Inflation dragon still dozing: CommSec

<html><body>
Australia's Consumer Price Index has risen 0.6 percent over the June quarter, slightly higher than expectations. 
The biggest drivers in the uptick of prices was fuel, up 10 percent.
International holiday travel and accomodation was up 2.7 percent, medical and hospital services was up 2.6 percent and tobacco was up 2.4 percent.
On the flip side, prices for fruit and vegetables were down 2.8 percent), domestic holiday travel and accommodation was down 1.5 per cent and electricity was down -1.7 per cent over the quarter.
"Inflation remains contained," noted CommSec chief economist Craig James.
"But we can never claim that the inflation dragon is dead, rather resting. 
"Higher fuel prices can be passed through in terms of higher taxi and public transport fares as well as freight and courier prices. 
"Weather events like the current drought in eastern Australia can push up prices of supermarket goods as well as café, restaurant and takeaway food prices. 
"The high activity in infrastructure building can put upward pressure on construction sector wages, in turn lifting prices of newly-built dwellings,' James advised.   
ABS chief economist Bruce Hockman said automotive fuel price rise of 10.2 per cent in the June quarter 2019 contributed to half of the 0.6 per cent rise this quarter.
<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/2019/7/31/CPI%20quarterly%20change.jpg" alt="">
 
"Automotive fuel prices returned to levels recorded in late 2018 after falling 8.7 per cent in the March quarter 2019." The CPI rose 1.6 per cent through the year to the June quarter 2019, after increasing 1.3 per cent through the year to the March quarter. 
"Annual growth in the CPI continues to be subdued due to falls in a number of administered prices. Through the year, utility prices have fallen 0.2 per cent and child care has fallen 7.9 per cent following the introduction of the Child Care Subsidy package in July 2018."
Westpac had been <a href="/expert-insights/investing/cpi-forecast-to-rise-for-june-quarter-westpacs-justin-smirk">forecasting a 0.5% rise</a> in the June quarter CPI, taking the annual pace to a 1.5% rise from 1.3%.
"The June quarter tends to be a seasonally soft quarter with the ABS projecting a seasonal factor of 0.2ppt increase," Westpac's Justin Smirk said.
IFM economist Alex Joiner says the figures were a slight upside surprise, however it is inline with expectations on core measures.
ANU professor Ben Phillips says CPI for child care shows that since 2002 prices after subsidies up 69% or 14% (real terms). About -6% relative to incomes.
Darwin saw the biggest increase in inflation, up 0.8 percent, driven by a 14 percent rise in domestic holiday, travel and accomodation prices.
<div class="m_-7873551498641470382css-1dbjc4n m_-7873551498641470382r-1iusvr4 m_-7873551498641470382r-46vdb2 m_-7873551498641470382r-5f2r5o m_-7873551498641470382r-bcqeeo">
<div class="m_-7873551498641470382css-1dbjc4n m_-7873551498641470382r-19i43ro">
 
</div>
</div>
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News