<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

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A newly refurbished warehouse in the Gold Coast suburb of Nerang has sold pre-auction for $300,000.
The <a id="LPlnk782630" href="http://ecomms.raywhite.com/collect/click.aspx?u=jRYOrR8N39R+6hBQZ7yXMt0Z3VIjNMZGYr1PkEqKl6Ax+ys3ix4tNjtOaxdsC8ZBolhV+WJOtZo=&amp;rh=ff004bbdd2c5508a98e8d94d014a8aaa51810060" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">3/21 Lawrence Drive</a> building has a 148 sqm building area along with a 35 sqm approved office mezzanine.
It was one of five units in the complex.   The property was sold by Ray White Commercial Gold Coast agents Jared Johnson and Lachlan Marshall.   Mr Johnson said the seller, who owns and runs his own local fridge panel installation company, was an owner occupier looking to downsize.   “The buyer is an owner occupier looking to upsize from his current space rented in Burleigh."
 He owns and runs Pratley Guitars, a local guitar designer and manufacturer, he said.   “We had an influx of interest from small businesses looking to purchase a property rather than renting.   “The asset was available as vacant possession.”
It was strategically positioned on one of Nerang’s busiest streets, with easy access to the M1 Pacific Motorway, from both the northbound and southbound entry points.   It provides an industrial height roller.  
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j.ballantyne1990-6AQqhLzZaK

Nerang warehouse sells for $300,000

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EXPERT OBSERVER
After the weekend we’ve just had, normal transmission can resume in Australia’s property markets. Well, almost.
At the start of this month, four factors were creating a perfect storm that impacted negatively on housing markets.
Thanks to the unexpected events at the weekend, two of those are done and dusted.
A Federal Election is always a brake on activity in real estate and elsewhere. It creates uncertainty in the minds of consumers who want to see what happens before deciding on big spending commitments.
Mercifully, that’s all over and we can get on with life in an atmosphere of political certainty.
The second element of the perfect storm was the prospect of a Labor Government causing major problems in real estate with its ill-advised changes to negative gearing.
Now the housing industry can get on with business without that negative-gearing negative lurking in the background.
If the Labor Party learns anything from losing the un-loseable election, it will consign the negative-gearing policy to history and never speak of it again.
The increased difficulty in getting finance, thanks to APRA’s over-eager bureaucrats and the banks’ over-reaction to the Royal Commission, is the third element of the perfect storm. That’s the next one to get sorted.
There are growing signs that major lenders are loosening the shackles and competing for new business from investors. The ANZ Bank recently admitted it had gone too far in tightening up its criteria in assessing borrowers.
If banks fail to lighten up and make it easier to get loans at competitive interest rates, they’ll be shooting themselves in the foot along with everyone else in the housing industry.
Banking boffins aren’t the sharpest tools in the corporate shed, but there’s evidence they know they have to make it faster and easier for consumers to get the loans they need on attractive terms.
The process would be aided by a reduction in the official interest rate which, according to most analysts, is likely to happen sooner rather than later – especially given the evidence that the economy is coughing and spluttering a little. Rapid and decisive action from the newly-endorsed Federal Government, as well as the Reserve Bank, is needed.
The fourth factor, and it’s been a big one, has been the attitude of mainstream media. The big newspapers have been indulging a feeding frenzy of negative sensation, taking the downturn in the two biggest cities and turning it into a national crisis.
There have been repeated claims that prices are falling everywhere. They’re not, not even in Sydney, where there are 95 suburbs with median prices higher than a year ago and particularly strong price performance by some of the apartment markets. 
In Melbourne, 57% of suburbs with unit markets have median prices higher than a year ago, as well 36% of suburbs with house markets. That’s what our suburb-by-suburb analysis shows.
The message is even more positive in cities like Adelaide and Brisbane, and in many of our regional markets, notably Victoria and New South Wales.
Notwithstanding those facts, the big city newspapers keep telling us that prices are falling across the nation and there are regular predictions of a nation-wide collapse in prices. That needs to change because, frankly, it’s becoming boring.
More recently, the tone of the headlines has started to lighten. Writers have begun to acknowledge the gathering evidence of a bottoming of the Sydney and Melbourne downturns, with the prospect of impending recovery - while also noting that there are markets elsewhere in the country that are strong and rising.
It’s amazing how fast things can turn around. A few months from now, I expect we will be able to look back to early May and marvel at the difference in conditions and atmosphere as, one by one, those four elements of the perfect storm have been struck down.
One weekend has changed the whole atmosphere surrounding residential real estate.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
<a href="https://twitter.com/hotspotting" target="_blank">twitter.com/hotspotting</a>
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terryryder-YECXbqmri2

Get set for the four elements of the perfect property storm to be struck down: Hotspotting's Terry Ryder

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GUEST OBSERVATION
It won’t help enough, but it will get some people their keys. 
The new <a href="https://www.liberal.org.au/latest-news/2019/05/12/helping-australians-buy-their-first-home" target="_blank">First Home Loan Deposit Scheme</a> announced the Coalition, and <a href="https://theconversation.com/view-from-the-hill-quick-on-the-draw-labor-matches-morrisons-first-home-owners-scheme-116969" target="_blank">instantly backed by Labor</a>, is likely to be popular among those on the cusp of buying their first home.
It’ll be open to singles earning up to A$125,000 and couples earning up to A$200,000 who have saved at least 5% of the value of the home. The government-owned National Housing Finance and Investment Corporation will partner with private lenders to put up as much as another 15% of the value of the home to take the deposit to 20%.
However, the scheme is capped at <a href="https://www.smh.com.au/federal-election-2019/no-free-money-morrison-dismisses-concerns-over-first-home-buyer-scheme-20190513-p51moj" target="_blank">10,000 home buyers per year</a>, roughly one tenth of the number of Australians who bought first homes in 2018.
It’ll help them - the latest survey shows that <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6553.0" target="_blank">more than half of first homebuyers</a> needed financial assistance outside of their own savings to get their deposit. The <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/14036090120617" target="_blank">benefits of home ownership</a> have been widely documented. But will it do enough?
Source of deposits
<img src="https://images.theconversation.com/files/274299/original/file-20190514-60557-572nt0.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
<a class="source" href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6553.0" target="_blank">Authors' own calculations from ABS Survey of Income and Housing 2013-14</a>
An often-expressed concern is that such a scheme will <a href="https://www.theguardian.com/australia-news/2019/may/13/first-homebuyers-scheme-who-gets-it-and-will-it-work-explainer" target="_blank">bid up house prices</a>. However, it is means-tested, making it much less vunerable to this criticism than the non-means-tested <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Former_Committees/hsaf/report/c09" target="_blank">First Home Owners’ Grant</a>.
And is also capped at 10,000 loans per year, giving it little scope to price pressure.
However, it may not be means-tested enough.
Consider the population subgroup that broadly comprises aspiring homebuyers who qualify for the scheme: renters aged 25-34 years who meet the scheme’s income criteria and whose financial wealth is between 5% and 20% of the lowest-priced quarter of houses for sale in the borad area in which they live.
In the most-recent <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6503.0" target="_blank">2015 ABS Survey of Income and Housing</a> there were 127,000 such potential eligible first home buyers, more than 12 times the 10,000 cap.
The cap is a practical necessity of course, needed to limit impacts on prices and prevent a cost blowout. But the weakness of the scheme is that the cap will be filled on a “<a href="https://www.smh.com.au/federal-election-2019/no-free-money-morrison-dismisses-concerns-over-first-home-buyer-scheme-20190513-p51moj" target="_blank">first come, first serve</a>” basis, without distinguishing between those who actually need help and those who are likely to meet the deposit requirement anyway.
The graph shows that some 40% of potential first home buyers have managed to save a deposit amounting to not much more than 5% of the home value. Only 7% have a 20% deposit or something near it.
Potential users of the scheme, by amount of deposit saved
<img src="https://images.theconversation.com/files/274312/original/file-20190514-60567-1rjotju.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Deposit saved by renters aged 25-34 who meet the scheme’s eligibility criteria, per cent of lower quartile property prices in area of residence, 2015-16. <a class="source" href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/6503.0" target="_blank">Authors' own calculations from the ABS Survey of Income and Housing 2015-16</a>
The Coalition could get more bang for its buck within the cap by targeting those in greater need of assistance; for example by prioritising those who cannot access the so-called <a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842" target="_blank">Bank of Mum and Dad</a>. Not everyone has access to wealthy parents.
The Great Australian Dream of owning a home has been fading fast, and not just for young people. Naturally, the scheme’s details of the scheme require scrutiny. But overall, it provides a welcome acknowledgement (by both major parties) that the affordability crisis facing young people has not waned despite recent house price declines.
The scheme will restore the opportunity – at least to some – to accumulate wealth in property and enjoy the <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/14036090120617">security and other benefits</a> that home ownership brings.
But seriously addressing housing affordability will ultimately require a bigger intervention.<img src="https://counter.theconversation.com/content/117073/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;">
<a href="https://theconversation.com/profiles/rachel-ong-viforj-113482" target="_blank">Rachel Ong ViforJ</a>, Professor of Economics, School of Economics, Finance and Property, <a href="http://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/small-but-well-formed-the-new-home-deposit-scheme-will-help-and-its-unlikely-to-push-up-prices-117073" target="_blank">original article</a>.
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The new home deposit scheme will help, and it’s unlikely to push up prices

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GUEST OBSERVATION
If we can avoid a recession for another two years, then on July 1, 2021 Australia will have recorded a record 30 years of economic expansion. We will be entering our fourth decade recession-free.
That’s the expectation embedded in the Reserve Bank’s latest set of forecasts in its <a href="https://www.rba.gov.au/publications/smp/2019/may/" target="_blank">Quarterly Statement on Monetary Policy</a>. But it will be a challenge.
A major downturn in housing markets, historically low interest rates and an international economy more complex and troublesome than we have seen for decades mean the new government will need to take bold and creative decisions in order for us to achieve this truly remarkable milestone.
Things would be okay globally…
<a href="https://images.theconversation.com/files/274096/original/file-20190513-183080-1p0rgsy.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/274096/original/file-20190513-183080-1p0rgsy.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.rba.gov.au/publications/smp/2019/may/" target="_blank">Reserve Bank Statement on Monetary Policy May 2019</a>
The bank has painted a benign picture of the global economic outlook for the next few years after recent data have allayed concerns about a US recession.
The Chinese authorities appear to have stabilised growth in the world’s second largest economy after fears of a steeper decline in activity emerged late last year. Although the Chinese economy faces many challenges, there doesn’t appear to be any signs of an imminent problem.
That should leave economic growth in Australia’s major trading partners at a respectable rate of 3.75% over the next few years, not too different to the global economy. While not exactly a boom, it should be enough to support the Australian economy through to 2021.
This is reflected in the bank’s expectations for the key sectors linking Australia to the world economy. Resource exports are expected to experience strong growth, as are education exports and tourism.
The bank is even expecting manufacturing exports to grow, due to healthy global economic growth and a low Australian dollar. The same can’t be said for rural exports, with drought conditions expected to hurt our international sales for some time.
…were it not for the threat of a trade war
This otherwise upbeat assessment of global economic prospects could come to naught if the renewed trade dispute between the US and China intensifies. The bank identifies this as a major risk to Australia’s economic outlook.
Even though Australia could benefit from the dispute via Chinese domestic economic stimulus in response to difficulties in moving exports, a continuation of rising protectionist measures would impact us directly and indirectly as global economic growth slowed.
Managing the China relationship in the midst of Trump’s trade war will be critical for the incoming government. A misstep could see China use non-tariff measures to slow Australia’s exports.
It would also make life difficult for Australian companies attempting to capitalise on the opportunities offered by China’s emerging middle class.
In Australia, households are battening down
The Reserve Bank expects employment to continue to grow by enough to keep the unemployment rate stable. However, there seems to be little prospect of a rapid pick up in either wages or inflation that will make a dent in Australia’s household debt burdens.
The bank has made it clear that the very low inflation environment will be with us for several years to come. It expects the inflation pulse of the economy, which appears to have slipped to around 1.5% in the past six months, to only slowly pick up, climbing towards 2% by 2020 and just above 2% (and back into the Reserve Bank’s target zone) in 2021.
That gradual increase is unlikely to be meaningfully outstripped by wages growth, implying either a very small lift in living standards or no increase in living standards. It will result in very low consumption growth.
The bank is forecasting historically weak consumption growth of about 2.5% for the next few years. It will put the high-employing retail sector under pressure.
<a href="https://images.theconversation.com/files/274095/original/file-20190513-183077-5xz4du.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/274095/original/file-20190513-183077-5xz4du.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.rba.gov.au/publications/smp/2019/may/" target="_blank">Reserve Bank Statement on Monetary Policy forecasts, May 2019</a>
Two more rate cuts…
The only good news for households (those with debt at least) is that there is interest rate relief in prospect. The bank uses market pricing for the interest rate assumptions in its forecasts. Markets are pricing a cash rate of 1% over the year ahead, down from the present record-low 1.5%. The bank suggests it will come in two cuts of 25 points.
Even with 50 points of cuts factored in, the bank believes it will only just meet its targets of falling unemployment and 2% inflation. It might have to cut further.
But the effectiveness of interest rate cuts as a way of bolstering the economy is in serious question.
The costs of sustained easy money are rising.
Not only is wealth inequality a potential problem, but as interest rates get lower the banks find cuts harder to pass cuts on.
…but they mightn’t be enough
A major issue for the new government will be to recognise the new-found importance of fiscal policy (spending and tax policy) to support economic growth. It will need to be used in an even handed way, without a hint of pork barrelling. Otherwise it will be wasted.
While lower interest rates will good news for the large proportion of Australians that have mortgages, they will not be great for savers. Whether it is someone saving for a home deposit or someone living off retirement savings, super low interest rates will not make life easier.
This challenging environment for Australian households will have implications beyond just the economy’s performance, making <a href="https://theconversation.com/australias-populist-moment-has-arrived-111491" target="_blank">for tricky political waters</a>. Populist political propositions will have much more resonance in difficult times, particularly in regional and rural areas with high retiree populations and the exposure to drought.
The next Australian government should not be complacent.
It will need to adopt an explicit strategy needs to deal with the economic and political fallout from the adjustments within the household sector. it will need to address falling wealth and low real income growth through serious structural reforms aimed at driving up productivity and real wages.
In the short term the government is going to need to be ready to deploy its substantial resources to support households should conditions deteriorate. The <a href="https://theconversation.com/your-income-tax-questions-answered-in-three-easy-charts-labor-and-coalition-proposals-side-by-side-115450" target="_blank">low and middle income tax offset</a> are a good starting point.
Business is in good shape so far…
Although business confidence has dropped over the past nine months, the Reserve Bank expects businesses to continue to invest and hire new staff. It expects non-mining business investment to expand at a healthy rate. But this can’t be taken for granted given the precarious nature of consumer demand.
The next government will have to be acutely sensitive to the risk of undermining business confidence. A hiring strike by business would be dangerous for an economy tiptoeing along a knife edge.
We might be surprised by good news. In other advanced economies an unexpected bonus has been strong employment growth despite economic and political uncertainty and modest economic growth.
While this international experience shouldn’t give us confidence that stronger employment growth translate into stronger wage growth, it might at least help maintain consumer spending in the face of lower house prices.
…except for construction
The Reserve Bank is explicit in its expectation that housing construction will turn down over the next two years. The drop off in activity could be big and have a major negative impact on employment. Although there is currently a high level of activity in commercial construction, particularly infrastructure-related activity, it is unlikely to be big enough to offset the downturn in housing construction.
Governments across Australia have an opportunity to think about nation building. Funding costs are low, government finances are strong and the shrinking construction sector will free up labour and other resources for important projects.
Which means its time for nation building
The next term of government will see very little economic momentum originating from consumers. They are in balance sheet repair mode. That makes it the perfect time for the governments to lead the way and drive private sector economic activity through a whole range of long-term investments in Australia’s future.
Coordinating this with the states and identifying the right projects will be the most important challenge facing the new government.
Warren Hogan, Industry Professor, University of Technology Sydney
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/the-next-government-can-usher-in-our-fourth-decade-recession-free-but-it-will-be-dicey-116887" target="_blank">original article</a>.
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The next government can usher in our fourth decade recession-free, but it will be dicey

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GUEST OBSERVATION
No matter who wins Saturday’s federal election, you can expect to see more cranes on the skyline and hi-viz vests on the roadside.
Both major parties are promising to spend big on transport infrastructure: A$42 billion for the Coalition and A$49 billion for Labor.
However, many of the favoured projects are unlikely to be completed for years or even decades to come.
What’s being promised, and where?
The types of project each party is promising reflect a now-familiar pattern seen in the recent <a href="https://theconversation.com/how-much-will-voters-pay-for-an-early-christmas-eight-charts-that-explain-victorias-transport-election-106782" target="_blank">Victorian</a> and <a href="https://theconversation.com/how-the-nsw-election-promises-on-transport-add-up-112531" target="_blank">New South Wales</a> elections.
The Coalition will outspend Labor on roads; Labor will outspend the Coalition on public transport.
<a href="https://images.theconversation.com/files/274293/original/file-20190514-60554-if4z2a.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/274293/original/file-20190514-60554-if4z2a.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
There’s also a story in the details of where the parties are promising to spend. In Victoria, where the Coalition suffered heavy losses in last October’s state election, <a href="https://www.theage.com.au/federal-election-2019/some-seats-are-better-than-others-coalition-sandbagging-key-electorates-with-taxpayer-funds-20190501-p51j6b" target="_blank">the federal Coalition has been busy “sandbagging”</a> key seats. Until last weekend, the Coalition had been promising much more than Labor.
Announcements on Sunday changed all that. While the Coalition <a href="https://www.theaustralian.com.au/nation/4bn-bid-to-unlock-road-link-box/news-story/1c4254f3a80bc85dc11e068b9bff62a9" target="_blank">upped its commitment to the East West Link to A$4 billion</a>, this was dwarfed by Labor’s <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-05-12/shorten-morrison-pledge-cash-for-melbourne-infrastructure/11105094" target="_blank">A$10 billion pledge for the Suburban Rail Loop</a>. Victoria now stands as the key battleground for transport promises.
Labor is also writing bigger cheques than the Coalition in Queensland, where it <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-04-12/federal-election-queensland-battleground/10975570" target="_blank">hopes to make big gains</a>.
<a href="https://images.theconversation.com/files/274294/original/file-20190514-60549-1rw76kx.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/274294/original/file-20190514-60549-1rw76kx.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
There’s some agreement on the big stuff
Despite their different ideologies and at-risk electorates, there is still much common ground between the parties. Almost one in three of the projects and funding packages that have attracted promises of at least A$50 million are backed by both the Coalition and Labor. Each party has promised almost A$24 billion for these “bilateral” projects – that’s more than half of the Coalition’s total promised transport infrastructure spending and almost half of Labor’s.
The parties are more likely to agree on big projects than small. Bilateral commitments make up almost half of all promises worth at least A$500 million, but less than a third of those below that threshold. For the very largest projects, the level of agreement is somewhere in between – the Coalition and Labor agree on four of the 11 projects attracting commitments of more than A$1 billion.
<a href="https://images.theconversation.com/files/274295/original/file-20190514-60560-esgadm.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/274295/original/file-20190514-60560-esgadm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
But voters are forced to make risky choices, again
With so much cash on the table, will these vast riches be spent on the right things?
More money for roads and public transport probably sounds fine to most Australians, whether they’re navigating potholed rural roads, stuck behind trucks on regional highways, drumming the steering wheel in clogged city streets, or calling in late on delayed suburban trains.
But are the projects of national significance and therefore worthy of Commonwealth attention? And can they be relied on to return a benefit larger than their cost?
For too many projects, the answers are no and no. Infrastructure Australia (IA) publishes a <a href="https://www.infrastructureaustralia.gov.au/projects/infrastructure-priority-list.aspx" target="_blank">list of national priorities</a> and evaluates business cases for projects that are “<a href="https://www.infrastructureaustralia.gov.au/about/files/IA-Statement-of-Intent-2017-19.pdf" target="_blank">nationally significant or where Commonwealth funding of A$100 million or more is sought</a>”. Most of the commitments above A$100 million in this campaign do not have IA-approved business cases.
Some projects are under evaluation, such as a new bridge in Nowra on the NSW south coast, but the two parties should have waited for IA’s assessment before committing.
Worse still, many promised projects are not even on the national priority list.
<a href="https://images.theconversation.com/files/274296/original/file-20190514-60541-bw6rss.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/274296/original/file-20190514-60541-bw6rss.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
For projects attracting commitments of less than A$100 million, most are best left to state governments. The Commonwealth should stick to projects that are important to more than one state or are particularly important to the national economy.
Fixing <a href="https://www.barossaherald.com.au/story/5990686/budget-48-million-roundabout-at-kroemers-crossing/" target="_blank">regional</a> and <a href="https://anthonyalbanese.com.au/media-release-labor-will-fix-one-of-adelaides-worst-intersections-saturday-9-march-2019" target="_blank">suburban intersections</a> is important, but it’s hardly of national significance. When federal parties get involved, it starts to smell like pork-barrelling.
Some promises are inexcusable
Throwing taxpayer money at boondoggles is poor governance. Far worse is flagrantly ignoring independent advice and burning cash on projects that we know don’t stack up. Before the 2016 federal election, Grattan Institute reported on the <a href="https://theconversation.com/election-2016-will-the-infrastructure-promises-meet-australias-needs-61140" target="_blank">outrageous Princes Highway duplication between Winchelsea and Colac</a> in Victoria’s Western District. The Coalition promised this project even though IA determined that it would return only eight cents of value for every dollar spent.
Three years on, lessons still need to be learnt. Labor has committed A$50 million this election to the <a href="https://www.macarthuradvertiser.com.au/story/6092086/labor-pledges-50-million-to-finish-maldon-dombarton-rail-link-project/" target="_blank">Maldon-Dombarton rail link</a> in NSW’s Illawarra region. This <a href="https://www.infrastructureaustralia.gov.au/projects/files/Maldon-to-Dombarton-summary.pdf" target="_blank">A$806 million project got the thumbs-down</a> in 2017 from IA, which stated that “the project would not justify its costs and would impose a net cost on the Australian economy”.
In exceptional cases, governments may want to fund projects with costs outweighing benefits on equity grounds, <a href="https://grattan.edu.au/wp-content/uploads/2019/04/916-Commonwealth-Orange-Book-2019.pdf#page=63" target="_blank">such as to provide a minimum level of service for rural communities</a>. It is hard to make that case for a commercial freight rail link.
Every dud project built cannibalises a worthy one. Our politicians should stop donning hardhats and promising infrastructure before they’ve done their homework.<img src="https://counter.theconversation.com/content/115138/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Greg Moran, Senior Associate, Grattan Institute
James Ha, Graduate Associate, Grattan Institute
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/transport-promises-for-election-2019-the-good-the-bad-and-the-downright-ugly-115138" target="_blank">original article</a>.
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Transport promises for election 2019: the good, the bad and the downright ugly

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The Prime Minister’s plan to help first-home buyers purchase with only a 5% deposit could have a major impact on the broader economy, says one property group. 
The First Home Loan Deposit Scheme, adopted from New Zealand’s Welcome Home Loan program and announced by the Prime Minister Scott Morrison at the Liberals’ formal campaign launch in Melbourne last week, will mean first-home buyers, who have been able to save a deposit of at least 5%, will be able to access a government guarantee for the remainder of up to 20% of a property’s value.
It will also remove the costs of paying lenders’ mortgage insurance.
The scheme will offer up to $500 million in equity through the National Housing Finance and Investment Corporation, would start on January 1, 2020, and be capped for individuals earning $125,000 and couples earning $200,000.
Labor has said it will match the Coalition plan, stating it could afford to do so as it was “closing loopholes” for the wealthy.
RiskWise Property Research CEO Doron Peleg said the Coalition’s First Home Loan Deposit Scheme would support the market instead of further weakening it.
“Although the number of loans is expected to amount to around 10,000, when you take this amount and add in the saving of the LMI, potential interest rate cuts and the flow-on effect on upgraders, this could support particularly affordable markets that are more appealing to first home buyers,” he said.
“Also, the Prime Minister has said he would like to run the scheme through second tier lenders and this will further improve the position of non-bank lenders in the market.”
Peleg said Labor’s proposed taxation changes, to limit negative gearing to new homes only and cut capital gains tax from 50 to 25%, would have “unintended consequences” and further impact an already weak housing market.
“The property market has been experiencing ongoing weakness,” he said.
“Tighter lending standards, the findings of the Banking Royal Commission, political uncertainty, fears of the potential changes to negative gearing and capital gains tax, restrictions on foreign investors, unit oversupply and large falls in dwelling commencements have all had a material impact."
 
 
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Coalition’s First Home Loan Deposit Scheme would support the market: RiskWise

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A Surfers Paradise resident letting agent and his business have been fined $65,000 for failing their legal obligations following an Queensland Office of Fair Trading (OFT) investigation.
Gary Anthony Wyeth, licensed resident letting agent of Wyeth Management Services Pty Ltd, pleaded guilty to one count of providing falsified documents and one count of failing to pay trust money under the Property Occupants Act 2014 in the Southport Magistrates Court on 13 May 2019.
Mr Wyeth and Wyeth Management Services were conjointly charged and ordered to pay $65,000 in fines. Convictions were recorded.
In April 2018, the OFT appointed receivers over the trust property portfolio of Wyeth Management Services.
The court heard Mr Wyeth provided falsified statements to one of his unit owner clients in an attempt to cover up a misappropriation of funds, totalling $3,740.
In March 2018, the letting agent knowingly handed over documents that contained 33 months’ worth of misleading information to OFT inspectors in an effort to hide his dealings.
The court further heard that in September 2018, receivers provided the OFT with a summary of 18 unit owners who had incurred a combined rental shortfall of $81,501.09. In addition, the Wyeth Management Services trust account only held $9,760.80, a shortfall of $71,740.29 which was subsequently the subject of a number of OFT claim fund claims.
The claim fund was set up to assist people who are out of pocket because an agent has failed to properly account for money held in trust.
In sentencing Magistrate Sinclair noted that the agent had engaged in a protracted and deliberate course of dishonest conduct.
Fair Trading Acting Executive Director Craig Turner said Mr Wyeth showed a lack of respect to the industry by failing to uphold his position of trust as a property agent.
“Any misappropriation of trust money or the production of falsified accounts will not be tolerated and will result in strong enforcement action by the OFT,” Mr Turner said.
“Actions like these undermine the image of the majority of agents who work ethically within the industry.”
Anyone who believes a resident letting agent may have misappropriated trust money is encouraged to lodge a complaint to the OFT at <a href="http://www.qld.gov.au/fairtrading."></a><a href="http://www.qld.gov.au/fairtrading" target="_blank">www.qld.gov.au/fairtrading</a>.
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Surfers Paradise misappropriation of rental funds triggers $65,000 fine for Wyeth Management Services

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GUEST OBSERVATION
The lowest blow of this election campaign may have come from a firm of real estate agents that abused its position of trust to scare renters about Labor’s proposed negative gearing changes.
If you are one of those renters, relax. You have nothing to fear from the changes. You might even benefit from them. The only interests the real estate firm is protecting is its own.
<a href="https://images.theconversation.com/files/274660/original/file-20190515-60541-2j3qx4.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip" target="_blank"><img src="https://images.theconversation.com/files/274660/original/file-20190515-60541-2j3qx4.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
Letter from Raine &amp; Horne principal Graham Cockerill. <a class="source" href="https://www.propertyobserver.com.au/https://twitter.com/samanthamaiden/status/1127827648451715074" target="_blank">Samantha Maiden, Twitter</a>
Late last week Raine &amp; Horne principal Graham Cockerill wrote to tenants saying Labor’s changes would be “devastating” and including material from the Real Estate Institue of Australia warning of what might happen if “the planned changes to negative gearing do go ahead”.
“The fall in property prices will decrease the value of 18 million Australian’s retirement nest eggs,” and “rents will rise” the material warns. “Further, government savings will be less than estimated, unemployment will rise and our whole economy will be in jeopardy.”
Other renters have received official looking material apparently sent by the Liberal Party reading “Final Notice: Rent Increase”.
<a href="https://images.theconversation.com/files/274574/original/file-20190515-60557-16beq7g.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/274574/original/file-20190515-60557-16beq7g.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.reddit.com/r/brisbane/comments/bofcll/i_received_this_piece_of_fear_mongering_political/" target="_blank">Apotheosical, Reddit, Tuesday May 14</a>
It’s a jumped-up scare campaign. But some renters may give it more credibility than it’s worth because some of it comes from the people who normally notify you when your rent is going up.
Here are some facts.
Labor’s policy will not raise rents.
Real estate agents don’t decide rents, landlords do.
The Labor policy won’t fundamentally change the balance of supply and demand in the rental market.
Yes, if there are fewer cashed-up investors that might mean fewer rental properties. But those properties won’t disappear – home buyers will move in, so there will be fewer renters.
And the policy shouldn’t reduce the supply of new homes, because most investment lending goes to existing rather than new homes. Labor’s policy actually leaves in place the tax breaks for people who invest in new homes.
Some of the renters targeted by Raine &amp; Horne might be saving to buy a home. If you are one of them, here are some more facts.
Labor’s policy will help renters buy houses
You stand to benefit from the Labor policy. If there are fewer taxpayer dollars in the hands of property investors, that will boost your prospects of being able to buy a home yourself.
If there is reduced demand from investors, house prices will fall. The fall will be modest – we at Grattan Institute calculate it will be <a href="https://theconversation.com/confirmation-from-nsw-treasury-labors-negative-gearing-policy-would-barely-move-house-prices-116736" target="_blank">in the range of 1% to 2%</a>. The Commonwealth and NSW Treasuries estimate similar modest price falls.
So what about the headlines you might have seen about 10% or 20% price falls?
All those estimates were prepared by – or paid for by – the property industry. If you detect a pattern you are right. Well-resourced property groups that stand to lose from capital gains tax and negative gearing changes have been muddying the water for a long time now.
The industry talks its own book
Here are a few facts that real estate agents aren’t rushing to tell you. Negative gearing and the capital gains tax discount work together to create a very generous tax regime for the property industry. Investors write off their losses after interest costs in full against the taxes on their wages. But when they sell, they only pay tax on half their gain. Given strong growth in property prices and low inflation, some wage earners <a href="https://grattan.edu.au/wp-content/uploads/2016/04/872-Hot-Property.pdf" target="_blank">end up paying less tax</a> than if they had not invested at all, despite the profits on the investments.
And like most tax concessions, people with higher incomes benefit the most. That’s why the share of anaesthetists negatively gearing is almost triple that for nurses, and the average tax benefits they receive are around 11 times higher.
The end result is that the government has been subsidising investors to buy their second, third or tenth property while at the same time crying crocodile tears about the fact that lots of young people trying to buy their first home are locked out of the market.
The industry claims of rising unemployment and putting the economy “in jeopardy” show a similar disregard for facts. The Labor policies will collect on average an extra A$3 billion to A$4 billion a year in revenue for the government over the first decade, less than a 1% increase in the total tax take. Much of that money will go back into the economy through <a href="https://theconversation.com/labors-costings-broadly-check-out-the-days-of-black-holes-are-behind-us-thankfully-116904" target="_blank">reductions in other taxes or increases in spending</a>. Any negative overall effects from the higher levels of tax will be imperceptibly small across a A$1.8 trillion economy.
There is, however, one industry that might go backwards.
Real estate agents take healthy commissions from housing investors. Investors, particularly negatively geared ones, also turn over properties faster than homeowners. So real estate agents benefit when there are more properties in the hands of investors and fewer in the hands of homeowners.
Don’t be scared by the real estate agents’ campaign. Labor’s negative gearing policy won’t raise your rent. And if you’re trying to buy your first home, it just might boost your chances.
<a href="https://theconversation.com/profiles/danielle-wood-147710" target="_blank">Danielle Wood</a>, Program Director, Budget Policy and Institutional Reform, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/real-estate-agents-targeting-tenants-is-the-lowest-of-the-low-blows-during-election-2019-117188" target="_blank">original article</a>.
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Real estate agents targeting tenants is the lowest of the low blows during election 2019: Grattan Institute's Danielle Wood

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Two shopping centres, one near Sydney one in Geelong, have hit the market.
<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/2019/5/29/JLL%20image_CorioVillage_aerial%202.jpg" alt="">
Corio Central (pictured above and top) in Geelong is anchored by Woolworths and Coles, as well as a Kmart DDS.
The 31,503 square metre centre is located 8 kilometres north of the Geelong CBD.
Additional tenants include six mini-majors, 82 specialty stores and kiosks, 16 offices and 1 pad site.
Lennox Village (below) is in Emu Plains, approximately 50 kilometres west of the Sydney CBD.
The 10,065 square metre centre shopping centre is tenanted by a Woolworths supermarket, an ALDI, a Dan Murphy’s, 30 specialties stores, a kiosks, one office and five pad sites.
<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/2019/5/29/JLL%20image_Lennox%20Village%20aerial%201.jpg" alt="">
Simon Rooney, JLL’s Head of Retail Investments – Australasia, said this section of the market was strong.
“Major convenience-based shopping centres continue to generate strong interest from investors, given their exposure to more resilient retail categories such as grocery, F&amp;B and retail services,” Rooney said.
“Buyers see relative value in retail assets given the widening spread to other asset classes and attractive income returns available for quality neighbourhood and sub-regional centres.
“Investors are opportunistically making tactical retail acquisitions to take advantage of the pricing disparity between sectors and individual assets.”
Transaction activity was highest in the $50 million-$150 million bracket in 2018, having increased 74%, on top of 47% growth already recorded in 2017, JLL said.
“Investors are targeting high-yielding neighbourhood and small and mid-sized sub-regional centres, such as Corio Central, with a major focus on retail services as well as F&amp;B,” said Rooney.
“F&amp;B has consistently been the fastest growing retail category over the last five, 10 and 20 years, which underpins solid leasing demand.”
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Corio Central and Lennox Village shopping centres listed

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A group of investors headed by former Yellow Brick Road owner David Carr has sold the Redcliffe Tavern and First Choice Liquor Superstore in Brisbane's north at a loss.
They sold for $14.5 million having paid $15 million in 2016.
The previous owner, Somerset Properties had bought it from Alceon for $11.5 million in 2014.
It sold in 2013 at $10.65 million.
The latest buyers, Anthony and Julian Vedelago's Wuvulu Property Investments, secured it on a yield of about 7.25% through Savills.
The 1464 square metre freestanding Anzac Avenue building sits on a 2313 square metre site.
It comprises a 643 square metre tavern and 821 square metre liquor store.
It was offered with a 20-year lease to Coles-owned Liquorland plus options to 2049.
The property was developed in 2009.
Nine Entertainment reported Carr played down the sales result and said the investor group had "come out ahead" when the deal was averaged out across a number of pub divestments.
"I don't see it as a turning point for the pub sector," Carr said.
He attributed the weaker sale result to "some uncertainty around the Coles business model in Queensland" during the sales campaign and described the property as more of a retail offering then a pub asset.
Carr runs Sydney wealth advisory firm DBR with Bernard Reilly who was also an investor in the Redcliffe Tavern.
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