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


Joel Robinson

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

<p><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;</p>

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365684]</p>

<p>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.</p>

<p>Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.</p>

<p>"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;</p>

<p>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;</p>

<p>“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;</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365687]</p>

<p>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;</p>

<p>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.</p>

<p>"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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365689]</p>

<p>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.</p>

<p>"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;</p>

<p>640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.</p>

<p>"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."</p>

<p>One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.</p>

<p><em>Renders shown are Artist's Impressions correct as of May 2026.</em></p>

<p>[smartcode_project_cta:default project_id=509]</p>


Heritage-led design anchors Far East Consortium’s 640 Bourke St, Melbourne

<p><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.</p>

<p>The sale equates to around $37,500 per sqm.</p>

<p>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.</p>

<p>Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.</p>

<p>“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.</p>

<p>“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323057]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.</p>

<p>“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323055]</p>

<p>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.</p>

<p>Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.</p>

<p>“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”</p>

<p>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.</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323052]</p>

<p>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.</p>

<p>Mould said the design intent was to balance that outlook with a sense of retreat.</p>

<p>“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.”</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=146358]</p>


MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for BIG Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.</p>

<p>“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.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“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.</p>

<p>"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.”</p>

<p data-end="236" data-start="64">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.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">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.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.</p>

<p data-end="951" data-start="762">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.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Sydney’s YSG Studio makes Gold Coast multi-residential debut with BIG Projects at The Frederick

<p>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;</p>

<p>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;</p>

<p>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;</p>

<p>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;</p>

<p>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;</p>

<p><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" /></p>

<p>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;</p>

<p>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;</p>

<p>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;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>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;</p>

<p><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" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"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.</p>

<p>“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."</p>

<p>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.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>An owner occupier has purchased the former Westpac bank building in the centre of Lalor’s shopping precinct for $2.455 million.</span></p>
<p><span>It marks the latest transaction of a vacant retail asset in Melbourne.</span></p>
<p><span>Fitzroys agents Terence Yeh and David Bourke sold 322-324 Station Street following a successful auction campaign that attracted more than 60 enquiries from investors and owner occupiers, with multiple bidders competing at the auction.</span></p>
<p><span>Yeh and Bourke acted on behalf of private investors who had bought the property in 1996 for $830,000.</span></p>
<p><span>The freehold asset comprises a two-level building of 850 sqm on a 520 sqm landholding that has 12.2 m of frontage to Station Street and 12.5 m to a rear laneway.</span></p>
<p><span>“Investors were attracted to the busy shopping precinct’s historically low vacancy rate, while owner occupiers were keen to take the rare chance to secure a strategically located, high-profile building in the heart of this busy shopping precinct,” Yeh said.</span></p>
<p><span>“This is a tightly held area of Melbourne, with one property coming to the market every few years.”</span></p>
<p><span>Bourke said the local operator is familiar with the location, having operated their business in the area for more than 10 years.</span></p>
<p><span><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/2019/4/16/thumbnail_IMG_7152.jpg" alt=""></span></p>
<p><span>“Their purchase is a strong vote of confidence in the strength of this precinct and its future prospects,” he said.</span></p>
<p><span>Positioned within a major retail hub, neighbouring Coles, Commonwealth Bank, and Lalor Library, the property will benefit from sustained population growth in the surrounds and across the City of Whittlesea.</span></p>
<p><span>The sale continues the Melbourne-wide trend of vacant retail properties attracting strong attention from investors and owner occupiers. Fitzroys has just sold 371 Bay Street in Port Melbourne for $1.31 million to an owner occupier, following the agency’s sale of a two-</span>storey Newport Village freehold to a first-time investor for $875,000 and a Harp Village building in Kew East for $1.2 million before auction.</p>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Fitzroys sold two Puckle Street, Moonee Ponds properties late last year; to a dental clinic and an investor respectively, which followed the sale of the former premises of Brighton icon Wild Holly Cakes on Bay Street for $2.905 million after interest from investors and owner occupiers.</span></p>
<p><span>Other recent Fitzroys sales have included a former Commonwealth Bank branch in Keilor, 241 Bridge Road to accounting firm Michael Jensen &amp; Associates, and a High Street building in Thornbury to a local food and beverage operator.</span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

j.ballantyne1990-6AQqhLzZaK

Owner occupier purchases former Westpac building in Lalor

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span>Asia Pacific commercial real estate investment markets appeared to run out of momentum in the third quarter of 2018 after two years of very strong growth, with deal volumes sliding </span><span>in the region’s two largest markets</span><span>, Real Capital Analytics (RCA) data showed. </span></p>
<p><span>China registered the lowest quarterly level of transactions in five years as it reined in lending to investors and developers. Japan experienced its quietest three months since the Global Financial Crisis a decade ago.</span></p>
<p><span>Q3 2018 volumes were down 27% to US$27 billion compared to the same quarter last year, but were saved from a steeper decline by all-time high volumes in South Korea. </span></p>
<p><span>The last time the region recorded a quarterly decline was Q2 2016. Over the 12-months ending Q3 2018, purchases of commercial buildings in APAC totalled US$165.0 billion, a 3% increase from the same period ending Q3 2017, RCA</span><span>‘s </span><span>Q3 2018</span><span>Asia Pacific Capital Trends </span><span>report showed.</span></p>
<p><span><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/2019/4/16/figure%201%20.jpg" alt=""></span></p>
<p> </p>
<p><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/2019/4/16/figure%202.jpg" alt=""></p>
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span>Petra Blazkova</span><span>, RCA’s Senior Director of Analytics for Asia Pacific, </span><span>said: “</span><span>For the past decade the Asia Pacific real estate investment market has been characterised by rising prices and steady yield compression, enabling capital gains for most players."</span></p>
<p><span>"With property yields at historic lows and tighter financing conditions looming, or already encroaching in some markets, activity seems to be shifting into a lower gear as investors determine whether the next stage of the investment cycle is on the horizon.</span><span>”</span></p>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<p><strong>Australian Price Growth Momentum Begins to Ebb</strong><img src="blob:https://www.urban.com.au/ada82210-5607-45c4-a26f-ed2c41437e79" alt="page2image3763824" width="230.529000" height="0.719966"></p>
</div>
</div>
<div class="layoutArea">
<div class="column">
<p><span>After a long run of gains, commercial real estate prices in Australia have logged two successive quarters of decelerating growth. Australian investment volumes over the quarter fell 39% compared to Q3 2017 and over 12-months dipped 1% year-over-year in Q3 2018 to US$26.7 billion (A$37.0 billion), RCA data showed. Deal count declined by 15%, based on 12-month rolling totals.</span></p>
<p><span>Offices, while remaining the best performer, started to plateau first, and particularly outside Sydney’s</span><span>central business district. The narrowing financing gap has also forced investors to take a pause. RCA</span><span>’s</span><span>Commercial Property Price Indices (CPPI) showed Australian commercial real estate prices have risen 82% in the past five years.</span></p>
<p><span>Sydney recorded growth in both the retail and industrial sectors for the first nine months of the year, however overall volumes declined by 5%, possibly signaling a market turning point. Average quarterly commercial real estate yields in the city, which move inversely to prices, rose for the first time in three years.</span></p>
<p><span> Yields elsewhere have continued to compress over the past quarter, most notably in Melbourne by 25 basis points and where price rises in Q3 averaged the highest for any major city in the world, RCA data showed.</span></p>
<p><span>RCA’s Blazkova </span><span>observed: “</span><span>The jury is out on the Australian market following this bout of weakness. High prices are persuading owners to sell, which supports the investment market, but overall momentum appears to be slowing</span><span>.”</span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Melbourne bucks downward trend in Asia Pacific commercial property prices in late 2018: Real Capital Analytics

<html><body>
<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">The number of growth markets in Regional Queensland is rising, helped by recovery in resources-related regional centres. Mackay is now the most upwardly-mobile market, having overtaken the softening Sunshine Coast market, and Gladstone is now showing signs of recovery, with some of its suburbs rising.</span></p>
<p class="p1"><span class="s1">Regional Queensland markets collectively have improved in the past year or so: in the past five quarterly surveys of sales activity by Hotspotting, the number of locations with growing demand has increased from 30 to 36 to 40 to 45 to 48.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">The number of growth markets had decreased sharply in the late 2017 survey but showed steady improvement in 2018 and this has continued into 2019.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">The other key feature is the number of Regional Queensland markets with price growth. We analysed price movements in 313 markets and found 203 (65%) have median prices higher than a year ago. Of the 203 growth markets, 99 have recorded median price growth of 5% or more, while another 104 markets have increased by less than 5%.</span></p>
<p class="p1"><span class="s2">Of the higher growth markets, 42 have increased by more than 10%, including 15 which have grown 20% or more. Some of the highest annual growth in median prices has been recorded in mining towns Emerald (up 24%), Clermont (up 33%) and Dysart (24%), but these are rising from a low base after several years of downturn.</span></p>
<p class="p1"><span class="s2">A number of unit markets have recorded high growth in the median prices, including Noosa Heads (31%) and Peregian Springs (23%) on the Sunshine Coast; Airlie Beach (26%) in the Whitsundays; Bilinga (26%), Broadbeach Waters (27%) and Coolangatta (25%) on the Gold Coast; and East Toowoomba (29%) in the inland regional city of Toowoomba.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">Other growth markets are Sunshine Coast lifestyle locations Sunshine Beach (40%), Eumundi (23%) and Doonan (21%).</span></p>
<p class="p1"><span class="s2">A standout characteristic is the recovery in resources-related markets which have spent the past few years in downturn. This trend is headed by Mackay, which now has rising demand coupled with much lower vacancies, and some suburbs are now showing good price growth.</span></p>
<p class="p1"><span class="s2">Emerald, which is located near the mines of the Bowen Basin and the Galilee Basin, is a standout: quarterly sales have been 51, 57, 66, 62, 60, 76 and 78, while the median house price has risen 24% to $310,000 in the past 12 months. The trend here is a prime example of the recovery in the resources-related towns.</span></p>
<p class="p1"><span class="s2">There’s further evidence of revival in Gladstone, in addition to the steady reduction in vacancies (now below 3%). In our latest analysis we have classified six Gladstone suburbs as rising markets and three suburbs (Clinton, Kin Kora and West Gladstone) have median house prices higher than a year ago. But the market remains patchy – some suburbs are still classified as decline or danger markets and most suburbs still have median prices lower than a year ago (but it’s significant that most of those suburbs have recorded an uplift in prices in the most recent quarter).</span></p>
<p class="p1"><span class="s2">As always, never forget that markets that have strong links to the resources sector are volatile and are prone to major downturns. They’re not good places for risk-averse investors.</span></p>
<p class="p1"><span class="s2">The larger, more diversified regional centres of Queensland continue to have steady markets, headed by Cairns and the Fraser Coast. Cairns has seven suburbs with rising sales activity, but prices have yet to react to improved demand – most Cairns suburbs have median prices lower than a year ago, although there are exceptions like Caravonica, Whitfield and Yorkeys Knob.</span></p>
<p class="p2"><span class="s2">The Fraser Coast region, centred on Hervey Bay, now has six rising suburbs, like rapidly-improving Urangan. Toogoom, Tinana and Kawungan have all recorded strong price uplift in the past year.</span></p>
<p class="p2"><span class="s2">Toowoomba remains a solid market without yet showing any overt growth signs, while Townsville has suffered setbacks from the recent major flooding.</span></p>
<p class="p1"><span class="s2">The Sunshine Coast, which for some time has been the strongest of the Queensland markets, no longer has that mantle. It now has few suburbs with rising demand, but many plateau markets –which suggests this market may have passed its peak in terms of demand.</span></p>
<p class="p1"><span class="s2">But it’s still producing strong price outcomes. Of the 99 Regional Queensland markets with annual price growth above 5%, 38 are in the Sunshine Coast region – plus another 24 suburbs have growth of less than 5%. Both house and apartment markets in and around Noosa continue to be leading performers on price growth.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">Sunshine Coast markets with annual growth above 10% include the Doonan, Eumundi, Mooloolaba, Maleny, Sunshine Beach, Woombye, Wurtulla, Pomona, Twin Waters and Peregian Beach house markets, as well as the Golden Beach, Noosa Heads, Noosaville, Peregian Springs and Warana unit markets.</span></p>
<p class="p1"><span class="s2">As we reported in the previous edition, the post-Games boost predicted by some has not eventuated on the Gold Coast. This market was strong from 2015 to 2017 because of the pre-Commonwealth Games construction boom.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s2">Since then the growth has subsided and it’s difficult to find any growth suburbs (in terms of sales activity) in Gold Coast City, but 41 suburbs classified as either plateau or consistency markets – plus a couple of decline markets. The price outcomes are also mixed: 57 suburbs have median prices higher than a year ago, but there are 27 with prices lower than last year.</span></p>
<p class="p1"><span class="s2">A notable trend on the Gold Coast is that many of the best performers on price growth are apartment markets – but not the iconic beachside enclaves like Surfers Paradise, Main Beach and Broadbeach. The unit markets showing growth are in the inland suburbs like Ashmore, Benowa, Elanora, Helensvale, Pacific </span><span class="s3">Pines</span><span class="s2"> and Mudgeeraba – or the beachside suburbs outside the glitter strip, like Bilinga, Coolangatta, Palm Beach and Runaway Bay.</span></p>
<p class="p4"><span class="s5"><em>Terry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p5"><span class="s6"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p6"><span class="s5"><em>twitter.com/hotspotting</em></span></p>
</body></html>

terryryder-YECXbqmri2

Mackay leads regional Queensland price growth surge: Hotspotting's Terry Ryder

<html><body>
<p>Sydney’s crane construction count has again eased a tad from its 2017 peak.</p>
<p>Not too significantly, but it does mean fewer jobs for construction workers and that flows through into the NSW economy.</p>
<p>There are currently 310 cranes on the Sydney skyline, down from the 350 peak which came with six years of consecutive rises in crane numbers.</p>
<p>Of these some 229 are residential cranes nicely spread across 113 suburbs.</p>
<p>The CBD and surrounding inner suburbs have 106 (34%) of the installed cranes, the eastern suburbs have 13 (4%), the north has 107 (34%), the south has 27 (9%), the west has 57 (18%).</p>
<p>Every crane in the sky is sign of confidence in the future of Sydney.</p>
<p>With counting cranes in China a little complex, Sydney still sits second to the longtime undisputed global leader for tower cranes in the Middle East. On one recent count, Dubai proudly had 1182 cranes, with their build it and they will come philosophy.</p>
<p>Residential cranes in Sydney account for 74% of all cranes in Sydney, and 44% of residential cranes nationally.</p>
<p>As always, it is a dynamic situation with 127 additions and 141 removals of residential cranes over the past quarter, according to the latest edition of the Rider Levett Bucknall Crane index which highlights the vital role of the construction sector within Australia’s economy.</p>
<p>There were cranes removed from Castle Hill, Dee Why and Chatswood as apartment projects reached completion.</p>
<p>Seven cranes were removed from residential projects in the south, driving the overall dip in crane numbers. </p>
<p>Sydney's west saw the most significant decline in overall cranes from 78 to 57, with 42 now being residential.</p>
<p>Some 49 cranes were removed in the west and 28 added including Ed Square's four cranes and three at the Lennox in Parramatta.</p>
<p>More came to Darling Harbour.</p>
<p>The report also counted five residential cranes across Newcastle, down from eight last year, and none at Wollongong. There's 12 residential on the Central Coast, out of the 13 in the region, including Terrigal and Gosford with six.</p>
<p>There are some interesting national cyclical trends emerging across the capital cities.</p>
<p>Currently Sydney has 42% of all cranes erected nationally, while Melbourne contributed 30% and Brisbane 8%. Sydney’s dominance has fallen slightly from the high of 52% in 2017. Melbourne’s crane numbers surged past the 200 mark for the first time.</p>
<p>In the first quarter of 2019 there were 735 cranes counted across Australia, with 530 for residential projects and 205 non-residential developments, including the non-residential sector of offices, transportation, hotels, education, health and retail.</p>
<p>New commencements will be affected by the current conditions impacting the industry including tightening finance availability, falling foreign investment and general market confidence.</p>
<p>While potential developments are being delayed until more favourable conditions emerge, the level of forced development site disposals is very low compared to past downturns when very high interest rates - as either holding costs or purchasing costs - caused unsold blackholes across Sydney.</p>
<p>Our construction spurt has helped NSW maintain the lowest unemployment rate in the nation at 4.3%.</p>
<p>But one indicative economic indicator suggests property industry jobs are slowing.</p>
<p>According to the jobs website <a href="http://seek.com.au/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://Seek.com.au&amp;source=gmail&amp;ust=1554848099068000&amp;usg=AFQjCNFbD-KcjvnISkJqcZiMptgC6NAnyQ">Seek.com.au</a>, construction industry job advertisements are 14% lower than this time last year, while real estate jobs are down 15% and design and architecture jobs down 20%.</p>
<p>All those tradies in high visibility vests - buying their pies at lunchtime, spending up on tools, filling up their utes with fuel and buying their own first homes - are underpinning NSW's economic progress.</p>
<p><em>This article first appeared in </em>The Daily Telegraph. </p>
</body></html>

jchancellor-FAypfDUnLy

Sydney's crane count shows why tradies underpin the state's economic fortunes 

<html><body>
<p>Former National Soccer League coach Tony Vrzina has secured $2.7 million from the sale of a vacant office/warehouse building in Hawthorn East. </p>
<p>CBRE’s Sandro Peluso, Josh Twelftree and Jimmy Tat negotiated the off-market sale of the 31 Hall Street property on behalf of the veteran coach.</p>
<p>Vrzina led Sydney Croatia in the 1990s before coaching Victorian Premier League side Fawkner.</p>
<p>In his coaching career he also led the Melbourne Knights, Preston, George Cross and Bulleen. </p>
<p>The 460 square metre Hall Street building has been purchased by an investor seeking to capitalise on demand for social infrastructure in the increasingly affluent commercial and industrial precinct by leasing the building to a health-care related tenant. </p>
<p>“While Hawthorn has always been popular with office tenants and commercial owner occupiers, we expect to see a shift towards more social infrastructure uses in the area,” Peluso said.  </p>
<p>“This will underpin growing interest from medical and child care operators, particularly in light of the growing number of office developments in the area.”  </p>
<p>Peluso noted that the one-time Hawthorn East industrial precinct comprising Hall and Cato Streets had been almost entirely converted to high end office and boutique owner-occupied properties, with 31 Hall Street representing one of the last remaining industrial assets.</p>
</body></html>

Soccer coach Tony Vrzina kicking goals in Hawthorn East with $2.7 million warehouse sale

<html><body>
<p>GUEST OBSERVATION</p>
<p>Immigration policy will be a major issue in the 2019 federal election. We know this because immigration has featured significantly at every Australian election since the 2001 “<a href="https://en.wikipedia.org/wiki/Children_Overboard_affair" target="_blank">children overboard</a>” election.</p>
<p>David Marr and Marian Wilkinson argued in their 2003 book, <a href="https://www.smh.com.au/entertainment/books/dark-victory-20030329-gdgiaw" target="_blank">Dark Victory</a>, that willingness to play the race card in relation to boat people was a decisive factor in John Howard’s election victory. For Tony Abbott, “Stop the boats” was a major campaign theme when the Coalition won back government in the 2013 election. The current prime minister, Scott Morrison, rose to prominence as Abbott’s unyielding immigration minister who stopped the boats.</p>
<p>While the <a href="https://theconversation.com/christchurch-attacks-strike-at-the-heart-of-muslims-safe-places-from-islamophobia-113922" target="_blank">events of Christchurch</a> may have cramped the opportunity for the Coalition to run hard on fear, promising to be tough on borders and tough on (Muslim) terrorism, the dog-whistle politics on the issue of refugees and asylum seekers will be there for those wanting to hear it.</p>
<p>For Labor these policy issues have been difficult. It was Kevin Rudd who as PM <a href="https://theconversation.com/no-more-asylum-in-australia-for-those-arriving-by-boat-rudd-16238" target="_blank">declared that those arriving by boat would never be settled in Australia</a>, irrespective of the validity of their claims for protection under the UN <a href="https://www.unhcr.org/en-lk/1951-refugee-convention" target="_blank">Refugee Convention</a>. Labor supported efforts to get children out of detention on Manus Island, but doesn’t want to give the conservatives too much space to convincingly advance a “Labor weak on border security” line.</p>
<p><strong>Humanitarian intake is growing</strong></p>
<p>The Coalition governments of Abbott, Turnbull and Morrison have in fact increased Australia’s annual humanitarian intake significantly. The number has <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201516/Migration" target="_blank">risen from just over 13,750 to more than 18,000</a> – though the government has not loudly broadcast this fact.</p>
<p>In addition, Abbott in 2015 announced a <a href="https://theconversation.com/australia-ups-its-syrian-refugee-intake-but-what-about-its-own-backyard-47160" target="_blank">one-off intake of 12,000 Syrian conflict refugees</a>. Most of them arrived in 2017, effectively doubling the annual refugee intake in that year.</p>
<p>Australia – and the refugees – coped well, demonstrating the nation’s capacity to significantly increase refugee intakes. <a href="https://theconversation.com/refugees-are-integrating-just-fine-in-regional-australia-101188" target="_blank">Our research</a> with newly arrived Syrian, Iraqi and Afghan refugee families suggests they are settling well in Australia, receiving a warm welcome from locals in the cities and regional centres. Employment and family reunification are their key worries.</p>
<p>Labor’s shadow immigration minister, Shayne Neumann, has flagged a new <a href="https://www.sbs.com.au/yourlanguage/punjabi/en/article/2019/02/12/labor-government-will-replace-new-sponsored-parent-visa" target="_blank">temporary sponsored visa for the parents of migrants</a>. Unlike the current visa, it does not have a cap and it might assist refugees to get their parents to Australia.</p>
<p>Labor has <a href="https://www.alp.org.au/asylumseekers" target="_blank">announced it will increase the annual humanitarian intake</a> of refugees to 27,000 by 2025. It will also abolish <a href="https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/temporary-protection-785" target="_blank">Temporary Protection Visas</a> (TPVs). These visas provide boat arrivals who are found to be refugees the right to stay for only three years with work and study rights and access to Centrelink payments. As Labor argues, this places them “in a permanent state of limbo”.</p>
<p>The Coalition parties have not announced their policy intentions in relation to humanitarian intakes or the rights of asylum seekers, including those who arrived by boat.</p>
<p>At a time when Home Affairs Minister Peter Dutton scans the horizon for new boat arrivals, <a href="https://www.smh.com.au/national/worst-ever-immigration-minister-asylum-seekers-jet-in-under-dutton-s-nose-20190302-p511d8" target="_blank">record number of asylum seekers are arriving by plane</a> under tourist visas. In 2013-14, there were 18,718 asylum applications, including 9,072 boat arrivals. This had increased to <a href="https://thenewdaily.com.au/news/national/2018/12/09/record-number-asylum-seekers-peter-dutton/" target="_blank">27,931 asylum applications, with no boat arrivals, by 2017-18</a>.</p>
<p><a href="https://images.theconversation.com/files/267995/original/file-20190408-2931-1sgmyyr.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/267995/original/file-20190408-2931-1sgmyyr.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a></p>
<p><em><span class="attribution"><span class="source">Department of Home Affairs</span></span></em></p>
<p>Each year the Australia government sets the permanent immigration targets. Until recently this was set at 190,00. In practice just <a href="https://www.homeaffairs.gov.au/research-and-stats/files/report-migration-program-2017-18.pdf" target="_blank">162,000 immigrants have been admitted</a> over the past year or so.</p>
<p><strong>A token cut and 2 new visas</strong></p>
<p>In this context Prime Minister Morrison’s announcement that the <a href="https://theconversation.com/slimmed-down-migration-program-has-regional-focus-113847" target="_blank">permanent immigration target will be cut to 160,000</a> is really no change in immigration policy. There is nothing to see here if you dismiss the need to be loudly anti-immigration in the current populist political climate.</p>
<p>The announcement is linked to congestion-busting in the major cities of Sydney and Melbourne. It is accompanied by the <a href="https://www.news.com.au/finance/economy/federal-budget/immigration-cuts-and-regional-visas-to-ease-strain-on-sydney-and-melbourne/news-story/da7de88690966d4c202ab0d372a5b253" target="_blank">introduction of two new visa pathways</a> – the Skilled Work Regional (Provisional) Visa and the Skilled Employer Sponsored Regional (Provisional) Visa – for skilled migrants to live and work in regional areas for five years.</p>
<p>These visas offer the carrot of permanent residency at the end of three years to attract new immigrants to regional Australia. In addition, the budget announced that scholarships to the tune of $94 million over four years would be available to domestic and international students who study there.</p>
<p><strong>Temporary migrants exploited</strong></p>
<p>Most immigration policy debates centre on permanent immigration intakes, particularly of humanitarian immigrants and asylum seekers. Yet annual temporary migrant intakes – international students, <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1617/Quick_Guides/WorkingHoliday" target="_blank">working holidaymakers</a> and temporary skilled workers – are <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1617/Quick_Guides/MigrationStatistics#_Table_2:_Temporary%20_and%20214,583%20Working%20Holiday%20Makers%20on%20417%20and%20462%20Visas" target="_blank">three times greater</a> than the permanent intake. <a href="https://docs.jobs.gov.au/system/files/doc/other/mwt_final_report.pdf" target="_blank">Over 800,000 temporary migrants</a> were in Australia in June 2018.</p>
<p>One key policy issue is the exploitation of temporary migrant workers. The Turnbull government abolished the 457 temporary skilled migration visa because of increasing <a href="https://theconversation.com/457-visa-changes-wont-impact-on-wider-temporary-education-workforce-and-maybe-thats-deliberate-76579" target="_blank">reports of abuse and exploitation by employers</a>.</p>
<p>One <a href="https://apo.org.au/sites/default/files/resource-files/2017/11/apo-nid120406-1162971.pdf" target="_blank">recent survey</a> of 4,332 temporary migrant workers found “increasing evidence of widespread exploitation of temporary migrant workers, including wage theft”. <a href="https://www.mwji.org/highlights/2017/11/14/report-released-wage-theft-in-australia-findings-of-the-national-temporary-migrant-work-survey%20and%20other%20abuses%20of%20workers%20rights" target="_blank">Half of all temporary migrant workers may be underpaid</a>. About one in three international students and backpackers earned $12 an hour or less – about half the minimum wage.</p>
<p>This issue goes not just to the ethics of maintaining a temporary migration program largely premised on migrant worker exploitation. It also resonates with Labor’s <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-04-05/labors-budget-reply-was-a-careful-pitch-to-voters/10973572" target="_blank">campaign for a living wage and the restoration of penalty rates</a> for workers in response to the low rate of real wage growth in Australia, which constrains consumer demand.</p>
<p>The 2019-20 federal budget allocated extra funding to the Fair Work Ombudsman to bolster enforcement action against employers who exploit vulnerable workers and announced the National Labour Hire Registration Scheme to <a href="https://www.jobs.gov.au/migrant-workers-taskforce" target="_blank">target rogue operators in the labour hire industry</a>. However, the research suggests wage theft is widespread in the small business sector, a key target for tax relief in the budget. It is an area of immigration policy that requires considerably more resources and punch.<img src="https://counter.theconversation.com/content/113557/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;"></p>
<p><em><strong>Jock Collins</strong>, Professor of Social Economics, UTS Business School, University of Technology Sydney</em></p>
<p><em>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/dog-whistles-regional-visas-and-wage-theft-immigration-policy-is-again-an-election-issue-113557" target="_blank">original article</a>.</em></p>
</body></html>

Dog whistles, regional visas and wage theft – immigration policy is again an election issue

<html><body>
<p>A converted Prahran warehouse belonging to design and communications agency Grenade founder Ben Buxton has hit the market.</p>
<p>Buxton’s father is Melbourne property developer and Rich Lister Michael Buxton.</p>
<p>The two storey property at 2 Macquarie Street is on a 306 square metre site and has 473 square metres of office space.</p>
<p>Features include five car spaces, polished concrete floors, exposed steel trusses and beams, and strategically positioned skylights which, paired with the steel framed windows, provide all around natural light.</p>
<p>The property currently has short term leases generating $119,051 per annum with scope for improvement, according to marketing agents, Teska Carson’s Jack Kelliher and Matthew Feld.</p>
<p>“This is a proven commercial and residential location that’s underpinned by arguably the best lifestyle amenity Melbourne has to offer and that is going to attract a broad range of buyers,” Kelliher said.</p>
<p>“The combination of short term income with the flexible Activity Centre 1 Zoning provides fertile ground for a variety of mixed-use development options to be explored, but the property also has much to offer owner-occupiers and investors especially in terms of the location.”</p>
<p>The proximity to the Chapel Street retail strip is advantageous, Kelliher said.</p>
<p>“The area is also well served by public transport with Prahran and Windsor railway stations, both within walking distance, and tram lines along High and Chapel streets, while Dandenong Road and Punt Road provide access to Melbourne’s freeway network.</p>
<p>Kelliher said the area’s popularity had been underlined by the significant residential and commercial development within the immediate vicinity in recent years. </p>
<p>“The local area has seen continuous development in recent years due to the first rate amenity, the close proximity to the centre of Melbourne, and Melbourne’s strong population growth.</p>
<p>“These factors, along with historically low interest rates, will continue to drive demand, development and investment in this area for the foreseeable future.”</p>
<p>The property will be auctioned on Friday, May 24 at 1pm on site.</p>
</body></html>

jonathanchancellor-7SQnKwU6yx

Converted Prahran warehouse listed by Ben Buxton

<html><body>
<p>A new Ballarat child care centre, leased to Beginnings Early Learners, has sold for $4.7million, seven days after being listed with Savills Australia. </p>
<p>CBD &amp; Metropolitan sales agent, Mark Stafford, brokered the off-market deal for 2 Mia Street, Alfredton, following a failed expressions-of-interest campaign with a competitor agency.  </p>
<p>Mr Stafford said the sale price represented a 7.46 per cent yield.</p>
<p>It reflected a rate of $36,154 per place.  </p>
<p>“Savills was able to act swiftly for our vendor, with the property being snapped up by a local investor attracted by the high-growth location, strong rental yield and brand new building,” Stafford said. </p>
<p>“The deal highlights the strong demand we’re experiencing for income-producing assets with long-term leases.” </p>
<p>The transaction comes on the back of Savills recent sale of a childcare centre at 17 Station Street, Pakenham, which sold with a six-day settlement.</p>
</body></html>

Ballarat sale shows childcare centres remain asset of choice for investors across Victoria

<html><body>
<p>It's well known that most <a href="http://petewargent.com/2019/01/10/being-approximately-right-not-precisely-wrong/" target="_blank">market predictions</a> are a <a href="http://petewargent.com/2018/01/04/forecasting-fails/" target="_blank">waste of time</a>: they usually just project <a href="http://petewargent.com/2019/01/02/the-small-numbers-fallacy/" target="_blank">more of what's been happening</a>, and are rarely much chop at picking turning points. </p>
<div>With almost no housing market activity over the long Easter break, this does feel like a potential <a href="http://petewargent.com/2018/01/07/tipping-point/" target="_blank">inflection point</a> - for better or worse - and certainly it's as a good a time as any for a largely baseless opinion piece. </div>
<div> </div>
<div>It's clear that the speculative heat has been well and truly removed from the housing market by the credit squeeze and a range of other factors. </div>
<div> </div>
<div>In fact, the reverse is now the case, with investor credit growth running at the lowest level in Australia's history.</div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-Zj-1Sx_I9FE/XLrwf1FtTII/AAAAAAAAvoE/FiK8ITEj7oEO15XnZ3VSYZbmN0cb6Rd1wCLcBGAs/s1600/RBA.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-Zj-1Sx_I9FE/XLrwf1FtTII/AAAAAAAAvoE/FiK8ITEj7oEO15XnZ3VSYZbmN0cb6Rd1wCLcBGAs/s640/RBA.jpg" width="640" height="372" data-original-height="808" data-original-width="1388"></a></div>
<div> </div>
<div>The stock of interest-only loans has been spectacularly reduced by regulatory tweaks and is also at the lowest share on record: probably down to about 21 per cent of residential loans by value by the end of this quarter, representing an epic decline from 39 per cent in early 2017.</div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-vs6el-7xifQ/XLruWdo0rGI/AAAAAAAAvnc/6IwelGesDFw8hDZAAykHULqm7pmjhagtACLcBGAs/s1600/APRA1.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-vs6el-7xifQ/XLruWdo0rGI/AAAAAAAAvnc/6IwelGesDFw8hDZAAykHULqm7pmjhagtACLcBGAs/s640/APRA1.jpg" width="640" height="364" data-original-height="802" data-original-width="1409"></a></div>
<p><span>The share of high LVR lending is also tracking at around the lowest level on recent record.</span></p>
<div class="separator"><a href="https://1.bp.blogspot.com/-YnIw3fu1f_8/XLruWefabvI/AAAAAAAAvng/XwywLpxyE5U7YKH1xjFaJKSI52V8qzhRwCLcBGAs/s1600/APRA2.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-YnIw3fu1f_8/XLruWefabvI/AAAAAAAAvng/XwywLpxyE5U7YKH1xjFaJKSI52V8qzhRwCLcBGAs/s640/APRA2.jpg" width="640" height="368" data-original-height="798" data-original-width="1381"></a></div>
<p><br><span>Low-doc lending, meanwhile, has been all but eliminated over the past decade. </span></p>
<div>Average paper net rental losses (aka. 'negative gearing') claimed are at the lowest level in almost a decade-and-a-half, with further declines in the post on rising yields, lower mortgage rates, and changes to allowable deductions for plant and equipment depreciation and travel. </div>
<div><span> </span></div>
<div><span>With loans being tested for serviceability at 7¼ per cent lending metrics have, if anything, become too conservative, and borrowing capacity has in many cases been reduced by 20 to 40 per cent (or simply eliminated entirely for many portfolio investors).  </span></div>
<div><span> </span></div>
<div><span>Almost every way you look at it, credit has rarely been so tough to come by. </span></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Prices cooled since early 2017</span></strong></div>
<div> </div>
<div>If the housing market downturn was to end here then I reckon most sober commentators and respected international observers would applaud a job well executed. </div>
<div> </div>
<div>In any event, a lot of the 'bubble' talk is way overdone.</div>
<div> </div>
<div>There's a lot of debt on a gross basis; but mortgage serviceability isn't particularly stretched, while there's also been an unprecedented build-up in cash and cash equivalents, mortgage buffers, and balances in offset accounts.</div>
<div> </div>
<div>In Adelaide it's not all that hard to buy a house for the same price as a decade ago, which given where mortgage rates have gone must represent about a 50 per cent improvement in affordability (without backing this statement up with any hard numbers). </div>
<div> </div>
<div>In Brisbane apartment prices are often seen to be lower than they were almost a dozen years ago, so affordability is now stupendously high compared to where it was. </div>
<div> </div>
<div>Housing prices had already declined for years in Perth; and they've been roundly smashed in Darwin.</div>
<div> </div>
<div>The major house price gains since 2012 were seen in Sydney, where median prices have since declined over a period of more than two years by about 13 per cent, representing a real decline versus incomes nudging about 20 per cent from the peak (much more in parts of Western Sydney, according to a piece in the AFR this week). </div>
<div> </div>
<div>It seems that most of the regulatory actions taken to cool the housing market have all but washed through, but despite the lower fixed mortgage rates on offer lately market activity is still awfully gummed up.</div>
<div> </div>
<div>And there's still a non-trivial possibility that the actions taken to promote financial stability, in the end, sink it. </div>
<div> </div>
<div>The economy has been stymied for some time now, with two consecutive quarters of negative GDP growth in per capita terms possibly set to be repeated for a third quarter. Consumption and retail are weak. </div>
<div> </div>
<div>It's difficult to get an accurate real-time reading of housing market turnover but many experienced commentators seem to believe it's at the lowest level on record. </div>
<div>
<br>So, what gives?</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Responsible lending: level up</span></strong></div>
<div> </div>
<div>A major part of the challenge for activity in the housing market is some of the breathtaking pedantry related to mortgage applications, which I've experienced a bit of, but often only mortgage brokers have a really good feel for. </div>
<div> </div>
<div class="separator"><img src="https://4.bp.blogspot.com/-JG7UzCC5iT4/XLruWrgS01I/AAAAAAAAvnk/ef8TSFTV3Wc2-_5hoNtClGB4brfhpKnnwCLcBGAs/s640/APRA3.jpg" width="640" height="310" data-original-height="349" data-original-width="719"></div>
<p> </p>
<div class="separator"><img src="https://4.bp.blogspot.com/-PTwCs7Ka104/XLr1vo2gdjI/AAAAAAAAvoM/d5N4y64uIc4NisobrNKGdRHTbl8wxrv0ACLcBGAs/s640/Perth.jpg" width="640" height="226" data-original-height="268" data-original-width="755"></div>
<p> </p>
<div>There's always a chance that responsible lending morphs into a nanny state mentality, and this is now almost literally becoming so in some cases.</div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-kaKMGR8IQOE/XLruXr4RJ-I/AAAAAAAAvno/FKcZTVfD1z43-VKp6V9u4ibDkXDuOrKlwCLcBGAs/s640/APRA4.jpg" width="640" height="142" data-original-height="162" data-original-width="721"></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>When lenders are stress-testing for scenarios incorporating up to the equivalent of a dozen or more rate hikes it defies belief that a homebuyer registering for Netflix or using Uber might be grounds for the refusal of a loan, but the banking Royal Commission brought this level of paranoia to the fore. </div>
<div> </div>
<div class="separator"><img src="https://3.bp.blogspot.com/-l9qWpR2REqU/XLruX6zkBoI/AAAAAAAAvns/1Sg96dEAxc8rUDuRYnDAe_yKthlm8oGDACLcBGAs/s640/APRA5.jpg" width="640" height="354" data-original-height="352" data-original-width="635"></div>
<div> </div>
<div>These sometimes amusing and apparently trivial examples are merely the tip of the iceberg in what has been at times a truly Titanic pile of administrative poppycock.</div>
<div> </div>
<div>Everyone involved in mortgage lending knows that consumer behaviour and discretionary spend changes post-purchase, so all this rigmarole is largely fruitless and may now be effectively adding to FS risks rather than reducing them. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Tipping point</span></strong></div>
<div> </div>
<div>Lower interest rates alone don't fix this; but in truth I don't know what does. </div>
<div> </div>
<div>Maybe it's the simply passage of time.</div>
<div> </div>
<div>Perhaps lenders need some assurance that they aren't going to be hauled over the coals even more than has already been the case. </div>
<div> </div>
<div>By the same token prospective homebuyers would doubtless like to see more certainty given the recent shifting of goalposts (with further changes to market dynamics now proposed by the Labor Party). </div>
<div> </div>
<div>Whatever's the case, something needs to get mortgages flowing dependably again, or else there's a risk that the measures to shore up risks in the housing market will no longer be hailed as a success, but instead blamed for capsizing it.</div>
<div> </div>
<div>
<em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em><span> </span>
</div>
</body></html>

pwargent-M4siyDbqQY

Speculative heat removed from the housing market by the credit squeeze: Pete Wargent

<html><body>
<p>The Milson Point's QE Foodstores premises have been sold for $6 million.</p>
<p>QE has other stores in Balmain, Camperdown, Darlinghurst, Newtown, Randwick, Waterloo and Waverley.</p>
<p>The shopfront at <a href="http://commercialpropertysearch.savills.com.au/0bbda22c-73bc-e811-80e6-005056816353/Sale/Milsons-Point/88-Alfred-Street" target="_blank">88 Alfred Street</a> was listed with $5.5 million hopes in November, through Savills agents David Hickey, Tom Tuxworth and Nick Tuxworth.</p>
<p>They expected interest from local, interstate and offshore investors.</p>
<p><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/2019/4/11/QE2.jpg" alt=""></p>
<p>The property has a new 10 year lease, with two five-year options.</p>
<p>On its listing Hickey said the lease and strong annual increases will attract buyers looking for secure, super-prime investments in the sub $10 million category. </p>
<p class="p3"><span class="s1">“Throughout 2018, we have seen a weight of capital chasing retail properties in prime locations, particularly in highly populated and affluent inner-urban and suburban areas," Hickey said.</span></p>
<p class="p3"><span class="s1">“Investors are certainly looking for quality over quantity in the current market, and 88 Alfred Street fits that category.”<span class="Apple-converted-space"> </span></span> </p>
<p class="p3"><span class="s1">“QE Foodstores took a strategic view on the local Milsons Point, Kirribilli, McMahons Point and Blues Point precinct when they noticed the community had been starved of a quality supermarket for a very long period of time,” Hickey said.</span></p>
<p class="p3"><span class="s1">“The business decided to venture to Sydney’s North Shore and open its ninth grocery store to cater to this pent-up demand for fresh, quality and artisan produce.</span></p>
<p class="p3"><span class="s1"><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/2019/4/11/QE3.jpg" alt=""></span></p>
<p class="p3"><span class="s1">“At 88 Alfred Street, the store benefits from being situated in Sydney’s second most-liveable suburb, only a 10-minute walk from the Sydney CBD and North Sydney.”</span> </p>
<p class="p3"><span class="s1">Hickey said QE Foodstores appealed directly to a growing number of affluent Baby Boomer and Millennial shoppers, “who shop more frequently with smaller basket sizes”.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s1">“These shoppers demand personalisation, special services and quality products, which is what QE Foodstores has strived to deliver since opening its first store 16 years ago,” he said.</span></p>
<p class="p3"><span class="s1">“The owners’ goal is to keep growing and provide a great range of products and services to many more Sydney neighbourhoods.</span></p>
<p class="p3"><span class="s1">“They are constantly on the lookout for new sites in the inner city and east, and they’re now very seriously considering additional sites on the Lower North Shore.”</span></p>
</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