<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 design-led apartments 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 Chinese investor has fought off a number of local rivals to secure a Hawthorn office building for $9.85 million.
It was on a tight 4.78% yield through CBRE.
Some four parties put in 108 bids as the price raced past the former record to post a new building rate record for the area of $13,979 a square metre.
The previous record had been the $10,578 a square metre paid for 1 Oxley Road in May. 
Located directly across the road from Swinburne University, the recently refurbished 500 Burwood Road property comprises 714 square metres of office space over two levels on a 1998 square metre site, including 21 car spaces and rear access.
It was sold fully leased to long standing tenant, Australian design and construction company Qanstruct, on an eight year lease at gross annual rental of $500,000.
The former Congregational Church proved to be a big attraction for the successful buyer.
The vendor was Qanstruct MD Mark Ruff.
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j.ballantyne1990-6AQqhLzZaK

Chinese buyer pays $9.85 million for Hawthorn office

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A local private purchaser has snapped up four adjoining terrace houses in Melbourne's Cremorne.
There was a strong contest between owner-occupiers and developers for 102-106 Stephenson Street.
It sold under the hammer for $7.1 million after bidding started from $6,300,000.
Four adjoining property owners joined forces to sell their properties as one large, 546 square metre Commercial 2 zoned development site.
The eventual land rate of $13,003 per square metre sets a new benchmark for Cremorne commercial development opportunities, Colliers suggested. 
Land values in the prime city fringe hot spots of Richmond and Cremorne, as well as nearby Collingwood and Abbotsford, have almost doubled in the last two years, from circa $5,000-$7,000 per square metre two years ago to north of $11,000 per square metre for Commercial 2 zoned land.
A nearby permit-approved, 1,579 square metre corner site at 71-93 Gipps Street in Collingwood has already attracted more than 100 enquiries and interest in the vicinity of $17 million.
It is an immediate development prospect for an 11 level, Hayball-designed office project.
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Four Cremorne neighbours combine to secure $7.1 million

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Multiple office suites spanning the whole floor of a strata titled building near Westfield in Sydney's CBD are now available for lease.
They are available to be leased either individually or interconnected through Ray White Commercial South Sydney and Henderson &amp; Horning.
The property at Level 1, 155 King Street, Sydney known as The Trust Building and formerly The Daily Telegraph building, is being marketed by Ray White Commercial's John Skufris and Henderson &amp; Horning's Will Mulvihill on behalf of a private owner with asking rents from $900 psm pa.
Retailers including Cartier, Chanel and Christian Dior surround the site with Hermes also reportedly relocating to the building.
Mr Skufris said, level 1, 155 King Street, Sydney comprises approximately 500sqm which was suitable for legal/accounting firms, medicos and jewellers.
The Trust Building was built in Interwar Commercial Palazzo style circa 1914.
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Strata office suites now leasing in Sydney CBD

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EXPERT OBSERVER
Yet another new Prime Minister in Canberra. Does this mean it’s time to check our smoke alarms? It’d be comical if it wasn’t so concerning.
The frequent changes in leadership and constant mud-slinging through the media, many people tune out of daily political news.
As prices fall in markets across the country, tuning out of politics is simply not an option for the astute property owner with much at stake in the coming election.
Ignoring Canberra and its politics can be a costly mistake as the various proposed policy changes from both the Australian Labor Party (ALP) and The Liberal Party of Australia (Liberal) camps will make a huge impact on our property landscape – affecting home-owners and investors.
The ALP unleashed a media storm when it burst out of the policy box and promised to abolish negative gearing for all properties except new housing – with a tidal wave of opposition among the investment community.
Any property owner should be very concerned about this proposal and its impact on prices.
There has been considerably less attention to other significant property-related policies that ALP has tabled such as increasing capital gains tax – which could have a monumental impact on all property sales.
Liberal’s policies have been deemed more investor-friendly – particularly keeping negative gearing in its current form and just removing travel expenses as a deduction.
A policy already implemented. So what is best for property investors – ALP or Liberal policy? There is no blanket solution and what is best will vary depending on each individual investor’s age, retirement plans and financial position.
One thing is clear – if Labor implements its new negative gearing regime – the winner will be the new housing market as any investor wanting to minimise their tax burden will snap up to new developments - new houses and new apartments.
Conversely investment in existing properties will take a nosedive as it will be far less appealing with no negative gearing benefits.
Prime Minister Scott Morrison has this week foreshadowed a “housing market crash” as a likely result of Labor’s property policies including abolishing negative gearing and halving the 50 per cent capital gains tax discount.
With an election due by the end of May next year property investors will have greater certainty about any changes to the market.
In the meantime it’s important to continue to monitor what is coming out Canberra to ensure investors are best placed to protect and grow their portfolio.
Keeping up-to-date with the proposed changes is a minefield but is best summarised in this table.
<img src="https://www.urban.com.au/images/2018/9/20/Nihilism%20table.JPG" alt="">
James Nihill (pictured above) is the Managing Director at the real estate agency Patrick Leo
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Politics of property, What does it mean for property owners: James Nihill

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EXPERT OBSERVER
Wayne Swan and Kevin Rudd spent big and spent bold, and it almost certainly kept us out of recession. <a href="https://theconversation.com/profiles/richard-holden-118107"> </a>
A little more than a decade on from the the collapse of Lehman Brothers, the largest bankruptcy in history, many of the world’s advanced economies are only now beginning to recover fully.
I was on the faculty at the University of Chicago at the time and, like many, followed the events of the 2008 US summer with a combination of interest and outright fear.
It is hard to describe how scary the two months around the Lehman bankruptcy were. Two anecdotes convey some of that fear, however.
The first was when I spoke to an economics official in the Obama administration who said: “Go get cash and bottled water. Automatic teller machines might not be working two days from now.”
The second reflects just how severely money markets froze up. Goldman Sachs – Wall Street’s most venerable firm – was largely on the good side of trades on credit default swaps, the instruments behind much of the crisis. Yet its stock price was utterly hammered. It wasn’t until legendary investor Warren Buffett sank US$5 billion into Goldman that confidence was restored.
On one day Goldman stock was down by a staggering nearly 50% in intra-day trading. It very nearly went the way of Lehman – all because of what amounted to a modern-day bank run.
<img src="https://images.theconversation.com/files/236990/original/file-20180918-158246-1o295vy.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">Goldman &amp; Sachs stock price.
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The Obama administration responded with spending (including on tax rebates for households and firms), big interest rate cuts and measures to ensure banks had access to funds. Combined, these helped avoid a repeat of the Great Depression.
When Australia splashed cash
Australia, too, spent big: A$10 billion in October 2008 and a further A$42 billion in February 2009. More than half of the second sum, $A26 billion, went on infrastructure. Another $12.7 billion was spent on cash bonuses, including $900 for every Australian on less than $80,000.
And we cut interest rates, massively, and guaranteed bank deposits.
The International Monetary Fund, the Organisation for Economic Cooperation and Development, and most good economists think what we did was essential to ensure Australia avoided a severe downturn.
Prime Minister Kevin Rudd and his treasurer, Wayne Swan, deserve a lot of credit.
Yet there are those on the conservative side of politics who claim the stimulus spending was wasteful, not that helpful, and locked in an era of higher government spending.
Wasteful? Not really
As prime minister in 2016, Malcolm Turnbull encapsulated the view that the spending was a waste when he <a href="https://www.propertyobserver.com.au/http://www.abc.net.au/7.30/interview:-prime-minister-malcolm-turnbull/7542756" target="_blank">told the ABC’s Leigh Sales</a>: “I think what shepherded Australia through the GFC successfully was the Chinese stimulus and the large amount of cash that John Howard left in the bank.”
Here’s what I think.
The Chinese stimulus helped, but China didn’t do it to help Australia. It did it to help itself, with a happy byproduct being continued demand for Australian resources.
Does Mr Turnbull really think the Chinese government was either mistaken (because stimulus spending doesn’t help) or benevolent (because it wanted to help Australia)? These are not terms normally associated with Beijing.
The “large amount of cash” left by the Howard government was indeed very important. It allowed the Rudd government to spend big without running up huge government debt. As the noted UC Berkeley economists Christina and David Romer <a href="https://eml.berkeley.edu/%7Ecromer/Reprints/Crises%20and%20Policy/Romer&amp;RomerCrisesandPolicy.pdf" target="_blank">have pointed out</a>, using evidence from 24 advanced economies, fiscal and monetary policy “space” is important in ensuring the stimulus programs work.
So, yes, Howard’s debt-free budget was important, but only because it gave the government room to spend.
There is an important point here. Namely, that prudent fiscal management through ordinary times is essential in order to build up the firepower to respond in extraordinary times.
Australia still enjoys government debt to GDP that is low by OECD standards, but its growth has been very rapid even in post-crisis years because of the structural gap between government revenues and expenditures. Both sides of politics say they are committed to narrowing it. We shall see.
Space matters
“Space” to act with monetary policy (official interest rates) is also important.
It’s the basis for much of the talk about a “new monetary policy framework” that would lift interest rates from their present lows in Australia and overseas to around 5%. It’s a goal articulately and <a href="https://www.brookings.edu/research/why-the-fed-needs-a-new-monetary-policy-framework/" target="_blank">forcefully argued for by former US Treasury Secretary Larry Summers</a>. Getting there would give central banks the firepower they might need.
These lessons have been learned to varying degrees, but are now thankfully at least part of the mainstream debate.
And regulation
One thing that everyone should have learned from the financial crisis in general, and Lehman in particular, is the need for effective regulation of financial institutions.
The combination of massive leverage, opaque financial instruments and radical interconnectedness of financial firms in the US was a disaster waiting to happen.
In many ways it still could be.
Republicans in the US want to dramatically roll back the Dodd-Frank Wall Street Reform and Consumer Protection Act introduced by President Obama in response to the financial crisis.
Although far from perfect, it helped de-risk the US financial system.
In Australia the failings of financial regulators play out every day at the Hayne Royal Commission, in excruciating detail.
It entitles us to ask if Australian regulators can’t prevent outright theft by financial institutions, how equipped are they to prevent more complicated transactions that might put the financial system at risk?
The answer is: not very.
We’ve learned some things
A decade after Lehman it’s fair to say we have learned lessons.
We know how to use big and bold fiscal (spending) policy and monetary (interest rate) policy to create a virtuous circle of beliefs that can pull us out of a downturn.
And we know that we need to reload both fiscal and monetary policy in the good times so we are ready for the bad times.
But on financial regulation the US might be about to go backwards, and we never really went forwards.<img src="https://counter.theconversation.com/content/103514/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;">
Richard Holden is a Professor of Economics and PLuS Alliance Fellow, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. 
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The GFC and me, ten years on, what have we learned? Richard Holden

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EXPERT OBSERVER
CoreLogic’s recently released Pain and Gain report highlighted a growing divergence between houses and units for loss making resales. 
Unit markets recorded a higher proportion of loss making resales relative to houses across every broad region of Australia over the June quarter.  
The latest CoreLogic Pain and Gain report provides a summary of gross profit and loss making resales across the country. The results show a consistent and long underperformance across the unit sector, and more recently, a growing divergence between the proportion of houses and units reselling at a gross loss. The June quarter report revealed that 14.3% of units that resold across the capital cities transacted at a gross loss; roughly double the rate of loss making house resales. Across the combined regional areas of Australia, loss making unit resales comprised 16.1% of transactions while a lower 10.3% of houses resold at a gross loss.
Every capital city and rest of state region across the country has seen the unit sector record a larger proportion of loss making sales across the unit sector compared with detached housing, however the differential is substantial in those cities where unit values have fallen more materially.
Across the capital cities, Darwin stands out as showing the highest proportion of loss making unit resales, with 71% of units reselling at a loss over the June quarter. Considering Darwin unit values have fallen 44% since peaking in May 2010, the high rate of loss on resales should come as no surprise; in fact Darwin unit values are back to the same level they were in February 2005. Darwin house values haven’t fall any where near as much, down 11% since peaking.  
Regional Western Australia has recorded the second highest level of loss making resales for units (56.7%) followed by Perth at 47.8%. Both regions have seen unit values fall substantially more than house values. Since peaking in January 2008, regional WA unit values are down 47.5% and are now back to levels seen in 1988. In Perth, unit values are 18.2% lower after peaking in July 2013 and are now worth the same value as they were in May 2006.
Amongst the capital cities, Brisbane also stood out for a high rate of loss making unit resales, with 29.2% transacting at a gross loss over the quarter compared with only 4.1% of houses selling at a gross loss. Brisbane unit values are back to where they were in August 2007 after declining by 10.8% from their 2008 peak.  
The lowest rates of loss making unit resales were in those regions where unit values have shown more buoyant conditions. Hobart recorded the lowest portion of loss making unit resales, with only 2.9% reselling at a gross loss over the June quarter. Hobart unit values are at a record high after recording solid capital gains over the past few years. It was only five years ago, after a long period of weak housing market conditions, when 25% of Hobart units were reselling at a gross loss.  
The Sydney unit market was showing the second lowest proportion of loss making unit resales over the June quarter. Despite rising levels of unit supply, only 3.5% of Sydney units resold at a gross loss over the quarter. Unit values are down 2.6% since peaking in November last year, and values remain 43% higher relative to five years ago. With a recent history of such strong capital gains, the vast majority of Sydney unit owners are still in a positive value position relative to their purchase price, however as values continue to slip lower and supply levels rise, we are likely to see loss making resales rise.
Click <a href="https://www.propertyobserver.com.au/images/2018/9/24/tim%20lawless%201.jpeg" target="_blank">here</a> to enlarge
 <img src="https://www.urban.com.au/images/2018/9/24/tim%20lawless%201.jpeg" alt="">
There are a variety of factors that could be contributing to the higher proportion of loss making sales across the unit market. 
For starters, units are more likely to be owned by investors. Around 68% of units are investor owned, 51% of townhouses are owned by investors and only 22% of houses.  CoreLogic Pain and Gain data shows investor owned dwellings have a higher propensity to resell at a loss which is probably attributable to the fact that investors can take advantage of taxation benefits such as offsetting their losses against future capital gains.  
Unit markets can be more prone to oversupply. This trend has been evident across the Brisbane and Melbourne inner city markets to different extents.  Focusing on some of the key inner city unit markets, Brisbane’s inner city recorded 32% of unit resales at a loss over the quarter and Melbourne’s inner city recorded 22% at a loss. Unit construction has been winding down across Queensland since late 2016, but remains at record levels across Victoria and close to record highs in New South Wales. With unit values now falling in Sydney and Melbourne and the pipeline at, or close to record highs, its likely that loss making resales will diverge further in these markets.
There is also the factor of the underlying land value. Even though dwelling values are sliding in some markets, land prices have generally held firm or continued to trend higher.  Detached houses have a stronger relationship with land values which is likely contributing to the long run trend of higher capital gains for houses relative to units.
Click <a href="https://www.propertyobserver.com.au/images/2018/9/24/tim%20lawless%202.jpg" target="_blank">here</a> to enlarge
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/24/tim%20lawless%202.jpg" alt=""> 
Tim Lawless heads up the CoreLogic RP Data research and analytics team
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Unit owners are more likely to record a loss at sale: Tim Lawless

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EXPERT OBSERVER
Whenever a major research firm publishes its latest data on the movement in capital city house prices, media presents that data as fact. 
It also, often, makes sweeping conclusions about the meaning of the figures, relative to affordability, the state of the market and the impact on consumers.
The next firm to publish data will receive the same media treatment: the figures are factual, therefore this is what is means for the market and for buyers and sellers.
The problem is: the two sets of data are quite different and, in some cases, contradictory.
By the time figures have been published from five different sources - the ABS, the REIA, SQM Research, Domain and the ever-present but often-puzzling CoreLogic are regularly featured - consumers who have been absorbing all the data will be massively confused and terribly misinformed.
It’s rare for all sources to agree on how much city markets are rising or falling - or, indeed, whether markets are rising or falling.
According to CoreLogic’s latest data, Melbourne house prices are lower than 12 months ago - but both the ABS and SQM Research disagree. They both have Melbourne about 3% higher than a year ago.
It’s a similar situation with Adelaide: SQM says the Adelaide housing market is down a little, but the ABS and CoreLogic says it’s risen marginally.
All three sources believe the Hobart market has risen in the past year, but there is considerable disagreement on how much: CoreLogic says 10.7%, the ABS 15.5% but SQM claims it’s only 6.4%.
There’s a substantial difference there: SQM says there’s only moderate growth in the Tasmanian capital but the official government source, the ABS, portrays a boom market.
CoreLogic tells us the Perth housing market is still in the negative but SQM claims that the downturn is over and prices have started to rise again.
Canberra is either the strongest capital city market in the nation, up 10.4% in the annual terms, or it’s rising only moderately at 2% or 3% - depending on whose figures you believe.
SQM says the average scenario across the eight capital cities is an annual rise of 2.6%, but the ABS says there’s been no meaningful change, while CoreLogic says the national market is down 2%.
Newspaper headlines keep telling that prices are falling across Australia, because they tend to publish the CoreLogic figures, but both the ABS and SQM disagree.
Both those sources have prices higher than a year ago in five of the eight capital cities, and SQM has the national average up 2.6%, but you get quite a different conclusion is you focus on the CoreLogic data.
The only matters on which the three major sources broadly agree is that the Darwin housing market is down about 4% and that the Brisbane house market is up by 1% or 2%.
The message for consumers is: don’t take price data published by media too seriously - and don’t base big financial decisions on the published data.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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How to analyze city property price data: Hotspotting's Terry Ryder 

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Australia remains a favoured hotel investment market due to its economic performance, stability, transparency and governance, Gus Moors, Colliers International’s Head of Hotels, says.
“With more than $1 billion worth of hotel assets currently being marketed or in play, we expect transaction activity to increase in FYE2019.”
Colliers International’s Capital Markets Hotel Investment Review found Australian hotel transaction activity slowed in FYE2018, with volumes easing to $1.34billion after a record three years.
Deal flow increased, however, with 35 transactions above $10 million concluding throughout the year. This compares to 30 transactions in FYE2017. In New South Wales, $350 million worth of hotel assets changed hands, followed by Queensland ($347 million) and Victoria ($343 million).
Australian investors accounted for 63.7% of asset trades in FYE2018, considerably higher than the 16.5% recorded in FYE2017.
Investors from Mainland China fell behind the rest of Asia as one of the more dominant sources of inbound capital, accounting for only 1% of transactions over the year, as capital restrictions continued to bite.
“This trend is likely to continue, with South East Asian investors dominating the offshore investment landscape driven by renewed interest in diversification, both in terms of location and product,” Mr Moors said. “
Colliers International found that for the first time for more than a decade, the number of rooms opening throughout the year surpassed the number traded with investors focused on the development of new rooms.
In FYE2018, almost 6,500 new rooms came on line in the ten major markets with an estimated value of more than $2 billion.
Colliers International estimates there is a weighted accommodation pipeline of around 27,000 rooms across Australia, with almost half of these new rooms currently under construction and 7,000 rooms proposed.
These are thought likely to commence construction in the next six months or are government mandated projects.
“All markets, except for Darwin and the Gold Coast, are seeing an accelerated pipeline with openings expected to peak in 2019 and 2020,” Ms Wales said.
“Development activity is greatest in Hobart, Melbourne, Adelaide and Perth with increases set to expand the existing supply base by more than one third.”
Mr Moors said tourism was becoming increasingly important as Australia transitions to a more diversified service-based economy, and had the potential to be Australia’s fastest growing industry.
“Globally, travel continues to take a larger share of consumer spending and visitor expenditure in Australia is projected to continue to grow at a strong rate,” he said.
“The influence of demographics presents new opportunities for the hotel sector, as developers and brands seek to remain ahead of the curve in catering to both established and emerging generations of corporate employees and leisure travelers.
He concluded by noting, "strong growth in inbound tourism, particularly from China, increased leisure travel by wealthy retiring baby boomers and catering to Millennials as the largest segment of the workforce are all factors which investors should consider over the coming year.”
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Investment in Australian hotels on the rise in 2018: Colliers International

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<div>All nine commercial tenancies at the new beachside development, The Hedge at Buddina, have sold for $5 million to local investment group, Sunshine Coast Private Commercial.</div>
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<div>Off Market Real Estate principal Chris Cameron who negotiated the sale said the development’s commercial precinct had drawn a flood of local and intestate interest.</div>
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<div>He said, “its exceptional quality and proximity to schools, bus links, major shopping and professional services including the $2 billion Kawana Health precinct make it an excellent investment.”</div>
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<div>The majority of the nine tenancies include an outdoor terrace area and range in size from 47 sqm to 74 sqm.</div>
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<div>“Rising economic confidence for the region is pushing up residential sales, and on the back of that the commercial sector is performing well,’’ Mr Cameron said.</div>
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<div>When completed, The Hedge at Buddina located at 5 Bermagui Crescent, Buddina, will offer 97 apartments presenting a floor area up to 158 sqm over five storeys.</div>
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<div>It is located an hour north of Brisbane by road.</div>
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<div>The Hedge at Buddina benefits from a regional development strategy unfolding over the next two decades which will see the economy triple to $33 billion, the creation of 100,000 new jobs in high end industries and household incomes exceeding the Queensland average.</div>
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<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/19/Kawana.jpg" alt=""></div>
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<div>The project adjoins the newly upgraded Kawana Shopping world (pictured above) which has been earmarked for further major improvements in the near future including a Gold Class cinema complex and new specialty shops.</div>
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The Hedge at Buddina commercial tenancies sell for $5 million

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Investors and owner occupiers continue to seek retail properties in Melbourne’s inner north in big numbers, with another High Street shop and dwelling in Thornbury changing hands under the hammer.
Fitzroys agents Chris Kombi, Ervin Niyaz and Terence Yeh sold 917 High Street for $1.255 million, on behalf of a family that had held the asset for more than 50 years.
An owner occupier purchased the two-storey building of 240sqm, which has a ground floor shop with a short-term lease and first-floor, two-bedroom apartment, on a 224sqm site.
Kombi said the campaign, which attracted more than 120 enquiries, and fierce competition between five bidders at the auction reflected the ongoing demand for assets in the area.
“The building was offered in its original condition, presenting prospective buyers the chance to make their mark on one of inner Melbourne’s fastest-growing retail and lifestyle precincts, or refurbish and capitalise on rental uplifts.”
Shop and dwelling properties on High Street have been trading at healthy numbers. Kombi, Niyaz and Yeh recently sold the 785 High Street corner site for $1.805 million at a 2.4% yield at auction, following a campaign that saw 150 enquiries; as well as 740 High Street for $1.385 million at a 2.9% yield, which netted more than 100 enquiries.
Yeh said ongoing gentrification of Melbourne’s inner north had brought multiple medium and high-density developments, bringing excellent rental growth potential as the immediate residential catchment grows, as well as creating heightened demand for retail services.
“Growth of the immediate catchment has also accentuated the extended trading cycles of these centres, adding to their vibrancy, and Thornbury has enhanced its reputation as a trendy and popular destination for eateries and bars.”
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