<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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The first half of 2018 has seen a major shift in Adelaide's retail environment, according to the latest report from Herron Todd White (HTW).
The financial valuers stated that for the first time in 16 years South Australia has a Liberal Government, who have long advocated for extended trading hours.
Currently, shops in the Adelaide CBD or tourist precinct are allowed to trade during public holidays and these factors among others may assist brick and mortar retail to compete with the online space.
Infrastructure spending has also continued in South Australia following the change of Government, noted the report.
The Torrens to Torrens, Darlington Upgrade and Northern Connector, which all form part of the government’s North South Corridor are still undergoing construction and are a combined expenditure of $2.3 billion.
There has also been the approval of the current construction of a new Bunnings Warehouse on South Road in Edwardstown, creating a 17,008 square metre super store.
The $45 million Bunnings outlet will be completed early next year.
The report notes that "a part of the infrastructure spending taking place is a planned $174 million upgrade of the Oaklands Crossing (rail/road grade separation), which surrounds the Westfield Marion Shopping Centre".
"True to form, the bulk of the retail development is occurring in the Adelaide CBD, which has seen a sharp increase in the amount of residential accommodation under construction."
In January, it was announced that the $40 million redevelopment of Rundle Mall Plaza will house the new tenant, H&amp;M, across four storeys, Rundle Plaza was constructed in the 1960’s for David Jones. 
"In respect to Retail growth, the story over the last few years has been heavily weighted toward supermarkets such as Aldi who have opened 23 stores since entering the market in 2015," stated the valuers.
The 23rd was a centre at 209 Port Road, Aldinga, anchored by Aldi which was completed in January 2018.
There are more on the way with Aldi recently securing another site in Adelaide’s South East suburb of Blackwood, with the purchase of the Blackwood Village Shopping Centre for $5.5 million.
The Westfield Tea Tree Plaza Shopping Centre is also being extended and there are upgrades planned for Westfield Marion, which will take place in 2019.
Despite this, research undertaken by numerous outlets is positive and the retail trading environment seems to be improving in South Australia with retail spending being the second highest in the country in February 2018, reaching 3.7% compared to the national average of 2.7%, the report concluded.
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j.ballantyne1990-6AQqhLzZaK

Adelaide's new north-south corridor constructions worth $2.3 billion dollars: HTW 

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The quickest path for first home buyers to purchasing a house in Greater Hobart is Brighton, according to a report released this week by Domain.
<img src="https://gallery.mailchimp.com/b16c0b957ea98f662ab985606/images/b7d9b0c3-df73-4669-a275-9750aee501f7.png">
For those looking to buy a home, Greater Hobart is one of the most accessible capital cities in Australia with the lowest entry price for houses.
"However, when LGAs are considered, accessibility is driven by the affordable outskirts," the report said.
The LGA of Hobart takes approximately 6.3 years to save for an entry price home deposit, which is almost on par with the average time to save for a deposit in Greater Sydney (6.7 years).
<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/2018/6/29/Hobart%20Home.jpg" alt="">
Indicative of Brighton's price potential, 23 Andrew Street, Brighton (pictured above) the two bedroom, one bathroom house sold for $230,000 last month.
However even though Greater Hobart requires the shortest time to save of all the capital cities, this has increased by three months for houses and four months for units compared to last year, a result of a strong, growing market outpacing wage growth.
<img src="https://gallery.mailchimp.com/b16c0b957ea98f662ab985606/images/965aee85-8e99-4381-9cbb-e52d9cb42f11.png">
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Brighton ranked the quickest FHB path to house ownership in Greater Hobart: Domain

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EXPERT OBSERVER
Since Donald Trump was elected President back on November 8, 2016 we have focused on whether we will see Trump the rabble-rousing populist or Trump the business-friendly pragmatist.
Despite lots of noise – particularly via Trump’s frequent tweets – for the most part Trump the pragmatist has dominated so far.
But we have clearly seen a swing to Trump the populist this year – raising risks for investors.
So far Trump has been good for markets In the period since his election US shares are up 34%, global shares are up 28% and Australian shares are up 21%.
While the strength in share markets would have occurred anyway given stronger global growth, US tax reform, fiscal stimulus and deregulation have clearly helped and contributed to the US share market’s outperformance.
While US tax reform and tax cuts have received much focus, the Trump administration’s focus on deregulation is equally as significant with the US under Trump seeing the least amount of new economically significant regulation since the Reagan Administration in the early 1980s. 
In terms of tax reform and deregulation the Trump Administration has much in common with Reaganomics.
Populism starting to dominate pragmatism
This year though the balance has shifted towards a greater emphasis on populist policies – notably protectionism and criticism of China, the return to sanctions on Iran and arguably recent criticism of the Fed for raising interest rates and pushing up the US dollar.
There are several reasons for this shift in emphasis: the pro-business element of Trump’s policies were mainly completed last year; it’s a mid-term election year so Trump is back in campaign mode; Trump’s approval rating has improved despite this year’s controversial policies suggesting firm support for them from his Republican party base; and the strength of the US economy has also emboldened him.
In fact, it could be argued that last year was all about bolstering the US economy ahead of this year’s more controversial policies.
The main risks around President Trump centre around five key issues: the rising risk of a full-blown trade war; the expanding budget deficit; the risk of interference in the Fed; the return of sanctions on Iranian oil exports threatening wider Middle East conflict; and the risk Trump ultimately comes into trouble with the Mueller inquiry.
We will now look at each of these in turn.
Rising trade war risks
This issue has been done to death but won’t go away.
So far the tariff increases actually implemented amount to just 3% of total US imports.
While this has been met with proportional retaliation by other countries it’s a long way from a full-blown global trade war.
However, the issue is what happens next.
Another $US16bn of Chinese imports will likely be hit with a 25% tariff soon and the US is readying a 10% tariff on another $US200bn.
Trump is also threatening to raise tariffs on all $US550bn of Chinese imports.
China is threatening to retaliate proportionally although it will have to be with other means as it only imports $US130bn from the US.
Trump is also threatening to put tariffs on auto imports and looking at Uranium.
News of a deal between the US and the EU to work towards zero tariffs on industrial goods is good news in terms of heading of a full-blown trade war between the two, but negotiations have a long way to go.
There was hope of a deal with China in May – with Trump initially crowing about a May 20 trade deal, but since then both China and the US have dug in with Trump tapping popular support for protectionism and anti-Chinese sentiment.
So, the trade threat could get still worse before it gets better which means it risks taking the edge off economic growth.
Modelling by Citigroup of a 10% tariff hike by the US, China and Europe showed a 2% hit to global GDP after a year.
Of course, we are not seeing a tariff hike on all goods but the impact could still be significant if negotiations with the EU and China fail and all the tariffs being talked about are implemented.
There are a few offsetting factors.
First, China is moving to provide stimulus to support growth.
Second, much of Trump’s approach still looks designed to apply “maximum pressure” to reach a negotiated outcome – and so far so good in relation to Europe.
And Trump knows that the costs to US workers (from soybean farmers to Harley Davidson workers) and consumers will escalate as more tariffs are imposed.
So, our base case remains that some form of negotiated solution will be reached, but in relation to China this may not occur until next year.
Interference in the Fed and US dollar Trump’s recent comments criticising Europe, China and others for helping drive the US dollar up and the Fed for raising interest rates naturally raises concerns that he will intervene in foreign exchange markets and interfere with the Fed.
The comments lack economic logic – if “making America great again” means stronger US economic growth then it also means higher US interest rates and a higher US dollar – and maybe the Fed came in for a serve after Fed Chair Powell observed that “countries that have gone in a more protectionist direction have done worse”!
Trump’s annoyance may have been triggered by the slide in the value of the Chinese Renminbi.
While this looks to be mainly a strong $US story (as the $US is up around 7% against its low earlier this year against a range of currencies compared to an 8% gain against the Renminbi) the Chinese authorities seem quite content to let it fall for now and this will obviously offset Trump’s tariffs on Chinese goods.
Despite all this it’s unlikely in the short term that Trump will act on his opinions on rates and the $US.
US Treasury Secretary Mnuchin said the administration would “not interfere with the decisions of the Fed or move to manipulate the value of the dollar.” Trump is well known to be a high debt/low interest rate guy so it’s no surprise he is not happy with rising rates.
But the Fed answers to Congress, has a mandate to keep inflation down and will do what it sees best – which with strong growth and at target inflation means returning interest rates to more normal levels.
However, longer term there is a risk that Trump will weaken the institution of an independent central bank targeting low inflation and may also seek to return to a more interventionist approach regarding the US dollar, particularly if America’s trade deficit refuses to fall.
Based on past experience such political intervention would risk much higher inflation which would be a big negative for investment assets as the revaluation that occurred as we moved from high inflation to low inflation would reverse.
Fortunately, we are not there yet.
 The expanding US budget deficit
It’s been the norm for the US budget deficit to blow out when unemployment rises (as tax revenue falls and jobless claims go up) and decline when unemployment falls.
Thanks to Trump’s fiscal stimulus it’s now blowing out when unemployment is collapsing and looks to be on its way to 5% of GDP.
This raises three risks. First, it may mean higher than otherwise interest rates and bond yields as the Fed may have to raise rates more than would otherwise be the case to stop the economy overheating and the Government’s competition for funds results in higher bond yields. 
So far there is not a lot of evidence of this with US bond yields remaining relatively low – presumably held down by low global bond yields and trade war fears – but its still a risk as US inflationary pressures rise.
Second and more fundamentally it begs the question of debt sustainability when the next recession arrives given US public debt is already around 100% of US GDP.
Finally, US fiscal stimulus by adding to the US savings-investment imbalance is adding to the US trade deficit and so is completely inconsistent with his trade policies.
Even if there was a completely level playing field on world trade America will still have a trade deficit!
The return to sanctions on, and tensions with, Iran Perhaps a big surprise this year for some has been that President Trump looks to have swapped a half decent deal with Iran for a dodgy one with North Korea.
While the latter holds out the hope of (maybe) reducing the threat of a nuclear attack on the US, the return to sanctions and tensions with Iran risks higher oil prices. S
ince the lows of 2015 oil prices have increased by 70% reflecting increased demand and OPEC’s 2016 cutback.
Global stockpiles and spare capacity have been rundown and supply from Libya and Venezuela is uncertain.
Our base case is that demand growth will be more constrained from here and that a ramp up in US shale oil production will help contain oil prices around $US70-75 a barrel.
The risk though is that the loss of around 800,000 barrels a day of Iranian oil exports and the renewed risk of wider conflict in the Middle East associated with Iran (eg, if Iran closes the Strait of Hormuz through which 20% of global oil supply moves in retaliation against US sanctions) results in higher prices.
The Mueller inquiry into Russian links
Our view in relation to the Mueller inquiry remains that unless Trump has done something very wrong the Republican controlled House will not move to impeach him and even if a Democrat controlled House post the mid-terms did, the Senate will not have the necessary two thirds of votes to remove him from office.
However, his sensitivity over the issue, along with his comments seemingly favouring Russian President Putin’s word over US security agencies does remind a bit of Nixon in relation to Watergate.
So his removal cannot be ruled out.
But this would just mean VP Mike Pence would take over with basically the same economic policies (but with less tweet noise) and economic conditions are stronger than in 1974.
Trump tweet noise
The risks around Trump are real and need to be watched carefully.
But Trump generates a lot of noise and much of it is contradictory and confusing – in the last week Trump tweeted “Tariffs are the greatest” only to tweet 12 hours later that “I have an idea for them. Both the US and EU drop all tariffs” – and often reflects bluster ahead of negotiations – recall his “fire, fury and frankly power” threat to North Korea.
So the best approach for investors in relation to Trump is to turn down the noise.
Dr Shane Oliver is the Head of Investment Strategy and Chief Economist for AMP Capital
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Trumponomics: Shane Oliver

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GUEST OBSERVATION
Not a week goes by without a news story (or a few) about people losing their jobs to robots, or the potential effects of a rapidly changing labour market. We are told repeatedly about how many jobs are going to be lost. Both unskilled and skilled jobs are predicted to disappear.
These risks are no doubt real, if uncertain in their magnitude. But these prognoses are largely the work of academics and economic forecasters. How do Australians feel about their job prospects in an age of automation? Rather than robots, the 25th ANUPoll finds our greatest concerns are the risks posed by poor management and jobs going overseas.
The ANU Centre for Social Research and Methods with the Social Research Centre recently asked a representative sample of more than 2,500 Australians about their anxieties related to the future of work. The ANUPoll finds that Australians are reasonably sanguine about their current jobs. However, we are concerned about finding employment in the future if we lose our job.
Pointedly, Australians are more concerned about the threats posed by poor business management and international workers willing to work for lower wages than about the prospect of our jobs disappearing through automation. To put this another way, we are more worried about the globalisation of employment and trade than about competition from robots.
What did we ask and what did we find?
A core question in this ANUpoll is: “Thinking about the next 12 months, how likely do you think it is that you will lose your job or be laid off/have to lay off employees or close the business?”
The overwhelming majority surveyed believe it is “not at all likely” (44.9%) or “not too likely” (42.8%).
Australian workers are quite comfortable with their current job security. But the level of comfort varies by sector of employment.
<img src="https://images.theconversation.com/files/229681/original/file-20180728-106524-57rt3d.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Workers in the arts and recreation sector feel the most secure: 62.5% believe it’s “not at all likely” they will be laid off or need to lay off employees. At the other end of the spectrum, only 25.8% of workers in the electricity, gas, water and waste industries think it’s not at all likely.
We also asked workers: “If you were laid off how easy would it be for you to find a job with another employer with approximately the same income you now have?”
More than half – 54.6% – say finding an equivalent new job would be “not easy at all”. Only 10% believe it would be “very easy”.
Responses to this ANUPoll suggest Australian workers feel largely comfortable about their current employment but are less optimistic about their prospects should they become unemployed.
Sources of job insecurity
Workers may feel insecure about their employment for many reasons. We asked Australian workers about their level of concern about six different potential threats to their job.
<img src="https://images.theconversation.com/files/229682/original/file-20180728-106524-16s9nxv.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
The most common concern is that poor management of the company that employs them will lead to losing their job, with 14.7% “very concerned” by this threat and 27.6% “somewhat concerned”. This is followed by: their overall industry is shrinking; their employer might find someone else in Australia who is willing to do the job for less money; and their employer might finding someone overseas who is willing to do their job for less money.
People are least concerned that employers may use machines or computers to replace human workers. Only 8% are “very concerned” and 9.8% “somewhat concerned”.
This is followed by an inability to keep up with the technical skills needed to do their job, with 6% “very concerned” and 15.2% “somewhat concerned” about this.
Why should we be concerned about the future of work?
The labour market is no doubt changing. New occupations are being created as others become more precarious.
Occupations that rely on creativity or human-to-human interaction are both being developed and expanding their share of the labour market. Those based on routine tasks, even complicated ones, are set to employ fewer and fewer workers.
Labour markets have always adjusted to new circumstances. However, we can reasonably argue that the current transformation of work will be more comprehensive and more rapid than before. This is at least partially due to a confluence of significant trends: increased computing speed, decreased computing costs, greater network speed and capacity, increased availability of data, the lessening of some barriers to international trade, and political and economic change in countries with large skilled and semi-skilled workforces.
These changes are having political ramifications. Voters’ anxiety about the labour market and their job prospects was significant in the election of Donald Trump in the US, Brexit in the UK and the increased success of populist parties and platforms in many countries.
What to do about job security
Attention is increasingly shifting from merely describing trends in job security and the future of work to understanding the attitudes and anxieties of the current and future workforce. These attitudes will help determine the effect of labour market change (perceived and actual) on the subjective well-being of the population. Attitudes to job security and the future of work also may affect people’s receptiveness to related policy proposals.
How to respond to the public’s views on job security depends on how accurate you think those perceptions are. There are many suggested policy responses. Examples include a universal basic income and re-regulation of the labour market.
<img src="https://counter.theconversation.com/content/100728/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">If you think the perceptions identified in the recent ANUPoll are a reasonable assessment of the risks to people’s jobs, then the focus should be at least as much on outsourcing and management practices as on skills mismatch and automation. If you think the public is underestimating these latter potential threats and under-investing in the retraining and skills development that would reduce their negative consequences, then greater public attention might be justified.
Nicholas Biddle, Associate Professor, ANU College of Arts and Social Sciences, Australian National University
Jill Sheppard, Lecturer, School of Politics and International Relations, Australian National University
Matthew Gray, Director, ANU Centre for Social Research and Methods, Australian National University
This article was originally published on The Conversation. 
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Australians worry more about losing jobs overseas than to robots

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EXPERT OBSERVATION 
The Household Income and Labour Dynamics in Australia (HILDA) report indicates a rise in housing stress so now is not the time to slow down housing production.
The rise in housing stress in Sydney from around 10% in 2005-08 to 13% in 2013-16 needs a response from the housing market.
Clearly the price of housing has risen dramatically in the last decade and this has created problems for the lowest 40% of income earners who spend over 30% of their income on housing.
The best way for the housing industry to help is to ensure there are lots of new homes built at a range of affordability levels.
Housing supply needs to be encouraged by councils and the state government but a number of recent decisions by the NSW Government in a pre-election environment will have the effect of reducing supply dramatically.
The government has allowed 50 NSW councils to defer a terrace house code for a year, stopped planning proposals in Ryde for two years and pulled back from Planned Precincts on the Sydenham to Bankstown rail corridor.
The result of these back-downs from previous policy will be to slow down housing supply and therefore push home prices up again.
The Urban Taskforce is keen to assist with the provision of more affordable housing in line with the direction taken by the NSW Government agency Landcom.
The Landcom approach uses the Affordable Rental Housing SEPP to provide a percentage of affordable homes for a 10-year period. With a reasonable uplift in floor space we believe that thousands of affordable rental apartments could be provided across Sydney.
The supply of affordable homes must be an economically viable component of the overall housing supply system in NSW.
Sydney’s housing problems can only be solved in two ways.
The first is for the NSW Government to fund affordable and social housing and the second is for the private sector to be given incentives to provide affordable housing. 
Sydney’s future housing supply will need a combination of government and private sector commitment to ensure a diverse range of housing is produced.
Chris Johnson is chief of the Urban Taskforce.
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High housing stress in Sydney needs more housing supply: Chris Johnson 

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Savills Australia has appointed industry heavyweight Michael Fenton to head up the business' national Industrial &amp; Business Services division.
The announcement came as part of a country-wide company restructure.
Michael Fenton returns to Savills following more than nine years at JLL, where he operated as the company's Australian Head of Industrial and New South Wales managing director.
Michael Fenton has been involved in several major transactions totalling more than $4.5billion, including the recent $1.073 billion sale of the GIC Australian Logistics Portfolio to Ascendas REIT, the $253 million sale of the Coles Chilled Distribution Centre at Eastern Creek to Mapletree Logistics, and the $303 million sale of the Equity Commonwealth Portfolio to Propertylink.
He brings more than 24 years of experience, including senior roles at Dexus and CBRE.
Savills Australia &amp; New Zealand's chief executive officer, Paul Craig, said he was excited to welcome Michael Fenton to the Industrial &amp; Business Services division, which is one of their core disciplines.
"Michael's track record is the perfect platform to strengthen our already high-performing Industrial business and drive the team to win a greater market share."
He will be based out of Savills Australia's Sydney office.
"I am looking forward to providing our clients with a seamless and best-in-class service by mobilising the strength of national industrial business across all disciplines, and leveraging the strong connectivity with the global business, particularly in Asia," Mr Fenton said.
The appointment follows Savills Australia's national restructure, which will see the company shift from its current state-based model to a national business model from August 1.
Mr Craig said the change was part of the business' three-year strategic plan to implement a national capability to operate more efficiently and respond better to clients' needs.
"We're looking forward to watching our people flourish under this new structure, and are confident it will help us attract and retain the highest-level talent in the months and years to come," he said.
Mr Fenton will start with Savills Australia on August 13.
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Industrial powerhouse signs on to Savills Australia

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The lowest yielding sale at commercial auctions this week was the $2.68 million sale of the retail property leased to The Coffee Club in Redcliffe, Brisbane.
It sold at a net yield of 5.88 per cent.
The retail property in <a href="https://www.realcommercial.com.au/property-retail-qld-redcliffe-502867550" target="_blank">Redcliffe</a> (pictured above) is leased to The Coffee Club on a seven-year lease with another seven-year option.
It last sold at $1.75 million in 2006.
The waterfront property at 171 Redcliffe Parade will bring in about $156,000 – excluding GST – starting from September 1.
The Coffee Club was established 1989 and currently operates 400 stores in nine countries
The oceanfront reserve freehold property overlooking Redcliffe Pier offered long term redevelopment potential to 12 storeys (STCA).
The premises occupy 332 sqm on the 405 sqm block – plus exclusive use of street front alfresco dining area
There is rear lane entry accessing parking for up to six vehicles.
There are views to Moreton Island at the high traffic Brisbane seaside tourism precinct.
The neighbouring tenants include Chemist Warehouse, Vast Interiors, Subway and Banjo's.
The tenant pays all outgoings as per lease and 3% per annum rental increases.
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The Coffee Club in Redcliffe, Brisbane sold at a net yield of 5.88 per cent

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<div>Annual credit growth slowed to 4.5 per cent as at June 2018, well down from 5.4 per cent a year earlier, according to the Reserve Bank's latest Financial Aggregates. </div>
<div> </div>
<div>Broad money growth fell to an anemic 1.9 per cent year-on-year in June - the lowest level since Bobby Brown was #1 in the Australian charts with Humpin' Around in September 1992 - a disagreeable image I'm sure you'll agree (and the credit aggregates weren't too flash either).</div>
 
<div><img src="https://4.bp.blogspot.com/--MhvxBg4fw4/W2AWC6XtIbI/AAAAAAAArSs/5Y5zgLbG2z4cn2rQlU91uA4FfacJWXP7QCLcBGAs/s640/RBA2.jpg" width="640" height="372" data-original-height="806" data-original-width="1384"></div>
 
<div>Personal credit shrank 1.3 per cent year-on-year, and the annual growth in business credit slowed to just 3.2 per cent.</div>
<div> </div>
<div>Housing credit held up reasonably well at 5.6 per cent.</div>
<div> </div>
<div>The monthly growth in mortgages was all driven by owner-occupiers, with total investment credit actually declining for only the third time since these records just before Bobby Brown. </div>
<div> </div>
<div>With more investors also now switching to paying down principal, investor credit as a share of total housing market outstanding loans fell to 33.5 per cent, which puts investor market share broadly back in line with the average level seen over the past 18 years since June 2000 of 33.2 per cent. </div>
 
<div><img src="https://3.bp.blogspot.com/-j57Ykdonboo/W2AWC8rQffI/AAAAAAAArSo/igt0b2G41KgtCLYL9WArzYDP-iq1U03YwCEwYBhgL/s640/RBA1.jpg" width="640" height="350" data-original-height="797" data-original-width="1452"></div>
 
<div>Although housing credit as measured here is slowing, the APRA ADI figures also released today grew at a faster clip, implying in turn that non-ban lenders are picking up some of the slack. </div>
<div> </div>
<div>Of of the larger players Westpac recorded solid growth in its home loan book, while Macquarie, Commonwealth Bank, and NAB notched higher totals for investment loans for the month of June.</div>
<div> </div>
<div>In saying that, NAB's investor loan book has recorded only 2 per cent growth over the past year and CBA and ANZ are in negative territory, so there is potentially ample headroom for more investor lending to return forthwith (the 10 per cent growth cap has been shelved as redundant). </div>
<div> </div>
<div><img src="https://4.bp.blogspot.com/-B8BLQUx19Os/W2AcFelOndI/AAAAAAAArTE/dx-Gm0xyewsozM30UPyib3Pog-EQZBE8QCLcBGAs/s640/A1.jpg" width="640" height="374" data-original-height="802" data-original-width="1369"></div>
<div> </div>
<div>Overall, housing credit still seems to be flowing freely enough, but the economy really needs to start generating household income growth to get things moving again. </div>
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Credit strangle continues for property investors: Pete Wargent

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McGrath’s domination in the recent annual Real Estate Business Top 100 Agents ranking with 27 of the Top 100 agents in Australia was spotlighted when the listed estate agency reported its latest financial update.
<a href="/news/mcgrath-on-track-to-reach-forecast-earnings-despite-weakened-overall-property-market">The financial results</a> showed some signs of consolidation and recovery despite the weakened overall property market.
"Importantly, 37% of the female agents in the Top 100 ranking work with our company,” said Geoff Lucas, CEO of McGrath Estate Agents. 
Betty Ockerlander (pictured above) leads the agency's female agents in the sales list.
REB put her annual sales tally at $215 million, which ranked her the 15th best selling agent on the <a href="/news/alexander-phillips-lead-narrows-at-top-of-the-highest-selling-residential-estate-agents">top 100</a>.
The McGrath Epping agent has been president of Epping Rotary as well as the long standing position as the secretary of the Epping Chamber of Commerce. She also has a strong connection with the local schools.
Operating her own agency for over 20 years within Epping, North Epping, Eastwood and Beecroft, she is now ranked as the #3 agent in McGrath Australia 2017.
Around half her sales were through auction. 
Ockerlander's highest recorded sale price over the past year was $2.7 million for 15 Barellan Avenue, Carlingford, a four bedroom house which sold by auction in March.
Lorraine Crawford (pictured below) was in 32nd place with $170 million in annual sales.
She is based at McGrath's head office in Edgecliff specialising in the suburbs of Bondi Junction, Queens Park, Waverley, Bondi and Millers Point.
She has worked and lived in these suburbs over the past 11 years, having been involved in sale over the past 17 years.
<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/2018/7/31/lorraine.jpg" alt="">
Her record sales have occurred in suburbs including Queens Park, Bondi Junction and Malabar.
Lorraine's highest recorded sale price over the past year was $6.3 million for 46-48 Argyle Place, Millers Point, a five bedroom house.
Teena Vaughan (pictured below) was the third best selling McGrath agent on the REB top 100, with over 20 years experience.
She secured $124 million in sales. Her highest recorded sale price in the past year was $4.5 million for 4 Hillside Crescent, Epping, a six bedroom house sold by private treaty last December.
<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/2018/7/31/teena%20.jpg" alt="">
McGrath's top selling agent was Matt Steinwede with $271 million in sales followed by Peter Chauncy with $207 million in sales.
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Women leading the McGrath agency recovery

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Property fund manager Clarence Property's latest investment offer for its flagship Westlawn Property Trust (WPT) has closed over subscribed for $22 million.
It received strong support from investors in South East Queensland (SEQ) and Northern New South Wales (NNSW).
Over 60% of the capital raised came from new investors with approximately 55% of those funds from self-managed superannuation funds (SMSFs).
Both new and existing investors have backed Clarence Properties' strategy of purchasing assets in high growth areas in the Noosa to Yamba corridor.
WPT has more than $290 million in assets from Yamba to the Sunshine Coast, including shopping centres Yamba Fair and Byron Fair and the 480 lot Epiq master planned community at Lennox Head.
The fund provides investors the opportunity to tap into successful developments and assets like Epiq Lennox, which sold out of its first three stages, each within a week. 
Clarence Property managing director Peter Fahey (pictured above) says WPT continues to have a strong presence in NNSW and SEQ.
"The fund has a history of solid performance and has not failed to pay a monthly distribution to investors in its 24 years, so we have a reputation for reliability. A number of our investors have been with us since inception," he said.
"Many investors opted to re-invest in the latest offering because the Trust has a strong base for growth, with a number of key development projects commencing this year and several new acquisitions of blue chip commercal retail and commercial property recently made in Brisbane." 
These acquisitions come hand in hand with the recent appointment of ex-Colliers International Gold Coast Director Darrel Irwin as a Director of Clarence Property, who will assist in growing the WPT investor base in the Gold Coast and Brisbane markets. 
Irwin was previously Colliers Gold Coast director-in-charge and special projects national director for 13 years. 
WPT is expected to launch to the market its next offering for investment later this year. 
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