<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

<html><body>
GUEST OBSERVER
Large health inequalities exist in Australia. Car ownership and its costs add to the health inequalities between low-income and high-income households. The physical characteristics of neighbourhoods influence our transport use and, in turn, make health inequalities better or worse.
Rising housing prices have forced many low-income families to live on the fringes of Australian capital cities. Residents of these sprawling outer suburbs often have worse access to public transport, employment, shops and services. They need one or more motor vehicles simply to get to work and take children to school.
Buying and maintaining vehicles in Australia is expensive. These costs have a large impact on household budgets. Household finances then affect health in two main ways:
<ul>
<li>
through the ability to access health-related resources, such as healthy foods, health care and high-quality living conditions (like heating and cooling)
</li>
<li>
through stress caused by financial difficulties, insecure incomes and exposure to poorer environments such as crowding, crime and noise pollution.
</li>
</ul>
Living in the car-dependent urban fringes also often dooms residents to long sedentary commutes.
<h2>Four scenarios of transport costs</h2>
The following four hypothetical households demonstrate the costs of varying levels of car ownership and transport behaviours.
Scenario 1: A household with two cars that are 15,000km and 10,000km, respectively, per year. The car that is driven 15,000km is assumed to be less than three years old, bought new and financed with a loan. The other car is assumed to be 10 years old and owned outright. This household aligns with estimates by the Australian Automobile Association.
Scenario 2: Scenario one, minus the used car and substituting five return public transport trips a week to the Melbourne central business district from the outer suburbs.
Scenario 3: No cars, substituting 10 return trips to the CBD from the outer suburbs.
Scenario 4: No cars, substituting three return trips to the CBD (i.e. occasional public transport use), with walking and cycling as the main forms of transport.
Table 1 shows how reducing household car ownership, even after adding the cost of public transport, can improve household finances.
<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/2017/10/21/4.jpg" alt="">
Moving from a two-car household to a one-car household cuts weekly costs by as much as A$41, even after increased public transport use adds a A$41-a-week cost.
Moving from a two-car household to having no cars can improve weekly finances by as much as A$237, after adding 10 return trips to the CBD.
The fourth scenario, emphasising walking and cycling, shows the greatest improvement in household finances. These families are $294 per week better off.
The impacts on households of each of these car ownership and transport scenarios differ depending on their incomes. To illustrate this, we’ve taken the median disposable household income from the lowest, middle and highest quintiles from the ABS in 2015-16.
<img src="https://images.theconversation.com/files/190506/original/file-20171016-22304-10xttga.PNG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">Figure 1. Proportion of disposable household income remaining after transport costs for four scenarios of car ownership.
Although becoming car-free will increase disposable household income after paying for transport, the largest proportional differences are for the lowest-income households. This means these households will benefit most from reducing car ownership and switching to more active and affordable forms of transport.
<h2>Urban design can boost household health and wealth</h2>
So how do we help households make the transition from private car ownership? The answer lies in the environments we live in.
The evidence from research suggests several strategies to improve uptake of active and affordable transport, while reducing car dependence and related health inequities. These include local urban design features such as:
<ul>
<li>connected and safe street networks (including pedestrian and bicycle infrastructure) that reduce exposure to traffic</li>
</ul>
<ul>
<li>
residential areas mixed with commercial, public service and recreational opportunities
</li>
<li>
public transport that is convenient, affordable, frequent, safe and comfortable
</li>
<li>
higher residential density with different types of housing (including affordable housing) to support the viability of local businesses and high-frequency public transport services
</li>
<li>
cycling education and promotion
</li>
<li>
car-free pedestrian zones, traffic calming measures, signage and accessibility for all (including wheelchair and pram access).
</li>
</ul>
Australia has yet to fully realise the potential of promoting active transport and reducing car dependency as a way to reduce health inequities.
For example, the Victorian government recently announced 17 new low-density suburbs for Melbourne’s outer fringes (up to 50 kilometres from the CBD). It did so with a goal of creating more affordable housing. But urban planning experts have criticised these plans for increasing car dependence and commute times – due to the lack of nearby destinations and amenities – which have been shown to be bad for health.
In another case, the Planning Institute of Australia described the proposed A$5.5 billion West Gate Tunnel as a “retrograde solution”. The institute expressed concern about “entrenched inequality for those in the outer suburbs”.
Changes to city transport environments can take years or even decades, and funding is often limited. Phased interventions that target lower-income neighbourhoods should be considered first as these are likely to produce the greatest gains in health equity.
This approach does have some caveats. Urban renewal projects carry a risk of gentrification, whereby higher and middle-income households displace those on lower incomes. Place-based government investment, such as improvements to public transport, has been shown to increase local housing prices. That could force lower-income households to relocate, often to car-dependent neighbourhoods on the urban fringes.
In these scenarios, a lack of government policies that safeguard against displacement of low-income residents can make health inequities worse.
Jerome N Rachele, Research Fellow in Social Epidemiology, Institute for Health and Ageing, Australian Catholic University; Aislinn Healy, PhD Candidate, Institute for Health and Ageing, Australian Catholic University; Jim Sallis, Professorial Fellow, Institute for Health and Ageing, Australian Catholic University, and Emeritus Professor, Department of Family Medicine and Public Health, University of California, San Diego, and Takemi Sugiyama, Professor of Built Environment, Institute for Health &amp; Ageing, Australian Catholic University.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/designing-suburbs-to-cut-car-use-closes-gaps-in-health-and-wealth-83961" target="_blank">original article</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Designing suburbs to cut car use

<html><body>
GUEST OBSERVER
The <a href="https://theconversation.com/power-bills-can-fall-but-the-main-attention-must-be-on-affordability-accc-85734" target="_blank">preliminary report on energy prices</a> released last week by the Australian Competition and Consumer Commission (ACCC) suggests that the consumer watchdog is concerned about almost every aspect of Australia’s electricity industry. It quotes customer groups who say electricity is the biggest issue in their surveys, and cites several case studies of outrageous price increases experienced by various customers.
The report is long on sympathy about the plight of Australia’s electricity users. But the true picture is even worse – in reality, the ACCC’s assessment of Australia’s energy prices compared to the rest of the world is absurdly rosy.
Australia has internationally high energy prices
The ACCC quotes studies from the Electricity Supply Association and the <a href="https://studylib.net/doc/6673393/category-analysis-rin---australian-energy-regulator" target="_blank">Australian Energy Markets Commission</a> (AEMC) to compare electricity prices in Australia with those in other OECD countries. But the ACCC’s comparison is based on two-year-old data, and badly underestimates the actual prices consumers are paying.
The AEMC’s analysis assumes all customers are on their retailer’s cheapest available offer. This is an obviously implausible assumption, and gives a favourable impression of the price that customers are paying.
As <a href="https://theconversation.com/australian-household-electricity-prices-may-be-25-higher-than-official-reports-84681" target="_blank">previously pointed out on The Conversation</a>, the Thwaites review – which looked at customers’ actual bills – found that in February 2017 Victorians were typically paying A35c per kilowatt hour (kWh) – 42% more than the AEMC’s estimate. What’s more, we know that Victoria’s electricity prices are lower on average than those in South Australia, Queensland and New South Wales, and hence below the Australian average.
A part of this 42% gap – around 15% – is explained by the latest price increases that are not included in the ACCC’s comparison. But this still leaves a 27% gap between what the AEMC assumes and the evidence of actual prices.
This begs the question: why did the ACCC not recognise the widely known flaw in the AEMC’s analysis?
<h2>The real problem is overbuilt network infrastructure</h2>
The report estimates that rising network charges account for more of the price increase than all other factors put together. There is no doubt that network charges are a real problem at least in parts of Australia, although their significance relative to retailers’ costs is contested territory.
But why would distributors build far more network infrastructure than they need? And why have government-owned distributors built far more infrastructure than private ones, despite having no more demand?
The answer to this perplexing question is to be found in part in Australia’s “competitive neutrality” policy. This is Orwellian doublespeak for an approach that is neither neutral nor competitive.
Under this policy, government-owned distributors are regulated as if they are privately financed. This means that when setting regulated prices, the Australian Energy Regulator (AER) allows government distributors to charge their captive consumers for a return on their regulated assets, at the same level as if they were privately financed. That is despite the fact that private financing is much more expensive than government funding.
It’s no surprise that when offered a rate of return that far exceeds the actual cost of finance, government distributors have a powerful incentive to expand their infrastructure for a profit. This “gold-plating” incentive is a well-known in regulatory economics.
Regulators, the industry and their associations have explained higher spending on networks in a variety of ways: higher reliability standards; flawed rules; flawed forecasting of demand growth; and the need to make up for historic underinvestment.
But was there ever historic underinvestment? A 1995 article co-authored by the current AEMC chair concluded that distribution networks had been significantly overbuilt. That was more than two decades ago, government distributor regulated assets are at least three times bigger per customer now.
The chart below – based on data from the AER’s website – examines how the 12 large distributors that cover New South Wales, Victoria, Queensland and South Australia spent their money on infrastructure between 2006 and 2013. This period covers the last five-year price controls established by the state regulators, and the first control established by the AER. It was during this time that expenditure ballooned. The monetary amounts in this chart are normalised by the number of customers per distributor.
<img src="https://images.theconversation.com/files/191134/original/file-20171019-1072-1b07x7v.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
 Distributor spending on infrastructure between 2006 and 2013. Author provided
The first five distributors from left to right (and Aurora) were owned by state governments and the others are privately owned. A clear pattern emerges: the government distributors typically built much more infrastructure than the private distributors. And the government distributors focused their spending on substations, which are much easier to build (or expand or replace) than new distribution lines or cables.
We also know that the distributors’ spending on substations far outstripped the increases in the peak demand on their networks. The figure below compares the change in the government and private distributors’ substation capacity (the blue bars) with demand (the red bars) over the period that most of the expenditure occurred. Again, the amounts have been normalised by number of customers.
<img src="https://images.theconversation.com/files/191133/original/file-20171019-1075-d1dvow.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Substation capacity versus peak demand between 2006 and 2013. Author provided
The gap in spending between government and private distributors is stark. It is also obvious that in all cases, but particularly for the government distributors, the expansion of substation capacity greatly exceeded demand growth - which hardly changed over this period (and is even lower now, per connection).
To put it in more tangible terms, as an average across the industry, peak demand between 2006 to 2013 increased by the equivalent of the power used by one old-fashioned incandescent light bulb, per customer. But government distributors expanded their substation capacity by more than one 100 light bulbs, per customer. The private distributors did relatively better, but still increased the capacity of their substations by the equivalent of about 30 light bulbs per customer.
My PhD thesis included econometric analysis that shows government ownership in Australia is associated with regulated asset values that are 56% higher than private distributors, and regulated revenues that are 24% higher, leaving all other factors the same.
To some, this evidence supports a “government bad, private good” conclusion. Indeed it was this line of argument that the Baird government in New South Wales used to justify its partial privatisation of two network service providers.
But in international comparisons of government and private distributors in the United States, Europe and New Zealand, no such stark differences are to be found. The huge disparity between government and private distributors is a peculiarly Australian phenomenon.
<h2>How we got here</h2>
This Australian exception originates in chronic policy and regulatory failure. As far back as 2011, the Australian Energy Market Commission (AEMC) heard a proposal that government distributors should earn a return closer to their actual cost of financing – a suggestion that would have reduced prices significantly and removed the incentive to gold plate.
In response, the AEMC said the regulations were consistent with the “competitive neutrality” policy. But this is not true: in the policy’s own words, it was designed to stop government businesses from crowding out competitors. Distributors are protected monopolies; they do not have competitors.
The AEMC also argued, somewhat bizarrely, that it was good economics for a regulator to assume that government distributors are privately financed.
This represents the triumph of an idealistic “normative” regulatory model in which regulators act on the basis of how the regulated entity should behave rather than how they actually behave.
But it would wrong to blame the AEMC alone for this failure. All of Australia’s key institutions and governments have agreed that government distributors should be regulated as if they are privately financed. For governments that own their distributors, this has been a wonderfully profitable fiction.
Therein lies much of the explanation for what is effectively, if I may call a spade a spade, a racket.
It is an indictment of Australia’s polity and so many of its economists that the 2011 Garnaut Climate Change Review stands alone, in a library of reviews, as stating this problem clearly. In fact, if you review last week’s report from the ACCC, you will not find a single distinction between the impact of government and private distributors.
And if you thought this was yesterday’s war, you would be wrong. Despite the mass of evidence, our regulators persist in the fiction that ownership and regulation should be independent of one another.
It is difficult not to lapse into despair about Australia’s energy policy morass. Despite the valiant attempts by many, a deeply entrenched culture of half-truths, vested interests, ideology and wishful thinking still characterises all too much of what emanates from the political and administrative leadership of this industry.
Some energy consumers – Prime Minister Malcolm Turnbull among them – will buy their way out of this problem through solar panels and batteries. But the poorest households and many business customers will increasingly be left carrying the can.
<img src="https://counter.theconversation.com/content/86045/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Australians are angry about electricity. Not unreasonably.
Bruce Mountain is director of carbon and energy markets at Victoria University.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/energy-prices-are-high-because-consumers-are-paying-for-useless-profit-boosting-infrastructure-86045" target="_blank">original article</a>.
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Energy prices are high because consumers are paying for useless, profit-boosting infrastructure: Bruce Mountain

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The sustained low interest rate environment in Australia continues to drive yield compression in investment property with sales pushing well below 5% and in some cases 4%. 
While this is frustrating for local buyers looking for safe investment opportunities and great for sellers, the question is where is it all going?
Holden Capital’s Construction Finance Market Update for Spring/Summer 2017 tried to figure that out.
The consensus of opinion amongst most economic observers seems to be that for as long as Australia continues to be identified as a safe and stable economy, quality property assets will continue to attract foreign investment. Compared to other competing stable economies, our property sector provides solid returns for investors chasing reliable income with strong WALE’s. 
As a consequence the short to medium term outlook appears to be more of the same with local investors forced to look for bargains amongst lesser investment grade stock and yields could potentially tighten further.
With strong competition for quality tenants driving yield compression in large format retail centres, regionals and the key commercial sectors, the prospects for investment outside of these prime assets is likely to be characterised by local investors targeting more affordable investments and the refurbishment/ gentrification of areas previously passed over in order to reduce capital costs. Volatile stock markets, low interest rates and continuing foreign investment will also continue to drive yield compression so the question is, is there a change on the horizon?
Recent press has seen some commentators forecast the potential for interest rate rises in 2018 on the back of easing concerns around the strength of the underlying economy.
"We take the view that while there continues to be pressures on SME profits, household income growth remains weak and general consumer confidence poor, interest rates are unlikely to show signs of increasing for some time to come," says the market update.
As the squeeze on development funding due to APRA's restrictions began to bite, banks turned their attention to what they could continue to lend against and that was property assets which are income producing.
Investment lending against offices, retail, industrial sectors, hotels, etc forms part of the “Commercial” loan portfolio of a bank and while the regulator would like to see overall exposures kept below 10% of their balance sheets, there was scope for them to in some cases actually grow their exposure and then maintain it in line with their balance sheet growth.
“The emerging challenge for them however, has been that many overseas investors who are acquiring property are chasing a positive yield differential as they view the returns more like annuities so their intention is to hold long term, while in some cities a number of commercial buildings are being converted into residential projects,” says the update.
The weight of this additional capital inflow and demand from these overseas property investors (pension funds, investors and sovereign funds to name a few) aided by local demand has been a key driver of strong commercial property sales in an already low yield investment environment and, has led to a dramatic level of yield compression across these investment sectors.” 
This in turn has raised concerns about overvalued property prices relative to historical benchmarks leading to suggestions of value bubbles and the future sustainability of the values and as a consequence, the banks debt ratios. As to how this will resolve itself is difficult to predict with the extreme being a significant reduction in values at a future date but the more likely outcome is a smaller realignment combined with a significant period of stagnation in values. 
Either way, the banks are playing close attention to these issues and will be looking to avoid a situation where a major realignment would adversely affect their clients but more particularly their ability to remain compliant with APRA’s lending guidelines. All of which serves to demonstrate how the combination of regulatory constraints and concerns around rapidly appreciating values has resulted in a slowdown in investment lending by the major banks. 
<h3>Guide to Commercial Investment Loans</h3>
<a href="https://www.propertyobserver.com.au/images/2017/10/03/HoldenGraph.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/10/03/HoldenGraph.png" alt="">
Funding options outside of that sector are somewhat limited. In the recent past, Mortgage Funds provided the bulk of non-bank investment loans however the GFC saw a large number of these players exit the market and the remaining funds have limited capacity and or appetite. Unlike the development finance space where many small private funds have emerged to take advantage of the increased returns (and risk) on offer, there have been few new significant funding sources emerge to fill this void.
As always, there has also been a flight to quality by banks and other lenders seeking to improve the risk profile of their loan portfolios, so while the strong sponsors are being serviced, the gap is widening between them and the rest of the market. 
Investment banks, hedge funds and opportunistic funds have increased their presence as funders of development property transactions, however the very nature of their return hurdles means that term debt is not a strongly targeted investment class. There are options out there, however the challenge is to understand who can fund and what the terms are (pricing, tenure, etc) as the market evolves. 
“So to sum up, the investment lending landscape is not dissimilar to the construction finance sector with similar pressures and again, they are pressures that are not going to change overnight so it pays to have the right advice and support when you are thinking of raising debt for a new acquisition or refinancing,” it says.
 
 
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jonathanchancellor-7SQnKwU6yx

Low interest rates compressing yields in investment property: Holden Capital

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A 2,435 sqm development site in Williamstown has been bought by a Chinese national for $4.5 million.
Savills sold the vacant corner property at <a href="https://www.realcommercial.com.au/property-land+development-vic-williamstown-502443422" target="_blank">9-27 Kororoit Creek Road</a> with residential zoning.
The land, sold by VicRoads, is opposite the North Williamstown railway station.
Its level crossing is being converted into an overpass.
The site has been in the hands of VicRoads since the 1970s for the purposes of widening the road.
It was subsequently abandoned due to widening on the northern side of the road. The land has been declared surplus. 
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Savills sells Williamstown sites to Chinese national

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A retail property in Melbourne’s St Kilda leased to popular restaurant and bar Mr Wolf, run by celebrity chef Karen Martini, has been listed.   
The <a href="https://www.realcommercial.com.au/property-retail-vic-st+kilda-502602694" target="_blank">9 Inkerman Street</a> property comprises a large retail premises of 130 sqm and will be auctioned off on November 23 through Savills. 
The price expectations are at least $1.25 million,
The property is being marketed by Savills’ Clinton Baxter, Jesse Radisich and Mark Stafford.
Stafford said “we are expecting bidding of at least $1.25 million at auction, representing a compelling starting annual investment yield of 5% net.”
Baxter added that the property provides investors with a blue-chip investment within one of Melbourne’s most popular suburbs and one that is also securely leased to a well-established hospitality business. 
The restaurant, Mr Wolf, was established in 2004. The cooking show judge and author recently exercised the option for another five-year lease term that started in August, with two further five-year options to follow.
The rental is a conservative $63,000 per annum, with the tenant paying all usual outgoings, and there are fixed 3.5% annual rental increases.
Radisich expects the property to attract investors and self-managed superannuation funds wishing to secure a retail investment with guaranteed growth and a long history of strong trade.  
 
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St Kilda retail asset leased to top chef Karen Martini listed

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The leading growth markets in Australia are now popping up in unexpected places.
Regional centres like Launceston and Townsville (above), as well as the affordable outer-ring precincts of our capital cities, dominate Hotspotting’s new National Top 10 list for municipalities with the highest number of growth suburbs.
This partly reflects the decrease in the number of rising markets in Sydney and Melbourne, with both the big cities still performing solidly but well past their peaks in terms of sales volumes. The attention is now shifting to other cities.
In the new Spring edition of The Price Predictor Index, the Moreton Bay Region in Brisbane’s north is the No.1 LGA in Australia for growth markets, having overtaken the Sunshine Coast. 
Moreton Bay LGA has 14 suburbs with upwardly-mobile markets, with buyers attracted by affordable prices, infrastructure and jobs nodes. Growth areas include Caboolture, Burpengary, Arana Hills, Bongaree, Deception Bay, Bray Park, Woorim and Warner. 
Morayfield is a key market, with sales around 170 per quarter, compared to 120-130 two years ago.
The Sunshine Coast LGA continues to feature strongly. It has 12 growth suburbs, while the neighbouring Noosa LGA has four. Growth stars include Coolum Beach where quarterly sales are up from around 70 to above 100. Caloundra and nearby Golden Beach are also thriving.
The Adelaide market gets very little national attention but it’s showing considerable resilience and there is growth potential in specific precincts. The Marion LGA in Adelaide’s south-west is the leading market in the South Australia capital, having lifted the number of growth suburbs in each of the past three quarterly surveys.
The Marion LGA, a middle-market area of Adelaide, now has nine rising suburbs, including Oaklands Park (median house price $470,000) which has lifted sales from 18 to 24 to 29 to 30 to 37 to 41 in the past six quarters. Other growth suburbs include Sheidow Park, Clovelly Park, Dover Gardens, Edwardstown and Glengowrie.
The Hobart market has captured national attention as homes sell quickly, rents rise at rates above the national average and price growth challenges the major cities. Within the Hobart metro area, the Clarence LGA is the market leader, although growth suburbs are spread across the city. 
Clarence, on the opposite side of the Derwent from the CBD, includes growth suburbs such as Geilston Bay, Bellerive, Lindisfarne, Rokeby, Risdon Vale and Warrane.
Launceston markets continue to grow in strength, but tend to be overlooked because of growing national focus on results in Hobart. Tasmania’s No.2 city has eight suburbs with growth markets, while the nearby West Tamar LGA has three. Affordable Invermay (median house price $230,000) typifies the growth in this region. Its sales levels have grown from 19 to 22 to 24 to 29 to 34 to 37 in the past six quarters, while sales in South Launceston have risen from 20 to 29 to 34 to 47 to 51.
Townsville in North Queensland is one of the nation’s comeback markets. It is showing increasing signs of recovery from years in which the usually-strong local economy struggled, thanks to the downturn in the resources sector and the closure of the city’s nickel refinery. 
The growing evidence of a revival is likely to gather pace as major events (such as the location of the headquarters for the $20 billion Adani mining project) start to take shape. On the back of improving economic prospects, Townsville now has six suburbs with rising markets. 
Perth too is mounting a comeback after four years in a slump and regions in the north of the metro area are leading the fightback. The Wanneroo LGA is  featuring strongly; it has six suburbs with growing sales activity - remarkable when you consider that the entire Perth metro area had zero growth suburbs only nine months ago. 
The growth markets include Alkimos, Carramar, Clarkson and Hocking. The Wanneroo LGA is the fast-growing municipality in WA and includes several new growth suburbs. As is often the case in such areas, vacancies are high in some postcodes but this will change as demand continues to grow. 
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au" target="_blank">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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terryryder-YECXbqmri2

Leading growth markets popping up in unexpected places: Terry Ryder

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A Canberra office building is set for auction after being fully leased to Seeing Machines for a 10-year term plus option.
The <a href="https://www.realcommercial.com.au/property-offices-act-fyshwick-502563922" target="_blank">165 Canberra Avenue</a> asset in Fyshwick is being auctioned on October 26. Hyperion Property Group has appointed Colliers International to market the campaign.
Seeing Machines is a Canberra start-up and now global organisation listed on the AIM of the London Stock Exchange and currently employ just under 200 people in Canberra.
It develops computer vision related technologies that help machines understand people tracking and interpreting human faces and eyes.
It is a standalone building that has recently undergone cosmetic upgrades, and future tenant works are estimated at $4 million.
Seeing Machines appointed Canberra-based interior design studio, Core Interiors, to design their fit-out.
The two-level building, constructed in 1994, was purpose-built for a technology company.
Colliers International’s Matthew Winter, who is the listing agent, said the 5,256 sqm corner site "presents purchasers with an outstanding long-term proposition.”
“The property lies within the East Lake Precinct which is currently under investigation by the ACT Government for future re-zoning to encourage urban infill via residential development,” said Matthew.
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Canberra office building leased to tech company Seeing Machines listed

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An office and warehouse complex suited for a corporate headquarters at Bundall on the Gold Coast is being offered for sale via auction through Ray White Commercial Southport.
The freestanding facility at <a href="https://www.realcommercial.com.au/property-offices-qld-bundall-502435078" target="_blank">17 Strathaird Road, Bundall</a>, is being marketed by Wayne Devenport of Ray White.
The auction will be held on October 26. Park Trent, the property advisory group, have been there with signage rights.
The partially tenanted property is on a land area of 3,492 sqm with total building area of 1,931 sqm.
“The asset comprises a two-level quality office of 756 sqm to the front and an 1,175 sqm warehouse to the rear, with two gymnasium tenants occupying approximately 560 sqm of the warehouse area,” he said.
“The property would be an ideal corporate headquarters or investment in a highly sought-after location."
The offices to the front of the building comprise a reception, meeting room, seven offices, 14 station open plan area and full kitchen, coms room and server room.
The second floor has facilities for an eight station open plan area, multiple offices, meeting room, boardroom and kitchen.
The property is zoned ‘mixed use, fringe business precinct’.
 
 
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Office-warehouse in Gold Coast's Bundall listed for auction

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US doughnut giant Krispy Kreme's securing an outlet at Bulleen Plaza is part of a trend where fast food retailers are looking to expand across Melbourne. 
Earlier this year, the doughnut retailer moved into a site previously occupied by Hungry Jacks, signing a 10-year lease over the 280 sqm property.  
It has more than 19 outlets nationally.
In NSW, Krispy Creme's outlets are at Auburn, Central Station (Sydney CBD), Liverpool - Factory Shop, Mascot -Factory Shop, Penrith and two shops at Sydney’s airport.
In Queensland, Krispy Kreme has its stores at Brisbane Qantas Domestic Terminal, Myer Centre (CBD), Pacific Fair and Shell Nudgee.
In Victoria, they are at Collins St (CBD), Fountain Gate - Factory Shop, Melbourne T1 Qantas, Melbourne T3 Virgin, Melbourne T4 and Swanston Street in the CBD.
In Western Australia, it’s at Myaree, Whitford City Centre - Factory Shop
In South Australia, it is run as a separate business.
<img src="https://www.urban.com.au/images/2017/10/20/KrispyKreme.png" alt="">
The lease for Bulleen Plaza was negotiated by CBRE’s Chris Parry and Tom Perkins.
Located in Melbourne’s north-eastern suburbs, Bulleen Plaza is a neighbourhood shopping centre anchored by a Coles supermarket and more than 60 retail stores. 
<div>Hungry Jacks relocated to a new space in a joint venture with Shell Petroleum.  </div>
<div> </div>
<div>“The transaction highlights the strong interest from fast food retailers looking to expand into the Melbourne metropolitan market, particularly in areas which are seeing high levels of customer footfall such as the north-east,” said Parry. </div>
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Krispy Kreme brings its doughnuts to Melbourne's Bulleen Plaza  

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Office leasing figures for the Melbourne CBD (size above 500 square metres), show total of 400,053 sqm was leased in the 12 months to September 2017, an increase of nearly 31% over the five-year average, according to Savills Research. 
The Finance and Insurance services sector absorbed 76,631 sqm of this space, 87% of which was prime grade.
“Take-up by the Financial services sector was quite remarkable, the highest in five years and up by 110% over the past 12 months,” said Monica Mondkar, associate director of Research at Savills.   
“Another major triumph for the sector was securing a position amongst the top three occupier categories in the CBD after a five year period. Demand from the Financial and Insurance sector has finally turned a corner, which has previously been contracting since September 2010,” said Mondkar.
Australian Bureau of Statistics counted financial services at 9% of GDP, the largest share by industry type in the national context, which is also a historical high for the sector. 
Financial services’ GDP contribution has surpassed the housing and construction industry and is the leading economic driver, creating wealth and adding jobs, she added.
<a href="https://www.propertyobserver.com.au/images/2017/10/23/Savills0.jpg" target="_blank">Click to enlarge</a>
<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/2017/10/23/Savills0.jpg" alt="">
“Lending services and insurance firms, benefitting from Victoria’s population and construction boom, have been key drivers for the office take-up by the financial services industry. Also, there is pent-up demand from financial planners upgrading or expanding their footprint into the CBD, profiting from a rise in the number of investors favouring alternative investments over the risk-free government bonds (amid a low-interest rate environment).”
Savills director of Office Leasing, Phillip Cullity, said a number of factors were behind the massive surge in financial sector leasing, including jobs and population growth in Victoria, lease expiries, staff retention and recruitment, and efficiency gains.
“The Financial Services sector, in particular, has been proactive in taking advantage of market conditions, locking in rents and incentives before rents begin to rise considerably,” Phillip Cullity said.
“Tenants now realise that, as they are in competition for the best young talent, they must offer modern accommodation that includes the latest building and technology services, meeting and fitness facilities, access to transport, childcare and cafes.’’
Occupiers were also increasingly mindful of the need for more efficient buildings in reducing costs, a key motive for relocation to higher grade properties. 
One-in-five enquiries for office space in the Melbourne CBD in the first nine months of 2017 had come from insurers and financial services providers, added Cullity. 
Other major financial services moves on the horizon include NAB’s 66,000 square metres pre-commitment to 405 Bourke Street and Vanguard Investments considering 10,000 square metres at Cbus’ Collins Arch project.  
The overall reported CBD leasing activity was marginally up on the 394,997 square metres leased in the 12 months prior. Supply constraints have been having an impact on the market. To put this in perspective, Melbourne CBD’s vacancy rate declined to 6.5% at July 2017 from 7.1%  a year ago.
66% of the total leased space was Prime grade. Direct leases measured 219,874 square metres, while 148,942 square metres was pre-committed space. Growth in pre-committed space was at record high levels, up 350% from 12 months prior. 
The make-up of Melbourne CBD’s occupiers is diverse with the Government &amp; Community sector continuing its domination at 39%, followed by Property &amp; Business Services at 32% and Financial &amp; Insurance ranking the third largest sector by leasing 19%. 
“We can expect a number of significant leases to be concluded prior to the Christmas holiday period resulting from a strong pipeline of occupier requirements in the market,” Cullity said.
Savills tenant enquiry analysis revealed current tenant enquiries (above 500 square metres) measure about 250,000 square metres, all to be leased between the remainder of 2017 and 2018 in the CBD. 
“Last year Melbourne CBD’s net absorption was 128,000 square metres which smashed the 10-year average at 76,000 square metres, and all indications are suggesting that we are in for another strong year.With vacancy levels forecasted to fall further, outlook over the next 12–18 months is expected to be very positive,” Mondkar said. 
NAB’s monthly Business Conditions Index was at 14 points in September 2017 – almost three times the long-run average (+5). Victoria’s economy continues its drive with the strongest population growth in the nation and a major focus on jobs growth.
Latest ABS figures reveal that the largest year on year increases in employment were recorded in Victoria (up 96,791 persons) in August 2017. “What is notable about the Victorian economy is that growth in full-time jobs has been material over the last year indicating stronger employment metrics for Victoria,” according to Ms Mondkar. 
Growth in professional job advertisements in VIC (4.37%) remained considerably higher than the 2.14% national average. Professional job ads have been consistently positive in Victoria over the last three years with job advertisements in August 2017 at their highest level since May 2012. 
“This is clearly reflected in positive net absorption numbers in Melbourne CBD. With growth in professional job ads still strong in the current quarter, it would be prudent to expect this to translate to continued CBD net absorption performance over the 2017-18 period,” said Mondkar.
 <a href="https://www.propertyobserver.com.au/images/2017/10/23/Savills1.jpg" target="_blank" style="font-size: 12.16px;">Click to enlarge</a>
<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/2017/10/23/Savills1.jpg" alt="">
Monica Mondkar is an Associate Director of Research in Savills Melbourne. Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. To learn more about Savills, visit <a href="https://www.savills.com.au" target="_blank">savills.com.au</a>
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