The Paul Gedoun-led <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Group</a> has achieved another milestone in its $1 billion transformation of Rainbow Bay on the southern Gold Coast with the completion of the company’s third project in four years, the $160 million <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a> residences.

Delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a> and designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker Architects</a>, Esprit buyers have now moved into the 94 apartments across two interconnected buildings at 217-227 Boundary Street.

The successful settlement of Esprit marks another astounding chapter in the S&amp;S story, which launched its highly successful Flow apartments three years ago and created its own ultra-luxury branded fingerprint on an area craving new luxury residences.

Most early purchasers have secured gains of well over $1 million since the project launched in 2021.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172129]

S&amp;S Projects Founding Director Paul Gedoun said the completion of Esprit reflects sustained demand for premium apartments in tightly held coastal locations.&nbsp; 
&nbsp;&nbsp; &nbsp; 
“Esprit has attracted buyers seeking a combination of quality design, considered amenity and a location that is becoming increasingly difficult to replicate,” said Gedoun.

“We identified some years ago that Rainbow Bay is a unique market where supply of luxury residences is limited, and we see the settlements in Esprit further underpinning this thinking - that for both owner-occupiers and investors.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172174]

A key feature of the development is ‘Club Esprit’, a 1,000sqm residents-only rooftop level combining wellness and recreation, believed to be a first for the Gold Coast, and which is fast becoming a signature of the S&amp;S brand.

Positioned to capture views across Snapper Rocks, Rainbow Bay and the Tweed River, the rooftop includes a 25-metre lap pool, gym, yoga lawn, sauna and steam facilities, ice bath, private dining spaces, outdoor cinema and landscaped areas for residents.&nbsp;

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> Director Jayde Pezet, who led the sales campaign for Esprit and S&amp;S’s Flow and Awaken apartments, said the project’s performance reflects both the strength of the product and the depth of demand for premium apartments on the southern Gold Coast.&nbsp;

“In some cases, we’ve seen values double since launch, which is a clear reflection of how tightly held Rainbow Bay has become and the level of demand for well-executed projects in this market,” said Pezet.&nbsp;

“Buyers recognised early what S&amp;S Projects was delivering here, and that conviction has been rewarded as the project has progressed towards completion.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=214819]

Esprit offers a mix of two- three and four-bedroom apartments and sits within walking distance of the beachfront, cafés and local amenities, reinforcing its appeal as both a lifestyle and investment destination.

The project is the third completed by S&amp;S Projects in Rainbow Bay, following Flow Residences and Awaken Residences, which together have contributed to the suburb’s emergence as one of the Gold Coast’s most sought-after coastal pockets. &nbsp;

S&amp;S Projects is continuing its investment in the area with Radia, a $215 million development currently under construction.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172175]

Gedoun said the completion of Esprit signals continued confidence in the southern Gold Coast market.&nbsp;

“We’ve seen strong interest in well-located, high-quality apartments, particularly in areas where future development opportunities are limited."

“That’s been a key factor in the performance of Esprit and the broader Rainbow Bay market”.

[smartcode_project_cta:default project_id=102921]

Joel Robinson

Owners move in as Esprit completes at Rainbow Bay

Few developers can boast a portfolio across South East Queensland's luxury markets quite like <a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a>.

The builder-developer, founded in 2004 by Managing Director Brook Monahan, has projects in planning, on the market, and under construction, from Burleigh Heads and Broadbeach to Kangaroo Point and South Brisbane.

With a pipeline exceeding $2 billion, Mosaic remains highly selective when it comes to development sites, having spent years refining its strategy around feasibility research and product planning. The group is set to continue growing into 2026 and beyond.

In Brisbane, Mosaic currently has three projects in the market. It is in the final release stage at <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford</a> in Kangaroo Point, which is approaching complete sellout ahead of its late 2027 completion.

[smartcode_project:default project_id=134792 project_image_fid=328123]

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, The Bedford comprises 128 two- and three-bedroom residences. A selection of ultra-luxury Masterpiece Series Skyhomes, positioned across the top levels, offer expansive floor plans and sweeping views of the river and city.

High-end inclusions, such as natural stone benchtops, bespoke cabinetry, and Miele appliances, feature throughout all apartments, alongside the Rooftop Recreation &amp; Retreat Sky Terrace. This includes a resort-style pool with sun deck and loungers, spa, cold plunge pool, sauna, steam room, private dining room with a full kitchen, residents' lounge, multiple barbeque and relaxation zones, an outdoor viewing deck, and landscaped gardens with water features, all oriented to sweeping city and river views.

A gym with indoor and outdoor zones, and a golf simulator, further enhances recreational choice within the building.

[smartcode_project:default project_id=134792 project_image_fid=328119]

A defining feature of the development is its integrated mixed-use component, which will deliver Kangaroo Point's first major supermarket, alongside a café and liquor store, bringing long-awaited convenience to the peninsula.

Monahan says The Bedford represents the culmination of a near-decade-long journey, after first identifying the A-grade Prospect Street site in 2016. While they came close to acquiring it at the time, the site was ultimately purchased by Woolworths' development arm, Fabcot. The opportunity resurfaced in 2024 when the site, vacant for nearly three decades, was brought back to market.

Monahan says Mosaic projects often begin years before any formal plans are drawn. Their new South Brisbane development is no exception, with the site first earmarked in 2018.

"We aren't opportunistic," Monahan says. "Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

[smartcode_project:default project_id=141711 project_image_fid=353495]

A similar story unfolded at <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a> in Kangaroo Point, opposite The Gabba. Like The Bedford, it is also approaching sellout of its 125 two- and three-bedroom apartments. The majority of sales are attributed to returning customers and referrals, with a balanced mix of investors and a strong majority of owner-occupiers.

BDA Architecture was again engaged to design the 22-storey building, which will feature a suite of wellness and lifestyle amenities, including a golf simulator and cinema, a commercial-grade gym, and a rooftop recreation level with a pool, steam room, sauna, cold plunge, teppanyaki bar, private dining spaces, and landscaped terraces.

Construction is on track for completion in mid-2027.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Mosaic's latest offering is its most ambitious yet, boasting a rare, north-facing riverfront position on Montague Road in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale by Mosaic</a> is a 39-storey tower comprising just over 200 residences and Masterpiece Series Sky Homes. Designed in partnership with Bureau Proberts, it will feature nearly 3,000 sqm of genuine, internationally benchmarked six-star, hotel-style amenities, including a wellness precinct, pool, gym, massage and treatment rooms, cinema, golf simulator, and extensive outdoor dining areas across a two-level rooftop deck.

Early works are underway, with full construction expected to commence in the second half of 2026, and an anticipated late 2029 completion.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Since 2012 alone, Mosaic has completed more than $2 billion in projects and is set to deliver another $2 billion worth of developments, comprising hundreds of luxury apartments, each defined by Mosaic's signature standards of quality, detail, and delivery.

"We never arrive, there is no finish line," says Monahan. "Our ambition is to keep evolving what luxury means, creating design- and lifestyle-led residences in incredible locations, places people genuinely aspire to and want to live, homes that are loved deeply and endure long beyond their moment."

Mosaic's Midas Touch

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> (Urban) has broken ground at Keira Place, its new major mixed-use residential precinct in the heart of Wollongong CBD.

Held at 120-122 Smith Street, the groundbreaking marked the commencement of construction on Stage 1 of <a href="https://www.apartments.com.au/new-apartments/keira-place-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, with the opening of the new display suite. 
&nbsp; 
Keira Place is a State Significant Development that will deliver new housing supply, affordable homes and inclusive living options within walking distance of Wollongong’s CBD, coastline, transport, hospital and education precincts.

[smartcode_project:default project_id=144442 project_image_fid=369868] 
&nbsp; 
Stage 1 is now under construction and will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, along with activated ground-floor retail and commercial space. 
&nbsp; 
Urban Co-CEO Patrick Elias said the groundbreaking represented a significant milestone for Wollongong and reflected Urban’s long-term commitment to regional cities.

“Today’s groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong’s city centre,” Elias said. 
&nbsp; 
“Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection.”

[smartcode_project:default project_id=144442 project_image_fid=369869] 
&nbsp; 
Hon. Paul Scully MP, Minister for Planning and Public Spaces, Member for Wollongong said Keira Place is exactly the kind of development Wollongong needs – delivering new homes close to transport, employment and services, while supporting the continued growth and renewal of the CBD.

"This project reflects the Minns Labor Government's commitment to increasing housing supply in well-located areas." 
&nbsp; 
Wollongong Lord Mayor Cr Tania Brown said Keira Place would deliver lasting community benefits for the city. 
&nbsp; 
"Keira Place is a welcome addition to Wollongong's CBD delivering new housing, affordable homes and activated street-level spaces that will benefit our community for years to come," Brown said. 
&nbsp; 
"Urban Property Group's investment reflects the confidence that quality developers have in Wollongong's future, and I look forward to seeing this precinct come to life."

[smartcode_project:default project_id=144442 project_image_fid=369867] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a>, with interiors by <a href="https://www.apartments.com.au/interior-designers/dko">DKO,</a> Keira Place prioritises liveability and long-term performance, with landscaped shared spaces, generous apartment layouts and a pedestrian-friendly streetscape along Smith Street. 
&nbsp; 
Residents will have access to landscaped podium areas, communal rooftop amenities with views to Mount Keira and the Wollongong skyline, and convenient ground-level retail.

The development will have 10-year Latent Defects Insurance by Resilience Insurance.

[smartcode_project_cta:default project_id=144442]

Groundbreaking marks start of construction at Keira Place in Wollongong CBD

Gold Coast-based developer <a href="https://www.apartments.com.au/developers/ignite-projects">Ignite Projects</a> has lodged a Development Application for a landmark $120 million precinct set to transform the southern gateway of the much-loved Spit.

Positioned at the most prominent entry point to the iconic peninsula, the project has been designed with a strong focus on architecture, public space, heritage and connectivity, delivering a revitalised parkland setting that invites locals and visitors to engage with the Broadwater.

Central to The Isles proposal is a significantly upgraded public realm, including landscaped open space, a new waterfront café, and a family-friendly park featuring a naval-themed playground, open lawns and improved pedestrian connections.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="de83a270-6091-4b26-bed0-86f9248e7f9e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%201.jpg?VersionId=vt79HlCOwV9F7eLQe9.Z3bv9JGLMaSP2" />

The design retains and celebrates key elements of the site’s history. The training mast from the vacant and degraded naval cadet building, which forms part of a former Navy minesweeper, will be preserved. The existing Navy Memorial will be relocated and upgraded in collaboration with the RSL, allowing it to be publicly accessible for the first time in years. 
&nbsp; 
Heritage-listed Humphreys Boat Shed remnants will remain and be incorporated into the landscape, while the site’s established Norfolk Pines will be retained, reinforcing the area’s character and sense of place. The enhanced parkland will ultimately create a long-term community asset at the entry to The Spit. 
&nbsp; 
The Development Application (DA) lodged with Gold Coast City Council includes 28 waterfront apartments across three levels, ranging in size from 145sqm to 383sqm, designed as a feature landmark within the precinct and complement the public domain.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="bbf94e00-b56a-47fb-a15d-3d17b0b1ec76" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%203.jpg?VersionId=A0vmBNE_KohYJo1EoZcmF5IVW4tT5aDo" /> 
&nbsp; 
Ignite Projects Director Josh Foote said the project as a whole had been carefully shaped to deliver a meaningful outcome for the wider community, not just future residents. 
&nbsp; 
“This is about more than delivering opulent apartments – it’s about creating a welcoming and memorable gateway to The Spit that people can enjoy every day,” Mr Foote said. 
&nbsp; 
“We’ve worked hard to ensure the public realm is a central part of the project, from the landscaped parklands and family-friendly spaces through to the preservation and celebration of important local heritage.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="443bbde5-8221-45f8-a549-dad2623df20c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%204.jpg?VersionId=iUl6nc.sHkjMdo_1RigwbwUz_celHJ3H" /> 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, The Isles adopts a considered subtropical approach, with the building form shaped to maximise natural light, cross ventilation and views to the Broadwater and surrounding parklands. 
&nbsp; 
Architect Rafael Contreras said the design responded directly to its unique coastal setting. 
&nbsp; 
“Rather than a typical built form, the architecture has been shaped by performance and experience – from optimising outlook and privacy to creating a strong connection to landscape and climate,” Mr Contreras said. 
&nbsp; 
“A central landscaped courtyard allows light, air and greenery to permeate the building, while the articulated façade introduces movement and rhythm inspired by the Broadwater.

“The Isles will create a place where people can gather, relax and connect with the water, while also delivering a refined residential product that responds to its unique setting.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="1089570d-1120-4302-9900-fb9f75c75c26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%205.jpg?VersionId=pl9qmKZNbaL3A7XjmD7sjhLwmXaqzzLZ" /> 
&nbsp; 
The DA relates to the residential and public realm components, with a proposed boutique marina to be progressed as part of a future stage, subject to separate approvals. 
&nbsp; 
The Isles is being delivered under The Spit Master Plan, a collaborative vision to create a new residential, tourism, leisure, natural environment and cultural heritage hub on the iconic and much-loved peninsula.&nbsp; 
&nbsp; 
Ignite Projects has an established track record delivering premium residential projects across the Gold Coast, including The Monaco at Main Beach and Cabana at Palm Beach. 
&nbsp; 
Sales for The Isles are expected to commence in coming months from an on-site display suite, with construction targeted to begin later this year, subject to approvals.

Ignite Projects unveils exciting details of landmark gateway precinct for the Spit

The Federal Government’s sweeping changes to negative gearing and capital gains tax could trigger an unintended consequence: a surge of investor demand into the new and off the plan apartment sector.

While Treasurer Jim Chalmers has framed the reforms as a way to improve housing affordability and rebalance the tax system, the carve-outs for newly built housing are already positioning off the plan apartments as one of the few remaining tax-effective property investment plays.

Under the changes handed down in the Federal Budget, investors purchasing established properties after budget night will no longer be able to access negative gearing benefits. The Government will also replace the long-standing 50 per cent capital gains tax discount with a new inflation-indexation model and introduce a minimum 30 per cent tax on gains from July 2027.

However, there is a major exemption.

Investors buying new builds, including off the plan apartments, will still be eligible for negative gearing and will be able to choose between retaining the current 50 per cent CGT discount or adopting the new indexed model.

That distinction is expected to reshape investor behaviour almost immediately.

For years, established housing has dominated investor purchases because of its perceived lower risk, immediate rental returns and stronger historical capital growth. But with the tax advantages now heavily skewed toward new housing supply, the economics are changing rapidly.

The Federal Government has been explicit about its intent.

“The housing market and tax system are broken,” Chalmers said ahead of the Budget, arguing that existing concessions were disproportionately rewarding speculation rather than supporting housing supply.

The Government says the reforms are designed to encourage investment into new housing rather than established stock, a move aimed at increasing supply during a prolonged housing shortage.

According to the official Budget papers, limiting negative gearing to newly built homes is intended to “better align tax incentives with housing supply objectives.”

For the apartment development sector, particularly the off the plan market, the changes could become one of the strongest investor tailwinds in years.

Developers across Sydney, Melbourne and Brisbane have spent the past two years battling elevated construction costs, higher interest rates and subdued investor confidence. Many projects have struggled to secure sufficient pre-sales to commence construction, particularly in markets heavily reliant on investor demand.

The Budget changes may now alter that equation.

Investors seeking tax-effective property exposure will increasingly find themselves funnelled toward newly built apartments simply because established dwellings no longer offer the same benefits.

Commonwealth Bank described the reforms as one of the most significant shifts to residential property investment settings in decades, noting that the package is centred around “limiting negative gearing for residential property to new builds” while replacing the existing CGT framework.

That could have profound implications for the apartment sector.

Off the plan apartments already hold several advantages for investors. Purchasers typically secure a property at today’s price while settlement occurs years later, allowing time for capital growth and reducing the upfront capital burden. Brand-new apartments also generally attract depreciation benefits, lower maintenance costs, and stronger appeal to renters seeking modern amenity.

Now, they may also become one of the only residential property types still offering the full suite of historical tax advantages.

Industry analysts expect investor demand to increasingly migrate toward projects that can clearly demonstrate strong rental demand, transport connectivity and long-term supply constraints.

The shift is likely to be particularly pronounced in apartment markets already underpinned by structural undersupply, including inner Brisbane, the Gold Coast, parts of Sydney’s Lower North Shore and select Melbourne precincts where new apartment commencements have collapsed over recent years.

The reforms also arrive at a time when apartment supply nationally remains critically constrained.

Australia is already struggling to meet the Federal Government’s target of delivering 1.2 million new homes over five years. Construction feasibility pressures have delayed or shelved thousands of apartments across the country, particularly as building costs remain elevated and financing conditions remain tight.

Critics of the Budget changes argue the reforms could reduce overall investor participation in the housing market and place upward pressure on rents by discouraging investment in established housing.

Some economists estimate the measures could reduce housing supply over the longer term if overall investor appetite weakens.

However, the Government is betting that redirecting investor capital into new housing supply will offset those concerns.

“To continue to incentivise construction of new housing, investors building new residential properties will be able to choose either the 50 per cent CGT discount or the new arrangements,” the Budget papers stated.

That wording has been closely watched by the development industry because it effectively positions new apartments as the preferred investment class within residential property.

For off the plan developers, the reforms could become a powerful sales tool.

Projects that have increasingly relied on owner-occupier demand may once again attract investors seeking to preserve the tax advantages still attached to newly built housing before the July 2027 changes take effect.

The reforms are also expected to sharpen the divide between established and new housing markets.

Rather than a broad investor retreat from property altogether, many analysts expect a redistribution of capital toward sectors still supported by Government incentives.

That could create stronger demand for apartment projects in key urban growth corridors and transit-oriented precincts where population growth, migration and rental shortages remain elevated.

The policy direction also aligns with the Government’s broader push toward increasing housing density in established urban areas.

Across Sydney, Brisbane and Melbourne, planning reforms are increasingly encouraging higher-density apartment development around transport infrastructure and activity centres. By maintaining tax incentives for new housing, the Federal Government is effectively reinforcing that agenda from a taxation perspective.

For apartment developers who have spent years navigating subdued investor confidence, the changes may ultimately become the catalyst that reactivates parts of the off the plan market.

While the broader property sector is still digesting the long-term implications of the Budget, one thing is already becoming clear.

The era of investors buying established apartments and houses primarily for tax advantages may be ending.

But for off the plan apartments, the investment story may just be beginning.

<button disabled="disabled" type="button"></button>

<button disabled="disabled" type="button">You have not enough Humanizer words left. Upgrade your Surfer plan.</button>

Investors to flood off the plan apartment market?

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>
Canberra's AMA house in Barton is on the market through Colliers International.
AMA House, 42 Macquarie Street was built in 1990 and is a modern four level, B Grade office building with 4,053 sqm of net lettable area and 110 car spaces.
It features a 3-star NABERS Energy rating.
Matthew Winter, Manager at Colliers International said, AMA House has a diversified income featuring strong value-add potential.
"The opportunity coincides with favourable forecast leasing conditions for the Canberra office market, which combined with an encouraging renewal outlook provide excellent grounds for strong financial performance of AMA House over the short to medium term," he said.
“AMA House offers investors an asset with staggered tenant expiry profile with major leases expiring in 2020 and 2022.
"There are strong opportunities for income and WALE enhancement.
“Australia’s positioning within the Asian economy remains crucial in continuing to attract new foreign investors from every corner of the globe.
"Direct flights from Singapore to Canberra since September last year has increased accessibility to the market and is evident in transactions completed in the first half of 2017.
“The pickup in leasing conditions this year has instilled investor confidence in the Canberra office market which is expected to continue into 2018 and result in further major sale transactions over the coming months."  
Over the past five years, approximately $4 million has been invested into the building, including the central plant upgrade in 2014 and refurbishment of service areas, bathrooms and foyer in 2015/2016.
</body></html>

jonathanchancellor-7SQnKwU6yx

Canberra's AMA House on the market through Colliers International

<html><body>
Queensland-based boutique property investment management firm OzProp has purchased a fully-leased cold-storage logistics facility for $22 million in South Queensland's Yatala Enterprise Area.
Located on the M1 Pacific Motorway between Brisbane and the Gold Coast, the 7,485 square metre complex is on 2.12 hectares of land and is purchased at a price per square metre of net lettable area of $2,939. 
It features office space, a diesel refuelling depot, workshop, weigh bridge and driver accommodation.
The facility is fully leased to Scott Refrigerated Freightways.
OzProp co-founder, Jorgen van Seters said “with over 1.5 billion tonne-kilometres of goods moved each day in Australia, demographic, economic and retailing trends are clearly supporting very strong growth in the logistics industry which already employs more than half a million Australians.”
Michael Parker, Managing Director of OzProp said the long lease tail, robust and sustainable yield, stable income to an ASX-listed tenant and the defensive location ticks all our boxes.
"It is a good asset class to add to the portfolio and it will be a long-term hold for our investors," he said.
</body></html>

South Queensland cold storage facility sold for $22 million

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
Multiplex will build the $81 million Biomedical Learning and Teaching Building for Monash University at its Clayton campus.
Designed by architects Denton Corker Marshall, the new building will provide a total of 11,400 square metres of learning space for Biomedical Science students.
Graham Cottam, Regional Managing Director Multiplex Victoria. said the are delighted to continue our ongoing collaboration with Monash University and play a pivotal role in its vision for higher education through delivering revolutionary learning spaces,” said 
Laboratories are built around a central area with smaller-scale labs for 60 to 120 students. The four laboratories can also be combined to provide a space for up to 240 students.
The Biomedical Learning and Teaching Building will also feature a 1,200 square metre informal hub that can accommodate 400 students.
Some labs will be built to Physical Containment Level 2 (PC2) and the façade will be pressure tested.
A hanging steel staircase that will be suspended from a skylight truss and connect the various levels of the facility.
Construction of the Biomedical Learning and Teaching Building is set to commence immediately. The project is scheduled for completion in November, 2018.
 
</div>
</div>
</div></body></html>

Multiplex to build Monash University $81 million Biomedical Learning Building

<html><body>
A fire station building dating back to 1912 in Sydney’s southern suburb of Hurstville has been put up for auction through Ray White.
The “Old Fire Station" at <a href="https://www.realcommercial.com.au/property-offices-nsw-hurstville-502516366" target="_blank">78/23 MacMahon Street</a> is a landmark freestanding strata office building in Hurstville CBD. It will be auctioned on September 28. The building’s original features such as high ornate ceilings, picture railings, cast iron fire place and original timber fire truck entrance doors are intact.
It has modern fitouts and eight offices/ consulting rooms with plumbing.
The land area is 276 sqm.
Other amenities include a kitchenette and a formal reception desk.
There are DA-approved medical consulting rooms, that suit dental, accountant, solicitor, architect, general offices etc. subject to Council approval.
It last sold for $1.2 million in 2010, according to CoreLogic RP Data.
The listing agent is Chris Munk of Ray White.
The property is owned by Professor Ian Harris.
 
</body></html>

Old fire station building in Sydney's Hurstville listed

<html><body>
<img src="https://counter.theconversation.edu.au/content/83455/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Specially designed fluid-filled roof panels can help make air conditioning significantly more efficient, according to new research.
These panels work like solar water heaters, except that they extract heat from the flowing fluid, rather than adding it. This has only been made possible through the development of new, highly reflective materials that allow more heat to be taken out of the fluid than finds its way back in, even in the heat of a sunny day.
As a result, the researchers, led by Eli Goldstein of Stanford University, calculate that these panels, when integrated into an existing air conditioning system, can use 20-50% less power to deliver the same amount of indoor cooling. This in turn could help smooth out demand peaks on the electricity grid in summer, cut energy bills, and reduce the risk of blackouts.
<h2>Cool research</h2>
For several years, the Stanford researchers and my own group at UTS in Sydney have been trying to design smart roof materials that will help dissipate heat from air conditioning systems more effectively.
Conventional air-conditioning systems get rid of their heat by simply venting hot air from the system’s outdoor fan unit. But the new design adds an extra step, using a heat exchanger to pass the normal refrigerant heat into the fluid, which can be either water or glycol. This fluid then flows into the rooftop cooling panels so the heat can be dissipated into the sky. 
<a href="https://www.propertyobserver.com.au/images/2017/09/13/file-20170912-3875-1ot1ggj.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/13/file-20170912-3875-1ot1ggj.png" alt="">
The old system and the new. Goldstein et al. Nature Energy
The previous problem with this approach was that on hot, sunny days – when you need air conditioning the most – the Sun makes the fluid-filled panels heat up, rather than cool down.
This problem has only been solved in the past three years, with the design of super-reflective surfaces that can repel 97% of the incoming solar energy. 
<h2>Feeling the heat</h2>
Nearly all synthetic and natural surfaces absorb at least 5% of incident solar heat. Even the best white roof paints typically absorb more than 10% of the Sun’s heat. The best-performing surface is a shiny, flawless layer of silver, but that doesn’t last very long in outdoor conditions. 
But what if we can protect the silver, and maybe even improve its reflective performance by placing it under a layer that also helps to reflect solar energy? Three research groups came up with possible solutions, two involving plastic coverings for the silver, and the third involving a complex layering of different oxide materials. 
At UTS, our approach involved using many layers of two different plastics, placed on top of the silver. The resulting material reflects 97% of the incident solar energy, repelling the sun’s heat so effectively that the fluid inside cools down, even on a hot day.
<h2>Look to the skies</h2>
As the new Stanford research confirms, these super-reflective surfaces can perform a neat trick: getting the rooftop to lose heat during the day in the same way it does on a clear night. On clear nights, upward-facing surfaces can drop to several degrees below the ambient temperature because their heat dissipates high into the sky. The new super-cool roof panels do the same in the daytime as well. For example, they can condense dew well after sunrise even though the outdoor air temperature is above the dew point.
The panels can easily be retrofitted onto existing air-conditioning systems, ultimately saving money in the long run because of the reduced energy use. By modelling their system’s performance, the Stanford researchers calculate that the panels could reduce air-conditioning costs by 21% for a typical two-storey building in the sunny climate of Las Vegas.
These kind of hybrid systems could become commonplace, combining existing indoor air-conditioning technology with the new panels shedding the heat directly upwards into the sky. If you’ll pardon the pun, things are really looking up for those aiming to bring their energy bills down.
<a href="https://theconversation.com/profiles/geoff-smith-405762" target="_blank">Geoff Smith</a> is Emeritus Professor in Applied Physics, University of Technology Sydney and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

How the sky can help make air conditioners at least 20 percent more efficient

<html><body>
Pop-up retail is here to stay in Australia.
They are also a bellwether of the retail property market’s health, according to Savills director for Retail Services, Leighton Hunziker.
While casual leasing focuses more on common area leasing, a pop-up business occupies what is traditionally a leased tenancy.
Landlords are embracing the concept in the absence of being able to secure long-term covenants. Pop-up retail can exist for a variety of reasons, including:
Because there is a vacancy in the shopping centre and there’s no long term tenant wanting the space
If the shop is earmarked for development and the landlord wants some activation prior to the start of demolition 
More rarely, if the landlord has devoted some space to allow entrepreneurial activity and would like to try out a new business.
Pop-ups started in Los Angeles in the late 1990s and were originally designed as a cheaper way to promote little known brands or products. 
However, their success attracted the attention of major manufacturers and in recent years, no label was too old or too high-end to open a pop-up under the right circumstances. 
In Australia, the current retail landscape is going through a period of reinvention as many traditional brands fail to differentiate themselves from the competition, and landlords are desperate to “keep the lights on” to receive at least some income rather than a vacant shop, writes Hunziker. 
Pop-ups rose in popularity as they benefit both retailers and landlords. 
They provide retailers a low-cost, low-risk platform to try something new. They also provide a low-rent and flexible duration to promote products.
For landlords, pop ups provide an income stream instead of a vacancy, while also providing a conversion opportunity to a long-term tenancy if the business succeeds.
“It’s important to remember that these pop-ups don’t operate just as a standalone alternative, and more often than not, they work in combination with traditional shopfronts as well as online retailing to help elevate brand recognition and target new audiences,” said Hunziker.
With consumers, pop-ups are popular because they offers something different, are more creative and available only for a limited time. 
The fear of missing out also plays a huge role, with 61% of shoppers listing seasonal products as the main reason to shop at a pop-up store, according to a PopUp Republic poll.
Pop-ups have been embraced by top brands. 
French designer Louis Vuitton showcased their winter men’s line in their first flash store in Milan, while Hermès sampled the market in a historically significant space in Kyoto, and then took their brand of luxury to customers in Causeway Bay with its mobile pop-up Silk Bar. 
The concept has been popular in Australia as well. Doughnut Time is a case in point.
Doughnut Time launched to the Sydney market via a 15 sqm pop up at Central Park (above) and, having successfully tested the market and delivered very strong sales, has now been converted to a high value 400 sqm permanent tenancy.
In Melbourne’s Richmond, pop-ups have become a regular feature on the Bridge Road discount fashion retail strip.
Other examples include Hello Kitty, Rue La La and Shoes.com which created pop-ups that provide sales and experiences not typically offered in traditional retail stores, whether through a shipping container that turns into a café, a two-day shopping event with a disc jockey, or a revolving door of different brands of footwear.
“In the future, it’s unlikely that the “online only” or traditional big box “brick and mortar” standalone approaches will be the most efficient,” says Hunziker.
Instead, pop-up shops are growing in popularity in combination with traditional and online retailing as a hybrid model to build more intimate relationships while creating unique, memorable 3D experiences that are aligned with the brand's values, he adds.
“In an environment where retail property is under stress, we expect that pop-ups will become increasingly popular. Landlords may continue to market pop-ups as new and exciting opportunities, however an abundance of this type of store may also reflect a certain amount of oversupply of retail space in Australia,” concludes Hunziker.
</body></html>

Pop-ups are a bellwether of retail property market's health: Savills

<html><body>
Sydney’s Inner West suburb of Leichhardt boasts a tight residential vacancy rate of 1.6 percent compared to 2 percent across Greater Sydney, driven by the high demand and lack of new supply, according to Savills.
The area is close to the CBD, has good transport links, good schools and plenty of parks and amenities. 
Historically, there has been little development activity across the suburb. Over the past 15 years, the number of residential dwellings in Leichhardt has increased by just four percent, according to Savills. 
However, recent rezoning and the ‘Parramatta Road Corridor Urban Transformation Strategy’ means all that is about to change. 
Residential building approvals have increased by 120 percent over the two years to the 2015-16 financial year. 
Interestingly, just five percent of these are detached houses, while the majority are townhouses and low rise apartment blocks.
The suburb has seen a 115 percent increase in residential property prices over the past decade, according to Sophie Chick, head of Residential Research at Savills and author of the Spotlight Residential Property Report on Leichhardt.
“The median value of a residential property in Leichhardt in July 2017 was $1,567,000 and $986,000 for a house and apartment respectively,” said Chick.
“Houses are a similar price to the neighbouring suburbs of Petersham and Lewisham to the south, around 10 percent cheaper than Stanmore, Annandale and Lilyfield and one third cheaper than Haberfield to the west.”
She said this was  partly due to the larger blocks of land available in the surrounding suburbs. By contrast, apartments in Leichhardt are a similar price to Lilyfield and more expensive than all other neighbouring suburbs.
The neighbourhood has a strong sense of community which stems from its rich Italian heritage. Following the Second World War, Leichhardt became a centre for the Italian community in Sydney. 
Many businesses in the area are Italian owned. Although it has become less distinctively Italian with the increasing gentrification of the suburb and movement of families to suburbs with larger blocks of land, its Italian character still persists.
Leichhardt offers a mixture of property types and attracts a wide range of households. 
Families with children account for 39 percent of households, slightly below the average across Greater Sydney of 47 percent. By contrast, there is a slightly higher proportion of couples without children and lone persons in the suburb compared to the city average accounting for 47 percent of households.
Employment opportunities and proximity to employment hubs are a key reason people are drawn to live an area. Leichhardt’s connections to the Sydney CBD means that a high proportion of residents in the suburb work in high value industries such as the Professional, Scientific and Tech sector and the Information Media and Telecommunications sector.
Chick went on to say that 50,000 new jobs are forecast along Parramatta Road over the next 30 years, which will only see Leichhardt’s popularity rise.
Parramatta Road has been one of Sydney’s major transport corridors since it opened in 1811, connecting the Sydney and Parramatta CBDs. 
In November 2016, the government released its new 30-year ‘Parramatta Road Corridor Urban Transformation Strategy’. The move is expected to drive new development to accommodate a diverse mix of commercial uses, employment zones and homes for 430,000 people. 
There is a target of 27,000 new residential dwellings and 50,000 new jobs along the corridor between Homebush and Camperdown.
Leichhardt is one of the eight strategic growth centres identified within the corridor, which will become the focus of future investment.
Chick said it is important to assess the outlook for Leichhardt in the context of the Sydney property market.
“Property prices in Sydney have increased substantially over the past 10 years in common with many other cities around the world. The market has benefited from strong economic conditions, low interest rates and an imbalance between demand and supply. More recently, while Sydney’s property market continues to see some of the strongest growth in Australia, the rate of growth has slowed.
“The affordability of residential property is one of the biggest challenges facing the city and will limit the demand from both first home buyers and home movers. Additionally, following the regulatory measures introduced to temper lending to investors, it is widely believed that the proportion of bank lending to investors could reduce. Demand from foreign investors is also likely to be tempered following the introduction of additional stamp duty charges”.
Overall, it is expected that the rate of price growth across Sydney will slow, with prices remaining on a ‘high plateau’ perhaps for some time. However, as Sydney’s population continues to increase, interest rates are low and infrastructure projects complete the long-term prospect for the residential markets remain sound.
In Leichhardt, the attributes that attract buyers, including the proximity the Sydney CBD, good transport links and high quality amenities, will continue to appeal, regardless of market conditions.
 
 
</body></html>

Sydney's Leichhardt has low vacancy rate and good growth prospects: Savills

<html><body>
A three bedroom house near the Murray River in Buronga, NSW has been listed for mortgagee sale.
Located at <a href="https://www.realestate.com.au/property-house-nsw-buronga-126270402" target="_blank">204 Pitman Avenue</a>, the 937 sqm property is five minutes from Mildura.
It last sold for $68,000 in 2006.
It features three bedrooms, all with their own walk-in robes, while the master has its own walk-in robes and ensuite.
The kitchen features a 900mm gas cooktop and oven, walk-in pantry, gas heating, HWS and ducted cooling.
A separate lounge is available and it could be converted into a study or fourth bedroom.
An entertainment area is also available and overlooks what could be a pool.
The property is offered through Brett Driscoll of Ray White for September 23 mortgagee auction under instructions from Westpac.
Another three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-buronga-123775594" target="_blank">176 Pitman Avenue</a>, Buronga (below) was recently sold in June for $253,000.
<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/2017/09/12/176%20Pitman%20Avenue.jpg" alt="">
</body></html>

Buronga, NSW house listed for Westpac mortgagee sale

<html><body>
There are several possible risks facing Australia's housing markets: a change in sentiment leading people to stop buying homes, the crackdown on investor lending, rising interest rates, and a glut of new homes to be absorbed. 
I heard Tapas Strickland of NAB note that he just can't see a meaningful housing correction coming looking at the fundamentals, and on today's evidence he will be proven right.
A couple of dozen lenders have dropped their mortgage rates since July 1 to entice homebuyers back into the market, and even by the end of July this was clearly working. 
Not only have homebuyers not shunned the market, they are coming back in droves, with the number of owner-occupier commitments excluding refinancing surging 4.5 per cent higher in July, with the trend result rising to the highest level since the financial crisis stimulus. 
<div id="post-body-3188059144906675382" class="post-body entry-content">
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/09/13/A6.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><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/2017/09/13/A6.jpg" alt=""></div>
 <div>Loans for the purchase of established dwellings jumped 5 per cent in July, and average loan sizes are gently trending to new highs too. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/13/A2.jpg" target="_blank">Click to enlarge</a></div>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/13/A2.jpg" alt=""> <div class="separator"> </div>
<div> </div>
<div>As a result, owner-occupier commitments rose to a record high in July 2017, helping to offset a 7-month decline in investor loans, with total monthly housing finance still tracking at around $33 billion. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/13/A1.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><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/2017/09/13/A1.jpg" alt=""></div>
 <div class="separator"> </div>
<div>First homebuyer incentives are also back in play from July 2017 forth, and the number of first homebuyer loans immediately rose to the highest level in 44 months.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/13/A3.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><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/2017/09/13/A3.jpg" alt=""></div>
 <div>The number of first homebuyer loans in New South Wales jumped to the highest level since 2012, while in Victoria the figure hit the highest level since 2013, consistently reflected in rocketing auction results in markets such as Geelong. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/13/A7.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><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/2017/09/13/A7.jpg" alt=""></div>
<div> </div>
<div>In fact, my state level analysis, not posted here, shows that homebuyers in Victoria are by far the most ebullient of all states and territories, with new loan activity in New South Wales also rising.</div>
<div> </div>
<div>Finally, as for the glut of new stock, there was upbeat news here too, with the number of homebuyers financing new dwellings accelerating to the highest level in 38 years. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/13/A5.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><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/2017/09/13/A5.jpg" alt=""></div>
 <div>New home sales are trending down, suggesting that the rate of construction will fall over the next few years, but on this evidence homebuyers will gladly mop up the new stock as it's released to the market (on the flip side, taxes will slow buyers from offshore investors, while domestic investors are finding it harder to access credit). </div>
<div> </div>
<div>A lot of people seem frustrated by this, but the housing juggernaut does not conform to ideologies, and for now it continues to power on. </div>
</div>
<h3 class="post-title entry-title"><a href="https://petewargent.blogspot.com.au/2017/09/home-loans-back-in-favour"> </a></h3>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
<h3 class="post-title entry-title"><a href="https://petewargent.blogspot.com.au/2017/09/home-loans-back-in-favour"></a></h3>
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
<h3 class="post-title entry-title"><a href="https://petewargent.blogspot.com.au/2017/09/home-loans-back-in-favour"></a></h3>
</body></html>

pwargent-M4siyDbqQY

Home loans back in favour: Pete Wargent

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
An economic update from Cushman &amp; Wakefield notes a geopolitical crisis is a major risk to the steadily improving global economy in 2017 and continued growth in Australian commercial real estate (CRE) markets.
According to Cushman &amp; Wakefield there have been a number of events over the past year with the potential to impact global economic growth such as the UK triggering Article 50, the fight for Raqqa, the US, French and Iranian Presidential elections, US rate rises and various terrorist events. Most of these have had little or indeed have had a positive impact. 
John Sears, national director of Research from Cushman and Wakefield said in recent weeks, tensions between North Korea and the US have escalated and subsided, leading to concerns over how Australian CRE might be impacted if a geopolitical conflict were to occur.
The research examines major conflicts or geopolitical events over the past 100 years or so and how Australian CRE, consumer sentiment, US bonds and Australian GDP have responded.
"History suggests that most recent conflicts, or events that have de-escalated short of actual conflict, while hitting confidence in the short-term, have had little impact on Australian CRE," Cushman &amp; Wakefield said.
"A longer-term conflict involving our key trading partners such as the US, Japan, South Korea or China would be likely to hurt Australian economic growth and Australian CRE, however, at this stage this appears a low probability.
"If this remains the case, Australian CRE should remain attractive, supported by an improving economy and relatively attractive yields when compared to bonds and major international CRE markets."
Australian CRE and historic conflicts
"Figure 1 indicates that since 1985, Australian office yields, as indicated by the MSCI/IPD Office Income Return, have been influenced more by the domestic economy than conflicts such as the two Gulf wars or the 9/11 terrorist event," Cushman &amp; Wakefield said.
"During Gulf War I (August 1990 to February 1991), yields did increase though this coincided with an Australian recession and CRE crash when vacancy rates in many Australian CBD office markets rose to over 20%. After the 9/11 terrorist event, CBD office market vacancy rates and office income returns recorded little change. Similarly, there was little change to yields after start of Gulf War II.
<a href="https://www.propertyobserver.com.au/images/2017/09/11/Jagona1.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/09/11/Jagona1.png" alt="">
Sentiment and historic conflicts
"While CRE yields have recorded little change due to conflict in recent decades, sentiment has been hurt in the short term.
"Figure 2 highlights a jump in consumer sentiment at the end of the Vietnam War and dips when the Gulf and Falklands wars commenced as well as after 9/11. However, the dips have been relatively short lived and also coincided with recessions in the early 1980s and 1990s.
<h2 class="p1"><a href="https://www.propertyobserver.com.au/images/2017/09/11/Jagonal2.png" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px;">Click to enlarge</a></h2>
<img src="https://www.urban.com.au/images/2017/09/11/Jagonal2.png" alt=""> 
US Bond Yield and historic conflicts
"A key driver of investment demand for Australian CRE has been relatively attractive yields compared to alternate investments such as bonds.
"While our historic CRE yield series is relatively limited, US government bond data is available back to the 1870s. Figure 3 indicates that during the major conflicts of World Wars I and II, US bond yields were relatively stable.
"However, yields dipped in the months after both Gulf wars commenced and post 9/11 as investors initially sought the relative security of US government debt. Stable or lower bond yields suggest CRE should remain relatively attractive to investors. However, a reduction in CRE income through an economic slowdown could negatively impact demand.
<a href="https://www.propertyobserver.com.au/images/2017/09/11/Jagonal3.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/09/11/Jagonal3.png" alt="">
<h2>Australian GDP and conflict</h2>
<a href="https://www.propertyobserver.com.au/images/2017/09/11/Jagonal4.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/11/Jagonal4.png" alt="">
"Tenant demand, vacancy and rental growth depends on economic growth.
"Figure 4 shows Australian GDP from 1900 to 2016 and indicates that the economy did suffer during prolonged periods of conflict.
"GDP falling by an average of 1.4% pa during World War I.
"Economic growth was more volatile during World War II.
"Initially dipping to 0.3% in 1939 and then experiencing strong growth averaging 8.2% pa from 1940 to 1943 before slipping to average -4.2% pa over 1944 and 1945.
"During the Korean War, GDP real growth averaged a solid 3.8% pa (but did dip to 0.9% in 1952) and averaged 4.4% during the Vietnam War (from the escalation of US participation in 1965 to 1975).
"As noted earlier, Australia suffered recessions in the early 1980s and 1990s that were more influenced by local factors than conflicts such as the Falklands and Gulf I wars. Since 1991, Australia has not experienced a recession, aided by our increased trade with China, while most other advanced economies were negatively impacted by the tech wreck, 9/11 and the GFC."
</div>
</div>
</div></body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News