A new 25-storey apartment tower proposed for Mercer Street would push Geelong’s western gateway skyline higher, with Morphy Birrell Property Group lodging plans for a project directly beside one of the city’s most significant heritage streetscapes.

The <a href="https://www.apartments.com.au/architects/fk-australia">FK</a>-designed development at <a href="https://www.apartments.com.au/new-apartments/65-67-mercer-street-geelong-vic-3220">65-67 Mercer Street</a> has now been referred to Victoria’s Planning Minister. The site sits opposite the Geelong rail corridor and immediately south of the heritage-listed St Peter and Paul’s Catholic Church and Ashby Hall precinct.

Rather than compete with the neighbouring ecclesiastical buildings, the proposal adopts a sculpted podium intended to reference the materiality and scale of the heritage context. Planning documents note the design draws cues from the “dark stone brick” church and surrounding masonry buildings, while the tower above transitions into a softer, curved form oriented toward Corio Bay and the Geelong waterfront.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="b797d10c-d4a6-47af-b8df-1aeaa3b382be" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/public%20square.png?VersionId=QGIpcz1x1hKB6lQLl2iobyHqb6PS2Ztc" />

The development forms “Stage 5” of Morphy Birrell Property Group’s broader Mercer Street precinct strategy, following the completion of the 21-storey Miramar tower on Cavendish Street and several additional approved redevelopment stages nearby. Planning consultants Ratio said the proposal “represents an exemplary development outcome” aligned with the strategic ambitions for Central Geelong’s continued urban renewal.

The mixed-use project would replace an existing low-rise commercial building and surface parking area on the 3,320 sqm corner site. FK’s urban context report describes the proposal as a residential development comprising apartments, resident amenities, commercial space, and integrated landscaping positioned to maximise bay views and northern sunlight access.

Renders show a deeply articulated tower with curved balconies stepping above a lower masonry podium that frames a landscaped forecourt facing Mercer Street. The design intentionally preserves sightlines toward the adjacent church buildings, with the podium scaled to reinforce the heritage edge before the tower recedes upward.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="2bdca91e-66f7-4ac7-8baa-2f93bd5b564e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/geelong%20site.png?VersionId=QOhbino4ZgzKYw5dW3QE14E.2yq.Sv87" />

The planning report highlights the site’s strategic location within 400 metres of key Geelong destinations including Cunningham Pier, the Geelong Station precinct, Deakin University, and the convention centre. Bus services run directly along Mercer Street, while the Corio Bay foreshore sits around 100 metres north of the site.

The proposal arrives amid accelerating redevelopment across central Geelong, where planning policy continues to encourage higher-density housing close to transport infrastructure and the waterfront. Mercer Street in particular has emerged as a focal point for taller apartment development due to its proximity to Geelong Station, the bay, and major civic infrastructure.

Joel Robinson

Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct

Development giant&nbsp;<a href="https://www.apartments.com.au/developers/hamton">Hamton</a> and joint venture partner Hostplus have revealed the next residential stage of their $3 billion Moonee Valley Park masterplan, lodging plans for 512 more apartments within the precinct on surplus racecourse land at 110 Wilson Street, Moonee Ponds.

The proposed development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/trackside-house-110-wilson-street-moonee-ponds-vic-3039">Trackside Gardens</a>&nbsp;in the planning application, follows the <a href="https://www.apartments.com.au/news/vic/first-look-exclusive-hamton-and-hostplus-reveal-sixth-stage-of-moonee-valley-park-masterplan">recent unveiling of the sixth-stage Cox Place Precinct</a> and continues the long-running transformation of the Moonee Valley Racecourse into one of Melbourne’s largest urban renewal projects.

Positioned on the north-eastern edge of the racecourse adjacent to CityLink, Trackside Gardens will comprise three residential buildings rising between 61.8 metres and 86.4 metres within a heavily landscaped precinct shaped by Hamton’s Nature Based Cities framework.

The project forms part of the broader Moonee Valley Park redevelopment being delivered by Hamton, Hostplus and the Moonee Valley Racing Club, which is reshaping the 40-hectare racecourse site into a mixed-use neighbourhood with housing, retail, commercial space, hotels, parkland and community infrastructure.

Trackside Gardens sits separately to the recently proposed Cox Place Precinct, a five-building stage comprising around 1,100 residences, two build-to-rent buildings, two build-to-sell towers, retail, office space, and a hotel overlooking the racetrack. Together, the projects continue to accelerate housing delivery across the precinct.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="5fc1941e-52d3-41c6-abc4-0f13fe8ae5ea" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/DA%20Edits%20%281%29.png?VersionId=7qwRHq5dcvXWNot2hNOgoQhN2GIWudNK" />

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a> with landscape architecture by Tract, Trackside Gardens has been conceived as a botanical-style residential precinct prioritising canopy planting, communal green space, and vertical landscaping.

“The architectural vision for the proposed development centres around buildings in a botanical park setting that champions the important role of nature,” the planning submission states.

“The proposal incorporates principles of biophilic design, with landscape and environmentally sustainable development influencing the ultimate design response of the buildings and prioritising the ground plane to ensure a high amenity for both occupants and visitors.”&nbsp;

Trackside Gardens will deliver 512 apartments across the three buildings, alongside 518 basement car spaces and 523 bicycle spaces. Around 20 per cent affordable housing is proposed across the broader North East Precinct, equating to around 158 dwellings.&nbsp;

The affordable housing component will be concentrated within the Wilson East building, while the remaining apartments are expected to be delivered as build-to-sell residences.

Trackside Gardens has been designed around Hamton’s Nature Based Cities initiative, founded by Executive Chair Paul Hameister OAM in partnership with the University of Melbourne, Urbis, Ark Resources and Tract. The initiative promotes integrating higher-density urban development with significant biodiversity, tree canopy and landscape outcomes.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="89353449-7b3c-42fd-8fd8-8bf64a5ef80f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_4.png?VersionId=X8jRt0P2L7fIWjLhfX6gPknXToXIBeLj" />

A comprehensive landscape strategy would introduce deep soil planting, vertical greening, communal gardens, and new pedestrian links throughout the site.

Planning documents state the development is targeting a 5 Star Green Star Buildings rating, a 7.5-star average NatHERS rating, and “Exemplary” Nature Based Cities certification.&nbsp;

The proposal joins an expanding pipeline of approved and proposed buildings within Moonee Valley Park, including the recently launched Eveline apartments and the approved Grandstand North and South towers.

Hamton has increasingly focused on precinct-scale, nature-led communities across Melbourne’s middle-ring suburbs, with projects spanning Hawthorn, Kew, and Moonee Ponds.

Hampton unveils Trackside Gardens, latest stage of $3 billion Moonee Valley Park masterplan

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]

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

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

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

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<img src="https://counter.theconversation.edu.au/content/82307/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
There was genuine positivity at this year’s Australian Booksellers’ Association Conference in Melbourne in June.
The mood was one of camaraderie and optimism at the sharing of good news. And it only brightened with the news that our National Bookshop Day was to be rebranded this year as Love Your Bookshop Day. Why not?
Saturday is that day. Expect to see your local bookshop buntinged, postered, streamered and perhaps offering special bargains. Assuming, of course, you have a local bookshop. 
Store numbers have steadied in recent years and, as was reported at the conference, both independent and chain or franchise booksellers are expanding. Children’s book sales in particular are performing well. (“The bookshop is dead. Long live the bookshop,” reads a plaque at Embiggen Books in Melbourne’s CBD.) 
But over the past couple of decades the sector has wrestled with the challenges of superstores, GST, the GFC, one-sided international post deals, ebooks and online-only undercutters.
Now the greatest of these online stores, certainly in terms of market share, will soon be competing with Australian bookstores from a new base here. Amazon has secured a massive distribution centre site near Dandenong in outer-eastern Melbourne. Dire predictions for parts of the Australian retail sector have already been made. 
Local booksellers too will need to adjust to this new environment, in which Amazon will likely reduce its delivery time and charges significantly. This will place downward pressure on book prices, and thus booksellers’ margins and capacity to survive.
Amazon has itself experimented with physical bookstores in recent times, to underwhelming reviews, but its primary focus has, of course, been on being able to offer “everything” at the “everyday low prices” of its American precursors (and sometime role models), Walmart and Costco.
Today’s booksellers must choose what to put on their shelves from around 7,000 new releases each month. As all of these will be on the “shelves” of Amazon, local booksellers will need to maintain an intimate knowledge of what will appeal to their customer base.
This curatorial role, which has always been part of what good booksellers do, takes on extra importance in the digital age. Curating, one might say, is the opposite approach to that of Amazon, which instead expertly removes barriers to purchasing, encouraging impulse buying. The extra services local booksellers provide, in addition to low prices and the range of stock, will likely need beefing up also. Community building will be the order of the day.
The current shrinkage of review pages of broadsheet newspapers will also hurt many bookshops, as they depend on a degree of consensus as to what is important and valuable to read.
Price instability may well grow in Australia with the arrival of Amazon. Publishers have argued over the decades that this instability also discourages consumer confidence.
The Productivity Commission doesn’t accept arguments in favour of maintaining price levels for some products in order to keep the costs of others down. But regulatory bodies have special challenges when confronted with large, diverse conglomerates, such as Amazon. It has the capacity to drop prices for products in one category (such as books) to maximise competitiveness, while the overall bottom line is propped up by more profitable parts of the business (such as Amazon Web Services).
In the face of aggressive price cutting from firms like … well, Amazon … regulatory bodies concerned with fair prices for consumers are yet to find an effective means of properly accounting for the fact that its success has been partly based on exploiting publicly developed (and funded) technology and infrastructure, determined strategies of tax minimisation, aggressive use of IP and patent law, and sustained intransigence towards its workforce’s self-organisation and unionisation.
On Tuesday morning this past week, a crowd of parents and kids waited in the cold out the front of our local suburban bookshop till, at 9 o’clock, they could rush in and buy the latest Treehouse book, by Andy Griffiths. The bookseller handed out free copies of a quality cookbook to parents. Community spirit, human connectedness and customer loyalty all bloomed nicely.
As the legendary Collins bookseller, Michael Zifcack, recalled in his memoirs, “I realised early on that customer service was the secret of successful bookselling.”
I’ll be heading to that local shop on Saturday, but can also, of course, appreciate the access to more or less every available product that online shopping provides. No doubt there is room for both retail models within our society.
What remains most important, when thinking about the health of the book industry here, is that no matter how cheap we make these products, there won’t be effective demand for them unless people have the time and desire to read. 
This desire, in turn, rests most powerfully on the belief that what one knows and says matters; that democracy, its public sphere, and reason, evidence and logic are the driving forces of one’s society. For all of us, that challenge is ongoing and, broadly speaking, we will get the books and bookshops we deserve.
<a href="https://theconversation.com/profiles/nathan-hollier-13619" target="_blank">Nathan Hollier</a> is Director, Monash University Publishing, Monash University and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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jchancellor-FAypfDUnLy

Love of bookshops in a time of Amazon and populism

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A tenanted showroom and warehouse facility in Melbourne’s Box Hill has been sold to a developer for $3.5 million in an off-market transaction. 
The <a href="https://www.realestate.com.au/property/482a-station-st-box-hill-vic-3128" target="_blank">480-482A Station Street</a> site was held by a private vendor for more than 40 years.
With a land area of 1,020 sqm, the yield works out to be a little less than 3% yield. 
Cushman &amp; Wakefield’s Robert Colaneri and Andrew O’Connell brokered the deal on behalf of the vendor. 
The property comprises a single level showroom and warehouse facility.
It was sold with an existing long-term tenant in place, Abbeys Auctions. 
The site is close to Box Hill Train Station and Box Hill Shopping centre and within close proximity of Box Hill’s ‘Major Development Precinct’, a retail and commercial precinct that has experienced a substantial uplift in development activity, including the Whitehorse Towers and Sky One buildings currently under construction, according to Colliers.
The site is zoned industrial 3.
“Box Hill has emerged as one of Melbourne’s hottest development and investment markets and the price per square metre (approximately $3,500 per sqm), as well as yield secured for the Station Street property is amongst the highest of any Melbourne industrial transaction,”  said Colaneri.
“Investment into Box Hill has risen dramatically with a number of sites along Whitehorse Road and Prospect Street recently transacted.” 
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jonathanchancellor-7SQnKwU6yx

Box Hill showroom sells for $3.5 million to developer 

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A development site in Melbourne’s eastern suburb of Camberwell has been snapped up by a Chinese developer for $5.5 million before its auction by Savills.
The <a href="https://www.realestate.com.au/property-house-vic-camberwell-125961234" target="_blank">1059-1061 Toorak Road</a> site was set for auction on August 18.
The two adjoining residential properties are zoned General Residential 5 and have the potential for the development of a luxury residential project, according to Savills. 
The buyer has plans for a luxury apartment project.
The deal reflects a rise in demand for apartments in Melbourne’s leafy inner east suburbs. In May, a development site with permit for residential units in Camberwell sold for $2.3 million through Savills.
The deal was brokered by Savills’ Nick Peden, Jesse Radisich, Julian Heatherich and Benson Zhou. 
The sale represented a 16% percent premium ($389,000 per block) on the auction price of nearby 1065 Toorak Road just a few weeks back and showed the strength of the market, Savills said.
The land area is 1,700 sqm.
“The sale ($2.75 million per block) represents a 16% premium on the single house block sale of 1065 Toorak Road in June 2017 for $2.361 million at auction by a local residential agent,” said Nick Peden.
The population of Camberwell is expected to grow by 31% over the next 25 years, which reflects the popularity of the suburb and hence its development prospects.
The site is close to retail amenities such as Hartwell Retail Village, Camberwell Junction and also public transport.
Camberwell and surrounds are also home to some of Melbourne’s elite schools and education facilities.
Camberwell has a high median house price of $2,295,500, said Savills.
Meanwhile, another Camberwell development has sold for $5.01 million, making it Melbourne’s most expensive weekend auction sale.
Located at <a href="https://www.realestate.com.au/sold/property-house-vic-camberwell-125960974" target="_blank">5-7 Braeside Avenue</a>, the 1552 sqm has been approved for development.
Designed by Alta Architecture the property is approved for eight town homes with a north rear orientation.
<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/2017/08/13/5-7%20Braeside%20Avenue-2.jpg" alt="">
The property is minutes to the Monash freeway, Toorak Road tram and walking distance to shops and Lynden Park.
The median price of a house in Camberwell is $2,117,500, which is an increase of $97,500 compared to last year’s median price.
The property was offered through Marshall White agents Nick Ptak and Zali Reynolds.
 
 
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Development site in Melbourne's Camberwell sells for $5.5 million before auction: Savills

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Balmain Corporation has completed the purchase of D’ALBORA Marinas from Ardent Leisure.
The deal was valued at $126 million when it was announced last year.
Goldman Sachs and Sydney‐based commercial property lender and fund manager Balmain Corporation formed a joint syndicate to buy the portfolio from Ardent Leisure.
D’ALBORA Marinas comprises seven marinas at Rushcutters Bay, The Spit and Cabarita Point in Sydney, two marinas adjacent to the Melbourne CBD and two at Nelson Bay and Akuna Bay, north of Sydney.
The marinas currently offer boat users 1,700 berths alongside more than 200 retail outlets, providing a various amenities.
The acquisition bolsters Balmain’s current maritime portfolio which includes Martha Cove, Horizon Shores and Port of Airlie. 
The combined group will have 3,000 berths spanning the eastern seaboard of Australia.
“Our strategy is to change the way marinas operate in Australia by significantly deepening the customer service offering,“ said Andrew Griffin, CEO of Balmain Corporation. 
“Marina customers should be entitled to be treated like hotel guests and the breadth of our holdings will allow us to start this journey for D’ALBORA customers. 
He added that Balmain Corporation will set up concierge/valet services, food and beverage and upgrade amenities at its marinas.
Building upon their maritime expertise over the past decade, Balmain anticipates a smooth transition for D’ALBORA’s staff, customers, tenants and suppliers.
Brett Bolton will remain as CEO of D’ALBORA.
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Balmain Corporation completes acquisition of d'Albora Marinas 

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Affordability nationwide improved in the five years between 2011 and 2016 – that’s one of the more interesting facts to emerge from the 2016 Census data. 
An analysis by population analysts profile.id finds that the median mortgage payment in 2011 was $1,800 per month, but in 2016 it was $1,755. Over the same period the median household income increased from $5,330 to $6,205 per month. 
Of course, these are national average figures and they conceal myriad differences among the various states and cities. The biggest improvements in affordability, in terms of the reduction in mortgage payments, occurred in Queensland and the ACT. 
But there was even a small improvement in New South Wales, notwithstanding the big price rises in Sydney. 
Unsurprisingly, the biggest single factor in the reduction in mortgage payments was the decrease in interest rates. In 2011, the official cash rate was 4.5 percent and by 2016 it was 1.5 percent. Glenn “the Census expert” at profile.id says: “While the banks have passed on less and less of these cuts, it’s certainly the case that mortgage interest rates being paid by home owners in the past five years have reduced.” 
Perhaps the most startling fact is that the median mortgage payment for the Greater Sydney area was the same in 2016 as it was in 2011. And in Melbourne the median mortgage payment reduced slightly. 
The analysis examined mortgage payments for people aged between 18 and 34 who have a mortgage and don’t live at home with their parents – i.e. looking at the profile most likely to include first-time buyers. This is where the improvement in affordability was actually the highest, in terms of the reduction in median mortgage payments between 2011 and 2016. 
In the ACT, for example, median monthly payments dropped from $2,460 to $2,140, while in Queensland they fell from $2,165 to $1,958. Even in NSW, the median mortgage payment for this demographic dropped from $2,182 to $2,129. 
As Glenn points out: “There are very large falls in mortgages in the ACT ($320/month) and Queensland ($207/month). But even in Sydney and Melbourne, which have seen rapid escalation of housing prices, there have been modest declines in what 18-34 year olds are actually paying on their mortgages when they have them. 
“So in fact, a larger part of the decline (in mortgage payments) is in this key group. Probably because they have the larger mortgages and are more affected by changes in interest rates. So, while we have seen that children are delaying leaving home longer (though not much longer), once they do leave home they are actually paying less to buy a house.” 
These figures put another perspective on the general issue of housing affordability. 
But here’s the thing: every day the Hotspotting team scours media sources for information on residential real estate and, to date, we haven’t found any coverage of this very thorough and professional analysis of the affordability situation. 
No newspaper or other media outlet has run this story. Why not? Because it doesn’t suit the pre-conceived storyline, the much-beloved theme of everyone being priced out of the market. 
Another reflection of media bias on this subject came earlier in the year when one of the major affordability indexes published the latest findings. There were two scenarios: in annual terms, affordability had improved in most states and territories, but comparing the latest quarter to the previous quarter, affordability had declined in most states and territories. 
Every media outlet which ran an article in this report focused on the quarter-to-quarter deterioration and totally ignored the annual improvement. 
Media has created a “crisis” by selectively using data to support the favoured theme which says no one can afford to buy any more. It’s obviously rubbish but that’s what they keep telling us – and so when someone runs a survey on the issue, a majority of citizens say they believe young people are priced out of the market everywhere. 
It’s sad how dishonest our media is and also sad how easily people are deluded by it. 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
 
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terryryder-YECXbqmri2

Affordability actually improving in terms of mortgage payments: Terry Ryder

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A Victorian warehouse is soon to go under the hammer through Colliers International.
The <a href="https://www.realestate.com.au/property/79-83-abercrombie-st-chippendale-nsw-2008" target="_blank">79-83 Abercrombie Street</a> property in Chippendale is a three-story warehouse. 
The inner-city suburb of Chippendale is witnessing a growing trend with its industrial buildings being brought back to life. Old warehouses are being converted for creative commercial use, student accommodation and residential, leveraging off the increased expenditure from institutions such as UTS, Sydney University and Notre Dame, noted Colliers.
The listing agents are Miron Solomons and Matt Pontey of Colliers International.
The Abercrombie Street property has a colourful history, previously housing  J.C. Goodwin &amp; Co, glass importers, bevellers and silverers who were first established in the area in 1875. 
“The firm started at 79-83 Abercrombie Street and by the 1930’s had expanded to four factories in Myrtle Street. The building to this day, retains its local significance with the facade emblazoned with the company’s name,” said Miron Solomons.
The property was recently restored and sits on 393 sqm of land on the corner of Abercrombie Street and Myrtle Street. 
Boasting high ceilings and exposed timbers, the building is a throwback to Chippendale’s past.
The influx of new mixed use project in the nearby Central Park development has seen an increasing push in the surrounding area for Chippendale’s industrial warehouse past to be transformed to alternate uses.
“Chippendale is now at the forefront of being Sydney’s SOHO, south of the Sydney CBD this suburb is on the path to being one of Sydney’s most hotly contested locations,” said Matt Pontey.
“79-83 Abercrombie Street exudes New York loft style with exposed timber beams and an enviable ceiling height, abundant parking and loading dock, the building is a special piece of history that should not be overlooked.”
He said Colliers was witnessing a huge demand in the city fringe for creative office space conversions, as emphasized by the recent purchase of a Chippendale warehouse at 14-16 Buckland Street for $11.25m to UTS.
The property sold in 2001 for $2,120,000, according to CoreLogic data. 
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Period warehouse in Sydney's Chippendale up for auction 

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Sydney's beachfront Collaroy Hotel has sold to the Hemmes-owned Merivale group in an off-market sale.
The Collaroy Hotel was bought by Mitchell Waugh and others in 2010 and underwent wholesale renovations in October 2014 and was sold by Andrew Jolliffe, Asia Pacific Director of Ray White Hotels.
According to reports in The Australian, Justin Hemmes, chief executive of Merivale, said The Collaroy was in a “truly spectacular” location, with sweeping views of the ocean and sand literally at its door step.
“This is a really exciting addition to the group, and one that will beautifully complement what we’re creating at The Newport,” The Australian reported.
I love the northern beaches; it is a magnificent area and we are incredibly proud to be part of it."
The nearby Newport Arms Hotel was sold to Merivale in March 2015. The beachside watering hole also joins Merivale’s other northern beaches local, Papi Chulo in Manly.
Prior to these purchases the group concentrated on the inner Sydney market.
The deal saw Mitchell Waugh’s Public House Management Group (PHMG) sell the hotel and although none of the parties involved have revealed the figure Merivale has paid, many media outlets are putting the deal at around $21 million.
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Sydney's beachfront Collaroy Hotel sold to Hemmes-owned Merivale 

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Chair
Members of the Committee
It is a pleasure to be here in Melbourne to explain our thinking on the Australian economy.
My colleagues and I view this as an important part of the accountability process for the Reserve Bank.
As usual, we look forward to answering your questions.
Since we last met in February, the global economy has strengthened.
As a result, in most advanced economies, economic growth has been sufficient to push unemployment rates down further.
A number of countries now have unemployment rates that are close to, or below, conventional estimates of full employment.
Conditions have also improved in many emerging market economies, partly due to an increase in global trade.
Commodity prices have mostly risen over recent months.
In China, growth has surprised on the upside a little of late.
The main challenge there continues to be containing the risks from the build-up of debt, while at the same time keeping growth on a steady path.
This remains a work in progress.
Economic growth has also picked up in the euro area, with conditions the best they have been since the euro area crisis in 2012.
On the other side of the ledger, though, in the United States the earlier optimism that the new administration's fiscal policies would spur stronger growth has dissipated.
Since we last met, the Federal Reserve has increased interest rates twice and the policy rate in the United States now stands at 1¼ per cent.
Despite this, the US dollar has depreciated in global markets, which has surprised many observers.
The Bank of Canada has also increased its interest rate, reversing some of the policy insurance it took out earlier when the outlook was less positive.
Elsewhere, there is no longer an expectation that central banks will announce yet further monetary stimulus and some central banks have indicated that they may scale back some of the current stimulus if conditions continue to improve.
This is a positive development.
As well as this change in the outlook for global monetary policy, another prominent theme in discussions of the global economy of late has been the slow growth in wages.
Despite the success that a number of countries have had in generating jobs, wage growth remains low.
This is contributing to a continuation of inflation rates that are below target in most advanced economies, although in headline terms they are mostly higher than a year ago.
The reasons for the low growth in wages are complex.
The fact that it is a common experience across countries suggests some global factors are at work.
One possibility is that workers feel a heightened sense of potential competition; either from advances in technology or from international competition.
More competition means less opportunity to put your price up. In the case of workers, it means slower rates of increase in wages.
At the same time, many workers feel an increased sense of uncertainty and they feel less secure.
This too is contributing to slow aggregate wage growth.
The slow growth in wages is underpinning the low inflation outcomes in much of the world.
It is possible that these effects will pass and that the normal relationship between tighter labour markets and higher wages will reappear.
It is also possible that the current environment turns out to be quite persistent.
How things turn out on this front is likely to have a significant bearing on the next stage in the global economic cycle.
I would now like to turn to the Australian economy.
The most recent GDP data are quite dated now and are for the March quarter.
They showed growth weaker than we had earlier expected.
This, however, partly reflected temporary factors, including weather-related disruptions to production and quarter-to-quarter volatility in resource exports.
Since then, the recent run of data has been consistent with a pick-up in growth.
There has been an improvement in survey-based measures of business conditions and capacity utilisation has increased.
Employment growth has also picked up and retail spending has been a bit stronger of late.
Financial conditions remain favourable, with interest rates remaining low and banks willing to lend.
The Reserve Bank released its latest forecasts for the economy last Friday.
In summary, our central scenario is for GDP to grow at an average of around 3 per cent over the next couple of years.
This would be better than we have seen for some time.
The transition to lower levels of mining investment following the mining investment boom is now almost complete.
This means that falling levels of mining investment will not be a drag on the economy for much longer.
Instead, with some large LNG projects reaching completion soon, GDP growth is expected to be boosted by a lift in LNG exports.
For some time we have been looking for a strong pick-up in private business investment outside the resources sector.
This is taking longer to occur than expected.
While we do see positive signs in parts of the economy, many firms still show some reluctance to commit to significant investment, often citing a range of uncertainties.
It is possible that this reluctance will continue for a while yet.
But it is also possible that the improvement in business conditions that we have seen will give firms the confidence to invest more, after a period of under-investment.
We have incorporated a middle path into our own forecasts.
On the investment front a positive development has been an increase in spending on public infrastructure, particularly transport.
This is directly supporting aggregate demand and is having some positive spin-offs elsewhere in the economy.
It is also addressing earlier under-investment and should improve the supply side of the economy.
Another factor that has a bearing on the outlook is the behaviour of households.
There is an adjustment going on, with many people getting used to lower growth in their real wages.
Many now see this as more than just a temporary development, with wage increases of 2 point something per cent now the norm.
In my view, the underlying drivers of the slower wage growth in Australia are much the same as we are seeing overseas.
At the same time, the household sector is also dealing with higher levels of debt relative to income.
Higher electricity prices are also affecting household budgets.
This all means that consumer spending behaviour is something we continue to watch carefully.
One positive development in this area over recent times has been a pick-up in employment growth, which should boost incomes.
A little while ago, employment growth was on the weak side and the unemployment rate had ticked up.
In contrast, in recent months employment growth has been noticeably stronger and more people have entered the labour force.
Encouragingly, the gain in jobs is evident in all states, including in Western Australia and Queensland, which have been adjusting to lower levels of mining investment.
Our central scenario is for the national unemployment rate to move gradually lower, although it is likely to be some time before we reach what could be considered full employment in Australia.
Another area that we continue to watch closely is the housing market. Conditions continue to vary significantly across the country.
The Melbourne and Sydney markets have been much stronger than elsewhere.
There are some signs of slowing in these two markets, although these signs are not yet definitive.
In some markets, a large increase in the supply of new dwellings is expected over the next year as new buildings are completed.
This increase in supply is expected to have an effect on prices.
In terms of inflation, when we last met I suggested that inflation was at a trough and was expected to increase gradually.
Recent outcomes have been consistent with this.
Both headline and underlying inflation have risen and are currently running a little under 2 per cent.
Inflation is likely to continue to move higher gradually, with the headline measure boosted by higher prices for tobacco, electricity and gas.
A consideration working in the other direction is increased competition in the retail sector, particularly from new entrants.
This is likely to continue for a while yet.
The low wage increases are also contributing to the subdued inflation outcomes.
One factor that is influencing the outlook for both economic growth and inflation is the exchange rate.
The recent appreciation means lower prices for imported goods and it is weighing on the outlook for domestic output and employment.
Further appreciation, all else constant, would cause a slower pick-up in inflation and slower progress in reducing unemployment.
Since August last year, the Reserve Bank Board has held the cash rate steady at 1.5 per cent.
This setting of monetary policy is supporting employment growth and a return of inflation to around its average rate of the past couple of decades.
The Board is seeking to do this in a way that does not add to the medium-term balance-sheet risks facing the economy.
It has been conscious that a balance needs to be struck between the benefits of monetary stimulus and the medium-term risks associated with rising levels of debt relative to our incomes.
As a result, the Board has been prepared to be patient.
The fact that the unemployment rate has been broadly steady has allowed us this patience.
We have preferred a prudent approach, which is most likely to promote both macroeconomic and financial stability consistent with the medium-term inflation target.
The Reserve Bank has continued to work closely with APRA through the Council of Financial Regulators to address financial risks.
Our assessment is that the various supervisory measures – including a focus on lending standards and placing limits on investor and interest-only lending – will work to strengthen household balance sheets over time.
Financial institutions have adjusted to the new requirements and these requirements are contributing to the resilience of the system as a whole.
I would now like to briefly mention three matters related to the Bank's other functions that may be of interest to the Committee.
The first is that the banking industry is in the final stretch of developing the New Payments Platform (NPP).
As we have spoken about previously, this new payments infrastructure will provide Australians with the ability to make real-time, information-rich payments on a 24/7 basis.
It will also make addressing of payments much simpler, using email addresses and mobile phone numbers, rather than BSB and account numbers.
It has been a complex project and the Reserve Bank has played an important role, both in policy terms and as a provider of a key part of the infrastructure.
As the government's bank, the Reserve Bank will also make the new payment capabilities available to its government banking customers.
The new system is expected to commence processing payments later this year.
It is likely to start off small and gradually ramp up next year as financial institutions gain experience with a new way of operating 24/7.
The second matter is that when we met in February, I said that I had commissioned an external review of the efficiency of the Bank's operations.
That review has now been completed. It concluded that our support areas were functioning well and assisted the achievement of the Bank's important public policy objectives.
At the same time, it suggested some areas for us to focus on.
One was the development of a shared internal services centre to drive continuous improvement.
Another was further evolution in our approach to IT as some of our major IT-related projects come to an end.
These projects are in the banking and payments areas and have been undertaken in the national interest.
As these projects wind down we are looking to make sure that the size and structure of our IT function remains appropriate.
More broadly, as some of these projects finish this year, the Bank's overall staff numbers will decline.
Finally, I would like to take this opportunity to announce that we will be releasing the new $10 banknote next month, on 20 September.
Printing of the new notes has been completed at our printing works in outer Melbourne.
The new notes contain the same world-leading security features as the new $5 note that we issued last September, including the clear top-to-bottom window, and the tactile feature so that it can be recognised by vision-impaired members of the community.
Construction has also recently been completed on our new banknote storage and processing facility at Craigieburn, which will soon commence operations.
Thank you. My colleagues and I are here to answer your questions.
The speech was delivered to the House of Representatives Standing Committee on Economics.
For more information click <a href="https://www.rba.gov.au" target="_blank">here</a>.
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j.ballantyne1990-6AQqhLzZaK

RBA on electricity and property price watch: RBA Governor Philip Lowe

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Following last month’s announcement, wealth management group Fat Prophets has released the Product Disclosure Statement (PDS) for the launch of a new fund that seeks to raise up to $220 million.
The Fat Prophets Global Property Fund will raise the sum through an IPO and intends to list on the ASX in mid-September.
It will focus on capital growth plus pay a regular half yearly distribution of 100% of the income the Fund receives on its investments.
The group, which has offices in Sydney, London and Auckland, has been operating for 17 years and managing money for investors for 12 years.
Fat Prophets calls its research and investment style a combination of Deep Value Identification with contrarian investing (going against the trend). 
The new fund will invest in listed Real Estate Investment Trusts (REITs) owning international real estate assets such as the Empire State Building in New York, while being underpinned by a core 30% investment to Australian REITs, according to its website.
The new fund will to invest in a portfolio of 70-90 globally listed real estate equities, typically REITs.  
REITs are listed Trusts which own real estate assets and pay the majority of rental income out as distributions.
According to Fat Prophets, REITs are well known for:
<ul>
<li>Having a different cycle to equities, therefore diversifying risk</li>
<li>Providing consistent and high yield</li>
<li>Being underpinned by tangible assets (the property they own)</li>
<li>Having lower risk and volatility than equities</li>
</ul>
“Our new fund structure will reflect the lower risk nature of REITs – we will not use derivatives, debt or shorting.  Our strategy is simply to invest into listed real estate opportunities where there is clear value,” according to Fat Prophets. 
The fund will pass through all distributions received from its investments to investors with an anticipated gross pre-tax annual yield of 5.2% p.a. 
According to Fat Prophets, diversifying into international property markets makes sense as most are significantly cheaper than Australian real estate.
 
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Fat Prophets to raise $220 million global REIT-focussed fund

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GUEST OBSERVER
Investing in Sydney’s real estate market has been a tough call in recent years, with ever-increasing prices putting the squeeze on returns and meaning that investors need to do their due diligence more than ever before. 
According to CoreLogic, the median apartment price in Sydney has increased by a massive 106.2% since 2008 and is now at $750,000. 
With prices at this level, investors need to be savvy and on the look-out for ways to increase capital gains by identifying upcoming ‘hot spots’. There is huge potential in some pockets of metropolitan Sydney, set to benefit from significant future development and infrastructure projects. 
Sydney’s burgeoning North West in particular should be high on an investor’s radar. 
Nestled within the Hills Shire, Castle Hill is a suburb where future growth has been forecast. Key early indicators of growth lie within the current and future plans for commercial and residential developments within the region. 
In accordance with The Implementation Plan proposed by the New South Wales Government, some 33,000 new homes are to be developed in North West Sydney. Estimates by the Hills Shire Council predict the population in Castle Hill will grow by 49.53% by 2036. 
It is undeniable that Castle Hill is an area set for long-term growth and ticks all the boxes for investors. 
To cater for the growth in population infrastructure developments are also currently underway including the $900 million upgrade of Castle Towers and the $8.3 billion North West Rail link. 
Upon completion the Castle Towers redevelopment is set to generate 2,373 jobs and create an enhanced community hub. The North West Rail link is expected for completion in 2019 and will also increase the efficiency of transport connecting residents from Castle Hill Station to Martin Place Station in around 30 minutes. 
To combat rising property prices in Sydney investors are strongly encouraged to continue to seek out growth areas and identify “hot spots” to realise the future potential, rather than to try to buy into markets that have already hit their peak. 
Residential real estate remains the investment of choice with solid medium and long-term returns and those who are waiting in anticipation for market conditions to change may miss out on solid investment opportunities.
Ian Bennett is Director, Colliers International  
 
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