Joel Robinson

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

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

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

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

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

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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Prince Hotels, a subsidiary of Seibu Holdings will acquire 100 percent of Staywell Hospitality Group in what has been described as Australia’s largest hotel merger and acquisition so far this year. 
The transaction value is approximately $50 million. The deal sees Prince Hotels adding 30 hotels, 12 in Australia, to its portfolio. 
Prince Hotels owns and operates 49 hotels – 42 of them in Japan.
Michael Simpson and Vasso Zographou from Savills Hotels led the transaction team, supported by Sheriden Bacon and Tom Shadbolt.
Vasso Zographou, Director of Hotels for Savills Australia said the opportunity to acquire Staywell which has hotel operations spanning seven countries attracted Prince Hotels Inc. The current phase of Staywell’s evolution had reached a stage where further capital will assist in funding future expansion and growth.
Michael Simpson, Managing Director of Hotels for Savills Australia said the transaction is a great example of Australian entrepreneurialism creating a highly attractive global management platform.
“The acquisition of the platform enables Prince Hotels Inc. to fast track its global growth through immediate presence in a range of international markets” he said.  
The Staywell Hospitality Group operates hotels under the Park Regis and Leisure Inn brands. It also operates a number of properties internationally in Singapore, Indonesia, India, Dubai and Birmingham.
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jonathanchancellor-7SQnKwU6yx

Largest hotel M&A in 2017

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The former Armadale Theatre building in High Street, Armadale has sold for $10 million to a Melbourne investor after a marketing campaign that saw 10 plus offers.
The property, 926-930 High Street, adjoins Armadale train station.
It totals 1,400 sqm space.
It last traded in 2012 for $5.06 million. Previously, the building was occupied by art dealer Sotheby’s. 
CBRE’s Retail Strip Investments team comprising Josh Rutman, Rorey James and Lewis Tong negotiated the sale. The property was listed in June.
Rutman said the international marketing campaign appealed to a mix of local and offshore investors.
They were attracted to the long-term lease, location and confidence in the Mossgreen business.
James said the significant capital appreciation - almost $5 million in less than 5 years - in such a short period of time highlighted the lack of blue chip investment properties available in the Melbourne market.
“This lack of supply coupled with low interest rates has driven yields down to their strongest levels in decades, particularly with the Melbourne strip retail investment market,” he said.
 
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Former Armadale Theatre building sold with Mossgreen tenancy

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Development activity in the retail space is projected to increase in 2018 to more than 400,000 sqm gross lettable area (GLA) from the little more than 300,000 sqm of GLA this year, according to Savills’ Quarter 1 Retail times.
However, activity is expected to drop sharply in 2019 and then rise again the following year.
The most significant activity will be in regional centres in 2018, while large format centres will also surge.
The most stock under construction has Queensland leading the states with 274,206 sqm of activity, followed by Western Australia at 206,052 sqm. Victoria and NSW are way behind.
<a href="https://www.propertyobserver.com.au/images/2017/06/14/RetailAnalysis.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/14/RetailAnalysis.png" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2017/06/14/RetailStock.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/06/14/RetailStock.png" alt="">
 New South Wales and Western Australia will see the maximum refurbishment, data shows, while it will be minimal for Victoria where a majority of retail spaces are new developments.
<a href="https://www.propertyobserver.com.au/images/2017/06/28/DevAct1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/28/DevAct1.png" alt="">
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Development activity in retail likely to surge in 2018: Savills  

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<img src="https://counter.theconversation.edu.au/content/78527/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A new report from Infrastructure Australia, Improving Public Transport: Customer Focused Franchising, and its associated technical report from Pricewaterhouse Coopers (PwC), will have state and federal treasurers salivating. The accompanying press release is clearly intended to set their fiscal juices flowing. It suggests that:
"… subjecting the operation of Australia’s government-operated bus and rail services to competitive tender processes could save Australian taxpayers up to $15.5 billion by 2040…"
This A$15.5 billion is the estimated high operational cost savings scenario, in present value terms (2016 prices; 7% real discount rate). Infrastructure Australia/PwC’s conservative savings estimate is still a very substantial A$11.6 billion.
The magic pudding is competitive tendering of a range of government-operated rail and bus public transport services, as well as Melbourne’s privately run bus services, which are not currently awarded by competitive tendering.
Just how realistic are these savings?
Rail services
Ownership and contracting of public transport services has been a major transport policy focus for 30 years. This issue has had its own two-yearly conference, the Thredbo International Conference Series, for most of that time.
The Thredbo series (named after the location of the first conference) provides a vast array of international material that sheds light on ways to improve the efficiency and effectiveness of public transport under different operating regimes. Australian federal and state government officials rarely attend.
The PwC report presents Australian and international examples of competitive tendering of rail and bus services. It concludes that first-round rail tenders will deliver operational cost savings of 15-20 percent (conservative and high estimates respectively) by the end of the first tender and 25-32 percent by the end of the second. For bus services, the report estimates savings of 15-20 percent from the first tender and 30-35 percent by the end of the third round.
International experience on rail privatisation is sparse, with the sources that PwC cites among the more well known. We are concerned, however, that contrary evidence is given no attention. This raises questions about the objectivity of the analysis.
Andrew Smith and colleagues, in a paper to the Thredbo 6 Conference, reviewed the UK rail experience. They found costs rose after privatisation.
Total passenger train operating costs (excluding infrastructure) per train-kilometre were 14 percent higher in 2006 than at privatisation ten years earlier. Between privatisation and 2008-09, real average salary costs rose much faster than in the economy as a whole.
Pedro Cantos and colleagues reviewed the European experience across 16 countries. Their study concluded that tendering regional passenger services did not have a significant effect on efficiency and productivity.
Melbourne’s early rail franchising experience also left a lot to be desired. One operator handed back its contracts – train, tram and bus – before completion.
As Public Transport Users Association president Tony Morton wrote in May 2017 to The Age:
"Victoria’s train/tram privatisation hasn’t saved taxpayers one cent. A former minister, the late Lynne Kosky, admitted as much ten years ago. We do save money relative to Sydney by not having train guards, a decision that predates privatisation."
Those labour savings were part of large reductions in Melbourne rail staff, from 18,000 to 8,400, during the 1990s. This was done in a corporatisation process that preceded privatisation.
Taking account of the sources cited above and Melbourne’s experience, as well as the sources PwC cites, an assumption that rail privatisation will deliver cost savings of 25-32% by the end of Term 2 tenders is, to say the least, heroic.
We would see even the “conservative” figure of 25% as a high estimate. Melbourne’s experience suggests many of the mooted savings might also be achievable by a thorough corporatisation process. Infrastructure Australia, by simply taking the competitive tendering pathway, does not do justice to the choices available.
Bus services
In a 2007 review of bus privatisation, one of us reported cost reductions from the first round of tenders as follows:
Great Britain 50-55%
Scandinavia most in the range 20-30% but with a range of 5-34%
USA 30-46%
Australia: Perth 22%; Adelaide 38%
New Zealand: 40% ex-public operators; about 5% private operators
Norway 10%. 
The savings for Norway are lower than elsewhere because the local bus industry had been improving its efficiency over some time, mirroring NZ experience. The Norwegian study suggested the threat of competitive tendering was important in driving savings.
One of us recently analysed the tendering of private bus services in Sydney, where private operators run some existing services. The analysis found savings of under 4% on a like-for-like basis.
These various bus findings suggest the cost savings range of 30-35% selected by PwC and reported by Infrastructure Australia might be possible, if an efficient private operator replaces an inefficient public operator. We make no comment on the efficiency of the public bus operators reviewed by PwC.
But such savings will not be achievable in Melbourne, where private operators already provide service. Cost savings of less than 5% are more realistic there.
As we argue below, achieving the latter savings does not rely on competitive tendering. Importantly, all such savings, in rail and bus, are a one-off windfall gain. Our research commonly shows evidence of significant real cost increases after the initial tender round.
What about the alternatives?
Wallis, Bray and Webster, pioneers of the Adelaide privatisation experience, recognised the tendency for costs to increase in subsequent tendering rounds. They proposed that performance-based contracts negotiated with incumbent operators should replace the city’s fourth round of bus tenders.
It is surprising that neither the Infrastructure Australia report nor PwC technical paper mention such contracts as an alternative to competitive tendering.
Our research suggests that negotiated performance-based contracts with efficient operators deliver cost outcomes in line with competitive tendering. And this approach provides two other benefits. Transaction costs are lower and it provides opportunities for closer partnering between purchaser and provider on service planning.
Importantly, given competition law in Australia, if it can be shown that the benefits of a particular contracting regime, such as competitive tendering or negotiated performance-based contracts, outweigh the costs, then the compliance case is strong.
It is surprising that Infrastructure Australia is either not aware of, or more likely has chosen for some reason to ignore, the opportunities afforded by negotiated performance-based contracts, particularly for bus services. This narrowing of the policy options put forward for public consideration risks loss of benefits from important transport reforms.
In short, we believe that Infrastructure Australia, and its advisers PwC, have overestimated the achievable cost savings from competitive tendering of publicly provided rail services. They have also ignored the potential for savings within existing publicly provided public transport services. Competitive tendering of such services will deliver cost savings, but it would be surprising if they were as big as suggested.
For Melbourne bus services, any operating cost savings from competitive tendering are likely to be much less than forecast, most likely under 5%. Such savings will be equally achievable under negotiated performance-based contracts.
Although we recognise that the first round of any competitive tendering will produce a windfall gain, this will be partly at the risk of service quality. Once we consider this, the one-off financial benefits are diluted.
<a href="https://theconversation.com/profiles/john-stanley-115" target="_blank"></a>
<a href="https://theconversation.com/profiles/john-stanley-115" target="_blank">John Stanley </a>is Adjunct Professor, Institute of Transport and Logistics Studies, The Business School, University of Sydney.
<a href="https://theconversation.com/profiles/john-stanley-115" target="_blank"></a>
<a href="https://theconversation.com/profiles/david-hensher-11295" target="_blank">David Hensher </a>is Director, Institute of Transport and Logistics Studies, University of Sydney.
<a href="https://theconversation.com/profiles/john-stanley-115" target="_blank"></a>
Both are authors for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
<a href="https://theconversation.com/profiles/john-stanley-115" target="_blank"> </a>
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jchancellor-FAypfDUnLy

Why touted public transport savings from competitive tendering are too high

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A pretty solid result for housing finance in May with seasonally adjusted total finance rising by 1.3 percent to just over $33 billion.  
Looking at the smoother trend figures, total housing finance has been fairly flat now for about two years, since macroprudential measures first kicked into gear. 
The value of investors loans continues to moderate - with home loans by and large picking up the slack - and this rebalancing has manifested itself recently in rising rents in Sydney and Melbourne.
<a href="https://www.propertyobserver.com.au/images/2017/07/12/A1.jpg" target="_blank">Click to enlarge</a>
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 <div>First homebuyers accounted for 14 per cent of commitments in May, a slight rise. </div>
<div> </div>
<div>But the difference between the average loan size for first homebuyers at $318,000 and non first-homebuyers, which has surged again to $390,100, has blown out to its widest ever margin.</div>
<div> </div>
<div>Even smoothing the figures for the last year shows the dichotomy, and it's making life challenging for first homebuyers. </div>
<div> </div>
<a href="https://www.propertyobserver.com.au/images/2017/07/12/A3.jpg" target="_blank">Click to enlarge</a>
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 <div>Homebuyer commitments are trending higher in the two most populous states, largely offsetting corresponding declines in investor loans.</div>
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 <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/2017/07/12/A2.jpg" alt=""></div>
 <div>New dwelling sales surge</div>
<div> </div>
<div>The number of new dwellings purchase by owner-occupiers has risen strongly to sit at close to the highest ever monthly level, matched only on one occasion during the days of financial crisis stimulus. </div>
<div class="separator"> </div>
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/07/12/A4.jpg" target="_blank">Click to enlarge </a></div>
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 It seems that developers in Queensland have successfully convinced more homebuyers to buy new.
</div>
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<a href="https://www.propertyobserver.com.au/images/2017/07/12/A5.jpg" target="_blank">Click to enlarge</a> <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/2017/07/12/A5.jpg" alt=""></div>
 Lending for the construction of new dwellings was also strong, at its best level since early 2015. 
<div>The wrap</div>
<div> </div>
<div>Overall, a solid if unspectacular result, with the average loan size for non-first homebuyers blazing higher again to sit just a fraction below the 2015 record level of $390,700.</div>
<div> </div>
<div>Investor loans continued to moderate as expected, and there will be a further slowing to come in the following months. </div>
 
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>.
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>.
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Tough times for first homebuyers: Pete Wargent 

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The office market continues to stay without a peak of market occupant, with Melbourne staying put along with three other cities at the approaching the peak position, similar to the previous update in April from valuation firm Herron Todd White.
However, the latest July office clock indicates that the list at the bottom of the market has swelled, with April occupants Adelaide, Darwin, Hobart, Burnie, Cairns, Devonport, Launceston, Townsville and Wide Bay joined by two capital cities, Brisbane and Perth.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWJulyOffice.jpg" target="_blank">Click to enlarge</a>
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Sydney remains a rising market, with an undersupply for office rentals relative to demand, according to the Office Market Indicators. 
Melbourne is a balanced market, though there is an oversupply of available property for rent. 
Brisbane and Perth are grappling with a large oversupply, which probably explains their bottom of market position.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWCapitalCityMarketIndicators.jpg" target="_blank">Click to enlarge</a>
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The April clock had NSW Far North Coast approaching the peak of market, but has dropped two notches since then to the start of recovery position.
<a href="https://www.propertyobserver.com.au/images/2017/07/10/HTWAprilOffice.jpg" target="_blank">Click to enlarge</a> 
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Melbourne, Gold Coast approaching peak of cycle for office market: HTW property clock

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The Rockpool Dining Group has signed a deal to open two fine-dining restaurants at Coronation Property’s 8 Phillip Street project in Sydney’s Parramatta. 
Rockpool’s premium restaurants include Rockpool Bar &amp; Grill, Saké Restaurant &amp; Bar, Rosetta, Spice Temple, Jade Temple and The Cut Bar &amp; Grill. 
The 8 Phillip Street property includes Sydney’s highest rooftop venue, Studio 54, plus offerings from the development’s hotel operator QT Hotels &amp; Resorts, who are planning a bar &amp; grill restaurant and a grand ballroom. 
The development, which will also comprise more than 280 homes over 35 storeys, is expected for completion in 2020. It will incorporate 18 storeys of boutique QT Hotel accommodation.
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“The commitment by Rockpool Dining Group to open restaurants of this calibre further underpins the economic strength Parramatta CBD has to offer,” said Coronation Property managing director, Joseph Nahas. 
“As a local property developer, we know Rockpool Dining Group will be warmly welcomed by food lovers in this part of the world, and we’re excited to be partnering with them at 8 Phillip Street.” 
He said the development would raise the bar for the greater Western Sydney dining scene, and serves to confirm the importance of Parramatta’s ‘Eat Street’ precinct.
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Rockpool Dining Group was formed in November 2016 when Urban Purveyor Group acquired Rockpool Group to create the largest hospitality group in Australia, with over 55 dining and entertainment venues. It generates revenue of more than $350 million, employing around 3,000 employees across four states. 
Rockpool Dining Group’s CEO Thomas Pash said market research and customer data across “our premium brands indicates that Parramatta will welcome and support two, and possibly more, of our top restaurants”. 
 
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Rockpool Dining Group to open two restaurants in Parramatta 

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A leading education provider has bought a Melbourne CBD office floor for $2.01 million, aiming to cash in on the strong inflow of international students which is driving up demand in the Victorian capital, according to Colliers International. 
Expert Education and Visa Services has bought level three at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502399446" target="_blank">313 Flinders Lane</a> following an international expressions-of-interest campaign.
The deal follows the sale of lot 601 at 224 La Trobe Street to Asia Pacific Education Consultants for $1,956,150, and level nine at 221 Queen Street to Australian Pacific College for $3 million, Colliers said in a media release.
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The property agency’s strata office experts Chris Ling and Anthony Kirwan, who brokered the deals, said education and migration groups are eager to capitalise on the influx of international students from Asia and India.
The latest Department of Education and Training statistics show 480,092 international students were recorded in Australia as of March 2017, a 15 per cent rise from March last year.
“Thirty per cent of these students are from China (144,028) and 11 per cent are from India (52,810),” he said.
Melbourne has been a popular destination for students, fuelling demand for education and migration office space, as well as accommodation, added Ling.
“The appetite for these lucrative sectors is growing in line with students’ recognition of Australia as a welcoming country with an impressive choice of education institutions, including The University of Melbourne and RMIT University.”
“Political changes across the US and the UK, including Trump’s election and Brexit, have been a strong deterrent due to racism and immigration restrictions. With the bonus of a low Australian dollar, this demand from international students is likely to continue.”
Ling, Kirwan and Oliver Hay have also just sold levels four and five at 100 Collins Street via expressions of interest.
In fact, there is strong competition for leasing space as well. Leased space to the education sector in Melbourne's CBD in 2016 rose 200 percent on the previous year with increases in land taxes hitting stock levels, putting upward pressure on rents, according to real estate firm Savills.
 
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Education provider snaps up Melbourne CBD office for $2 million

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A Woolworths-anchored Beaudesert Central shopping centre has been snapped up by a fund manager for $16.85 million in an off-market deal through Savills.
Beaudesert is a town 70 kilometres south of Brisbane and Beaudesert Central is the dominant centre servicing the region. 
Following this deal, Melbourne-based MPG Funds Management has now added the centre to its open ended MPG Retail Brands Property Trust, which now operates 11 retail assets across Australia with a combined value of more than $100 million. 
The transaction reflected an initial yield of 6.5%.
It was brokered by Savills’ Peter Tyson and Jon Tyson on behalf of a private vendor. 
“The MPG Retail Brands Property Trust had been seeking a suitable Queensland asset for the portfolio for some time. The Beaudesert Central acquisition is the first Queensland asset in the fund,” Tyson said.
The shopping centre comprises a single-level, open neighbourhood shopping centre developed in 2007 and is anchored by a 3,279 sqm Woolworths supermarket with 12 specialty tenants. 
The centre sits on a 14,230 sqm site fronting the Mount Lindesay Highway, adjacent to the central business precinct.
MPG managing director Brett Gorman said the Beaudesert Central is located in an area with strong forecast growth, so “it is a great fit for our business”. 
“The other emerging economic driver of the region is the recent catalyst development of the long-mooted in-land port road–rail hub of the Bromelton State Development Area which is now under development. This major project is expected to generate significant employment opportunities going forward,” added Tyson.  
Other recent transactions brokered by Savills this year include SCA’s acquisition of both Mudgeeraba Market and Worongary Town Centre on the Gold Coast for a combined $82.1 million, the sale of Park Village in Brisbane’s west for $35.2 million, and the sale of Pittsworth Plaza for almost $10 million. 
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Beaudesert shopping centre sold for $16.85 million through Savills  

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An office/warehouse in Melbourne’s Tullamarine has been leased for $235,000 per annum to Bio Strategy Pty Ltd, a medical and research appliance company.
The property at <a href="https://www.realcommercial.com.au/property-industrial+warehouse-vic-tullamarine-502338346" target="_blank">8-10 Trade Park Drive</a> is located just off Melrose Drive providing direct access to Melbourne’s international Airport.
Bio Strategy has taken a five-year lease with another option of five years.
The 2,385 sqm building comprises a clear span warehouse, a two-level office that features open plan and partitioned spaces, kitchen and other amenities.
The land area is 5,834 sqm.
The deal was brokered by Anthony Carbone of CVA.
 
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