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.

Joel Robinson

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

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

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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Coles is selling a newly developed supermarket on the Gold Coast.
The  3,717sqm supermarket, 10kms east from Surfers Paradise at Pacific Pines is on a 10,150sqm site and has a 15 year net lease with four 10 year options until 2072.
It is listed for sale through Peter Tyson, Steven Lerche and Pat De Maria of Savills Australia.
Peter Tyson said long term net leases such as this are extremely rare in the marketplace, which coupled with the strategic location within a strong population growth corridor, make the asset very desirable for risk-averse investors.
This is a gilt-edged property,” he said.
“Freestanding Coles Supermarkets are one of the most highly sought after asset classes in the Australian commercial property market.
"The offering is enhanced by a very attractive net lease structure whereby Coles is responsible for all operating expenses – a rare attribute in the Queensland market."
Pat De Maria said recent transactions of freestanding supermarkets over the last 12 months have achieved yields ranging between 3.77 percent and 5.27 percent, with the average yield around 4.5 percent.
“It was also interesting to note, Savills transacted the Coles’ developed and anchored Coburg North Village Shopping Centre featuring 15 specialty shops for $37.98 million at a record yield of 4.9 percent,” he said.
Auction of the Coles Supermarket at Pacific Pines is set for Thursday 20 July 2017 12pm at Sheraton Grand Mirage, Gold Coast. 
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jonathanchancellor-7SQnKwU6yx

Coles Supermarket Gold Coast set for auction

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GUEST OBSERVER
After showing some tentative signs of lifting, non-mining business investment has dropped back again as a share of GDP.
The capex survey and non-residential approvals data signal only a modest lift non-mining investment this year.
However there are some more positive signs for business investment.
These include high levels of business conditions and confidence, rising capacity utilisation and a lift in company profits.
The strong pipeline of infrastructure spending and the revival in the manufacturing sector are also supportive of stronger investment. 
Non-mining business investment remains the missing ingredient in the successful transition from mining to non-mining led growth. A pick up in non-mining business investment would be a welcome driver of growth in the short-term. It also boosts productivity in the medium to long-term, which is essential for maintaining growth in the face of an ageing population and a potentially slower population growth rate. 
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.07.23%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.07.23%20PM.png" alt="">
Mining sector investment seems to have stabilised for now. However non-mining business investment is yet to show a meaningful lift. In fact, as a share of GDP, 8 non-mining business investment has fallen back close to the recent lows in late 2013. This is despite record low interest rates and a relatively stable, and lower, Australian dollar.
In the past we have discussed some of the reasons for weak non- mining business investment (see here). These included unrealistic hurdle rates and slower growth in consumer spending which has dampened business’ expectations of future demand. Many of these factors are still relevant. 
In this note, we take a fresh look at what the forward indicators of business investment are telling us. We find that the “hard” data such as non-residential approvals and capex spending intentions point to only a very modest increase in business investment in the year ahead. However the background conditions for business investment have improved. In particular there has been a strong lift in business conditions and confidence and a lift in capacity utilisation. Other positives for business investment include the revival in the manufacturing sector.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.08.38%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.08.38%20PM.png" alt="">
And also 208 the big lift in public infrastructure spending underway. The note concludes with our outlook for non-mining business investment in the years ahead. 
Non-residential building approvals: Non-residential building is one component of business investment. The approvals data tells us the amount of building activity that is likely to enter the pipeline. This data suggests that there should be some pick-up in non-residential building activity this year due to a large spike in approvals in September 2016.
The lift in approvals was in the retail, entertainment, recreation &amp; accommodation, and office sectors. However since the spike, approvals have been running broadly in line with their average of recent years. So we need to see a further pick up in the approvals data in order to see this component of business investment lift meaningfully.
Capex survey: The ABS capital expenditure survey includes business’ estimates of new capital expenditure. And the results are not encouraging. Early estimates for spending plans can vary significantly from actual spending. However at this stage, based on the historical relationship between estimates and actual spending, it looks as if non-mining capex spending for the 2017/18 financial year will be similar to 2016/17 (see here). 
However it is possible that these estimates could be revised sharply upwards (or downwards) if the economic landscape changes. Another caveat is that the capex survey also excludes some sectors including health, education and agriculture. Investment in health and education tends to be structural rather than cyclical and demographic factors suggest that it should remain firm.
Business conditions and confidence: Survey measures of business conditions and confidence have generally been on an upward trend for several years now. Business conditions are at their highest level since the GFC. Business confidence is the highest since 2010. Both are well above long run averages
Business conditions are buoyant for most industries, with the exception of retail and more recently construction. Conditions are have improved in most States. The exception is the mining State of WA where conditions remain very weak.  
Capacity utilisation: Capacity utilisation is rising. However it is important to consider in which industries it is rising as some businesses are more capital intensive than others. Research from the RBA finds that goods-related industries plus transport tend to be more capital intensive than services-related industries. So high levels of capital utilisation in the goods plus transport industries are more likely to result in additions to capital stock. Whereas for services industries, high capacity utilisation more often prompts additional labour hire.
Capacity utilisation has trended higher in recent years for these more capital intensive industries and is now around its long run average. This has historically been consistent with a higher level of non-mining business investment than is the case now.
The capital stock has also aged which provides further impetus for new investment. However while business hurdle rates are still high we may need to see capacity utilisation rise to high levels before businesses are willing to investment in more capital. 
Return on investment/Tobin’s Q: In addition to demand conditions, the expected rate of return on investment is also an important determinant for business investment. On that score there appears to be plenty of scope to increase non-mining business investment.
The rate of return on the non-mining capital stock is running around 12% and well above most business borrowing rates. However unrealistic hurdle rates are preventing businesses from undertaking some profitable investments.
Also, according to Tobin’s Q theory of investment, growth in non-mining business investment should also be higher than current rates. Tobin’s Q measures the market value of capital relative to its book value. A ratio greater than one suggests that companies should invest more in capital because it is valued more than its replacement cost. Tobin’s Q is hard to measure in practice. But our proxy shows the Q ratio has been on an upward trend since early 2009 and is now well above one.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.09.29%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.09.29%20PM.png" alt="">
Revival in the manufacturing sector: There is somewhat of a revival going on in the manufacturing sector (see here). Employment in manufacturing has picked up. Exports have risen too and are not too far below their pre-GFC levels.
A lower and relatively stable Australian dollar in recent years has helped. RBA research shows that a 10% depreciation in the real exchange rate will boost manufacturing exports by more than 15% three years later. The lift in infrastructure spending has also contributed, lifting demand for building materials, metals and transport equipment.
These stronger conditions have seen manufacturing capital expenditure lift 12% over the two quarters to Q1 2017. Although according to the capex survey estimates of future capex spending are still subdued. They imply roughly a 5% fall in capex spending for 2017/18 compared to 2016/17. But given the lift in conditions in the manufacturing sector we may see an upgrade to intentions as the year goes on. 
Positive rural conditions are also pulling out more agricultural capital expenditure. Farm capex spending has picked up with annual growth running at around 13%.
Consumer spending: Current household spending patterns and the outlook for future spending are also important factors to consider when thinking about future business investment. Firms in the RBA’s liaison program have indicated that they are reluctant to commit to a substantial increase in investment until they see a sustained pick up in sales.
Consumer spending growth has been slower on average than before the financial crisis. However spending growth has run ahead of income growth as households have cut their savings ratio. Household debt levels are elevated which means household may be reluctant to cut savings further. We think that we will need to see further improvement in the labour market, particularly a fall in the unemployment and underemployment rates, or a lift in wages growth, to lift growth in spending.
Public infrastructure spending: Increased public infrastructure spending can “crowd in” private business investment. For example, new transport infrastructure can make previously undesirable land, more desirable. This attracts new spending on dwelling construction, which in turn attracts businesses to set up in the these new areas. Private sector businesses also provide inputs into the building of infrastructure so stronger demand can enable these businesses to expand.
Australia is about to go through an infrastructure boom. The State governments have ramped up infrastructure spending. In particular there are many large transport infrastructure projects underway in NSW and Victoria. The Federal government is also planning on a large infrastructure spend. The latest Budget includes $75 billion in transport spending over the next ten years.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.10.29%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.10.29%20PM.png" alt="">
Studies by the IMF find that an increase in public infrastructure spending in advanced economies increases private business investment in both the short and long term.1 They find the effects are largest when spending occurs in periods of economic slack and easy monetary policy, when it is invested efficiently, that is where public spending is allocated to projects with high rates of return, and when spending in financed by debt rather than tax increases.
You could argue that Australia meets these conditions. Firstly, interest rates are at record lows and are likely to stay there for some time yet. There is also a degree of economic slack in the economy.
Over the year to Q1 the economy grew at just 1.7%, below our estimates of potential growth of around 23⁄4%. While we expect growth to lift to above potential in 2018, a decent share is coming from net exports due to the ramp up in commodity exports following the earlier surge in mining investment. Gross national expenditure, which excludes net exports, doesn’t look quite as strong.
Secondly, in the 2017/18 Budget the Federal government has committed to provide funding for four of the seven projects considered to be “high priority” by Infrastructure Australia. A further three projects on the “priority” list will also receive some funding. And thirdly, these projects will be funded by debt with the Budget not expected to return to surplus until 2020/21.
Sources of funding: Business lending remains soft. Commercial lending growth is in negative territory. Business credit growth is showing a similar lacklustre picture, with soft monthly growth rates since early 2016. Over the year business credit is up just 3.1%. Weak lending is consistent with lacklustre investment.
Another way companies can fund new capital expenditure is by using profits. After five years of lacklustre growth, non-mining profits have begun to lift and are around 17% higher over the year to the March quarter. The lift in profits has been broad based with seven out of nine non-mining categories posting an increase in profits over the year. Mining sector profits have also surged which has positive flow-on effects for industries that service the mining sector.
So what’s the outlook for non-mining business investment?
At this stage we are expecting only a very modest lift in non-mining business investment over the remainder of 2017. This is consistent with the capex survey of business’ intentions and relatively subdued non-residential approvals data. Weak business lending data also points to subdued investment ahead.
However the background conditions for investment are improving. Business conditions and confidence are high and business balance sheets have improved due to stronger profits. Capacity utilisation has lifted and the capital stock has aged.
Other positives for business investment are improving conditions in the manufacturing sector. The strong pipeline of infrastructure spending may also work to “crowd in” business investment. One significant hand brake on stronger capex spending is the fact that business hurdle rates are high given the low interest rate/low yield environment we are in. As a result we have a moderate pick up in non-mining investment in 2018 in our forecasts. 
Kristina Clifton is economist and financial market analyst for CBA and can be contacted <a href="https://www.commbank.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

The outlook for non-mining business investment

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The Building Designers Association of Victoria (BDAV) is calling on the public to vote for their favourite building design in the People’s Choice Award category at the 22nd BDAV Building Design Awards.
The People’s Choice Award covers Victoria’s best residential, interior, sustainable, heritage conservation and non-residential design projects across commercial, industrial, hospitality and public buildings.
BDAV President Lindsay Douglas said the awards recognise the ever-growing talent of building design professionals and their importance to the building industry, as well as their local communities.
“We are continually blown away by the high standard of entries we receive across all our award categories. Our building design community use innovation and creativity to produce cutting-edge design spaces while keeping sustainability front of mind."
Last year’s winner of the People’s Choice Award was luxury home The Kangaroo Ground Pavilion, designed by S L Building Designs. 
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.24.24%20PM.png" alt="">
Some contenders for the 2017 Peoples’ Choice Award include the Alphington Townhouses, in the category for Multi Residential Design (above) and The Cheese House (below) for Best Environmentally Sustainable Alteration &amp; Additions (Residential).
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.25.17%20PM.png" alt="">
Moama Anglican Grammar School (below) is entered in the Non-Residential Design - Alterations/Additions category.
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.26.48%20PM.png" alt="">
Voting for the People’s Choice Award is now <a href="https://www.bdav.org.au" target="_blank">open here</a> and closes midnight Sunday 23 July.
Winners will be announced at the BDAV Building Design Awards dinner on Saturday 29 July at the National Gallery of Victoria.
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Vote for your favourite building in Victoria

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<img src="https://counter.theconversation.edu.au/content/78258/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
In 2007 US creative cities “guru” Richard Florida was flown up to Noosa to tell the local city council how they, too, could become a creative city.
Noosa was one of a long line of cities across the globe queuing up to pay big bucks to the US-based academic-entrepreneur. “Being creative” had become an almost universal aspiration. Who would not want to be a creative city?
And so Creative [insert name of city here] signs sprang up in the most unlikely places, along with stock shots of creative young things hunched over laptops in cafes.
Ten years later, different gurus are being flown around and the signs have been replaced by Smart [insert name of city here]. The stock shots are much the same, but now the young things are being innovative, disruptive and above all “smart”. That’s the trouble with fast policy: here today, gone tomorrow.
Below the surface more tectonic shifts can be felt. In its first outing in the mid-1990s the “creative city”, associated with thinkers such as Charles Landry, was an energising vision of a new role for cultural creativity in our cities.
Now expanded in democratic fashion beyond the world of “high art” to embrace popular, everyday creativity, culture would be a key resource for the 21st-century city.
Culture could re-activate the decayed industrial zones of the inner city, breathing new life into the dead infrastructures of factories and power stations, dockyards and tram depots, schools, barracks and banks. Culture could renew stale urban identities, catalyse new aspirations and stamp a different global brand on long-dormant cities.
And with the creative industries – culture plus all things design and digital – all that was needed were some creative people and a bit of entrepreneurial flair. Then we would have one of the industries of the future.
Creativity broke cities away from the old bureaucratic top-down planning silos of the industrial city and let them approach the future holistically. Culture would be what cities do best, earning a living and enjoying it at the same time.
By the time Florida had left Noosa the discontent was growing. Big investments in photogenic CBD developments seemed more intended for the creative class than local citizens, generating massive real estate profits while the suburbs languished unloved.
Creative industries turned out not to be so inclusive after all. They failed to soak up all those unemployed dirty industry workers and were reliant on educated workers willing to work their way up on low pay and high debt.
The turn of the smart city
Since the global financial crisis the energising vision has been around social justice, citizenship and the right to the city, with a return of community and activist-focused arts activities. Creatives are now less Californian start-ups and more counter-cultural “post-capitalists”.
Enter the Smart City, creativity without all those messy cultural bits. The tech start-ups were just as cool, the fab labs and hacker spaces just as disruptive, but now slotted onto a very different agenda.
This too promised a re-invention of the city, not now a cultural re-imagining but a complete re-tooling of the social and governmental infrastructure of the city. Courtesy of some very big global tech companies, a new digital infrastructure could be rolled out, applying sensors, data-capture devices and large-scale computing power to urban life.
Smart cities are data cities, promising efficient management of transport and utilities, security, and customised commerce. If the early Creative City embraced the messiness of city life, viewing it not as chaos but creative fecundity, the Smart City give us a clean utopian picture of the perfectly transparent city.
It’s messy on the surface, but with a big data back-room providing bespoke information for almost any aspect of urban living your care to ask for. What’s not to like?
A corporate taming of creativity
That the brains of the Smart City – as envisioned by its corporate promoters – are increasingly embedded in its walls rather than its inhabitants reveals much about the trajectory of the digital economy so closely tied to Florida’s conception of the Creative City and its industries.
Internet scholar Jonathan Zittrain has described the rise of “app” culture as a betrayal of the creative potential unleashed by the mainstreaming of the internet. If the open internet was messy and chaotic, Zittrain argues that it was correspondingly “generative”, promoting experimentation and creativity.
 
The app increasingly represents the corporate-driven pacification of the internet. AAP
By contrast, the “app” represents the pacification and domestication of the internet: its transformation from a productive medium to an infrastructure for consumption and marketing. Apps sort our music and photos for us, tell us where to eat, how to get there, and what to watch afterwards. The price of the newfound convenience that renders smart phones so addictive is a shift in the balance of control away from the end user.
For Zittrain, the “applified” world is, “one of sterile appliances tethered to a network of control” – which is not a bad description of the corporate blueprint for the Smart City.
As urbanist Adam Greenfield has observed, the corporate world has taken the lead in both envisioning and promoting its version of the “informated” city. It looks suspiciously like the commercial internet projected out into physical space.
The promise is one of efficiency, convenience and security: smart streets that adjust traffic flow in real time, walls that change images to suit our tastes (which have become indistinguishable from market preferences), even floors that cushion us when we fall.
For all the talk of disruption, the paradoxical promise of the smart city is one of data-driven efficiency and predictability. The promotional materials feature the same smart young things, freed up from the impositions of daily life (traffic, shopping, routine decision-making, even driving), to do … what?
Whose city is it?
There are surely possibilities here, but the version of smart city as automated city looks inhuman. It promises to serve people by rendering them increasingly efficient, perhaps to the point of their own redundancy.
To subject the future of the city to the corporate imaginary is to concede too much to the galloping privatisation of our cultural and informational infrastructure.
What if the right to the city were also a right to participate in shaping its information infrastructures and their implementation? Can we envision an alternative to centralised corporate control of the city’s data? And how might public priorities be redefined in ways that distinguish them from the private imperatives of the ruling tech giants?
These are the guiding questions for our June 15 symposium in Melbourne, which explores the possibility of another kind of urban culture beyond the tightly controlled formats of the Smart City/Creative City.
<a href="https://theconversation.com/profiles/justin-oconnor-11847" target="_blank"></a>
<a href="https://theconversation.com/profiles/justin-oconnor-11847" target="_blank">Justin O'Connor </a>is professor of Communications and Cultural Economy, Monash University.
<a href="https://theconversation.com/profiles/justin-oconnor-11847" target="_blank"></a>
<a href="https://theconversation.com/profiles/mark-andrejevic-21617" target="_blank">Mark Andrejevic </a>Guest Lecturer, Monash University; Professor and Chair, Department of Media Studies, Pomona College.
<a href="https://theconversation.com/profiles/justin-oconnor-11847" target="_blank"></a>
Both are authors for The Conversation.
<a href="https://theconversation.com/profiles/justin-oconnor-11847" target="_blank"> </a>
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Creative city, smart city... whose city is it?

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A Box Hill site with the potential for high-rise development is on the market with price expectations around $10 million.
The 1305 square metre site at, 15-17 Prospect Street, features a two level office building with 31 metres frontage to Prospect Street.
It is currently leased to Cummins South Pacific, with the lease expiring May 2018 at a net annual rental of $1,000,840.
It is on the market through Savills’ Clinton Baxter and Nick Peden, and Colliers’ Peter Bremner and David Minton.
Peter Bremner said there was no doubt that the outstanding level of surrounding retail and lifestyle amenity would ensure that any redevelopment of the site would be highly sought after by end users.
"Box Hill is very well serviced by retail, educational and medical facilities, parks and gardens, public transport and access to Melbourne’ s arterial road network," he said.
"Should the purchaser proceed with a redevelopment of the property there is sure to be a ready market for the end product, alternatively an owner-occupier would be well satisfied with both the existing premises and the location."
Nick Peden said Box Hill is forecast to require 5242 new dwellings to accommodate its rapidly growing population by 2036, while commercial property demand remains strong with low vacancy rates in both office and retail sectors.
"The withdrawal of numerous commercial spaces for residential development has underpinned the strong and growing demand for commercial property,’’ he said.
The property will be sold by expressions of interest closing Wednesday, July 12 at 2pm.
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Prime Box Hill site to fetch $10 million

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Investa Commercial Property Fund (ICPF) recently unveiled a major foyer upgrade of its A Grade, 16-level office building at 259 Queen Street in Brisbane’s CBD at a well-attended event.
Designed by Cox Architecture, the upgraded foyer integrates the building sympathetically with the heritage façade of the adjacent General Post Office (GPO) via a glass canopy, creating a modern, light-filled entrance, said a media release. 
The foyer to the flagship building in Brisbane’s Golden Triangle now also includes direct access to a 70 seat café, a concierge and lifts.
NAB is set to relocate 650 employees to the building in August 2017. It has a 10-year lease for more than 8,000 sqm of space over two levels.
The building at 259 Queen Street comprises more than 24,780 sqm of net lettable area. It has a 5-Star NABERS Energy rating. 
Investa also plans to improve 259 Queen Street’s end-of-trip facilities for better tenant health and well-being.
The proposed new facilities will include 150 bicycle spaces, 200 lockers and upgraded change rooms. Value-add services include a towel service, bike servicing, drying room and dry cleaning.
ICPF fund manager Jason Leong said the integration with the adjacent GPO provides “vital connectivity to the retail and food outlets of the Golden Triangle and Eagle Street Pier”. 
Guests included Investa’s CEO Jonathan Callaghan, ICPF fund manager Jason Leong and other key stakeholders, including incoming anchor tenant NAB and other Federal and State Government tenants. 
<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/2017/06/19/Investa259Execs.jpg" alt="">
Among the attendees were (from left to right above) Jason Leong, ICPF Fund Manager and Group Executive, Investa, John Blackburn, Rubicon Red, Christine O’Hara, general manager, Brisbane CBD Portfolio, Investa, Travis Green, general manager, Brisbane IOF Portfolio, Investa, Jonathan Callaghan, CEO, Investa  
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Investa unveils major foyer makeover at its Brisbane Queen Street building

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Changes to infrastructure charges by the NSW government are expected to be a hurdle for developers planning new projects because of the uncapped nature of the charges. 
The NSW government's changes to Section 94 of the Environmental Planning and Assessment Act, which allows local councils to levy contributions for public amenities and services because of new development, will now be uncapped.
This would mean that feasibility studies of new projects become too uncertain.
At a meeting in Sydney with Minister for Planning and Housing, Anthony Roberts, Urban Development Institute of Australia's NSW chief executive Steve Mann said the uncapped component had already sent reverberations through the development industry, reported The Australian Financial Review.
Mann said its members, including some major developers, had said they were not likely to make any acquisitions until there was more clarity on the infrastructure charges.
"There is now a serious concern about prospective acquisitions," Mann said.
"The uncapping of Section 94 contributions and making more areas liable to pay state infrastructure contributions without any transparency as to what this cost will be, will directly impact on investment confidence," he said.
He drew similarities with the 2003-04 boom when excessive taxation, of up to 50 percent of the value of a home, led to a supply drought.
The way infrastructure charges will be devised is currently being reviewed by the Independent Pricing and Regulatory Tribunal, the AFR reported.
Mann said he suspected this review could take as long as another 12 months, hurting the delivery of affordable housing in the state.
The NSW government will allow councils to borrow more money for infrastructure spending at a reduced interest rate. It will support up to $500 million in additional borrowing by councils by halving the cost of borrowing for eligible projects.
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Uncapped infrastructure charges through Section 94 changes could halt property purchases: UDIA

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The Sydney CBD office market has a strong supply pipeline lined up with 470,000 sqm expected to be added by 2022, which will also bring a churn in office ownership levels, according to new analysis by commercial real estate firm Colliers.
The new supply in the next 5 years will push up some landlords up the ranks. 
Lendlease and Investa are expected to surpass Dexus, becoming the first and second largest office owners within the market, respectively, says CBRE report author Kristina Mastrullo.
Lendlease’s Darling Square is due for completion late this year and Circular Quay Tower is slated for completion in 2021, while Investa’s 151 Clarence Street (Barrack Place) is due late 2018 with 60 Martin Place shortly after in the first half of 2019. 
Taking into account withdrawals, such as 39 Martin Place which will make way for the Martin Place Metro Station Precinct, Dexus will slip to no. 3 position among largest office owners.
<a href="https://www.propertyobserver.com.au/images/2017/06/14/SydneyCBDOwnership.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/14/SydneyCBDOwnership.jpg" alt="">
 
So, where will the supply come in?
 
Sydney CBD’s Core precinct will take on 51 percent of total office development activity over the next 5 years, says the analysis. 
 
“The Core will remain the most sought after precinct once 60 Martin Place, Wynyard Place, Circular Quay Tower and Quay Quarter Sydney are completed, driving future rental growth,” says Mastrullo in the note.
<a href="https://www.propertyobserver.com.au/images/2017/06/14/SydCBDSupplyPipeline.png" target="_blank">Click to enlarge</a>
 
 <img src="https://www.urban.com.au/images/2017/06/14/SydCBDSupplyPipeline.png" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2017/06/14/SydCBDSupplyPipeline2.png" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2017/06/14/SydCBDSupplyPipeline2.png" alt="">
 
Over the last twelve months, the Core precinct has outperformed all others with an annual increase in net effective rents of 33.6 percent. The Western Corridor is due for 24 percent of overall development activity as 10 Shelley Street is due to come online along with Darling Square and Barrack Place. 
 
After combining full and partial refurbishments with new development supply, Brookfield is responsible for the largest portion of total-square-metres-under-development over the next 5 years within the Sydney CBD at 27 percent. Brookfield’s total development activity equals over 110,000 sqm which includes the full refurbishment of 10 Shelley Street and developments Darling Park 4 and Wynyard Place. 
 
AMP, Lendlease and Investa are closely ranked however Lendlease is only set to contribute new-development supply, whereas refurbishments (full and partial) constitute a sizeable portion of AMP’s and Investa’s overall construction activity over the next 5 years.
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prateek24-ezbwHMbNAk

Lendlease, Investa likely to surpass Dexus as largest Sydney CBD office owners: Colliers

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A local developer has bought a development site for $9 million in Melbourne’s leafy inner eastern suburb of Hawthorn with plans for a mixed use/apartment and retail project.
The <a href="https://www.realestate.com.au/property-residential+land-vic-hawthorn-201789426" target="_blank">2-4 Roche Street</a> property was sold through Savills after an expressions of interest campaign.
Selling agent Clinton Baxter, who brokered the deal with Nick Peden and Jesse Radisich, said the sold for close to $7500 a square metre, well above expectations.
Baxter said the competition for the property reflected the strong competition for a development opportunity in one of Melbourne’s highly regarded residential pockets.
“The sale is a demonstration of the voracious appetite of developers seeking to secure sites suitable for boutique apartment projects in the leafy inner eastern suburbs,’’ Baxter said.
The property was sold subject to monthly leases to two tenants, who occupy the two double storey buildings, at a current annual rental of $105,000, with vacant possession available on 60 days notice. 
The 1,209 sqm corner site is Zoned Commercial 1. It close to public transport and retail places.
Peden said plans for a proposed redevelopment of the property included 54 apartments and ground floor retail.
The vendor was a Melbourne-based investor. 
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Developer pays $9 million for development site in Melbourne's Hawthorn

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Developer couple Lance Chu and Chenghan Tan, who run SC Land, have sold off their South Yarra, Melbourne, headquarters for $9.5 million.
It was on a tight 4 per cent yield.
The <a href="https://www.realcommercial.com.au/property-offices-vic-south+yarra-502399498" target="_blank">36-40 Toorak Road</a> property, which the couple bought in 2007 for $3.7 million, was redeveloped, according to The Australian Financial Review.
It has a two-storey office on top while leasing out the two ground- floor retail spaces.
The office premises, designed by architects BURO, won the Master Builders Association (Victoria) 2010 Excellence in Construction Award for commercial buildings under $5 million.
The 800 sqm building, which retains its original Victorian heritage facade, sits on a 432 sqm land parcel.
It earns an annual rental income of $383,000.
Jeremy Gruzewski and Ben Baines of Colliers International brokered the deal.
Hong Kong-born Chu and his Singapore-born wife founded SC Land in 2000. They have worked on several high-end apartment and townhouse developments in Melbourne with one of their most recent on the Esplanade in Brighton.
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