<p><a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.</p>

<p>Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.</p>

<p>The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365685]</p>

<p>"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.</p>

<p>Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.</p>

<p>"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368869]</p>

<p>That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.</p>

<p>Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.</p>

<p>Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365689]</p>

<p>Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.</p>

<p>They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.</p>

<p>The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.</p>

<p>"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368872]</p>

<p>The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.</p>

<p>With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.</p>

<p>A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.</p>

<p>Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.</p>

<p>[smartcode_project_cta:default project_id=509]</p>


Joel Robinson

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

<p>By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.</p>

<p>Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.</p>

<p>“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.</p>

<p>That experience has translated into a collection of two, three, four and five-bedroom residences and five-bedroom penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.</p>

<p>[smartcode_project:default project_id=140491 project_image_fid=284542]</p>

<p>S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.</p>

<p>“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.</p>

<p>The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;</p>

<p>“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.</p>

<p>“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”</p>

<p>[smartcode_project:default project_id=140491 project_image_fid=284543]</p>

<p>Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.</p>

<p>The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.</p>

<p>Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.</p>

<p>Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.</p>

<p>Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.</p>

<p>[smartcode_project:default project_id=140491 project_image_fid=284559]</p>

<p>Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.</p>

<p>“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.</p>

<p>The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.</p>

<p>A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.</p>

<p>S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.</p>

<p>“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.</p>

<p>[smartcode_project:default project_id=140491 project_image_fid=284555]</p>

<p><a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;</p>

<p>According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.</p>

<p>There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.</p>

<p>Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.</p>

<p>Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.</p>

<p>“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.</p>

<p>[smartcode_project_cta:default project_id=140491]</p>


How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

<p>Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.</p>

<p>Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.</p>

<p>"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.</p>

<p>"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."</p>

<p>[smartcode_project:default project_id=136992 project_image_fid=293151]</p>

<p>The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.</p>

<p>"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.</p>

<p>"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."</p>

<p>The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.</p>

<p>The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.</p>

<p>[smartcode_project:default project_id=136992 project_image_fid=293149]</p>

<p>The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.</p>

<p>That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.</p>

<p>"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.</p>

<p>"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.</p>

<p>"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."</p>

<p>Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.</p>

<p>One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.</p>

<p>[smartcode_project:default project_id=136992 project_image_fid=293155]</p>

<p>With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.</p>

<p>Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.</p>

<p>The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.</p>

<p>Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.</p>

<p>[smartcode_project:default project_id=136992 project_image_fid=293152]</p>

<p>For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.</p>

<p>"We were equally interested in the long-term future of Hope Island," he said.</p>

<p>"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."</p>

<p>Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.</p>

<p>Building 2 is under construction, with completion scheduled for 2027.</p>

<p>[smartcode_project_cta:default project_id=136992]</p>


Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

<p>Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.</p>

<p>The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.</p>

<p>EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.</p>

<p><img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" /></p>

<p>Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.</p>

<p>The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.</p>

<p>The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.</p>

<p>Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.</p>

<p>A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.</p>

<p>SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.</p>

<p>The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.</p>

<p>A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.</p>

<p>The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.</p>

<p>Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.</p>

<p>SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.</p>

<p>"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.</p>

<p>The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.</p>

<p><img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" /></p>

<p>The site emerged following the subdivision of the former Roche campus into eastern and western parcels.</p>

<p>EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.</p>

<p>The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.</p>

<p>It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.</p>

<p>EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.</p>

<p>The current residential site represents the eastern portion of that original holding.</p>

<p>EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.</p>

<p>EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.</p>

<p>The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.</p>


First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

<p><a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.</p>

<p>The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.</p>

<p>Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.</p>

<p>The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.</p>

<p>The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments</p>

<p><img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" /></p>

<p>Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.</p>

<p>But one of the biggest components of the proposal is what sits between the buildings.</p>

<p>Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.</p>

<p>The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.</p>

<p>Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.</p>

<p>SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.</p>

<p>The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.</p>

<p>The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.</p>

<p>Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.</p>

<p><img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" /></p>

<p>SP Setia plans to deliver the development across three stages.</p>

<p>Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.</p>

<p>If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


SP Setia plans three-tower finale for Carlton’s former CUB precinct

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

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<p>Despite periodic warnings from the Reserve Bank about crazy prices, the Sydney market place has just had a year that no-one foresaw in terms of continued strong price growth.</p>
<p>But Brian White, chairman of real estate agency Ray White, says that homeowners’ and buyers’ sensitivity to interest rates remained "acute."</p>
<p>Any talk of rising interest rates dampens buyer enthusiasm across the Sydney property market.</p>
<p>And when rates do actually rise, the doubts set in further as buyers pause putting their hand too deep into their pockets. And often not buying at all.</p>
<p>It was no surprise that the tail end of 2016's auctions has seen a seasonal turn in the pitch as the last minute boost in numbers hits the market.</p>
<p>Clearance rates that were in the 80s, now into the mid-70 as many buyers turned off - perhaps to come back next year.</p>
<p>The recent auction market fatique also had much to do with interest rate headlines.</p>
<p>Ever since the Trump triumph in the United State in early November, its been subject to much speculation.</p>
<p>And the past fortnight has seen the big banks make early adjustments, to fixed rates more so than the more popular variable home loans. </p>
<p>The Commonwealth Bank, the country’s biggest lender lifted the rate of its popular 3-year fixed rate by 0.20 percentage points to 4.24 percent.</p>
<p>It also lifted its longer-term 5-year fixed rate by 0.60 percentage points to 4.74 percent.</p>
<p>CBA was following Westpac with a RateCity.com.au analysis showing a further 20 lenders had lifted rates 268 fixed products since November 1.  </p>
<p>Peter Arnold, data insights director at RateCity.com.au said fixed rates are based on market expectations of future rates and "are the best indicator that we’ve got that a variable rate hike on the way.".</p>
<p>“Previously, banks were betting on lower rates in the future but we’re seeing those expectations change by the day."</p>
<div id="x_x_story-description">
<p>All the recent talk and then movements will dictate the direction of house price growth in 2017, having already started to dampened the market.</p>
<p>There are two substantive price forecasts out for 2017. </p>
<p>Housing price growth of between 5 and 6 percent is expected for 2017 for detached houses is tipped by Paul Bloxham, the HSBC chief economist.</p>
<p>He expects Sydney apartment prices to track at a slower pace than detached houses at between 0 and 4 percent.</p>
<p>Bloxham noted what he called a substantial 66 percent ramp-up in housing prices in Sydney since mid-2012.</p>
<p>He added some of the price growth was at a "worrisome pace" of Sydney price growth, particularly in 2014 and 2015.</p>
<p>But following a tightening in prudential settings starting in late 2014, housing price growth had slowd from double-digit growth last year to high single-digit rates this year.</p>
<p>The other forecast came from SQM's Louis Christopher who has more often got it right than wrong.</p>
<p>He suggests the Reserve Bank of Australia will need the Australian Prudential Regulation Authority to reign in home lending once again, or lift interest rates, or do both to avert a dangerous housing bubble.</p>
<p>Christopher suggested a scenario house prices in Sydney could rise between 11 and 16 percent given a combination of factors including loose monetary policy, strong population growth and booming local economies.</p>
<p>The early November forecast assumed a stable interest rate environment, a stable exchange rate and no further home lending restrictions by APRA.</p>
<p>A rate rise by the RBA of 25bps would curtail the rising Sydney market to beween 8 and 13 percent for the year.</p>
<p><em>The article first appeared in the Saturday Telegraph</em></p>
</div>
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jchancellor-FAypfDUnLy

What will happen to Sydney prices in 2017?

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<p>Higher priced properties in Sydney and Melbourne is not the only obstacle stopping people from entering these markets.</p>
<div>
<p>Varying from state to state, another factor contributing to the high entry cost to housing is Stamp Duty, particularly in Australia’s largest two capital cities.</p>
<p>Levied by each state and territory and payable by the receiver when a property is transferred, stamp duty varies remarkably across the states and territories based on the price of the property, the type of buyer (owner occupier / first home buyer / investor) and the type of property. </p>
<p>CoreLogic head of research Tim Lawless said, “Calculating how much stamp duty is applicable on a property purchase can be confusing due to the significant differences regionally, but also due to the complexity of rules, concessions and limits that are applied to the calculation of stamp duty.” </p>
<p>Based on the median dwelling value across each capital city, stamp duty estimates can range from a whopping $32,680 in Melbourne to a modest $9,000 in Brisbane.</p>
<h3>Median dwelling value</h3>
<p><img src="https://corelogic.com.au/resources/property-pulse/article-graphs-img/2016-12-12--image1.jpg" alt="2016-12-12--image1" width="500" height="261"></p>
<p>Mr Lawless said, “Even though the median dwelling value is $200,000 higher in Sydney compared with Melbourne, the cost of stamp duty on the median valued home is actually slightly lower in Sydney, at $31,763, due to higher stamp duty rates in Victoria.”</p>
<h3>Estimated stamp duty payable<br>on median value dwelling</h3>
<p><img src="https://corelogic.com.au/resources/property-pulse/article-graphs-img/2016-12-12--image2.jpg" alt="2016-12-12--image2" width="500" height="543"></p>
<p>In some states, first-time home buyers can be offered substantial concessions on stamp duty; however there is generally an upper limit. </p>
<p>For example, first home buyer property transactions in Victoria with a price tag of $600,000 or less will enjoy a 50% reduction on their rate of stamp duty. </p>
<p>In Queensland, first home buyers purchasing a property priced less than $550,000 can realise a discount of more than $8,000.</p>
<p>Stamp duty rates can also be higher for investors. </p>
<p>Surprisingly, Mr Lawless observed that New South Wales, which is the state with the largest proportion of investors, does not charge a premium rate of stamp duty on this segment of the market.</p>
<p>The three largest states also charge a stamp duty premium on property purchasers by foreign buyers.</p>
<p>He said, “Because stamp duty costs are percentage based, as dwelling values move higher, stamp duty costs can rise disproportionately faster due to bracket creep. </p>
<p>Over the past five years dwelling values in these two cities have increased by 62% and 38% respectively which implies at least a commensurate rise in stamp duty costs in these cities.</p>
<p>The high transactional costs associated with housing are likely to be one factor that is contributing to a slowdown in the number of sales across the country.” </p>
<p>While stamp duty is generally the largest transactional cost associated with buying, there are other costs such as building and pest inspections, conveyancing, removalists and more that also need to be factored in and are likely to be dampening participation in the housing market. </p>
<p>Mr Lawless said, “Add to this the fact that most lenders will be seeking a 20% deposit and the barriers to entry become even more substantial.”</p>
<p>For state governments, stamp duty is one of the largest revenue sources. </p>
<p>In the 2014-15 financial year, state and local government taxation revenue was recorded at $89.278 billion having increased by 7.0% over the year. </p>
<p>The taxation revenue was comprised of $45.203 billion or 50.6% from property related taxes (mostly stamp duty and municipal rates). </p>
<p>While total tax revenue increased 7.0% over the year, property tax revenue increased by 10.5% highlighting that property taxes are the largest source of taxation revenue for state and local governments and are rising at a rapid pace.</p>
<p>Mr Lawless said, “If transaction numbers across the housing market continue to trend lower, state governments are likely to encounter a budget hole as stamp duty revenue falls.   </p>
<p>For this and associated reasons, we may find state governments become more serious about considering a broader based land tax that is applicable to all property owners rather than a stamp duty that is payable only across the small percentage of properties that transact each year.”</p>
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tlawless-5VLUrbAk9s

Stamp duty an obstacle for first home buyers entering the market

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<div>
<p>Ardent Leisure has sold the d'Albora Marinas portfolio for $126 million.</p>
<p>It has been bought by a jointly owned syndicate headed by Goldman Sachs and Sydney‐based commercial property lender and fund manager Balmain Corporation.</p>
<p>The sale of the country's largest marina portfolio was at a 11 per cent premium to its current book value of $113.5 million.</p>
<p>It was listed in March as Ardent's focus is on its Main Event entertainment operation and theme parks.</p>
<p>The company also sold its health clubs earlier this year.</p>
<p>The portfolio comprises seven high-profile marinas with more than 1300 berths at Rushcutters Bay, The Spit and Cabarita Point in Sydney, two marinas adjacent to the Melbourne CBD and two at Nelson Bay and Akuna Bay, north of Sydney.</p>
</div>
<div>The portfolio delivered earnings before tax of $10.2 million in FY16 representing a yield of more than 8 per cent.</div>
<div> </div>
<div>Balmain Corporation, which has more than $6 billion of assets under management, has partnered with Goldman Sachs on a number of acquisitions including the $43 million deal to buy the Martha Cove Marina project on the Mornington Peninsula last year.</div>
<div> </div>
<div>Ardent has also agreed to complete $5.6 million of pre‐planned capital expenditure projects.   </div>
<div>
<p>"The group's decision to prepare d'Albora Marinas for sale with extended lease tenure, targeted capital works and a transparent sale process has ensured that the maximum value for investors has been realised," Ardent chief executive Deborah Thomas advised.</p>
</div>
<div>
<p>The sale of the d'Albora Marinas was handled by McVay Real Estate marketing it as representing over 1,300 berths, substantial water and land leases along with development opportunities. </p>
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Ardent Leisure sells its 1,300 d'Albora marina berths

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<p>The Star Entertainment Group’s new six-star hotel planned for Sydney has ­selected a winning design.</p>
<p>It is the FJMT design for its Pyrmont site. </p>
<p>It was the most dramatic tower with a spiral twist, which some have already suggested looks like an askew stack of silver Star casino gaming chips.</p>
<p>The $500 million tower marks the return to the NSW capital of Marriott's premium Ritz-Carlton brand which will rival Crown's planned 71-storey tower across Darling Harbour at Barangaroo. </p>
<p>FJMT's design was chosen out of a competition that pitted it against local rival BVN and UK-based Grimshaw Architects.</p>
<p>Local sandstone will feature in the base of the building and will fade out out as the tower rises. </p>
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Star Casino selects FJMT spiral as design winner

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<p>GUEST OBSERVER</p>
<p>Auction volumes are set to increase slightly this week with 3,232 capital city auctions currently being tracked by CoreLogic this week compared to 3,207 auctions last week.</p>
<p>Auction volumes are set to rise this week in Melbourne, with 1,561 auctions scheduled. There are slightly fewer auctions scheduled across Sydney this week, with 1,126 homes set to be taken to auction. Auction activity is set to be higher than the corresponding week last year (2,989).</p>
<h1 class="title">
<span style="text-decoration: underline;"><strong>Capital </strong></span><span style="text-decoration: underline;"><strong>c</strong></span><span style="text-decoration: underline;"><strong>ity auctions this week:</strong></span>
</h1>
<div class="entry">
<ul>
<li><strong>Sydney: 1,126</strong></li>
<li><strong>Melbourne: 1,561</strong></li>
<li><strong>Brisbane: 190</strong></li>
<li><strong>Adelaide: 150</strong></li>
<li><strong>Perth: 72</strong></li>
<li><strong>Canberra: 110</strong></li>
</ul>
<p>Glen Waverley in Melbourne is the busiest individual suburb for auctions across the nation this week, with 24 residential homes set to go under the hammer. Followed by Reservoir (23), St Kilda (21), Richmond (20) and Hawthorn (19), all of which are in Victoria.</p>
<p>Summary of last week’s results:</p>
<p><a href="/images/2016/12/08/20161208-Capital-City-Stats.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/12/08/20161208-Capital-City-Stats.jpg" alt=""></p>
<p>Capital city auction clearance rates remained strong last week for the first week of Summer, final results show 72.3 per cent of auctions were successful. However, the number of properties taken to auction last week fell across the capital cities with 3,207 auctions held, down from 3,398 the previous week.</p>
<p><a href="/images/2016/12/08/20161208-Capital-City-Timeseries.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/12/08/20161208-Capital-City-Timeseries.jpg" alt=""></p>
<p>Last week saw Melbourne’s final clearance rate increase to 77.3 per cent, from 76.1 per cent the previous week, while for Sydney, final results show that the clearance rate for the city fell from 77.1 per cent the previous week to 75.2 per cent last week. Auction numbers decreased over the week in both Melbourne and Sydney, down to 1,416 and 1,182 from the previous week’s 1,616 and 1,262 respectively.</p>
<p>Across the smaller auction markets, performance was mixed last week, with clearance rates improving in Adelaide and Perth, while Brisbane, Tasmania and Canberra’s clearance rate fell.</p>
<p>The Hunter region was the busiest non-capital city region last week, with 73 auctions; however Geelong recorded the strongest clearance rate at 86.1 per cent.</p>
<p><a href="/images/2016/12/08/20161208-Subregions.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/12/08/20161208-Subregions.jpg" alt=""></p>
<p> <em>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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ckusher-ujnxiKuFQs

Auction volumes set to increase slightly: Cameron Kusher

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<p>A gold mine in Georgetown in central far north Queensland has been listed for sale for $5.5 million.</p>
<p>Located around 380 kilometres west of Cairns, the gold mine covers part of the <a href="https://mooloolaba.ljhooker.com.au/land_development-in-georgetown-qld-4871-au-hrygwq#.WEiiX1fbrFJ" target="_blank">historic Etheridge Goldfield</a>, Georgetown and the Palmer River.</p>
<p>The sale will secure the leases and some of the mining equipment.</p>
<p>Potential investors can make an immediate start to produce gold with a lease to Project Management Company in place.</p>
<p>The company have the experience, skill and knowledge to run a successful gold mine.</p>
<p>They have projected a return of 3445 troy ounces in the first year, which at the current sale price is equal to $6,039,085.</p>
<p>Year two and year three are projected to return 6891 troy ounces per annum, which would yield $12,237,693.</p>
<p>The world-wide gold price at $1,753 per troy ounce.</p>
<p>The current owner is nearing retirement having purchased the lease in 2009.</p>
<p>It's been listed through LJ Hooker Mooloolaba agents Jim Hughes and Yasna Hawthorne. </p>
<p>The gold mine yielded 0.7 million troy ounces of gold between 1877 and 1920.</p>
<p><span> </span></p>
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j.ballantyne1990-6AQqhLzZaK

Queensland gold mine for sale

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<p>A defining feature of 2016 was that knowing where NOT to buy became as important as where to buy.</p>
<p>Until recently, for investors it’s simply been a matter of buying in the places where prices were rising, mainly Sydney and Melbourne.  For most of the past 3-4 years, it’s felt as if owning real estate anywhere in the two biggest cities was a guarantee of capital growth.</p>
<p>As we contemplate 2017, buyers need to be lot more particular about their choice of location. Now, more than any time in the past four years, there’s a real prospect of losing money if you choose badly. Next year my No Go Zones report will be as important as the Best Buys report.</p>
<p>And the key factor in that equation is oversupply, specifically for apartments in specific locations. Both Sydney and Melbourne, as well as other parts of Australia, have locations I classify as “danger markets”.</p>
<p>And it’s clear that people are already choosing badly.</p>
<p>CoreLogic has published a report which was designed as the most popular places to buy but which, inadvertently, served as a de facto No Go Zones report. It highlighted most of the worst places to buy in the nation.</p>
<p>The fact that these were the most popular places for buyers, based on the number of sales in the past 12 months, just shows how bad real estate consumers are when it comes to choosing location - and how little research some people do before committing big money.</p>
<p>According to CoreLogic, the most popular market in Australia is the Surfers Paradise apartment market (1,616 sales in the past 12 months), followed by the Melbourne CBD apartment market (1,296). </p>
<p>I’m trying to think of a worse place to buy real estate in the major population centres of Australia, but there are few I can think of. The only real contenders would be the inner-city apartment markets in Perth and Brisbane.</p>
<p>The Brisbane CBD also makes the Top 10 list of most popular places to buy apartments in Australia, alongside the CBD, Southbank and South Yarra in Melbourne, four highrise locations on the Gold Coast, the Adelaide CBD and Dee Why in Sydney.</p>
<p>Not all of those locations are absolute duds but most of them are.</p>
<p>You have to wonder about the thought processes behind buying an apartment in Surfers Paradise. Of the major markets around Australia, there are few with a worse track record on capital growth. The median price today is lower than it was 10 years ago. Very few locations have a record so bad.</p>
<p>Of course, a poor past record doesn’t disqualify a location from the prospect of future growth – but there needs to be evidence that something has changed, or will change to turn the situation around.</p>
<p>But the situation with the high-rise suburbs of the Gold Coast is not changing. It’s situation normal – developers going overboard and building too many apartments. The Gold Coast economy is currently strong and there is growth to be found in the city’s real estate market – but not in the high-rise suburbs, where developers are determined to repeat history through overbuilding, in the belief they can make sales by marketing to poorly-researched investors interstate and overseas.</p>
<p>In the Melbourne CBD, the median apartment price is lower than it was a year ago and three years ago, and about the same as it was five years ago. Is anything set to change? Yes, but not for the better. Massive oversupply will cause vacancies to rise, with rents and property values falling.</p>
<p>Ditto near-city locations like Southbank.</p>
<p>So, as a guide for consumers on where to buy, this list is worse than useless – it’s dangerous.</p>
<p>There’s a different look about the list of Top 10 most popular places for house sales, but as a guide for buyers it also has little value. It consists of new suburbs on the periphery of Melbourne where lots of new homes are being built and three NSW regional cities which are treated as a single suburb, rather than being diverted into individual suburbs like most cities.</p>
<p>So, again, meaningless information of no value to serious investors.</p>
<p>Sadly, many investors employ the “me too” research method. If everyone’s doing it, it must be right. Right?</p>
<p>Those who apply that method after reading these lists, especially the Top 10 list for apartments, run the risk of losing serious money.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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terryryder-YECXbqmri2

Where not to buy property: Terry Ryder

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<div>The Australian National Accounts recorded that real GDP growth came in at a seasonally adjusted -0.5 percent for the third quarter and +1.8 percent for the year. </div>
<div> </div>
<div>Oops.</div>
<div> </div>
<div>This was the first negative quarterly result for GDP since the Queensland flood-affected quarter of March 2011, and only the fourth such result since Australia's last recession in 1991. </div>
<div> </div>
<div>With a negative contribution of -0.2ppts net exports were a drag on growth this time around, and there was a big drop in public capital expenditure (for a contribution of -0.5ppts) after a surge of government investment last quarter, summarily in helicopters, healthcare, and hepatitis drugs.</div>
<div> </div>
<div>Household consumption contributed 0.3ppts to growth this quarter, but there wasn't much joy elsewhere. </div>
<div> </div>
<div><a href="/images/2016/12/08/GDP1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/12/08/GDP1.jpg" alt=""></div>
<div class="separator"> </div>
<div>With downward revisions to previous quarters, this takes annual GDP growth all the way down to +1.8 percent. </div>
<p><a href="/images/2016/12/08/GDP1-1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/12/08/GDP1-1.jpg" alt=""></div>
<div class="separator"> </div>
<div>Nominal GDP fared somewhat better, growing by +0.5 percent in the quarter, and by +3 percent over the year.</div>
<p><strong><span style="text-decoration: underline;">Income boost</span></strong></p>
<div>It's often been pointed out that in a country such as Australia with its volatile bulk commodity prices, real GDP isn't always an ideal measure of how things are tracking. </div>
<div> </div>
<div>In this quarter, for example, there was a large +4.4 percent jump in the terms of trade, meaning that the index is now up by +1.4 percent over the past year. </div>
<div> </div>
<div>Given that the terms of trade index has been falling since Q3 2011, this is hugely welcome news!</div>
<p><a href="/images/2016/12/08/GDP3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/12/08/GDP3.jpg" alt=""></div>
<div class="separator"> </div>
<div>Behind the scenes, of course, commodity export volumes have been ramping up over time.</div>
<div> </div>
<div>Thus while real GDP contracted, real gross national income, real gross disposable income and real net national disposable income all rose to record highs in the September quarter, and we can expect to see further gains in Q4. </div>
<p><a href="/images/2016/12/08/GDP5.jpg" target="_blank">Click to enlarge</a> </p>
<div class="separator"><img src="/images/2016/12/08/GDP5.jpg" alt=""></div>
<div class="separator"> </div>
<div>In real terms, gross national income increased by +0.9 percent over the quarter and +3.2 percent over the year. </div>
<div> </div>
<div>Essentially, then, this this quarter has been the mirror image of the dynamics we've seen in previous quarters, shifting to strong income growth and weaker GDP growth.</div>
<div><strong><span style="text-decoration: underline;">Two-speed</span></strong></div>
<div> </div>
<div>Research by SGS Economics and Planning has shown that Sydney and Melbourne have beendominating economic growth, while many regional economies are presently running slower as they adjust to life post-resources boom. </div>
<div> </div>
<div>State final demand was very weak in Western Australia at -3.8 percent as capex continues to work through its decline. </div>
<div> </div>
<div><a href="/images/2016/12/08/GDP4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/12/08/GDP4.jpg" alt=""></div>
<div> </div>
<div>At the industry level, construction was the biggest loser, contracting by -3.6 percent, and swiping some -0.3ppts from GDP growth. </div>
<div> </div>
<div>Compensation of employees grew by +1.3 percent over the quarter and a positive +3.1 percent over the year, while the household savings ratio ticked down to 6.3 percent. </div>
<div> </div>
<div>I'll look at the impact on household incomes and expenditure in a separate post. </div>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<p>After 100 consecutive quarters without a recession, the economy posted a negative GDP result for the third quarter, but real national income measures surged to a record high.   </p>
<div>Whether or not we experience a technical recession next quarter is open for debate, but it looks to be unlikely based on the recent growth in retail spend. </div>
<div>
<br>Overall, strong public investment figures in the first half of the year masked a softening underlying trend in growth in the economy. </div>
<div> </div>
<div>An annual GDP growth figure of +1.8 percent feels much more in line with the metrics we've seen elsewhere, including low employment and wages growth, soft inflation, and a budget in deficit. </div>
<div>
<br>If hours worked are said to be the best measure of the health of the economy, then the conclusion is clear: the economy stuttered in the first half of 2016, although there was at least a moderate improvement of +0.5 percent in Q3. </div>
<div> </div>
<div><a href="/images/2016/12/08/GDP7.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/12/08/GDP7.jpg" alt=""></div>
<div> </div>
<div>In the face of an obviously weaker result, a key question for the government now is whether it uses low yields to borrow and invest in infrastructure, as the Reserve Bank doesn't sound particularly keen on cutting the cash rate too much further!</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

A recession looks unlikely: Pete Wargent

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<p>Workspaces of the future must be designed to be better than any alternative, according to Tim Lovitt, Associate Director of Digital Intelligence, PwC Australia.</p>
<p>He recently suggested said the firm could take up co-working space in future in the new building at Barangaroo. </p>
<p>“PwC has been experimenting for over a year with co-working space," he said.</p>
<p>"We have diverse partnerships, including Facebook and LinkedIn, tailored to solving specific problems for individual projects.</p>
<p>"This is our focus, and we will build our workspace around that.”</p>
<p>Lovitt said workspaces of the future must be designed to be better than any alternative. </p>
<p>“Workspaces of the future will need to be incredible spaces that people wish to work in, that are better than the alternatives – such as our lounge rooms or the local coffee shop,” concluded Mr Lovitt. </p>
<p>He made the comments at Knight Frank Australia's Global Cities: The 2017 Report launch which investigated the future of real estate in the world’s leading cities. </p>
<p>According to Knight Frank’s Head of Research and Consulting, Australia Matt Whitby, disruption is set to equal demand in the real estate sector. </p>
<p>“Yes, jobs are being lost across sectors globally due to automation and technology, but humans are getting more interesting careers doing what humans do best – problem solving. This will be similar for property professionals, who need to embrace changes in the sector and the economy and become more advisory – offering greater intelligence and idea generation to clients," he said.</p>
<p>“New jobs being created are offering a flow-on effect into other sectors, including property. For example, the Fintech sector, including cashless payments and other financial technology, has created a complete new industry. This is prompting new demand in other sectors, including real estate. Newly-created, high-value jobs in programming or app design are creating demand for expensive, trendy offices.”</p>
<p>Whitby agreed co-working will be one of the biggest growth sectors in the global city office markets, with Sydney and Melbourne leading the way here in Australia. </p>
<p>“It will not just be start up, incubator, or collaborative businesses. Demand for co-working space will expand to the large, corporate occupiers who require growth or project space on an as-needed basis.”</p>
<p>Whitby said WeWork is the obvious example as in Sydney, WeWork has gone from zero space six months ago and will occupy 22,000 square metres of space by next year.”</p>
<p>In October WeWork Martin Place opened in the heart of Sydney’s central business district surrounded by Australia's financial institutions in an historic Sydney building, the Moneybox Building.</p>
<p>Designed by WeWork, along with local external consultant TomMarkHenry, the design takes cues from the building’s banking history as the hot desks on the main floor were inspired by the old bank teller desks that can still be seen in the lobby. Murals and paintings from local artists Tristan Kerr and Dina Broadhurst adorn the inside of the building.</p>
<p>Last month WeWork, the space, community and services provider based in New York, opened its second Sydney location, at 100 Harris Street, Pyrmont (above). </p>
<p>WeWork currently has around 70,000 members, located in 100+ physical locations in 30+ cities and 12 countries around the world.</p>
<p>WeWork Pyrmont is located in a former 100 year old woolstore and presents a unique opportunity for one of WeWork's spaces.</p>
<p>The issue of pets in the office was addressed by Savills International.</p>
<p>"Popularity for bringing <a href="https://www.savills.com.au/blog/article/147357/australia-articles/pets-in-the-office--is-it-just-a-fad-or-a-does-it-deliver-real-benefit-.aspx" target="_blank">pets to the workplace</a> seems to be increasing around the world," it noted.</p>
<p>"In the United States, a 2015 Society for Human Resource Management survey found that 8 percent of American workplaces allowed employees to bring pets to work (up from 5 percent in 2013).</p>
<p>"Within Australia, the uptake for large corporations has not been very high, although the types of companies that have embraced this new fur-friendly culture tend to be creative or industries such as fashion, tech, IT, media and start-ups," the Savills report noted. </p>
<p>It noted the location of the workplace can also greatly affect the likelihood of the company to include pets in the office.</p>
<p>"We are seeing companies on the city fringe and suburban locations more open to the idea of pets in the office, as there is plenty of space in the surrounding areas for the animals to have a break outside of the office."</p>
<p>Savills wondered did the trend deliver real benefit to your company, or is it just a distraction? </p>
<p>What are the benefits?</p>
<p>For the employees: Employees who bring their pets to the office often have less stress and a healthier work-life balance</p>
<p>For the workplace: It can be a great improvement to the workplace culture - pets are a great conversation starter and can help strengthen working relationships</p>
<p>For the business: Having pets in the office can encourage employees to stay longer hours and businesses have shown a lower rate of employee absenteeism. Plus, pets in the office can be a drawcard for attracting new employees</p>
<p>For the animals: The animals get benefits too, including being out and about (instead of cooped up at home) and socialising with new people </p>
<p>Things to consider</p>
<p>When considering drawbacks to having animals in the workplace, the number one concern is usually allergies. Depending on the type of allergy, one way to lessen the trigger of an allergy is to ensure the pets are clean &amp; groomed. Alternatively, employees should set up pet-free zones, or keep their pet close to their own workstations</p>
<p>It’s also important to select the right types of pets to bring into the office – overly animated or energetic animals can serve as a distraction in the workplace  </p>
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Perhaps not pets in the office, but workspaces need to outdo the local coffee shop

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<p class="JLLPRheadline">The majority of respondents to a JLL survey at TEDxSydney rate face to face contact very high in the workplace of the future (88 percent) and 59 percent still want a physical workplace but wouldn't create a CBD if they could.</p>
<p class="JLLPRbodytext">Some, 81 percent liked the idea of an eco-campus where individuals could live, work and play, 57 percent wouldn’t create a CBD and 78 percent of people wanted to create small self-sufficient communities.</p>
<p>Results from the survey were used to create a new white paper from JLL titled ‘Is humanity the future architect?’.</p>
<p>Rajiv Nagrath, JLL’s Australian head of corporate account management said the research found that, despite technological advancements and the potential impacts of robotics and artificial intelligence, there was a desire for a future dependent on people, not machines.</p>
<p>"Even though it was acknowledged that future technology would allow work to be done anywhere, 88 percent of respondents still placed high value on face-to-face interaction in the workplace of the future," he said.</p>
<p class="JLLPRbodytext">“While technology continues to evolve at a rapid rate, our basic needs and wants of human connection remain consistent with what they were 100 years ago.</p>
<p>“There will still be a desire for continued human engagement, connected communities and workplaces that foster co-working and entrepreneurship."</p>
<p>Richard Fennell, JLL’s Australian head of property and asset management said the results unanimously focused on human connections and a desire to be closer to nature.</p>
<p>"Some 92 percent of respondents wanted to create a responsive workplace that adapts to enhance the health and wellbeing of its inhabitants," he said.</p>
<p>"It seems that amongst our condensed and densely populated skylines, the people living and working within them are craving more open spaces, more air, and more natural materials and environments.</p>
<p>“Buildings in 2050 will respond and adapt to the people within it. For example, when you enter a lobby, the building will receive a biometric reading of your heart rate, general health and even your age. </p>
<p>"This information will be used to enhance your experience within the building, such as temperature, sound, smell and visual adjustments via implanted devices or wearable technology."</p>
<p> </p>
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