ANZ believes the Reserve Bank is in no rush to move again.

Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.

That positioning, in ANZ’s view, makes a June rate hike unlikely.

The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.

The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.

As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.

Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.

Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.

The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.

Ultimately, most members leaned toward the inflation side of that equation.

Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.

That’s important.

While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.

ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.

That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.

However, where ANZ diverges from the RBA is on the outlook for activity.

The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.

ANZ is less convinced.

The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.

That divergence matters because it shifts the balance of risk.

If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.

It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.

The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.

On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.

For now, the Board is choosing to wait.

But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.

In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.

For borrowers, it reinforces the reality that relief is not imminent.

And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.

According to ANZ, it is a balance that is becoming increasingly difficult to maintain.

Joel Robinson

RBA to hold rates for "prolonged period" rather than hikes: ANZ

<a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.

The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.

<a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.

[smartcode_project:default project_id=135663 project_image_fid=360477]

The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.

Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.

VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.

“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.

[smartcode_project:default project_id=135663 project_image_fid=360505]

The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.

The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.

Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.

[smartcode_project:default project_id=135663 project_image_fid=360473]

BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.

The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.

<a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.

The first stage of Cumulus Grand Villas is targeting completion in 2026.

[smartcode_project_cta:default project_id=135663]

VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.

The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.

For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.

Waverley Council’s response has been to move early, and decisively.

Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.

<img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" />

At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.

That repositioning is built around four key ambitions.

The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.

The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.

Oxford Street Mall sits at the centre of that shift.

Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.

&nbsp;

The second ambition is to transform Bondi Junction into a world-class interchange.

Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.

The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.

The third ambition focuses on greening and open space.

One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.

The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.

The fourth ambition is perhaps the most important from a development perspective: growth that gives back.

Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.

New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.

The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.

Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.

It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.

Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.

Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.

The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.

This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.

Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.

That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.

&nbsp;

&nbsp;

&nbsp;

If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.

“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

Toorak's dress circle St Georges Road, home to some of the city's priciest homes, is set for a rare new apartment development.

Blood Diamond Group, an entity tied to Tina Brandi, wife of David Brandi who has been a prolific bidder on The Block over the years, has filed plans for an ultra-exclusive development across an amalgamated 3,662 sqm site at <a href="https://www.apartments.com.au/new-apartments/104-106-st-georges-road-toorak-vic-3142">104 and 106 St Georges Road</a>.

The proposal would replace two existing homes on the riverfront site with a five-level apartment building cascading down the steeply sloping land toward the Yarra River. Designed by Charles Wright Architects, the development has been carefully shaped around the site’s topography and river environs, with the upper levels stepping back to reduce visual bulk from both St Georges Road and the Yarra corridor.

Planning documents describe the proposal as “a site layout and building typology that is consistent with the emerging character of the area and which provides exceptional amenity for future residents without compromising that of neighbouring properties.”&nbsp;

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ea19a17e-7528-4fa8-b727-05f2f7c025e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20a_0.png?VersionId=rZ2IjdoUL_UrRl1sZ4wZHnQXbYUaEmUQ" />

The scheme comprises 12 apartments, including 10 three-bedroom residences, one one-bedroom apartment, and a substantial split-level five-bedroom penthouse. A 624 sqm communal rooftop terrace will crown the building, while three undercroft levels embedded into the hillside will accommodate apartments and basement parking.

The design leverages the site’s dramatic northern outlook across the Yarra River, with living areas and balconies oriented toward the water. A central atrium running the full height of the building is intended to draw natural light deep into the residences and improve internal amenity.

Landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo Design &amp; Landscape</a> will play a major role in softening the built form, particularly along the river edge where significant setbacks have been introduced. The proposal includes a minimum 30-metre setback from the Yarra River boundary, preserving a substantial landscaped buffer between the development and the waterway.

While a mature English Oak near the front of the site is proposed for removal, the plans retain a large English Elm closer to the riverfront, alongside other established vegetation in the lower section of the property.

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ed3bf19b-5bc7-482f-bde7-41f709a13c3a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20b.png?VersionId=SG_kBGu4rOaSPY8FtVcmPJfSCrstuOfg" />

Architecturally, the building adopts strong horizontal forms with expansive glazing and curved balcony edges facing the river. Planning documents note the upper levels “adopt a receding form” to ensure the building responds appropriately to the Yarra River environs overlay controls.&nbsp;

The surrounding streetscape is characterised by large contemporary homes embedded into the hillside, many presenting as modest one or two-storey forms to the street before expanding toward the river frontage below. The planning report notes this established pattern heavily influenced the massing strategy for Toorak Pavilion.&nbsp;

Until the recent sale of the landmark Clendon Road mansion Coonac for around $130 million, St Georges Road held the state's most expensive home, the $80,000,088 derelict "Ghost House" mansion that was bought by crypto king Ed Craven.&nbsp;

Blair House, also on St Georges Road, sold for $74.5 million in 2022.

First look: Toorak Pavilions slated for dress circle St Georges Road

Six months after a development site on Kangaroo Point’s Shafston Avenue sold for $6.55 million, plans have been lodged for a 23-storey apartment tower.

A company named JMT Mega Capital, understood to be interstate investors when the 1,222 sqm double block traded late last year through Patona Property, is proposing an 84-apartment development in place of the existing low-rise buildings.

The slender tower at <a href="https://www.apartments.com.au/new-apartments/212-220-shafston-avenue-east-brisbane-qld-4169">212–220 Shafston Avenue</a>, overlooking the Brisbane River, has been designed by <a href="https://www.apartments.com.au/architects/aplus-design-group">Aplus Design Group</a>. It will comprise a mix of one-, two- and three-bedroom apartments above six basement levels, topped by rooftop resident amenities.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="7e17ba9e-553e-42ef-92b6-22081671521a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_3.png?VersionId=hlVUf99vrOjUs.vhQs0qV0DhOncUy9T8" />

The development has been designed as a vertically articulated tower with recessed balconies, curved façades and planted edges intended to soften its scale within the evolving Shafston Avenue skyline. In the submitted Urban Design Report, Aplus Design Group said the tower had been “shaped with a slender vertical expression, articulated façades, recessed balcony zones, integrated planting and a clearly defined podium relationship, helping to reduce perceived bulk and create a more elegant contribution to the Shafston Avenue streetscape and broader Kangaroo Point skyline.”

The scheme comprises 84 apartments, including 25 one-bedroom units, 34 two-bedroom apartments and 25 three-bedroom residences. A total of 104 car spaces are proposed across six basement levels, including resident, visitor and accessible parking.

Residents will have access to rooftop communal open space and shared amenities, while the development also incorporates deep planting zones and subtropical landscaping throughout the podium and tower levels. The project includes 35 per cent communal space coverage across the site and a 17.5 per cent deep soil zone allocation to support urban greening outcomes.

The application exceeds the mapped building height under the Kangaroo Point Peninsula Neighbourhood Plan and is being assessed under Brisbane City Council’s impact assessment pathway. The design team argues the additional height is supported by the site’s strategic inner-city location, existing high-density zoning, and proximity to transport and employment hubs.

“The design has been developed to make better use of a well-serviced urban site within an established high-density residential setting, while improving the street presentation and overall quality of the public realm interface,” the report states.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="1ab44b1e-ff45-4bf3-8da8-8aa0cd79db33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_10.png?VersionId=tSxeGekZOqj1e9g3PEn_yFoC3taKDp3U" />

The proposal adds to a growing pipeline of apartment developments reshaping Kangaroo Point ahead of the 2032 Brisbane Olympic Games, with demand continuing to strengthen for new housing supply in well-connected inner-city precincts.

Mosaic has nearly sold out its under-construction <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford by Mosaic</a>&nbsp;and <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a>,&nbsp;while Pikos recently completed <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye Residences</a> nearby. Pikos is also delivering <a href="https://www.apartments.com.au/new-apartments/gaia-kangaroo-point-108-lambert-street-kangaroo-point-qld-4169">Gaia</a>, over 230 three- and four-bedroom apartments on Lambert Street.

First look: 23-storey Kangaroo Point apartment tower planned for Shafston Avenue riverfront precinct

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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MAB Corporation has listed a service station and convenience store complex with top brands as tenants, close to the Melbourne CBD, with price expectations in the mid-$20 millions.
The West Gate Express property will be sold through expressions of interest closing July 14, subject to leases to Viva Energy Australia (Shell/Coles Express), Hungry Jack’s and Red Rooster on 15-year terms.
The total net income from the freeway style fuel/food complex is around $1.41 million.
The listing agents are Savills’ Chris Jones, Clinton Baxter and Ben Hegerty, with Dawkins Occhiuto’s, Andrew Dawkins and Walter Occhiuto.
Jones said it was difficult to put a price on the property given the fact that it could not be replicated and that there had been no sales of comparable investments.
Developed by MAB, the new complex comprises nearly 700 square metres of buildings and 1,200 square metres of canopy on a 10,000 square metre site. Frontages to the West Gate Freeway and Cook Street provide exposure to more than 180,000 vehicles per day.
"This is an exceptional opportunity on one of Australia’s busiest roads with an extraordinarily secure lease profile to several high profile national and international tenants and very strong underlying land value," said Jones.
Baxter said the property also offered substantial depreciation benefits, low projected capital expenditure, and a tenancy diversity which minimised risk profile.
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MAB’s West Gate servo in Melbourne on the market through Savills

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Marprop Real Estate Partners has acquired an office tower in Sydney’s Parramatta for a little more than $42 million as it looks to re-enter the commercial market in the western suburb.
The property, which settled this week, was acquired from a private vendor. At the purchase price of $4,282 per square metre, it reflects a fully leased yield of 9.6 percent. 
The 126 Church Street building has a net lettable office area of about 9,800 square metres over 12 levels of office space plus ground floor retail and basement parking. 
Marprop sold its 93 George Street, Parramatta asset for $38 million in December 2015. 
Marprop CEO, James Marshall, said, “This transaction fits Marprop’s value-add investment criteria. It has excellent repositioning potential to apply the active management skills for which our company is known and we look forward to engaging with existing and prospective tenants as we reposition the asset.” 
The building is located opposite Westfield’s super regional shopping centre and adjacent to Parramatta’s transport hub. According to Marshall, Parramatta is currently one of the strongest performing CBD office markets in Australia. 
“Parramatta is expected to continue to benefit from strong tenant demand and the current major infrastructure investment which includes the new light rail and Parramatta Square,” he added. 
John McCann of Colliers International brokered the deal. 
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jonathanchancellor-7SQnKwU6yx

Marprop reinvests in Parramatta market with office tower purchase

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GUEST OBSERVER
Advanced economies have essentially been in a low growth, low inflation and low interest rate nexus since 2008. There have been a few oscillations along the way, but the trend has been consistent throughout.
The Australian economy was able to decouple from the “3 lows” for much of that period due to a mining investment boom that left the economy with little spare capacity. As a result, growth, inflation and interest rates were significantly higher in Australia than in the G7 economies. But that has since changed and Australia has transitioned to the low inflation and low interest rate world, says the latest note from CBA Economics.
<a href="/images/2016/06/21/Screen%20Shot%202016-06-21%20at%2011.12.07%20AM.png" target="_blank">Click to enlarge</a>
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While GDP growth in Australia has been solid, if not spectacular, domestic demand growth has been soft. And while the unemployment rate has trended down recently, it is still stuck above the level associated with full employment.
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In other words, there is slack in the Australian economy and this has led to record low wages growth and underlying inflation now running below the RBA’s 2-3 percent pa target band. The RBA has responded by cutting its policy rate to a record low of 1¾ percent. The latest rate cut can be put down to a change in the RBA’s assessment on the outlook for inflation because the Bank significantly downgraded its inflation forecasts in the May Statement on Monetary Policy (SMP). As a result, we expect further rate cuts to come in 2016 as the central bank seeks to further stimulate the economy. We see the RBA cutting to 1¼%.
This note explores the issues around spare capacity, wages and inflation in Australia and the implications for monetary policy.
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Spare capacity and the labour market
Labour market outcomes provide key indicators of spare capacity in an economy. In particular, the unemployment and underemployment rates are measures that show how far an economy is operating below its potential.
The unemployment rate that is commensurate with an economy producing around its potential output is generally associated with stable inflation. It is referred to as the ‘non-accelerating inflation rate of unemployment’ (NAIRU). The most recent OECD estimates of the NAIRU in Australia put it at 5.3 percent and Treasury estimates it to be 5.0 percent. Whichever way you slice it, the unemployment rate in Australia has been above the NAIRU for the past three years even though it is low by historic standards.
The underemployment rate, however, remains near its highest level on record. This indicates that the Australian economy is operating below its capacity and an output gap has opened up. This has had implications for wages and inflation.
While the output gap in the US has been closing (and core inflation has lifted a little), the reverse has happened in Australia over the past two years. An output gap has opened up primarily due to the end of the labour-intensive mining investment boom and resultant impact on jobs and domestic demand. GDP growth has been solid over that period, but domestic demand growth has been soft.
Decent GDP growth and weak domestic demand growth is reconciled by the strong contribution to growth from net exports. The big lift in resource export volumes is great for headline GDP growth. But mining production is not labour intensive like mining investment. As such, productivity in the resources sector has lifted, but headcount has fallen.
The underemployment rate tends to fly under the radar, but it’s a very usual measure of labour market slack. It provides a gauge of the proportion of people who are employed people but whose labour is not fully utilised. It is near its highest level on record. The sum of the unemployment rate and the underemployment rate produces the underutilisation rate which is the broadest measure of spare capacity in the labour market – it is high and presently sits above the level hit during the Global Financial Crisis.
The lift in underutilisation is also captured through the step down in average hours worked by full-time workers from late-2011. Average hours worked of full-time workers remains well down on its late-2011 peak.
Implications for wages
The lift in the unemployment rate and associated increase in spare capacity in the labour market has contributed to a slowdown in wages growth (both real and nominal). Since mid-2010, wages growth has eased and is currently running at its lowest annual rate since the 1990s recession.
The decline in wages growth has been broad-based across the private and public sectors, though the public sector slowdown has not been as pronounced. Most industries have experienced a slowdown in wages growth and the Wage Price Index is growing at a flaccid 2.1 percent pa (as at QI 2016).
The picture appears even softer when looking at Average Weekly Earnings (AWEs) which are running at just 1.5 percent pa. The WPI measures changes in wages across a range of industries (just like the CPI picks up price changes for a basket of goods), but it doesn’t pick up compositional changes in the labour market. AWEs, however, do. Growth in AWEs has declined by more than growth in the WPI because of the shift in jobs away from higher paying mining-related jobs towards lower paid services sector jobs.
The slowdown in wages growth due to a lift in spare capacity and increase in the unemployment rate was expected. But the historical relationship between wages growth and the unemployment rate suggests that wages growth has slowed by a lot more than would have usually been expected. We think that there are a few reasons for this. First, a more flexible labour force enables firms’ greater scope to limit wages growth due to slackness in the labour market. It may be that workers are willing to take lower wages growth for job security.
Second, the underutilisation rate has risen by more than the increase in the unemployment rate meaning that the change in the unemployment rate alone is not fully capturing the lift in spare capacity in the labour market. Third, job security fears have risen substantially over the past few years. Employees are less likely to look to negotiate a pay rise while job security fears are elevated. Finally, the terms-of-trade has fallen significantly which means that nominal income growth has supressed across the economy. This has effectively crushed wages growth by more than would have otherwise been the case.
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Implications for inflation
Headline inflation has slowed considerably in Australia and has been running below the RBA’s target band for the past six consecutive quarters. Underlying inflation has also slowed and the most recent print (QI) showed it was running at just 1.5 percent pa.
The impact of declining wages growth as a result of a lift in spare capacity has put downward pressure on non-tradables (i.e domestic) inflation. At the same time, tradables inflation has slowed primarily because of a big fall in the price of oil. This muted the impact that the lower AUD was expected to have on tradables inflation. The relationship between non-tradables inflation and wages growth is depicted in the chart opposite. As spare capacity in the labour market has lifted, wages growth has slowed and dragged down the rate of domestic inflation with it.
We expect domestic inflation pressures to remain weak primarily because spare capacity in the labour market will keep a lid on wages costs. Wages growth is unlikely to lift until the unemployment rate gets closer to the NAIRU. And we are some way off that. In fact, falling inflation expectations in Australia points to some further weakness in wages growth.
The NAB survey of businesses suggests that there has been a sharp decline in long run inflation expectations. Almost 70 percent of Australian businesses surveyed expect inflation to average less than 3 percent over the long run, more than double the proportion before 2012. Business long run expectations for inflation has been a good predictor for wage inflation and suggests earnings growth may slow further in 2016 (see chart opposite).
There are other forces, too, that are weighing on inflation. Rental growth, for example, has slowed considerably because dwelling supply has lifted, particularly in the apartment space. With further supply to hit the market over the next 18 months, rent inflation should remain weak. So there aren’t any forces on the near term horizon that point to a lift in inflation. Eventually the large fall in oil prices will ‘wash through’ the quarterly data prints. But even so, we expect the pulse of headline and underlying inflation to remain soft.
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Implications for monetary policy
The degree of spare capacity in the economy is an important consideration for monetary policy because it is the primary driver of domestic inflation. The RBA’s rate cut in May came purely down to the Bank’s concerns about entrenched low inflation and disinflation risks. Growth and labour market trends didn’t signal that more rate cuts were forthcoming. Indeed, falling inflation against an unemployment rate that is trending lower is rare.
The Minutes of the May Board Meeting suggest that the decision to cut rates was a finely balanced one. Specifically, “members discussed the merits of adjusting policy at this meeting or awaiting further information before acting”.
So the 50/50 market pricing going into the meeting was probably right. But the May SMP, published a few days after the rate cut, suggests that further policy easing is coming. The Bank made material downgrades to its inflation forecasts in the SMP, shaving ½ppt off its near term underlying and headline inflation forecasts. The RBA now expects both underlying and headline inflation to be 1-2 percent pa over 2016 (below the Bank’s target band). This points to further rate cuts, in our view.
Since the May interest rate cut a number of prominent economists, policymakers and commentators have come out questioning the RBA’s latest rate cut. Indeed, former RBA Governor Ian Macfarlane stated that, “the inflation targeting approach says that if inflation forecasts are below target, we should run an easy monetary policy – we already have that.
It doesn't say that each time we receive an inflation statistic showing it is below target, we have to cut interest rates." And former RBA Governor Bernie Fraser stated that, “I was a bit surprised by the rate cut on budget day because of the ambiguity that such a move is likely to create in the public mind. I wouldn't myself have been concerned about a short period of under 2 per cent inflation – not in the slightest.”
These comments are interesting food for thought. Indeed, we have our own view on whether the RBA should have eased policy in May. But for us market economists, what primarily matters is calling what the RBA is likely to do next and not what we think they should do. As such, we expect further monetary policy easing and have pencilled in two more rate cuts that would take the cash rate to just 1¼ percent. Current market pricing is indicating a terminal cash rate of 1.42 percent.
As always, the timing of picking rate moves is pretty tough. But we favour August and November as these dates follow CPI updates. In our view, all rate meetings over the near term are “live” and activity data will play a role in shaping market expectations and pricing over coming months.
Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
 
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Why spare capacity is driving wages growth, inflation & rates down: CBA's Gareth Aird 

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The downturn in Perth’s office market could last for at least two more years, with the CBD vacancy rate yet to peak, according to a grim forecast by research firm BIS Shrapnel. 
Prime net stated rents are forecast to fall by a further 19% and net effective rents by a further 23 percent. Rents will stay depressed for the remainder of this decade. 
Average stated rents are not expected to regain current levels over the next 10 years, according to some of the key findings of BIS Shrapnel’s research. 
The research contrasts with some commentators’ views that the Perth CBD office market is close to the bottom of the cycle. The CBD vacancy rate has already blown out to around 22 percent from just 4 percent in 2012, prime net stated rents have fallen by more than 20 percent, and effective rents have fallen by 60%. With the volume of new completions slowing down, the argument is that the market will start to recover. 
Not so, says BIS Shrapnel. The next two years will be rocky for the Perth office market. 
Demand for office space in Perth is closely tied to investment and in particular, resources investment — both in terms of the resources companies themselves and those who service them. The problem is that the downturn in resources-related investment is not over yet. 
BIS Shrapnel estimates that Western Australia is less than 40 percent through a near 70 percent decline in engineering construction. Whilst investment in iron ore has been falling for a number of years, the decline in oil and gas investment is just beginning. As mega projects (such as Gorgon 1st to 3rd train and Wheatstone) are completed and not replaced by projects of similar value, this will contribute directly and indirectly into further falls in employment and demand for office space. 
“Falls in resources investment will swamp the positives for office employment coming from increased mining production” says Lee Walker, senior project manager at BIS Shrapnel. 
The completion of Woodside’s new 55,000 square metre headquarters at 98 Mounts Bay Road in 2018 is expected to push the office vacancy rate even higher to an estimated 24 percent by June of that year. 
“Rising vacancies and increasing competition to secure tenants will put further downward pressure on market rents” says Walker. 
Average prime net stated rents are expected to fall by close to 20 percent over the next two years, with effective rents forecast to fall by 23 percent—putting the peak to trough fall in effective rents at nearly 70 percent. 
“It’s too early to call the bottom of the cycle. There’s more pain to come for building owners. The balance of power in leasing negotiations will clearly favour tenants over the next few years” concludes Walker.
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Downturn in Perth office market far from over: BIS Shrapnel

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Accounting software maker MYOB's new office in Melbourne's Richmond is a far cry from the dilapidated warehouse from which it was shaped to reflect a futuristic workplace by design firm Futurespace.
While planning the makeover, the interior design and architecture agency asked MYOB's employees how they would like to work and what features they would like. With these insights, Futurespace set out to create a tech hub based on the principals of agile working, including inception rooms to foster innovation, plug and play technology, informal meeting spaces and a funky garage space for meetups and hackathons.  
The new office space in Richmond reinforces MYOB’s investment to local technology talent. The office houses more than 200 of its engineering and development employees.
“This is not your typical corporate office. The way we work is becoming more fragmented and the MYOB office is an embodiment of this," said Futurespace managing director Angela Ferguson. 
"We took the time to understand what MYOB’s employees wanted from the space plus how they worked and combined this with MYOB’s values of innovation, collaboration and high performance.” 
The location and fitout are both drawcards in a part of Melbourne that is fast becoming a technology and innovation hub.
“The space was designed to attract and retain talented team members, but it goes beyond that. It aligns the principals of lean and agile software development with the physical space,” said Ferguson.
As an instance, Ferguson said MYOB's employees asked for lots of walls to write on, which was not possible in an open warehouse with few walls. Futurespace overcame the challenge by introducing mobile scrum/Kanban walls that didn’t close in the space or block natural light.
Alla Keogh, MYOB head of People and Performance, said the idea was to create "an inspiring, contemporary, technology hub for our people to collaborate, innovate and interact that reflect our values, brand and unique culture".
"It is a place for our product development and user experience and design teams to be inspired to build world class software products for our 1.2 million clients,” said Keogh.  
The feedback from employees has been very positive too.
Design elements included in MYOB’s new office include:
The office includes a wellness/prayer room and a dedicated mothers’ room.
Garage inspired space – An area that performs a variety of functions, like meals, quick coffee meetings, games and down time, team meetings and a space for meetups and hackathons.
Inception rooms – Spaces that teams use to explore ideas, begin a new project and ‘create’. These rooms have flexible furniture along with digital and analogue tools. 
Platform spaces – Designed to occur throughout the workstation areas, they provide a relief for the workspaces and can be used for chance meetings, quiet work, small team meetings, brainstorming and relaxation/rejuvenation. 
Tiered bleacher style seating area – This can be for large ‘all staff’ meetings and has a video link to other MYOB offices. This can also be used for individual quiet work, informal meetings and other small to large gatherings.
Booth seating – Essentially informal meeting rooms.    
Plug and play technology – This means the connection with other MYOB teams in different locations is seamless. The technology is intuitive and easy to use.
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Futurespace designs new futurist MYOB office in Melbourne's Richmond

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Australia’s cities may witness a retail renaissance as governments invest in public transport infrastructure like the light rail which is likely to support the expansion of retail outside of the core CBD areas, says new research by real estate firm Colliers International.
Seasonally adjusted national retail sales data released by the Australian Bureau of Statistics grew at 3.6 percent year on year, just below the rolling 10-year average rate. 
Given the rotation toward the services-orientated sectors, it’s unsurprising that retail sales are strongest within the south eastern states, according to the research.
New South Wales and Victoria, now boast annualised growth rates of (4.95 per ent year on year) and (4.30 percent year on year) respectively, well above the national average. Retail sales growth in resource orientated economies of Queensland and Western Australia are less impressive at just (1.2 percent year on year) and (2.04 percent year on year) respectively.
Retail market conditions have been mixed across states, reflecting in part the ABS sales data trends, according to Michael Bate, head of Retail and national director at Colliers International.
“Within the CBD markets, our proprietary Colliers Edge data from Quarter 1 in 2016 (1Q16) suggests that rental growth has been the strongest in Sydney while incentive levels across almost all cities has remained broadly unchanged. 
“CBD sales activity confirms this trend, with cap rates remaining the sharpest in Sydney and Melbourne. However, we note that all CBD’s have experienced cap rate compression on an annualised basis.
“Going forward we expect apparel /department stores to maintain momentum and we should see some growth in cafes /restaurants as the impacts of the lower dollar and increased tourism take hold.
“The Light Rail really is a game-changer, especially for Sydney CBD retailers and harks back to the city’s glory days when trams connected shoppers with a network of department stores.
“Department store retailers like Marcus Clark &amp; Co., Waltons, Anthony Hordern &amp; Sons and Mark Foy’s ruled Sydney’s CBD up until mid-last century. In the CBD core alone there were around 18 department stores connected by Sydney’s network of trams.
“Fast forward to today and with retail vacancy at negligible levels, the requirement for larger floor space in excess of 2,000 sqm and significant growth in white collar employment retailers will now be forced to look outside the core of the CBD to the north at Circular Quay and south towards Central Station. The backbone of this retail renaissance is light rail, increasing connectivity between outlets and facilitating the necessary foot traffic to support new retailers” he continued.
Sydney’s transformation has already begun with construction of the light rail currently underway on George Street and other areas adjacent to the CBD. The light rail is being supplemented by the Sydney Metro project that will extend from Sydney’s North West, through the CBD and then out to the South Western corridor. Both projects are expected to open for initial operation in 2019.
Melbourne’s well-integrated tram system is already in operation but there is further development afoot. Currently the City Loop rail network is running at capacity, so to optimise the efficiency of CBD rail transport, the Metro Tunnel will traverse the City Loop, allowing more trains to run into, and out of the city. The project will incorporate five new underground stations, with two of these located in the CBD. Construction will take place between 2018 and 2026. 
In Queensland, a plan for a proposed $1.54 billion Brisbane Metro was revealed in January this year, while the Queensland government has labelled the Cross River Rail as its highest priority infrastructure project. Both rail projects are aimed at increasing overall CBD transport efficiencies, however, funding for both projects has not yet been finalised. 
In the Gold Coast, stage 1 of the light rail project has been completed, with stage 2 currently under construction. Stage 2 will connect the existing light rail network in the south to Helensvale station. 
In Perth, the Metro Area Express (MAX) is a proposed high capacity service running from the CBD to Mirrabooka in the north with the objective of reducing traffic congestion. Construction will commence in 2019 with completion estimated to occur in late 2022.
The reintroduction of light rail systems in Australia’s CBDs will not only alleviate congestion, it will facilitate the growth of retail precincts as the demand for amenity and retail sites increases.
“Over the past 5 years, we have witnessed the introduction of many offshore brands to our CBDs as the tastes of domestic consumers evolves. Brands such as Uniqlo, H&amp;M, Zara and Topshop are not asking for 150m of space, they’re asking for 1,500sqm or more, often over multiple floors” said Bate.
Nationally, investment volumes have risen swiftly in the 2016 calendar year to date and now sit at just under A$3.3 billion. Although this is still a long way off the volumes of 2015, investor demand for retail assets remains strong.
“The decision by institutions like Vicinity Centres and Blackstone to recycle capital has lifted overall transaction volumes,” said Lachlan MacGillivray, head of Retail Investment Services at Colliers International.
Shopping centre dynamics are more diverse, although it appears that across centre categories, rental growth was weakest in Perth.
Data through to 1Q16 suggests that shopping centre incentive levels have moved a little higher, particularly within the sub-regional category although the quantum of movement remains in the low single digits. 
Shopping centre cap rates compressed across all cities and categories on an annualised basis with the only exception being Perth’s regional centres where there was no movement over the year to 1Q16. Across centre categories cap rates are generally sharpest in Sydney in Melbourne while remaining higher in Perth and Adelaide.
“Market conditions also augur well for the retail sector more generally. Consumers will continue to benefit from record low interest rates as the RBA strives to support our economic transition from mining towards services. Additionally, discretionary spending will be supported by oil prices that are well below 2014 highs, even with the recent rally back towards the US$50 mark” he continued.
According to Andrew Johnston, national director of Retail Valuations at Colliers International, the national supply of retail floor area would increase from 429,000 sqm in2016 to a peak of just over 580,000 sqm in 2017. 
“This supply is concentrated to shopping centres and large format assets acrossNSW and Victoria. Overall retail supply levels taperfrom 2017 onward with 500,000 sqm, 153,000 sqm and 74,000 sqm being delivered in 2018, 2019 and 2020 respectively. Supplyis weighted toward shopping centres, with Queensland and NSW being the main recipients in 2018”.
Johnston went on to say that large format retail experienced some rental growth with the strongest annualised gains taking place in Sydney and Adelaide.
“Incentives over the year have remained broadly stable although there have been slight increases in Melbourne (+3%y/y) and Perth (+4%y/y). Large format cap rates have compressed further with the strongest activity taking place in Sydney” he said.
OUTLOOK
Despite some high profile corporate missteps occurring over the year, and some sluggish economic data releases, we caution from adopting a gloomy outlook for retail. Lower for longer interest rates and subdued fuel prices relative to 2014 will continue to support discretionary spending. 
Additionally the economic rotation toward services and a lower Australian dollar should support retail sales in the south eastern states and those areas exposed to the tourism sector. 
The spatial demand from international retailers together with CBD transport infrastructure development should lead to rental growth over time. On the investment side, the demand for assets remains high as evident in recent transactional activity. The key challenge looking forward is simply the lack of stock availability coming to market.
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Game changer light rail to breathe new life into CBD retail: Colliers

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Hoteliers the Grove family have bought back The Indian Ocean Hotel in Western Australia’s Scarborough from the receivers, shortly after it was put up for sale.
The family acquired it for an undisclosed sum, but it had been offered for about $18 million on a 7 percent yield when first put on the market more than a year ago, according to a report in The Australian Financial Review. 
The 59-room, 3.5-star hotel on Hastings Street in the city's north-western suburbs was being marketed by CBRE Hotels’ Ryan McGinnity and David Kennedy under instruction from the receivers and managers appointed, HLB Mann Judd (Insolvency WA). 
The marketing campaign closed on May 12.
The five-level, 59-room hotel includes Indi Bar and Bistro, and has hosted some of Perth’s best live music over the past two decades, including Rolling Stones, The Waifs, John Butler and Dave Hole.  
The hotel, built in 1972, was placed in the hands of receivers in April after the death of majority owner Bill Grove, said the AFR report. 
It was originally called the White Sands Hotel. The Grove family took over as managers in 1985 and renamed it the Indian Ocean Hotel in 1990.
Hotel owner Andrew Grove and CBRE’s selling agents declined comment to the AFR, but the paper cited a source close to the family as saying that "The property and business is now back in the hands of the family who have owned the property for over 30 years” and they are “excited to be in control of the business and property again”.
Located within the Metropolitan Redevelopment Authorities’ $57.4 million Scarborough Redevelopment Area, the Indian Ocean Hotel offers potential for future development, with a residential 160 zoning and additional special use as hotel. 
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Grove family buy back Indian Ocean Hotel in WA's Scarborough

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A standalone retail and residential property in Kensington on the north-west fringe of Melbourne’s CBD is up for auction with expectations of more than $850,000. 
The 513 Macaulay Road property comprises a solid brick shop and dwelling of 136 square metres on a 103 square metre site zoned Commercial 1 with frontage to Macaulay Road and rear access via La Nauze Lane. 
It will be auctioned on June 30 through Teska Carson. The listing agents are Anthony Choi and Fergus Evans.
The retail and upstairs components have the potential to be accessed separately providing the ability to create separate tenancies.
Evans said he expected strong interest from investors looking to add a city fringe asset to their portfolio, and from owner-occupier/investors looking to move into the area.
“With interest rates low and returns from other asset classes somewhat less attractive we are seeing the smaller investor and self-managed super funds enter the market in much higher numbers and it’s properties such as this one in Kensington that have been prominent in sales results,’’ Evans said.
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Shop and dwelling in Melbourne’s Kensington to go under hammer

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A cafe/eatery in Melbourne’s Mulgrave will go under the hammer at Burgess Rawson auction on June 29.
The <a href="https://www.burgessrawson.com.au/buying/VIC/East/Mulgrave/Retail/3P1317#.V2ale1fwzow" target="_blank">7/2 Stadium Circuit and Oval Concourse</a> shop has a building area of 257 sqm including mezzanine, with a capital intensive tenant fitout.
The tenant is on a secure 12-year lease plus options through to 2028.
The lease comes with fixed 4 percent increases and the lessee pays the usual outgoings.
The property includes dual alfresco areas and comes with an exclusive seven-day licensed business. 
Waverley Park is a Mirvac development with 1,400 dwellings, 3,500 residents and Hawthorn Football Club (AFL) corporate headquarters and training grounds.
Its rental income was $103,415 pa as at Nov 2016.
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Cafe in Melbourne's Mulgrave up for sale at Burgess Rawson auction

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Australia’s first commercial office tower made of timber is set for the Barangaroo development.
International House Sydney will be located at the gateway to Barangaroo on Sydney's Sussex Street.
It will be built by Lendlease.
It will be Lendleases’s third building constructed using these materials following Forte timber apartments in Melbourne and The Dock, a public library in Docklands.
The office tower over 7910 square metres has been designed by Tzannes Associates.
“The architecture of International House Sydney reflects a new form of beauty. Beyond shape and surface, it is ‘deep design’ renewing architecture’s role to serve the greater social purpose of lowering carbon emissions,” Alec Tzannes told The Urban Developer website.
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