Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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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Australia’s largest pension fund AustralianSuper has reportedly agreed to buy a 20% stake in King’s Cross Central for £200 million (A$396m) London.
AustralianSuper beat off competition from overseas sovereign wealth funds from the Middle East and investment groups in the Far East, Property Week revealed.
AustralianSuper has more than two million members and over $75 billion under management.
It is the second UK deal in two years following its purchase of a 50% stake in the Milton Keynes regional shopping centre for £270 million in 2013.
At 67 acres, King’s Cross Central is a large mixed-use development being developed since 2001.
On completion it will include Google’s new European head office. Argent, DHL and London and Continental Railways appointed Rothschild and GM Real Estate to sell the stake in late 2014, and it is believed the deal was agreed in the past few days.
Last year AustralianSuper signalled its intention to aggressively build a $10 billion property portfolio by 2016.
AustralianSuper head of property Jack McGougan currently manages just over $6 billion of real estate ­investments.
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jchancellor-FAypfDUnLy

AustralianSuper's $400 million King Cross, London deal

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Marrickville, Gorokan and Toukley are among the busiest of Sydney's cheapest suburbs, according to CoreLogic RP Data.
For houses, Marsden Park is the cheapest Sydney suburb, with a median price of $119,310. However, the suburb only saw seven homes sold in the past year. Far busier was Gorokan, with 241 houses sold in 2014. With a median house price of $306,991, it is the fourth cheapest suburb in Sydney.
<a href="https://www.realestate.com.au/property-house-nsw-gorokan-118545727" target="_blank">3 Bertha Street in Gorokan</a> sold for $310,000 last week.
<img src="/images/2015/02/09/1%20gorokan.jpg" alt="">
Above: 3 Bertha Street
The two bedroom house on a 550 square metre plot came with development approval for a duplex. The vendors paid $125,000 less when they purchased the home in 2007 for $185,000.
<a href="https://www.realestate.com.au/property-house-nsw-gorokan-118696967" target="_blank">56 Gilbert Avenue</a>, which was marketed towards first home buyers, sold for $300,000 in mid-January (pictured below).
<img src="/images/2015/02/09/2%20gorokan.jpg" alt="">
Above: 56 Gilbert Avenue
The three bedroom villa has been recently renovated. The vendors, who paid $225,000 for the home in 2009, used it as an investment property. It was advertised to rent at $315 per week in 2013.
Marrickville has the fifth-lowest median price of any suburb within 10 kilometres of the Sydney CBD. With 213 homes sold over the last year, it is also the busiest of the 10 cheapest Sydney inner-city suburbs (see table below).
HOUSES: Greater Sydney
<img src="/images/2015/01/22/rp-jan-22-one.jpg" alt="">
<img src="/images/2015/01/22/rp-jan-22-two.jpg" alt="">
HOUSES: &lt;10km from CBD
<img src="/images/2015/01/22/rp-jan-22-four.jpg" alt="">
Source: CoreLogic RP Data.
CoreLogic RP Data recorded Marrickville's 2014 median value as $892,297 for 2014.
<a href="https://www.realestate.com.au/property-house-nsw-marrickville-118559543" target="_blank">167 Sydenham Road in Marrickville</a> sold for $890,000 last week. The full brick, three bedroom house had been held by the vendors for almost 28 years – they paid $74,500 in 1987.
<img src="/images/2015/02/09/3%20marrickville.jpg" alt="">
Above: 167 Sydenham Road
In November last year, buyers paid $900,000 for a corner block two bedroom brick home at <a href="https://www.realestate.com.au/property-house-nsw-marrickville-118351459" target="_blank" style="line-height: 1.3em;">39 Gladstone Street in Marrickville.</a> The house was purchased by the vendors for $615,000 in 2008, with the home appreciating 46% in six years. 
<img src="/images/2015/02/09/4%20marrickville.jpg" alt="">
Above: 39 Gladstone Street
For units, Toukley in the Central Coast was one of the busiest of the cheaper outer suburbs. Toukley had a median of $265,887, making it the sixth cheapest Sydney suburb for units. This one sold for $259,000 in September.
<img src="/images/2015/02/13/toukley%20feb%2013%20one.jpg" alt="">
<a href="https://www.realestate.com.au/property-unit-nsw-toukley-117752435" target="_blank">2/39 Victoria Avenue in Toukley</a> (pictured above) is a single storey two bedroom unit with an enclosed sun room and a courtyard.
UNITS: Greater Sydney
<img src="/images/2015/01/22/rp-jan-22-one.jpg" alt="">
<img src="/images/2015/01/22/rp-jan-22-three.jpg" alt="">
UNITS: Under 10 kilometres from the CBD 
<img src="/images/2015/01/22/rp-jan-22-five.jpg" alt="">
For inner city units, the busiest of the 10 cheapest suburbs was again Marrickville, with 268 units sold last year. The suburb is the 10th cheapest in the Sydney inner-city for units, with a median sale price of $508,813.
For that price, a buyer might get an apartment like one at <a href="https://www.realestate.com.au/property-apartment-nsw-marrickville-118620451" target="_blank">9 George Street</a> (pictured below), which sold for $509,000 last month.
<img src="/images/2015/02/13/marrickville%20feb%2013%20one.jpg" alt="">
The one bedroom offering was one of multiple renovated apartments at the 9 George Street complex offered.
<a href="https://www.realestate.com.au/property-apartment-nsw-marrickville-117382003" target="_blank">14/416 Marrickville Road</a> (pictured below) was another one bedroom unit that sold around the median price, for $507,500.
<img src="/images/2015/02/13/marrickville-feb-13-two.jpg" alt="">
The apartment at the rear of its block last traded at $196,000 in 2005.
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jrichardson-uRX5hFdKfN

The busiest of Sydney's affordable suburbs: CoreLogic

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Unemployment remains a concern, but perhaps not when it comes to house price growth, according to recent Macquarie Wealth Management research.
They note counter-intuitively that a rise in unemployment typically sees house prices move higher.
"Whilst unemployment is a key factor to be cognisant of for housing demand, the below table indicates that prior cycles exhibiting a strong rise in unemployment typically illicit a policy response from the RBA (i.e. rate cuts) which sees house prices actually increase as unemployment rises," the January report to clients noted.
<img src="/images/2015/02/13/housing-cycle-feb-13-one.jpg" alt="">
It looked at five recent cyclical employment downturns going back to the 1980s.
"In the 1990 recession the unemployment rate increased ~180bps to 10.7%, but house prices increased ~8% in the following 12 months factoring a ~200bps decline in the cash rate. 
A similar scenario was seen post the GFC," the report noted.
Rising unemployment is likely heighten risks of mortgage delinquencies, according to Genworth Mortgage Insurance Australia.
Ellie Comerford, chief executive of Genworth in Australia, expects expects its loss ratios to climb from its current 19 per cent to 25 to 30 per cent for the full 2015 financial year.
Ms Comerford's comments to the Australian Financial Review came after Genworth posted a $172.7 million statutory net profit for the six months to December, due primarily to lower than expected claims and a strong housing market. The result was a 52 per cent improvement to the prior corresponding period
Genworth's share price sits around $4.20, up 60 per cent since its public debut in May, compared with the 6 per cent gains of the benchmark S&amp;P/ASX200 Index.
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Unemployment won't stop house price rises: Macquarie Wealth

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The International Monetary Fund (IMF) started a global house price index last year. 
They recently released a set of charts detailing their findings on world housing prices.
They continue to track house prices around the world. Their chart with annual percent change is based at Q2, 2014. It puts Australia fourth highest given a 7.4% gain.
Click to open in new windows: 
<a href="/news"> </a><a href="https://www.imf.org/external/research/housing/images/globalhousepriceindex_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/globalhousepriceindex_600px.jpg" alt="chart of house price index"></a><a href="https://www.imf.org/external/research/housing/images/housepricesaroundtheworld_lg.jpg" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.1599998474121px; line-height: 1.3em;"><img src="https://www.imf.org/external/research/housing/images/housepricesaroundtheworld_600px.jpg" alt="chart of house prices around the world"></a>
Credit growth Around the world:
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<a href="/news"> </a><center><a href="https://www.imf.org/external/research/housing/images/creditgrowth_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/creditgrowth.jpg" alt="chart of credit growth around the world"> </a></center>
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House price-to-income ratio:
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<a href="/news"> </a><center><a href="https://www.imf.org/external/research/housing/images/pricetoincome_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/pricetoincome.jpg" alt="chart of house price-to-income ratio"> </a></center>
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House price to rent ratio:
<div><center><a href="https://www.imf.org/external/research/housing/images/pricetorent_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/pricetorent.jpg" alt="chart of house price-to-rent ratio"></a></center></div>
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Australia ranks fourth in IMF's global house price index

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GUEST OBSERVATION
You know Australia’s in trouble when the Reserve Bank cuts interest rates.
Last week, the central bank did precisely that, in belated recognition of the <a href="https://www.afr.com/p/national/national_income_recession_already_2sLhoU9EtfoC0g0M5xvujI" target="_blank">income recession</a> that has struck. Gross domestic income (GDI) fell by 0.3% in the June quarter of 2014, followed by a further 0.4% slump in the September quarter.
The RBA has cut its 2015 GDP growth estimate as well, by 0.25%, predicting a 1.75%–2.75% range.
In 2012, I <a href="https://theconversation.com/buckle-up-australia-recession-is-coming-7950" target="_blank">predicted</a> an Australian recession, albeit as a “delayed tsunami” effect of the global financial crisis of 2008–12. However, some <a href="https://au.finance.yahoo.com/news/economist-expects-recession-2015-034208840" target="_blank">bank economists</a> since late last year have <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-12-17/australia-out-of-luck-odds-of-recession-rise/5972732" target="_blank">declared</a> there is a recession in the making in 2015.
Welcome to the post-industrial economy. Fortress Australia is long gone; the automotive industry is evanescing before our eyes; while textiles, footwear and clothing barely exist on these shores.
Steel, once the linchpin of Australia’s heavy industries, is a shadow of its former self. Battered by fierce competition from China and India, Australian steel tonnage output didn’t even crack the <a href="https://www.statista.com/statistics/271979/the-largest-steel-producers-worldwide-ranked-by-production-volume/" target="_blank">top 20 world rankings</a> in 2013.
As everyone knows, the main game in Western Australia and Queensland is mining, mining and mining. Meanwhile, the sucker-fish, located predominantly in Sydney and Melbourne, comprising the <a href="https://www.rooseveltinstitute.org/new-roosevelt/fire-sector" target="_blank">finance, insurance and real estate (FIRE) industries</a>, gorge themselves on the vast swathes of export dollars produced by coal and iron ore.
But for how long?
From hero to zero?
Throughout the last 12 years, Australia has produced world-beating results. Australia’s <a href="https://www.tradingeconomics.com/australia/gdp" target="_blank">GDP doubled between 2007 and 2013</a>. It is the world’s 12th-ranked economy, a remarkable feat for a population comprising a mere 24 million people (and <a href="https://en.wikipedia.org/wiki/Cats_in_Australia" target="_blank">20.7 million cats</a>, apparently). Nationally, unemployment is low. In 2013 and 2014, <a href="https://www.smh.com.au/business/the-economy/property-makes-australians-the-world8217s-richest-says-credit-suisse-20141014-1163ip" target="_blank">Australians were the world’s richest</a>, thanks to the property boom, with every man, woman and child worth an average of $A258,000.
And oil prices are so low that they’re better than any tax cut any miserly government could ever give you in its wildest dreams.
Everything’s going swimmingly, isn’t it? Where’s the party?
But Australia is also facing an <a href="https://www.theage.com.au/business/the-economy/doing-more-with-less-as-incomes-shrink-20141205-120so4" target="_blank">income recession</a>. Real <a href="https://www.smh.com.au/federal-politics/political-news/real-wages-growth-worst-in-17-years-20140521-38p5j" target="_blank">household disposable income</a> is <a href="https://www.adelaidereview.com.au/commentary/article/falling-real-wages" target="_blank">falling</a>, exacerbated by the tumbling Australian dollar. Ominously, the world may be about to experience a Great Deflation.
Agriculture and manufacturing – the mainstays of Australian employment from federation until the 1990s – have been displaced by service sector industries. These largely feed off the revenues of a resources sector whose exports dwarf all others. But even iron ore export prices have halved in the past year, and there could be <a href="https://www.miningaustralia.com.au/news/could-iron-ore-drop-to-%24us30-a-tonne" target="_blank">worse to come</a>. There is not much point in Australia boosting its iron ore output if no one wants to buy it. Just ask the Soviets what they did with their surplus steel. Komrade (they dumped it in the west, to save you looking it up).
Unfortunately for us, we like to party hard and we didn’t invest all the enormous benefits of the boom in the terms of trade during the 2000s. We spent it on tax breaks. Which we then spent. On property. And Chinese consumer goods.
And speaking of being dwarfed, Australia’s Future Fund – designed to fund public service pensions and the odd politician – is paltry by comparison with <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-01-09/all-norwegians-become-millionaire-shareholders-in-world27s-big/5191480" target="_blank">Norway’s</a>, which ranks third in the world with almost US$1 trillion in assets.
By contrast, Australia ranks 13th globally (as it does in most things, except cricket), with a mere <a href="https://www.futurefund.gov.au/" target="_blank">A$109 billion</a> at its disposal. Or about 2.1 years of Commonwealth deficits, roughly.
Article continues on the next page. Please click below.
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The Great Deflation
This week, China reported its <a href="https://www.wsj.com/articles/china-inflation-drops-to-five-year-low-in-january-1423533186" target="_blank">inflation figures</a> and the numbers are troubling. Year-on-year domestic demand has weakened considerably. Moreover, in January, the US economy saw its consumer-price index (CPI) fall to its lowest level since bottoming out during the Great Recession of 2009.
Deflation means prices are down. One type of deflation can be positive, as it emerges from gains in technology, efficiency and scale, coupled with cheaper labour and energy.
But too much of the wrong kind of deflation – where inflation is negative – leads to long-term unemployment, reduced demand and low, zero or negative growth. Exhibit A: Japan. <a href="https://af.reuters.com/article/commoditiesNews/idAFL1N0VJ0BN20150210?pageNumber=2&amp;amp;virtualBrandChannel=0" target="_blank">Two decades of deflation</a>.
The main reason price deflation is occurring is due to weak demand. This is due partly to a reduction in the gross money supply, and partly as a by-product of lower wages.
Money supply evaporated – temporarily – as credit markets froze in 2008. As governments poured liquidity back into financial markets in 2008–09, credit cautiously returned, but growth was non-existent or hesitant throughout most of the developed world. Millions of jobs vanished during the Great Recession, and the jobs that eventually returned <a href="https://www.theguardian.com/business/2015/jan/30/british-wage-slump-post-financial-crisis-uk" target="_blank">paid much less</a> than they had just a few years earlier.
In fact, the US has reportedly regained all the jobs it lost during the recession. With one hitch: these jobs pay <a href="https://www.latimes.com/business/la-fi-income-inequality-20140812-story">23% less</a>.
Now, this scenario has some resonance in Australia. The 2007–13 period saw Australian wages rise much faster than their OECD counterparts. But in 2014, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-02-19/abs-figures-show-annual-wages-growth-slowest-on-record/5269480" target="_blank">wages hit a brick wall</a>, barely matching inflation. Yes, even miners saw lower wage growth. And, judging by their trade magazines, neither white-collar nor blue-collar resources industry workers are too optimistic about the future.
Oh Eurozone crisis: we’ve missed you most of all
If you thought the IMF and European Central Bank (ECB) had muddled successfully through the 2011–12 eurozone crisis, think again. Exhibit B: The ECB’s January 2015 quantitative easing program, injecting €60 billion per month into the eurozone economy.
Sounds impressive. But it isn’t. What it will do is simply refinance the banking sector, which is now beginning to pay back the three-year Longer-Term Refinancing Operation (LTRO) funds it borrowed during the crisis. Over 500 eurozone banks accepted more than €1 trillion during the crisis.
Now the ECB’s LTROs are maturing. As of January 2015, banks were <a href="https://www.reuters.com/article/2015/01/16/ecb-policy-idUSL6N0UU3V720150116" target="_blank">due to repay up to €196 billion</a> on LTROs by the end of February. But they still owe nearly €900 billion.
Consequently, the ECB’s QE program will only keep liquidity flowing back to the banking sector, as it replaces old LTROs with new QE.
The elephant in the room is not Greece. It’s inflation – or lack of it, to be precise. Eurozone inflation is running at -0.2%, a far cry from its 2% target. Not to put too fine a point on it, but -0.2% is not inflation. I’ve met inflation. And that’s not inflation.
The clear objective of the ECB’s €1.2 trillion QE program is to reflate the eurozone economies and ensure sufficient bank liquidity. But it also has a secondary objective: currency manipulation. 18 months of the Federal Reserve’s QE 3, which concluded in late 2014, injected $US85 billion per month into the American economy, pumping up its GDP growth figures, manipulating its currency and, coincidentally, depreciating China’s massive stash of US bonds.
How has the ECB responded to this? By engaging in its own currency manipulation scheme. This has sent the euro <a href="https://au.finance.yahoo.com/echarts?s=EURUSD%3DX#symbol=EURUSD=X;range=1y" target="_blank">below US$1.15</a>, a far cry from its US$1.45 rate of mid-2011. With the euro closer to parity with the US dollar, eurozone global exports can at least remain competitive.
Why does any of this matter to Australia? First, the EU is Australia’s largest source of foreign direct investment. Second, the currency power-play between New York, Tokyo and Frankfurt has hurt Australian productivity and exports, even as the Reserve Bank <a href="https://www.smh.com.au/business/mining-and-resources/australia-accused-of-manipulating-australian-dollar-to-save-iron-ore-miners-20150204-135jzu" target="_blank">tries to play</a> this poker game as well. Although the dizzy heights of an above-parity Australian dollar are a long-forgotten dream, currency depreciation in Europe, North America and Asia has contributed to the loss of Australian industries, such as the automotive sector. Equally, the Australian dollar, even at US$0.70, is not competitive enough to substitute for a lack of productivity.
The ducks are all lined up. A perfect storm approaches.
Welcome to capitalism. We hope you enjoy your stay.
<img src="https://counter.theconversation.edu.au/content/37355/count.gif" alt="The Conversation" width="1" height="1">Remy Davison is Jean Monnet Chair in Politics and Economics at Monash University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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You know Australia’s in trouble when the Reserve Bank cuts interest rates: Remy Davison

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GUEST OBSERVATION
Following the recent cut in interest rates, we can see that there will be a pickup in residential construction particularly in Melbourne, Sydney and to a lesser extent in Brisbane, that will feed the appetite of the property investor who makes up more than 50% of the purchase of these apartments.
We think that self-managed super funds, as well as mum and dad investors, will be heightened with the fall in interest rates. Affordable housing, lower interest rates and higher job confidence will tempt first home buyers.
The concern is that outside of Sydney the economic indicators are not as strong, which permeates into confidence.
We are of the opinion that although interest rates have been lowered, it will not push another increase in property prices above circa 4% on the back of home purchasers being mindful of the price.
From the rental point of view we expect to see vacancy rates in the major capital cities to tick up as more of the investor stock comes on the market, which means a good opportunity for tenants.
As far as the government looking to regulate property investment, we don’t think this will take place as the major economic driver is the construction boom, which the government will not wish to disrupt.
We will see a multi-tiered market with Sydney continuing to grow with strong economic conditions coupled with job security to a lesser extent in Brisbane and in Melbourne.
Concern lies with Perth where there is a declining state economy due to job losses in the mining industry and the housing marketing beginning wane.
Malcolm Gunning is the president of the <a href="https://www.reinsw.com.au/imis15_Prod/web" target="_blank">REINSW </a>and the principal of <a href="https://gunningcommercial.com.au/" target="_blank">Gunning Commercial</a>.
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Outside of Sydney the economic indicators are not as strong: Malcolm Gunning

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The first Zara Home store has opened in Australia.
The Spanish retailer launched its first Australian store at Highpoint Shopping Centre, in Melbourne's inner west.
The <a href="https://www.smh.com.au/business/property/zara-moves-home-to-highpoint-20150211-13c3wo" target="_blank">Sydney Morning Herald</a> suggests that more Zara Home stores may be coming, with Sydney's Macquarie Centre a likely spot for the first New South Wales store.
Zara Home sells furnishing and homewares, and will apparently offer two main branded collections per year. It follows the Australian arrival of the business's fashion arm, Zara, which has set up shop in Melbourne's Bourke Street arcade.
Zara is just one of many international "fast fashion" retailers (so-called because of their high turnover of new products) to hit Australia in hopes of expanding their global reach.
<a href="/expert-insights/investing/zara-gap-h-m-and-uniqlo-announced-for-macquarie-centre-north-ryde">H&amp;M, Zara, Gap and UNIQLO </a>have all expanded their Australian businesses or approached the Australian market for the first time in the last few years while J.Crew is <a href="/expert-insights/investing/american-retailer-j-crew-tipped-to-arrive-in-australia">rumoured to be launching here soon</a>. 
Highpoint Shopping Centre has undergone significant refurbishments in the past three years. The centre is partially owned by the Besen family.
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Zara Home opens at Melbourne's Highpoint

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Australian Securities Exchange-listed apartment developer Finbar Group has sold an office building in Perth to Singapore stock exchange-listed Sim Lian Group, which is buying the property through a wholly owned property trust.
The Gateway Building in Victoria Park, south-west of Perth’s CBD sold for $72.8 million, with the sale price representing a yield of 8.48%.
Finbar Group said the price was consistent with the building’s current external valuation and carrying book value. It expects to realise $20 million in cash from the sale after the repayment of the building’s finance and minority joint venture interests. Finbar Group owned 69% of the property.
“The sale of the Gateway Building represents a timely disposal opportunity where we can seek to deploy more funds into our core business of residential apartment development which has a very robust pipeline of exciting and large scale projects,” Finbar managing director Darren Pateman said in a statement.
Finbar received approval in December for the development of a $120 million mixed-use development including 118 apartments and more than 2,000 square metres of commercial tenancies in South Perth.
The company reported the Gateway Building, which it completed building in July 2010, accounted for 54% of its rental income for the first half of 2014. Rental income contributed 5% to Finbar’s overall earnings, with the majority of its earnings deriving from apartment developments.
The market for office property sales in Perth was sluggish in 2014, with Savills research showing the value of office property sales was down 81% compared with the previous year. Only 16 office buildings changed hands in the city in 2014, down from the five year average of 35, Savills found.
Savills estimates yields for Perth CBD office property at December 2014 were in the range of 7.5% to 8.75% for A Grade buildings, and 8.75% and 10.25% for secondary grade buildings.
CBRE’s research shows there are high vacancy rates and leasing incentives in the Perth office market. The agent expects these challenging conditions for landlords to continue during 2015 with 155,805 square metres of new office space expected to come to market in the second half of 2015.
The Gateway Building has a net lettable area of 12,813 square metres and is 99% leased to retail and office tenants. The major tenant is listed engineering company Monadelphous Group, which has its head office in the building.
The sale is expected to settle in March 2015. 
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Finbar Group sells Gateway Building in Victoria Park, Perth

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GUEST OBSERVATION
The OECD’s <a href="https://www.oecd.org/economy/growth/going-for-growth-australia-2015.pdf" target="_blank">Going for Growth report</a> released this week is a good reminder of why Tony Abbott wants to be remembered as “the infrastructure Prime Minister”.
The OECD argues addressing infrastructure service shortfalls will help productivity performance and sustainable growth, and in the 2014-15 Australian federal budget, <a href="https://www.budget.gov.au/2014-15/content/glossy/infrastructure/html/index.htm" target="_blank">spending on infrastructure</a> was planned to increase substantially, compared to the last budget of the Rudd government.
The focus carried through to the Brisbane G20 meeting. It saw a commitment to use infrastructure spending, along with other measures such as free trade agreements, as a lever to improve productivity and help deliver the additional 2% of GDP growth over five years targeted by the G20.
How is Australia performing?
Australian contributions to the G20 target, in terms of infrastructure investment, are outlined in the <a href="https://g20.org/wp-content/uploads/2014/12/g20_comprehensive_growth_strategy_australia.pdf" target="_blank">Comprehensive Growth Strategy</a>.
Two proposals are highlighted. First, there is a commitment  “to achieve better project prioritisation, selection and coordination by providing greater transparency through cost benefit analysis of major projects and improving the operation of Infrastructure Australia (the body that assesses major infrastructure projects). Rigorous appraisal processes will help ensure that high-quality projects that create the most benefit will be prioritised.”
Things have not started well. For example, The 2014-15 budget provides funding for 36 major named infrastructure projects but, as a <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201415/Infrastructure">report</a> by the Australian Parliamentary Library notes, only four have been assessed by Infrastructure Australia, and only seven appear anywhere on the priority list.
Sydney’s WestConnex motorway is one of the infrastructure projects named in the budget but not prioritised by Infrastructure Australia. The federal commitment comprises a grant of A$1.5 billion to the New South Wales government, and a A$2 billion concessional loan. In December 2014 the New South Wales Auditor-General reported that the government’s Major Projects Assurance Framework had not been implemented and that, as a consequence, there were deficiencies in the analysis of the risks, cost and benefits of the project. Clearly this falls short of the G20 commitment.
Asset recycling
The second proposal is the <a href="https://theconversation.com/asset-recycling-no-dream-for-hockey-but-efficiency-boost-likely-28802">asset recycling initiative</a>. State governments that sell assets will receive 15% of the net sale proceeds as a grant from the Commonwealth, provided the funds are reinvested in infrastructure. Proposals must pass evaluation and approval before 1 July 2016, with construction to commence before 1 July 2019.
The Australian Competition and Consumer Commission this week <a href="https://www.afr.com/p/national/accc_warns_on_asset_recycling_XfHInVjskCpfCIfCm5AdEP" target="_blank">flagged concerns</a> about the scheme, warning of the risk of governments taking action that could lessen competition due to the lure of incentive payments.
At A$5 billion, the initiative accounts for only 10% of federal infrastructure spending commitments over the next ten years. However, the government forecast the incentives it provides will leverage an additional A$33 billion of infrastructure investment, making a major contribution to the proposed boost in infrastructure spending.
Asset privatisation was a central issue in the recent Queensland election. Of the estimated A$37 billion proceeds from the sale of energy and port assets, the Newman government proposed to allocate A$3.4 billion to a “cost of living” fund and A$25 billion to pay off state debt. New infrastructure investment of A$8.6 billion would attract a Commonwealth recycling incentive of A$1.3 billion, making A$9.9 billion in total.
Queensland voters rejected these proposals. Should the same result emerge from the New South Wales election next month the asset recycling initiative will effectively lapse.
An alternative approach
Where investment in long-lived productive infrastructure is involved, attaching the label <a href="https://www.dailytelegraph.com.au/news/nsw/prime-minister-tony-abbotts-speech-from-the-national-press-club-in-canberra-on-february-2/story-fni0cx12-1227204983604?nk=2ddb61facd9133e0d55d3bac5bbf4287" target="_blank">“intergenerational theft”</a> to government borrowing is clearly misleading – the generations who benefit from the investment also service the debt.
If the asset recycling initiative fails to meet its targets, alternatives are possible. The first requirement would be to live up to the commitment made to the G20 for stringent and transparent project evaluation by Infrastructure Australia. Second, think carefully about ways to improve efficiency in state-owned assets. Then, given that the yield on 21-year bonds is currently less than 3%, the government could pursue its infrastructure agenda by borrowing long-term and investing through the states in the same way as in the past.
Implementation of this strategy would require a more mature political discussion about fiscal deficits, debt, and long-lived infrastructure. Relying on slogans like “debt and deficit disaster” is unlikely to achieve positive outcomes.
Graeme Wells University Associate, School of Economics and Finance at University of Tasmania
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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PM’s infrastructure plan failing growth and cost-benefit goals: Graeme Wells

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US, Singaporean and Chinese investors dominated Australia’s offshore commercial property investment market in 2014 spending nearly 71% of the more than $5 billion in foreign investment in Australia, according to Savills Australia.
The total, comprising more than $4 billion worth of office transactions, $399 million worth of industrial transactions and $519 million worth of retail property transactions, continues the trend of above average spending following the record $5.9 billion invested in the year to June 2014. 
Nearly 82% of the 2014 money <a href="/expert-insights/investing/foreign-investors-behind-a-third-of-2014-australian-office-purchases-savills">was spent on office property</a>.
Savills’ national head of research, Tony Crabb, said collectively Asian countries accounted for more inward investment than all other foreign buyers at $2.7 billion including China $1.13 billion, Singapore $1.16 billion and Malaysia $243 million.
He said the foreign play accounted for 22% of the more than $24 billion worth of commercial property transacted nationally in the 12 months to December.
Savills’ managing director – cross border investments, Paul Craig, said all indications were that Australia could see another $5 billion plus year given the fall in the value of the Australian dollar, Australia’s low interest rates, and the relaxation of investment restrictions flowing from Australia’s new Free Trade Agreement with China.
"There seems little doubt that the lower Australian dollar will further encourage the very significant level of foreign investment we have seen over the last few years. In addition there is ample reason to suggest that Chinese investment in Australia may reach another level following changes to investment rules discussed in the FTA," Craig said before today's threshold announcement aimed at agricultural land
"While we are yet to see  the detail it seems clear that rules governing private Chinese investment will encourage even greater levels of investment and that could mean the continuation of what has been a white-hot foreign investment market in Australia in recent times.’’
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