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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Kulangoor’s big cow has been officially handed over to new owners for the first time in 14 years.
The icon is among the 150 ‘BIG’ things scattered across Australia that make up some of the country's most loved attractions, from the Big Banana in Coffs Harbour to the big boxing crocodile at Humpty Doo.
The spotlight has been thrown on the Big Cow with its sale being confirmed earlier in the week.
ONE Agency Noosa principal Grant Baker said a successful marketing campaign was the driving force behind the sale.
“The team at ONE Agency Noosa has worked diligently to create an outcome where both buyers and sellers are happy,” Grant said.
The property was first designed as the Country World tourist attraction. It had a working dairy farm with Ayrshire cows. Visitors could learn firsthand how dairy farms were run.
The property was last sold in 2000 and was run as The Outdoor Centre for years. Owners then transformed it into the Nambour Regional Training Centre.
Since then the training centre has been leasing out its facilities to companies across Australia. Tenants include marines and mining and disability industries.  
Over the past 14 years the big cow has became synonymous with the property. Sculpted by Hugh Anderson, who also did the big bulls at Rockhampton, the big cow is an exact replica of an Ayrshire cow, only seven times bigger.
The big cow also became home to Sunshine Coast’s first sea and air rescue helicopter, with the old helipad on site.
The complex has 70 parking spaces and has easy access off and on the Bruce Highway. 
Picture: Stuart Edwards/<a class="mw-mmv-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank" style="line-height: 1.3em;">CC BY-SA 3.0</a>.
 
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owisniewski-RiYLqnXfKH

Queensland’s Big Cow icon sold after owners decide to moo-ve on

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GUEST OBSERVATION
People are pretty comfortable with the idea of residential property investment. 
Most people (I’m guessing) have lived in a house or a unit before; many have also rented them.  So it’s a known quantity and having a few houses in our portfolio makes us feel pretty good.
Now, maybe you’ve been to realestate.com.au on the odd occasion, and you’ve noticed the ‘commercial’ tab on the far right.  A quick search in your local area brings up a plethora of offices, retail shops, warehouses, hotels and even commercial farms, many with the words ‘outstanding opportunity’. 
So is commercial property investment something within the reach of all property investors?  How does it compare to investing in residential property?  Should you be looking to diversify into commercial? 
Well the attractiveness and suitability of any investment boils down to risk vs return.  So let’s compare the two asset classes:
<ul>
<li>Returns</li>
</ul>
Show me the money, as they say.  Here, commercial has the upper hand with returns usually around 6-8%, and sometimes significantly higher for the real 'unicorns'. Residential returns are a little lower at 4-5%, but as you’ll see, less risky and cheaper.
<ul>
<li>Vacancy</li>
</ul>
One of the biggest risks in property is the vacancy rate.  How long can you afford to make repayments and pay outgoings on a property receiving no income? 
Residential property has lower vacancy rates than commercial.  A house or unit may stand vacant for a few weeks before it’s rented, whereas a warehouse, a shop or an office might be vacant for months or years at a time. 
The commercial leasing sector tends to be more affected by the economic climate - they’ll lay off staff and consolidate space when times are tough, causing a contraction in demand for space, whereas individuals still need somewhere to live.  That tends to make the residential property sector a bit more stable.
<ul>
<li>Rental / Lease agreements</li>
</ul>
In the residential world, striking a deal with a tenant is pretty straightforward with much of the common terms (or boilerplate) outlined in a mandated Residential Tenancies Agreement.  All you need to consider are your variables like lease term, rental amount, bond, etc. 
In the commercial world, there’s no statutory authority to tell you how to reach agreement - it’s all up for negotiation (there are conventions though).  Commercial leases run to dozens of pages and include things like incentives paid by the lessor to put towards fit out, and make good clauses, specifying if and how the tenant should return the tenancy when they vacate.  You’ll need specialist property lawyers or a tenant advisor to help with this process.
<ul>
<li>Cost</li>
</ul>
Square metre for square metre, commercial real estate is often cheaper than residential property (unless you’re talking about CBD office space north of $700 a square metre per annum) but because you’re buying more square metres per property, commercial is usually dearer in real terms.  And you have outgoings such as electricity, security, and base building maintenance to consider, however these are passed on to the tenant in some way (net or gross lease). 
In commercial, it’s easier to pass on costs if utility prices climb, but harder to do so with residential property.
<ul>
<li>Maintenance</li>
</ul>
A dripping tap or faulty ceiling fan in a residential property is an annoyance to a tenant and something you should get fixed promptly to keep your tenant happy.  However in the commercial world, tenants tend to be more demanding, particularly if the fault or shortcoming is costing them money - for example the air conditioning breaking down in a shopping centre in summer. 
For this reason, you’ll need a professional property manager with agreements in place with services contractors like air conditioning technicians, plumbers, electricians, security contractors, and who knows the language of that world.
<ul>
<li>So which is better?</li>
</ul>
You may get sick of hearing me say this, but it really comes down to your personal financial strategy, your financial situation, and your appetite for risk &amp; return. 
Before investing in property or any asset class, know what you’re getting into, retain good advice and don’t overcommit yourself. 
For many investors, commercial property represents ‘the next level’ where the scale is greater, the sums are larger, and the returns are higher.
Owen Davis is the principal of <a href="https://dfgproperty.com.au/" target="_blank">DFG Property</a>, a full service property management, finance &amp; sales firm based in Sydney. 
Owen has over 15 years experience in property financing, real estate and property management.
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OwenDavis-dWJoq5LscE

Residential or commercial - which should I invest in?

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<h3>GUEST OBSERVATION</h3>
Labor’s state election victory in Victoria has fatally undermined Melbourne’s most controversial tunnel, the now-doomed <a href="https://www.linkingmelbourne.vic.gov.au/east-west-link" target="_blank">East-West Link</a>, with new Premier Daniel Andrews pledging to rip up the contracts for the project.
His decision is a victory for anyone who values 21st-century urban thinking over the outdated car-first mentality.
It’s also a financial relief, because – as the project’s back story shows – the East-West Link was always more about politics than economics.
<h3>Courting cars</h3>
For many years, the only groups calling for a tunnel to link Melbourne’s Eastern and Citylink freeways were the <a href="https://www.racv.com.au/wps/wcm/connect/racv/Internet/Primary/home" target="_blank">RAC of Victoria</a> and <a href="https://www.vicroads.vic.gov.au/" target="_blank">VicRoads</a>. The problem was that the tunnel never made economic sense when it was just a freight project, yet most attention in the transport planning system was on public transport, where demand was growing rapidly. The East-West tunnel needed a large dose of cars to justify it.
Enter Tony Abbott, who <a href="https://www.smh.com.au/federal-politics/federal-election-2013/tollfree-eastwest-link-preferable-tony-abbott-20130902-2t0ff" target="_blank">pledged A$1.5 billion</a> before last year’s <a href="https://theconversation.com/au/topics/federal-election-2013">federal election</a> for the East-West plan, arguing that Australians love their cars and public transport was not in his federal knitting.
The East-West project grew in concept and soon became a massive capital cost, with the price tag for the whole plan, including the western extension to Melbourne’s port, threatening to <a href="https://www.theage.com.au/victoria/state-budget-2014-major-road-and-rail-projects-worth-24b-to-transform-melbourne-20140506-zr5mj">hit A$10 billion</a> and swamp the transport budget.
Meanwhile, in the waning days of the first <a href="https://www.infrastructureaustralia.gov.au" target="_blank">Infrastructure Australia</a> (on which I was privileged to serve for four years), it became obvious that the East-West tunnel and Sydney’s <a href="https://www.westconnex.com.au" target="_blank">WestConnex</a> would never be subject to the scrutiny of our process. They were to be seen as purely political projects and the case for their going ahead would depend on their popularity, not on value for money.
<h3>Why tunnelling Melbourne was a bad idea</h3>
The old shibboleth that building roads is vital for improving the economy is no longer true. Economic growth has divorced itself from car dependence (my new book with <a href="https://theconversation.com/profiles/jeff-kenworthy-15708" target="_blank">Jeff Kenworthy</a>, <a href="https://www.bibliovault.org/BV.book.epl?ISBN=9781610914635" target="_blank">The End of Automobile Dependence</a>, traces the fall of the empire of car-based planning).
Growth in the Victorian and Australian economies now depends on the growth in “knowledge economy” jobs. These jobs at the creative, productive, innovative edge of our economy are now firmly enmeshed in the dense centres of our cities.
As the US urban economists Ed Glaeser and Richard Florida have <a href="https://blog.ted.com/2012/02/29/cities-ed-glaeser-at-ted2012" target="_blank">shown</a>, the knowledge economy depends on close interactions between creative people and those who can deliver projects. This work requires intensive spaces in cities, which in turn need intensive modes of transport to enable them. This means that rail, cycling and walking are critical to the knowledge economy. Although heavily into digital communications, knowledge economy workers need face-to-face contact and are now shifting back into central and inner city locations to optimise this process.
In contrast, cars and trucks are dispersive modes of transport, and are needed for the consumption economy. These jobs are important too, but are essentially based in the dispersed spaces of the suburbs. These jobs are not the ones we are seeking as much as those in the knowledge economy, because they do not drive productivity growth as effectively.
It is no wonder that around the world, we are seeing <a href="https://www.scirp.org/journal/PaperInformation.aspx?PaperID=38472#.VH1FI2SUdgA" target="_parent">declining car use per capita and growing public transport use</a>, as well as a widespread return to formerly neglected inner cities.
The six most walkable US cities have <a href="https://urbanful.org/2014/06/20/walkable-cities/" target="_blank">38% higher gross domestic product than the national average</a>. Cities now compete on new measures such as <a href="https://www.nytimes.com/2012/05/27/opinion/sunday/now-coveted-a-walkable-convenient-place?_r=0" target="_blank">walkability</a> and <a href="https://www.livablecities.org/blog/value-rankings-and-meaning-livability" target="_blank">livability</a>. Governments everywhere are aiming to build quality rail projects and make city centres more human in scale. Even <a href="https://www.canberratimes.com.au/act-news/canberras-780m-light-rail-line-gets-final-go-ahead-business-case-to-be-released-20140915-10gzr3">Canberra</a> and <a href="https://www.parracity.nsw.gov.au/work/business_in_parramatta/strategy/solving_transport_problems/light_rail_for_western_sydney">Paramatta</a> are joining in, as they work out how to build light rail.
Melbourne has one of the most attractive city centres in the world for knowledge economy jobs. It needs to ensure that this is not lost by tipping more cars into its walkable centre. Instead it needs to encourage commuting by rail, bike and on foot.
<h3>Change in the air</h3>
Victoria’s people have now spoken. The East-West Link will be scrapped, and should be replaced by more sensible transport planning. Melbourne does need to improve east-west access for people and freight, but it should not be beyond us to find some solutions that do not break the bank.
Clearly there are plans for upgrading rail access through several proposed rail projects, including the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-11-19/melbourne-rail-a-better-deal-than-east-west-toll-planners-say/5902268" target="_blank">original Melbourne Metro plan</a>, and the <a href="https://ptv.vic.gov.au/assets/PTV/PTV%20docs/Melbourne-Airport/Melbourne-Airport-Rail-Link-Study-Overview.pdf" target="_parent">Airport Rail Link</a>. <a href="https://ptv.vic.gov.au/projects/rail-projects/doncaster-rail-study" target="_blank">Doncaster Rail</a> should remain on the table, hopefully not for another 100 years, as it is a simple and direct way to move passengers east-west.
The freight system seems to be amenable to much simpler concepts than the East-West Tunnel, like those <a href="https://habitattrustmelbourne.org.au" target="_blank">presented by the Habitat Trust</a>, using several inland rail interchange facilities.
The <a href="https://www.propertyobserver.com.au/https://www.thefifthestate.com.au/spinifex/bays-precinct-five-principles-emerge-from-summit/69895">same principles</a> should lead New South Wales to modify the Connex West project, especially where it spills traffic into Sydney’s central and inner areas. Such traffic “solutions” actually harm the economy of inner urban areas, burying investment opportunities under bitumen for parking and road-widening, and congesting areas that already have too many cars.
The public can sense that we have to update the way we travel and how we build cities so they are not car-dependent. The road-building brigade needs to take a deep breath and see that their plans are old-fashioned. Perhaps the legacy of the East-West Tunnel will be that such projects will never again be foisted on the Australian public.
<img src="https://counter.theconversation.edu.au/content/34914/count.gif" alt="The Conversation" width="1" height="1">Peter Newman is professor of sustainability at Curtin University.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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po-LsXgBTHBmX

The East-West Link is dead – a victory for 21st-century thinking

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It’s not just the first time buyers who are eligible for government grants and assistance for purchasing property.
While prospective home owners that have previously owned a property will find themselves needing to jump through more hurdles, there are some available cash grants on the market.
Property Observer notes that not every state and territory has a grant or benefit for property buyers other than first home buyers and they have been omitted where this is the case.
<h3>ACT</h3>
In the ACT, there’s no grant but there is a concession available – the Home Buyer Concession Scheme (HBCS) – that allows those purchasing a brand new home or residential vacant land to have their duty charged at a concessional rate. This was once extended to established properties, but this ended in September 2012.
Currently, this applies to properties until 31 December 2014 with a total gross income threshold of $160,000. The property also counts if it has been “substantially renovated”.
The <a href="https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-duty-concession/1-July-2014-31-December-2014" target="_blank">ACT Revenue Office</a> also notes that property worth $540,000 or more is not eligible, with land having an upper threshold limit of $292,800.
<h3>NSW</h3>
The New South Wales New Home Grant Scheme is a $5,000 grant that has been available since 1 July 2012.
It applies to new homes, off the plan purchases and vacant land that you can build a home on.
The value of the new home must not be higher than $650,000, or for land, $450,000, to achieve the grant. 
<h3>NT</h3>
Up to $7,000 is available under the Principal Place of Residence Rebate in the Northern Territory. The concession is a stamp duty rebate.
This is only achievable by those purchasing a new home or land to build a home and the property can also have been “substantially renovated”.
<h3>SA</h3>
In South Australia, buyers aged 60 or more who are purchasing or building a new home may be eligible for an $8,500 Seniors Housing Grant. This has been available since 1 July 2014 and is set to continue until 30 June 2016.
A property value upper threshold limit is currently at $450,000.
For those not in their golden years, an Off the plan Stamp Duty Concession is potentially available for those buying a new or substantially refurbished apartment within select areas.  
The partial concession is available until 30 June 2016. You can read the amounts available on the <a href="https://www.revenuesa.sa.gov.au/grants-and-concessions/off-the-plan-concesson" target="_blank">RevenueSA portal.</a>
<h3>VIC</h3>
In Victoria, those purchasing off the plan are eligible for a concession that is deducted from the contract price of the cost of construction or refurbishment.
A concession is also available for those buying house and land packages for the construction of a new house, townhouse, apartment or unit and applies to a single lot development or a multi lot development.
Pensioners are <a href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/8F5F78F86966B677CA2575D0002A87C518E490D796850F8ECA2575C1008187C7" target="_blank">also available for a stamp duty concession</a>.
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jduke-EHk3XBmHkn

Grants for non first timers: Buying new property

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Harry Li, director of the McDonald Real Estate’s Springvale office in Victoria was REIV’s winner of the award for senior auctioneer of the year in 2014 and a finalist in the Australia and New Zealand auctioneering event held recently in New Zealand. 
He spoke to Zoe Fielding about what it takes to be a top auctioneer.
Harry Li (pictured above) started out as a real estate rookie in Victoria about a decade ago.
After four years in property sales, Li – now a director of McDonald Real Estate Springvale – turned his sights towards auctioneering.
“I felt that was a natural progression,” he says. “At the time the company did not have a full time auctioneer so I thought I would do the training.”
Basic auctioneer training teaches the foundations needed to run an auction sales campaign and the technical skills to call an auction.
Some auctioneers simply do the basics but Li goes much further. Over the years he has taken one-on-one training from other auctioneers, and sought guidance and tips from people with more experience. But the most important element of Li’s skills development is practice.
“Time is what it takes,” Li says. “I practice with a partner four times a week. It’s like going to the gym. If you want to build your muscles you have to train regularly.”
The pair conduct mock auctions on a weekly basis whereas Li says many auctioneers only train once a week or only practice their craft when they conduct auctions on a Saturday.
It’s the details that make a good auctioneer stand out from the crowd, Li says.
In addition to the technical skills, such as knowing the rules, keeping track of the numbers, and using the right type of language, an auctioneer’s general persona is important. The auctioneer must be likeable and “real”.
“You don’t have to be an aggressive person. Some people are more passive and that’s OK but you have to be able to read the play of the auction. You have to be flexible enough to handle the scenarios that come up,” Li says.
An auctioneer must know when to take large or small bids and how far to push the bidders.
The auctioneer’s performance can have a major effect on how much more a property sells for, regardless of whether it is snapped up under the hammer or passes in and sells during later negotiations.
“If the auctioneer gets on the wrong side of a buyer it can cost the seller a lot,” Li says. “It’s an art form and that plays a part when it comes to the final result.”
Li’s hard work has paid off. He was winner of the Real Estate Institute of Victoria’s award for senior auctioneer of the year in October and was a finalist in the Real Estate Institute of Australia’s auctioneering competition held in New Zealand.
Unsurprisingly, he is a big advocate of auctions, although he says they are not appropriate in all markets or for all homes. In a slow market, or when buyers have access to a large amount of accurate data about the property’s value, which might be the case for identical units in a large block for example, an auction may not be the best option.
“If it’s a highly competitive area and there’s good demand for properties an auction is the way to go,” Li says.
Competitive bidding can boost the price that the property achieves, pushing buyers to spend the maximum amount they can, or risk losing the auction to another more committed bidder.
Auctions also create a sense of urgency among buyers with auction day acting as a deadline by which they must make a decision on the property. In a private treaty sale, the process may be more drawn out.
The seller in an auction is protected by the reserve price, which means the property will not sell unless the pre-agreed level is reached.
After the hammer falls, the sale is final and unconditional. This allows the vendor to set specific sale terms, such as the settlement date, and prevents a buyer from backing out after the deal has been agreed. This is typically a benefit to sellers but it can limit the number of potential buyers as some people wish to purchase subject to finance, which is not an option with an auction.
Another potential downside of an auction is that engaging a specialist auctioneer comes with an additional cost, but if the campaign and auction are run well, the extra cost may be recouped through a higher sales price.
{qtube vid:=2l2YoUdC4eg}
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zfielding-GvX3Uq9KTa

Agent profile: Harry Li - what it takes to be a top auctioneer

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We know property in the western suburbs of Sydney has reached an all-time high.
Many of my family and friends, as well as clients, are selling their old home investments. They all know that their investments have reached an all-time high and think now the wisest move is to sell.
Renovation works are becoming too costly and older homes in Sydney's western suburbs are also becoming more and more untenantable. They can also see mandatory changes looming due to the dangers around asbestos and old led paint, therefore feel it is time to sell out. Frankly I don't blame them, most property managers found in these areas aren't aware of the dangers and possible claims against the landlord.
Investing is all about numbers and frankly, the numbers just don’t add up presently in terms of rents v cost to purchase.
This however is not the premise for this article. This article is about the future costs I strongly believe will be incurred by many property investors in these suburbs and in the near future.
Watch this space, because what the average real estate agent doesn’t know is alarming. Or maybe they do know, but just don’t tell you, since they just want to keep your management. Whatever the case, in my humble opinion, it will cost you a lot of money.
<a href="/expert-insights/welcome-to-the-asbestos-belt-of-sydney">As I wrote</a> in Property Observer recently:
“You can just imagine a tour guide calling out through the loudspeaker, ladies and gentlemen, please put your masks on as we are about to enter the asbestos belt of Sydney. To our right we see 40 year old/plus homes riddled with asbestos and to our left…more homes riddled with the same and led paint."
For now, if investors that own properties in the “asbestos belt” of Sydney, believe that we are far removed from <a href="https://www.cincinnati.com/story/news/politics/2014/10/23/poisoned-kids-forces-landlord-fine-pricy-clean/17779535/" target="_blank">what is taking place in the US</a>. Well let me once again say; it is only a matter of time before we follow suit.
I am one to believe there will be civil action against many landlords within three to five years. I further believe the “asbestos belt” will undergo a major possibly mandatory transformation within five to 10 years.
This may not only happen in Sydney alone, as a matter of fact, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-11-11/mr-fluffy-asbestos-home-owners-opt-in-to-act-government-buyback/5882940" target="_blank">the ACT have already commenced a similar program</a> to what I have been writing about for years. The worst case scenario for the owner is; for the value of the property to decrease to land value only and a further cost to demolish the old home made of fibrous sheeting. Or for the landlord to be caught up in a legal suit due to health issues, claimed by the tenants.
My stance on this matter, as once again written in Property Observer:
I can envisage a couple of scenarios occurring soon. One which will place real estate agencies in the firing line when tenants take action against the landlord for health issues, a dangerous position to be in. The second which can occur, is where agents fall short of their regulatory requirements to disclose possible hazards due to ignorance and/or neglect.
Can I say, ignorance from agents is no defence against any claim made by the tenant. Furthermore, blatant neglect to disclose hazards in the homes also by agents and all because they want to keep the management and don’t want to lose the landlord, is in my opinion criminal.
Further to this I see that the smarter agencies will soon be offloading managements belonging to greedy landlords that simply do not have an ounce of care nor intentions to rectify these hazards. To these agencies I say well done in advance.
What to look for when buying a home as an investment in Sydney Australia:
<ul>
<li>If it’s a fibro home and built pre 1986, you can be assured it has asbestos. 
</li>
<li>If it has been cladded, then it only shields the outer skin: what about the inside where tenants and trades people drill holes, affix nails and have exposed wall lining? Secure yourself on all sides. 
</li>
<li>Check the roof sheeting. Older homes generally have asbestos roof sheeting, again if affixed prior to 1986. 
</li>
<li>Ask the agent or agency that is selling the home to confirm when the home was built even if it is a brick home. Asbestos is found in the lining of the wet areas, bathrooms, kitchens and laundries. 
</li>
<li>Make sure you obtain a pest and building inspection report before you commit to a purchase. An outlay of a few hundred dollars may save you tens of thousands of dollars. 
</li>
<li>If you have or if you are considering purchasing an old home in Sydney's Western suburbs, be sure you have a strong property management team on your side. This should be a team that can protect you and the tenant from future issues, and can establish clear tenancy guidelines; to protect you from legal action and to protect the tenants from injury and harm.</li>
</ul>
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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ealmedia-arK4DBYLjS

Why I wouldn't buy an old home Sydney's western suburbs

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Australia's close links to Asia, the fastest growing part of the world economy, was reason to be confident of the economy's future strengths, according to Philip Lowe, Deputy Governor of the Reserve Bank of Australia.
He noted exports to Asia are up by around 30% over the past five years in his address to the recent Australian Business Economists' annual dinner.
Speaking on factors affecting the national psyche and weigh on the national economic mood, Lowe stressed the Australian economy does have the foundations for a successful and prosperous future.
"How well we take advantage of those foundations depends increasingly on investment not in physical capital, but in human capital."
"I sense a degree of nervousness about our future among some commentators who sometimes ask: what happens to Australia after this mining boom is over?; how can Australian businesses compete internationally given our high costs?; and, where will the jobs come from in the future?
"These are all good questions," he said adding uncertainty was normal. 
"Given this, it is important that we guard against the possibility that this uncertainty mutates into chronic pessimism – that is, for it to become normal for us to think that our prospects are limited.
"If this were to become our normal mindset, then we would be well on the way to finding ourselves in the very world that we feared.
"We certainly have a number of strong foundations that provide the basis for this optimism. The question is how well we can use those foundations over the years ahead," adding he wanted to focus on the people-to-people relationship.
"Currently, around 8% of the Australian population was born in east and south-east Asia or India (Graph 1 below).
"This is up from less than 1% of the population around the time that I was born.
"In comparison, in the United States, only around 3½% of the population was born in Asia and for most European countries the figure is below 2%."
Graph 1
<a href="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph1.gif" target="_blank" title="Link, opening in a new window, to larger image."><img src="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph1-small.gif" alt="Graph 1: Population Born in Asia" title="Graph 1: Population Born in Asia" width="373" height="322"></a>  <a class="displayNone" href="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph1.gif" target="_blank" title="Link, opening in a new window, to larger image.">Click to view larger</a>
"There are also large numbers of students from Asia studying in Australia," Lowe said.
"Currently there are around 150,000 Chinese student enrolments at Australian educational institutions, more than double the number a decade ago (Graph 2 below).
"There are also large numbers of students from India, South Korea, Malaysia, Thailand, Vietnam and Singapore.
"All up, there are more than a quarter of a million Asian students studying here.
"In time, these students will add to the already vast network of our alumni across the region."
Graph 2
<a href="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph2.gif" target="_blank" title="Link, opening in a new window, to larger image."><img src="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph2-small.gif" alt="Graph 2: Chinese Student Enrolments" title="Graph 2: Chinese Student Enrolments" width="373" height="311"></a>  <a class="displayNone" href="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph2.gif" target="_blank" title="Link, opening in a new window, to larger image.">Click to view larger</a>
"The strong people-to-people linkages can also be seen in the broader data on international short-term arrivals (Graph 3 below)," he noted.
"At the moment, more than 250,000 citizens from Asia are travelling to Australia every month, with arrivals from China reaching nearly 80,000 a month.
"As is evident from the graph, these figures have grown very strongly over recent years.
"There has, of course, also been very strong growth in the number of Australians travelling to Asia for both business and leisure."
Graph 3
<a href="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph3.gif" target="_blank" title="Link, opening in a new window, to larger image."><img src="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph3-small.gif" alt="Graph 3: Short-term Overseas Arrivals to Australia" title="Graph 3: Short-term Overseas Arrivals to Australia" width="374" height="288"></a>  <a class="displayNone" href="https://www.rba.gov.au/speeches/2014/images/sp-dg-251114-graph3.gif" target="_blank" title="Link, opening in a new window, to larger image.">Click to view larger</a>
"Taken together, this deep and growing people-to-people engagement is an increasingly important national asset," he said.
"It helps us better understand the most dynamic part of the global economy.
"It promotes goodwill and can help identify cross-border business opportunities.
"Some of the students studying here will hopefully become ‘champions’ for our country when they return home.
"Others will remain here and use their knowledge and relationships in their country of birth to build new and stronger business ventures between our countries," he noted in the aim of achieving a highly productive, globally competitive economy that is operating close to, or at, full employment.
"Such an economy would be characterised by: a national currency with sustainably high purchasing power; sustainably high real wages; and sustainably high real returns on capital.
"High purchasing power and high wages mean that for each hour that we work we are able to buy more goods and services.
"And high returns mean that savers get rewarded when they take a risk or defer their spending and save for the future," Lowe noted.
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jchancellor-FAypfDUnLy

Vast alumni across Asia is one of Australia's economic strengths: RBA

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The eagerly awaited <a href="https://www.aph.gov.au/~/media/02%20Parliamentary%20Business/24%20Committees/243%20Reps%20Committees/Economics/44p/Real%20Estate/Report/Front.pdf" target="_blank" title="Report on Foreign Investment in Residential Real Estate">report on foreign investment in residential real estate</a> was finally released last week and yes, the House of Representative committee has done a reasonable job with its findings.
Although with closer scrutiny, many questions remain both unclear and without a definitive answer.
The Chair’s forward starts with a predictable warm and fuzzy moment: “Buying into the Australian Dream doesn’t come cheap.” 
Only to proceed to the most amazing faux pas: “There is no simple explanation for the decline in housing affordability – although lack of land supply (a government responsibility), underdevelopment (a government responsibility), state planning laws and regulations (a government responsibility), local council red tape (a government responsibility) and stamp duty and tax arrangements (a government responsibility) likely all play a part.”
 What a fascinating admission that surely warrants another inquiry into these frank admissions.
“According to Foreign Investment Review Board (FIRB) statistics, in the first nine months of this financial year, FIRB approved foreign investment into residential property of around $24.8 billion, 44% higher than the $17.2 billion approved during all of 2012/13. Much of this investment is concentrated in the Melbourne and Sydney markets. Most of the increase is attributable to proposed investment in new property, which at $19.3 billion for the first 9 months of 2013/14 is 79% higher than 2012/13. The total number of established property approvals for the first 9 months of 2013/14 is 5,755 compared to 5,101 for 2012/13.”
Then the clanger: “First, there is no accurate or timely data that tracks foreign investment in residential real estate. No-one really knows how much foreign investment there is in residential real estate, nor where the investment comes from.” 
That being the case then how can the House Economics Committee find that foreign investment is not causing distortions in the Australian housing sector – when by their own admission they concede they have no idea how much real estate has been sold to foreign buyers?
Then of course: “During the course of the inquiry, it came to light that no court action has been taken by FIRB since 2006. During the entire Rudd-Gillard-Rudd government, not one divestment order was issued, which means that not one government sale of illegally acquired property was made. This compares with 17 divestment orders between 2003 to 2007 when foreign investment in residential real estate was at much lower levels.”
They quite conveniently failed to mention that for some strange reason the Rudd government abolished FIRB approvals to foreign investment during the course of the global financial crisis. At the time it was most unclear as to what was exactly happening as decisions based on FIRB appeared at best chaotic. How can you then prosecute when the Rudd government made this totally legal?
Of course the bull in the china shop (no pun intended) is those many loopholes that exist to overseas buyers in that it is very easy for a family member who resides overseas to simply transfer monies into an Australian bank account. The family member here goes out and buys a property in their name and when the overseas family member gains Australian residency they simply pay the stamp duty to transfer the property into their own name.
Alternatively, attaining Australian residency can take a few years so it is much easier to take up New Zealand residency – an almost immediate process. New Zealanders are permitted to buy all forms of Australian real estate so it is very easy to beat the system. It is just a shame that the Senate Inquiry missed many of the existing trap doors that remain open in the Australian property industry today.
Of course it is just a mere coincidence that the Chinese government requested a bipartisan arrangement with the Australian government to process the identities of all Chinese buyers who purchase Australian real estate. Cue the establishment of a national register of land title which still requires approval from the states and territories – who are yet to be consulted on this measure.
Then of course the recently announced Free Trade Agreement with China allows any Chinese national full access to acquire any commercial or agricultural property up to $1 billion. 
I’m really struggling to get my head around this.
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robertsimeon-hRNTwJyXkQ

Foreign buyers inquiry leaves many questions unanswered

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<a href="https://www.smartcompany.com.au/growth/economy/35550-scandinavian-fashion-brand-cos-to-open-in-australia">Scandinavian brand COS</a> opened its flagship store on Friday to long lines in Melbourne; proving Aussie consumers are still hungry to be served up fast fashion from the big overseas players.
On Friday afternoon at the flagship store in Melbourne’s newly refurbished The Strand arcade, a line of eager shoppers waited patiently as staff served customers inside at full capacity.
The brand, short for Collection of Style, sits under the H&amp;M Group umbrella, which <a href="https://www.smartcompany.com.au/marketing/sales/41400-h-m-set-for-australian-roll-out-as-its-first-local-store-launches-tomorrow">launched in Australia</a> in April to incredible demand. COS is at a higher price point to sister brand H&amp;M and appeals largely to a work-wear market with its simplistic Scandinavian design aesthetic.
Retail Doctor Group director Brian Walker told SmartCompany COS is a “very on trend” brand in the fast fashion category.
“There’s definitely an appetite here for it,” says Walker.
Walker says the strong launch of the brand illustrates the “social buzz” created by a big retail opening, pushed along by a strong social media campaign.
“There’s no doubt we always love something new in the retail mix,” says Walker, who believes the hype will “die down” as the brand settles into the retail landscape.
“It will find its place, like Zara and Topshop, as they all do,” says Walker.
Walker says brands such Witchery and Country Road will not be too threatened by the arrival of an international brand in the higher price point category.
“It is a broad category, so competition can actually be very healthy,” says Walker.
Walker is tipping another big year for Australian fashion retail: “At the end of the day, 2015 will be at least as big as 2014.”
He says the flood of international retailers to Aussie shores will not be slowing down, with brands like River Island and Sephora set to open next year.
“The other side of it though is that it is a finite market, we will definitely see some closures domestically,” he says.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Long lines at COS opening proves appetite for overseas fashion brands remains

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The US arm of collapsed fast food chain Pie Face could be in for a costly legal battle, with a New York-based building company initiating legal action against the company, which it alleges wrongfully terminated a contract and failed to pay bills of up to US$360,000 (A$425,129).
Building company AT Concept has launched a claim against the Pie Face store near Hell’s Kitchen as well as parent company Pie Face Holdings in the Supreme Court of the State of New York, <a href="https://www.theaustralian.com.au/business/pie-face-pursued-for-building-debts-in-the-us/story-e6frg8zx-1227140189885" target="_blank">according to News Corp</a>.
In its claim, AT Concept said it was engaged by Pie Face Holdings to construct the store in 2013 for an agreed price of US$303,560, with the bills for the project later climbing to $US360,000 due to new demands from Pie Face management.
But AT Concept alleges Pie Face breached its contract by failing to pay for the completed work and later terminating the contract.
“At the time the plaintiff’s contract was wrongfully terminated, it had completed work in the amount of US$313,831.35, no part of which had been paid, except the amount of US$194,069.08, thereby leaving a balance due and owing of US$119,762.27,” the AT Concept claim states.
The building firm is hoping to recover this amount through the court action, as well as legal costs and fees.
According to News Corp, Pie Face has denied the claims. Jirsch Sutherland, the administrators of the Australian Pie Face business, declined to comment when contacted by SmartCompany this morning.
The lawsuit follows the quiet closure of six out of seven Pie Face stores in New York City in October, just weeks before the Australian business plunged into administration.
Administrator Sule Arnautovic of Jirsch Sutherland <a href="https://www.smartcompany.com.au/growth/franchising/44816-pie-face-company-stores-in-melbourne-close-ahead-of-meeting-with-franchisees-next-week" target="_blank">said on Friday</a> that 20 Pie Face stores have closed as part of the voluntary administration process, with 130 part-time employees losing their jobs.
A meeting of Pie Face franchisees, management and administrators is expected to take place this week, while a meeting of creditors is scheduled for Wednesday.
Macquarie has emerged as the one of the troubled chain’s secured creditors and last week appointed Ferrier Hodgson partners Steve Sherman and Peter Gothard as receivers to a number of key Pie Face assets.
A spokesperson for Ferrier Hodgson said this morning Sherman and Gothard have been appointed as receivers for “cash at bank as well as shares held in Pie Face Inc, as well as director loan accounts” in Pie Face Holdings.
However, the spokesperson says Ferrier Hodgson will not have any involvement in determining if a Deed of Company Arrangement will be presented to Pie Face creditors.
“This is a matter for the voluntary administrators and creditors generally,” the spokesperson says.
<a href="https://www.smh.com.au/business/retail/how-pie-face-cooked-its-own-goose-20141128-11vbpq" target="_blank">Fairfax reports</a> Ferrier Hodgson has been appointed as receivers to control the agreement between Pie Face and high-profile US casino developer Steve Wynn, who made a $15 million investment in Pie Face’s US operations in 2012.
SmartCompany has contacted Wynn but is yet to receive a response and has been unable to contact AT Concept.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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