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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GUEST OBSERVATION
Victorians will soon go to the polls to decide who will be responsible for the management of the state for the next four years. Voters are confronted with many issues on which they must pass judgement, with roads, railways and ports all prominent in the debate. But what are the key characteristics of the Victorian economy?
Economic modelling at Victoria University’s Centre of Policy Studies tells us about the types of jobs Victorians can expect to be doing over the next few years. The Victorian economy employs around 2.9 million people. In line with growth in both the population and the economy, this is set to increase by around 300,000 people by 2020.
<h3>Which industries are winning</h3>
In Victoria, as in Australia as a whole, the vast majority of jobs are in the service industries. This is a diverse group of industries including (but not limited to) retail trade, health and social assistance, professional and technical services, transport and warehousing and public administration and safety. The non-service industries – agriculture, mining, manufacturing, utilities and construction – comprise just below 23% of jobs in Victoria. For the remainder of this decade, the proportion of jobs in service industries will increase only slightly, to almost 78% of jobs by 2020.
At a more detailed level, greater change is revealed. As the construction phase of the mining boom draws to an end, employment in the construction industry will fall from its present level of 8.5% of jobs to just 7% of jobs in 2020. This partly reflects the transitory impact the mining boom has had on the construction sector. The “release” of many construction workers into the economy over the next couple of years could be a boon to major government-backed infrastructure projects.
Construction is the only sector in which employment is forecast to fall. Manufacturing, agriculture and transport and warehousing are forecast to expand, more than compensating for the fall in construction activity. These sectors have a similar skills profile to construction, employing relatively large proportions of workers with no post-school qualifications or Certificate I-IV level qualifications.
<h3>Manufacturing surprise</h3>
The positive forecast for manufacturing may seem surprising, given the high-profile announcements of closures of the last motor vehicle manufacturing plants in Victoria. Manufacturing in Victoria employs around 270,000 people, of which 10% work in the motor vehicle and parts sector.
On the whole, manufacturing is a very trade-exposed activity. Products are either exported (for example, processed food products, wine and pharmaceuticals) or they compete against imports in the domestic market (for example, textiles, pharmaceuticals, motor vehicles and various types of appliances). Because of this, movements in the exchange rate have a very significant impact on manufacturing. Throughout the “boom” years, with the exchange rate very high, manufacturing has been uncompetitive, a phenomenon known as “Dutch Disease”. Motor vehicle manufacturing has been a conspicuous casualty.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/65351/area14mp/image-20141124-19612-16ii7uc.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/65351/width668/image-20141124-19612-16ii7uc.png" alt=""></a>
As the boom unwinds, the effects of Dutch Disease will also unwind. A large fall in the Australian dollar will revive the competitiveness of manufacturing, more than compensating for the loss of the motor vehicle plants. Export-oriented sectors like agriculture and education will also benefit from a fall in the Australian dollar.
The professional and technical services sector is forecast to expand the most, gaining 44,000 jobs by 2020. This sector includes activities such as legal and accounting services, architectural, engineering and technical services, and computer services.
Almost half of all people working in professional and technical services hold a bachelor degree or higher qualification. By 2020, this is estimated to have grown to 53% of people working in the sector. In Victoria as a whole, 28% of people employed hold at least a bachelor degree.
Another significant source of employment growth is the health and social assistance sector. Although only <a href="https://theconversation.com/australias-g20-growth-challenge-protecting-our-standard-of-living-33837" target="_blank">weak growth is forecast for domestic incomes</a>, leading to weak growth in domestic demand, health and social assistance is a significant expenditure item for older Australians. While the average household spends just over 5% of their budget on medical care and health expenses, households where the reference person is aged over 65 spend almost 10%. Government spending on health care will also increase as the population ages.
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
<h3>State of the regions</h3>
Melbourne accounts for 75% of employment in Victoria. Two-thirds of growth in Melbourne will be concentrated in five sectors: professional and technical services, manufacturing, health and social assistance, transport and warehousing, and education and training.
Differences in the underlying structures of regional economies mean that overall performance is varied.
For example, in Barwon, an area including the regional city of Geelong, the manufacturing sector has a relatively large representation of motor vehicle manufacturing. As a result, Barwon’s manufacturing sector is forecast to grow more slowly than the state average, and Barwon is forecast to be the slowest-growing regional economy. However, for the reasons given above, growth is still positive in Barwon manufacturing.
Strong forecast growth in the agriculture sector is the main contributor to growth in several regional economies. In the Wimmera, Western Districts, the Mallee, Goulbourn, East Gippsland, Gippsland and Ovens-Murray, growth in agriculture will contribute between 20% and 50% of regional employment growth.
In the Wimmera, the Mallee and the Western Districts, the agriculture sector currently accounts for a fifth of jobs. However, the Wimmera and the Western Districts are the regions with the highest forecast growth rates, while the Mallee is one of the slowest. Although all agricultural economies, the nature of agriculture in these regions is quite different. The strongly growing agricultural activities sheep, beef, grains and dairy are well represented in the Wimmera and Western Districts. However, Mallee agriculture includes a sizable portion of fruit growing, an activity with a relatively low growth forecast.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/65326/area14mp/image-20141124-19627-10m4ak0.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/65326/width668/image-20141124-19627-10m4ak0.png" alt=""></a>
Agriculture is relatively less important in the economies of the Central Highlands (including Ballarat) and Loddon (including Bendigo). While agriculture will account for around 10% of employment growth in these regions, health, education and manufacturing are forecast to be of greater significance, accounting for around 40% of growth in employment.
<img src="https://counter.theconversation.edu.au/content/33831/count.gif" alt="The Conversation" width="1" height="1">Janine Dixon is senior research fellow at <a href="https://www.vu.edu.au/" target="_blank" style="line-height: 1.3em;">Victoria University</a>.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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JanineDixon-cHemc6fRVX

Victoria votes: Where will the growth and jobs of the future be?

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Are you a vertical or horizontal analysis type?
Most would answer that they are not sure given they apply a number of metrics whilst attempting to draw a conclusion on a particular subject. Real estate is a classic example; there are so many suggested formulas that can be applied to draw a conclusion, yet there is no stand-out determination process.
I was asked this week: What is the best method within the real estate industry to better understand what exactly what is going on? I was also asked: Do I look at the markets from a vertical or horizontal position? 
The answer to that would be both. On a weekly basis I look at the stock number movements and the <a href="https://www.rwm.com.au/news/" target="_blank" title="weekly sales activity.">weekly sales activity.</a> Unlike the share market which closely watches the market capitalisation from its All Ordinaries Index, the real estate market is an entirely different beast and offers no decisive measures or methodology.
The residential and commercial investor stampede has been unprecedented in 2013 and 2014 prompting many to call this a property ‘bubble’. One should ask the question, if the ‘bubble’ theorists were investing in real estate would they still refer to this as a ‘bubble’. Of course not because they are simply commentators, not participants and there is a striking difference between the two. 
The investors are looking at the markets overall from a vertical position (which also encompasses their entire investment portfolio) whilst the commentators have adopted a horizontal position concerned only at what’s immediately before them.
To put these theories into practice one must apply what I call the <a href="https://www.abc.net.au/science/features/whyisitso/" target="_blank">Professor Julius Sumner Miller</a> analogy – “Why is it so?” Firstly, are the Australian real estate markets weaker or stronger post global financial crisis (GFC)? The answer to that is that the markets overall were much stronger pre-GFC, although for some strange reason this point is entirely missed in the debate (thanks to the horizontal observation). We need to remember that prior to the GFC, the Australian economy was basking in an unprecedented 20 plus years of economic growth.
Next, in the “why is it so?” analogy, trying to understand why the household and the investment markets bear no resemblance to what is happening in the property markets. In particular the Reserve Bank, which is actually now quite blasé with its outlook, especially when commenting on the Australian real estate markets. Why aren’t households trading-up to take full advantage of the historical low cash rates?
Look no further than the latest <a href="https://www.rba.gov.au/publications/smp/2014/nov/pdf/dom-eco-cond.pdf" target="_blank" title="Quarterly Statement on Monetary Policy ">Quarterly Statement on Monetary Policy</a>: “The forecast for output had not materially changed. GDP growth was still expected to be below trend over 2014/15, before gradually picking up to an above trend pace towards the end of 2016.”
It’s all very well to borrow more and upgrade the family home given record low rates, so what’s stopping the markets from jumping-in?
Look no further than annual wage growth, which is presently at the slowest rate on record. It’s all very well to increase the debt ratios in the present environment (horizontal analysis) but when one applies the vertical analysis there are severe headwinds ahead when rates start to rise again, which looks like 2016/2017.
The Reserve Bank pointed out in another one of their papers recently: “Nominal labour income has grown at an average annual rate of 2.7% over the past two years, compared with a decade average of 6.2%. And the widespread expectation is that wage growth will remain subdued for a time.”
Another clue is the rising rate of household borrowers who have preferred to pay back their loans via the interest-only option, which is not a positive sign for when the cash rate starts heading back to that pre-GFC thingummy called ‘normality’.
So this might go part of the way into trying to explain this thing called a ‘bubble’ – I prefer to call it a burp (due mainly to a lot of external wind).
On that basis we can expect to see the cash rate coming down further in 2015, only to (hopefully) see it start increasing late in 2015 to early-2016, as a best case scenario.  Watch annual wage growth statistics as they become available given this is an obvious trigger for increased action in the housing markets. For those on the interest-only option, you still have the best part of 12 to 18 months to strategise your best options going forward, history tells us it is not simply a case of 'who dares wins'.
So to answer (or should that be update) my preferred options when analysing the real estate markets: I am a confirmed vertical observer.
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robertsimeon-hRNTwJyXkQ

What's the best method to understand the real estate market?

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Australian food franchise Pie Face has collapsed into voluntary administration.
In a statement released to SmartCompany, the Pie Face Group confirmed Jirsch Sutherland has been appointed as administrators.
However, Pie Face said it is “business as usual” as the administrators conduct a review of the chain’s operations.
“The move comes as part of a wider company review, which will see the company focus on supporting the growth of its franchise-operated stores as well as the wholesale business,” Pie Face said.
“The international businesses are not affected”.
A spokesperson for Pie Face confirmed there are currently 70 Pie Face franchises across Australia, although the Pie Face website lists 78 outlets, including 15 in the Melbourne CBD and 20 in the Sydney CBD.
There are Pie Face stores in all states and territories, except Tasmania, South Australia and the Northern Territory, although South Australians can purchase its pies in On the Run convenience stores.
The collapse comes after Pie Face <a href="/expert-insights/investing/pie-face-quietly-closes-up-new-york-shops">quietly closed six of its seven stores in New York City</a> last month. While Pie Face has previously attempted to expand into India and New Zealand without much obvious traction, the chain is also believed to have agreements to enter South Korea and the Philippines.
The chain also became embroiled in a legal battle with a former franchisee <a href="https://www.smartcompany.com.au/legal/41452-pie-face-in-legal-action-as-former-franchisee-seeks-800-000-for-misleading-conduct" target="_blank">earlier this year</a>.
Former franchisee Prit Dutta sued Pie Face for $800,000 in February, alleging the pie chain was misleading and deceptive when communicating the expected returns for its franchise stores.
The lawsuit followed reports in 2013 that around 50 Pie Face franchises were up for sale, although founder Wayne Homschek <a href="https://www.smartcompany.com.au/growth/economy/32003-pie-face-founder-fights-back-against-loss-making-accusations" target="_blank">denied the reports to SmartCompany at the time</a>, saying the claims were “totally blown … out of proportion”.
Jason Gehrke, executive director of the Franchise Advisory Centre, said he believes some stores in the Pie Face network are company-owned and in some cases, company-owned stores can “be a drag on a franchisor’s resources if they are not part of a conscious growth strategy”.
Gehrke says Pie Face franchisees will need to be aware that a voluntary administration does not relieve them of the obligations in their franchise agreement.
“They will still have to pay loyalties, maintain supply agreements and so forth,” he says.
Gehrke says an administration can spell bad news for franchisees as it can “adversely affect the level of support available to franchises if the administrators opt to make any head office staff redundant”.
It’s also an issue when head office staff are busy assisting administrators, which is time they would otherwise be spending supporting the franchisees. 
But he says the administration of Pie Face may present a new business prospect for any interested buyers.
“I think this represents an opportunity for an existing franchisor or a group of motivated existing Pie Face franchisees to move quickly to acquire a brand that has some significant traction in the market,” Gehrke says.
SmartCompany contacted Jirsch Sutherland but did not receive a response prior to publication.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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ekeating-PWvazjYE25

Pie Face bakery chain collapses into administration

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GUEST OBSERVATION
Last week brought the latest instalment in the continuing Australian financial planning industry saga. Senators Jacqui Lambie and Ricky Muir blocked the Abbott government’s <a href="https://www.comlaw.gov.au/Details/F2014L00891/Explanatory%20Statement/Text" target="_blank">rollback</a> of some of Labor’s Future of Financial Advice (FoFA) reforms.
The proposed changes to FoFA watered down some of its more controversial aspects. They included the provisions establishing a “best interests” duty for financial planners and restrictions on conflicted remuneration. Other rollbacks included changes that required fee disclosure statements and the obligation for clients paying ongoing fees to “opt in” by written consent every two years.
The Abbott government maintained the reforms were merely to streamline regulation, prompted by the need to reduce bureaucracy and red tape. However, the recent and continuing <a href="https://www.smh.com.au/business/timbercorp-victims-set-to-sue-financial-planners-while-liquidator-presses-for-loans-to-be-repaid-20140810-102gco" target="_blank">financial planning scandals</a> made such streamlining politically unsustainable.
So we are back to Labor’s original FoFA legislation. But where does this leave the financial planning industry and the thousands of Australians in need of financial advice?
There are claims within the financial planning industry the blocking of the regulation will cause further <a href="https://www.theage.com.au/business/banking-and-finance/fofa-reforms-senate-shock-spurs-financial-adviser-scramble-20141119-11q2te">instability</a>. This is as firms scramble to meet the FoFA requirements, particularly those relating to fee disclosure and opt in obligations.
Yet FoFA has been law since 1 July 2013, so it is difficult at first glance to understand why the blocked rollback would significantly impact the industry.
It seems that large sections of the industry have been operating on the basis the coalition’s FoFA rollback changes would become law.
It is a view reflected by the Australian Securities and Investments Commission. It <a href="https://www.asic.gov.au/about-asic/media-centre/find-a-media-release/2013-releases/13-355mr-asic-update-on-fofa/" target="_blank">said</a> in December 2013 it would take a “facilitative” approach to FoFA enforcement in light of the proposed changes and would “not take enforcement action in relation to the specific FoFA provisions that the government is planning to repeal”.
After the reforms were disallowed in the Senate, ASIC said this week it would take a “<a href="https://www.asic.gov.au/about-asic/media-centre/find-a-media-release/2014-releases/14-307mr-disallowance-of-fofa-regulations/" target="_blank">practical and measured approach</a>” to administering FoFA as it now stands. The regulator says it recognises that compliance with FoFA will require systems changes for many Australian financial services licensees. This facilitative approach to FoFA compliance will continue until 1 July 2015.
It seems unlikely there is any need for panic within the industry as there is still some time before ASIC will enforce FOFA compliance. Nonetheless, those licensees who deferred making costly system changes in line with Labor’s legislation may now find themselves having to make those changes rapidly in a highly uncertain regulatory environment.
In the long run, this situation is likely to lead to less affordable financial advice for Australian consumers.
Despite the reform rollback not going ahead, there still isn’t an easy solution for the financial advice industry. The unchanged legislation now retains greater consumer protection. But it does <a href="https://www.theage.com.au/business/comment-and-analysis/fofa-doesnt-clean-up-the-financial-advice-minefield-20141121-11riwk" target="_blank">little to address </a>what many regard as the fundamental cause of the poor reputation of the Australian financial planning industry – the need to raise the professional, ethical and educational standards of financial advisers.
While consumers will get some greater level of protection through increased fee disclosure, this comes at a price. This protection also relies on consumers taking the time to read and understand the disclosures made by their financial planners. Financial planners can continue to give poor quality advice. What will change is increased upfront fees and greater disclosure around these fees resulting in higher costs. There will be less scope for scaled advice which was part of the Abbott government reforms.
FoFA still fails to set educational or professional standards for financial planners. Until industry entry standards are lifted, FoFA will not deliver accessible financial advice for the Australians who need it.
Absent an urgent rethink by the Abbott government on FoFA, after last week’s events it seems the goal of access to affordable and trustworthy financial advice for Australian consumers is more elusive than ever.
<img src="https://counter.theconversation.edu.au/content/34486/count.gif" alt="The Conversation" width="1" height="1">Julie Walker is associate professor in accounting at The University of Queensland.
<a href="https://theconversation.com/institutions/university-of-queensland"></a>
Julie Walker has previously received research funding from the Institute of Chartered Accountants in Australia. She is affiliated with Chartered Accountants Australia New Zealand.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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po-LsXgBTHBmX

FoFA fiasco: No quick fix for the advice industry

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Australian superannuation funds will increasingly look to invest in global real estate in 2015 as they are close to Asian cities that are benefiting from major demographic shifts, while there are fewer opportunities in the domestic market, a fund manager has predicted.
The forecast comes as a separate study by Australian researchers, released by the US-based Defined Contribution Real Estate Council (DCREC), shows an allocation of just 10% of a fund’s portfolio to real estate can match or beat the returns of a fund with less property exposure at a lower risk to investors.
TIAA Henderson Real Estate executive director Nick Evans, who heads the fund manager’s Australian business, said sophisticated investors such as superannuation funds were attracted to creating tailored real estate portfolios that suited their particular risk and return profiles.
Australia’s largest super fund, AustralianSuper has partnered with TIAA Henderson Real Estate to invest in emerging global real estate.
“Major investors are approaching global real estate in a very different way to pre-GFC days and we expect to see more Australian funds building a tailored approach that gives them the flexibility, exposure and returns they need,” Evans said.
He added that Australia’s superannuation funds were searching for better investment solutions for their ageing members who wanted secure income at a reasonable level of risk to support a lengthy retirement.
The study, which was released by the DCREC in the US in early November, found that allocating 10% of a portfolio to a mix of listed and unlisted real estate enhanced the risk-return profile of a defined contribution plan portfolio.
Defined contribution plans are investment vehicles where members contribute set amounts over a period of time, such as Australia’s superannuation funds where members contribute 9.25% of their salary each year.
The study, A Path to Better Retirement Outcomes: Allocating Real Estate Assets to Retirement Portfolios was conducted by researchers at Australia’s Griffith University, professor of finance Michael Drew and Adam Walk, also from Griffith University, and Jason West from Bond University.
It found a portfolio that includes property could smooth fund members' transition from accumulating savings to drawing a pension and could help investors avoid mistakes such as selling risky assets during a market downturn, which locked in losses.
The study noted that funds often used listed real estate investment trusts (REITs) for property exposure due to their liquidity, diversity and valuation cycles that mirrored stocks and bonds, but had been slower to adopt unlisted real estate.
Unlisted property could deliver returns that were closer to those of bonds with less risk than stocks, regular income, low volatility and low correlation to listed markets, the study showed. Some types of unlisted real estate could also act as a hedge against inflation.
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zfielding-GvX3Uq9KTa

Australian funds looks to Asian property markets as domestic opportunities run dry

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Foreign property ­buyers in Australia will not be slugged extra stamp duty, as modelling by the Parliamentary Budget Office has concluded the charge would be self-defeating.
But the federal government is being asked to consider a $1,500 application fee to process their purchasing paperwork.
Kelly O'Dwyer's parliamentary committee has concluded the prospect of additional stamp duties would likely kill off the market for foreign buyers.
The stamp duty issue will not be formally recommended by the parliamentary committee into housing affordability and foreign ownership when it publishes its long-awaited report on Thursday, the Australian Financial Review has reported.
The review is expected to recommend the establishment of a single database of property purchases across states and territories and linking that information to customs data.
The Treasurer Joe Hockey recently said the federal government was prepared to go it alone after resistance from state bureaucracies.
The $1,500 application fee would raise $600 million over the first decade, News Ltd papers reported.
The funds would help track compliance for unauthorised acquisitions.
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jchancellor-FAypfDUnLy

A $1,500 application fee, but no higher property stamp duty for foreign buyers

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Of all the policies employed by the government to exacerbate Australia’s housing affordability crisis, our inequitable tax system, which includes negative gearing, is top of the list.
Negative gearing has reduced Australia’s housing supply. Over 92% of investors chase the capital gains associated with second hand dwellings rather than increase the stock of housing through investment into new supply. We replace properties for sale, with properties for rent.
<img src="/images/2014/11/20/cashmore-nov-20-one.jpg" alt="">
Negative gearing has pushed up the price of housing and widened the gap between price and yield. High and rising house prices naturally put upward pressure on rents and assist in keeping first homebuyers locked out the market.
<img src="/images/2014/11/20/cashmore-nov-20-two.jpg" alt="">
Negative gearing has turned us into a nation of speculators. Today, the investor share of the market is close to 50%. Investor finance commitments are rising at their fastest pace since 2007. 65% of loans to investors are on interest only terms and an estimated 95% of all bank lending is being channeled into real estate – mostly residential. Negative gearing costs the government billions in lost tax revenue each year. Around 1.25 million taxpayers (approximately 13% of the total) now have at least one negatively geared property. <img src="/images/2014/11/20/cashmore-nov-20-three.jpg" width="676" height="440"> Negative gearing employs one rule for the landowner and another rule for the worker. Investors that negatively gear can deduct non-work-related property losses against wages and salaries.They can lower their taxable income as much as they wish by simply by buying enough negatively geared dwellings. The wage earner has no such advantage – why work when you can speculate? Negative gearing favours the wealthy rewarding high-income earners handsomely. Notwithstanding, the property lobby use artificially reduced taxable incomes to falsely claim that most investors are “<a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-09-24/janda-the-myth-of-mum-and-dad-negative-gearers/5766724">mum and dad</a>” average income earners.
Negative gearing merely scratches the surface of Australia’s inequitable tax system. 
Investor tax incentives and their effect on house and land values have been repeatedly clarified by independent tax reviews, as well as previous Senate Inquiries into housing affordability.
The first inquiry conducted by the Productivity Commission in 2004, determined that prices had surpassed levels explicable by demographic factors and supply constraints alone. They stressed that a large surge in demand had rather been “predicated on unrealistic expectations (in a 'supportive' tax environment) of on going capital gains”.
The second inquiry overseen by a Select Senate Committee in 2008, found that the average house price in capital cities had climbed to over seven years of average earnings and once again, they identified inequitable disparities in the overall fairness of the tax system, that had lead to “speculative investment on second and third properties.”
Australia's Future Tax System review conducted in May 2010 stated that tax benefits and exemptions had been capitalised into higher land values, encouraging investors to chase ‘large’ capital gains over rental income and landowners to withhold supply.
The Future Tax System review recommended allowing only 40% of interest (and other expenses) associated with investments as a deduction.
This would reduce the amount investors are able to claim against negatively geared dwellings and provide a good starting point for phasing out the policy altogether.
Negative gearing as well as stamp duties (which are a volatile source of revenue, dependent on the volume of housing transfers in addition to the transacted price), should be replaced by a broad-based SLT (state land tax) – as I recommended <a href="https://catherinecashmore.com.au/wp/?p=414" target="_blank">here</a>.
Under this scenario, the upfront cost of land would fall, the higher tax base would blunt potential capital gains from speculation, and housing supply would naturally increase as land would need to generate an income.
An enhanced land tax would also provide a steady source of revenue for state government giving them greater control over public finances for the provision of essential infrastructure.
Moreover, study after study demonstrates, that basing a system on the collection of resource rents and monopoly profits, for the direct application of facilitating local and community services, can reduce the tax liability on most households whilst also maintaining complete revenue neutrality.
Unfortunately, 95% of our federal MPs own investment properties. Collectively, the are in possession of an estimated <a href="https://blog.australiaboomtobust.com/2014/08/propertied-federal-political-class/" target="_blank">$300 million</a> personal portfolio of residential dwellings. 
It is therefore unsurprising that all recommendations from previous Senate inquiries for meaningful and equitable tax reform have been studiously ignored.
This is an extract from Property Observer's exclusive article where the experts were asked: <a href="/expert-insights/investing/exclusive-negative-gearing-what-needs-to-change">Negative gearing – what needs to change?</a>.
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catherinecashmore-6LXia3pPQj

Negative gearing merely scratches the surface of Australia’s inequitable tax system

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In the aftermath of the Block Glasshouse auctions, theories about why some contestants made as little as $10,000 profit were abundant.
Just one season before, in <a href="/news">Albert Park's</a> Fans v Faves, all four teams received profits in excess of $500,000.
Most pointed to a particularly shallow buyer pool, thanks to what Property Observer called a <a href="/expert-insights/buying/not-enough-bidding-baby-boomer-buyers-to-boost-b-grade-location-in-the-block-glasshouse-2014-auction-results">"B-grade" location</a>, with little appeal to the cashed-up boomers that usually buy Block properties.
"For Sydneysiders it would be like flogging prestige apartments on Parramatta Road, Annandale, which has very nice houses away from its busy thoroughfare, though without the trams," wrote editor at large Jonathan Chancellor.
According to Michael Townsend, director of Hodges Real Estate St Kilda, an apartment's location on a main road may rule out certain buyers.
"I suppose when we look at apartments, there is definitely certain concessions placed on main road property locations," said Townsend.
"Definitely those on major thoroughfares, with noise and pollution."
<a href="/news">Prahran</a>'s High Street, where The Block Glasshouse apartments are located, has four lanes of traffic, with trams. Down the street is a hybrid car wash-burger diner; across the roads sits a Swinburne University campus.
While a main road location doesn't necessarily cut out buyers, Townsend explained, it will appeal to certain markets more than others.
"When we look at the apartment market as a whole, there are obviously price points and sub price points within that market place," said Townsend.
"There are buyers who definitely graduate towards main hubs and busy areas with cafe cultures and bars and restaurant areas," he said, with younger buyers and investors perhaps more interested in living among Prahran's busier strips.
But for buyers who are willing to spend the prices seen on Fans v Faves (as much as $2.47 million), a main street might not cut it.
"If someone's spending within $2 million on an apartment, they usually have very strict criteria," said Townsend.
"Avoid main roads if you can, avoid busy streets, avoid places with no outdoor space."
Upgraders with $2 million to spend are likely to have lived in areas with considerable room and amenity, Townsend said.
"Premium buyers – owner occupiers – are often coming out of a substantial home on a leafy backstreet," he explained.
"The might ask: 'Why would I sell out of leafy Hawthorn or Brighton or St kilda property? Why would i want to move out to a busy thoroughfare?'"
Those buyers, Townsend said, are more likely to move to a character home in suburbs like Albert Park, rather than an apartment complex in Prahran.
It seems there are certainly those who would pay to live amid the noise and activity of a main road – just not quite enough to make up for the money and time poured into The Block Glasshouse's renovated apartments.
You might also want to read:
<a href="/expert-insights/building/renovation-rumble-showdown-with-the-block-contestants-v-house-rules-contestants">Renovation rumble showdown with The Block contestants v House Rules contestants?</a>
<a href="/expert-insights/building/former-block-contestants-craft-new-careers-in-renovation">Former Block contestants craft new careers in renovation</a>
 
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jrichardson-uRX5hFdKfN

Do apartments on main roads sell? Lessons from The Block

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The conversation around a potential Docklands oversupply has been going for some years.
Adjacent to Melbourne's CBD, Docklands is conveniently located and Places Victoria has big plans for the suburb.
With construction starting in 1997, and a 25 year time frame, we're right in the latter half of the development process. Teething problems have, almost inevitably, been highly scrutinised.
Last year, we reported that <a href="/news/vic/docklands-finding-its-feet-after-a-difficult-conception">Docklands was beginning to find its feet after a difficult conception</a>. However, there were <a href="/news/water-usage-reveals-high-vacancy-rates-in-southbank-and-docklands">still reports in late-2013 that water usage was revealing high vacancy rates</a> in the area of around 11%.
The 2014 <a href="/news/vic/over-64-000-melbourne-properties-sit-vacant-prosper-australia">Prosper Australia report found that this had not improved this year</a>. In fact, in terms of water usage, Docklands has potentially the highest number of vacant properties in Melbourne.
With a median unit price of $600,000 currently, Docklands offers a gross rental yield of 4.51% with a median weekly advertised rent of $520, according to RP Data. They note the average hold period for a Docklands apartment is seven years, and while a -1.64% dip has been seen in the median price over the past three months, the 12 month growth is at 6.57% with annual average growth of 2.38%.
Glenn Lucas, managing director of Lucas Real Estate, is a resident in Docklands. He began selling real estate in the area in 2000 before establishing Lucas Real Estate in 2004. It is now the largest independent agent in the area and this year secured the Real Estate Institute of Victoria's Residential Property Manager of the Year title.
He doesn’t believe that the vacancy rate is a huge issue.
SQM Research records the vacancy rate at 4.4% at present, down from  a 2013 peak above 9%, with regular swings prior to this.
His agency’s vacancy rate sits at around 2%, and he’s quick to note that changing vacancy rates, or cyclical results, are a normal transitional part of any new market.
“Real estate goes through cycles and when a developer puts a tower to the market it’s when the market is at its highest. Then it takes a couple of years to build the tower. It takes time for the buyers to settle,” explains Lucas.
“There’s a good demand for [existing] properties, rentals are not dropping at all,” he says.
Renters come in many forms in Docklands. He points to the professional couples and singles that like the convenience of apartment living in the area, but also says a number of downsizers are also active in the area. Some students in budget apartments also make up a portion of the market.
“There is a market for one bedroom rentals, but it’s the two bedrooms that have done very well,” he says. These rent for between $450 and $650 per week.
While success in the short term may not have occurred for everyone, Lucas has seen some of the first Dockland properties that sold off the plan for $450,000 now achieving $650,000.
He shared four of their recent sales highlights:
<ul>
<li>1401/20 Rakaia Way, Docklands VIC 3008 - $915,000</li>
<li>2504/90 Lorimer Street, Docklands VIC 3008 - $1,310,000</li>
<li>1902/5 Caravel Lane, Docklands VIC 3008 - $900,000</li>
<li>2301/1 Point Park Crescent, Docklands VIC 3008 - $1,160,000</li>
</ul>
Property Observer looked through the latest RP Data to see what sales we could find.
When looking at the sales record from September 1 to today, with 72 sales, it appears gains and losses are in a strong mix. Those who held the property since 2002 or prior, particularly those with larger apartments, seem to have done well with strong gains.
However, those purchasing for the short term – as well as a pain period in 2003 where it seems a number of investors overspent – have realised losses upon selling in the past two and a half months.
Refining the search to those in even more recent days, from 1 November to today, we found the following sales:
<ul>
<li>Two bedroom, one bathroom apartment sold for $467,000 in 2008 and was listed as non-disclosed on the recent sale. It was advertised at $405,000 to $435,000.</li>
<li>Two bedroom, two bathroom apartment was bought for $677,500 in 2001 and listed non-disclosed on sale. It was advertised at $759,000 plus.</li>
<li>Two bedroom, one bathroom apartment bought in 2003 for $532,600 (after 2002 construction), it then sold in 2007 for $495,000, before selling again this month for $550,000.</li>
<li>Two bedroom, one bathroom apartment sold in 2002 for $430,000 before being purchasing in 2011 for $505,000. It sold again for $505,000 less than two weeks ago.</li>
<li>One bedroom, one bathroom apartment was listed as non-disclosed for sale price on 10 November. It transacted for $438,000 in 2002, and was asking for "offers over $420,000" this time round.</li>
<li>Two bedroom, two bathroom apartment sold at the beginning of the month for $450,000. No previous sales information available, but seems it was asking $499,000 to $539,000, before lowering the expectations to $455,000 in January 2013.</li>
<li>One bedroom, one bathroom apartment sold for $456,000 this month after selling in June for $310,000, prior to this it was bought for $301,000 in 1999.</li>
<li>Three bedroom, two bathroom apartment sold for $1,310,000 on the 14th, previously selling for $1,100,000 in 2011. Prior to this it sold for $1 million in 2008 and $1,370,000 in 2005.</li>
<li>Three bedroom, three bathroom apartment sold for $765,000 on the 11th. It was bought for $715,000 in 2013 and $683,000 in 2001.</li>
<li>Two bedroom, two bathroom apartment sold for $730,000 on 11th. It last sold for $1,025,000 in 2010.</li>
<li>One bedroom, one bathroom apartment sold for $335,000. It was purchased in February 2008 for $375,000 and March 2007 for $350,000.</li>
<li>One bedroom, one bathroom apartment sold for $380,000 on 12th. It was previously bought for $400,000 in 2009.</li>
</ul>
Looking at the list a little closer, it shows that there were three clear losses, four clear gains, three “possible” losses, one “possible” gain and one that recorded no change (though likely a loss for the investor in terms of transaction costs).
What is particularly interesting is the losses seen by those who sold to our most recent vendors in the list; even when gains are seen now there has been pain in the past. Perhaps it suggests an emerging recovery.
“Like any investment, we recommend [holding] for the medium to long term,” Lucas urges of those considering a Docklands investment.
It seems he is on the money.
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jduke-EHk3XBmHkn

Docklands: Are gains to be had amid "oversupply" speculation?

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I was lucky to recently spend an amazing weekend riding horses in the NSW Snowy Mountains National Park.
It was one of those bucket list trips and I went with an old school friend. We'd gone to pony club together and grown up as horse crazy girls. We'd spend most of our teenage years riding and looking after our horses (which kept us out of trouble!).
Whilst sitting around the camp fire at night with a group of other women and staff we'd just met, I was discussing property investing with one of the ladies – can't help myself!
She was a pretty amazing single lady with her sights set on the future. She'd been clever enough to buy a few investment properties in-between serving our country in the army.  We were discussing her recent purchase of an off the plan apartment.
She shared with me the numbers on her deal and I was a bit surprised. I have good experience with buying off the plan but it was over ten years ago now that I used this strategy. Back then, the property developer offered a good discount to purchasers and this helped create some equity. If the market was also moving upwards, then a nice chunk of money could be made by settlement time. I would settle an apartment then draw out the equity to use as a deposit to settle the next one.
But things have changed. There seems to be more risk as there isn't the same discounts being applied. So you buy in at today's market price. If, of course, it's a hot market, as Sydney is at the moment, that price could end up more than what the apartment may be worth in a year or two once completed.
I explained what I did to the lady. Property Bloom manages small developments for our clients. A dual occupancy development can create a big chunk of money within twelve months and you end up with two properties.  I explained that the big difference between buying off the plan and developing yourself, is that you are creating the equity through the development process, not hoping for capital growth whilst your apartment is being constructed.
Would you rather control of the equity creation by cutting some keen deals on the land and construction or rely on a stranger to build your investment and hope for the market to rise?
I did the latter six times and was lucky four out of the six times. The other two deals were borderline. If I had my time again, I would not have completed on the two ordinary investments.  But as they say, time heals all wounds and because I held onto these investments (in lieu of selling at a loss) they've turned out well.
My big lesson from buying off the plan?  It is far more lucrative to be the developer than the investor.
<a href="https://www.propertybloom.com.au">www.propertybloom.com.au</a>
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