High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

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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It’s always refreshing to read an intelligent report, so when the Centre for Independent Studies released <a href="https://www.cis.org.au/images/stories/issue-analysis/ia146.pdf" target="_blank" title="Eight Housing Affordability Myths">Eight Housing Affordability Myths</a> by Dr Stephen Kirchner, we finally got to see why Australia’s housing debate is long overdue.
The only problem that comes from such a precise paper is that it will require government intervention which, as most would agree, is where the problems start. They just don’t get it – if they did, we would not have the glaring problems that we see today. Some of the interesting points raised are:
<ul>
<li>Housing consumption and investment are both taxed and subsidised by all levels of government. The net effect of these taxes and subsidies on housing affordability is difficult to determine as it depends on the benchmarks used to assess what is taxed and what is subsidised.</li>
<li>Housing affordability is a relative rather than an absolute concept and there is no unique way of measuring housing affordability.</li>
<li>Much commentary on housing markets focuses on dramatic, ‘short-term’ changes in house prices, failing to put these changes into ‘long-term’ context.</li>
<li>The supply of new land for housing has declined over the last decade, with the average number of lots produced in the five largest capital cities declining by 21%.</li>
<li>The long-run increase in the price of new land for housing is indicative of the failure of state governments to increase land supply to accommodate rising demand for new housing.</li>
<li>A fundamental principle of economics is that if you tax something more heavily you will get less of it. This principle is well understood in relation to markets in goods and services, but it is often forgotten in relation to housing.</li>
</ul>
Some will argue that today, we are seeing two very clear markets; namely the principal place of residence and the investment market which in Melbourne and Sydney has gone berserk.
More confusing, is that we keep reading reports that consumer confidence is in a downward spiral even though investors are in an absolute feeding frenzy for off the plan properties and to such an extent, that they will pay over and above the asking prices.
Now let’s bring out those conspiracy theories. It is clear that since the global financial crisis (GFC) that the mum and dad investors have stayed well clear of the share market and will continue to do so simply because they don’t trust it. This massive investor shift is now driving property values upwards and creating an unprecedented financial burden on the federal government in terms of negative gearing subsidies and Australia is just one of a few developed countries that allows negative gearing.
<a href="https://www.rwm.com.au/files/2014/07/3-07-2014-3-44-05-PM1.jpg"><img class="aligncenter size-full wp-image-57102" src="https://www.rwm.com.au/files/2014/07/3-07-2014-3-44-05-PM1.jpg" alt="3-07-2014 3-44-05 PM" width="683" height="252"></a>
<a href="https://www.rwm.com.au/files/2014/07/10-07-2014-9-33-53-AM.jpg"><img class="aligncenter size-full wp-image-57104" src="https://www.rwm.com.au/files/2014/07/10-07-2014-9-33-53-AM.jpg" alt="10-07-2014 9-33-53 AM" width="630" height="312"></a>
Today, 1.2 million negatively gear with the Australian Tax Office statistics revealing that property investors claimed $13.2 billion in losses in 2010/11 which was up from $10.1 billion the year before.
Given the huge run on investment property over the last few years it will be frightening to see what the negative gearing figures are for 2012/13 and 2013/14. <a href="https://www.businessspectator.com.au/article/2014/7/9/australian-news/why-negative-gearing-australias-biggest-policy-failure" target="_blank" title="Why negative gearing is Australia’s biggest policy failure ">Why negative gearing is Australia’s biggest policy failure </a>– “It is difficult to find a government policy that has been less successful at meeting its objectives than negative gearing on residential property. But unfortunately that is the nature of housing policy in Australia, where sound policies are ignored in favour of policies that encourage speculation, reduce home ownership and redistribute wealth towards the already affluent.”
Negative gearing by property investors reduced personal income tax revenue in Australia by $600 million in the 2001-02 tax year, $3.9 billion in 2004-05 and $13.2 billion in 2010-11 – so this itself leaves a pretty good clue as to how popular it has become. Negative gearing was introduced back in July 1985 and many argue that today, it is no longer relevant. Investors have taken the first home buyers out of the market and they can’t compete as it is not a level playing field.
<a href="https://www.rwm.com.au/files/2014/07/9-07-2014-4-11-47-PM.jpg"><img class="aligncenter size-full wp-image-57106" src="https://www.rwm.com.au/files/2014/07/9-07-2014-4-11-47-PM.jpg" alt="9-07-2014 4-11-47 PM" width="573" height="345"></a>
Then you have the foreign investors where an inquiry is currently underway, although the only way to really see what is happening is to extrapolate the relevant stamp duty records and cross pollinate this data – every sale in Australia pays stamp duty although for some strange reason this point has been missed by the inquiry. This data is readily available – although I doubt it will ever see the light of day.
So the debate should be “what benefit is negative gearing to the Australian economy when nearly all the other advanced economies don’t permit it”. Australian property markets would be decimated if it was abolished and would take the banks with them given the significant borrowings on each investment property which are crucial to maximise the negative gearing subsidies.
When the government brought in the GST in July 2000, this immediately brought about the decline of property developers as they had to pay the 10% GST on the construction costs. Maybe a possible answer is to remove the GST on construction, to see more construction which will increase employment and off-set this by scaling back negative gearing subsidies. In the long-term, this would lower property prices more particularly in the property investment sector. Or, do you place a limit on the number of investment properties allowed that can qualify for negative gearing subsidies?
Now we need to see a politician brave to start this conversation. Better still the Abbott government might even decide that they now need a Housing Minister.
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robertsimeon-hRNTwJyXkQ

Why Australia urgently needs a housing debate

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Australia's top 20 hotspots for both population growth and residential construction have been identified by the Housing Industry Association Economics Group in their Population and Residential Building Construction report.
To make the list, suburbs were required to have a population growth rater faster than the national average, as well as approved residential building work in excess of $100 million, for regions in New South Wales, Queensland, Victoria and Western Australia, or in excess of $50 million for South Australia. The Northern Territory and ACT were required to record over $20 million. In Tasmania the threshold was $5 million.
The report notes that with such a high population growth at a national level, or 1.8%, just 698 suburbs came above this, with just 50 falling into the required building work level.
“In terms of building work approved, the Waterloo-Beaconsfield area in Sydney’s inner south recorded the greatest value of new residential work approved with $513.2 million during the year. Being an area with a relatively large population already, the 4.6% growth in the population in 2012/13 is impressive but is not sufficient to rank among the top 20 hot spots nationally,” the report explains.
“Three new suburbs in the ACT took out the top three spots on the list this year, with Crace leading the way followed by Bonner (top of last year’s list) and Casey. All three of these areas recorded population growth in excess of 40% in 2012/13. The high rate of growth reflects a stage in the emergence of a new suburb whereby households are moving into their new homes in an area which had previously been unoccupied vacant land.”
This is therefore an irregular situation seeing ACT take out the top three spaces, and if they had not then Victoria’s Brunswick East, Craigieburn-Mickleham and Queensland’s Clinton-New Auckland would have achieved bottom spaces on the top 20.
Their top 20 hotspots (Statistical Area Level 2):
<ol>
<li><a href="/news">Crace</a> ACT (58.1%) </li>
<li><a href="/news">Bonner</a> ACT (43.3%) </li>
<li><a href="/news">Casey </a>ACT (40.6%)</li>
<li><a href="/news">Melbourne </a>VIC (22.7%)</li>
<li><a href="/news">Abbotsford </a>VIC (19.7%)</li>
<li><a href="/news">Forrestdale</a>/<a href="/news">Harrisdale</a>/<a href="/news">Piara Waters</a> WA (19.1%)</li>
<li><a href="/news">Cranbourne East</a> VIC (16.5%)</li>
<li><a href="/news">Baldivis </a>WA (15.8%)</li>
<li><a href="/news">Docklands </a>VIC (15.3%)</li>
<li><a href="/news">Yanchep </a>WA (14.8%)</li>
<li><a href="/news">Parklea</a>/<a href="/news">Kellyville Ridge</a> NSW (13.3%)</li>
<li><a href="/news">South Morang</a> VIC (12.6%)</li>
<li><a href="/news">Truganina </a>VIC (11.0%)</li>
<li><a href="/news">Cobbitty </a>– <a href="/news">Leppington </a>NSW (10.8%)</li>
<li><a href="/news">Ellenbrook </a>WA (9.3%)</li>
<li><a href="/news">Homebush Bay</a>/<a href="/news">Silverwater </a>NSW (9.2%)</li>
<li><a href="/news">Epping </a>VIC (9.1%)</li>
<li><a href="/news">Deeragun </a>QLD (8.9%)</li>
<li><a href="/news">North Lakes</a>/<a href="/news">Mango Hill </a>QLD (8.8%)</li>
<li><a href="/news">Point Cook</a> VIC (8.7%)</li>
</ol>
Source: HIA
Interestingly, the report also notes that there have been strong leading indicators of activity in New South Wales and Western Australia, as well as improving signs for Queensland.
These developments, however, are past this report’s cut off and will perhaps alter the list in next year’s.
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jduke-EHk3XBmHkn

List of the day: Top 20 building and population hotspots

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The median price of a house in Adelaide was $420,000 for the quarter to June, according to RP Data-Rismark.
Property Observer looks at the city's recent sales to see what exactly that sum will buy you.
<ol>
<li>
<a href="https://www.realestate.com.au/property-terrace-sa-woodville+west-115717987" target="_blank">14 Smith Avenue, Woodville West</a> <img src="/images/2014/07/14/1.jpg" alt=""> This house in Adelaide's western suburbs sold for $425,000 in May. With a 782 square metre plot, the listing information stated: "Build two and live in one! Sell the other! Divide the land and sell! Rent the current home out knowing you can develop later on." The existing house is a 1950s era three bedder. 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-flinders+park-116815535" target="_blank">77 Hartley Road, Flinders Park</a> <img src="/images/2014/07/14/2.jpg" alt=""> This three bedroom brick house sold for $417,000. With carpeted bedrooms and tiled living areas, the house was described as "quirky and quaint" by the listing agent, who also suggested a subdivision, given the 600 square metre plot. Price: $417,000 Bedrooms: Three Drive to CBD: 12 minutes 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-marden-115839839" target="_blank">3 Glenbrook Close, Marden</a> <img src="/images/2014/07/14/3.jpg" alt=""> Sold for $423,500 in April, this Marden home has three bedrooms and one bathroom. It has floorboards throughout and a substantial backyard, with a carport. The home is located near Willow Bend Rserve along the River Torrens. Price: $423,000 Bedrooms: Three Drive to CBD: 14 minutes 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-semaphore+park-117081607" target="_blank">16 Third Avenue, Semaphore Park</a> <img src="/images/2014/07/14/4.jpg" alt=""> Described as a "good candidate to be demolished" by the selling agent, this two bedroom home sold for $420,000 in June. The two bedroom, one bathroom house has, according to the agent, "been in the family for many years". Price: $420,000 Bedrooms: Two Drive to CBD: 23 minutes 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-birkenhead-116866711" target="_blank">7 Mead Street, Birkenhead</a> <img src="/images/2014/07/14/5.jpg" alt=""> This 1870s era terrace near the beach sold for $425,000. The two storey home has a bay window, timber joinery, a cast iron balustrade and blue stone walls. There is a newly built extension on the house, with a tiled open plan living area and new bathroom, laundry and toilet. Price: $425,000 Bedrooms: Three Drive to CBD: 22 minutes</li>
</ol>
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jrichardson-uRX5hFdKfN

What can you buy for Adelaide's median house price?

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A recent poll of 6,000 folk in WA said they could experience mortgage stress if interest rates are ratcheted back up, with housing stress defined as spending more than one third of disposable income on a mortgage.
Usually one might treat such surveys with caution, but a look at data for WA over recent years does seem to back the point up to a certain extent.
Retail turnover, for example, went on a blazing run for half a decade from early 2008, but perhaps consumers are now 'tapped out', with WA retail sales growth having tapered off since late 2012 on a seasonally adjusted basis:
<img src="https://1.bp.blogspot.com/-WPy4jftppA0/U6lXKZYJyTI/AAAAAAAAODI/U_y1qb-Na1Y/s1600/WA.jpg">
Perth's property markets have been on a very strong  run over the past dozen years, and after a prolonged lull which broadly ran from 2009 to 2012, dwelling prices in many areas saw another 10% price uplift in 2013:
<img src="https://4.bp.blogspot.com/-leRz10fqeBU/U6lkfevZ3XI/AAAAAAAAOEQ/DPoVp8eOeSk/s1600/11+year+prices.jpg">
Western Australia is now in transition mode as the mining construction boom passes its peak and the less labour intensive production phase of the mining boom kicks in.
It's important to note that in the short term this is likely to result in an uptick in unemployment and a slowing of the economy, which is one of the reasons why our 2014 forecasts were only for a far more moderate 0% to 3% growth, which essentially looks to be about on track at this juncture:
<img src="https://4.bp.blogspot.com/-Yx1uPLpOLEo/U6lXRLmlWXI/AAAAAAAAODQ/mlPbLaVk2zo/s1600/Perth.jpg">
It's worth noting that some of the data reported to date needs putting in perspective.
While the state population growth of +71,300 in 2013 represented a significant slowdown from an romping annualised pace of 3.7% to 2.9% in Q4, this is still by far and away the strongest population growth rate of any state, even though the larger states recorded higher absolute population growth numbers:
<img src="https://2.bp.blogspot.com/-vABYA1a-56M/U6laOIp5jJI/AAAAAAAAODk/L-M9YAl-LYU/s1600/Population.jpg">
Similarly, while the unemployment rate has ticked up from its pre-crisis lows, the unemployment rate is still only 5%, which is comfortably the lowest rate of any state, and a world apart from the southern states of Tasmania and South Australia where unemployment rates are flirting with a 7% level or higher:
<img src="https://4.bp.blogspot.com/-qakZ_6v1Occ/U6lkD8xMonI/AAAAAAAAOEA/8baFNVl-0iY/s1600/UEby+state.jpg">
Jobs growth in WA has tapered off too of late, but the past decade has been an undeniably strong one in WA:
<img src="https://3.bp.blogspot.com/-yEuaK3IhBnc/U6lkEGbqLoI/AAAAAAAAOEE/I5Xq5W7RvJg/s1600/WAjobs.jpg">
Mining boom over or changing?
When commentators saw that the "mining boom is over", what they are really referring to is that the mining construction boom of the past decade has now passed its peak and will start to decline, representing a drag on economic growth.
Refer to the national figures for engineering construction below:
<img src="https://3.bp.blogspot.com/-ZQDm9Ohq790/U6n_cBNmdhI/AAAAAAAAOEw/hPGAhgm3XRo/s1600/CWD.jpg">
Mining boom over or changing?
When commentators saw that the "mining boom is over", what they are really referring to is that the mining construction boom of the past decade has now passed its peak and will start to decline, representing a drag on economic growth.
Refer to the natClearly, however, the whole point of constructing resources projects is to bring reserves to production, and in this sense, the mining commodity exports boom is only in its infancy, with exports to China in particular accelerating by the month.onal figures for engineering construction below:
<img src="https://www.rba.gov.au/chart-pack/images/16-17-balance-payments/16tr-bcomx-small.gif?accessed=2014-06-24-20-45-07" alt="Bulk Commodity Exports graph">
Take a look at what's happening in WA's Pilbara region for example.
Iron ore cargo shipped out by the Port Hedland Port Authority (PHPA) in the month of May totaled an extraordinary 36.05 Mt (million tonnes), a whopping 30% increase in volumes on the May 2013 figure, with some 85% of that cargo bound for China or Taiwan, and Korea and Japan mopping up the rest:
<img src="https://4.bp.blogspot.com/-IngIN3j-joE/U6lhHYbvm1I/AAAAAAAAOD0/EXb798ksuYk/s1600/PHPA.jpg">
It was announced recently that on Saturday 7 June 2014 the PHPA shipped out an extraordinary 1,270,271 tonnes of iron ore on only a single tide, crunching the previous record set in April by a whopping 160,000 tonnes.
The last time I checked there are two tides in day, you can see how this could potentially comfortably equate to new monthly and annual throughput records in June when the data are reported in a week's time.
Summary
Western Australia will continue to be Australia's exporting powerhouse in the decade to come.
Clearly, however, there will be a very strong level of interest in how the Chinese economy continues to fare, since it is China's demand for iron ore in particular which is driving the boom (although Port Hedland, for example, also exports salt, copper concentrate and manganese ore to China and Taiwan).
The key data to watch for WA will be the presently low unemployment rate and where that peaks, and the all-important Labour Force figures which are released monthly by the Australian Bureau of Statistics.
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pwargent-M4siyDbqQY

Western Australia: A state in transition

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Five years on since the US recession ‘officially’ ended in June 2009, urban land prices are rising, the pattern of history is repeating, and this time the players on the chessboard have changed.
But our governments are turning a blind eye. 
They have yet to acknowledge why the crisis happened, or put policies in place to prevent it happening again.
Expensive welfare systems, elaborate tax and transfer policies, and the financial ‘cures’ following the previous land induced crash in the early 1990s did nothing to prevent the swiftest and sharpest synchronised global downturn in human history.
Taxpayers were punished, bankers got a “get out of jail free” card, and the largest real estate investment trusts spent $50 billion purchasing 386,000 foreclosed homes, to rent out to previous owners who believed and acted on the lie “there is no bubble”.
The IMF and policy makers are now twisting themselves in economic knots trying to pin down a ‘cure’ for the dangers of excessive house price inflation they readily admit lead to most banking crises, with Australia featuring in the top five of each of their highlighted risk assessments;
“Our research indicates that boom-bust patterns in house prices preceded more than two-thirds of the recent 50 systemic banking crises,” an <a href="https://blog-imfdirect.imf.org/2014/06/11/era-of-benign-neglect-of-house-price-booms-is-over/" target="_blank">IMF blog post warned</a> last month.
The IMF claims the ‘neglect of house price booms is over’ but as the OECD ‘Post Mortem’ of the 2008 crises reveals, these economists can’t see. 
They ignore the role that rent (unearned income), debt and the financial sector play in shaping the economy. 
They have a colourful history of recurrent boom bust land cycles, all replete with rampant speculation and easy credit, spanning in excess of 300 years from which to study … and yet:
 “The macroeconomic models available at the time of the crisis typically ignored the banking system…”  (OECD Forecasts During And After The Financial Crisis: A Post Mortem – February 2014).
In other words, based on the aesthetic qualities of their equations, the 2006/7 bubble couldn’t exist. A story we hear repeated every year as prices continue to defy gravity and economist try and explain it away with ‘sound fundamentals’.
Neo-liberal policy made matters worst. 
Less government interference, protecting labour, redistributing wealth through taxing the rich, deregulation of capital markets, lowering trade barriers, and reducing state influence though privatization and fiscal austerity were termed by American scholar Robert Waterman McChesney as “capitalism with the gloves off”.
It promised to lead to efficient markets and lower unemployment.
But at the onset of the GFC, unemployment in developed nations rose above any previous recession of the past three decades, whilst wages, as a share of GDP plummeted to their lowest point since the Second World War.
<img src="/images/2014/07/14/cashmore%20july%2014%20one.png" alt="">
“This should be a wake-up call,”concluded the UN in their annual <a href="https://unctad.org/en/PublicationChapters/tdr2012ch6_en.pdf" target="_blank">Trade and Development report that revealed the findings</a>:
 “There must be something fundamentally wrong with an economic theory, that justifies the rise of inequality mainly in terms of the need to tackle persistent unemployment.”
In the UK, Bank of England has imposed a 4.5 times loan to income cap on 85% of mortgages, along with various ‘stress tests’ to please the regulators.
But the Council of Mortgage lenders show only 19% of recent London mortgages are at or above this ratio, whilst the national figure is a mere 9%.
By volume, London accounts for around a quarter of loans nationally, (Q1) so the 85% cap will do little to nothing, except perhaps eliminate home ownership for low-income groups.
But stemming inflation or deterring speculative activity is not, and never will be, <a href="https://www.theguardian.com/business/2014/jun/26/bank-of-england-limit-large-loans-housebuyers-mortgage-lenders" target="_blank">Central Bank policy</a>:
"These actions should not restrain current market housing activity … these actions will have minimal impact in the future if the housing market evolves in line with the Bank's central view."
In the U.S.A just five megabanks and their holding companies control a derivatives market worth hundreds of trillions of dollars, in Australia the ‘Big Four’ command 80% of the market and 88% of residential mortgages.
“These are the men who have the most economic power in the world’’ wrote British philosopher, mathematician and historian, Bertrand Russell, one of the 20th century’s leading logicians; “and they derive it from land, minerals, and credit, in combination.”
Russell understood only too well, that all productive gains, every improvement in society and the economy, would be capitalised into rising land values, enriching those who owned the assets but more so, those who created the credit and traded on the debt. 
Milton Friedman meanwhile tutored that societies are structured on greed. 
But greed means taking something from another, grasping for a larger slice of the pie (see <a href="https://en.wikipedia.org/wiki/Pareto_efficiency" target="_blank">pareto efficiency</a>).
Greed is not a natural feature of a well-functioning community; rather it’s a feature of a dysfunctional economy that allows a country’s wealth to gravitate into an elite nucleus of financially strong hands.
It remains that the economy is fuelled by what is termed the ‘FIRE’ sector – finance, insurance, and real estate.
The FIRE Economy is dependent on rising asset prices – on you and me buying houses - so it can extract economic rent.
The three sectors work together – they’re intrinsically linked.  
The banking sector pumps a colossal amount of credit into the system by way of a home loan. Real estate businesses sell the products – some trading as REITs - insurance companies underwrite the owners debt, property, and income, and as the interest payments compound – doubling and doubling again – the debt is recycled into more lending, more borrowing, higher house prices - making those who trade on the debt in an obscure concentrated market of derivatives, increasingly wealthy.
<img src="/images/2014/07/14/cashmore%20july%2014%20two.png" alt="">
Source: <a href="https://www.worldeconomicsassociation.org/books" target="_blank">Bubble Economics</a>: Australian Land Speculation 1830 – 2013, by Paul D. Egan and Philip Soos
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
The government, many members of which come directly from the industry itself, receive substantial payments from the FIRE sector.
For example, between 1998 and 2008 the banking industry spent <a href="https://newint.org/features/2011/01/01/10-worst-corporate-lobbyists/#sthash.nyyaPmr4.dpuf" target="_blank">$3.4 billion</a> lobbying the US government.
In Australia, the ICAC investigations into Illegal donations from developers and <a href="https://www.theage.com.au/comment/even-i-am-shocked-by-icac-revelations-20140516-zreh2" target="_blank">“wealthy property tycoons”</a> reveal tens of thousands of dollars have been used to influence decisions by local, state and federal governments.
It should therefore be of no surprise that ‘affordable housing policy’ always seems to work in reverse. 
Generous subsidies are handed over to investors – all of which are capitalised into land prices.
Restraints on supply are imposed, ‘rich neighbourhoods’ are protected from over development, land on the fringes is no longer dirt cheap, acreages are banked, <a href="https://www.prosper.org.au/2014/06/18/no-land-for-you-melbourne/" target="_blank">exempt from State Land Tax</a> until subdivision at the owner’s pleasure.
To survive, the FIRE sector must effectively sell the illusion that the economy can grow on rooftops, that we can all take part in an orgy of economic rent.
“Only the little people pay taxes” (i.e. work for a living) - we can all become wealthy through property investment, dining out and trading on leveraged gains, perhaps donating a little to charity, or taking part in some publicity-generating event to raise funds for homelessness along the way – as our politicians are fond of doing.
Of course, first home buyers suffering alarm at rapidly escalating costs are necessary oxygen for the system.
So their judgement is manipulated as housing affordability is now reclassified as mortgage serviceability – how far the pay cheque can stretch each month rather than highlighting the upfront cost, while young buyers are encouraged to enter the market as speculators, living off their parents, until they gain a ‘foothold’ from leveraging the equity.
Banks assist with an array of financial products – offset accounts, honeymoon rates, shared equity schemes – mortgages treated like credit card payments, where all that’s required is the interest and should the market collapse with money still outstanding, they’ll collect the house too.
The result is land is now used for greed rather than need, pushing city boundaries outwards, requiring an excessive use of durable capital, which eventually leads to a shortage of loanable funds. 
You will never be told the system can fail.
Instead you will hear that house prices can maintain a ‘high plateau’ – stagnate for a while until we all ‘catch up.’
However, the increase in the annual rate of growth is now part of the income that buyers pay for and lenders rely upon.
This is how real estate is sold – investors gravitate to areas that advertise ‘good capital gains’, calculating the land’s value based on both the rent a tenant will pay plus the projected annual increase (land rent).
Buyers live in fear of land values collapsing, yet, while prices trend higher, expectations over shoot the mark by no small degree.  Landowners treat their unearned increment as income, raising consumption, lowering saving, putting to upward pressure on inflation, which eventually results in interest rates rising.
Never, throughout the course of history, has such a process been economically sustainable.
At some point the productive capacity of the economy can no longer support the boom – and as Australia’s history of land induced financial crises reveal, the end is not always as kind as experienced in 2008. <a href="https://www.worldeconomicsassociation.org/books"> </a>
“House prices don’t always go up” warned the Governor of the RBA, Glenn Stevens at a recent speech in Hobart, just as he did in <a href="https://www.abc.net.au/worldtoday/content/2014/s3958842.htm" target="_blank">March</a>, - a message he has <a href="https://www.mywealth.commbank.com.au/property/house-prices-rises-cyclical--rba-s-stevens-news20131029" target="_blank">repeatedly</a> <a href="https://www.smh.com.au/business/the-economy/glenn-stevens-says-aussie-dollar-needs-to-fall-further-20131213-2zapf" target="_blank">reiterated</a> since appearing on Seven Network’s <a href="https://www.abc.net.au/worldtoday/content/2010/s2858942.htm" target="_blank">Sunrise</a> in 2010.
But Australian investors aren’t listening to Glenn – they’re reading the media headlines, covering the latest findings in the BRW Rich 200, which shows property to be the ‘single biggest source of wealth’, and entrepreneurs “piling into property faster than ever”.
Banks remain disturbingly under-capitalised. 
“I’ve had land that has doubled in value in the past 12 months,” <a href="https://www.brw.com.au/p/investing/brw_rich_fatter_profits_for_property_tBzXYYtLFJ8zKUsFclS3eJ" target="_blank">said Harry Triguboff</a>.
But while Triguboff paid a lot for his land, but he did not make his cheque payable to the local school, park, rail network, or the array of public and community services that yield his land a healthy source of locational revenue that grants such windfall gains.
His payment went direct to the previous owner of the land, who pocketed the profit, while the funding needed for maintaining the facilities and attracting workers to the city, come from an elaborate network of taxes, which fall primarily on income and productivity – ‘the little people’.
<img src="/images/2014/07/14/cashmore-july-14-three.gif" alt="">
Source: <a href="https://www.worldeconomicsassociation.org/books" target="_blank">Bubble Economics</a>: Australian Land Speculation 1830 – 2013, by Paul D. Egan and Philip Soos.
This is the kind of rent seeking most of us have some experience of, a process that effectively punishes and disheartens the priced out sectors of the community, whilst encouraging the hoarding of land as the road that leads to riches – thereby ignoring the social and ethical problems that result from the process. 
The effect is to turn us into a nation of speculators where moral judgement is subverted by the unearned yields one can receive.
Investigate most societal problems, wages, housing, health, poverty, the loss of jobs to off shore markets, and this will be found at the root.
No one is born into poverty or inequality – these things are not by-products of nature – in a modern society the extremes we experience that lead to protests and riots over cuts in expenditure to welfare (a requirement exacerbated by the process outlined above) are due to policy and political ignorance.
When the Henry tax review in 2008 concluded: “Economic growth would be higher if governments raised more revenue from land and less revenue from other tax bases.”
It was onto something important.
Lifting taxes off labour and restructuring our tax and supply policies is a good start, but alone it won’t do.  Removing the power embedded in the banking industry to create credit based on their own vested interests is equally important, it would free up the creative capacity of the community and move instead toward a society and culture that is able to provide for all.
However it remains, that every effort in history to effect the changes suggested above have been fought by the establishment.  In this respect, change can never come from the top down. It requires a system that can return democracy to the people through a slow process of re-education, and it’s a system we need to advocate if social and economic justice is the goal.
But until such a time, it’s business as usual – and in this respect, the date for the next financial crisis has been set. 
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catherinecashmore-6LXia3pPQj

With rising land prices history is repeating and the date for the next financial crisis is set

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GUEST OBSERVATION
When the powerful gather for the G20 summit in Brisbane this November, the core mandate is to discuss measures to support global economic growth, including trade liberalisation, investment and infrastructure development.
These discussions are very important for tourism – an industry that relies on the free movement of people and goods. Issues such as lifting visa restrictions are central to the mandate of agencies such as the United Nations World Tourism Organisation. In fact, at a time where we believe that people can travel freely wherever and whenever they like to, an astonishing 110 million international tourists – or 17% of all international arrivals – still require paper visas to be able to visit G20 countries.
Reducing barriers through visa requirements is essential for international tourism. Research commissioned by the <a href="https://www.wttc.org/site_media/uploads/downloads/Impact_ASEAN.PDF" target="_blank">World Travel and Tourism Council</a> (WTTC) in 2014 showed that the Association of Southeast Asian Nations (ASEAN) would gain between 6 to 10 million additional international tourist arrivals by 2016 if they facilitated and improved visa processes.
Tourism relies on safe destinations and political security, something that cannot be emphasised enough in the light of current <a href="https://www.globalconflictmap.com/" target="_blank">“conflict hotspots”</a> globally (including the Middle East, Ukraine, and the South China Sea). <a href="https://www.iipt.org/" target="_blank">Some</a> even point to tourism as a force for peace as it fosters inter-cultural understanding and friendly exchange between nations.
Directly, the summit leads to travel of those participating in it. What could be coined <a href="https://www.uper.org/UPER-martinotti.pdf" target="_blank">“political tourism”</a>, political meetings and conferences induce substantial amounts of travel. For the G20 in Brisbane it is expected that there will be about 4,000 delegates (some of whom will arrive with their families), 3,000 media, and 5,300 police from interstate and New Zealand.
Business tourism is often overlooked when we discuss tourism, but the <a href="https://www.wttc.org/research/policy-research/business-travel-research/">WTTC</a> established a compelling link between business travel and global trade: one third of growth in trade globally over the last 10 years can be attributed to business-related travel and resulting increases in corporate productivity. WTTC’s analysis also shows that if business travel was reduced by one quarter for two consecutive years, global GDP would be 5% lower than if travel continued as normal.
The average business tourist in Australia spends A$280 per night, compared with a holiday visitor who spends $162.
Research on the economic benefit of G8 and G20 summits valued the 2009 and 2010 US and Canada summits at US$135 million and US$95.4 million respectively. The benefits measured include the immediate spending of participants and longer-term effects of increased investment, infrastructure and training. Similar numbers have been advanced as an <a href="https://www.brisbanetimes.com.au/queensland/study-shows-g20-hosts-reap-the-economic-benefits-20131202-2ym6j#ixzz34IbfpFoa" target="_blank">estimate</a> for the Brisbane summit.
How is Australia performing?
Eleven out of Australia’s top 20 international markets are G20 members. Amongst these are key markets such as China, the US, Japan, Korea and the UK. Other G20 countries, such as Russia, Brazil or Saudi Arabia, are not yet in the top 20 markets to Australia, but are seen as promising “emerging markets”.
Considering many of the traditional markets to Australia have been stagnating since the global financial crisis, and emerging markets are experiencing fast growth, increasing destination awareness in these countries represents a significant opportunity.
But focusing on one event, and dedicating tourism infrastructure to it, may also crowd out other forms of tourism, for example leisure tourists. Research on sport mega events has found that peaks in arrivals due to the event can be followed by a “low” in visitation, because participants or spectators time their visit for the event. This may be less relevant for political summits. However there might be other risks associated with political tourism. Hosting a political summit always bears the risk of “counter-summits” and activism that might undermine the destination image.
From a research perspective, major events have been analysed mainly with a focus on mega-sport events, for example Olympic Games, Commonwealth Games, and FIFA World Cups. Political summits have received very limited attention (with <a href="https://www.cuc.ac.jp/eng/gpac/papers/snu/SNUtourism.pdf">some exceptions</a>).
Research to establish whether political events are different from other events, perhaps because of their political nature and the types of delegates, is yet to be undertaken, and the Brisbane G20 provides an excellent opportunity to research the economic impact of the summit, and compare it to other events hosted previously in Australia.
Susanne Becken is professor of sustainable tourism and director Griffith Institute for Tourism at Griffith University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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po-LsXgBTHBmX

Hosting a World Cup is nice, but the G20 could prove more lucrative

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The receiver for the company behind retail ventures Crazy Clark’s and Sam’s Warehouse has announced the closure of 29 stores today, after the business recently <a href="https://www.smartcompany.com.au/growth/42635-jan-cameron-s-retail-adventures-goes-under-for-a-third-time" target="_blank">collapsed into receivership</a> for the third time in five years.
Most of the stores in the Retail Adventures discount chain will close by 20 July, with around half of them based in Queensland. More than 300 employees are expected to lose their jobs.
According to a spokesperson for KordaMentha, the receivers who were appointed to take control of DSG Holdings earlier this month, all stores will have “massive” sales over the next nine days to clear stock.
“Local communities are urged to go out and get a bargain and help us raise money to pay the staff entitlements,” the spokesperson told SmartCompany.
The move will bring the total number of store closures to 39 since DSG Holdings owner and former BRW Rich Lister Jan Cameron called in voluntary administrators Nicols + Brien on June 30. David Winterbottom and Rahul Goyal of KordaMentha were appointed receivers on 1 July.  
Of the 29 stores included in today’s announcement, 14 are in Queensland, seven in NSW, five in Victoria and three in WA and South Australia.
In an <a href="https://www.theage.com.au/business/retail/i-failed-jan-cameron-rules-out-new-retail-adventures-tilt-20140709-zt1fj">interview with Fairfax</a> earlier this week, Jan Cameron said she felt as though she had “failed”.
“I’m relieved that I can stop worrying and trying desperately to make the company work,” she said.
“I don’t feel bitter [but] disappointed for all the staff. Some of them are finding jobs but it will be very difficult for others.”
SmartCompany understands DSG Holdings owes around $20 million to trade creditors. However, this is a relatively minor component of the company’s debts. The business is also understood to owe another $10 million in staff entitlements.
At the time of entering receivership, Retail Adventures employed approximately 2,500 people across 143 retail outlets.
Cameron founded outdoor adventure and clothing company Kathmandu in the 1980s. She purchased Retail Adventures <a href="https://www.smartcompany.com.au/leadership/professional-development/40730-rich-tales-how-jan-cameron-lost-nearly-90-of-her-quarter-billion-fortune-in-four-years" target="_blank">out of receivership in 2009</a>, only to <a href="https://www.smartcompany.com.au/growth/economy/30298-jan-cameron-buys-back-retail-adventures-for--58-9-million-but-may-face-legal-battle-with-creditors" target="_blank">buy it back in 2013</a>, after the chain again collapsed into administration in 2012.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Retail Adventures saga continues as receiver closes 29 more stores

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Kirstin Ferguson has been appointed to the board of Leighton Holdings as an independent non-executive director, and as part of the construction company's current restructure.
She is currently a non-executive director of SunWater, Hyne and the Queensland Theatre Company, and is completing a PhD in corporate governance. She has also served as an NED with Queensland Rugby Union and as Chairman of the Thiess Advisory Board.
She was the CEO of Sentis before commencing her non-executive career, and a director of corporate services and COO at law firm, Deacons.
Ferguson is a strong advocate for women on boards and in leadership positions, and has previously <a href="https://www.propertyobserver.com.au/https://www.womensagenda.com.au/career-agenda/leaders/why-you-have-to-earn-a-sponsor/201212091301">shared her advice</a> to aspiring female directors with Women's Agenda.
This article first appeared on <a href="https://www.womensagenda.com.au/" target="_blank">Women's Agenda</a>.
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New female board member for Leightons

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The Australian Competition and Consumer Commission has raised concerns over supermarket giant Coles’ proposed bid to buy four Progressive Supa IGA stores in Western Australia.
While Coles has recently been under <a href="https://www.smartcompany.com.au/legal/42614-coles-categorically-denies-bullying-suppliers" target="_blank">scrutiny over allegations it has used its market power to bully suppliers</a>, the company is looking to further expand its market share in the west with the acquisition.
The stores, which are located in the Perth suburb of Dianella and the regional towns of Busselton, Halls Head and Bunbury, are not located close to any other Supa IGA stores in at least three of the four local markets.
While the supermarket duopoly is widely recognised across Australia, the Western Australian market also has to deal with the absence of players such as Aldi, Foodworks and 7-Eleven.
The ACCC said in a <a href="https://www.accc.gov.au/media-release/accc-calls-for-comment-on-proposed-acquisition-of-supa-iga-stores-in-wa-by-coles" target="_blank">statement</a> its preliminary view is that the proposed acquisition may result in a substantial lessening of competition.
ACCC Commissioner Dr Jill Walker said market participants had expressed concerns about losing the differentiated offering of their local Progressive Supa IGA stores.
“The ACCC considers that the differentiated offer of the Supa IGA stores reflects a competitive response to rival supermarkets and provides additional choice to consumers,” said Walker.
“The ACCC is also concerned that the proposed acquisition would remove access to Supa IGA promotions for shoppers in these areas.”
According to the ACCC’s issues paper, the newly acquired stores would be within a few hundred meters of existing Coles stores. 
A Coles spokesperson told SmartCompany the supermarket major is considering the issues raised by the ACCC.
John Cummings, president of the WA Independent Grocers Association, told SmartCompany that while the grocery market in WA is still one third Coles, one third Woolworths and one third independents, 30 years ago independent grocers enjoyed a 54% market share.
“What’s happened is over a period of time Coles and Woolworths have acquired independent stores and increased their market share,” says Cummings.
“I think only two stores have gone broke, the rest were bought by Coles and Woolworths.”
Cummings says the WA Independent Grocers Association has long been opposed to these “creeping acquisitions” which eliminate competitive power from the independents left standing.
According to Cummings, if the Busselton acquisition goes ahead, there will be two Coles stores within about 200m of each other, while there would be a difference of about 500m between the two Coles stores in Bunbury.
In Dianella, Cummings says there will be around 15 Coles and Woolworths supermarkets within a 3-5 kilometre radius.
“I mean, there’s got to be huge competition issues,” says Cummings.
Cummings also says small WA suppliers will be affected by the acquisition, as their deals with IGA stores are terminated.
“A lot of local suppliers will be put off the shelf. You have to be a national supplier to be stocked at Woolworths or Coles,” he says.
Cummings says while Coles will likely pay more than the going market rate to secure the IGAs, due to its market power, it is in a position to potentially lose money on the stores – a luxury which an independent grocer doesn’t have.
“That’s why we have the ACCC to maintain competition laws,” says Cummings. “The ACCC are saying [to Coles], this isn’t going to be as easy as you thought it was.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Coles’ bid to buy Supa IGA stores increases concerns over supermarket duopoly in WA

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It’s grey, rainy and miserable – we’re well and truly in the depths of winter.
If you’ve run out of blankets and the second hand warmth of your laptop isn’t cutting it, fan your home fantasies with these five fireplace offerings.
<ol>
<li>
<a href="https://www.modernhouse.co/listings/reeler-house/" target="_blank">Reeler House, Turramurra, NSW</a>
<img src="/images/2014/07/11/2.JPG" alt=""> The Turramurra house designed by Ian Reeler features a stellar fireplace surrounded by a glass prism. You’ll have a perfect view of the forest as you warm yourself by the fire, all while perched on that mid-century modernist icon, the Eames lounge chair. Reeler House, built in 1985, is set over 10 floors and was named the <a href="/news/reeler-house-the-1986-home-beautiful-house-of-the-year-listed">1986 Home Beautiful Home of the Year</a>.
</li>
<li>
<a href="https://www.realestate.com.au/property-acreage+semi+rural-vic-flinders-116563603" target="_blank" style="line-height: 1.3em;">Kaloon Park, Flinders, VIC</a>
<img src="/images/2014/07/11/1.jpg" alt=""> Another fireplace with a view comes from a home on the Mornington Peninsula. After a swim in the pool, you could thaw out by the central stone fireplace, overlooking the Bass Strait. Kaloon Park has five bedrooms and three bathrooms, with three living spaces and a separate private office. The home is on the market for $3.75 million.
</li>
<li>
<a href="https://www.modernhouse.co/listings/hollander-house/" target="_blank">Hollander House, Newport, NSW</a>
<img src="/images/2014/07/11/3.JPG" alt=""> Hollander House’s fireplace and chimney is much like all its other features – perfectly integrated with the rest of the house. The hand formed ferro-cement house <a href="/news/organic-1970s-hollander-house-the-gaudi-style-home-at-newport-listed">designed by David Hollander</a> and completed in 1971 follows the contours of the surrounding land. The organic three bedroom home also comes with an impressive outdoor fireplace with a freestanding chimney, so your winter garden party won’t be smoked out. <img src="/images/2014/07/11/4.JPG" alt="">
</li>
<li>
<a href="https://www.realestate.com.au/property-house-vic-sorrento-116537271" target="_blank">3518 Point Nepean Road Sorrento, VIC</a>
<img src="/images/2014/07/11/5.jpg" alt=""> Speaking of garden parties, this huge freestanding fireplace should suffice. But if wild weather interrupts, you can always duck inside and gather around the wide sandstone fireplace. Designed by Nicholas Day, this four bedroom, three bathroom cliff-side home has a tennis court, a pool, direct beach  access and a private boat shed.
</li>
<li>
<a href="https://www.realestate.com.au/property-house-vic-caulfield+north-113363683" target="_blank">14 Ward Avenue Caulfield North, VIC</a>
<img src="/images/2014/07/11/6.jpg" alt=""> For those who prefer the suburbs to the seaside, there’s 14 Ward Avenue. The Caulfield house, decked out in enough chrome and white leather to make Patrick Bateman feel at home, extends its hard contemporary style to the fireplaces, which are far from the organic offerings above. The pebble-filled gas fireplaces, warm despite their cold appearance, are dotted all over the home – there’s even one in the bathroom.  <img src="/images/2014/07/11/7.jpg" alt=""> 
</li>
</ol>
 
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