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

<html><body>
The 93 Bathurst Street, Sydney investment opportunity remains for sale.
Its net rent sits at $473,000 plus GST, fully leased to the global tenant in Patagonia.
<a href="https://www.propertyobserver.com.au/https://search.knightfrank.com.au/1498832" target="_blank">The property was passed in for $8.4 million</a> and remains under negotiation through Knight Frank agents Dominic Ong and Andy Hu.
The property is located on the southern side of Bathurst Street between George and Kent Streets, opposite Town Hall Square in the growing mid-town residential precinct.
The building underwent a refurbishment in 2010 including the installation of a new lift.
The Knight Frank marketing suggests the property will benefit from the CBD and South East Light Rail (CSELR) project which is due to be completed by 2019.
</body></html>

jchancellor-FAypfDUnLy

Bathurst Street offering to benefit from the Sydney light rail

<html><body>
The sale of the former German Consulate in South Yarra - listed with $5 million hopes - remains wrapped in something of a mystery.
The property was sold last October for an undisclosed price, with its delayed settlement terms yet to reveal its sale price. A caveat suggests its been sold to interests associated with Ian Wright of the Southbank offices of the Paragon Financial Group. Ian Wright founded BMF Construction in 1975.
There's been no development application lodged with Stonnington Council.
In partnership with Caine Property, the local developer BMF Construction director Ian Wright is busy building a prestige four apartment <a href="https://www.domainsouthyarra.com.au/residence" target="_blank">Domain</a> complex in Domain Street, South Yarra where the website suggests one apartment remains unsold through Kay &amp; Burton. It's a David Hicks-designed block with Jack Merlo landscaping on the holding that was bought last year for $6.45 million on nine month delayed settlement terms.
<a href="/news/vic/south-yarras-former-german-consulate-listed-after-five-decades">The 480 Punt Road offering</a> was listed by Colliers International agents Ben Baines and Jeremy Gruzewski, in conjunction with Matt Davis and Gerald Delany of Kay &amp; Burton.
The property was listed by the Federal Republic of Germany who acquired the large mid-Victorian residence in 1955.
The residential zoned, 2,800 square metre block contains several other separate buildings constructed between the 1850s and 1930s. 
Prior to the German Consulate occupying the site, it was owned and occupied by a number of large, well-known families including the Manifolds, Grahams and Morells.
Expressions of interest closed 17 September with Ian Wright's caveat noting the 28 October contract of sale.
There have been no further dealings on the title since then.
</body></html>

German consul South Yarra plans yet to be unveiled

<html><body>
Global listed property funds delivered the highest returns of all types of managed fund in May, adding 3.3% for the month, according to the Morningstar Australian Institutional Sector Survey.
The UBS Global Investors ex Australia index rose by 3.3% over the month to 31 May in Australian dollar terms. The index delivered 11.6% over the 12 months to the end of May and 14.8% over the calendar year to date.
UBS Clarion Global Property Securities fund performed the best over the month, gaining 3.8%.
AMP Capital delivered the highest returns over the 12 months to the end of May and year-to-date, gaining 13.5% and 16.3% respectively.
AMP Capital deputy head of global listed real estate James Maydew said the fund management team looked at individual REITs and aimed to identify the best ones. The fund currently has about 60 stocks in its portfolio.
“We have a quality bias to the portfolio construction. We believe quality will outperform throughout the real estate cycle ... When we say quality, we don’t just mean quality real estate. We also look at quality management, capital management and balance sheet,” Maydew said.
Commercial property in London looked attractive at this point in the property cycle, he said.
“The market there was impacted heavily by the financial crisis. Nothing was developed there for an extended period of time. We are now experiencing economic growth and jobs growth which is translating to falling vacancy rates, occupancy gains and rental tension,” Maydew said.
The manager was also attracted to REITs that had development capabilities. “We want developers because they are the people that can make the margin on real estate in a rising market. Real estate is cyclical and we have to be able to own those managers that can access that cyclical environment.”
Aged care is another theme that AMP Capital’s team has been pursuing. While the market for listed aged care providers in Australia is quite small, it is better established globally, Maydew said.
“Ageing populations are translating to more demand for aged care facilities ... That’s going to hold for a long period of time.”
Research house Morningstar upgraded AMP Capital’s global REIT strategy from bronze to silver during its latest review of funds in the sector, but downgraded it back to bronze following the departure of two London-based team members in April.
Maydew said there were 14 people in the team before the departures, and the aim was to rebuild the team to 15 people, including three people based in Europe.
He said the manager had received a large number of applications for the roles from all over the world and expected to fill the positions within the next couple of months.
It was considering relocating one or two team members from elsewhere in the world and backfilling those positions with new local recruits to ensure the team’s culture was maintained in the London office. 
</body></html>

zfielding-GvX3Uq9KTa

Global listed property funds bested all other fund types with highest May returns

<html><body>
NAME: Elliott O’Shea<img src="/images/2014/07/02/oshea-july-2-PFOFILE.jpg" alt="" style="float: right;">
POSITION: Senior negotiator, near city leasing team
COMPANY: JLL
Office Location: Brisbane
How long have you been in the industry?  
I have been in the industry for almost four years starting with Raine &amp; Horne Commercial based in Brisbane’s northern suburbs. During this time I specialised in sales and leasing in the near city areas.  I have recently joined JLL's near city leasing team as a senior negotiator.
What’s happening in the area you specialise in?
Brisbane’s near city leasing market is working out of a challenging 12-24 months in which weaker demand and contractions throughout the market have led to high vacancy rates. However, 2014 has started on a positive note with general sentiment in the office market on the improve and renewed activity in the sub-1,000 square metre office leasing market.
Describe the most interesting property you have sold.
A small retail centre in Brisbane’s fringe suburb of <a href="/news">Red Hill</a> presented a challenging investment sale with an eclectic mix of local tenants all on month to month tenancies.  I was given the task of resetting the leases before marketing the property for sale.  We ended up successfully completing the transaction late 2013 with a local investor in what was a challenging but fulfilling appointment.
What are the ingredients to being successful in your job?
I believe honesty and persistence are equally important characteristics to have.
What aspects of your role do you enjoy the most?
I enjoy meeting and working alongside people with a wealth of experience and knowledge in the property industry and overcoming the day to day challenges that this job continually throws up.   
Where would you invest a spare $750,000?
I would invest in a range of diversified property investments.
Which football team do you support?
Queensland Reds
What’s your favourite app or techno gadget?
My Android phone.  
</body></html>

po-LsXgBTHBmX

In profile: JLL's senior negotiator, near city leasing team, Elliott O'Shea

<html><body>
In what comes as an “end of an era”, the first ever Lord of the Fries store, on the corner of Elizabeth Street and Flinders Street in Melbourne’s CBD, closed yesterday.
After eight years of residence at shop 9/2 - 26 Elizabeth Street the Lord of the Fries franchise, specialising in vegetarian and vegan fast food for around the $15 a meal mark, is closing its doors.
“We couldn't come to an agreement with our landlord at this store so we must part ways,” the franchise’s official Facebook account explained. However, in the “not too distant future” they’ll be likely opening a replacement store just doors away. This should appease some of their almost 16,000-strong Facebook fan base - many of whom have taken to social media blaming a "greedy landlord" as the reason for the dispute. This has not be stated officially or unofficially by the franchisee.
However, they now have eight stores with a ninth opening at Melbourne’s Southern Cross station on the Bourke Street overpass. Advertisements for staff suggest this store was meant to open earlier this year.
The stores recently announced their potential expansion to India and the US, which seem to be logical choices given the popularity of vegetarianism in both locations. Just last year they expanded into Sydney, with a 537 George Street opening in August.
The Elizabeth/Flinders Street Lord of the Fries outlet was regularly busy, and held late night hours – 10am to 11pm Monday to Thursday, 10am to 4am Fridays and Saturdays and 10am to 10pm on Sundays.
The now defunct store is located next to Starbucks Coffee and Walkers donuts.
They opened the store in November 2005 having previously operated as a food van.
Since then, their stores have become strong cultural hang outs with eye-catching designs. For instance, their Northland and Chadstone outlets had Russell &amp; George design the alternative outlets with a "modern" theme. The Northland outlet is no longer in operation.
Other stores include Brunswick Street, Flinders Station, Chapel Street, Melbourne Central and Swanston Street.
The offices above the outlet at 276 Flinders Street, or Melbourne Square, have also recently been up for <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-5575685" target="_blank">vacant possession lease through Savills</a>.
Photo courtesy of Facebook.
</body></html>

jduke-EHk3XBmHkn

First Lord of the Fries outlet, Elizabeth Street, closes over landlord dispute

<html><body>
The last financial year surprised many with strong economic results. 
Despite concern around the Australian economy’s dependence on the mining industry, shares, bonds and property have all done well over the last 12 months. Interest rates remain at record lows and the economy continues to grow. 
As businesses are now <a href="https://www.smartcompany.com.au/legal/42593-a-guide-for-small-business-the-legal-changes-you-need-to-know-about-for-the-new-financial-year" target="_blank">planning for the new financial year</a>, we take a look back on the highs and lows of the past year and asks experts what to expect for the year ahead.
Sharemarket
Chief economist for the NAB, Alan Oster, told SmartCompany he expects the sharemarket to continue to perform well after finishing the year up about 12%.
“Basically the economy behaved as expected, maybe a touch stronger,” he says.
“It’s all about export versus domestic demand, which is still quite weak.”
He is tipping another “moderate” 10% increase in the sharemarket for the year ahead. 
Consumer confidence
Consumer confidence <a href="https://www.smartcompany.com.au/growth/economy/42155-consumer-confidence-hits-gfc-lows-450-jobs-to-go-at-qantas-midday-roundup" target="_blank">took a hit after the budget in May</a> but Warren Hogan, chief economist at ANZ, says it is “slowly coming back in recent weeks”.
“The overall economy has been pretty good given the challenges we face and a lot of uncertainty still hanging around after the financial crisis,” he says.
Looking to the next financial year, Hogan says there is still “a lot of uncertainty” about how much traction the non-mining recovery will get in Australia.
“We are still watching that closely, all the signs are that it should happen. If we get a broader lift in non-mining business investment and the job creation associated with that it could be a very strong year for Australia.”
Property
Australia’s strong economy has received a big boost from new home building, according to Harley Dale, chief economist of the Housing Industry Association.
“We saw a recovery in new residential construction over the course of the year and that generated demand in parts of the retail manufacturing and supply distribution sectors that you wouldn’t have seen in the economy without that new home building recovery,” he says.
But Dale warns new home building can’t on its own successfully transition the Australian economy away from mining related investment towards more domestic-focused activity.
“The year ahead is another strong one for new home building, we appear to be on track to build the second highest number of new homes on record and hopefully maintain historically high levels of new residential construction in 2015 as well,” Dale says.    
Interest rates
The Reserve Bank of Australia has <a href="/expert-insights/finance/rba-keeps-interest-rates-on-hold-for-july">held firm on interest rates again today</a> and experts predict this approach will continue over the next 12 months.
“We believe interest rates will remain on hold until the middle of 2015 with a slight chance of a further interest rate reduction this core cycle,” Dale says.
Similarly, Hogan says “interest rates are unlikely to do anything”.
“The consensus is for a modest increase next year, but I wouldn’t be surprised if we see interest rates in the same place,” he says.
Dollar
The fate of the Aussie dollar is “one of the uncertainties” hanging over Australia’s economy for the next financial year, according to Hogan.  
“At the moment it is a little bit high compared to the underlying fundamentals,” he says.
Hogan says he would like to see the Aussie dollar come down over the next six to 12 months to the mid 80c mark, which would help the economy.
“One of the risk factors for the year ahead is that the dollar will go up because the rest of the world is in such poor shape that capital finds its way to Australia and pushes the dollar up,”
However, Oster predicts currency will only drift down to “90c maybe a bit below”. 
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

cwaters-YrtBR88nBe

The end of financial year: Experts tip strong year ahead

<html><body>
An interesting article last week comparedthe returns from property and shares over 10 and 20 year periods respectively to December 2013. 
<div>Of course, <a href="https://www.smh.com.au/business/the-economy/property-vs-shares-which-did-better-20140619-3afda" target="_blank">the conclusions </a>usually depend on the preconceptions and prejudices of those making them, but let's take a quick squiz anyway...</div>
Equities
First and foremost, what the research shows is that a diversified, dividend-rich portfolio of shares continues to be a wonderful investment for those with a considered and long-term outlook.
Gross returns of 8.7% over the last 20 years imply that an unlevered $100,000 portfolio of shares in 1993 could have been worth a little more than $500,000 by December 2013, a fabulous performance by anyone's measure which easily outperformed the rate of inflation or returns from fixed income products.
Over the last 10 years, despite the global share markets crash during the financial crisis, gross returns inclusive of dividends from Australian shares recorded an even stronger 9.2% per annum, implying that you could have turned $100,000 into somewhere just shy of $250,000 over the decade to December 2013, with dividends having been reinvested.
The returns continue to be forever volatile, of course, but over a long time horizon a diversified portfolio of productive, profitable, industrial companies should deliver outstanding dividend income and capital appreciation.
Property
The returns on residential investment property were recorded as having "lagged" at only 6.1% per annum over the past 10 years.
As noted above, I don't usually bother too much with reading the conclusions of the commentators, because they invariably reflect the prejudices of those making them, on both sides of the property versus shares fence.
It's certainly the case that that residential property prices are likely to experience lower capital returns in the future than they have in times past, since we have already experienced the structural shift to lower inflation and equivalently lower interest rates, as well as having undergone a demographic shift towards a greater preponderance of dual income households.
My chart below shows that dwelling prices have acted in markedly different fashion by capital city over the last decade:
<div class="separator"><img src="https://4.bp.blogspot.com/-2F-1QRuV_iU/U6TfwmsjmHI/AAAAAAAAN9A/oa6buJoTOrk/s1600/ABS+long+term+prices.jpg"></div>
Stretch the figures back 20 years, and Australian residential property has returned an astounding 9.9% return per annum, a huge compounding annual return and the sorts of figures, one supposes, which allow people like me to be pontificating on matters of the world via the blogosphere rather than doing anything more productive with my time.
Over 20 years, property has been the strongest performing asset class by a sizeable margin, and a huge margin when leverage is taken into account.
Comparisons?
To a certain extent, there must be limited value in comparing returns on the two asset classes since they serve very different purposes and are as quintessentially different as chalk and cheese.
The main advantages of investment property may seem to be (a) the greater leverage used by average investors, and (b) that average punters appear more inclined to hold investments through downturns due to the lack of daily quoted dwelling prices.
Note, however, how these perceived benefits can also be disadvantages in disguise for the unwary.
In other words, those who 'get it wrong' can be burned savagely by these twin characteristics of real estate by (a) borrowing too much, and (b) holding on to a heavily leveraged asset which experiences a long, slow deflation in price or market value.
This article continues on the next page. Please click below. 
<hr class="system-pagebreak">
Example?
I'm not sure how much value there is in including a stylised example here, since property investors tend to be more focused than diversified and thus returns are heavily dependent on correct asset selection.
For example, I'm extremely grateful to be a property owner in <a href="https://www.dailymail.co.uk/news/article-2660654/The-house-gained-800-000-three-years-Huge-increase-price-home-South-West-London-latest-example-capitals-booming-property-market" target="_blank">south-west London, where prices are continuing to appreciate in a near-parabolic fashion</a>, but one suspects you'd have found few young owners of a sunny disposition in regional UK real estate over the past eight years.
In any event, where a capital growth rate of 6% per annum on a property is experienced over a 10 year period - which well-located capital cities properties have often achieved during the last couple of decades - this would have broadly turned a $500,000 house into a $900,000 house over that 10 year time horizon.
Assuming an initial investment comprising a 10% deposit of $50,000 plus, say, $25,000 of closing costs including stamp duty, transfer and legal fees, a compounding annual 6% capital growth created equity of an outlandish $450,000.
That is to say, mortgage debt remaining at $450,000, a property valued at $900,000 and correspondingly, equity of $450,000:
<div class="separator"><img src="https://3.bp.blogspot.com/-dVUboAO9RQc/U6TwO0diP5I/AAAAAAAAN9Q/Zq68S48NFfc/s1600/Resi.jpg"></div>
In other words, ignoring for the sake of simplicity any holding costs (due to low gross yields well located residential property may generate negative a cash flow in its early years before generating a positive income later in the life of the investment), you may have recouped your initial investment of $75,000 some six times over in a decade, a level of return on investment of closer to 20% per annum on the initial cash outlay.
That is to say, a rate of return that has simply not been achievable in another asset class with an equivalent level of risk for the average investor.
How has this ever been so? 
The main reason is that residential property mortgages have a unique triumvirate of conditions attached, as I discussed in greater detail in my piece <a href="https://petewargent.blogspot.com.au/2013/05/the-basic-characteristics-of-property" target="_blank">"The basic characteristics of property as an investment" here</a>:
<ol>
<li>Loan terms of up to 30 years...or even longer;</li>
<li>Low borrowing rates;</li>
<li>Low required deposits.</li>
</ol>
Will there be a property downturn in the next decade? 
There will. In this era of lower inflation, dwelling prices will actually fall in value in nominal terms far more often than than they have done in decades gone by.
Indeed, we have already seen this happen in the past decade, with prices falling in nominal terms in several calendar years.
Due to the high level of transaction costs, investment property should ideally therefore be held over a period of more than two decades, in my opinion. 
I only can wish that I had a dollar for every time someone asked me about their property's lack of 'performance' over its first year or two...
Summary
In summary, two very different asset classes that are nigh on impossibly difficult to compare in any meaningful manner.
It is possible to use significant leverage in the share market too, but unfortunately very few investors manage to achieve this with the requisite level of skill.
In the last decade, in theory you could have made a motza by leveraging heavily into the share market, but in reality, most - at the risk of committing the cardinal sin of verbing my nouns  - would have been margin-called out during the 2008 crash.
<div><img src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xjo&amp;pi=Index&amp;ct=3&amp;tf=M10&amp;ovs=&amp;si=Code%20not%20supplied&amp;tima1=0&amp;tima2=0&amp;bi=2&amp;bima=0&amp;comt=index&amp;ds=xjo&amp;dovs=0&amp;ex=ASX&amp;ex2=ASX&amp;val=1&amp;stmp=20140621115343362" width="400" height="275"></div>
Smart equities investors who kept their powder dry borrowed against the homes at low mortgage rates in 2009 to pick up parcels of shares in wonderful companies such as Wesfarmers (WES) and Commonwealth Bank (CBA) when they were trading at incredibly cheap Price/Earnings (PE) ratios and the market was "on sale".
In this way, share market returns can also begin to escalate massively, but for various reasons it seems to be the case that only a select few manage to pull this strategy off with any real panache.
The truth is that equities are a wonderful asset class for those who learn to treat shares as an income asset and derive their benefit from the ever-increasing tax-advantaged dividends with franking credits. 
Instead, most seem to ask: "Which shares are going to go up soon?" focusing exclusively on price action and indulge themselves in the endless and fruitless conjecture of market commentary, which is somehow miraculously to divine which direction the market will move in next.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' .
</body></html>

pwargent-M4siyDbqQY

Property or shares - which is a better investment?

<html><body>
GUEST OBSERVATION
"We are in the coal business. If you want decent hospitals, schools and police on the beat we all need to understand that." – <a href="https://www.news.com.au/national/unesco-slams-great-barrier-reef-management-youve-got-eight-months-to-fix-it/story-e6frfkw0-1226381188474" target="_blank">Queensland Premier Campbell Newman, June 2012</a>.
It was a rare moment of unscripted truth in Australian politics, which summed up decades of national policy.
The Premier was responding to United Nations report on the health of the Great Barrier Reef, warning that it could be listed as a World Heritage site <a href="https://whc.unesco.org/en/danger/" target="_blank">“in danger”</a> unless Australia stepped up its protection of the reef, particularly from increased port development. (The World Heritage Committee is due to discuss it again at a meeting <a href="https://theconversation.com/australia-courting-danger-with-the-great-barrier-reef-20411" target="_blank">in June this year</a>.)
Newman was not just articulating Liberal National Party policy; keeping Australia in the coal business has also been core to Labor’s economic policy for many decades, going back to the “no regrets” approach of <a href="https://apo.org.au/commentary/our-lost-history-climate-change" target="_blank">the Hawke/Keating years</a>.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43769/area14mp/pdr4v67g-1394673302.jpg">
Australia has massive coal resources, as this 2012 map shows. <a class="source" href="/news" target="_blank" rel="nofollow">Geoscience Australia</a>, <a class="license" href="https://creativecommons.org/licenses/by/4.0/" target="_blank" rel="nofollow">CC BY</a>
It’s not hard to see why the bipartisan consensus on coal persists. Coal is the <a href="https://www.dfat.gov.au/tradematters/qld" target="_blank">biggest export earner for Queensland</a> and <a href="https://www.dfat.gov.au/tradematters/nsw" target="_blank">New South Wales</a>, and our second biggest nationally, worth <a href="https://www.dfat.gov.au/publications/trade/trade-at-a-glance-2013/trade_performance_at_a_glance/part03_australias_trade_and_economic_statistics" target="_blank">A$41 billion in 2012</a>.
So here’s the surprising part. Over the past year, Newman has been asking Queenslanders to come up with a 30-year vision for the state, “<a href="https://www.youtube.com/watch?v=nM1rYlhjGVg" target="_blank">beyond politics, and beyond the next 10 elections</a>. It will be a genuine reflection of our collective aspirations for the future.”
Nearly 80,000 people have had their say – and in the draft plan currently under review by the state government, coal doesn’t rate a mention.
By the people, for the people
The Queensland government’s <a href="https://queenslandplan.qld.gov.au/">Queensland Plan</a> is significant because it’s among the most extensive public consultation processes ever undertaken by an Australian or state government. A leading American planning consultant and adviser to the Premier, <a href="https://www.nxtconsulting.com/team">Steven Ames</a>, describes the effort being made to hear views from across the state as a “virtuous circle”:
"Bottom line, the more engaged the public, and the more aware the government of public perceptions, the more effective and long-lasting outcomes that can be expected." – Ames, correspondence with the author.
Launched early last year, there have been major summits in Mackay and Brisbane, dozens of workshops and <a href="https://queenslandplan.qld.gov.au/journey/">hundreds of meetings across the state</a>, as well as online surveys and discussions, all feeding into a <a href="https://queenslandplan.qld.gov.au/journey/public-review-working-draft/assets/qld-plan-working-draft.pdf">draft 30-year plan</a>. The final plan will be <a href="https://queenslandplan.qld.gov.au/next-steps/">released in mid-2014</a>.
Subtitled “Our working draft created by Queenslanders, for Queensland”, the <a href="https://queenslandplan.qld.gov.au/journey/public-review-working-draft/assets/qld-plan-working-draft.pdf">44-page draft plan</a> distills all that community consultation into nine key subjects: education, community, regions, economy, health and well-being, environment, people, infrastructure, and governance.
More thorough than any public opinion poll, the draft Queensland Plan shows that Queenslanders want regional development and livable communities, but importantly they want these to be innovative, sustainable, and supportive of emerging industries.
Surprisingly, “coal” is nowhere to be found in the draft Queensland Plan. Instead, people have expressed a clear preference for developing agriculture, ecotourism, education, research and development, and alternative energy.
Among the top 35 goals outlined are that “We protect the environment” and “We invest in and adopt sustainable and renewable solutions”. Asked “What does success look like?” in achieving that latter goal, Queenslanders have said “Renewable energy will be the norm.”
An animated summary of the draft Queensland Plan and what Queenslanders say they want.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
Envisaging a different future
For so many people from such a coal-reliant state to envisage a generational shift away from coal is remarkable.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/43771/area14mp/8f84wdp6-1394673904.jpg">
Coal mines operating in Queensland (shown in red) and coal deposits (shown in yellow). Map created using interactive tools on 13 March 2014. <a class="source" href="https://www.australianminesatlas.gov.au/" target="_blank" rel="nofollow">Australian Mines Atlas</a>, <a class="license" href="https://creativecommons.org/licenses/by/4.0/" target="_blank" rel="nofollow">CC BY</a>
But it mirrors some other shifts in public sentiment and behaviour, in which ordinary Australians have moved ahead of politicians – sometimes catching federal and state governments off-guard.
Even a few years ago, who would have confidently predicted the recent trends in rooftop solar power? Certainly not major power companies like AGL, which have <a href="https://reneweconomy.com.au/2014/massive-losses-hit-energyaustralia-as-demand-falls-solar-soars-67443" target="_blank">reported hits to their profits</a> as more Australians try to control their rising power bills by going solar. Between March 2011 and the end of 2013, the proportion of Australian homes with solar panels more than doubled <a href="https://www.theaustralian.com.au/business/latest/three-million-sleep-under-solar-rooftops/story-e6frg90f-1226852425006" target="_blank">from 7.5% in March 2011 to 16%</a>, representing more than 3 million people.
However, imagining a future without significant coal export revenues will be harder for political leaders from both major parties.
For instance, even while the Gillard government was introducing a carbon tax, it went to great lengths to reassure its heartland about the future for coal, with Climate Change Minister <a href="https://www.climatechange.gov.au/ministers/hon-greg-combet-am-mp/media-release/gillard-government-supports-coal-mining-jobs" target="_blank">Greg Combet declaring in 2011</a>: “I can assure coal miners that their industry has a bright future under a carbon price.”
Will politicians listen?
Campbell Newman has shown himself to be a commendably unorthodox political leader in conceiving and championing such an inclusive, forward-thinking process as the Queensland Plan.
Campbell Newman invites Queenslanders to have their say on the state’s future.
So now the question is whether both sides of politics will heed the sentiment so strongly articulated in this bold 30-year community vision for Australia’s leading coal state.
Ultimately, it is a vision that neither the Liberal National Party nor Labor can ignore.
The alternative, as the people have rightly identified, leaves us dependent on the hope that Asia’s major coal consumers will never clean up their own industries. It’s <a href="https://www.smithschool.ox.ac.uk/research/stranded-assets/Stranded%20Down%20Under%20Report.pdf">a risky strategy</a>, as <a href="https://reneweconomy.com.au/2013/iea-casts-doubt-future-queensland-mega-coal-mines-51236">more analysts</a> are warning, particularly as our region’s economic powerhouse and main Australian market, China, has announced its own <a href="https://www.bna.com/china-outlines-environmental-n17179882762/">“war on pollution”</a> – much of it generated by burning coal.
John Cole is executive director, Institute for Resilient Regions at University of Southern Queensland.
John Cole is a member of the finance management committee of the Queensland Trust For Nature, a not-for-profit organisation that buys private property to protect at-risk ecosystems and secures management solutions through commercial contracts on privately-owned land. He was a delegate at the Queensland Plan Brisbane summit in November 2013, participated in a recent online "webjam" as an expert on balancing environmental protection and economic development, and remains actively involved in the Queensland Plan process. However, all opinions in this article are his.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
</body></html>

Queensland, Australia’s biggest coal state plans for life beyond coal

<html><body>
The Australian Bureau of Statistics (ABS) recently published labour force statistics for May 2014.
The data reported that the national unemployment rate was steady at 5.8%, the third month in a row it had been recorded at this level. The rate of unemployment is up from 5.5% a year ago but still well below the 6.25% many had predicted it would have reached by now.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-12.jpg" rel="wp-prettyPhoto[g3399]"><img class="aligncenter size-full wp-image-3400" src="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-12.jpg" alt="Chart 1" width="500" height="182"></a>
Source: RP Data, ABS
The full-time unemployment rate at a national level is slightly higher than the overall unemployment rate, recorded at 6.0%.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-22.jpg" rel="wp-prettyPhoto[g3399]"><img class="aligncenter size-full wp-image-3401" src="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-22.jpg" alt="Chart 2" width="500" height="185"></a>
Source: RP Data, ABS
Although we have seen a fairly stable unemployment rate of late, the employment participation rate is continuing to trend lower.
A key challenge for the government is to encourage the long-term unemployed persons back into the workforce. Although the participation rate data suggests that this may not be working, keep in mind also that with an ageing population more and more baby boomers are reaching retirement age and exiting the workforce.
The current workforce participation rate is recorded at 64.6% which is at around its lowest level since March 2006.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-32.jpg" rel="wp-prettyPhoto[g3399]"><img class="aligncenter size-full wp-image-3402" src="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-32.jpg" alt="Chart 3" width="500" height="181"></a>
Source: RP Data, ABS
Turning to actual employment, in May 2014 there was 11,564,555 persons employed nationally, 8,068,338 employed full-time and 3,496,216 employed part-time.
As at May 2014, 30.2% of all employed persons were employed part-time. As you would expect, females are much more likely to be employed on a part-time basis compared to males. As at May 2014, 16.9% of total males employed were employed part-time compared to 45.9% of females employed.
Although the proportion of males employed part-time is much lower than females it has been trending higher and is close to an historic high.
<img class="aligncenter size-full wp-image-3403" src="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-42.jpg" alt="Chart 4" width="500" height="182">
Source: RP Data, ABS
Over the 12 months to May 2014, the number of employed persons has increased by 98,700 persons with a 49,700 person increase in full-time employment and a 49,000 person increase in part-time employment.
At the same time a year ago, total employment had increased by 102,900 persons with full-time employment increasing by 22,100 persons and part-time employment rising by 80,700 persons.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-51.jpg" rel="wp-prettyPhoto[g3399]"><img class="aligncenter size-full wp-image-3404" src="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-51.jpg" alt="Chart 5" width="500" height="186"></a>
Source: RP Data, ABS
The national data highlights that the unemployment rate has seemed to have stabilised over recent months and jobs continue to be created however, the data at a state level is somewhat more varied. Based on the less volatile trend data, Tasmania has the nation’s highest unemployment rate at 7.5% and the Northern Territory the lowest at 3.3%.
As you can see there is a big discrepancy in unemployment on a state by state basis.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-61.jpg" rel="wp-prettyPhoto[g3399]"><img class="aligncenter size-full wp-image-3405" src="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-61.jpg" alt="Chart 6" width="500" height="179"></a>
Source: RP Data, ABS
Looking at the current tend unemployment rate compared to trend unemployment a year ago we can see some different trends across the states.
New South Wales was the only state where there was no change to unemployment over the year, steady at 5.5%.
The unemployment rate rose in Victoria, Queensland, South Australia and Western Australia with the largest increases in Victoria and South Australia.
In Tasmania, Northern Territory and Australian Capital Territory the unemployment rate is lower over the year with a substantial fall in the Northern Territory.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-71.jpg" rel="wp-prettyPhoto[g3399]"><img class="aligncenter size-full wp-image-3406" src="https://blog.rpdata.com/wp-content/uploads/2014/06/Chart-71.jpg" alt="Chart 7" width="500" height="181"></a>
Source: RP Data, ABS
The employment participation rate also varies significantly across the states. As you can see from the above chart, employment participation is trending lower across most states and below its recent peak in each state.
The state and territories with the highest participation rate are: Northern Territory (76.2%), Australian Capital Territory (70.9%), Western Australia (68.2%) and Queensland (66.4%).
Across the remaining states, participation is lower, recorded at 63.0% in New South Wales, 64.2% in Victoria, 62.0% in South Australia and 60.9% in Tasmania.
Overall the May release showed a level of stability returning to the unemployment rate.
Keep in mind the federal budget forecasts indicate the unemployment rate to peak at 6.5% however, it is important to note that previous government forecasts expected the unemployment rate to be at 6.2% currently.
With an ageing population we are likely to see the employment participation rate trend lower, which will increase pressure on business to improve productivity.
On a state-by-state basis the employment picture varies and it will important to keep an eye labour market conditions particularly in Victoria and South Australia where the unemployment rate has risen sharply over the past year.
Keep in mind upcoming high-profile manufacturing closures within the car industry are yet to really bite and will impact both Victorian and South Australian jobs.
</body></html>

tlawless-5VLUrbAk9s

Unemployment peaks lower than forecast on lower particpation

<html><body>
The iconic Bowral tourism property, Milton Park, has been sold to Chinese property interests.
The initial sale, including the business, was speculated at around $20 million.
The 11 hectare land transfer came in at $13 million, to Yufan Australia Pty Ltd, a company directed by Jianjun Yu and Guangxun Fan.
It last traded in 1998 when Aman Resorts supremo Adrian Zecha sold it to the Dobler family.
Milton Park, the Edwardian-style 1910 guesthouse in amazing gardens, has been internationally acclaimed. The Relais et Chateaux Group once accredited it as one of the top 50 country guesthouses in the world.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/06/27/milton%20park_0001_2.jpg.jpg" alt="">
The sale of the <a href="https://www.milton-park.com.au/" target="_blank">Milton House country house hotel and spa </a>represents the beginning of another new era for the property, although it is understood the existing Dobler family management will continue, complicating the sale price.
The Dobler family have retained substantial neighbouring holdings.
The Hordern family, of retailing renown, established Milton Park near Bowral in 1910 as their large private pastoral holding.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/06/27/milton%20park_0002_3.jpg.jpg" alt="">
The residence, built in the style of a Federation homestead, now has 60 deluxe suites and rooms on the 20 acre estate.
The Dobler's had operated the Kirkton Park Country House Hotel before their late 1990s acquisition.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/06/27/milton%20park_0003_4.jpg.jpg" alt="">
</body></html>

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News