<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the official departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The entity that submitted the plans is directed&nbsp;by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil's son.

Sunland paid $9.5 million for the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue late last year, and are now seeking to build a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="9b5ace00-dd04-4875-a2dc-1b7583c2da24" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_2.png?VersionId=GfaTxcd9XPo3IZ.jP9pGjYYrmx7i7iCQ" />

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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

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

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

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

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

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

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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A new group executive, enterprise services and chief information officer has been appointed, according to Ian Narev, Commonwealth Bank’s current chief executive officer.
David Whiteing has been appointed to take the role, and is an internal promotion, according to Narev.
“David is a highly experienced business and IT executive with a track record of delivering technology and process transformation in many industries, including financial services, both in Australia and overseas,” Narev said.
Technology and productivity are noted as the long-term strategies priorities, looking to build on their current “extensive investments” in technology.
Whiteing joined CBA in September 2013, as team lead for the Architecture and Planning team in Enterprise Services.
He was previously vice president of enterprise systems at BP in the UK.
His new role commences on 14 July 2014.
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jduke-EHk3XBmHkn

CBA’s internal promotion sees new group executive 

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GUEST OBSERVATION
It’s rare when something from Parliament obtains the obsessive attention of the real estate industry.
The Parliamentary inquiry into foreign investment in residential real estate is an exception. Since so many interesting facts have come to light through the inquiry, this post is a helpful cheat sheet to the most important ones.
Foreign Investment: It’s Actually Plummeting
One of the most interesting submissions to the inquiry comes from Urban Taskforce Australia. They pointed out that foreign investment in Australia is not increasing, but decreasing. (Read <a href="https://www.aph.gov.au/DocumentStore.ashx?id=d3eae632-8ae7-43b3-aff3-4680dc17993a&amp;subId=252519" target="_blank">their submission here</a>.)
That’s happening despite the greater number of buyers from China, who have been the salvation of any number of stranded vendors.
Overall foreign investment in Australian plummeted by 18%, according to official statistics, between 2011 and 2013. Some governments would consider such a large and fast drop to be a crisis in the making.
This is where the Chinese come in. In the context of rapidly falling foreign investment, the Chinese are the rare bright spot. I know this isn’t how things are usually presented, but it’s what the facts show.
The US, Singapore, the UK — these once-reliable friends have dramatically cut their investments in Australian property. With other friends deserting our real estate market, the Chinese are almost alone in sticking with us. 
Rather than abandoning our property market, Chinese have actually increased their investment. They haven’t yet reached the heights of $8.2 billion that the Yanks reached in 2012. However, with a 40% increase to $5.9 billion last year, the Chinese can hardly be accused of failing to pull their weight.  
Foreign Buyers Mean More New Buildings
The submission from Meriton, Australia’s largest apartment builder, showed that foreign buyers actually create new housing in Australia. (Read <a href="https://www.aph.gov.au/DocumentStore.ashx?id=a30eb4e3-146a-4a68-905e-06f75b083e13&amp;subId=252539" target="_blank">the Meriton submission here</a>.)
Meriton wrote that foreign investment "provides a significant contribution to the stock of new Australian housing," increasing supply for sale and rent.
Meriton founder Harry Triguboff says that foreign investors buy 13% of his new apartments – often off the plan. That provides "vital initial impetus” that makes possible the construction of Meriton’s new complexes. 
He also points to government data that shows that foreign buyers pay an average of $1.06 million for established homes and $646,000 for new dwellings. That’s much more than the national median and puts them in another league altogether than first home buyers.
While Foreign Buyers Spend More, They Pay Less
One submission to the Parliamentary inquiry involved actual new research. Lorenzo Casavecchia and Adrian Lee of the University of Technology in Sydney looked at about 74,000 established home sales. (You can <a href="https://www.aph.gov.au/DocumentStore.ashx?id=3e731a61-1f26-42c5-93ae-238064206991&amp;subId=252425" target="_blank">download their paper here</a>.)
They found that the number of Chinese buyers went up over time. That matches with the data we’ve already looked at, showing more Chinese investment in recent years.
What’s shocking, given what passes for accepted wisdom about Chinese buyers, is that the pair also found that, “on average, Chinese buyers pay 2.04% or $13,800 less than other buyers.”
I won’t get into every little detail of this fascinating research paper, so suffice to say that they controlled for just about every conceivable factor that could affect the price.
The low-down is this: while foreign buyers buy more expensive homes, they seem to get them at a bargain. That makes it unlikely that they are pricing other buyers out of the market. 
It’s hard to price someone out of the market when you’re paying less than the market price.
Perhaps the most poignant submission to the Parliamentary inquiry was from a Mr Kristijan Gjikoski. He wrote, simply and directly. Here are his own words, slightly edited for length (read <a href="https://www.aph.gov.au/DocumentStore.ashx?id=036c65fb-30ee-4a79-925d-1456f8b0a035&amp;subId=252269" target="_blank">his whole submission here</a>):
"Please don’t change any laws in relation to foreign real estate investment, [which is] creating jobs in manufacturing, trades and services. Long term overseas investment can been seen as a automatic stabiliser as when things go bad." 
Andrew Taylor is the co-CEO of <a href="https://juwai.com/" rel="nofollow">Juwai.com</a>.
Image courtesy of JJ Harrison/Wikimedia/<a href="https://creativecommons.org/licenses/by-sa/3.0/deed.en" target="_blank">Creative Commons</a>.
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ataylor-LB7AWVFTs9

The Parliamentary inquiry into foreign investment: A quick submissions cheat sheet

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Sydney’s inner and beachside suburbs, along with Darwin and Bunbury in Western Australia, boast the country’s lowest unemployment rates, <a href="https://www.theage.com.au/business/the-economy/sydneys-inner-city-joins-darwin-and-bunbury-with-lowest-unemployment-rates-20140612-3a0dg">Fairfax</a> reports.
While the national unemployment rate remained steady in May at 5.8%, rates for individual cities, suburbs and towns differ markedly.
The Sydney CDB, along with its eastern and inner-southern suburbs, hold the nation’s lowest unemployment rate at 2%, followed by Sydney’s northern beaches, Darwin and Bunbury at 2.3%.
Meanwhile, Ipswich in Queensland, south-eastern Tasmania and western NSW rank among the toughest places to find work.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Sydney’s inner and beachside suburbs have the lowest unemployment rates

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Foreigners’ access to the $5,000 New Home Owner Grant will be scrapped in ­tomorrow’s state budget.
Foreign investors have been able to secure $5,000 for each new home purchase. They represented 1.3% of the scheme's take-up.
The decision, heralded in today's Daily Telegraph, follows <a href="https://www.dailytelegraph.com.au/realestate/buying/foreign-buyers-are-cashing-in-on-nsws-new-home-grant-scheme/story-fni0cate-1226817098977" target="_blank">a campaign by the The Daily Telegraph since February</a> which secured the support of Opposition Leader John ­Robertson.
The grant will be only available to individuals who are Australian citizens or permanent residents.
The Telegraph's state rounds reporter Andrew Clennell published previously unavailable data that showed some $2 million has been paid out to non-residents.
“We’re all about making sure these grants help those in our own backyard,” NSW Treasurer Andrew ­Constance told the News Ltd audience.
Since the New Home Owner Grant scheme was instituted in July 2012, there have been 429 ­recipients who are non-residents — or 1.3% of recipients.
The figures come despite NSW Premier Mike Baird expressing recent concern about the lack of official information on foreign investment residential purchases in NSW.
His concerns were made to <a href="/expert-insights/investing/nsw-treasury-in-the-dark-with-firb-foreign-buyer-data">the House of Representative inquiry into foreign ownership of residential property</a>.
The scheme began after the government scrapped first homeowner grants for existing properties and raised them for newer properties.
There have also been a small number of multiple applications.
From now on the New Home Grant will be restricted to one grant per person per year.
Opposition Leader John ­Robertson called in February for the government to change the New Home Grant scheme.
“The O’Farrell Liberal government is paying $5000 to overseas property investors to buy homes and land in Australia – that’s money taken straight out of the pockets of young first home buyers,” Opposition Leader John Robertson said at the time on the then O'Farrell government policy.
“Young couples doing the right thing and working flat-out to save for that deposit are paying the price for the O’Farrell Liberal government’s bungling of this scheme."
Last week John Robertson noted ABS figures showed that just 1,099 first home buyers received financing to purchase a home in April 2014 – down from 1,191 in March 2014 and less than half the level of the 2,415 who received financing in March 2011 before the Liberals came to power.
“Mike Baird has been patting himself on the back over the weekend for extending the threshold for first home buyers purchasing new properties – the ABS has confirmed that he is locking more young families out of owning their own home.
“First home buyers now represent only 7.6% of the NSW housing market – they have plummeted from 18.3% share of the market in March 2011."
The Shadow Treasurer Michael Daley accused the government of giving a leg up to overseas speculators – "and people buying their second, third or tenth property."
The grant is paid as a discount on stamp duty for properties worth up to $650,000 and vacant land worth up to $450,000. 
<a href="/expert-insights/building/nsw-first-home-buyers-can-buy-up-to-750-000-under-extended-fhog">The grant will be extended to new home purchases up to $750,000 in another pre-budget advisory</a>. 
The prospect of overseas non-citizens buying up newly built houses and apartments in bulk - all receiving multiple $5,000 grants under the NSW New Home Grant Scheme - was alarmingly raised in the Daily Telegraph.
<a href="/news/stay-calm-local-buyers-dominate-in-sydneys-sutherland-shire">It was wrapped within the now refuted suggestion that these Chinese investors were keeping first home buyers out of the property market</a>.
 
 
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Foreign buyers to be denied NSW new home owners grant

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A key indicator of expectations for the housing market has revealed consumer attitudes towards buying a property improved from May to June, reversing a six-month trend of declining sentiment.
The ‘Time to buy a dwelling’ component of the Westpac-Melbourne Institute Consumer Sentiment Index rose by 11.4% from May to June, indicating more people thought it was a good time to get into the market.
The rise was the first time the index had improved since November 2013.
Westpac senior economist Matthew Hassan said the rebound was a positive sign but the improvement was tempered by a significant drop in expectations for house prices.
House price expectations fell 11.1% in June, compounding a 9.8% drop in May.
“While those expecting house prices to rise over the next 12 months still outnumbered those expecting declines, nearly a third of respondents now expect prices to be unchanged,” Hassan said.
The ‘Time to buy a dwelling’ index, with a reading of 121.2 in June, is still lower than the long-term average of 123.4. The index dipped below the long term average value in February 2014 for the first time since August 2012.
Broader sentiment stabilised after a sharp fall following the federal budget in May, with about three quarters of people surveyed recalling bad news on the budget and taxation, the highest proportion since the survey was started in the mid-1970s.
At 93.2, the general consumer sentiment index was down 8.8% compared with the same time last year, and well below the neutral 100 point level.
Across all measures of sentiment, including those concerning current and future family finances and the economy, the index was lower than a year previously.
Hassan said based on the weakness of the index, Westpac’s view was that the case for higher interest rates would not be strong enough until the middle of 2015 at the earliest. 
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Consumer sentiment reverses towards buying property: Westpac-Melbourne Institute index

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Protests that continue to erupt across the country against the federal budget consist of two sectors:
Those who are disadvantaged through cuts to government expenditure - young people, job seekers, groups on low-incomes, the homeless - against political parties who want to exploit the situation to swing the popular vote in their favour.
It comes at a time when many young Australian’s are growing increasingly disillusioned with what politics in a neo-liberal capitalist culture is able to achieve.
The various groups opposing the current budget may not be aware of the full backdrop that sits behind the issues they dispute.
Separating the politics of envy from the basic principles of equity is not an easy task, not only in the items we consider ‘wealth,’ but also in judging whether income is a true representation of skill and effort, or granted disproportionately at the expense of others.
Most however recognise a process that favours the rich - one where politicians subject themselves to the interests of lobbyists and promise what they need to gain a seat in power.
We’ve seen this most recently with the ICAC investigations.  Tens of thousands of dollars pouring into the major party coffers from property developers all claiming to be ‘legitimate’ – yet, as we know, you don’t hand over cash without expecting special favours in return.
It would be nice to think that democracy alone could remedy this, but democracy unless underpinned by good policy, has a fatal flaw - that of short-termism.
While voters will champion the environmental crisis of climate change and affordable accommodation, they will recoil at the thought of living near a wind-farm or high-rise block.
Public housing and commission homes are fine in theory, but not in the local neighbourhood, or indeed, anywhere in view.
We’ll welcome the stranger and rally in defence of the asylum seeker, but only on the condition they don’t take away our jobs or price the locals out of housing. In other words, you can come in, but just don’t join in.
No one cheers at the thought of saddling our younger population with student debt – however, when it comes to the cost of shelter, a different attitude arises. ‘Generation Whine’ are instead told to shut up and save up. 
While we desire a country built on the pillars of community, equity, and economic justice, it’s simply not possible in country that is pinned to the foundation of rising land values, as a necessity to fund retirement and most other lifestyle and business needs. 
The social consequence that arises from this costs us millions in welfare payments throughout the year.  Yet it is still advertised and promoted as the road to riches, creating a “FIRE” economy (finance, insurance and real estate) - disproportionally inflating land costs without due acknowledgement of the consequence.   
Unfortunately, the web of confusion that surrounds the subject has put capitalist democracy, which has managed to free so many from the dominance of politically oppressive and controlling regimes, under attack. 
Yet, capitalism, which in its truest form is simply a free market system of competing goods and services, is not what we have presently.
Today, faulty economic thinking has allowed items that are not made, or earned and by nature cannot compete; to be traded and profited from as if they were created capital. This has corrupted what should be a very good and fair system.
It’s important therefore to understand what wealth and capital is exactly.
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Wealth is not the paper and numbers in our bank account. Money is simply a measurement of the resources we need, to produce the goods and services we consume (capital) for both business and pleasure.
In simplest terms - a person’s wealth is made through his/her own enterprise; whilst a country’s wealth consists of its land and natural resources.
When we earn money in exchange for our skills and labour it can’t be considered unjust or unfair. 
However, when it comes through a government legislated process, of allowing some to profit at the expense of others, by trading items that are not capital or derived from any physical effort, this yields a special kind of unearned income, which in classical economics is termed “rent.”
Rent seeking can take on many forms – such as patents and government licences for example, which cripple competition from smaller industries and produce an unfair advantage. 
The <a href="https://www.businessweek.com/news/2014-06-10/uber-protests-spread-across-europe-as-taxi-app-backlash-grows#p2" target="_blank">Uber and Lyft revolution</a> is one such example. 
It threatens to undermine the cartel of the Taxi industry’s licencing monopoly, which gleans an economic rent from purposely-limiting the number granted.
Uber and Lyft offer a cheap and reportedly safe match-making alternative for consumers; however their progress has been repeatedly stifled by government intervention, determined to protect a <a href="https://www.smh.com.au/business/no-tears-shed-for-backward-taxi-industry-20140424-37696" target="_blank">monopoly and a culture of regulation</a> evidently fearing a cut to revenue.
The most damaging of rent seeking behaviour however, and the one that yields the most gains, is trading the economic rent of land. 
An increase in the market price of land is an expected result when economies are improving along with capital investment in infrastructure. Therefore, of all rent seeking behaviour, owning a plot of land in path of this progress yields not only the greatest windfall of passive gains, but is also used as a significant source of territorial and political power. 
This is not surprising when you consider all the goods we consume come from it.  Our oil, natural gas, timber, coal, and water reserves are the product of it. 
We travel on it, work on it, party on it, sleep on it, and bury our dead in it.
Wi-fi, airplanes, all forms of technology need it. We evolved from it and progress on it.
Try and think of an activity, or item, that does not include land, and you will come up short. 
However, the flow of income that comes from owning land over and above the value of building on it, when capitalised into the price, leads to a monopolist culture that feeds speculation, attracting a cabal of banking and finance interests and concentrating the vast proportion of a country’s wealth in the hands of a few, above the very real needs of many.
Rupert Murdoch ironically coined it best when, in his 1994 John Bonython lecture <a href="https://www.propertyobserver.com.au/https://www.cis.org.au/events/event/53/RUPERT-MURDOCH---The-Century-of-Networking-/0" target="_blank">“The Century of Networking</a>” he said: 
"Because capitalists are always trying to stab each other in the back, free markets do not lead to monopolies.  Monopolies can only exist when governments protect them."
This is in essence what the Arab Spring was all about. 
Many mistook it as a grasp for democracy – however it wasn’t. It was a grasp for true capitalism – the freedom to prosper unimpeded by onerous regulation or rent seeking behaviour. At its essence was a desire for economic justice, equal access to opportunity – matters we look to government to provide.
Since politician and the driving force behind the early settlement of South Australia, <a href="https://en.wikipedia.org/wiki/Edward_Gibbon_Wakefield" target="_blank" style="line-height: 1.3em;">Edward Gibbon Wakefield</a> (1796-1862), devised his grand plan of “systematic colonisation” – making land just so 'sufficiently' unaffordable as to create a willing workforce of labourers. Economists and politicians have done everything possible to distract public attention from what is nothing more than a modern day game of feudalism. 
They do this by allowing people to play a dangerous game of leverage, gambling on land price inflation by borrowing as much debt as possible to maximise their ‘capital gains,’ without acknowledging what is given with one hand, is taken with the other – or more accurately, from another.
This is clearly highlighted in the response to the budget.
Whilst rich land-‘lords’ and mining magnets grow wealthy, collecting their unearned windfall in economic rent – they ironically tell the young tenant saddled with student debt “so you think the world owes you a living?” while government stretches out its hand to the low waged worker commanding they “pull their weight.”
<img src="/images/2014/06/16/cashmore-june-16-one.jpg" alt="">
Source: <a href="https://taxreview.treasury.gov.au/content/downloads/final_report_part_1/00_AFTS_final_report_consolidated.pdf" target="_blank">Ken Henry tax review</a>: “The current charging arrangements distort investment and production decisions….. they fail to collect a sufficient return for the community because they are unresponsive to changes in profits.”
It is no coincidence that whilst far from a perfect system of equitable land reform, the greatest equaliser in Australia and the one that had the most profound social and economic effect on reducing inequality, was the Mabo Judgement over land rights for the Aboriginal people.
The monopolists in the mining industry stringently and shamefully lobbied against it, as they did most recently with at mention of a resource tax, turning it into a national crisis.
This is essentially why Clive Palmer entered politics. 
Each year <a href="https://www.minesandmoney.com/london/report-ernst-young-business-risks-facing-mining-and-metals-2013-2014/">Ernst &amp; Young</a> produce a business report for the mining and metals industry, highlighting the top ten risks that can affect fat cat profits, along with tips on how to avoid them. 
<img src="/images/2014/06/16/cashmore-june-16-two.jpg" alt="">
SWource: Ernst &amp; Young
Featured prominently is “Resource nationalism” (sharing the gains) with the comment;
“Miners have had to become more politically savvy... the most successful are building strong relationships with government” to...”educate on tax reform”.
It is against this backdrop, that he loveable founder of PUP, which claims to “Unite All Australian’s” has bought himself a seat in power by promising peace, prosperity and goodwill to all men, alongside a raft of economic goodies.
When Clive comes to town, Christmas does too, ower income tax, free education, higher pensions, you name it, Clive will promise it.
His <a href="https://palmerunited.com/national-policy/" target="_blank">policies</a> are overwhelming wishy-washy with no detailed assessment as to how they’ll be funded – but that doesn’t matter. Economic analysis is not the PUP agenda.
Instead, it will act in the best interests of its leader ensuring the abolishment of any mining and carbon tax, whilst driving the cost of land higher with incentives for home buyers.
However, the corruption of politics to favour the vested interests of leaders is nothing new.
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It is no coincidence that just about every housing policy designed to increase affordability results in quite the reverse.
This can be witnessed in any country that allows the economic rent of land to capitalise into the price, thereby becoming a tradable asset to gamble on.
All tax incentives such as negative gearing for example, simply inflate costs rather than reduce them.
Zoning policies create false scarcity by protecting affluent neighbourhoods from over development, restricting the use of fringe land with urban boundaries and onerous regulation, and advantaging existing owners by pushing up the price of marginal land – which buttresses the price of all land.
<a href="https://www.neweconomics.org/blog/entry/working-paper-is-inequality-exacerbating-our-housing-crisis" target="_blank">The evidence shows</a>, the richer vendors become, the more energetic they are to restrict development near their own land holdings – unless it acts to inflate values.
Many Melbournian’s will be familiar with the historical figure of <a href="https://en.wikipedia.org/wiki/Thomas_Bent" target="_blank">Thomas Bent</a> for example, who became the 22nd premier of Victoria. 
His corrupt dealings are well documented, not least, using his political clout to extend the railway line from Caulfield to Cheltenham, thus enormously increasing the value of his own property developments, which just so happened to fall alongside the proposed route.
A more recent example is being alleged in New Zealand.
The country is undergoing a crisis of housing affordability and has been termed the world’s most over priced.
Policy makers are tying themselves in economic knots to uncover solutions, with the central bank employing strict lending regulations to prevent exuberant speculation, while 'up-zoning' to increase supply is underway.
However, these ‘up zonings’ <a href="https://www.whaleoil.co.nz/2013/05/len-browns-zoning-hypocrisy-outed/" target="_blank">miss</a> Auckland mayor Len Brown’s spacious lifestyle block, which conveniently falls outside the Metropolitan Urban Limit (MUL). 
Mayor Brown, who has recently purchased an American V8 whilst sporting the public face of being very ‘pro public transport’, has uncharacteristically <a href="https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&amp;objectid=10788288" target="_blank">infuriated</a> his council’s transport leader, by rallying in defence of significant road projects which are reputed to have a beneficial and value enhancing effect on his own <a href="https://www.nbr.co.nz/article/len-browns-lifestyle-block-%E2%80%98outrageous-hypocrisy-nk-p-139628" target="_blank">estate</a>.
There are numerous academic studies world wide, which outline housing affordability problems, yet fail to identify the root cause and therefore effective solutions. 
Economist <a href="https://www.wealthandwant.com/docs/Hudson_Lies" target="_blank">Michael Hudson</a> points out in USA studies, how the magnitude of land-price gains are brushed under the carpet to hide the massive unearned profits reaped by those who hoard it.
The same phenomenon is happening in Australia, not only with the ‘<a href="https://avo.govspace.gov.au/" target="_blank">soft closure’</a> of the Australian Valuation Office and ‘rubbing out’ of first home buyer statistics from the <a href="https://www.smh.com.au/business/comment-and-analysis/first-home-buyer-statistics-not-adding-up-20140609-39sam">RBA chart pack</a>, but through budgetary cuts to <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbyCatalogue/745695D9AEBEFE64CA257CEE0004715C">ABS funding</a>, which threaten to end the official “House Price Index” (considered the most reliable market indicator) in favour of private <a href="https://www.rpdata.com/" target="_blank">unaudited data</a> providers, whose transparency and reliability are consistently questioned. 
When you appreciate how lucrative rent-seeking is to those in power, it is very easy to see how democracy fails us – working tirelessly to silence voices by politically reinforcing faulty economic theories, while strenuously working against efforts to liberalise them.
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Housing affordability and democracy: Who is really benefiting from our land policies?

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GUEST OBSERVATION
Northern Australia has vast potential for development. Just one proposed agriculture project of the many that I’m currently aware of would cover an area as big as metropolitan Brisbane, Australia’s third largest city.
Other single farms could be as large or larger than the entire <a href="https://en.wikipedia.org/wiki/Ord_River" target="_blank">Ord River scheme</a> in Western Australia, home to mainland Australia’s biggest freshwater dam at Lake Argyle, which can store roughly <a href="https://media.bom.gov.au/social/blog/39/when-dam-size-matters/" target="_blank">20 times the water in Sydney Harbour</a>.
Those are just some of the major projects on the drawing board for northern Australia, which have attracted the interest not only of Australian investors, but also investors from the US and China. Such foreign investment will be crucial to what happens over the next few decades in places such as the <a href="https://www.daff.qld.gov.au/business-trade/development/industry-development/flinders-gilbert-agricultural-zone" target="_blank">Flinders and Gilbert river catchments</a> in north Queensland.
But with vast potential also comes vast, and as yet not entirely well-understood, challenges. For instance, how do we fund the infrastructure to capture, store and distribute the water from the wet season to support agriculture all year round? And where are the most appropriate places to <a href="https://www.theaustralian.com.au/national-affairs/csiros-dam-hunt-helps-plan-for-north/story-fn59niix-1226948824851" target="_blank">build proposed new water storages</a>?
Those are some of the questions being asked again, with the federal government this week asking for public comment on its new <a href="https://northernaustralia.dpmc.gov.au/sites/default/files/papers/green_paper.pdf" target="_blank">Green Paper on Developing Northern Australia</a>. The paper is a precursor to a new national policy for our north.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/50889/area14mp/9gvrmhs8-1402536073.jpg"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/50889/width668/9gvrmhs8-1402536073.jpg" alt=""></a>
Northern Australia — particularly the Ord, Flinders and Gilbert river regions — have long been talked up as having potential for greatly increased agriculture, close to Asia. However, as the 2012 Feeding the Future paper noted, there are sensitive issues including indigenous land-use rights and environmental management. Source: <a class="source" href="https://www.dfat.gov.au/publications/feeding-the-future/feeding-the-future" target="_blank" rel="nofollow">Feeding the Future, Department of Foreign Affairs and Trade, 2012</a>, <a class="license" href="https://creativecommons.org/licenses/by/4.0/" target="_blank" rel="nofollow">CC BY</a>
Released this week by Deputy Prime Minister Warren Truss, the green paper is a good start in the process of developing a plan for the north.
The risk to successful development in the north is in underestimating both the scale of the opportunity and the scale and complexity of the challenges. Many past attempts at development have failed on both these counts.
So there is much work still to be done before being able to predict if this new push to develop northern Australia will succeed where past plans have failed.
Economies of scale
If Australia’s new national policy for developing northern Australia is to get anywhere, one of the most important issues for it to address is the huge scale of investment required to get major new projects off the ground.
We also need to define the paths to winning a significant share of high-value Asian markets.
The green paper suggests the northern economy should be diversified into areas other than mining and energy. Tourism and agriculture — and I’ll largely focus on agriculture, as it’s my area of expertise — are the two main options identified.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/50876/area14mp/cz3mkfgr-1402534545.jpg"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/50876/width237/cz3mkfgr-1402534545.jpg" alt=""></a>
The six possible policy directions to develop northern Australia covered in the new Green Paper. <a class="source" href="https://northernaustralia.dpmc.gov.au/sites/default/files/papers/green_paper.pdf" target="_blank" rel="nofollow">Green Paper on Developing Northern Australia</a>, <a class="license" href="https://creativecommons.org/licenses/by/4.0/" target="_blank" rel="nofollow">CC BY</a>
Some past failures in agriculture in the north can be attributed in transplanting agricultural technology from the south, rather than re-inventing it for the new northern environment.
Globally we have had much more research and development delivering technology into temperate agriculture rather than tropical agriculture, where we now have the greatest need in Australia and globally.
Australian research and development capability in this area is strong, and should provide a competitive advantage in developing our north, one of the few remaining areas in the world with potential for agricultural expansion.
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Working with local conditions
The green paper cautiously does not attempt to pick winners in backing specific industries.
Agriculture in the north may continue to depend upon the established industries <a href="https://www.qaafi.uq.edu.au/nbra" target="_blank">such as beef</a> for some time, but new agricultural ventures will have a wide range of options, requiring careful evaluation. Agricultural and food products that can thrive in northern Australian conditions need to be identified.
The scale of investment is a big challenge. For example, establishing new farms in remote northern locations could require new roads and rail to get the products to a port or market.
As the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-06-10/coalition-launches-green-paper-nothern-australia/5512456" target="_blank">Deputy Prime Minister noted this week, water storage and distribution systems</a> may need to be constructed. But new dams aren’t cheap, meaning large-scale investments would be needed.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/50870/area14mp/jn726d7k-1402529974.jpg"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/50870/width237/jn726d7k-1402529974.jpg" alt=""></a>
Despite covering almost half of Australia’s mainland, northern Australia has a relatively small population of just over one million people, or 5% of all Australians. <a class="source" href="https://northernaustralia.dpmc.gov.au/sites/default/files/papers/green_paper.pdf" target="_blank" rel="nofollow">Green Paper on Developing Northern Australia p.3 (a higher resolution image was not available)</a>, <a class="license" href="https://creativecommons.org/licenses/by/4.0/" target="_blank" rel="nofollow">CC BY</a>
Single farms as big as the entire Ord River scheme or possibly even larger are now being considered. That has major implications for the policies that need to be developed by government to attract large-scale investment.
Businesses of this type might resort to a fly-in, fly-out workforce, following the mining industry’s example. But the social implications of fly-in, fly out farming need to be better understood.
Investing in success
Development of the north will require that governments at all levels create an investment environment that will attract the significant capital essential for new ventures in the north. That means getting the balance right between removing red tape and ensuring investment in sustainable industries.
A key to success for Australian agriculture will be in successfully targeting high-value niche markets for food products in Asia.
These Asian markets are large and — despite the niche label — are able to take all that Australia can produce of most foods, as I’ve written about <a href="https://theconversation.com/australian-trade-beats-aid-in-boosting-global-food-security-22546" target="_blank">for The Conversation before</a>. Niche markets tend to pay higher prices, but they may also be highly competitive and require sophisticated marketing and quality control.
But rather than just producing food and then exporting it for others to process further, on-farm processing in northern Australia is likely to be essential to many businesses.
We’re not talking about small, family-run farms, but big businesses, covering bigger areas and able to capture greater economies of scale.
Alongside business, Australian scientists will have a key role in delivering the appropriate new crops, new animals and new farming systems that will be necessary for agriculture to succeed in the north.
Developing more remote areas of northern Australia comes with bigger challenges than setting up new ventures in established areas like the Murray-Darling region.
But the opportunities are there. Now we need to ensure that government policy settings and business plans are well-targeted, so that developing northern Australia finally moves on from being a long-held dream to becoming a reality.
Robert Henry is director, Queensland Alliance for Agriculture and Food Innovation at University of Queensland.
Robert Henry receives funding from University of Queensland, Queensland Government, Australian Research Council and Rural Industries Research and Development Corporation.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Giant steps needed to build up northern Australia’s potential

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NSW Premier Mike Baird has expressed concern about the lack of official information on foreign investment residential purchases in NSW.
His concerns were made to the House of Representative inquiry into foreign ownership of residential property.
His submission, made to the inquiry as NSW Treasurer, said the lack of detail made it difficult for the government to determine the effects of foreign investment on the housing market.
One of his concerns was whether temporary foreign investors actually sell their properties when they leave the country – a condition required by the poorly implemented law.
"What evidence is there that temporary residents sell their properties when they leave Australia?
"It appears difficult to determine the effects of the foreign investment due to a variety of data constraints," the submission said.
Mike Baird said it would be helpful to know if foreign investment was geographically concentrated.
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NSW Treasury in the dark with FIRB foreign buyer data

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It has been another eventful week for Kathmandu founder Jan Cameron, with reports her Discount Superstores Group is in the process of closing down numerous stores across its Retail Adventures chain.
<a href="https://www.smh.com.au/business/retail/jan-cameron-closing-50-more-stores-20140611-39wrc" target="_blank">Fairfax reports</a> 50 Sam’s Warehouse and Crazy Clark’s outlets across the group are expected to close, with Cameron allegedly negotiating a third party investment or sale of the business.
SmartCompany contacted Discount Superstores Group, but the company declined to comment
Cameron was in the news last week following the <a href="https://www.smartcompany.com.au/finance/42247-rich-lister-jan-cameron-s-fall-from-grace-continues-with-postie-plus-going-into-administration" target="_blank">collapse of Postie Plus</a>, a New Zealand clothing chain the former Rich Lister held a 19% stake in.
The Australian reports Cameron is also the major shareholder in baby food company Bellamy’s Organic, which is heading towards a $100 million initial public offering on the ASX next month.
Cameron bought the troubled Retail Adventures chain <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</a> in 2009 for $85 million, intending to use profits from the business to fund her environmental philanthropy and animal activism, which had become her sole focus following the sale of Kathmandu to a private equity firm in 2006.
While the Kathmandu sale netted Cameron $247 million, she spent the majority of that money just keeping Retail Adventures afloat.
In 2012, Retail Adventures again went into administration with $200 million worth of debt, but <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">Cameron bought it back the following year</a> after striking a $5.5 million deal with creditors, keeping the chain from liquidation.
Administrators Deloitte were not impressed, arguing creditors had more to gain from rejecting the offer, and making allegations to ASIC that Cameron’s company had traded while insolvent.
Brian Walker, chief executive of the Retail Doctor Group, says that the continued troubles at Retail Adventures are part of broader market forces affecting discount retail outlets.
“There are no surprises there – we had the Reject Shop <a href="https://www.smartcompany.com.au/growth/economy/42336-pacific-brands-and-the-reject-shop-in-a-sweat-over-cool-consumer-confidence" target="_blank">downgrading profits yesterday</a>. Discount department stores are struggling to cope with the rise of online, where you can get similar goods for even cheaper,” he says.
Walker says it would not be surprising if many of the closed stores are metropolitan-based, considering the strong competition in those areas from larger department chains.
“These stores are under pressure from stores like Kmart – the most profitable department store in the country – because their prices are low too,” he says.
“A lot of the problems discount stores are experiencing have to do with locational factors – there might be a future for these stores in deep, regional Australia, but maybe not for very long,” says Walker.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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More trouble for Jan Cameron with 50 Retail Adventures stores set to close

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Median prices rose overall over the March quarter, according to the Real Estate Institute of Australia (REIA) and the Bendigo Bank’s quarterly review.
The weighted average capital city median price rose by 1.9% for houses and 1.7% for other dwellings, including units and apartments. According to the REIA and Bendigo Bank’s figures, the weighted average median price for houses in Australia’s capital cities is now $606,517.
The price growth was much less acute than that seen in the first quarter of last year, where the weighted average median price for houses increased by 13.1%.
For the year to March 2014, Median house prices rose across all capital cities but Brisbane and Perth. Hobart saw the biggest price rise, with its median house price up 4.1%. It maintained the lowest median house price across the capitals at $385,000. Brisbane’s median  house price dropped 1.1% over the quarter; Perth’s dropped by 1.6%.
Sydney’s median house price remains the highest among all eight capitals at $782,973, up 3.1% for the quarter. Melbourne’s median house price rose by 3.7% over the same period to $652,500.
Non-house dwellings like apartments and units in the capital cities sat at a median price of $483,320.  Darwin saw an 18.0% increase in the median price of its non-house residences for the quarter to $525,000. Sydney and Melbourne’s median non-house residence prices also increased in the same period. Median prices for similar properties were down for the quarter in Canberra, Adelaide, Hobart and Perth.
Median rents for two bedroom units and other non-house residences increased in Sydney, Melbourne and Brisbane over the quarter to March, while they decreased in Perth and Darwin. Rental rates for Adelaide, Hobart and Canberra remained static. However, the median rent for a “two bedroom other dwelling” in Canberra was down by 6.8% from the same time last year. 
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