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

Joel Robinson

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

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

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

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

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

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

Construction

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Construction costs for industrial and commercial buildings remained unchanged in 2016 compared with last year, according to Burgess Rawson's latest 2016 Industrial Building Rates Update in Market View.

The indicative costs were compiled from one of Perth's leading industrial and commercial building companies and varied from $610 to $810 per sqm for gross building area, which was divided into three ranges spanning 500 to 5000 square metre, as evident from the following table.

<a href="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%2010.17.21%20PM.png" target="_blank">Click to enlarge</a>

<img alt="" src="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%2010.17.21%20PM.png">

<a href="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%2010.45.23%20PM.png" target="_blank">Click to enlarge</a>

 <img alt="" src="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%2010.45.23%20PM.png">

The development costs listed in the table above assume the following level of construction:

For warehouses: Concrete tilt construction; 8.5 m roof height; concrete floor; steel truss insulated roof and high bay lighting

For offices: Modern design with part glazed frontage, carpets, ceiling tiles, recessed lighting, ducted reverse cycle air conditioning, office component comprising about 10-15 percent of gross warehouse area.

[smartcode_project:default project_id=5910]
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jonathanchancellor-7SQnKwU6yx

Commercial building costs unchanged from last year: Burgess Rawson

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<img src="/images/2016/04/27/Holdencapital_banner.jpg" alt="" width="631" height="133">
SPONSORED POST
Post the GFC we saw the major banks consolidate their stranglehold on the Australian construction finance sector however, there are changes afoot which will likely see a major restructuring of the status quo.
As we have previously commented on, the additional capital requirements recently imposed on the Australia’s big 4 Banks in order to ensure their compliance with the ongoing BASEL standards is having a significant effect on the construction finance sector and we believe it’s the beginning of a permanent change in how funding will be both obtained but also who provides it.
These overriding regulatory requirements are not temporary responses to a specific event; they actually represent a permanent constraint on the banks which is impacting both their pricing and the terms and conditions being applied.
We have previously discussed how the need to rebalance their capital allocations has resulted in a need for the banks to reduce their exposure to the sector as construction finance requires a significant level of capital reserve allocation and as such is no longer an overly profitable product from their perspective, hence their reduced appetite.
While there is no doubt that as loans run off their book they will look to replenish, the reduced loan to value ratio’s and other more conservative terms and conditions are permanent changes to bank lending policies which will now fluctuate within certain lower risk parameters. we expect that there will be pricing increases albeit competition will keep that to a reasonable level.
So there is likely to be pressure on the banks to satisfy their client base but remain competitive with the competition which will rise from the second tier banks, specialist funds, private lenders and the like.
This represents a new world order in construction finance and has been clearly demonstrated with all four banks being currently either closed for “new to bank” business or operating with significantly reduced appetite and drastically reduced lending parameters.
Having said this, we don’t expect them to give up their market share without something of a fight once their capital positions allow. One major area they can attack is operational costs and there are two fundamental options open to them.
The first is systems and the second is staffing. With the risk assessment process rapidly becoming automated, we are seeing the banks become more and more reliant on data being input into models using cheaper offshore labour for overnight spread sheeting of financials and with loan approval itself becoming more automated utilising more and more specialised risk models, it is only a matter of time before most transactions are approved based on a simple process of relevant data being entered into the model and then “computer says” Approved! If this sounds like an oversimplification, think about how quickly we all adapted to the home loan process undergoing a similar revolution.
Staff are the single largest cost in this process and there is no doubt the banks are looking to manage those costs to their advantage. The other change we are seeing is a greater reliance on brokers to source deals. Again, if look at the housing mortgage market, current estimates are projecting that 60 percent of all new business will be sourced from brokers by the end of this year following the UK trend where it is estimated to be 75 percent.
In the construction finance sector, it is estimated that 16% of new business is broker generated and this is growing rapidly. We are seeing banks reduce their business development teams and actively courting brokers, effectively reducing staff overheads.
As we recently commented, developers can no longer expect their house bank to provide the necessary funding just because “they have always done it in the past”. They may well have had a sound 30+ year relationship with their bank but this does not guarantee their ability to borrow funds on the same terms that they have been used to.
The risk model will determine this as will their brokers ability to ensure that all the facts, good and less so are properly spelled out become key to a good outcome. For this reason, a professional broker who understands the bank requirements as much as those of his client is a key element in the process.
Today’s developer is now seeing an ever increasing number of options as competitors look to move into competition with the banks and other existing funders. The challenge is identifying which ones best fit both their specific project needs and a readjustment of expectations as to what constitutes an appropriate finance cost when assessing project viability as the cost of these funds is generally between 2-3 percent higher.
The challenge for brokers is that to be successful they need to deliver on both sides of the equation. That is, they need to deliver the best possible outcome for their client while ensuring they deliver a professional presentation to the bank/lender which meets their expectations in terms of detail and accuracy. The trust of both parties is key!
So, just as the housing mortgage market completely restructured with the coming of the wholesale funds and brokerage structures, so we expect to see the construction finance industry undergo a similar metamorphosis, ultimately with similar positive results for the end user. We are already seeing the re-emergence of various second tier banks, investment funds, managed trusts and various private lenders all vying for a share of what will continue to be a growingly sophisticated market.
Brokers now provide Australians with the best way to source cheap and competitive housing loans, so your construction finance broker also holds the key to successfully securing competitive construction funding for your next successful property development.
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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firstname-zEygzUaHDN

The changing face of brokerage and construction finance: HoldenCAPITAL

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Prime Minister Malcolm Turnbull has said he will call a July 2 double-dissolution election if the Senate does not pass legislation aimed at restoring the Australian Building and Construction Commission (ABCC).
The PM has said that:
<ul>
<li>since abolition of the ABCC, days lost to industrial disputes have increased by 34 percent;</li>
<li>two-thirds of all industrial disputes in Australia are in the construction sector and;</li>
<li>industrial disputes in Australia are at their highest level since 2010.</li>
</ul>
Are those assertions correct? Let’s check the data.
Are days lost to industrial disputes up 34 percent since the ABCC was abolished?
The ABCC was introduced in 2005, under the Howard government. Labor abolished the ABCC in March 2012 and replaced it with the Office of the Fair Work Building Industry Inspectorate.
When asked for a source to support his assertion about the 34 percent increase, the PM’s spokesman sent a table drawing on figures from the Australian Bureau of Statistics (ABS) data set on industrial disputes:
The spokesman said that:
ABS data suggests the introduction of the ABCC in late 2005 helped to reduce the rate of industrial disputes in the construction industry.
<ul>
<li>Pre-ABCC, the number of working days lost per 1000 employees in construction was five times as much as for all industries (56.1 versus 10.4 days).</li>
<li>During the ABCC’s operation, this dropped to around two times as much (9.6 days versus 4.2 days).</li>
<li>Since the ABCC’s abolition, the number of working days lost per 1000 employees in construction has averaged around 4.5 times the rate for all industries.</li>
</ul>
Indeed, we can clearly see from the graph below that, in construction, working days lost due to industrial disputes fell after 2005 and stayed low to 2009. Then, there was an increase in 2010 and big spikes in 2011 and 2012.
The big spikes in construction sector working days lost due to industrial disputes in between 2010 and 2012 coincided with several large construction sector <a href="https://www.fwbc.gov.au/fwbc-secures-200000-finding-against-cfmeu-and-mcdonald">disputes</a> and strikes.
As reported elsewhere, a 2014 Productivity Commission report concluded that:
The evidence that the ABCC stimulated material improvements in aggregate productivity or achieved cost reductions is weak… The ABCC is likely to have had its primary impact on unlawful conduct and on local productivity and costs at particular sites.
By taking the average number of working days lost in the construction industry (per 1000 employees) during the ABCC era and comparing it with the average number of working days lost in the construction industry (per 1000 employees) in the post ABCC era, it is possible to conclude it has risen 34% (or 3.3 days).
The PM’s statement is supported by ABS data.
Are two-thirds of all industrial disputes in Australia in the construction sector?
This assertion only true for the December 2015 quarter – which happened to be unusually high.
In other quarters, construction accounted for a much smaller proportion of working days lost, as the chart below shows:
Working days lost in construction due to industrial disputes has been consistently higher than the average across all industries since 2012.
It’s worth noting though, that the same data set, at certain time points, puts working days lost due to industrial disputes in the coal mining sector at much higher than construction.
The coal mining industry disputes were happening at the peak of the mining boom. Days lost due to industrial disputes spiking in 2010 and 2012 when a shortage of workers on major projects put unions in a strong bargaining position.
To sum up: the PM’s assertion that two-thirds of all industrial disputes in Australia are in the construction sector is correct for December 2015 only.
Overall, however, his comment is misleading because he is using the unusually high December 2015 quarter as a benchmark. The long run average for construction for 2010 to 2015 is just under 30% of all days lost (still the highest share of any industry). The average between 2005 and 2009, with the ABCC, was around 10% of all days lost.
Are industrial disputes in Australia at their highest level since 2010?
As shown in the chart below, ABS data shows the total number of industrial disputes in the 12 months ending December 2010 at 227. For the 12 months ending December 2015, the figure is 228.
What that time frame doesn’t show you is that, overall, the number of industrial disputes has declined greatly in the last few decades. The longer term trend is depicted in the chart below:
So the PM’s assertion that industrial disputes in Australia at their highest level since 2010 is correct, but relies on a selective choice of time periods.
The rate of industrial disputes has been trending down in recent decades, basically following the fall in trade union membership.
Verdict
It’s true that days lost to industrial disputes in the construction sector (reported to the ABS) have increased since 2010. They are now running at a higher level than when the ABCC was operating – at about 34% higher for the time periods indicated.
The PM’s statement that two-thirds of all industrial disputes in Australia are in the construction sector is correct for December 2015 only. Overall, his comment is misleading because the PM is using the unusually high December 2015 quarter as a benchmark. The long run average for 2010 to 2015 is just under 30 percent of all days lost (still the highest share of any industry). The average between 2005 and 2009, with the ABCC, was around 10 percent of all days lost.
The PM’s assertion that industrial disputes in Australia are at their highest level since 2010 is correct, but relies on a selective choice of time periods. There were more disputes in March 2010 and December 2009 than December 2015. However, for the time period he referred to, the claim is correct. 
Gerard de Valence is senior lecturer, University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gerard-de-valence-105933" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Are two-thirds of all industrial disputes in Australia in the construction sector?

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When is finance approval reliable? The lender process and terminology demystified.
The current lending market is certainly challenging for property developers, even those that have significant experience and a strong track record with a good project in a desirable location. It can sometimes be even more uncertain when, after lodging an application with a Financier, correspondence is received which appears at least at first glance to appear as a formal offer.
But how reliable is the document?
“Offers” from Lenders can take many different forms and I have outlined a few of these below:
Indicative Offer / Terms Sheet - Typically this will be the first correspondence issued by a Lender in response to a loan application. It will generally set out the Lender’s terms and conditions, including any special conditions and indicative pricing (interest and fees), that the Lender is prepared to consider the transaction on. A Borrower must understand that this does not represent an Unconditional Approval and will typically include a number of disclaimers confirming this. Depending on the Lender’s in-house processes the transaction may or may not have been presented to the internal decision makers. In a tender process, a Lender may issue a Terms Sheet to get a “seat at the table” for the next phase in the loan application process.
The Terms Sheet will often list the additional information required by the Lender to formally consider the loan application. At this point the Lender has no obligation to fund your project.
In recent times HoldenCAPITAL has witnessed first-hand Lenders, including the Major Banks, withdraw or materially change their terms of a Terms Sheet that has been issued. This can be done at the Lender’s absolute discretion and could relate to events unrelated to the Borrower or their project such as global economic changes.
Credit Approved Terms Sheet – Sometimes issued by Lenders, more often by Banks to at least demonstrate that the loan application has been presented to the internal decision makers. Once again, this document does not represent an Unconditional Approval. It merely highlights that the Lender’s internal decision makers have indicated a willingness to consider the proposal on the terms set out to the “front line” team i.e. the person or persons that the Borrower or Broker acting on behalf of a Borrower is dealing with, to issue this Terms Sheet.
Letter of Offer – This is issued as confirmation that the internal decision makers have formally approved your loan application. The Letter of Offer will still include loan conditions that must be satisfied by the Borrower and these will typically be listed as Conditions Precedent (to be satisfied prior to Financial Close and or the first monetary advance) and Conditions Subsequent (to be satisfied by an agreed date or post the first drawdown).
An example of a Condition Precedent for a Construction Facility may be that the Borrower needs to achieve an agreed level of presales to achieve sufficient debt cover for the Lender. Borrowers should be aware that the Lender will still reserve the right to withdraw its offer in the event that it identifies an issue which it considers may be prejudicial to its position if it continued to advance the funds.
Once a Borrower has accepted the Letter of Offer, the Lender will then instruct lawyers, which can either be in-house or external to draft the necessary loan documentation. Only after the Borrower and any Guarantors have executed all loan documentation and all Conditions Precedent are satisfied to the Lender’s satisfaction, will a loan be available for drawdown.   
Lender Processes
The process for a loan application will vary from lender to lender. Banks typically require the loan application to be reviewed by a number of internal parties before an Unconditional Approval is issued. This could include:
<ul>
<li>the Relationship Manager (i.e. the “front line” or the person a Developer first meets to discuss their requirements);</li>
<li>Property Risk – an area of the Bank that forms part of the “Risk” team that is principally charged with assessing the property risks associated with a transaction and the Bank’s entire property loan book. This would usually include instruction and review of valuations, Quantity Surveyor reports in respect of any build cost, a review of Building Contracts and Tri-partite Agreements, concentration risk in terms of asset classes or geographically, assessment of Sponsor, Builder, project, etc.</li>
<li>Credit Risk – The ultimate decision makers who are responsible for assessing the loan application and will take into consideration any recommendations made by Property Risk team. Depending on the risk profile &amp;/or size of the transaction, decisions can sometimes require more than 1 sign off.</li>
</ul>
Non-Banks do not typically have as many layers in the decision making process and may be less demanding in terms of the external consultant reports when compared to the Banks but will normally have some form of Credit Committee charged with the responsibility of reviewing the application and making credit decisions.
The HoldenCAPITAL team has more than 116 years direct property finance experience and have worked for a number of the Major Banks in Australia and are therefore highly qualified to guide property developers through the lending process. Contact one of the HoldenCAPITAL team to assist you with funding your next project.    
 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arranged over $300million of construction finance in 2015 across 52 projects. To discuss your project finance requirement please call (07) 3171 4200 or visit <a href="https://www.holdencapital.com.au/" target="_blank">www.holdencapital.com.au</a>
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When is finance approval reliable? The lender process and terminology demystified: HoldenCAPITAL

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The literacy levels of construction workers are low relative to other industries, and yet prescriptions about how to work safely are often buried inside long and complicated documents.
Our research suggests workers may not even read these documents before they commence work. Also, no matter how complex they are, documents cannot cover all eventualities. There’s a gap between the way work is described in formal health and safety documents and the way it is practised on site.
Visual methods, including video, can overcome some of these difficulties. For a long time videos have been used to communicate health and safety information to workers. But safety training videos are often produced by technical experts or media companies and shown to workers in stand-alone presentations. In such uses, workers are passive audiences to generic video materials.
Construction companies are legally required to consult workers on health and safety issues, but this is often done in a very formal top-down way, rendering it meaningless.
This is a missed opportunity because construction workers possess a wealth of knowledge based on their practical experience, often gained over many years. Research conducted at RMIT University (undertaken in partnership with Melbourne-based firm CodeSafe Solutions) examined the potential for digital and mobile technologies to be used to access, capture and share workers’ health and safety knowledge.
In the research, construction workers were involved in making films about their everyday work practices. Unlike documentary, in which subjects have little or no say in how they are portrayed, participatory video engages people in making films about their everyday experiences.
Construction workers received basic media training before making digital videos about their work practices. The video making enabled workers and managers to understand and reflect on the way work is routinely done and, in doing so, identify constraints and enablers of safe and healthy ways of working. Only when watching the video footage did managers and workers identify problems inherent in standard operating procedures that were either poorly understood or impractical due to physical features of the work environment.
Gaps were identified between the way work was documented and the way that it is routinely practised. Understanding these gaps meant they could be discussed and collaboratively resolved.
In several instances work equipment, processes or procedures were redesigned to improve safety. In some instances tasks that had been undertaken the same way for many years were redesigned to make them safer. Both workers and managers described how watching the video footage gave them a different perspective and enabled them to view and understand work in new ways.
In one example an access platform erection process was redesigned after workers were seen working adjacent to an unprotected edge.
The collaborative redesigning of a long established work task reveals how workers’ tacit knowledge – which is not easily captured or written down - was made explicit and usable through the participatory video activities.
Once made, the digital videos are disseminated at participating worksites using quick response codes, accessible via smartphones. Some workers share these videos with workers outside their organisations, while others show them to builders and principal contractors to explain why they need to work in certain ways to remain safe.
The workers described video as being a powerful way to share “know how” as opposed to “know what.”
Digital and mobile technologies are now an integral part of everyday life. Using a smartphone to capture and share knowledge, experiences and ideas in video format is not only possible, but now second nature to many. The research shows it can also improve construction workers’ health and safety.
Helen Lingard is professor, Construction Occupational Health and Safety, RMIT University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/helen-lingard-170971" target="_blank">here</a>.
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Construction workers safer when they ditch the manual: study

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GUEST OBSERVER
It’s reporting season, and over the past few weeks some of Australia’s biggest companies have been releasing information on how they’re travelling. These reports reflect key themes of how things are going in key sectors of the economy. Over coming days we’re going to report on the results a handful of major companies in key sectors, transport, construction, retail, mining, insurance and banking. Today we look at the construction sector.
A sluggish building climate in Australia, influenced by a slowdown in mining construction, is leading the biggest companies in the construction sector to trim costs, pursue smaller projects and divest in larger non-performing ones.
Building and construction represents an important part of the Australian economy directly accounting for approximately 8-12 percent of total economic activity. Of that activity, approximately half is accounted for by construction and half by building, which is split approximately two thirds residential and one third industrial.
Three companies in the ASX top 100, WorleyParsons, CIMIC (formerly known as Leighton Holdings), and Lendlease have construction services which extend internationally and serve to highlight those parts of the sector that are faring better than others.
 
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/115397/width754/image-20160317-30231-acywyn.png" alt=""><a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
 
WorleyParsons consults on engineering, procurement and construction, CIMIC undertakes engineering consulting and construction but is also active in mining. Finally, Lendlease has a higher exposure to residential construction relative to mining and resources. Despite the companies' similar arenas of operation, these three companies have fared very differently in the current climate.
WorleyParsons, with a focus on building services (that is, supporting companies in the construction industry rather than having major building programs itself), is sailing into strong headwinds and making pretty tough going of it, while some of the difficult groundwork already in place at CIMIC seems to be paying dividends, literally. Finally, Lendlease has benefited from some major residential construction projects to boost both revenue and earnings.
<h2>Threats to the construction sector</h2>
The high exposure of the construction industry to business and government demands means that it is particularly vulnerable. That is, it is highly exposed to economic cycles in sectors important to the Australian economy, particularly the mining sector.
The slowdown in mining construction resulting from China’s recent moderating growth rates has hit the industry hard. Australian raw material exports have been an important part of building the infrastructure to support economic growth in China and the construction industry has benefited immensely from building the infrastructure base to enable those exports. Economic signals from China have made investors more wary of commissioning new projects and expanding of existing ones.
Moreover, industry consultant, BIS Shrapnel, believes the “bust” in mining has a long way to run. This means that companies in the industry will have to rein in their expenses and pursue new business to ensure that the high fixed costs of equipment necessary for building and construction do not form a drag on the bottom line. The resultant competition leads to customers being able to force suppliers to cut their profit margin cuts, at the same time that many big projects are drying up.
The more fragmented, but much larger residential market is faring somewhat better, with a record number of new home approvals in 2015. Chronic under-supply is being somewhat alleviated by more residential blocks being released by State governments and demand has remained robust.
<h2>How the biggest companies are faring</h2>
Lendlease, a major player in both the residential and industrial markets, was able to more than offset lower earnings in infrastructure and construction <a href="">this half year</a> relative to last, by a more than doubling of its earnings from property development. Not only did this performance lead to a 12 percent increase in earnings for the company, it was also accompanied by a 15 percent increase in the work Lendlease has in the pipeline, suggesting an underlying strength of future earnings.
That, however, is cold comfort to WorleyParsons and CIMIC, watching from the adjacent industrial construction sector.
Despite WorleyParsons' size, it is still experiencing the second order effects of a wind down in mining. Long term, this has meant the company’s share price has fallen 93 percent in the past ten years. Short term, it has fallen 67 percent in 2015.
The management team at WorleyParsons has followed many of the recommended prescriptions associated with their predicament. It has worked on the cost structure. It has pursued smaller projects to utilise the company’s assets and maintain the bottom line and it has sought diversification, both geographically and by industry. For example, the firm recently won a contract with BAPCo, the Bahrain petroleum company, to extend and reconfigure its refinery.
However, though these initiatives have helped with revenue rising 140 percent in the past ten years, the end result has been the company is not making ground on the tsunami of red ink that’s pursuing companies in the industries in which it operates. Revenue has shown a pleasing and reasonably consistent upward trend, but earnings per share (on a reasonably stable capital base) have taken a nosedive from as high as A$1.50 to below 80 cents.
WorleyParsons' half-year results show the company was able to eke out a net profit after tax of A$23.1 million on revenues of A$4.2 billion. Management promised more of the right kind of medicine: reducing debtors, lowering overhead costs, divesting non-core and low performing assets, and searching for attractive growth opportunities.
On the other hand, CIMIC does appear to be making ground. It has long been a leading industrial construction company in Australia, with considerable overseas earnings. The company must be very pleased to leave the excitement of the bribery and corruption charges that dogged it in its last days as Leighton Holdings.
Hiccups during the takeover of Leightons by Hochtief, when the latter pleaded guilty to insider trading charges, similarly added to the rocky road over which the company has travelled to get to the relative calm it is enjoying at the moment. It may be making less news than it did in the stormy days of erstwhile CEO, Wal King, but the (reasonably) new Spanish management team is quietly notching up wins.
Its full-year profit of A$520 million and revenues of A$16.2 billion were at the top end of the market’s expectations and obviously look a look a lot healthier that those of WorleyParsons. The need for scale in the building industry makes it prone to mergers and acquisitions, while the high level of risk associated with major projects, means that often non-performing assets have to be split off.
While CIMIC is involved in a scrappy takeover battle with Sedgman and the Gorgon jetty project dispute with Chevron, these distractions go with the turf in this industry.
CIMIC, like WorleyParsons, is also taking all of the right steps in terms of operational efficiency, asset balancing, and growth opportunity generation. Moreover, it is doing it from a stronger base and thus with more impressive results.
CIMIC seems to be riding the cyclical waves of the industry reasonably comfortably and enjoying some moderate success in doing do. That is as well since the macroeconomic trends of a China slowdown and an associated slowing industrial building climate in Australia is unlikely to give it a promising tail wind any time soon. On the other hand, WorleyParsons has yet to witness any benefit to it bottom line resulting from its efforts to trim its sails to the new industrial climate.
Meanwhile, Lendlease has managed to insulate itself from chilly infrastructure winds by boosting its selective engagement in the buoyant parts of the residential housing market.
 
John Heath Roberts is professor, Australian Graduate School of Management, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/john-heath-roberts-188102" target="_blank">here</a>.
 
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Construction outlook: mining construction slowdown ripples across industry

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<img src="/images/2016/03/15/Holdencapital_banner.jpg" alt="" width="494" height="104">
SPONSORED POST
I am often asked to how I would advise developers who are in the formative stages of building their businesses and over time I have listened to the war stories and reflections of many experienced players in the market so I thought I would compile the following ‘Dear Younger Me ‘ letter drawing on their input and my own observations.
1. UNDERSTAND THE DEMAND AND SUPPLY DEMANDS: The key to having your project succeed where perhaps others do not, lies with having an appropriately planned and executed marketing strategy that is built around an understanding of what the market wants and being positioned to deliver it. It is no use building a project that the market doesn’t want, can’t afford or is spoilt for choice when considering. This means doing your homework, having the right marketing delivery strategy and engaging with your marketing team early in the design process to ensure you are in line with what the market wants in terms of product size, amenity and price.
2. DEVELOPMENT IS NOT CONSTRUCTION: You do not have to be a builder to be a successful property developer. What you do have to have is a good relationship with builders/contractors who have the appropriate skills and capacity to deliver projects for you and who will work with you early in the projects formative stages to provide input and advice regarding their practicality and cost to deliver. This is important to ensure that the vision does not drive the project beyond what the market can sustain. Remember also that your builder needs to make a dollar as well as you and often the cheapest price for a construction project is not the best way to go – if your builder fails during the course of a project then the consequences for you can be catastrophic.
3. DON'T BE SCARED OF DEBT: Almost every property developer has to borrow to make their projects become a reality – and probably more than they have ever borrowed before. For various reasons, this is an area that many developers spend the least amount of effort into either because it frightens them or is too far removed from the actual development process but the reality it is a critical driver in the overall business success. But just like any other part of the development process, harnessing the skills of the right professional can save you a lot of angst and actually improve the outcome. Utilising the expertise of your Finance Consultant to correctly structure and negotiate your borrowings is the most efficient and productive step in the process of turning your project into a reality. There will be times that an increase in borrowing costs is far outweighed by other benefits in terms of less restrictive conditions precedent, and you need to know when this is the case. Borrowed money should always cheaper than your own capital, most developers should have their capital working at 60-200%IRR per annum, if it isn’t then you should review your business model and talk to an expert.
4. ASSEMBLE A GOOD TEAM AROUND YOU AND KEEP THEM: You will soon recognise that your time is best spent on strategic management and forward planning. To do this you need to assemble a good team and utilise their expertise to complement your own skill set and fill any critical gaps. The key here is to secure a team that can grow with you and that is capable of managing their areas of responsibility while understanding how that fits with your overall objectives. So the key is to take your time and be prepared to make changes. Friends and family are rarely a good mix.
You will also need to remunerate them appropriately to ensure they are motivated and see themselves as part of a united team that benefits from the individual as well as collective contributions. The structure is not important, what is that they all see it as appropriate to what they are contributing. Building a team takes time but is the critical platform on which you will build a successful business. Importantly you do not need all the issues that come with having a big payroll.
Also remember that consultants provide a wide range of expertise in their respective fields to supplement your team’s experience. Pay them on a project by project basis but be sure to develop strong and lasting relationships with each of them to ensure loyalty for when things don’t quite as they were planned. Typically this would include a good town planner, architect, QS, finance consultant, accountant and lawyer.
Summary
The common theme here is utilising the expertise and motivation of other like-minded people either by employing them or engaging them as professional consultants to fill the gaps in your own expertise but also because at the end of the day, you cant do it all and expect to get the best outcome. So, put simply, the key lesson learnt from these seasoned developers is that following this advice will give you more time to focus on the areas that you create significant value in as well as giving each individual project the best chance of succeeding.
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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Dear Younger Me -- Four things I would have done differently as a young developer: HoldenCAPITAL's Dan Holden

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Has much of anything changed in the past six months regarding Melbourne's commercial construction output? 

There has been a spike in tower crane usage throughout Melbourne since the last census conducted during October 2015, contrary to the prediction made by Apartments.com.au. As of last week there were 161 tower cranes (give or take one or two units) plying their trade Melbourne-wide, a noteworthy jump of 17 relative to the October 2015 figure.

Whilst the top end of town remains steady and well served by incumbents such as General Cranes, MCG Cranes, Select Cranes and the like, the majority of growth has occurred in the suburbs where the proliferation of small and medium sized apartment development continues to flourish. Growth in the overall tower crane count is due to a new breed of smaller tower cranes employed to service this growing sector.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_1274.jpg" rel="gallery-all" title="Smaller cranes for smaller builds have become more popular"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_1274.jpg?itok=xaf9mRUa" title="Smaller cranes for smaller builds have become more popular" width="580"></a>

<figcaption>Smaller cranes for smaller builds have become all the more popular</figcaption></figure>Set aside the natural skew toward the City of Melbourne and the numbers reveal a relatively even spread of tower cranes throughout metropolitan Melbourne. Doncaster and Box Hill continue to be apartment hot spots as evidenced by the number of cranes in use through Manningham and Whitehorse. A notable mention also goes to Brunswick East with a handful of projects beginning their skyward path in recent months.

Of the cranes in use, a sizeable 85% are for residential use, including student accommodation and retirement living projects.

<table border="1" cellpadding="1" cellspacing="1" style="width:100%;"><tbody>
<tr>
<td style="width: 314px;">Residential Tower Crane Location</td>
			<td style="width: 174px;">Tower Cranes</td>
		</tr>
<tr>
<td style="width: 314px;">Melbourne CBD</td>
			<td style="width: 174px;">19</td>
		</tr>
<tr>
<td style="width: 314px;">Docklands - Nth/West/East Melbourne</td>
			<td style="width: 174px;">23</td>
		</tr>
<tr>
<td style="width: 314px;">Fishermans Bend/Southbank/Carlton/Parkville</td>
			<td style="width: 174px;">13</td>
		</tr>
<tr>
<td style="width: 314px;">Port Phillip - Glen Eira</td>
			<td style="width: 174px;">12</td>
		</tr>
<tr>
<td style="width: 314px;">Yarra</td>
			<td style="width: 174px;">12</td>
		</tr>
<tr>
<td style="width: 314px;">Moonee Valley - Maribyrnong - Moreland</td>
			<td style="width: 174px;">19</td>
		</tr>
<tr>
<td style="width: 314px;">Manningham - Whitehorse - Boroondara</td>
			<td style="width: 174px;">20</td>
		</tr>
<tr>
<td style="width: 314px;">Wider metro Melbourne</td>
			<td style="width: 174px;">19</td>
		</tr>
</tbody></table>
<h2>A period of firsts</h2>

The past six months have yielded a number of firsts, with the first tower cranes appearing within two urban renewal projects; Fisahermans Bend and Footscray's Joseph Road Precinct.

New logos mounted across Melbourne's skyline are evident with first time users of tower cranes continuing to flow through. The likes of Buildcept, Liberty Builders, AG Constructions and EyeQ Constructions all notching up the milestone of sorts since the last census.

The tallest hammerhead to be used in Melbourne also made its mark atop Brady Group's Vision Tower whilst a sorry MCG Cranes unit continues to sit forlornly atop 150 Queen Street. Achieving precious little over a two year period, the tower crane is a rather overt reminder of the legal struggles that CEL Australia have endured in realising Tower Melbourne.

<h2>Lend Lease powers ahead</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/25092494402_08124fb780_b.jpg" rel="gallery-all" title="The newest builds within Lend Lease's Victoria Harbour. Image courtesy Oh Yes Melbourne"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/25092494402_08124fb780_b.jpg?itok=JZasV5FT" title="The newest builds within Lend Lease's Victoria Harbour. Image courtesy Oh Yes Melbourne" width="580"></a>

<figcaption>The newest builds within Lend Lease's Victoria Harbour. Image courtesy Oh Yes Melbourne</figcaption></figure>Lend Lease is enjoying a purple patch with 12 tower cranes spread across two large residential developments and RMIT's New Academic Street project. The ever strong Victoria Harbour is currently sporting 6 tower cranes spread over a handful of residential towers which will accommodate near on 1,500 apartments upon completion

Toorak Park is also in full swing with five tower cranes delivering the residential enclave which holds an Orrong Road address. Lend Lease's 12 tower cranes in use sits behind the current 13 employed by Brookfield Multiplex, with residential builder Hamilton Marino in third place with 10 in use.

With Arup signed to Lend Lease's Melbourne Quarter, the developer also has another large-scale Melbourne project set to start.

<h2>High times ahead</h2>

The point at which the next Apartments.com.au Crane Count is conducted will invariably throw up two projects with newly installed tower cranes. Both Australia 108 and Aurora Melbourne Central are roughly tracking square with one another in terms of where they find themselves in construction progression.

The marquee projects will yield in excess of 2,000 private apartments between them and in Aurora's case an additional 200+ serviced apartments.

With build times out to 2019 and beyond, these two skyline defining projects will act as a visible 'backbone' for Melbourne's immense construction boom for some years to come.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_1573_0.jpg" rel="gallery-all" title="The current state of Aurora Melbourne Central"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_1573_0.jpg?itok=QUNDmq6n" title="The current state of Aurora Melbourne Central" width="580"></a>

<figcaption>The current state of Aurora Melbourne Central</figcaption></figure>
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silvermb

Pulse of the construction industry: Melbourne tower crane count March 2016

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Poorly performing Brisbane based property development company Devine has posted a $36 million after tax loss.
Its liabilities now exceed assets.
The developer, controlled by construction giant CIMIC, told the Australian Securities Exchange its primary focus was the completion of the strategic review and the upcoming discussions with its primary financier ANZ.
"Currently, there is uncertainty in regard to whether the group can continue to operate as a going concern to realise assets and discharge liabilities in the ordinary course of business."
The company said its results were "extremely disappointing" after three consecutive profit downgrades since August.
The company's chief executive, chairman and chief financial officer have all resigned with Devine's current chairman David Robinson, the only one of eight directors who remain at the company from last year.  
Devine, which has about 3000 shareholders, has also been subject to a takeover bid by CIMIC, with it highly likely that the company could end up delisting. 
The company which is subject to a takeover bid from its largest shareholder CIMIC, formerly Leighton Holdings, largely missed out on the apartment development boom in Brisbane.
Devine has 11,000 dwellings it can develop with about 2500 lots are in Gladstone. 
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Devine into losses as ANZ financing under cloud

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New South Wales has taken top spot in a new report by real estate forecaster Australian Construction Insights (ACI).
The summer 2015 edition of the ACI Construction Monitor provides analysis and insights into conditions within Australia's non-residential building and engineering construction sectors.
“In terms of geography, the Construction Monitor’s state rankings show New South Wales has finally taken out top spot," said Geordan Murray, the economist who worked on the report.
In the Construction Monitor rankings NSW has been held out of top spot...until now. After a series of seconds and thirds, the latest analysis shows NSW has finally reached the top of the table, narrowly edging out Victoria which holds down second spot ahead of the Northern Territory.
<a href="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.58.23%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.58.23%20AM.png" alt=""> 
 
"The recent performance of the state’s residential building sector has been has been well documented, however, the resurgence of the state’s non-residential construction sectors have not attracted the same level of attention,” Murray added.
Despite the overall top spot, NSW ranked second to Victoria for best performing jurisdiction in non-residential building, and was runner-up to the Northern Territory for best performing jurisdiction in engineering construction. 
Beyond the top three, there is a reasonably large gap to Tasmania and Western Australia in fourth and fifth places, respectively. South Australia and the Australian Capital Territory are a little further off the pace holding down sixth and seventh, while Queensland has dropped into last place.
“The gradual winding down of construction work related to the expansion of mining operations over the last few years is the most pervading factor affecting the overall level of non-residential and engineering construction activity nationally,” Murray said.
“Our forecasts show this is likely to remain the overarching dynamic for the next few years.”
“However, the large scale of the change in mining related work is concealing the countless variations in conditions affecting all the other segments of non-residential building and engineering construction.
“In an aggregate sense, falling expenditure on non-residential construction will be a weight in the saddlebag for Australia’s economic growth, lasting as long as it takes for mining sector expenditure to normalise.
Murray said the forecast showed growth in total non-residential construction is expected to return in 2017/18, but it does not need to take that long.
"If we see more favourable currency conditions and interest rates remaining low, we could see investment in non-residential construction make a positive contribution to economic growth sooner,” he concluded. 
<a href="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.58.33%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.58.33%20AM.png" alt="">
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