<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

Construction

<html><body>
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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SPONSORED POST
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.
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"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. 
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