<p><a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developers/fortis&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw3hvFB2uWTRfEyEcpTSnnK9" href="https://www.apartments.com.au/developers/fortis" target="_blank">Fortis</a>&nbsp;is continuing its stronghold on Sydn​ey’s eastern suburbs apartment market, launching&nbsp;in September&nbsp;its latest boutique&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developments/double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw0GI5S9-wNeiLUnM-d1uYkw" href="https://www.apartments.com.au/developments/double-bay-nsw-2028" target="_blank">Double Bay</a>&nbsp;development,&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw2YNouJQcFjiTTgVHbgDLA-" href="https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028" target="_blank">55 William</a>.</p>

<p>55 William presents&nbsp;just eight north-facing&nbsp;two-bedroom, three-bedroom and full-floor&nbsp;residences to the market, priced from $4.5 million.</p>

<p>The upcoming launch comes just weeks after Fortis secured approval for the $80 million development, its third eastern suburbs approval in two months. Construction is already underway, with completion targeted for 2028.</p>

<p>[smartcode_project:default project_id=152579 project_image_fid=376250]</p>

<p>55 William adds to a growing concentration of Fortis projects in and around Double Bay, a market the developer has become increasingly active in over recent years.</p>

<p>Fortis previously completed the nine-residence Marmont on New South Head Road, while it is currently developing a mixed-use residential and retail project at 12 Cross Street. Its wider Double Bay footprint also extends into commercial and retail development.</p>

<p>The developer's broader Sydney residential pipeline is particularly concentrated across the eastern suburbs, with projects spanning Doub​le Bay, Ro​se Bay, Wo​ollahra, Dar​ling Point, Poi​nt Piper and Eli​zabeth Bay.</p>

<p>[smartcode_project:default project_id=152579 project_image_fid=376253]</p>

<p>At 55 William, Fortis has again turned to MHN Design Union, the architecture practice behind several of its eastern suburbs projects, while London-based 1508 London has been appointed to handle the interiors and Wyer &amp; Co the landscaping.</p>

<p>The six-level building will comprise a combination of two and three-bedroom apartments, including a garden residence, full-floor apartments, a sub-penthouse and penthouse. Each residence will have secure basement parking and private outdoor space.</p>

<p>A rooftop terrace for all residents, along with select apartments, enjoys views across Double Bay Harbour and toward the Sydney skyline.</p>

<p>Ceiling heights will reach up to three metres&nbsp;in select residences, while the kitchens will feature natural stone and integrated Gaggenau appliances.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>The boutique nature of the project reflects the type of stock Fortis has increasingly targeted across Sydney's eastern suburbs, where larger apartments and smaller buildings are being pitched primarily toward local owner-occupiers and downsizers.</p>

<p>Fortis Group General Manager Ed Eve said the developer continues to see demand from buyers wanting to remain in the eastern suburbs but move into newer, lower-maintenance housing.</p>

<p>“We're seeing continued demand from local owner-occupiers and downsizers looking for high-quality homes that allow them to remain in the eastern suburbs, close to the lifestyle and community they know,” Eve said.</p>

<p>55 William is also one of the early projects to respond directly to the NSW Government's Low and Mid-Rise Housing reforms. Fortis had previously secured approval for just two townhouses on the 599 sqm site before revising the scheme to eight apartments following the planning changes.</p>

<p style="text-align:start">Situated one street back from Double Bay's water's edge, the project enjoys an enviable harbourside setting within walking distance of Double Bay Village and the ferry wharf.</p>

<p>[smartcode_project:default project_id=152579 project_image_fid=376252]</p>

<p>Fortis has increasingly made the eastern suburbs a major focus of its Sydney pipeline. Beyond Double Bay, it recently completed the 14-residence Piper in Point Piper and has projects underway or planned across Rose Bay, Woollahra and Darling Point.</p>

<p>The developer recently secured approval for Verano in Rose Bay, a six-level development comprising 21 two, three and four-bedroom apartments, also designed by MHNDU.</p>

<p>55 William&nbsp;is soon to be release to the market with VIP appointments commencing early September,&nbsp;with residences priced from $4.5 million.</p>

<p>[smartcode_project_cta:default project_id=152579]</p>


Joel Robinson

Fortis continues eastern suburbs push with 55 William launch

<p>UAE-based developer Arada has unveiled plans for a $2 billion twin-tower apartment development in Broadbeach, marking its first move into Queensland as it continues its rapid expansion across Australia.</p>

<p>Arada will develop 952 apartments across two towers on a prominent site opposite the Gold Coast Convention and Exhibition Centre, with the project targeted for completion ahead of the Brisbane 2032 Olympic and Paralympic Games.</p>

<p>The project represents Arada's largest commitment to the Australian market since arriving in the country in 2024 and significantly expands a local pipeline that has now grown to eight projects and more than 5,000 homes.</p>

<p>It will also be the first major Queensland project delivered by Roberts Co since the tier-one contractor was acquired by Arada Group in 2025.</p>

<p>Plus Studio has designed the Broadbeach development, which will comprise one, two and three-bedroom apartments across two towers connected by a landscaped podium.</p>

<p>A significant resident amenity offering will include lagoon and lap pools, a gym, sauna and steam room, alongside a mist room, infrared room and salt scrub facilities. Communal terraces, private dining areas, a library, residents' lounge and work-from-home spaces are also planned. Around 1,200 sqm of retail and hospitality space will occupy the ground floor.</p>

<p>The site puts Arada in one of the Gold Coast's most active apartment markets, directly opposite the convention centre and within walking distance of Pacific Fair, The Star Gold Coast and Broadbeach's dining and retail precinct.</p>

<p>It also has immediate access to the Gold Coast light rail network and sits just a few blocks from the beach.</p>

<p>Arada Group Chief Executive Ahmed Alkhoshaibi said Broadbeach represented an opportunity for the developer to expand beyond its initial NSW pipeline.</p>

<p>“Broadbeach is a world-class address that gives us the canvas to create a community of exceptional design and lifestyle quality that genuinely enriches the daily lives of the people who call it home,” Alkhoshaibi said.</p>

<p>“This is our first development outside New South Wales, and it reflects our growing ambition to grow in key urban markets around the country.”</p>

<p>Alkhoshaibi said bringing Roberts Co into the project would give Arada greater control over the development and construction process.</p>

<p>“Delivering this project through Roberts Co, our own tier-one construction business, means we can bring the quality, pace and accountability that our buyers expect.”</p>

<p>The move into Broadbeach comes as Arada accelerates its Australian expansion following its entry into the market two years ago. The developer has assembled a pipeline of eight projects comprising more than 5,000 homes, while the acquisition of Roberts Co last year gave the group its own Australian construction capability.</p>

<p>Globally, Arada has a development portfolio valued at $50 billion comprising more than 55,000 homes across the UAE, United Kingdom and Australia.</p>

<p>The Gold Coast is emerging as the next major market for the developer, with strong population growth and infrastructure spending ahead of the 2032 Games continuing to underpin significant apartment development across the coastal strip.</p>


Arada plots $2 billion Broadbeach towers in major Queensland move

<p>Sydney’s downsizer market is changing, with a growing cohort of buyers prioritising the right home over simply finding a smaller one.</p>

<p>Coronation Property Head of Sales Cam Porter says the traditional idea of downsizing does not necessarily reflect what many buyers are now looking for, particularly those moving from established family homes across Sydney.</p>

<p>Instead, he says they are increasingly becoming “right-sizers”, seeking lower-maintenance homes without sacrificing the space, amenity or quality they have become accustomed to.</p>

<p>“We are increasingly seeing buyers who are not motivated by the idea of simply moving into a smaller property,” Porter says.</p>

<p>“They are right-sizers. They want a home that is easier to manage and better connected, but they still expect generosity, quality and a floorplan that supports the way they live.”</p>

<p>It is a subtle but important distinction in a market where apartment developers are increasingly targeting established owner-occupiers.</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377495]</p>

<p>For many of these buyers, moving from a house to an apartment is not driven by a desire to dramatically reduce their living space. Instead, the appeal is in removing some of the maintenance associated with a larger home while retaining generous living areas, storage and enough flexibility to accommodate family and friends.</p>

<p>Coronation’s sales team is seeing buyers place particular importance on natural light, practical storage and additional rooms that can be used as guest bedrooms, home offices or secondary living spaces.</p>

<p>Kitchens and dining areas are also playing an increasingly important role, particularly for buyers who regularly entertain or have children and grandchildren visit.</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377494]</p>

<p>“These buyers still want their home to feel generous,” Porter says.</p>

<p>“They may want less maintenance, but they are not looking for less life.”</p>

<p>The challenge for the broader housing market is providing enough of the right stock to encourage that move.</p>

<p>While much of the discussion around Sydney’s housing shortage has centred on the number of homes being delivered, Porter says the diversity of those homes is equally important.</p>

<p>Older homeowners can remain in large family houses for longer when they cannot find an appropriate alternative in the neighbourhoods where they have built their lives.</p>

<p>“The decision is rarely as simple as wanting fewer bedrooms,” Porter says.</p>

<p>“People are weighing up their connection to a neighbourhood, the space they need for family, the quality of the home and whether it will continue to work for them over the long term.”</p>

<p>It also has implications beyond the downsizer market. Providing suitable apartments for smaller households can free up established houses for families who need the additional bedrooms and land, creating greater movement through the housing market.</p>

<h2>Lillian targets the next stage of apartment buyer</h2>

<p>It is a buyer Coronation is targeting at <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, its new collection of apartments, terraces and penthouses at Erskineville Village.</p>

<p>Designed by Silvester Fuller, Lillian has been shaped around larger living spaces, natural light and flexible floorplans, alongside landscaped areas, wellness amenity and communal spaces for residents.</p>

<p>The development will form part of Coronation’s broader Erskineville Village precinct, which will combine new homes with green space, retail, hospitality and new pedestrian connections.</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377688]</p>

<p>McPherson Park will sit at the centre of the precinct, creating a significant new green space alongside the project’s retail and hospitality offering.</p>

<p>For Porter, the opportunity is to give buyers another housing option without forcing them to leave the part of Sydney they already know.</p>

<p>“People should be able to change the type of home they live in without having to change their entire life,” he says.</p>

<p>“For many buyers, Lillian offers the opportunity to remain connected to the Inner West and the city, while gaining access to a more convenient, walkable and considered way of living.”</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377687]</p>

<p>Coronation will explore the changing <a href="https://lillianresidences.com.au/news/lillian-x-space-x-downsizers-event-27-august/">right-sizer market at an event on August 27</a>, bringing together experts across property, design and lifestyle.</p>

<p>Held in partnership with SPACE, Poliform and Downsizer.com.au, the event will include a property market outlook from economist Michael Blythe alongside discussion around the considerations facing buyers planning their next move.</p>

<p>Attendees will also be able to learn more about the residences and amenity planned at Lillian Erskineville.</p>

<p>[smartcode_project_cta:default project_id=135149]</p>


From downsizing to right-sizing: What Sydney buyers want from their next home

<p>Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.</p>

<p><a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.</p>

<p>[smartcode_project:default project_id=134873 project_image_fid=376196]</p>

<p>Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.</p>

<p>Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.</p>

<p>At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.</p>

<p>[smartcode_project:default project_id=134873 project_image_fid=376194]</p>

<p>The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.</p>

<p>Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.</p>

<p>Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.</p>

<p>[smartcode_project:default project_id=134873 project_image_fid=376181]</p>

<p>Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.</p>

<p>Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.</p>

<p>Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.</p>

<p>[smartcode_project_cta:default project_id=134873]</p>


The Maybelle brings 27-storey parkside tower to market near North Strathfield

<p>Melbourne developer <a href="https://www.apartments.com.au/developers/pdg-corporation">PDG</a> has unveiled its vision for the former Water Tank Site in Ivanhoe, which would see it transformed into a thriving residential neighbourhood, complete with a 2000 sqm public park.&nbsp;</p>

<p>Delivered in partnership with <a href="https://www.apartments.com.au/developers/development-victoria">Development Victoria</a>, the proposal would transform the prominent corner of Bell Street and Upper Heidelberg Road into a connected community comprising two residential buildings, generous public open space and shared amenities.&nbsp;</p>

<p>The vision includes 287 one, two and three-bedroom apartments, with a minimum of 10 per cent allocated to affordable housing, alongside a 2,000-square-metre publicly accessible park featuring a children's playground, activity lawn, indigenous planting, timber climbing logs, seating areas and a rock gathering circle.&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a>, the proposal draws on the site's industrial heritage, using a robust architectural language that references the former water tank through expressive structural elements and durable, self-finished materials.&nbsp;</p>

<p>Extensive landscaping has been woven throughout the development, creating a living landscape that strengthens connections to nature while responding sensitively to the surrounding neighbourhood. Two residential buildings ranging from three to 12 storeys are linked by a landscaped forecourt, creating a welcoming arrival experience and improving pedestrian connections through the site.&nbsp;</p>

<p>Residents would also enjoy more than 1,000 square metres of communal open space, including barbecue and dining facilities, vegetable gardens, landscaped seating pavilions and a dedicated coworking space.&nbsp;</p>

<p>PDG Founder and Managing Director Vince Giuliano said the vision reflected an opportunity to transform one of Ivanhoe's most recognisable sites into a place that balanced housing, community and landscape.&nbsp;</p>

<p>"This is an opportunity to reimagine an important site and create a neighbourhood that delivers lasting benefits for Ivanhoe," Giuliano said.&nbsp;</p>

<p>"We're creating much more than new homes. The vision brings together affordable housing, quality architecture, meaningful public open space and shared places that encourage people to connect, while respecting the site's history and its place within the local community."&nbsp;</p>

<p>Development Victoria’s Executive General Manager Precincts, Niall Cunningham, said the application is an important step for the government-owned site.&nbsp;</p>

<p>“This is about delivering more homes in a well-connected location, along with public open space that the Ivanhoe community will benefit from for years to come,” Cunningham said.&nbsp;</p>

<p>PDG was selected as development partner in late 2025 following a competitive tender process.&nbsp;</p>

<p>A planning submission for the project is currently being progressed through the Victorian Government's Development Facilitation Program, with positive early engagement from both Banyule Council and the Department of Transport and Planning.</p>


PDG unveils plans to transform landmark Ivanhoe Water Tank Site

Construction

<html><body><div class="page" title="Page 1">
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<div class="column"><span style="line-height: 1.3em;">GUEST OBSERVER</span></div>
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<div class="column"><span style="line-height: 1.3em;">Construction work done in the June quarter rose by 1.6%, driven by a 5.6% rebound in engineering work. </span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><span style="line-height: 1.3em;">Residential work surprisingly fell by 3.0% in the June quarter with commercial building down by 1.8%.</span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><span style="line-height: 1.3em;">Annual inflation in the building sector (residential and commercial building) eased from a 6-year high of 3.3% to 3.0%.</span></div>
<div class="column">
<br><span style="line-height: 1.3em;">The construction slump in Queensland continues. Queensland construction work has fallen 37% in almost two years.</span>
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<br><span style="line-height: 1.3em;">The data on construction work is important for builders, building material companies and developers.</span>
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<div class="column"><strong><span style="line-height: 1.3em;">What does it all mean?</span></strong></div>
<div class="column">
<br><span style="line-height: 1.3em;">Overall it is the softest of landings in the construction sector. After soaring by 34% in a three-year period to peak levels in late 2012, construction has since eased by just 8%.</span>
</div>
<div class="column">
<br><span style="line-height: 1.3em;">The ‘baton pass’ from engineering to residential building is proceeding but had a hiccup in the June quarter – engineering building actually soared, not fell, while home building eased. But the outlook is for more home building ahead and less spending on roads, bridges, railways and dams.</span>
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<br><span style="line-height: 1.3em;">The other good news is that inflationary pressures have not worsened in the high-flying home building sector. Still, residential building costs are up 3.5 per cent on a year ago and need to be watched.</span>
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<br><span style="line-height: 1.3em;">Trends in construction activity in Queensland remain a concern. In just under two years, construction work has slumped by 37% in Queensland – the most of any state or territory. By contrast construction work in the Northern Territory is up 84%. The lack of construction work in Queensland needs to be addressed by the State Government as it is robbing momentum from the economy. </span>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;"><a href="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2012.52.10%20PM.png" target="_blank" style="line-height: 1.3em;">Click to enlarge</a></span></p>
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<p><strong>What do the figures show? </strong></p>
<p><span>Construction Work</span></p>
<p><span>Construction work done rose by 1.6% in real (inflation-adjusted) terms in the June quarter after falling in the previous four quarters. Work done is down by 3.3 % on a year ago.</span></p>
<p><span>Public sector construction work fell by 8.4% in the quarter while private sector activity rose by 3.6%.</span></p>
<p><span>Construction work fell in six of the states and territories in the June quarter.</span></p>
<p><span>Leading the falls was ACT (down 14.6%), followed by Queensland (down 11.0%), South Australia (down 8.9%), Victoria (down 2.8%), Tasmania (down 1.4%) and NSW (down 0.1%). Construction rose in Western Australia (up 25.5%), and the Northern Territory (up 2.4 %).</span></p>
<p><span>Engineering work rose by 5.6% in the June quarter, after falling almost 25% in the previous six quarters. Engineering construction is down by 8.8% on a year ago.</span></p>
<p><span>Commercial (non-residential) building fell by 1.8% in the June quarter (private sector up 0.3%) to be down 1.8% over the year.</span></p>
<p><span>Residential building fell by 3.0% in the June quarter (private sector down 3.1%) but was still up by 7.4% over the year. Alterations &amp; additions rose 0.2% in the June quarter while new residential work fell by 3.5%. In trend terms, residential building rose by 2.5% – the eighth quarter of gains.</span></p>
<p><span>The measure of inflation in the construction sector (deflator) fell by 0.1% in the June quarter after rising by 0.3% in the September, December and March quarters. The annual rate of construction inflation fell from 1.5% to a 5-year low of 0.7%. Engineering prices fell by 0.7% in the quarter (down 1.3% over the year) while building prices rose by 0.6% in the quarter. Annual building inflation eased from a 6-year high of 3.3% to 3.0%. Annual inflation in home building remained at a 6-year high of 3.5%.</span></p>
<p><strong>What is the importance of the economic data?</strong></p>
<p><span>The Bureau of Statistics releases quarterly estimates of Construction work done. The estimates are based on a survey and cover around 85 per cent of the construction work done in the period. Revised estimates will be released in coming months. The data is useful largely for historical purposes but the work yet to be done estimates provide an early warning signal of future activity. The residential work figures give a good early guide to the strength of residential investment in the national accounts.</span></p>
<p><strong>What are the implications for interest rates and investors?</strong></p>
<p><span>There is plenty of work in the construction sector. But activity is patchy – soaring in some states and sectors and slumping in others. Builders, tradespeople and construction firms need to be mobile in the current environment.</span></p>
<p><span>The Reserve Bank will be pleased about current trends in construction. Overall activity has not fallen of a cliff, and while there is a sniff of inflation in home building, overall construction inflation is at 5-year lows. The RBA will continue to stay on the interest rate sidelines over coming months.</span></p>
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<div class="column"><a href="/images/2015/08/26/Screen%20Shot%202015-08-26%20at%2012.57.23%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
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<span><em>CRAIG JAMES</em></span><em> is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</em>
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cjames-5S2v74qSNK

Soft landing for construction work: Craig James

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<p><span>Builders Brookfield Multiplex has reached a significant construction milestone with the completion of stage two of the $222 million redevelopment of Stockland's Wetherill Park Shopping Centre.</span></p>
<p><span>Located at 561-583 Polding Street, the centre is becoming one of Western Sydney’s biggest and most popular retail and lifestyle precincts.</span></p>
<p><span>Stage 2 features approximately 5,600 square metres of new retail space comprising a 800 seat indoor / outdoor food court with 14 food outlets, three mini-majors and 20 specialty shops.</span></p>
<p><span>In addition, the stage creates a new basement level carpark and three rooftop levels of car parking, providing an additional 750 spaces.</span></p>
<p><span>Stage 2 also comprises a new Coles supermarket, located within the existing centre.</span></p>
<p><span>The redevelopment commenced in September 2013.</span></p>
<p><span>Construction of the overall redevelopment is scheduled for completion by early 2016.</span></p>
<p><img src="/images/2015/08/25/wetherill_park_artis1360030109.jpg" alt=""></p>
<p><span> </span></p>
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j.ballantyne1990-6AQqhLzZaK

Wetherill Park shopping centre construction continues

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<p>The pace of construction activity continues to quicken at Victoria Harbour as Lend Lease cashes in on the seemingly endless demand for apartments. Their Docklands precinct currently sees seven residential towers at various stages of construction, a far cry from the solitary project on the radar during 2005.</p>

<p>Add a number of ongoing infrastructure and civic projects within the precinct and the level of development activity within the waterside hub is truly impressive.</p>

<p>Leader of the pack is the Bates Smart-designed <a href="/buildings/concavo-8-waterside-place-docklands">Concavo</a> residential tower which is rapidly approaching completion, while the dual towers of <a href="/buildings/888-collins-street-docklands">888 Collins Street</a> directly opposite Concavo are making swift progress. 888 Collins Street's western tower has topped out while the 40 level eastern tower has nudged past a third the way to its eventual height.</p>

<p>Most impressive is the progress of <a href="/new-apartments/889-collins-street-docklands">839-889 Collins Street</a> which has seen four Koichi Takada-designed towers advance to construction in seemingly no time. Replacing intended commercial buildings along Victoria Harbour's waterfront, promenade works and foundation piling have commenced which will ultimately see an additional 1070 apartments added over the four buildings.</p>

<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/image20.jpg" rel="gallery-all" title="There's no shortage of construction within Victoria Harbour"><img alt="" class="image-article-full-width-580px" height="426" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image20.jpg?itok=6jn-hEIy" title="There's no shortage of construction within Victoria Harbour" width="580"></a>

<figcaption>There's no shortage of construction within Victoria Harbour</figcaption></figure><p>It's not all apartments at Victoria Harbour though with the <a href="https://www.melbourne.vic.gov.au/CommunityServices/CommunityFacilities/CommunityInfrastructure/Pages/DocklandsFamilyServicesBoatingHub.aspx">Community Hub at The Dock</a> set for completion later in the year. The hub will feature a new home for Docklands Yacht Club, the Victorian Dragon Boat Association and the Melbourne Outrigger Canoe club, plus a family services centre encompassing consulting, playground and communal facilities.</p>

<p>The Community Hub joins<a href="/news/talking-up-docklands-newest-showpiece"> Library at the Dock</a> which opened during 2014; both projects represent a shift toward providing community-based facilities within Victoria Harbour. In addition, demolition works continue further west along North Wharf Road in preparation for future development stages, effectively stretching construction along a roughly 500 metre front within Victoria Harbour.</p>

<p>Perhaps most interesting is the regeneration of Merchant Street. Near completed aspects of the project seek to add greater variety to the streetscape, with an eye toward creating a finer grain pedestrian experience and enticing workers to stay within the area post work hours.</p>

<p>Whether this is a natural progression of Victoria Harbour or an admission that the original builds were lacking where it matters - street level activation and design quality - is another topic altogether. Upon first viewing below the near complete corner of Bourke and Merchant is somewhat bland relative to the render which depicts a greater level of intricacy over the newly projected podium.</p>

<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/image21_2.jpg" rel="gallery-all" title="Community Hub, promenade works and Merchant Street. Render courtesy Lend Lease"><img alt="" class="image-article-full-width-580px" height="329" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image21_2.jpg?itok=oUhM6Hao" title="Community Hub, promenade works and Merchant Street. Render courtesy Lend Lease" width="580"></a>

<figcaption>Community Hub, promenade works and Merchant Street. Render courtesy Lend Lease</figcaption></figure><p>​So what was the state of Victoria Harbour during 2005? Only John Wardle's impressive <a href="http://www.johnwardlearchitects.com/projects/project/11-dock-5">Dock 5</a> residential tower was on the menu, creeping skyward over the course of the year. It's purple facade and overhung metal crown complimented the 148 apartments within the project, giving the precinct a focal point upon its completion.</p>

<p>Dock 5 followed on from both the Ericsson and NAB low-rise commercial buildings representing the initial projects within the expansive Victoria Harbour precinct. Providing exceptional spaces internally, the buildings arguably offered little by way of design nous externally; a failing that could be applied to many builds within Victoria Harbour over the years to come, namely Myer Docklands, Montage, Mosaic and Forte.</p>

<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/image22_2.jpg" rel="gallery-all" title="Dock 5 on the rise"><img alt="" class="image-article-full-width-580px" height="524" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image22_2.jpg?itok=9VsVrFJB" title="Dock 5 on the rise" width="580"></a>

<figcaption>Dock 5 on the rise over the course of 2005</figcaption></figure><p>If nothing else the seven to one ratio of apartment projects under construction over the decade-long gap serves to exemplify the rate at which apartment living has rocketed throughout Melbourne, particularly since 2000. Looking forward to 2025 and Victoria Harbour will most likely be complete as further projects creep westward toward the Bolte Bridge.</p>

<p>What the fully completed precinct will look like at that point is anyone's guess at this stage.</p>
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silvermb

Now and then: Victoria Harbour during 2015 and 2005

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<p>First photos have emerged of last Friday's tower crane accident at <a href="/buildings/marco-42-48-balston-street-southbank">Marco Melbourne</a> on Southbank. CFMEU Victoria have uploaded a host of images via their Facebook page which demonstrates the serious nature of the accident and the luck that allowed all involved onsite to escape with only a handful of minor injuries reported.</p>

<p>The failure of the tower crane has lead to road closures in the area until a point where the unit can be safely recovered. Over the past few days Worksafe, the CFMEU and engineers have come to agreement concerning the removal of the tower crane.</p>

<p>CFMEU Victoria states online that "This work is obviously high risk and unfortunately has the potential to be delayed by changes in weather. This is a highly unusual and dangerous situation and requires everyone involved to proceed with particular care to ensure the safety of workers and the wider community."</p>

<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/image159_0.jpg" rel="gallery-all" title="Images sourced via the CFMEU Victoria Facebook page"><img alt="" class="image-article-full-width-580px" height="410" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image159_0.jpg?itok=pk3uhCuC" title="Images sourced via the CFMEU Victoria Facebook page" width="580"></a>

<figcaption>Images sourced via the CFMEU Victoria Facebook page</figcaption></figure><p>Seen above is the crane deck sitting atop the concrete lift well with the associated jump form bearing the brunt of the collapse. While debris fell to the floor plate below the lift well, a counter-weight attached to the crane line during jacking also dropped to the surface below.</p>

<p>It's been widely reported that the collapse was due to a fault with the tower crane's internal climbing system which sees the unit mounted within the tower lift well. As has been pointed out by the CFMEU, there has been much incorrect speculation about the collapse which included a precast concrete slab being dropped from the crane.</p>

<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_5401.jpg" rel="gallery-all" title="Recovery of the stricken crane is set to begin"><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_5401.jpg?itok=GMhrirul" title="Recovery of the stricken crane is set to begin" width="580"></a>

<figcaption>Recovery of the stricken crane is set to begin</figcaption></figure><p>According to CFMEU Victoria, "There is a thorough investigation being undertaken and the precise cause of the incident may not be known until some of the continuing rectification work is complete so more evidence can be gathered and the investigation concluded. It's always best to deal with the facts rather than speculate."</p>

<p>The incident serves as a reminder of the risks associated with the construction industry and the vigilance required when working on complicated large-scale projects. Serious tower crane incidents in recent memory include the 2005 peel back of a tower crane boom during the MCG's Northern Stand redevelopment and a 2001 accident on a Southbank construction site which saw a tower crane's moveable counterweight dislodge and fall, resulting in the death of a worker.</p>

<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/mns_20050203.jpg" rel="gallery-all" title="MCG's 2005 Northern Stand redevelopment wasn't without incident."><img alt="" class="image-article-full-width-580px" height="418" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/mns_20050203.jpg?itok=eC05Ml2C" title="MCG's 2005 Northern Stand redevelopment wasn't without incident." width="580"></a>

<figcaption>MCG's 2005 Northern Stand redevelopment wasn't without incident.</figcaption></figure><p>As for Marco Melbourne, a sizeable Grove GMK 7450 mobile crane is positioned and ready to dismantle the tower crane with further works in removing the damaged jump form system also expected. Post clean up, a fresh tower crane and jump form will need to be sourced in order to recommence works on the western tower of the development.</p>

<p>At the time of the incident the western tower floor plate was at 13 levels above ground with the lift well another four levels above. Eventually the western tower will top out at 37 levels with the adjoining eastern tower reaching 32 levels, for a combined total of 356 apartments.</p>

<p>See more images of the aftermath on <a href="https://www.facebook.com/media/set/?set=a.534450093388638.1073741845.207237466109904">CFMEU's Facebook page</a>.</p>

<p><span style="font-size: 10px">Lead image courtesy CFMEU Victoria.</span></p>
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Inside Marco Melbourne's tower crane collapse

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<p><span>The ABS released its consolidated <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8782.0.65.001Main+Features1Mar%202015?OpenDocument" target="_blank"><span>Construction Activity</span></a> data for the March 2015 quarter this week. </span></p>
<div id="post-body-7503557364222292087" class="post-body entry-content">
<div>No real surprises to be found here, based upon what we have already seen.</div>
<div> </div>
<div>Resources construction continues to decline apace, with engineering construction in chain volume measures terms declining by a further 7.0% in the first quarter of the calendar year, to be down by more than 20% year-on-year.<br><br>Recent commodity price action suggests that the pace of the decline may even accelerate from here. </div>
<div> </div>
<div>On the positive side of the ledger, as implied by record high building approvals, residential construction has begun to respond to low interest rates, increasing very strongly by more than 5% in Q1 to be up by 11.9% over the past 12 months.</div>
<div> </div>
<div>Non-residential building was up by 1.3% in the March quarter, but has increased only by a paltry 0.7% over the past year.<br><br>Here's the chart: </div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-DDxrvVs-G9A/VamSG2DNnHI/AAAAAAAAW_w/9aD2jXo9y1s/s1600/Construction1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-DDxrvVs-G9A/VamSG2DNnHI/AAAAAAAAW_w/9aD2jXo9y1s/s1600/Construction1.jpg"><img src="https://1.bp.blogspot.com/-DDxrvVs-G9A/VamSG2DNnHI/AAAAAAAAW_w/9aD2jXo9y1s/s640/Construction1.jpg" width="640" height="280"></a></div>
<br><div>Piecing these figures together it's clear that residential construction alone will not fully compensate for the decline in mining capital expenditure, with total construction activity of $48.3 billion now declining back to the levels seen in Q4 2011.</div>
<div> </div>
<div>That said, $48.3 billion is still an elevated level of activity in historical terms...for now at least.</div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-YDgBofnRhbY/VamSGwEWp2I/AAAAAAAAW_s/O5apxmfsbgQ/s1600/construction2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><a href="https://4.bp.blogspot.com/-YDgBofnRhbY/VamSGwEWp2I/AAAAAAAAW_s/O5apxmfsbgQ/s1600/construction2.jpg"><img src="https://4.bp.blogspot.com/-YDgBofnRhbY/VamSGwEWp2I/AAAAAAAAW_s/O5apxmfsbgQ/s640/construction2.jpg" width="640" height="288"></a></div>
<br><div>The full force of the challenge will come when the last of the mega projects finally reaches completion, with a number of massive projects still in the construction phase such as the $34 billion Ichthys LNG project in the Northern Territory.<br><br><strong><span style="text-decoration: underline;">Regional centres</span></strong><br><br>The big picture is that as part of this rebalancing of the economy construction activity - and therefore employment - is shifting back away from the regions and towards the largest capital cities.<br><br>The latest unemployment rate figures for Sydney (4.7%), Brisbane (5.2%) and Melbourne (5.8%) may prove to be seasonally low, but the smoothed rolling 12 monthly data does suggest that unemployment rates in all three of the most populous cities may just be trending steadily down.</div>
<div> </div>
<div>
<a href="https://4.bp.blogspot.com/-7ysRISR7K_4/Varagu2GulI/AAAAAAAAXAw/Qkiq-q3Y2zc/s1600/CAPCITY.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://4.bp.blogspot.com/-7ysRISR7K_4/Varagu2GulI/AAAAAAAAXAw/Qkiq-q3Y2zc/s1600/CAPCITY.jpg"><img src="https://4.bp.blogspot.com/-7ysRISR7K_4/Varagu2GulI/AAAAAAAAXAw/Qkiq-q3Y2zc/s640/CAPCITY.jpg" width="640" height="290"></a></div>
<br>The economy is Sydney in particular is thriving. Indeed, with employment, retail trade and house prices all booming, monetary policy settings are all too easy for the harbour city.<br><br>Unemployment rates in Newcastle and Lake Macquarie seem to have steadied of late, but the trend in the Hunter is still upwards for now.<br><br>It's likely to be a tough period of adjustment for towns in the Upper Hunter such as Muswellbrook and Singleton, with further job cuts at BHP Billiton's Mr. Arthur reported to be "imminent".<br><br>It is worth noting that directly the mining industry is only a relatively small employer, but the reversal of the mining capital expenditure boom does have significant flow-on effects to other ancillary industries.<br><br>Labour market conditions had seemed to be picking up in the Illawarra, but it is nevertheless the case that the outlook for domestic steelmaking remains potentially bleak.<br><br><em>The Australian</em> put it fairly bluntly, stating that the closure of BlueScope's Port Kembla steelworks is "a matter of when, not if".<br><br>A recent poll in the Illawarra Mercury showed that more than 70% of respondents believe that the closure of the plant would cripple the Illawarra economy.</div>
<div> </div>
<div>
<a href="https://1.bp.blogspot.com/-1QB4q-M4068/Vardl9i8mhI/AAAAAAAAXBE/4CU4N8kIH2Q/s1600/NSW.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://1.bp.blogspot.com/-1QB4q-M4068/Vardl9i8mhI/AAAAAAAAXBE/4CU4N8kIH2Q/s1600/NSW.jpg"><img src="https://1.bp.blogspot.com/-1QB4q-M4068/Vardl9i8mhI/AAAAAAAAXBE/4CU4N8kIH2Q/s640/NSW.jpg" width="640" height="278"></a></div>
<br>Parts of regional Queensland have similar tales to tell.<br><br>Again, unemployment rates from month to month don't tell us a great deal, and things seem to have stabilised in some regions, but the general trend has been towards unemployment rates reverting higher as the resources investment boom phase falls away.</div>
<div> </div>
<div>
<a href="https://4.bp.blogspot.com/-gQD7HHdogLk/VaragsgYkoI/AAAAAAAAXAo/odZ9tSHh_O0/s1600/QLD.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://4.bp.blogspot.com/-gQD7HHdogLk/VaragsgYkoI/AAAAAAAAXAo/odZ9tSHh_O0/s1600/QLD.jpg"><img src="https://4.bp.blogspot.com/-gQD7HHdogLk/VaragsgYkoI/AAAAAAAAXAo/odZ9tSHh_O0/s640/QLD.jpg" width="640" height="286"></a></div>
</div>
<br><div>Towns facing something of an uphill struggle include Dalby, Chinchilla, Roma, Moranbah, Emerald., Dysart, Bowen and others.<br><br>Gladstone has also been going through its own transition phase over the past year or two.<br><br>Tourism regions on the other hand should benefit from the ongoing depreciation of the Aussie dollar.</div>
<div> </div>
<div>
<a href="https://3.bp.blogspot.com/-yeRSdxu4_5w/VatfKwQNUBI/AAAAAAAAXCQ/AgVE3IgBslA/s1600/tourism.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><a href="https://3.bp.blogspot.com/-yeRSdxu4_5w/VatfKwQNUBI/AAAAAAAAXCQ/AgVE3IgBslA/s1600/tourism.jpg"><img src="https://3.bp.blogspot.com/-yeRSdxu4_5w/VatfKwQNUBI/AAAAAAAAXCQ/AgVE3IgBslA/s640/tourism.jpg" width="640" height="278"></a></div>
</div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><div>There is not a lot new here, of course, and the rapid decline of engineering construction has evidently been in the post for some time now. </div>
<div> </div>
<div>Although it is generally reported that a decline in construction is a "bad thing", it is also clear that Australia couldn't go on building mines for ever - at some stage they need to produce exports. </div>
<div> </div>
<div>
<em>Reductio ad absurdum</em>, if any decline in construction activity is bad, then Australia would've been better off not having a mining boom in the first place.</div>
<div> </div>
<div>That said, the rising<a href="https://petewargent.blogspot.com.au/2015/07/city-versus-regional-jobs-divide-widens" target="_blank"> </a>levels of regional unemployment reported over the past week represent compelling evidence that many resources-influenced regions are set to be hit hard by declining demand in the years ahead.</div>
<div> </div>
<div>On the other hand the largest capital cities are benefiting from a boom in residential construction in particular together with the associated multiplier effect.</div>
<div> </div>
<div>One consequence of this is that certain inner city areas will evidently end up with an oversupply of apartments, particularly of high rise stock. Unit developments marketed overwhelmingly to investors may include those to avoid.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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pwargent-M4siyDbqQY

Construction activity declines in the regions: Pete Wargent

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<p><span>GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">The residential building transition is firmly on track. The ABS estimate that dwelling commencements rose by 8.6% in QI. Total commencements should total a record 219K in 2015 and 202K in 2016. This is a significant lift on the 2005‑12 average of 155K. Non‑residential building construction rose by 1.3% in QI.</span></p>
<p><span style="line-height: 1.3em;">The trends across the States showed a significant lift in commencements in VIC and QLD. NSW commencements edged up marginally. The increase in NSW commencements has been much softer compared to the pick up in NSW building approvals. NSW commencements are likely to record stronger outcomes over the remainder of 2015.  Across the other states, commencements fell in SA, WA, TAS and ACT.</span></p>
<p><span style="line-height: 1.3em;">We recently discussed the large pipeline of residential work that is yet to be completed. In the current residential construction upturn, the flow through from a building approval to a commencement to final completion has been longer compared to prior cycles. One of the reasons for this change is the larger‑than‑normal share of multi‑density dwellings in the pipeline. Multi‑density dwellings are accounting for 40% of total new dwelling commencements. In prior housing upturns, mutli’s were a smaller 30% of new dwelling starts. Multi‑density dwellings tend to have long planning and pre‑approval schedules. Site preparation can be lengthy and may require demolition, excavation and remediation. A longer flow through from approval to actual construction should mean that the positive impulse and contribution to GDP growth and the economy more broadly are also more drawn out.</span></p>
<p><span>On our calculations, the pipeline of residential work to be done should extend well into 2016.</span></p>
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<div><a href="/images/2015/07/15/Screen%20Shot%202015-07-16%20at%208.24.55%20AM.png" target="_blank"><span style="font-family: 'Times New Roman', serif; font-size: medium;"><span><span style="color: black; font-family: Arial, sans-serif; font-size: small;"><span>Click to enlarge</span></span></span></span></a></div>
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<div><span style="font-family: 'Times New Roman', serif; font-size: medium;"><span><span style="color: black; font-family: Arial, sans-serif; font-size: small;"><span><img src="/images/2015/07/15/Screen%20Shot%202015-07-16%20at%208.24.55%20AM.png" alt=""></span></span></span></span></div>
<div><span style="font-family: 'Times New Roman', serif; font-size: medium;"><span><span style="color: black; font-family: Arial, sans-serif; font-size: small;"><span> </span></span></span></span></div>
<div> </div>
<div>
<p><span>Non‑residential building trends have been varied.  Commercial approvals are weak because of elevated vacancy rates.  Industrial approvals have trended a little lower. </span></p>
<p><span>But, other non‑residential approvals activity has picked up noticeably – particularly in NSW and VIC thanks to large rises in short term accommodation, education and aged care building.  Demographic trends favour construction in the education and health sectors. And a lower Australian dollar is positive for the entertainment and accommodation sectors.  Non‑residential building construction should edge higher over 2015.</span></p>
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<div><a href="/images/2015/07/15/Screen%20Shot%202015-07-16%20at%208.27.30%20AM.png" target="_blank"><span style="font-family: 'Times New Roman', serif; font-size: medium;"><span><span style="color: black; font-family: Arial, sans-serif; font-size: small;"><span>Click to enlarge</span></span></span></span></a></div>
<div><span style="font-family: 'Times New Roman', serif; font-size: medium;"><span><span style="color: black; font-family: Arial, sans-serif; font-size: small;"><span> </span></span></span></span></div>
<div><img src="/images/2015/07/15/Screen%20Shot%202015-07-16%20at%208.27.30%20AM.png" alt="" width="809" height="151"></div>
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<p><em>Diana Mousina is an economist for Commonwealth Bank of Australia. She can be contacted <a href="https://www.commbank.com.au/blog/authors/diana-mousina" target="_blank">here.</a></em></p>
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jchancellor-FAypfDUnLy

Dwelling starts set to track at peak levels over 2015 & 2016: CBA

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<p><span>Cosmetics giant Sephora is set to open its second Australian store after securing space at AMP Capital's Macquarie Centre</span><span> in North Ryde, Sydney. </span></p>
<p><span>Store construction has already commenced with the beauty mega store set to open in September 2015.</span></p>
<p>The global beauty chain, owned by LVMH, has only one other store in Australia located in the Pitt Street Mall in the Sydney CBD.</p>
<p>Its list of stores worldwide in 2000.</p>
<p>Country Manager from Sephora Australia, Libby Amelia, says <span>Australia’s first Sephora store had been hugely successful and the demand for another store outside of the CBD has been high.</span></p>
<p><span>"<span>T</span>he brand is set to grow in Australia,” said Ms Amelia.</span></p>
<p>The new Macquarie Centre store will be situated on Level 2 alongside other recently-launched international retailers including Zara, H&amp;M and Forever 21.</p>
<p>Sephora will stock more than 30 exclusive beauty brands such as Marc Jacobs Beauty, Tarte, Kat Von <span>D, Cover Fx, Nudestix, Beauty Blender, Ole Henriksen, Formula X and its own private label Sephora Collection.</span></p>
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Cosmetics giant Sephora set for AMP Capital's Macquarie Centre

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<p><span style="line-height: 1.3em;">Auswide Bank has announced a 3.99% per annum</span><span style="line-height: 1.3em;"> variable home loan interest rate.</span><span style="line-height: 1.3em;"> </span></p>
<p><span><span>Auswide Bank managing director Martin Barrett says this rate wa</span><span>s available for purchase, construction and refinance purposes on new principal and interest home loans of $150,000 for LVR’s up to 90%.</span><br><span> </span><br><span>“It includes a 100% offset account and the ability to fix when you want to,” said Barrett. </span></span></p>
<p>Martin Barrett says this rate is the lowest advertised home loan rate offered<a href="https://www.auswidebank.com.au/uploads/pdfs/lib/loan_interest_rates_home_loans_and_lines_of_credit_with_freedom_package_special_offer.pdf?1506B" target="_blank"> in the bank’s history</a>.</p>
<p>Last month <span class="highlight">Auswide</span><span> Bank was awarded a five-star rating from Canstar on its Freedom Package home loan products.</span><br><br><span>The non-major received the outstanding value accolade for both its residential and investment variable home loans with the Freedom Package.</span><br><br><span>The Home Loan Star Ratings Report looks at over 100 lenders and over 1,000 loan products to determine which providers and products offer outstanding value for borrowers.</span></p>
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Auswide Bank offers 3.99% variable rate

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<p>The Construction Forestry, Mining and Energy Union will pay $3.55 million to Grocon to settle the legal proceedings arising from its bitter Myer Emporium dispute, in what The Australian Financial Review suggested was a significant financial setback for the union's militant Victorian branch.</p>
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<p>The $3.55 million is about one-third of the $10.5 million in damages initially claimed by Grocon. </p>
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<div>Grocon confirmed to The AFR on Sunday that it had "achieved a commercial settlement' with the CFMEU's Victorian branch following the union's unlawful blockade of the Emporium project in August 2012.</div>
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<div>The CFMEU was previously been fined $1.25 million over its conduct during the Myer Emporium dispute. </div>
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CFMEU settles Grocon Myer Emporium construction dispute with $3.55 million payout

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<p class="Normal"><span class="Normal__Char"><img src="/images/2015/06/05/Holdencapital_banner.jpg" alt="" width="532" height="112"></span></p>
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<p class="Normal">SPONSORED POST</p>
<p class="Normal"><span class="Normal__Char">With interest rates at levels not seen for generations, the conditions are ripe for fresh approaches to construction funding methods and while the majority of construction debt is sourced from the major banks.</span></p>
<p class="Normal"><span style="line-height: 1.3em;">HoldenCAPITAL have utilised their experience and real-time market data to access alternative lending institutions securing some attractive alternatives to suit individual client needs. This includes the sourcing and negotiation of Joint Venture Partnerships and passive equity investment for medium to large sized projects.</span></p>
<p class="Normal"><span class="Normal__Char">The HoldenCAPITAL team is often asked what is the difference between bank and non-bank funding and in most instances there are only three significant differences:</span></p>
<p class="Normal"><span class="Normal__Char">• Interest rate <br>• Pre-sales requirements <br>• the amount of equity commitment required from the borrower.</span></p>
<p class="Normal"><span class="Normal__Char">Two of these factors are easily quantifiable but what about the question of pre-sales?</span></p>
<p class="Normal"><strong><span class="Normal__Char"><span class="Normal__Char">Pre-sales or no Pre-sales</span><span class="Normal__Char"> </span></span></strong></p>
<p class="Normal"><span class="Normal__Char"><span class="Normal__Char">Interest rate and equity requirements might initially indicate that one option be preferred over the other, but if we assess their specific requirements with a full understanding of the project and market conditions, the best choice might not be the most obvious. The best way to illustrate this is by way of a case study that HoldenCAPITAL has prepared.</span></span></p>
<p class="Normal"><a href="/images/2015/06/17/holden1.jpg" target="_blank"><span class="Normal__Char"><span class="Normal__Char">Click to enlarge</span></span></a></p>
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<p class="Normal"><a href="/images/2015/06/17/feasibility_holden.jpg" target="_blank">Click to enlarge</a></p>
<p class="Normal"><img src="/images/2015/06/05/holden2.jpeg" alt=""></p>
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<p class="Normal"><strong><span class="Normal__Char">Funding table comparison</span><span class="Normal__Char"> </span></strong></p>
<p class="Normal"><span class="Normal__Char">Bank and non-bank lenders have different requirements regarding loan ratios. Most non-bank lenders are so called gross realisation (GR) lenders and the main criterion for them is a loan to value ratio (LVR) of no more than 65%. Bank lenders also require a maximum LVR of 65%, but in addition they impose a limit of no more than 80% of the total development cost (TDC).</span></p>
<p class="Normal"><a href="/images/2015/06/17/holden_3.jpg" target="_blank"><span class="Normal__Char">Click to enlarge</span></a></p>
<p class="Normal"><span class="Normal__Char"><img src="/images/2015/06/05/holden3.jpeg" alt=""></span></p>
<p class="Normal"><span class="Normal__Char">These differences in lending criteria allow you in many cases to borrow more when choosing the non-bank option. In this case study, the required equity contributions are:</span></p>
<p class="Normal"><span class="Normal__Char">• Bank option of $1,118,100, compared to <br>• Non-bank option of $603,240 – a significant reduction.</span></p>
<p class="Normal"><span class="Normal__Char">The internal rate of return (IRR) on an investment or project is the annualised effective compounded return rate. It is commonly used to evaluate projects and gives a return that can be compared against the annual cost of capital. As can be seen in the graph below, as a result in the lower requirement for equity, the non-bank option shows a much higher return on equity and the internal rate of return is more than double that of the bank option.</span></p>
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<p class="Normal"><span class="Normal__Char"><img src="/images/2015/06/05/holden4.jpeg" alt=""></span></p>
<p class="Normal"><strong><span class="Normal__Char">The benefits of managing project timing</span></strong><span class="Normal__Char"> </span></p>
<p class="Normal"><span class="Normal__Char">The bank option benefits from a significantly lower total interest cost however, the non-bank alternative does not require the delay of between 3-6 months associated with the pre-sales requirement and benefits from a lower requirement on developer equity with the potential for a significantly increased return on investment.</span></p>
<p class="Normal"><span class="Normal__Char">The key differential is that the non-bank option potentially allows the project to be completed in a shorter timeframe with a consequential reduction in the potential for a market shift to impact the project viability.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Normal"><span class="Normal__Char">Daniel Erez, Managing Director of New Ground Properties endorses these points noting that “For every pre-sale we currently secure we could probably sell 4-5 near completed units…”.</span></p>
<p class="Normal"><span class="Normal__Char">In the case of a no-presales option “… we are still providing the same de-risking strategy by selling out prior to completion, the difference is that it is happening later in the project … you don’t need to fund the pre-sales and commissions are paid 100% from settlement proceeds.”</span></p>
<p class="Normal"><em><span class="Normal__Char">To find out more about which option best suits your next project, contact Dan Holden at HoldenCAPITAL on 0401 669 502 or visit <em>HoldenCAPITAL <a href="https://www.holdencapital.com.au" target="_blank">here</a>.</em></span><span class="Normal__Char"><br></span></em></p>
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