<p data-end="256" data-start="0"><a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.</p>

<p data-end="446" data-start="258">The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.</p>

<p data-end="645" data-is-last-node="" data-is-only-node="" data-start="448">Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.</p>

<p><img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.</p>

<p>The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.</p>

<p>The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”</p>

<p data-end="626" data-start="350">Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.</p>

<p data-end="928" data-start="628">“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”</p>

<p data-end="1147" data-start="930">Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.</p>

<p data-end="1510" data-start="1149">“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”</p>

<p data-end="1510" data-start="1149"><img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" /></p>

<p>&nbsp;</p>

<p>The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.</p>

<p>Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.</p>

<p>The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.</p>

<p>The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.</p>

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
<p data-end="305" data-is-last-node="" data-is-only-node="" data-start="0">The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.</p>
</section>


Joel Robinson

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

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


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

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


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

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


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

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


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

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>
</div>
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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>
</div>
<div class="column">
<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>
</div>
<div class="column">
<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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<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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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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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>
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<div>No real surprises to be found here, based upon what we have already seen.</div>
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<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>
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<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>
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<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>
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<div><a href="https://1.bp.blogspot.com/-DDxrvVs-G9A/VamSG2DNnHI/AAAAAAAAW_w/9aD2jXo9y1s/s1600/Construction1.jpg" target="_blank">Click to enlarge</a></div>
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<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>
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<div>That said, $48.3 billion is still an elevated level of activity in historical terms...for now at least.</div>
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<div><a href="https://4.bp.blogspot.com/-YDgBofnRhbY/VamSGwEWp2I/AAAAAAAAW_s/O5apxmfsbgQ/s1600/construction2.jpg" target="_blank">Click to enlarge</a></div>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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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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<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><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>
<p class="Normal"> </p>
<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>
<p class="Normal"><img src="/images/2015/06/05/holden1.jpeg" alt=""></p>
<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>
<p class="Normal"> </p>
<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>
<p class="Normal"><a href="/images/2015/06/17/holdenlast.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/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>
<p class="Normal"> </p>
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