<a href="https://www.apartments.com.au/developers/draycon">Draycon Building</a> is nearing completion of Boutique Chevron Island, a 42-apartment development on the northern end of Chevron Island at 17–19 Parneno Street, with a limited-time offer of fully furnished apartments available.

Now more than 90 per cent complete, <a href="https://www.apartments.com.au/buildings/boutique-chevron-island-17-19-parneno-chevron-island-qld-4217">Boutique</a> has been shaped by one of the Gold Coast’s most tightly held island addresses, where riverfront outlooks and walkable access to Surfers Paradise converge.

For Draycon Building Managing Director Howard Dabit, the appeal of the site was immediate.

“I knew it was a good site as soon as I saw it,” Dabit said.

“The position and location on the north end of <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>, the way the river swirls around the site basically from the north to the east, it feels like the site is surrounded by the water. The height that we’ve got and the aspect looking north is beautiful. Eighty per cent of the apartments are looking north so they get that drenching sunlight coming in.”

[smartcode_project:default project_id=89709 project_image_fid=360922]

That northern orientation places the development within a stretch of Chevron Island defined by open river aspects and skyline views, while remaining embedded in the suburb’s established village setting.

Chevron Island has increasingly drawn owner-occupiers seeking centrality without the intensity of high-rise beachfront living. Positioned at the geographical centre of the Gold Coast, the island offers direct access to both the beach and key cultural infrastructure while retaining a neighbourhood-scale character.

Connected by bridge to Surfers Paradise, Chevron Island offers walkable access to beaches, riverfront parklands and a revitalised foreshore boulevard animated by walkers and cyclists throughout the day. The Pacific Ocean is only minutes away, reinforcing the suburb’s dual river-and-surf identity.

At the same time, Thomas Drive forms the spine of the island’s village life, delivering cafés, wine bars, casual dining and everyday services within easy reach. Independent grocers, wellness operators and neighbourhood retailers contribute to a community atmosphere that remains distinct from the vertical scale of the beachfront.

[smartcode_project:default project_id=89709 project_image_fid=360915]

In the opposite direction, the Green Bridge links directly to HOTA – Home of the Arts – placing galleries, performance venues and parklands within walking distance. Weekly markets and major exhibitions draw visitors from across the region, while residents return to a quieter residential pocket at day’s end.

Public transport, including nearby bus routes and the G:link light rail corridor along the coastal spine, strengthens connectivity north and south. Griffith University, the Gold Coast University Hospital precinct and established private schools such as The Southport School are all within a short drive.

Ongoing investment across Surfers Paradise, HOTA and the broader Southport corridor has elevated amenity while preserving Chevron Island’s comparatively low-rise residential character. It is this balance, walkable village atmosphere paired with metropolitan-scale infrastructure, that continues to differentiate the suburb from higher-density beachfront precincts.

Boutique comprises just 42 residences, designed to maximise river and skyline outlooks within this tightly held island setting.

Boutique Chevron Island is slated for completion in April 2026, with prices starting from $1,220,000.

[smartcode_project_cta:default project_id=89709]

Joel Robinson

Draycon Building’s Boutique Chevron Island places 42 residences at the heart of the Gold Coast

Sydney developer <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a> has secured planning approval for a $300 million residential development in Lindfield, marking the company’s second project on Sydney’s North Shore and its first on the Upper North Shore.

Located on Beaconsfield Parade and designed by DKO Architecture, the state significant development comprises three buildings of up to 10 storeys and will include 399 residences, including 59 affordable homes and 40 adaptable homes.

Residences will range in size from one, two and three bedrooms, with two-bedroom apartments accounting for over 60 per cent of the product make-up. Residents will have access to a broad suite of amenities, including a wellness area, indoor and outdoor recreational spaces, a pool, a gym, a community room and a golf simulator.

In line with Deicorp’s long-standing focus on creating transit-oriented communities, the project is located just 260 metres from the Lindfield Train Station, reinforcing its role in delivering well-connected housing close to established infrastructure, retail and local services.

The inclusion of affordable and adaptable housing supports greater diversity within the local market, while the mix of apartment types responds to demand from downsizers, young professionals and families seeking access to the Upper North Shore.

Deicorp Founder Fouad Deiri OAM said the approval represents an important milestone for both the company and the suburb

“This approval allows us to deliver well-designed homes in a location that is already supported by strong transport and community infrastructure," Deiri said.

"Our focus is on creating places that integrate into their surroundings and provide long-term value for residents, and the broader Lindfield community. Being within walking distance of the station ensures this project supports sustainable growth in the right locations."

Across its portfolio, Deicorp currently has 4,703 apartments under construction, playing a leading role in shaping connected, liveable communities across Sydney.

Its expanding portfolio of Metro-linked developments includes Tallawong Village, <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> in Five Dock, <a href="https://www.apartments.com.au/new-apartments/hyde-metropolitan-sydney-133-141-liverpool-street-sydney-nsw-2000">Hyde Metropolitan</a> in Sydney CBD, <a href="https://www.apartments.com.au/new-apartments/falcon-alexander-crows-nest-8-alexander-street-crows-nest-nsw-2065">Falcon &amp; Alexander</a> in Crows Nest and Showground Village, Castle Hill.

Deicorp purchased the Beaconsfield Paradise site last year. Construction is scheduled to commence in Q2 of 2026 and will be completed in 2029.

Deicorp expands portfolio to nearly 5,000 apartments with Lindfield project

In a joint venture with The Trump Organization, Australia developer Altus Property Group has announced plans to bring a Trump International Hotel &amp; Tower to the Gold Coast, marking the first Trump-branded project in Australia.

"Trump International Hotel &amp; Tower, Gold Coast is our first official project in Australia and reflects our unwavering commitment to delivering world-class luxury experiences in iconic locations around the world," Eric Trump, Executive Vice President of The Trump Organization, said.

"This development exemplifies the Trump brand’s dedication to quality, sophistication, and unmatched service, and we are thrilled to bring this vision to the vibrant Gold Coast community."

The 91-storey building, which will become the tallest in Australia at 335 metres, will feature a&nbsp;285-room luxury hotel bearing the trademark Trump logo. It will also include 272 luxury residential apartments, a three-level podium with an exclusive Beach Club, and over 3,400 sqm of premium commercial, retail, and dining space, revitalizing the central Surfers Paradise precinct.

“Trump International Hotel &amp; Tower, Gold Coast will be a truly unique offering in the Australian market, bringing the prestige and allure of a world-class luxury brand,"&nbsp;Altus founder and chief executive David Young said.

"Altus Property Group is proud of its track record in delivering landmark developments across Australia, and our expertise ensures this project will be an outstanding success."

Trump Hotel heads for the Gold Coast to become Australia's tallest building

More than a century after the Corrimal Coke Works first opened in 1912, the industrial landmark that helped shape the suburb is being reinterpreted as a walkable residential neighbourhood, with Stage One of <a href="https://www.apartments.com.au/new-apartments/the-works-stage-one-27-railway-street-corrimal-nsw-2518">The Works</a> now underway at 27 Railway Street.

For 102 years, the site was central to <a href="https://www.apartments.com.au/developments/corrimal-nsw-2518">Corrimal</a>’s economic and social identity before operations ceased in 2014. Rather than erasing that legacy, developer Legacy Property has embedded it into the masterplan, retaining and reinterpreting elements such as the iconic 1912 brick chimney and sections of the original C1 Coke Oven Battery, alongside the adaptive reuse of the former powerhouse building.

Stage One will introduce 181 apartments across low-rise buildings, offering predominantly two and three-bedroom residences with completion targeted for mid-2027. The scale and configuration reflect a deliberate focus on owner-occupiers, targeting those seeking a lower-maintenance home in a prime location within the northern suburbs of Wollongong.

[smartcode_project:default project_id=143415 project_image_fid=359833]

Apartments have been designed to maximise natural light and cross-ventilation, with floor-to-ceiling glazing extending living areas onto generous balconies. Engineered timber flooring, induction cooktops and 900mm ovens in larger residences support everyday functionality, while two interior palettes allow buyers to tailor finishes to their preferences. The material selection draws on a restrained coastal language, intended to connect homes to their surroundings rather than compete with them.

The Works forms part of a broader 18-hectare masterplan that will ultimately deliver around 550 dwellings, new parks, and a heritage precinct celebrating the site’s past. More than seven hectares are dedicated to open space, including Southern Park and a Village Green with community gardens and recreation areas. The creek corridor is being rehabilitated with 150,000 native plantings, restoring biodiversity to the site and softening landscape.

[smartcode_project:default project_id=143415 project_image_fid=359841]

Positioned adjacent to Corrimal Station and within walking distance of Corrimal Town Centre, the precinct places daily essentials, rail connections and local retail within easy reach. Wollongong CBD, including the hospital, university and entertainment venues, sits approximately 6.5 kilometres to the south.

For buyers more familiar with North Wollongong, Corrimal offers a different proposition: a well-established coastal suburb framed by beaches to the east and the escarpment to the west, with a strong sense of local identity shaped in part by the former Coke Works. The Works seeks to reinforce that identity by creating a connected, walkable neighbourhood between coast and escarpment, rather than a standalone apartment complex.

Sustainability underpins the development approach. The Works is targeting Wollongong’s first 5-Star Green Star-rated community, with water-sensitive urban design, recycled materials and energy-efficient buildings integrated across the masterplan. For residents, these measures provide not only environmental benefits but also reduced operational costs and future resilience.

[smartcode_project:default project_id=143415 project_image_fid=359842]

With construction commenced and display materials available to view, prospective buyers can now engage more directly with the project’s vision, reviewing floorplans, material selections and the broader masterplan in detail. For many local homeowners weighing a move, the opportunity to experience how heritage, landscape and contemporary design intersect may help bridge the gap between familiarity and the next chapter.

As Stage One progresses toward its mid-2027 completion, The Works represents a significant chapter in Corrimal’s evolution, transforming a site that once powered local industry into a walkable residential precinct designed for its next generation of residents.

[smartcode_project_cta:default project_id=143415]

Legacy Property’s The Works reimagines Corrimal’s century-old Coke Works

When it comes to developing in Melb​ourne's Bayside region, <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> knows exactly what buyers want.

With a longstanding presence in the area and a string of sell-out projects, Lowe Living consistently delivers developments that are as sought-after as their predecessors.

Their latest instalment is in <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a><a href="https://www.apartments.com.au/developments/hampton-east-vic-3188">&nbsp;East,</a> the same postcode where they have previously delivered Hampton Hill and Oceano. The developer-builder recently commenced construction on its newest project,&nbsp;<a href="https://www.apartments.com.au/new-apartments/marella-hampton-31-35-alicia-street-hampton-east-vic-3188">Marella</a>, a collection of 32 apartments just five minutes from the beach.

Site acquisition is paramount to success. Lowe Living rarely brings a building to market that isn’t within walking distance of essential amenities, whether it be the beach, a prominent retail strip, or a train station. Marella is no exception, located at its Alicia Street address, less than a kilometre from the retail heart of Hampton Street and Hampton Station.

[smartcode_project:default project_id=146197 project_image_fid=358495]

Equally important to Lowe Living is the architecture.

For Marella, they appointed <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, who explains that the architectural vision was to create a contemporary reinterpretation of the Californian bungalow, a style that’s iconic to Hampton’s heritage.

"By borrowing, abstracting, and reinterpreting elements of this quintessential style, such as strong datum lines, articulated columns, exposed structures, and roof tiles, our design strikes a balance between modernity and familiarity," says Cera Stribley.

"This approach ensures that the development is not only visually appealing but also contextually sensitive, resonating with Hampton's existing architectural landscape."

[smartcode_project:default project_id=146197 project_image_fid=358499]

The building features terracotta brick, soft cream masonry, and exposed metal detailing, giving it a tactile presence that is intended to weather gently over time.

Internally, the focus on lasting quality continues, with two and three-bedroom residences anchored by sculptural stone kitchen islands, natural light, and clearly defined transitions between living, dining, and outdoor spaces.

The layouts have been carefully designed. Open-plan zones extend to private balconies, with light-filled interiors and generous kitchen proportions, supported by Miele wall ovens, induction cooktops, and integrated fridge-freezers. These are not small apartments rebranded as luxury; they have been designed at scale, with ample storage, hotel-style entry access, and secure basement parking provided as standard.

[smartcode_project:default project_id=146197 project_image_fid=358492]

At the uppermost level, Marella’s Signature Collection penthouses offer city or bay views, large entertaining terraces (some with outdoor spas), and elevated finishes, including fully wrapped stone kitchen benches and a Liebherr wine fridge.

Flexible room arrangements allow for a fourth bedroom or secondary living space, sought-after by both empty nesters who want the space when family visits and families with older children.

[smartcode_project:default project_id=146197 project_image_fid=358498]

A residents’ lounge on the ground floor reinforces the project’s small-community feel. With a fireplace, private dining area, and adjoining terrace, it’s one of several shared spaces that balance amenity with privacy and scale.

Construction has commenced, with completion expected in early 2027.

[smartcode_project_cta:default project_id=146197]

Lowe Living continues Bayside legacy as Marella rises in Hampton

global

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Australian Architects are heralded as proudly ambitious in preserving Australia's heritage, honouring national history and providing our cities with activated, engaging and community buildings and spaces that are socially and environmentally beneficial. With the rise of 'starchitects' and landmark designs, Australian architects are more approachable than ever, entering global design competitions, catching the eyes of global developers and governments to influence roles in cities abroad.

This is a short celebrated list of notable Australian Architects and their realised or planned projects abroad

<h2>FUNAN, SINGAPORE - <a href="/architects/woods-bagot">WOODS BAGOT</a></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/woodsbagot.com_.jpg" rel="gallery-all" title=" Image of Woods Bagot’s Funan in Singapore."><img alt="" class="image-article-full-width-580px" height="454" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/woodsbagot.com_.jpg?itok=nvoyaFfM" title=" Image of Woods Bagot’s Funan in Singapore." width="580"></a>

<figcaption>Image of Woods Bagot’s Funan in Singapore.</figcaption></figure>Representing a new era of mixed use and retail, Woods Bagot’s Funan in Singapore is an exemplary piece of architecture that is true to form in that it blends worlds and acts as a civic hub. 
The design acknowledges the rise of online shopping and maximises its engagement for tech savvy shoppers offering more of a destination than a retail precinct.  
Spaces connect vertically and laterally to provide an integrated environment that blurs traditional zones to offer an ecosystem of lifestyle activities under one roof.

Funan is a connected development which responds to a socially and environmentally conscious world with communal spaces, urban rooftop farms and gardens and vertical wall plants. 
The flexible ventilation of the ground floor allows 24 hour accessibility to pedestrians and cyclists, further improving upon the vibrant streetscape and its engagement to people. The building’s design caters to a new generation of consumers who yearn for interactive, connected and collaborative environments that reflect their authentic passions and tastes.

<h2> </h2>

<h2>MERDEKA PNB118, KUALA LUMPUR - <a href="/architects/fk-australia">FENDER KATSALIDIS</a></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/fender_katsalidis.jpg" rel="gallery-all" title=" Rendering of Fender Katsalidis’ Merdeka PNB118, Kuala Lumpur, Malaysia."><img alt="" class="image-article-full-width-580px" height="1106" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/fender_katsalidis.jpg?itok=fag5H25M" title=" Rendering of Fender Katsalidis’ Merdeka PNB118, Kuala Lumpur, Malaysia." width="580"></a>

<figcaption>Rendering of Fender Katsalidis’ Merdeka PNB118, Kuala Lumpur, Malaysia.</figcaption></figure>Australian architecture firm Fender Katsalidis has designed the upcoming Merdeka PNB118 skyscraper in Kuala Lumpur, standing at 644 metres tall with 118 floors of office, hotel, topped by an observation deck and restaurant. 
The crystalline tower will be the centrepiece of Kuala Lumpur’s Merdeka site, where Malaysian independence was declared in 1957. 
The tower’s design is an expression of its structural pathways, resulting in geometric patterns in the facade which are reminiscent of traditional Malaysian arts and crafts.

Cementing itself as one of the World’s top 10 tallest buildings when completed, the design of the tower is influenced through Fender’s <a href="/news/urban-com-au-profiles-10-of-melbourne-s-top-luxury-apartments">Eureka Tower</a> and how its design form represents a piece of Victorian history. The Malaysian capital wanted a landmark tower that represents in form its cultural history and significance in this same way. The project will preserve two heritage buildings on the site including the Merdeka Stadium and Negara National Stadium.

The podium interior has a soaring, dramatic atrium fit with stone surfaces which will include the lower lobby access at one end and office and retail lobby access at another. 
The retail component will offer over 300 stores of upmarket to high end clothing. 
The project in collaboration with local architect, RSP Architects and landscape architects Sasaki Associates has an expected completion in 2020.

 

CAPITAMALL 1818, WUHAN - <a href="/architects/the-buchan-group">BUCHAN GROUP</a>

<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/buchan_group.jpg" rel="gallery-all" title=" CapitaMall 1818, Wuhan, China. Image by Buchan Group."><img alt="" class="image-article-full-width-580px" height="326" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/buchan_group.jpg?itok=K5ocii-T" title=" CapitaMall 1818, Wuhan, China. Image by Buchan Group." width="580"></a>

<figcaption>CapitaMall 1818, Wuhan, China. Image by Buchan Group.</figcaption></figure>The Buchan Group delivers a revitalised shopping interior, exterior facade and graphics for the CapitaMall in Wuhan’s downtown. Located along the prosperous Zhongshan, the high end mall features 8 levels of retail, entertainment and dining and is one of seven CapitaLand developments in the city.

It was important that through this revitalisation of the downtown mall, that all 10 million of Wuhan’s residents feel represented with a design reflecting the vast cultural catchment with a rich past, whilst still responding to the innovative retail future and its trends.

The podium creates a vibrant streetscape amongst the integrated office and residential mixed use precinct and ensures that the buildings perform a civic function, providing a meeting place and community engagement for locals. 
The responsibility to respect Wuhan’s deep cultural history was felt by the Buchan Group as well as the need to embrace a modern urban community with aspirations to adapt to recent retail trends.

 

NATIONAL MARITIME MUSEUM OF CHINA, TIANJIN - <a href="/architects/cox-architecture">COX ARCHITECTURE</a>

<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/coxarchitecture.com_.jpg" rel="gallery-all" title=" National Maritime Museum of China in Tianjin. Rendering by coxarchitecture.com"><img alt="" class="image-article-full-width-580px" height="363" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/coxarchitecture.com_.jpg?itok=suUJPtDm" title=" National Maritime Museum of China in Tianjin. Rendering by coxarchitecture.com" width="580"></a>

<figcaption>National Maritime Museum of China in Tianjin. Rendering by coxarchitecture.com</figcaption></figure>The Binhai New Area is an important economic zone as Tianjin expands as an important international port, with over 2000 high tech companies developed in the area and urban residential spaces built upon reclaimed land. 
The National Maritime Museum of China by Cox Architecture whose design won the international competition for China’s first maritime museum, sits in the Binhai New Area of Tianjin. The Museum covers 150,000 square metres of space and includes three levels, a large exhibition hall and an observation tower which also acts as the Museum’s energy plant.

One of the main details of importance for the new museum was its connection and relation to the water as much of Chinese cities developed out of the canals or by the water’s edge. 
Not much is known of the country’s Maritime past, so for Cox Architecture, designing a space of such importance had to reflect a strong identity.

As the Chinese Government collected elements to fill the Museum, the designs of the structure had to evolve and adapt to their findings. Cox Architecture needed to provide a space to raise public awareness and develop into an educational base for scientific research and environmental protection.

Opened in 2019, the National Maritime Museum of China will be free for visitors and include six divided sections with an enriched array of themes arranging from Culture and History, Marine Ecology and Environment, Science Education and interactive programs as well as shopping, restaurants, cafes, cinema and gardens surrounding and connecting to the waterfront.

Awards: 
World Future Project of the Year, World Architecture Festival Singapore 2013 
Future Projects Competition entries Category Winner, World Architecture Festival Singapore 2013

<h2>KAOHSIUNG EXHIBITION CENTRE, KAOHSIUNG TAIWAN - <a href="/architects/cox-architecture">COX ARCHITECTURE</a></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/coxarchitecture.comm_.jpg" rel="gallery-all" title="Kaohsiung Exhibition Centre, Kaohsiung Taiwan. Image by coxarchitecture.com"><img alt="" class="image-article-full-width-580px" height="305" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/coxarchitecture.comm_.jpg?itok=ldjNWKQx" title="Kaohsiung Exhibition Centre, Kaohsiung Taiwan. Image by coxarchitecture.com" width="580"></a>

<figcaption>Kaohsiung Exhibition Centre, Kaohsiung Taiwan. Image by coxarchitecture.com</figcaption></figure>Another project from Cox Architecture won through an international design competition is Kaohsiung’s first public harbour development, the Kaohsiung Exhibition Centre. 
Linking the city to the waterfront via pedestrian access was key to the design of the centre. 
Designed as a hybrid facility, the building comprises of exhibition and convention spaces which are flexible to host a large variety of events and simultaneous meetings. 
The enclosed roof utilises an alternating shell structural system to which substantially reduces steel tonnage and successfully resists the strong harbour winds and seismic forces. 
Skylights allow the building to respond to its natural environment with the ability to fill the spaces with light and ventilation which improves the overall sustainability.  
It was important to Cox Architecture to design a structure that responds to its surroundings and is an expression of the Taiwanese people and was a conscious and thoughtful process.  
Awards: 
Excellence Award, Chinese Institute of Engineers 2014.

 
 

 

 

 

 
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Nick Dante

Australian Architects making Global waves

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GUEST OBSERVATION
<ol>
<li>At the end of 2017, the value of the world’s real estate reached US$280.6 trillion, the highest figure we’ve ever recorded and an annual increase of 6.2%. Residential real estate accounted for the largest share ($US220.6 trillion) of that huge figure, with commercial real estate (US$33.3 trillion) and agricultural and forestry real estate ($US27.1 trillion) making up the rest. 
</li>
<li>By any measure, real estate is by far the most significant store of wealth, representing more than 3.5 times the total global GDP. Global real estate universe in comparison <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/7/17/global%201.jpg" alt="" style="font-size: 12.16px;">
</li>
<li>Most residential real-estate value is contained in the mature markets of North America and Europe, with more than 44% of value belonging to just 17% of the global population. Global distribution of real estate value versus population <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/7/17/global%202.jpg" alt="" style="font-size: 12.16px;">
</li>
<li>China now accounts for the largest share of global residential value, thanks to national house price growth (up 16%) and a rapid programme of housebuilding. Emerging markets, especially in Asia, are also experiencing fast growth. 
</li>
<li>The share of commercial real estate by world region is more closely related to GDP share than it is to population size. 
</li>
<li>The top five most valuable national commercial real-estate markets (excluding residential) are: US: US$8.1 trillion China: US$3.6 trillion Japan: US$2.8 trillion Germany: US$1.7 trillion UK: US$1.7 trillion 
</li>
<li>Pressure on commodity prices has slowed value growth – down 0.4% on an annual basis to US$27.1 trillion. However, an increasing world population, food production (coupled with reduction in food waste) and competitive land uses will sustain values. 
</li>
<li>Equities and gold grew much faster in value than real estate, but rising wealth in emerging economies means there is more capital at large, and real estate is viewed as a safe store for it. Investor motives remain a mixture of wealth storage, capital appreciation and income return. But, increasingly, the income produced by real-estate assets and the potential for rental growth is of increasing interest to investors as the yields on fixed-income assets have compressed.</li>
</ol>
Value growth in 2017
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/7/17/global%203.jpg" alt="">
Yolande Barnes is Head of Savills World Research.
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j.ballantyne1990-6AQqhLzZaK

The eight things you need to know about the value of global real estate: Savills

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Expert Observer
Geopolitical events like Brexit and Donald Trump’s election in the US “surprised” investors in 2016 but had no lasting negative impact on global financial markets. By last year investors were well focussed on geopolitical risks – Trump taking over as US President, Eurozone elections, the Communist Party Congress in China and rising risks around North Korea – but again they did not have much lasting negative market impact. In fact, in most cases it turned out to be a positive impact.
Now in 2018 it’s already clear that geopolitical events remain significant, for example with Trump’s tariffs and the messy Italian election result. Despite their benign financial market impact over the last two years they are worth keeping an eye on. This note takes a look at why geopolitics is more important for investors these days and what to look out for this year. 
Why geopolitics is more important now 
While not to deny the influence of various geopolitical events in the 1980s and 1990s the broad trend was reasonably positive with the embrace of free market/economic rationalist solutions (after the failure of widespread government intervention in the 1970s), the collapse of communism and the associated surge in global trade and the peace dividend and the dominance of the US as the global cop. However, while the last 2 years highlight the importance of not getting too distracted by geopolitical events, in recent times geopolitical risks have arguably become more elevated. There are several reasons for this: 
First, the slow post global financial crisis recovery, rising inequality (see the next chart which shows the Gini coefficient - a measure of income distribution) and stress around immigration have all led to a backlash against establishment politics and economic rationalist policies. This is showing up in support for re-regulation, nationalisation, 
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Source: OECD, Standardised World Income Inequality Database, AMP Capital 
The swing of the political pendulum to the left is most acute in Anglo Saxon countries as it was here that the pendulum swung most towards free markets in the 1980s and 1990s. It’s messy in the US as while Trump has tapped into popular discontent and is more protectionist, his policies around de-regulation and tax cuts go in the opposite direction – for now, as this could just set the scene for a more left-wing president in 2020. And Macron in France is going in a fundamentally more pro- business direction, which is very positive for French assets. 
Second, the relative decline of US economic and military power is shifting us away from the unipolar world that dominated after the Cold War when the US was the global cop and most countries were moving to become free market democracies. Now we are seeing the rise of China, Russia revisiting its Soviet past and efforts by other countries to fill the gap left by the US in parts of the world, all creating tensions. 
Third, social media is allowing us to make our own reality. The danger is that, as politicians pander to this, economic policy making will be less rational and more populist. 
Finally, with the mid-term elections in November, Trump is back in campaign mode. And he is not your normal politician. 
Global geopolitical issues to keep an eye on 2018 
President Trump – Trump faces two big challenges this year. First, the mid-term Congressional elections in November risk the Republicans losing control of the House and also the Mueller inquiry is closing in. These in turn put pressure on Trump to create distractions and return to focussing on his base after the pro-business focus of last year. The tariffs, dealing with North Korea and maybe Iran fit into this. 
Tariffs – much has been written about Trump’s steel and aluminium tariffs, but a full-on global trade war is unlikely. First the steel and aluminium tariffs are trivial amounting to less than 2% of US imports. They are nothing compared to the tariff hikes of 1930 and 1971 that covered most US imports. Second, there is more to go on trade with NAFTA renegotiations, a review of China’s alleged theft of US intellectual property likely to result in broad tariffs on US imports from China and restrictions on Chinese investment in the US and possible tariffs on vehicles, shipbuilding, aircraft and semi-conductors are also possible. Finally, Trump is trying to appeal to his base ahead of the mid- terms, but a full-blown global trade war is unlikely. There are few political constraints on Trump imposing tariffs and his Republican base tends to support it. However: the exemptions to his steel and aluminium tariffs suggest he has listened to criticism of his initial plan including around the threat it poses to US alliances; his approach on this issue smacks a bit of The Art of the Deal – go in hard, then back down to something that sounds more acceptable and the same is likely in relation to China with initial harsh measures likely designed for use as a bargaining chip; Trump won’t want to go too far on tariffs as the resultant price increases won’t go down well with his supporters; a plunging stock market in the face of a trade war will also constrain Trump (as he likes to take credit for it going up); and other countries are likely to be cautious in retaliating and China may want to come across as the “good guy” on trade. Of course, this issue could roll on all year, and Australia is vulnerable via its exposure to China. But a full-on global trade war is unlikely – but there may not be much peace on the trade front either. And a US-China trade war is the main risk.
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The Mueller inquiry – this is getting closer to Trump. However, our view remains that while the Democrats may find something to impeach Trump on if they get control of the House of Representatives, in the meantime the Republicans are unlikely to impeach him. And even if the Democrats do impeach him post the mid-terms it’s doubtful they will find the 70 votes in the Senate to remove him from office. And even if Trump is removed from office, VP Pence will not mean a big change in economic policy (just less tweets!). In the meantime most of the big market friendly policies Trump has to offer have been done. 
The US mid-term elections – these will be watched closely as a guide to whether US politics is swinging back towards the Democrats taking the Presidency in 2020. If the GOP loses the House, it will leave Trump as a lame duck president. On the one hand most of his big market friendly policies have already been done so no great impact on domestic policy until post 2020. But being a lame duck could encourage him to seek relevance globally (more tariffs or action on Iran?). 
US shutdown risk – by March 23 funding will again have to be renewed for the Government to avoid a shutdown. But neither side wants to be blamed for a shutdown so expect funding to be granted, another extension or any shutdown to be brief. 
North Korea – news that Trump will meet Kim Jong Un before May and that NK is open to denuclearisation is welcome. Whether it comes to anything though remains to be seen given numerous false thaws with NK over the decades. Or maybe Kim John Un read The Art of the Deal and its development of nuclear weapons was all just a negotiating ploy, so this is really a very big deal. At least it will be “quiet” on this front for a while. 
Iran – the US deadline to remain compliant with the Iran nuclear deal expires in May. It will probably be renewed but if it’s not and sanctions on Iran return it potentially means a sharp reduction in Iranian oil supply which could put upwards pressure on oil prices. Meanwhile, tensions and proxy wars between Iran and Saudi Arabia will continue with occasional flare ups but open warfare between the two is unlikely. 
Italy and Europe - the messy Italian election outcome is not great for Italy, but it’s unlikely to threaten the Euro. There are now three major blocs in the Italian lower house. None of these blocsarenear a majority and it may require a new election (not that most parties want that). Barring a worst-case coalition between the Five Star Movement and the far-right Northern League, which given their huge political differences is unlikely, it will be the Democratic Party that will decide who forms government and given its pro-Euro and left of centre bias it’s more likely to lean to 5SM but only if it remains supportive of Italy remaining in the Euro. But it may take months to get to this point. This is not great for Italy, but there is unlikely to be a short-term threat to the Euro. In any case support for the Euro remains strong across the rest of the Eurozone so even if Italy does leave, a contagion across Europe looks very unlikely. This and the German Social Democrat Party’s solid support for a coalition with Angela Merkel all leaves Germany on track to work with France on strengthening the Eurozone. 
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Terrorism – The impact of terrorism on investment markets has been declining since the 9/11 attacks to the point where attacks in recent years have had little impact. Economies and markets seem to have become desensitised to them to a degree. 
China – The Chinese Government’s focus on its reform agenda - shifting towards less investment intensive growth, reducing pollution, reforming state-owned enterprises and reducing financial risk - has long run hot and cold, speeding up in good times only to slow down if growth slowed. However, the reform agenda now looks likely to see another step up posing a short- term threat to growth (albeit with a long-term benefit) and with President Xi Jinping’s status enhanced in October’s National Communist Party Congress and leadership term limits now abolished it’s likely that the leadership’s tolerance to a slowdown in growth may be greater than in the past. So the growth/reform nexus bears watching in terms of the outlook for global growth, commodity prices, etc. 
Australia – the main risk in Australia is an early election and the adoption of less business-friendly policies (higher taxes, more regulation) under a Labor Government which may be taken badly by financial markets. The May budget is likely to promise income tax cuts but in the absence of better polling it’s hard to see the Government calling an early election. 
Implications for investors 
These geopolitical issues have the potential to keep volatility high this year and so are worth keeping an eye on. However, there are several key points for investors to bear in mind. First, turn down the noise. Geopolitical issues create much interest, but as we seen in recent years (with eg Brexit, North Korea and Catalonia) they won’t necessarily have significant negative impacts on investment markets. Second, it’s hard to quantify geopolitical risks. You have to understand each issue separately. Finally, given the difficulties in trying to predict geopolitical shocks and their impact it often makes more sense for investors to focus on the opportunities they throw up, rather than taking long term shelter from them in low returning cash. 
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<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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