Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

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After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

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Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

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Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Investment

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The Cromwell Property Group today reported half-year (HY18) statutory profits, before the write down of intangibles, of $155.5 million up 1.5% on the prior comparable period (HY17 $153.2 million).
Net Tangible Assets (NTA) was up, gearing was down, and its Weighted Average Lease Expiry (WALE) has been extended with leasing activity described as being strong.
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In December 2017, Cromwell completed the $170 million strategic placement to SingHaiyi Group Ltd and Haiyi Holdings Pte. Ltd.
 A $30 million securities purchase plan, which gave retail securityholders the opportunity to acquire securities on similar terms closed earlier this month, oversubscribed at $35 million. 
“Our ability to grow our funds management business is directly linked to our ability to connect capital to opportunity. We now have many more established capital sources, a blue-chip roster of private equity and capital partners in Europe, and significantly more depth and relationships in Asia," said Cromwell CEO Paul Weightman.
Having increased short term gearing, Cromwell was now operating with gearing towards the lower end of our target range, he said.
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Total assets under management (AUM) increased by 11%, or $1.1 billion, to a total of $11.2 billion in the six months to 31 December 2017.
Cromwell’s business segments reported the following earnings: 
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Property Investment segment earnings were $58.2 million, a 6.9% decrease on the prior comparable period, mainly due to asset sales and the vacancy at Tuggeranong Office Park; 
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Asset services earnings increased on the back of higher project management fees; 
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Retail Funds Management earnings were $2.1 million, down $3.9 million from the prior corresponding period which saw $4.1 million in fees from the Cromwell Riverpark Trust extension; and 
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<li>Wholesale Funds Management earnings increased 14% on the back of the successful listing of CEREIT</li>
<li>A total of 11 property assets were externally revalued at 31 December 2017, representing approximately 48% of the property portfolio by value. Valuations for investment properties increased by $32.8 million during the half-year net of property improvements, leasing incentives and lease costs.</li>
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The weighted average capitalisation rate (WACR) was 6.34% across the portfolio, compared to 6.56% as at 30 June 2017. 
Tenant quality remains strong with Government and Government related entities contributing nearly two fifths (39.6%) and the top 5 tenants three fifths (59.7%) of gross income. 
The portfolio weighted average lease expiry (WALE) is 7.2 years. 
“The WALE has increased from 6.35 years in HY17, in part due to the commencement of the new lease with DSS at Soward Way,” said Mr Weightman. 
“The headline vacancy rate of 12.1% reflects the move by DSS out of their old building. Portfolio vacancy excluding the active assets is 2.6%,” he added. 
Cromwell’s lease expiry profile is favourable with less than 20% of leases expiring in the next three years. A third of these expiries are in the Sydney office market which is showing increased demand and rental growth over that period.” 
“There are only three expiries which represent more than 1% of income in this period,” said Mr Weightman. 
“Two of these are in assets which we are proposing to redevelop and reposition and we are in active negotiations with the tenant in the third asset,” he concluded. 
Cromwell had strong leasing activity in the half, executing 67 transactions on over 43,300 sqm of space. 58 of these were new leases on over 15,600 sqm of space including: 
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Northpoint had 25 new leases signed in the retail precinct and seven office leases; 
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Bechtel signed a new lease at HQ North in Brisbane for 1,300 sqm; 
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Nine leases were signed over spaces in which speculative fit-outs were underwritten at 200 Mary street. Pro-forma occupancy is now 85%; and 
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Leases of 3,900 sqm have been signed at 207 Kent Street. The most recent transactions have achieved rentals over $1,000 per sqm gross.
There were nine renewals for 27,700 sqm with nearly 90% of this being in two deals:
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<li>Therapeutic Goods Administration (TGA Complex) for five years over 18,500 sqm; and </li>
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<li>Australian National Audit Office (ANAO) at 19 National Circuit, ACT have signed a Heads of Agreement for 12 years over 5,600 sqm</li>
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Shareholders were told Cromwell continues to recycle capital from assets that have reached the end of their optimal investment term.
Health &amp; Forestry House, twin interconnected towers in Brisbane, were sold for $69 million in the half.
Post balance date Huntingfield Avenue, TAS was sold for $4.5 million completing in January 2018 and Musk Avenue, Kelvin Grove is currently under contract.
“Northpoint will reach practical completion on 19 March on budget and time,” said Mr. Weightman. 
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“25 new retail leases have been signed and fit-outs have commenced in most tenancies. Woolworths have finished stocking shelves, the rooftop bar provider has submitted a DA and the Vibe Hotel, a 4.5 Star, 187 room hotel with conference facilities and swimming pool is due to open after Easter.” 
“Having completed the development of the podium and new hotel, we will now turn our attention to leasing opportunities in the commercial office tower, where significant interest is being shown in areas with speculative fit-outs in the 100 to 500 sqm range,” he added. 
Construction of the new property at Soward Way, ACT was completed in September, creating a new fully leased commercial office building at Tuggeranong Office Park. 
The total cost of construction was $170 million, funded from cash reserves and a $159.5 million loan facility. The building is now valued at $260 million, leased for 15 years to the Commonwealth of Australia and will add to income growth in the core portfolio in FY19. 
“I mentioned previously that the old buildings at Tuggeranong Office Park, ACT are now vacant following DSS’ move to their new premises,” said Mr. Weightman.
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“We have been progressing plans to transform the old buildings into between 330 to 350 retirement or assisted living units plus communal areas.” 
“Careful analysis has been conducted into the supply and demand of retirement and independent living units in the Tuggeranong area.” 
“We know there is a marked undersupply, with strong demand and minimal competition in the local market.” 
“The ACT government has also earmarked Tuggeranong as one of their three aged care hot spots,” he confirmed.
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j.ballantyne1990-6AQqhLzZaK

Cromwell Group post half yearly profits of over $155 million

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Despite the ups and downs in the value of bitcoin, Australia’s top experts and economists don’t think the cryptocurrency is a “foolish” investment, according to finder.com.au.
Results from the December <a href="https://www.finder.com.au/bank-interest-rates" target="_blank">finder.com.au</a> <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">RBA Survey</a>, the largest of its kind in Australia, show all 33 respondents are forecasting a cash rate hold this Christmas.
There is widespread agreement among the panel (87%) that when the cash rate next moves, it will be in a positive direction.
However, opinions are divided about when the next move will happen, with a significant number of respondents predicting a long wait until the rate is adjusted.
Graham Cooke, insights manager at <a href="https://www.finder.com.au" target="_blank">finder.com.au</a>, says it’s probable there won’t be movement until the latter half of 2018.
“Even if it does nudge next year, it’s likely to be in the third or fourth quarter,” he says.
One third of the panellists aren’t expecting any cash rate movement until 2019.
Meanwhile, the upcoming Royal Commission into the banking industry may shake things up in Australia. Nerida Conisbee from REA group believes consumer confidence is the cornerstone of a well-run economy.
“It’s too early to tell what the impact of the Royal Commission will be. For Australians who feel the banks have at times been operating illegally or unethically, the Royal Commission will hopefully provide better ways for them to resolve their grievances,” she says.
Mr Cooke warns Australians not to get caught up in the Royal Commission.
"Nobody knows what the next year will have in store, and what skeletons the banks may have in their closets. However, the fact that the banks have asked for this inquiry may indicate a belief that their closets are fairly empty. Only time will tell," he says.
Meanwhile, with the value of bitcoin soaring to over US$10,000 this year and then falling sharply last week, experts weighed in on cryptocurrency as an investment.
 Most respondents (11, 79%) don’t consider bitcoin a “foolish” investment.  <a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts" target="_blank">L</a><a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts" target="_blank">ast month’s finder.com.au </a><a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts">RBA</a><a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts" target="_blank"> survey</a> showed the real impact from the bitcoin revolution could be the blockchain system behind it. "The blockchain essentially works as an unhackable record of transactions and interactions. It therefore has a wide range of applications outside of bitcoin. "Blockchains are being developed today to keep track of property ownership records and to allow expatriates and immigrants to send funds home to their families faster and cheaper than ever before – this could have far wider implications than the cryptocurrency itself," Mr Cooke says. Here’s what our experts had to say: Jordan Eliseo, ABC Bullion (Hold): "The RBA will be happy to sit tight as we approach Christmas, and monitor incoming data. With housing starting to roll over, retailers facing a tough holiday period,  and a stubbornly high Australian dollar, we remain confident that the next move will be a cut, but this will take time to play out. " Shane Oliver, AMP (Hold): "Strong business conditions, strong employment and the RBA's own expectations for stronger growth point to an eventual rate hike but low inflation, record low wages growth, the slowing housing cycle, uncertainty around consumer spending and the still too high $A argue for flat or even lower rates. So the outcome is likely to be on hold for the 16th month in a row." Alison Booth, ANU (Hold): "The fundamentals don't justify any change for the moment." John Hewson, ANU (Hold): "Insufficient data." Darryl Gobbett, Baillieu Holst Ltd (Hold): "RBA comments suggest even more uncertainty about the inflation forecasts, when falling wages growth will stabilise and the very high and rising levels of household debt, which might justify ending the very low  cash rate, but this being offset by the concerns at what a rise may do to the $A and household consumption. So hold off." Paul Dales, Capital Economics (Hold): "The RBA doesn't want to cut interest rates for fear of inducing households to take on more debt, but equally economic growth and inflation aren't strong enough to prompt it to raise interest rates." Saul Eslake, Corinna Economic Advisors (Hold): "RBA has again made it clear it has no appetite for cutting rates further, but nor will it start raising them until there is a more solid basis than presently exists for confidence that inflation will return to within the target band, that economic growth will return to trend, and that spare capacity in the labour market is being steadily absorbed." Scott Morgan, Greater Bank (Hold): "Data does not support a move at this stage." Mark Brimble, Griffith University (Hold): "While the economy could do with support and the lead into the holiday season could be a great time to generate consumer confidence, the RBA is likely to not move due to ongoing concerns in housing and credit markets." Shane Garrett, Housing Industry Association (Hold): "Australia needs interest rates to stay low at the moment. General inflationary pressures are well under control - but several components of demand are below par and need a supportive interest rate backdrop." Paul Bloxham, HSBC (Hold): "Inflation remains below target, but growth is lifting." Alex Joiner, IFM Investors (Hold): "No economic justification for a rate rise. As house price growth decelerates pressure on the RBA to raise rates dissipates. Its outlook for inflation does not warrant any move or indeed even any more of a hawkish stance." Robert Montgomery, Infrastructure Partnerships Australia (Hold): "There has been little change in economic indicators, so the cash rate will continue to remain on hold." Michael Witts, ING (Hold): "The economy continues to perform in line with the RBA's expectations, so there is no need for RBA action at this time." Leanne Pilkington, Laing+Simmons (Hold): “The OECD has recently signalled that the winds of change in the Australian economy may be preparing to blow, and that a rate rise may come sooner than previously thought. Even so, this would be 12 months away. In our view, with the heat gone from the housing market, and with wages, unemployment and inflation steady, there’s no impetus for the RBA to tinker with interest rates in the near term." Nicholas Gruen, Lateral Economics (Hold): "They've signalled they will." Mathew Tiller, LJ Hooker (Hold): "The soft outlook for GDP, inflation, and wages growth, combined with the moderation in property price growth, should keep the cash rate on hold over the short term." Stephen Koukoulas, Market Economics (Hold): "The RBA continues to ignore the signals that point to the need for an interest rate cut - low wages growth and inflation, weak consumer spending and moderate growth." Michael Yardney, Metropole (Hold): "The official RBA interest rate is likely to remain at 1.5% throughout 2018.  Australia's economy is still operating below its potential with economic growth not strong enough to justify an interest rate increase.   The positive signs of jobs creation, falling unemployment and rises in full-time employment are being offset by slow wages growth, sluggish retail sales and a benign inflationary environment.  Fortunately, the RBA will be pleased our property markets are cooling and will not feel the need to use rising rates to slow the market." Mark Crosby, Monash University (Hold): "The RBA has signalled no increases in rates for the foreseeable future. Whether or not this is wise doesn't matter, the RBA will sit on their hands for the next 6 months at least." Jessica Darnbrough, Mortgage Choice (Hold): "Anaemic inflation, combined with a drop in consumer sentiment, and non-existent property price growth over the last month, will encourage the Reserve Bank to leave the cash rate on hold once again." Alan Oster, Nab (Hold): "Still watching wages and house prices." Jonathan Chancellor, Property Observer (Hold): "The bank doesn't move unless it has to, and there's no reason now to." Matthew Peter, QIC (Hold): "The economy still contains sufficient slack to keep underlying inflation at low levels. The RBA will need to keep rates on hold well into 2018 to support our export and import competing sectors, which are currently the drivers of growth." Noel Whittaker, QUT (Hold): "House prices flattening - wages growth slow - why raise?" Nerida Conisbee, REA Group (Hold): "Economy is still too weak to increase and I would say the RBA is waiting to see what the data says early next year. " Christine Williams, Smarter Property Investing (Hold): "Overall the economy has not changed in the last month  Retail is still quite slow leading up to the festive seasons spending." Janu Chan, St. George Bank (Hold): "Low inflation and ongoing spare capacity will keep the rba from raising rates despite a more upbeat outlook for business investment and the labour market." Brian Parker, Sunsuper (Hold): "The data flow over the last month won't have significantly changed their view on the outlook for inflation or growth." Clement Tisdell, UQ-School of Economics (Hold): "No reasons to expect a change." Nicki Hutley, Urbis (Hold): "Modest demand and inflation outcomes present no risk or need to raise rates." Tim Nelson (Hold): "Inflation and wage growth remain low. Both are expected to increase only gradually over time. Further progress is expected on reducing spare capacity in the economy and current rate settings appear consistent with sustainable growth and achieving the medium-term inflation target." Other participants: Bill Evans, Westpac (Hold).
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jonathanchancellor-7SQnKwU6yx

Bitcoin is no foolish investment, say 80% of Australian experts

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The month of October often creates apprehension amongst investors given its historic track record with the 1929 and 1987 share market crashes. And it was in October 2007 that US shares peaked ahead of 50% plus falls (in most share markets) through the Global Financial Crisis (GFC). 
From the post-GFC share market lows in March 2009, US shares are up 278% and global shares are up 196% to new record highs and Australian shares are up 92%. After such strong gains it’s natural to wonder whether another major bear market is imminent. 
Aside from left field events triggering a crash, the key question remains where are we in the investment cycle? 
This note updates our analysis on this front from earlier this year and also provides a comparison to 1987. 
Second-longest US cyclical bull market since WW2
The cyclical bull market in US shares is eight and a half years old. It’s the second longest since World War Two and the second strongest in terms of gain. See the next table. 
<a href="https://www.propertyobserver.com.au/images/2017/10/19/Shane1.jpg" target="_blank">Click to enlarge</a>
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At the same time, according to the US National Bureau of Economic Research the current US economic expansion is now 100 months old and compares to an average expansion of 70 months.
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The concern is that with the US bull market and economic expansion both old, US shares are vulnerable to another bear market and, by implication, global and Australian shares are, too. 
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Still in the sweet spot in the investment cycle 
First some context. The next chart is a stylised version of the investment cycle – the thick grey line is the economic cycle.
<a href="https://www.propertyobserver.com.au/images/2017/10/19/Shane2.jpg" target="_blank">Click to enlarge</a>  
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A typical cyclical bull market in shares has three phases: scepticism – when economic conditions are weak and confidence is poor, but smart investors see value in shares helped by ultra easy monetary conditions; optimism or the “sweet spot” – when profits and growth strengthen and investor scepticism gives way to optimism while monetary policy is still easy; euphoria – when investors become euphoric on strong economic and profit conditions, which pushes shares into clear overvalued territory and excesses appear forcing central banks to become tight, which combines with overvaluation and investors being fully invested to drive a new bear market. 
Typically, the bull phase lasts five years. However, “bull markets do not die of old age but of exhaustion” – their length depends on how quickly recovery precedes, excess builds up, inflation rises and extremes of overvaluation and investor euphoria appear. 
Our assessment is that we are still in the “sweet spot” phase, albeit more advanced now. Global economic indicators are strong, growth forecasts are being revised up as highlighted by the IMF and this is driving stronger profits. But thanks partly to the slow post GFC recovery, there are still few signs of the sort of excesses that characterise the “euphoria” phase that ultimately leads to the “exhaustion” of the cyclical bull market and the next bear market. 
- There is no overinvestment globally. While the US recovery is further advanced than most, even here business investment and housing investment (excesses in which preceded the tech wreck and GFC, respectively) are around or below long-term averages relative to GDP. 
- Overall private sector debt growth is modest in most countries.
- After years of below trend growth globally, spare capacity still remains &amp; this (along with technological innovation) has been constraining inflation. Wages growth remains weak and has only just started picking up in the US. Core inflation in major countries ranges between 0.2% in Japan to 1.3% in the US. 
<a href="https://www.propertyobserver.com.au/images/2017/10/19/Shane3.jpg" target="_blank">Click to enlarge</a>
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- As a result, global monetary conditions remain easy and without a surge in inflation look likely to remain so. The Fed is continuing to tighten but it’s “gradual” and from a very easy base and other central banks (including the RBA) are on hold. A shift to tight money that brings about a global economic downturn looks a fair way off. 
- Share market valuations are mostly okay. Measured against their own history, shares are no longer cheap. This is particularly so for US shares. But once allowance is made for low inflation and still-low bond yields, shares are fair value to cheap depending on the market (next chart). 
<a href="https://www.propertyobserver.com.au/images/2017/10/19/Shane4.jpg" target="_blank">Click to enlarge</a>
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Finally, while short term investor sentiment bullish, long- term measures of positioning are not. In the US, the huge investor flows into bond funds over the last few years have yet to reverse in favour of shares. In Australia, sentiment towards shares remains low. Still no euphoria here. 
It may also be argued that major non-US share markets and Australian shares did have a bear market in both 2011 and 2015-16 so their cyclical bull markets are not old at all. 
Overall, we are still not seeing the signs of excess, euphoria and exhaustion that typically come at cyclical economic and share market peaks ahead of recessions and deep bear markets. So barring some sort of external shock, the cyclical bull market in shares looks like it still has further to go. 
What to watch? 
The key to watch for the next big bear market is for signs of excess – eg, overinvestment in key areas, rapidly-rising inflation, aggressive tightening in monetary policy, clear overvaluation and investor euphoria. This would then set the scene for the next economic downswing and hence a more severe bear market (as opposed to a correction or short-term bear market like we saw in 2015-16). At the moment, it’s hard to see much excess but we do expect US inflation to start rising from here.
One risk is that the longer things remain benign, the more investors will expect them to remain benign and this will result in excessive risk taking setting up the scene for a sharp fall in markets. But it’s only lately investors have started to get comfortable. So this may have further to go.
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What about comparisons to 1987? 
October 19 marks the 30th anniversary of the 1987 share market crash and as always comparisons are being wheeled out. While the bulk of the crash was concentrated in October 1987 (US shares fell 20% on October 19 and Australian shares fell 25% on October 20), US shares fell 34% over three months and Australian shares lost 50% over two months. The causes remain subject to debate – but the key appears to have been a 3% rise in US inflation, a 2% rise in US bond yields and Fed tightening hitting markets after a period of very strong gains. The following tables provide a brief comparison to today. 
<a href="https://www.propertyobserver.com.au/images/2017/10/19/Shane5.jpg" target="_blank">Click to enlarge </a>
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Compared to 1987, the gains over the past 12 months have been more modest and while forward price to earnings ratios are higher (in the US) or the same, this should be the case given far lower inflation and bond yields and real dividend yields are far more attractive.
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It’s also noteworthy that share markets had already started to break down before the October 19 1987 crash whereas that has not happened now. As an aside, it’s worth noting that despite the 1987 crash, economic growth was barely impacted and so shares moved higher in 1988 and 1989. 
Investment implications 
First, corrections should be anticipated – with Trump, North Korea and the Fed being potential triggers – and the fickleness of investor confidence means we can’t rule out another crash like in 1987. But despite this we still appear to be a long way from the peak in the investment cycle. 
Second, non-US share markets and economies are less advanced in their cycles and provide opportunities for investors. 
Finally, it’s worth noting that several bad years (1987 and 1929) have given Octobers a bad wrap globally. While historically they have been a soft month in Australia (with shares down an average 0.3% since 1985 in October), they have actually been positive in the US (up 1% on average). 
Dr Shane Oliver Head of Investment Strategy and Chief Economist AMP Capital 
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soliver-smf6LQXgW9

Where are we in the global investment cycle and what's the risk of a 1987 style crash? Shane Oliver

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It is the age-old query of anyone with capacity to invest. Which is the better investment - shares or property?
After allowing for costs, residential property has often provided a higher return than shares according to many studies. Both tend to be far superior to cash and bonds.
But the answer invariably depends on the selected timeline involved.
Property wins in the decade or two decades to December 2015, outperforming Australian shares for the lowest and highest marginal tax rates after gearing, but shares win in the 13 year period to December 2016. That's for an average Australia-wide property investment scenario, with Sydney property investors enjoying far greater success than say regional NSW investors.
Hence the determination really is best answered by your individual capacity, stage of life circumstances, the desired diversity and your outlook.
Much comes down to your risk tolerance, so for some bank deposits rank as the wisest place for savings. 
The recent spending spree by investors on Sydney property was hardly short-term speculation- rather actually driven by the flight to longterm surety with investors seeking a mix of yield and capital gain along the way to hopefully funding their looming retirement years.
Its exuberance almost ended up pushing too far, but it appears the regulatory cooling measures has nipped the Sydney boom back from the edge, before it gave way to a hurtful price reversal.
Housing investment is less volatile than the wild ride of the sharemarket.
And for many investors the actual bricks and mortar seem safer than the stockmarket and its share scrip.
You can always drive past your investment property and see it.
But those share certificates in the bottom draw of the desk in the home office can become totally worthless. These shares can also suffer at the hands of a market of short sellers, speculators who don't want shares to necessarily go up in price.
But property does also offer a much lower level of liquidity and diversification. Investing in the stock market comes with virtually no transaction costs apart from capital gains tax when you exit your investment. Shares potentially offer income and low costs as you don’t directly pay pesky maintenance costs, council rates and land tax bills. 
Your labour of love as an investor can see worrying times when the property is vacant.
A recent analysis from a cashed-up sharemarket investment company rightly warned the very long-term investment chart showed several occasions of property prices going down by significant amounts.
However the example it highlighted was the crash in 1896 when it took six decades before property prices recovered to their previous levels in real terms.
As we all know, past returns are not a good guide to future returns.
And the world is vastly different for the current generation of investors than pre-Federation 1896.
Investors do need to envisage worse case scenarios in our modern times, because yes price growth isn't guaranteed, and indeed prices can go backwards.
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jchancellor-FAypfDUnLy

Which is better: Shares Vs Property

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GUEST OBSERVER
Introduction
The issue of rising inequality has seen increasing interest over the last year or so, particularly following the Brexit and Trump votes for which rising inequality was seen as a key driver.
This is an issue we have looked at before in terms of driving a swing to the left amongst median voters in Anglo countries and contributing to a backlash against economic rationalist policies but this note takes a more detailed look at the economic and investment implications.
Is inequality rising?
Because inequality is a politically-charged issue, all sorts of numbers are thrown around with a favourite seeming to be the share of gross income going to a particular income group, say the top 1% or 10%. But this may not be the best guide because of the impact of progressive income taxes and welfare transfers.
In fact, the best measure of income inequality is the Gini coefficient calculated on incomes after taxes and transfers. Basically it shows the variation between the actual distribution of income in a country and what would apply if it’s distributed perfectly equally. As such, it ranges from zero indicating perfect equality to one indicating perfect inequality with one household, or individual, receiving all income. Naturally, there is much debate about the data but the best available for global comparisons appears to be from the OECD and the Standardised World Income Inequality Database.
The Gini coefficient from these sources is shown for various countries and for developed and emerging country averages in the next chart.
<a href="https://www.propertyobserver.com.au/images/2017/08/14/Screen%20Shot%202017-08-14%20at%208.24.59%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/14/Screen%20Shot%202017-08-14%20at%208.24.59%20AM.png" alt="">
As might be expected, emerging countries are less equal than advanced countries but the key point is that there has been a general trend higher in inequality during the last 30 years. This is particularly evident in the emerging world and the US, but less so in the Eurozone where it’s actually been stable since the mid-1990s.
There has also been a rising trend in Australia, although its stabilised since 2008 (and the data pre 1994 is less reliable). In terms of advanced countries, the US and UK are the least equal, and Eurozone and Scandinavian countries tend to be more equal. Inequality in Australia is above the OECD average but below that in the US and UK – see the next chart. 
<a href="https://www.propertyobserver.com.au/images/2017/08/14/Screen%20Shot%202017-08-14%20at%208.26.07%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/14/Screen%20Shot%202017-08-14%20at%208.26.07%20AM.png" alt="">
With rising levels of income inequality also appears to have come an increase in wealth inequality. After falling into the 1970s, the share of wealth in the US held by the top 0.1% has increased from around 7% to over 20%. To some degree, 
rising wealth inequality is not that surprising as higher income earners save a higher proportion of their income and allocate a higher proportion of their savings to growth assets (like shares and property) that have higher long-term returns than bank deposits provide. So naturally their wealth will grow faster than that of lower income earners.
Easy money from central banks post the Global Financial Crisis (GFC) may have contributed to this but returns from growth assets haven’t been in excess of pre-GFC norms, and the higher unemployment that would have followed if central banks had not run easy money would have arguably resulted in a far more significant increase in inequality.
What has driven the increase in income inequality?
The rise in the level of inequality likely reflects a range of drivers:
The rise in the profit share of GDP from its lows around the early 1980s in developed countries (which it should be recalled was depressing economic growth at the time) likely benefitted higher income earners who derive a greater share of income from profits (via higher levels of company ownership either directly or via shares).
Technological innovation has likely boosted inequality as it: boosted demand for skilled workers at the expense of unskilled workers; supplanted middle income jobs in more recent years; and has contributed to a “superstar economy” in which a few “winner-take-all” firms (and their owners) and app designers can earn super normal returns (and hence income) globally without generating the jobs and incomes that the technologies of the past might have (think Google or Facebook versus Ford or GM in their heyday).
Globalisation, by supplanting low income jobs in advanced countries, may have contributed to increased inequality.
Rapid economic development in emerging countries at a time when their progressive taxation systems are not fully developed likely benefitted higher income earners more than lower income earners in these countries, even though living standards rose across the board.  But why is it only causing angst now?  
As the first chart shows, inequality has been trending up globally for many years so why has it become more of an issue lately? Prior to the GFC, rising levels of inequality were likely masked as either wages were rising solidly and/or people were able and willing to take on more debt. When your own income or at least your living standard is on the rise, you are less likely to take note of those better off than you are. But when your income growth slows and you are less able to take on more debt to make up for it, how the "better off" Jones’s are doing becomes a bigger issue.  
<a href="https://www.propertyobserver.com.au/images/2017/08/14/Screen%20Shot%202017-08-14%20at%208.27.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/14/Screen%20Shot%202017-08-14%20at%208.27.34%20AM.png" alt="">
This has been an issue for much longer in the US (with median real incomes reportedly stagnating since the early 1980s) but may be becoming an issue in Australia, too. The recent HILDA (or Household Income and Labour Dynamics in Australia report), which tracks roughly 7000 Australian households since early last decade, shows a flat Gini coefficient for its sample of households since 2001 (in contrast to the much broader measure shown in the first chart) but stagnant real median incomes since 2009 (see the next chart), suggesting it’s the weakness in incomes (made worse by record low wages growth) that’s the real issue.  
Worker insecurity post the GFC, with higher levels of underemployment and rapid workplace change partly as a result of technological disruption, is likely adding to anxiety and tension around the issue of rising inequality.  Angst around the issue may also be accentuated in Australia by the issue of poor housing affordability, with many millennials feeling that they are locked out of home ownership although this is perhaps more an intergenerational issue.  Why is rising inequality an issue economically and for investors?
 A degree of inequality is essential in a free market economy to ensure there are incentives to be productive, invest and innovate.
For example, it makes sense that wages and incomes grow faster in some usually higher skilled areas than others to encourage people to train and work in areas where there is stronger demand. However, (putting aside the debate about “fairness”) inequality that rises too high can reduce economic growth. It can do this because households with high disposable incomes save more and spend less than low income households who survive from pay day to pay day, and this will result in slower short-term economic growth.
High levels of inequality can also create social tensions, which can disrupt production and investment and hence economic growth.  Inequality may become an even bigger issue going forward as technological innovation risks concentrating income and wealth in the hands of a few global winners, which could further drive up inequality over time.
So for all these reasons, inequality is an issue that governments should be interested in.  The danger is that such a focus may lead to a return to economic policies, such as ever-higher top marginal tax rates, that discourage work effort, lead to a smaller national cake than would otherwise be the case, and a return to the worker versus boss confrontational environment that resulted in lower growth in productivity and living standards in the 1970s.
This is particularly a risk in Australia where the tax system is already very progressive (with the top 10% of income earners contributing around 45% of total income tax revenue raised) and the top marginal tax rate is high by global standards.  The risk is that rising inequality and a populist response to it help drive a shift away from rational economic policies, which ultimately leads to slower productivity growth and eventually rising inflation as the supply side of economies is damaged.
Which, in turn, will contribute to constrained medium-term investment returns. So the key for governments and policy makers in seeking to address the issue of rising inequality is to get the balance right between achieving an outcome which is fair and contributes to balanced sustainable growth but not going so far as to depress incentive and productivity. 
<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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Inequality and what it means for economic growth and investors

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The Boating Industry Association has thrown its support behind the proposed Eden Marina development on the NSW South Coast, stating that its economic value is “greater than other investments in the region”.
The developers of the Eden Marina project at Cattle Bay recently released a report by consultants GHD which calculated the $130 million development would deliver 150 direct and indirect jobs per year in the first four years of the project.
A key part of the project is the construction of a wave attenuator to protect the marina from Eden's notorious storms.
So far, the NSW State government has agreed to the construction of an attenuator to protect the neighbouring bay, Snug Cove, where there are plans to extend the wharf to accommodate cruise ships as well as proposals for a separate marina development.
However the local Bega MP and NSW Minister for Transport and Infrastructure, Andrew Constance, recently ruled out any additional funding for an attenuator to protect the Cattle Bay development.
In response, Howard Glenn, BIA national CEO, has called on the state government to work with the industry in order to facilitate investment in new boating infrastructure.
“The GHD report clearly shows the case for investment [at Cattle Bay].
“I briefed Andrew Constance on the report at a very positive meeting last February in Bega.
“I went down to Eden again myself to see the sites and get clear in my head how different they are.
“I’m not acting on behalf of the developers, and didn’t speak for them with Andrew Constance, but on behalf of industry as a whole, which is keen to see boating infrastructure improved.
“The economic value of the Cattle Bay project is greater than other investments in the region, but depends on protection from a wave attenuator that has to be built in the water owned by Crown Land.
“Money collected by Government from boaters’ licence and registration fees is available to fund the construction of this wave attenuator.
“Unfortunately, the Cattle Bay project and the Snug Cove project are seen as in competition.
“If there were to be only one wave attenuator built, then Cattle Bay represents much greater value for money.
“This could be demonstrated easily by running the same numbers for benefit/cost ratios on each project.
“But both projects have merit, and will provide different services to boaters, at different price points.”
In a letter to the local newspaper, spokesperson for the Eden Marina at Cattle Bay, Bob Carter, said:
“The business case for the wave attenuator at Cattle Bay, to be funded by the NSW Government on Crown Land, is extremely robust.
“A relatively small investment by government will release a $130m international hotel and marina project at Cattle Bay which will bring sustained employment and change the face of Eden for the better.
“Governments of all persuasions throughout Australia build breakwaters and wave attenuators on Crown Land for the benefit of the related assets which can then be developed.
“The NSW Government is building a wave attenuator at Snug Cove because there is a good case for it.
“It is extending the wharf with public funds because there is a viable economic benefit for bringing cruise ships to Eden.
“Those who benefit from these two NSW Government infrastructure projects are not asked to fund this good work.
“The Eden Marina at Cattle Bay is asking to be treated no differently.
“There is an approved marina at Cattle Bay, ready to go.
“In this respect the Eden Marina at Cattle Bay project is many, many years ahead of the proposed marina at Snug Cove.”
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Boating Industry Association backs Cattle Bay marina project in Eden

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Fractional property investing platform BrickX has added a terrace home in Melbourne’s Brunswick West to its portfolio for investors to buy ‘bricks’.
Pre-orders start June 23 at $99 a ‘brick’ for the property at <a href="https://www.brickx.com/properties/BRW01/summary" target="_blank">10 Shamrock Street</a>.
BrickX, which puts properties into an individual trust and split each one into 10,000 units or ‘Bricks’ which investors can then buy, recently launched several properties in Sydney. 
Its previous buy was in Manly. The <a href="https://www.brickx.com/properties/MAN01/summary?utm_source=mailchimp&amp;utm_medium=email&amp;utm_campaign=manly&amp;utm_content=warmup&amp;utm_term=button" target="_blank">4/8 James Street</a> property is a two-bedroom apartment and was offered at an initial 'brick' price of $87.
The company says they were snapped up the same day by investors.
CEO Anthony Millet expects the offering in Melbourne to be popular with investors further, adding to the current Melbourne portfolio of Prahran and Port Melbourne. “We’re thrilled to provide access to such a stunningly transformed terrace at an affordable entry price of just under $100,” Millet said. 
The three-bedroom, two-bathroom terrace with an undercover carport on Shamrock Street boasts a courtyard along with a private rooftop garden off the master bedroom.
The 169 sqm property's selling price was $1,190,000, according to CoreLogic. It was sold through Nelson Alexander Real Estate Brunswick.
It last traded for $371,750 in 2003.
 <img src="https://www.urban.com.au/images/2017/06/21/BrickX.png" alt="">
“With the initial Brick price being $99, BrickX continues to strive to make property investment affordable for all Australians,” said Millet.
Investors earn capital returns and monthly net rental income in proportion to the number of ‘bricks’ they own. Members can choose when to invest and when to exit by offering their ‘bricks’ for sale on its platform. 
CoreLogic head of Research Tim Lawless, who is also an adviser at BrickX, said there is strong demand for property close to the city, university and social precincts. 
Data from the property analytics firm show house prices in Brunswick West have increased by almost 6.6 per cent per year over the past five years.
“Brunswick West has a strong rental market which has contributed to ongoing low vacancy rates and high demand. With convenient tram and train access to the CBD, the area is particularly popular with university students and young families,” he said.
BrickX added three Sydney properties in the last two months — Potts Point, Surry Hills and Darlinghurst. 
This is in addition to properties in Prahran and Port Melbourne in Melbourne and Manly, Bondi Beach, Enmore, Mosman, Annandale and Double Bay in Sydney.
For more details on how to invest, <a href="https://www.brickx.com/" target="_blank">click here</a>.
<a href="https://www.brickx.com/"> </a>
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BrickX launches terrace home in Melbourne’s Brunswick West at $99 per brick 

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Property Investment Professionals of Australia (PIPA) has urged the government to take a sensible approach to housing affordability policy, following its discussions with government representatives in April and ahead of the 2017 Federal Budget.
As the peak body for the property investment industry, PIPA has emphasised that regulation and education remained key.
PIPA chair Ben Kingsley welcomed the federal government’s decision to rule out changes to negative gearing and hoped this was reflective of a well-considered approach to addressing affordability issues both on the buying and renting sides.
“Housing affordability is challenging, but there’s no easy fix. We welcome the government’s focus on this issue but urge them to adopt sensible measures that reflect the national market needs, rather than any of the radical changes that have been floated by some corners of the market such as axing negative gearing and SMSF property investment,” Kingsley said.
“PIPA supports thoughtful and varied solutions that promote supply and cool demand and consider the long-term viability of the market and broader economy.”
Kingsley said that while no policy would ever reduce the price of quality property in the inner suburbs of major capital cities due to continued strong demand versus limited and geographically-constrained supply, strategic policies could work to encourage more supply in urban locations.
“Potential policies that could stimulate supply include measures that encourage developers to build more family-friendly accommodation, such as three or four bedroom units. Incentives to encourage the release of bulk land lots in new greenfield areas could also boost supply,” he said.  
According to data from CoreLogic, residential housing stock alone is estimated to be worth $6.9 trillion, which is more than three times Australia’s total share market capitalization of $1.7 trillion and our total superannuation pool of $2.2 trillion.
“Any policy changes that could impact the value of this asset class, need to be thoroughly considered,” he added.
“The residential property cycle plays a significant role in the country’s overall economic performance, as we’ve seen by the recent strong stamp duty receipts in New South Wales which have helped to fund the state’s robust infrastructure program.”
Kingsley also reinforced the role property played in building everyday Australians’ wealth.
“While high property prices can be incredibly frustrating for those trying to enter the market, we need to remember that property is a key feature of many everyday Australians’ wealth creation strategies," he said.
“Property is an accessible, trusted source of wealth that can help just about anyone build a better future. We need to be very careful when it comes to playing around with measures that could hurt the value of these assets.”
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PIPA urges sensible approach to housing affordability 

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The Australian Tax Office (ATO) released their taxation statistics for the 2014-15 financial year last week, and from a housing market perspective it provides some really valuable data on property investor behaviour.
<a href="https://www.propertyobserver.com.au/images/2017/04/20/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years__.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/20/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years__.png" width="700" height="425">
Over the 2014-15 financial year, property investors claimed $11.120 billion in net rental losses compared to $7.491 billion in net rental profit.  The value of net rental profit rose by 0.3% over the year while the value of net rental losses was -2.3% lower resulting in an overall position of $3.628 billion in net rental losses claimed over the year. The $3.628 billion in rental losses over the year was the lowest value of overall losses since 2003-04.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_pct_of_individuals.png" target="_blank">CLICK TO ENLARGE</a>
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_pct_of_individuals.png" target="_blank"><img src="https://www.urban.com.au/images/2017/04/21/rsz_pct_of_individuals.png" width="700" height="425"></a>
Over the 2014-15 financial year, 15.7% of individuals claimed net rent. Overall, 6.0% of individuals claimed a net rent profit, and 9.7% of individuals claimed a loss.
The data also highlights that a relatively small proportion of individuals actually own an investment property, but the portion is growing. In the 2004-05 financial year, 13.6% of individuals claimed net rent. In 1994-95, the figure was 11.3%.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_net_rental_profit.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_net_rental_profit.png" width="700" height="425">
The above table breaks down the proportion of total individuals that are claiming a net rental profit or loss by their age.  Individuals aged 70 to 74 years of age are the most likely to be claiming a net rental profit while individuals aged between 50 and 54 years of age are the most likely to be claiming a net rental loss.
If we look at the proportion of total net rental loss/profit claimants by age group, the trends are quite interesting.  Less than a quarter (24.4%) of those individuals claiming a net rental profit are less than 45 years of age.  Conversely, almost half of those individuals claiming a net rental loss over the year were under 45.   The table shows that as an individual ages, they are increasingly less likely to be claiming a net rental loss.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_average_net_rental.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_average_net_rental.png" width="700" height="425">
Looking at the average net rental profit/loss by age group shows that older individuals are likely to claim greater net rental profits.  At the same time, individuals aged between 50 to 54 years of age are likely to be claiming the greatest losses.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_loss_by_income.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_loss_by_income.png" width="700" height="425">
Individuals with a taxable income of between $500,001 and $1 million are most likely to be claiming a net rental profit while individuals earning between $40,000 and $50,000 are the least likely to claim net rental profits.  In terms of net rental losses, 23.8% of all individuals with taxable incomes between $250,001 and $500,000, as well as $500,001 and $1 million, are claiming net rental losses.  As taxable incomes increase, the data shows that these individuals are overall more likely to own rental properties and therefore claim either a net rental profit or loss.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_claimants_of_net_rental.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_claimants_of_net_rental.png" width="700" height="425">
Looking only at those individuals claiming a net rental profit or loss, the most likely to be claiming either have a taxable income of $100,001 to $150,000.  The least likely income range to be claiming a net rental loss or profit are those with a taxable income of more than $1 million.The above table shows the average net rental profit or loss claimed by taxable income ranges. People with a higher taxable income generally receive both the greatest average net rental profits and net rental losses.  
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years___1.png" target="_blank">CLICK TO RESIZE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years___1.png" width="700" height="425">
Previous data has shown that relatively few people sit in the higher taxable income brackets however, those that do and own an investment property enjoy substantially greater average profit or loss from those rental properties.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_2012-2013.png" target="_blank">CLICK TO EXPAND</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_2012-2013.png" width="700" height="425">
The final table highlights the number of individuals with interests in rental properties over the three most recent years along with how many properties they have an interest in. Overwhelmingly most people that have an interest in a rental property have an interest in only one with 90.3% of individuals having an interest in two or fewer rental properties.  
Over the most recent year, the number of individuals with an interest in five properties has recorded the greatest growth (7.4%) followed by: six or more properties (5.3%), four properties (4.5%), three properties (4.0%), two properties (3.4 properties) and one property (1.7%).
The data provides great insight into the characteristics of property investors.  The data shows that just under 16% of individuals are property investors and, over recent years, the number claiming a net rental loss has been relatively unchanged.  
Furthermore, as interest rates have fallen, relatively fewer individuals are claiming a net rental loss.  As you would expect, people in the middle of their working life are most likely to be claiming net rental losses and older individuals are most likely to be earning a profit from their rental property.  Those on higher incomes tend to claim higher average net rental profits and losses.  
Finally, for most Australians that own a rental property, they only own one. However, individuals with a greater number of investment properties have been experiencing faster growth than those with relatively few properties over recent years. With interest rates having fallen even further since June 2015 we would anticipate that the total value of net rental losses has also reduced.  At the same time we have seen investment lending become more active since mid-2015. 
It will be interesting to see if that reflects a greater number of individuals owning investment properties, or those that already own investment properties buying more.  We will have to wait until next year’s data to see how this plays out.
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ckusher-ujnxiKuFQs

The number of individuals claiming a net rental loss has flat-lined over recent years: Cameron Kusher

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Australian commercial property is seen as highly attractive by global investors with a total of $18.2 billion targeting Australia, owing to their high yields, stable economic outlook and open and transparent market, according to recent research. 
Australia is the world’s sixth most popular destination for investment capital in 2017, behind the US, China, UK, Japan and Germany, according to the latest Great Wall of Money Report by real estate firm Cushman &amp; Wakefield.
The report tracks the amount of newly raised capital, including debt and equity, targeting real estate at a global level. The total global wall of money has fallen by 2 percent compared with 2016, the first drop since 2011 but current levels are still the second highest on record, it says. 
Adjusted for investable market size, Australia is number second behind Sweden, said James Quigley, head of Capital Markets, Australia and New Zealand.
“Our comparatively high yields, stable economic outlook and open and transparent market help to ensure our commercial property is highly attractive to global investors,” he said.
While the total amount of available capital fell slightly, the amount of new equity raised increased by 5 percent over the past year. The overall decline is a function of reduced debt availability as a result of regulatory changes, lower gearing and currency movements.
For APAC, available equity increased by 1 percent since 2016, whereas in Australia this rose by 8 percent, up from $16.8 billion in the last year highlighting the relative attraction of the country as an investment destination. This builds on a substantial increase in the prior year, with capital targeting Australia up 20 percent from $15.1 billion since 2015.
“The data highlights the relatively advanced state of the global CRE cycle and the difficulty of finding assets that meet return criteria. While available capital remains high, fund raising activities have slowed as investors focus on deploying existing capital,” said Dominic Brown, head of Research, Australian &amp; New Zealand.
<a href="https://www.propertyobserver.com.au/images/2017/03/15/CushmanCRE.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/15/CushmanCRE.png" alt="">
In Australia, Q1 investment volume (as at March 9) is already nearly $5 billion, and remains on track to deliver the highest first quarter total since the $5.2 billion recorded in Q1 2011. 
This follows from a strong volume recorded in Q4 2016 of $9.7 billion. Of the total investment to date in the March quarter, foreign investment remained robust representing 52 percent of the overall transaction volume.
While New South Wales was the top destination for investment during 2016 of all states and territories with 37 percent of overall volume, Victoria and Queensland stand as the most traded destinations so far during the current quarter. During Q1 the most active purchasers have been unlisted funds, with unlisted funds and REITs the largest sellers.
“Demand for Australian CRE remains strong, though limited stock availability in 2016 caused Australian office and retail property transaction volumes to fall.” However, transaction volumes are expected to increase in 2017,” Dominic Brown said.
James Quigley added that “more stock is likely to come market as institutional owners look to dispose of non-core assets and more active traders offer repositioned assets for sale as they seek new opportunities”.
Turnover is also expected to increase in the Sydney CBD where Quigley estimates over $2 billion in stock is likely to come to market.
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