<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
<p data-end="577" data-start="264">The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.</p>

<p data-end="577" data-start="264">The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.</p>

<p data-end="577" data-start="264"><img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" /></p>

<p><em>Interior view from the Northern Building Penthouse overlooking the park</em></p>

<p>&nbsp;</p>

<p data-end="1070" data-start="809">The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.</p>

<p data-end="1246" data-start="1072">Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.</p>

<p data-end="1483" data-start="1248">Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.</p>

<p data-end="1854" data-start="1485">Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”</p>

<p data-end="2059" data-start="1856">The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”</p>

<p data-end="2318" data-start="2061">The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.</p>

<p data-end="2486" data-start="2320">Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.</p>

<p data-end="2486" data-start="2320"><img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" /><em>Interior View of the Heritage Building Apartment</em></p>

<p data-end="2814" data-start="2488">The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.</p>

<p data-end="3188" data-start="2816">&nbsp;</p>

<p data-end="3625" data-start="3404">The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.</p>

<p data-end="4003" data-start="3627">The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.</p>

<p data-end="4149" data-start="4005">Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.</p>

<p data-end="4488" data-start="4151">The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.</p>

<p data-end="4609" data-start="4490">The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.</p>

<p data-end="4894" data-start="4611">“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.</p>

<p data-end="5090" data-start="4896">The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.</p>

<p data-end="5090" data-start="4896"><img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" /></p>

<p data-end="5304" data-start="5092">The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.</p>

<p data-end="5498" data-start="5306">Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.</p>

<p data-end="6154" data-is-last-node="" data-is-only-node="" data-start="5806">In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”</p>

<p>Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.</p>

<p>The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.</p>

<p>It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.</p>
</section>


Joel Robinson

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

<p>The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.</p>

<p>Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.</p>

<p>The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.</p>

<p>The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.</p>

<p>Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.</p>

<p>The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.</p>

<p>The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.</p>

<p>Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.</p>

<p>Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.</p>

<p data-end="345" data-start="110">The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.</p>

<p data-end="689" data-start="347">Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.</p>

<p data-end="689" data-start="347">Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.</p>


Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

<p>Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.</p>

<p>The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.</p>

<p>The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.</p>

<p>The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" /></p>

<p>SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.</p>

<p>“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" /></p>

<p>The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.</p>

<p>Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" /></p>

<p>“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.</p>

<p>The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.</p>

<p>The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.</p>

<p>Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a></em></p>


First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.</p>

<p>The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.</p>

<p>The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.</p>

<p>SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”</p>

<p>The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" /></p>

<p>The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.</p>

<p>A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.</p>

<p>Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" /></p>

<p>The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.</p>

<p>Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.</p>

<p>The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.</p>


First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

Investment

<html><body>
<p>GUEST OBSERVER </p>
<div class="page" title="Page 4">
<div class="layoutArea">
<div class="column">The end of the mining investment downturn, which remains the dominant dynamic shaping Australia’s investment project pipeline, is in sight.</div>
<div class="column">
<br>The 5 remaining mega gas projects under construction, with a combined value of $172bn, are due to be completed by end 2017.</div>
<div class="column">
<br>This will see the value of definite mining projects (those under construction or committed) fall sharply, down from $201bn currently.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.42.14%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.42.14%20AM.png" alt=""></div>
<div class="column">
<br>The other key dynamic, albeit less powerful, is the upswing in public transport projects.</div>
<div class="column">
<br>Definite public transport projects are now valued at $100bn. This represents a sharp increase on a year ago, up $45.4bn, including a $5.3bn rise in June <br>State by state, there is a stark divide. The mining investment downturn is being felt in Qld, WA and the NT.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.43.49%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.43.49%20AM.png" alt=""></div>
<div class="column"> </div>
<div class="column">While it is the state governments in NSW and Victoria, which are benefitting most from the housing boom, that are leading the way on public investment. </div>
<div class="column"> </div>
<div class="column">
<div class="page" title="Page 5">
<div class="layoutArea">
<div class="column">Australia’s investment project pipeline was $812.8bn in September 2016, as reported by Deloitte Access Economics in their Investment Monitor. The database includes 1,102 investment projects valued at $20mn or more.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.44.52%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.44.52%20AM.png" alt=""></div>
<div class="column">
<br>This is $9.7bn lower than three months ago. Projects completions were worth $6.8bn in the quarter, while project deletions were $18.1bn, including the cancelling of the ‘possible’ $12bn Port Hastings development in Victoria.</div>
<div class="column">
<br>44 new projects were added to the database, with a value of $6.3bn.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.45.58%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"> </div>
<div class="column">
<img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.45.58%20AM.png" alt=""><br><p>Cost revisions added $8.9bn, including WestConnex, which increased to $16.8bn from $11.5bn following an updated strategic business case.</p>
</div>
<div class="column">The value of definite projects (under construction or committed) increased to $434.7bn in September, +$3.6bn on June and $28.2bn above a year ago.<br>Note, the Wheatstone LNG project, valued at $29bn in the database, has reportedly experienced a cost blowout of $6.6bn.<br><br>Note: the database includes the full value of a project until it is completed or deleted. This differs from the ABS notion of the ‘work pipeline’, which is the value of work yet to be done on projects currently under construction. </div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.46.59%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.46.59%20AM.png" alt=""></div>
<div class="column">
<br>Non mining: Publis transport leads the way</div>
<div class="column">
<br>The transport &amp; storage sector has re-emerged as a driver of the investment pipeline as state governments, particularly in NSW and Victoria, commit to new public transport initiatives.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.48.00%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.48.00%20AM.png" alt=""></div>
<div class="column">
<br>Total non-mining projects are valued at $432.2bn. Of that, $233.8bn are at the definite stage, which is $4.6bn higher than in June and $43.5bn above the level of a year ago.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.49.04%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.49.04%20AM.png" alt=""></div>
<div class="column">
<br>Definite public transport projects are now valued at $100bn. This represents a sharp increase on a year ago, up $45.4bn, including a $5.3bn rise in June.</div>
<div class="column">
<br>NSW leads the way in public transport projects, with $37bn worth under construction and a further $18.5bn at the committed stage.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.50.16%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.50.16%20AM.png" alt=""></div>
<div class="column">
<br>Victoria has $22.1bn in definite public transport projects, although $13.3bn of these are at the committed stage (the $11bn Metro project starts in 2018).<br>For services (retail, finance &amp; business services, accommodation, community services) the definite project pipeline is $64bn, up from a 2010 low of $39bn but flat over the past two years. Projects at the planning stage total $46bn, including a number in the tourism sector, which is a potential bright spot. </div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.51.08%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column">
<img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.51.08%20AM.png" alt=""><br><br>Investment pipeline: State by state<br><br>The investment project pipeline on a state by state basis is heavily influenced by the mining investment downturn (WA, Qld &amp; NT) and by the public transport upswing (NSW &amp; Vic).</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.52.13%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.52.13%20AM.png" alt=""></div>
<div class="column">
<br>In the mining state of WA, definite projects total $124bn, a figure that will fall sharply as $102bn in gas projects are completed by the end of 2017.</div>
<div class="column">
<br>In Qld, definite projects are at $70bn, including the $25bn Origin LNG project, due to be completed by late 2016. Key will be whether tourism projects, still at the planning stage, eventually proceed.</div>
<div class="column">
<br>In NSW, the pipeline of definite projects has climbed to $81bn, up from $56bn a year ago, with the prospect of additional transport projects to progress from the planning stage.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.53.08%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column"> </div>
<div class="column"><img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.53.08%20AM.png" alt=""></div>
<div class="column">
<br>In Victoria, projects under construction is relatively stable at $27bn, although the projects at the committed stage now stands at $15bn.</div>
<div class="column"> </div>
<div class="column"><a href="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.54.07%20AM.png" target="_blank">Click to enlarge</a></div>
<div class="column">
<img src="/images/2016/11/04/Screen%20Shot%202016-11-04%20at%208.54.07%20AM.png" alt=""><br><p>In South Australia, the value of definite projects has risen to $13bn, up from $8bn a year ago, boosted by public works. </p>
<div class="page" title="Page 17"><em>Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. </em></div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

jchancellor-FAypfDUnLy

End of the mining investment downturn in sight: Westpac's Andrew Hanlan

<html><body>
<p><img src="https://counter.theconversation.edu.au/content/66209/count.gif" alt="The Conversation" width="1" height="1"></p>
<p>GUEST OBSERVER</p>
<p>So much of the national conversation about superannuation simply assumes that “savings for retirement” is synonymous with “superannuation savings”. This is a big mistake. </p>
<p>This mistake partly explains why we got into such a mess with excessively generous tax breaks for super. It also underlies misguided plans to increase superannuation contributions to 12 percent of earnings. </p>
<h2>Super doesn’t equal retirement savings</h2>
<p>Any sensible conversation about superannuation policy must start by recognising how households save for retirement, and why.</p>
<p>It’s become conventional wisdom that people will retire on their superannuation savings, perhaps topped up by the Age Pension. Even ASIC’s retirement savings calculator – which enables people to estimate their future retirement income – presumes that superannuation and the Age Pension alone will fund retirement. The assumption that superannuation accounts for the bulk of households’ retirement savings has underpinned claims that most Australians aren’t saving enough for their retirement. </p>
<p>Yet the stark reality is that superannuation savings account for only a small portion – about 15% – of the wealth of most households. Even without counting the family home, the average Australian saves as much outside as inside the super system. For older households close to retirement, assets other than super are often even larger than the value of their homes.</p>
<p><a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139681/width754/image-20160929-27014-1xnfczl.png" target="_blank">Click to enlarge</a></p>
<h4><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139681/width754/image-20160929-27014-1xnfczl.png" alt=""></h4>
<p>Super’s modest contribution to retirement savings is true for households of most levels of wealth and income, as confirmed by new analysis for the Grattan Institute of both ABS data and the Melbourne Institute’s HILDA survey. </p>
<p>It is true that many of those with little wealth report a larger share of savings in superannuation than in other assets, but only because their total savings are small. For such low-wealth households, the Age Pension will always be their main source of retirement income.</p>
<p><a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139685/width754/image-20160929-27026-1ccwlzy.png" target="_blank">Click to enlarge</a></p>
<h4><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139685/width754/image-20160929-27026-1ccwlzy.png" alt=""></h4>
<h2>Even younger households save a lot outside of super</h2>
<p>When confronted with facts about the modest contribution of super to retirement savings, super’s cheerleaders point out that the system is immature. Compulsory super only began in 1992, with compulsory contributions of 3% of wages, rising to 9% by 2002 and 9.5% since 2014-15. It will be another two decades before typical retirees will have contributed at least 9% of their wages to super for their entire working lives. So surely super will account for a larger share of household savings in future? </p>
<p>While we might expect younger households to save more in super, and less outside, that’s simply not true. Their assets outside are typically as large as their assets inside superannuation, even without counting home ownership. This is so even for households in the 25-34 and 35-44 age groups who have had high levels of compulsory super for most of their working lives. </p>
<h2>Non-super savings will remain large</h2>
<p>The enduring importance of non-super savings should come as no surprise. While compulsory superannuation forces people to save more via superannuation, there’s little evidence that non-super savings have fallen very much in response. </p>
<p>A recent Reserve Bank of Australia study found that each extra dollar of compulsory superannuation savings was accompanied by an offsetting fall in non-super savings of only between 10 and 30 cents. As a result, compulsory super has added a lot to private savings in Australia – an estimated 1.5% of GDP a year over the past two decades. </p>
<p>There is little reason to expect this pattern of non-super saving to change radically. Households hold a material portion of their wealth outside of super so that they have an option to use it before turning 60, and because they are nervous that government may change the superannuation rules before they retire.</p>
<p>Other asset classes, such as negatively geared property, are taxed lightly and so will likely remain an attractive vehicle for accumulating wealth. Whatever the motivation, most households heading towards retirement have substantial non-super, non-home assets to draw on.</p>
<p>Super as a proportion of total assets is somewhat higher for 55-64-year-olds when compared to younger households. This is partly because households aged over 55 contribute more voluntarily. They transfer assets they have already accumulated into super to attract a lower tax rate, knowing that if necessary they can withdraw immediately, or within a year or two. While this asset shuffling reduces their tax bills, it adds little to genuine retirement savings. </p>
<h2>One implication: super tax breaks should be more limited</h2>
<p>Acknowledging super’s more modest contribution to retirement savings has big implications for retirement incomes policy. </p>
<p>Since most Australians will rely upon a range of assets and income sources to support their retirement, we shouldn’t expect superannuation alone to provide an “adequate” or even a “comfortable” retirement, as the super industry demands. </p>
<p>A number of prominent studies claim we face a retirement savings crisis, but they ignore non-super savings. This leads them to advocate ever-more-generous tax breaks so that super alone is enough to provide an adequate retirement income, even though the reality of retirement incomes will be different for most households. </p>
<p>The government plans to legislate that the purpose of superannuation is to provide income to supplement or substitute the Age Pension. This implies that super tax breaks should cut out at the point that people no longer qualify for even a part Age Pension (a pre-tax income of A$75,000 for a couple). If the earnings on non-super savings are ignored, then this leads to super tax breaks for a lot of people unlikely to qualify for an Age Pension. </p>
<p>The next round of reforms to super tax breaks will need to do better on this score. </p>
<h2>Another implication: no need to increase the Super Guarantee to 12 percent</h2>
<p>Ignoring non-super savings may also lead policymakers to force people to save too much through superannuation. A common aim of retirement income policy is to support lifetime consumption smoothing: maintaining a more consistent standard of living across people’s lives. Compulsory saving via the Superannuation Guarantee forces people to save while they are working so they have more to spend in retirement. </p>
<p>But there is no magic pudding when it comes to superannuation. Higher compulsory super contributions are ultimately funded by lower wages, which means lower living standards for workers today. </p>
<p>In fact current levels of compulsory super contributions and Age Pension are likely to provide a reasonable retirement for most Australians. </p>
<p>If we project forward the retirement income for a median income earner working for 40 years, and account for just compulsory super contributions – in other words, we ignore any voluntary superannuation contributions and savings outside of super – we find that today’s 9.5% Superannuation Guarantee and the Age Pension would provide the average worker with a retirement income equal to 79% of their pre-retirement wage (also known as a replacement rate). </p>
<p>About two-thirds of income earners can expect a retirement income of at least 70% of their pre-retirement income – the replacement rate for the median earner used by the Mercer Global Pension Index and endorsed by the OECD. </p>
<p><a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139706/width754/image-20160929-27014-1irgtgd.jpg" target="_blank">Click to enlarge</a></p>
<h4><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139706/width754/image-20160929-27014-1irgtgd.jpg" alt=""></h4>
<p>Once non-super savings are taken into account, many workers are likely to have a higher standard of living when they retire in 40 years’ time than during their working life. This is before we consider that people have much lower spending needs in retirement, particularly in the later stages of life when government covers much of their largest costs of health and age care. </p>
<p>This modelling of the future shouldn’t be a surprise. It matches what is already happening today. The non-housing expenditure of retirement-age households today, many of whom did not retire with any super, is typically more than 70% of that of working-age households today. </p>
<p><a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139698/width754/image-20160929-27037-1npkr59.jpg" target="_blank">Click to enlarge</a></p>
<h4><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/139698/width754/image-20160929-27037-1npkr59.jpg" alt=""></h4>
<p>Current levels of retirement spending appear to be sustainable. Most households in retirement only draw down very slowly on their superannuation and their broader savings. Consequently, most are likely to leave material bequests. </p>
<p>The policy implication is that there is no compelling case to compel households to save 12% of their income through the Super Guarantee as currently legislated. This would effectively compel most people to save for a higher living standard in retirement than they enjoy during their working lives. </p>
<p>In practice, given typical retiree spending patterns, a 12% Super Guarantee will primarily result in larger bequests. It would be better to leave the Super Guarantee where it is – at 9.5% of wages. This is consistent with the 2009 Henry Tax Review, which found that the Super Guarantee of 9% then in force would be enough to give most Australians “a substantial replacement of their income, well above that provided by the Age Pension”. </p>
<h2>Ignore the vested interests</h2>
<p>Powerful vested interests are pushing the idea that super equals retirement savings. Yet such a view is inconsistent with the facts. Super’s importance to retirement savings has been overblown for far too long. </p>
<p>As the debate heats up over policy for Australia’s A$2 trillion super sector, recognising what households actually save, and why, would be a big step in the right direction.</p>
<p><em>John Daley is chief executive officer, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/john-daley-1870" target="_blank">here.</a></em></p>
<p><em>Brendan Coates is a friend of The Conversation and can be contacted <a href="https://theconversation.com/profiles/brendan-coates-154644" target="_blank">here</a>.</em></p>
<p><em><span class="fn author-name">Hugh Parsonage is a</span>ssociate, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/hugh-parsonage-210671" target="_blank">here</a>. </em></p>
<p><em>All are authors for The Conversation.</em></p>
</body></html>

The superannuation myth: why it’s a mistake to increase contributions to 12 percent of earnings

<html><body>
<p>GUEST OBSERVER</p>
<p>The Australian economy has just completed 25 consecutive years of economic growth. The last recession ended in June 1991.  </p>
<p>Solid growth: The economy grew by 0.5 percent in the June quarter with annual growth lifting from 3.0 percent to 3.3 percent.  </p>
<p>Contribution to growth: The biggest contributions to growth came from public investment (+0.7 percentage points) (pp), government consumption and inventories (both +0.3pp), household spending (+0.2pp), dwelling investment and private equipment investment (both +0.1pp). The biggest drag on growth was from non-residential building (-0.8 percentage points) and net exports (-0.2pp).  </p>
<p>Income: Real gross national income rose by 0.6 percent in the June quarter to be up 2.5 percent on the year. In nominal terms GDP lifted 1.3 percent in the quarter and rose by 3.4 percent over the year.  </p>
<p><a href="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.32.47%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.32.47%20AM.png" alt=""> </p>
<p>Productivity: Gross value added per hours worked in the market sector rose by 1.5 percent in the June quarter and by 2.9 percent over the year.  </p>
<p>Industry sectors: Fourteen of the 19 industry sectors expanded in the June quarter. The strongest sector was Professional, scientific and technical services, up 3.2 percent and adding 0.2 percentage points (pp) to growth. Eight other sectors added 0.1pp to overall growth. The Mining sector fell by 3.5 percent in the quarter and cutting 0.3pp from overall growth.  </p>
<p>What does it all mean?  </p>
<p> There are no signs that Australia’s record economic expansion is coming to an end. Far from it – annual growth has lifted to 4-year highs. Australia has now notched up 100 quarters without a recession. Netherlands holds the record for the longest expansion at 103 quarters. Over the next year Australia should pick up the gold medal for the longest economic expansion of a developed economy in the modern era.  </p>
<p>It’s worth reflecting on Australia’s economic position. Economic growth is the fastest in four years and above long- term averages. Inflation stands at 1.0 percent. Interest rates stand at 1.5 percent. Unemployment stands at 5.7 percent. The mining construction boom may be over, but it has been replaced by a housing construction boom. There is much to like and celebrate about Australia’s economy.  </p>
<p>Could we be doing even better? There is always room for improvement. For instance, we could have even lower unemployment but still keeping inflationary pressures contained. The challenge for the authorities is to keep the expansion intact.  </p>
<p>The Reserve Bank could still cut rates – that is, if inflation remains low, rates could be cut to allow the economy to grow even faster. We continue to pencil in a rate cut in November. The question though is whether rates are already low enough to boost growth.  What do the figures show?  National Accounts:</p>
<p>Economic Growth: The Australian economy grew by 0.5 percent in the June quarter after a downwardly-revised 1.0 percent increase in the March quarter (previously up 1.1 percent). Forecasts had centred on 0.5 percent growth in the economy in the quarter. The economy still hasn’t experienced a recession for 25 years.  </p>
<p>The economy has grown 3.3 percent over the past year, above the decade-average growth rate of 2.8 percent and above the 15-year average of 3.0 percent. Annualised growth over the past six months has been 3.2 percent.  </p>
<p>The non-farm economy grew by 0.6 percent in the June quarter after a rising by 1.0 percent in the March quarter. Annual growth stands at 3.4 percent.  </p>
<p>Farm GDP fell by 4.3 percent in the June quarter after expanding by 3.4 percent in the March quarter. Farm GDP fell 3.3 percent over the year.  </p>
<p>At current prices, GDP rose by 1.3 percent in the June quarter to be up 3.4 percent on the year. The annual growth rate is still well below the decade average of 6.2 percent. Over the year to June 2016, the Australian economy was valued at $1,650 billion.  </p>
<p><a href="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.34.01%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.34.01%20AM.png" alt=""></p>
<p>Growth drivers: The biggest contributions to growth came from public investment (+0.7 percentage points), government consumption and inventories (both +0.3pp), household spending (+0.2pp) and dwelling investment and private equipment investment (both +0.1pp). The biggest drag on growth was from non-residential building (- 0.8 percentage points) and net exports (-0.2pp).  </p>
<p>Inflation: In terms of domestic price pressures, the household consumption implicit price deflator rose by 0.4 percent in the June quarter after a 0.1 percent fall in the March quarter. Annual growth stands at just 0.9 percent – the lowest rate in 17 years. Real non-farm unit labour costs fell by 0.8 percent in the June quarter after a flat result in the March quarter. Real non-farm unit labour costs fell by 0.6 percent over the year.  </p>
<p>Productivity: Gross value added per hour worked market sector rose by 1.5 percent in the quarter and by 2.9 percent on the year. GDP per hour worked rose by 1.2 percent in the quarter and by 2.7 percent over the year. And hours worked in the market sector fell by 1.1 percent in the quarter to be up 0.1 percent on the year.  </p>
<p>States &amp; Territories: The only data available is state final demand (more accurate data would include net exports but it is not available for all states and territories). The ACT had the fastest annual growth rate in the June quarter (up 6.0 percent), followed by NSW (up 3.8 percent), Victoria (up 3.5 percent), Tasmania (up 1.9 percent), South Australia (up 1.7 percent) and Queensland (up 0.4 percent). The Northern Territory contracted by 10.4 percent,  <strong> </strong>followed by Western Australia (down 7.3 percent).</p>
<p><a href="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.37.35%20AM.png" target="_blank"> Click to enlarge</a></p>
<p><img src="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.37.35%20AM.png" alt=""></p>
<p>Only five State and Territory economies had data on exports and imports. If you add in the trade figures, the ACT economy was up 6.3 percent over the year with NSW up 5.2 percent, Victoria up 4.5 percent, South Australia up 3.0 percent and Queensland up 1.3 percent.  </p>
<p>Consumer spending lifts. Household spending rose by 0.4 percent in the June quarter to be up 2.9 percent for the year. Only six of the 17 sectors recorded weaker spending in the quarter. Spending fell most in in Cigarettes &amp; tobacco (down 2.3 percent) and Electricity, gas and other fuel (down 2.2 percent). Spending rose most in Purchase of vehicles (up by 2.8 percent) and Health (up 2.1 percent).  </p>
<p>Industry sectors: Fourteen of the 19 industry sectors expanded in the June quarter. The strongest sector was Professional, scientific and technical services, up 3.2 percent and adding 0.2 percentage points (pp) to growth. Eight other sectors added 0.1pp to growth. The Mining sector fell by 3.5 percent in the quarter cutting 0.3pp from overall growth.  </p>
<p>Other points:</p>
<p>Profit share rises. In seasonally adjusted terms, the ratio of profits to total factor income rose from 24.5 percent to 24.9 percent in the June quarter. The wages share was steady at 54.1 percent.  </p>
<p>Household savings ratio steady. The household saving ratio was steady at 8.0 percent in seasonally adjusted terms in the June quarter. In trend terms household saving was steady at 7.9 percent in the June  quarter.  </p>
<p>Imports rose as a share of spending. The imports to sales ratio rose from 0.373 in the March quarter to  0.377 in the June quarter.  </p>
<p>The inventory to sales ratio was steady at 0.622 in the June quarter.  What is the importance of the economic data?  </p>
<p>The quarterly National Income, Expenditure and Product release (national accounts) from the Bureau of Statistics is the most complete assessment of Australia’s economic performance. Detailed estimates are provided on incomes (wages, profits), spending (such as household, dwelling investment and trade (exports and imports) and production (comparing industry performance). Other data includes household saving and the economic performance of States and Territories.  </p>
<p>The main use of the national accounts figures is as a historical record of economic performance. The information has little forward-looking value for currency, interest rate or share markets.  What are the implications for interest rates and investors?  </p>
<p>The national accounts data is backward looking. But the data is taken into account by the Reserve Bank, serving as a base for forecasts. The Reserve Bank uses six-month annualised growth figures to ascertain how the economy is travelling. And in that context growth annualises at around 3.2 per cent. The Reserve Bank had assumed growth of 3.25 percent in the June quarter.  </p>
<p><a href="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.39.59%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/09/08/Screen%20Shot%202016-09-08%20at%208.39.59%20AM.png" alt=""></p>
<p>Labour costs are falling, meaning that there probably hasn’t been a better time to be taking on staff. Inflation remains low but real wage gains are still occurring – wages are growing faster than prices. So there is also good news for consumers.  </p>
<p>Productivity calculations are more problematic. Hours worked in the market sector fell. But gross value added per hour worked market sector rose 1.5 per cent in the June quarter to be up a healthy 2.9 per cent over the year. Ideally you would like to see more employment and hours worked as well as higher output. As always, there is   scope for improvement.</p>
<p>GDP per capita continues to edge higher in real terms, indicating that our standard of living continues to rise. Perhaps growth is slower than in the past, but it is still rising.  </p>
<p>Should the Reserve Bank cut rates again?</p>
<p>There is nothing in the data to prevent the Reserve Bank cutting rates again. The debate to be had though is whether rate cuts at historically-low levels are actually still stimulative. The only real sign of inflation is the “ownership transfer costs” or costs associated with buying or selling a home – up 9.5 per cent over the year.  </p>
<p><em>Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</em></p>
</body></html>

Happy 25th birthday Australian economy: CommSec's Craig James

<html><body>
<p>The pending <span style="line-height: 1.3em;">Federal election could present opportunities for astute home buyers and investors, a</span><span style="line-height: 1.3em;">ccording to Real Estate Buyers Agents Association of Australia (REBAA) president </span><span style="line-height: 1.3em;">Rich Harvey.</span></p>
<p><span style="line-height: 1.3em;">He believes it is likely there could be a lot less competition at auctions and open </span><span style="line-height: 1.3em;">inspections in coming months as historically people tended to sit on their hands in </span><span style="line-height: 1.3em;">the lead-up to elections.</span></p>
<p>"The lowest point consumer confidence had been in the last couple of years <span style="line-height: 1.3em;">was the 2014 budget when the Roy Morgan index plunged below 100 (average is </span><span style="line-height: 1.3em;">113)," he said.</span></p>
<p>“Looking at the most recent consumer confidence report from Roy Morgan, you can <span style="line-height: 1.3em;">see the stark changes that happen among Australians around both budgets and </span><span style="line-height: 1.3em;">elections,” he said.</span></p>
<p>“While the metric did rebound to regular levels after some time, it shows the <span style="line-height: 1.3em;">resounding impact that budgets have on our consumer base. </span><span style="line-height: 1.3em;">With tax breaks, higher fees, and restrictions on spending, it's no wonder people </span><span style="line-height: 1.3em;">feel less confident as new measures are announced.</span></p>
<p><span style="line-height: 1.3em;">"In the event cold feet turned out to be a widespread phenomenon in </span><span style="line-height: 1.3em;">coming months, buyers would be wise to get in “while the going was slow” and take </span><span style="line-height: 1.3em;">advantage of consumer uncertainty.</span></p>
<p>“The Reserve Bank figures show that housing credit has remained stable over the <span style="line-height: 1.3em;">first few months of the year, after some rocket-powered increases in lending </span><span style="line-height: 1.3em;">throughout 2015. </span><span style="line-height: 1.3em;">This suggests that market activity has already slowed down, and pre-budget or </span><span style="line-height: 1.3em;">pre-election nerves might see this escalate.</span></p>
<p>“With promises coming from all corners of the political arena and less stability until <span style="line-height: 1.3em;">the votes are counted, a quieting could be on the cards. </span><span style="line-height: 1.3em;">While none of us have a crystal ball, it make sense that if there are fewer people in </span><span style="line-height: 1.3em;">the property market, property hunters will have a better than average chance of </span><span style="line-height: 1.3em;">picking up an excellent deal."</span></p>
</body></html>

po-LsXgBTHBmX

Federal election an investment opportunity

<html><body>
<p>GUEST OBSERVER</p>
<p>The Real Estate Institute of Victoria has backed new initiatives announced by the State Government today, including significant road and rail investment across the state. </p>
<p>The $10.4 billion investment in public transport and road projects will drive growth across the city and regional Victoria.<span style="line-height: 1.3em;"> </span></p>
<p>Given the significant growth in Melbourne’s outer suburbs in the past two quarters, improved road and rail infrastructure will drive continued price growth in areas further from the city and within commuting distance of the CBD.</p>
<p>The REIV also welcomed a further $75.4 million for services and facilities in Melbourne’s outer suburbs and growing regional communities.</p>
<p>With estimated population growth of about 100,000 people each year, amenities investment in suburbs more than 20km from the city is necessary to ensure these suburbs remain attractive for home buyers.<span style="line-height: 1.3em;"> </span></p>
<p>Significant new Budget measures include $2.9 billion for Melbourne’s Metro Tunnel, $1.46 billion for the Western Distributor, $924 million for new and upgraded schools and $982 million in improvements to the state’s health system.</p>
<p>The REIV also backed the State Government’s commitment to streamlining the planning process.</p>
<p>This includes creating an online portal for applications, improved zone controls and faster approvals in commercial and industrial zones.  </p>
<p>The State Government also announced changes to land tax and stamp duty for overseas buyers of Victorian property.   </p>
<p>Victoria is the most liveable city in the world and it’s important that these buyers contribute to ongoing infrastructure development and amenities.</p>
<p>Duty increases for overseas purchasers will help enhance the city’s housing stock at a time when our population is growing faster than any other capital city.</p>
<p>The REIV would like more Victorians to have access to home ownership and we call on the Government to consider greater assistance, especially for first home buyers.</p>
<p><em>‎Enzo Raimondo is chief executive officer of <a href="https://www.reiv.com.au/" target="_blank">The Real Estate Institute of Victoria</a>.</em></p>
</body></html>

enzoraimond-7fvRFHPR52

Infrastructure initiatives to drive new growth areas: Enzo Raimondo

<html><body>
<p>GUEST OBSERVER</p>
<p>Brisbane has outperformed Sydney and Melbourne in a new Australian index that measures innovation performance at a suburb level.</p>
<p>The index is designed to help policymakers better understand the characteristics that make some locations more innovative than others.</p>
<p>Brisbane has five areas in the top 10 of the innovation index in 2014, substantially more than the much larger state capitals of Sydney (three) and Melbourne (two). At the same time, areas in the other states capital cities don’t even feature until position 28.</p>
<p><a href="/images/2016/03/23/image-20160322-32291-1fxszd5.jpg" target="_blank"> Click to enlarge</a></p>
<p><img src="/images/2016/03/23/image-20160322-32291-1fxszd5.jpg" alt=""></p>
<h4><span class="caption">Figure 1. BCEC Innovation index for Australia: 2014, by SA3 regions</span></h4>
<p>The index is a composite of a number of indicators for both inputs to and outputs from innovation. Measures include patents, trademarks, new business entry and business R&amp;D investment (all relative to the size of the workforce), as well as the share of postgraduate qualified graduates and the ratio of research institutes to the resident population. Each of these measures either a direct innovation activity or a factor that supports innovation activities.</p>
<p>The index highlights the importance of location and agglomeration. The most innovative regions are usually in the largest cities and are typically near other innovative regions and relevant infrastructure that supports innovation such as business districts, universities and research institutes, as can be seen in Figure 1 above.</p>
<h2>Proximity matters</h2>
<p>Innovation is embedded in places. The co-location of the right mix of people, physical capital and infrastructure is key to developing new ideas and transforming them into commercial successes.</p>
<p>A new report from the Bankwest Curtin Economics Centre finds innovation is a local phenomenon where for a host of complex and interacting reasons, certain places and regions are doing better than others.</p>
<p>Innovations build on existing knowledge. Cities are the mechanism which facilitates the creation and dissemination of knowledge leading to better innovation performance. Universities increase the innovation performance of surrounding areas through direct research and innovation outputs and by improving the human capital of workers. Similarly, city centres and surrounding areas attract highly-skilled graduates.</p>
<p>While internet-based communication connects people in even the most remote locations with the rest of the world, when developing an innovation, these communication technologies largely complement regular face-to-face interaction rather than replacing it. It is easier to connect, share ideas and build trust with a neighbour than a person or business who is far away.</p>
<p>Other countries have recognised how important location is for innovation and developed place-based innovation policies.</p>
<p>EU countries and regions are required to have national or regional “Research and Innovation Strategies for Smart Specialisation” in order to access European structural and investment funds to support research and innovation. EU cohesion policy involves a process for tailoring innovation policies to local regions, including policies for scientific R&amp;D, practice-based innovation and adoption and diffusion of knowledge and innovations.</p>
<p>Australia is almost twice the area of the European Union. Place-based policies are particularly important in Australia with its large distances between cities and larger distances to the rest of the world.</p>
<p>Place-based innovation policies are not completely new in Australia. Queensland’s “Smart State” strategy between 1998 and 2007 attempted to boost knowledge-based industries through investment in infrastructure, education and training, research programs and industry incentives. While it is difficult to measure the success of these policies the strategy may help explain the high ranking of areas in Brisbane in BCEC’s innovation index (See Table 1).</p>
<p><a href="/images/2016/03/23/image-20160322-32309-veax6t.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/23/image-20160322-32309-veax6t.jpg" alt=""></p>
<h4>
<span class="caption">Table 1. Ranking of SA3 regions by 2014 BCEC Innovation index for Australia</span><span style="font-family: Tahoma, Helvetica, Arial, sans-serif; line-height: 1.3em;"> </span>
</h4>
<h2>International collaboration and innovation</h2>
<p>While innovation is a local phenomenon, international collaborations can bring benefits to businesses in the form of greater exposure to new ideas, world leading advances in technology, and commercialisation opportunities.</p>
<p>Yet OECD comparisons show that only 7.7 percent of innovation-active businesses in Australia engage in collaborations with international partners in the United States, Asia or Europe - well below the OECD average of 17.9 percent (Figure 2).</p>
<p><a href="/images/2016/03/23/image-20160322-32300-1bushko.jpg" target="_blank">Click to enlarge</a></p>
<p> <img src="/images/2016/03/23/image-20160322-32300-1bushko.jpg" alt=""></p>
<h4><span class="caption">Figure 2. Share of innovation-active firms engaged in international collaborations: OECD, 2012-13</span></h4>
<p>Australia is a long way from innovation centres such as London, Tokyo, Shanghai and the Silicon Valley, of course. Australia is also far away from large cities in countries that are (relatively at least) closer to home, like Singapore or Auckland. And Australian cities are also far away from each other.</p>
<p>This means the knowledge inputs crucial to innovation do not diffuse easily within and to Australia, something that may be a particular constraint to innovation in Western Australia given its relative isolation.</p>
<p>Yet paradoxically, no more than 3.6% of Australian businesses cite access to knowledge as a barrier to innovation. This suggests - rightly or wrongly – that the majority of businesses rely on national knowledge partnerships for research and development activities.</p>
<p>It is difficult to square this circle, other than to speculate that some businesses in Australia perhaps “don’t know what they don’t know” – in other words, it is difficult for firms to recognise knowledge gaps as a barrier to innovation, because they simply don’t know what they haven’t learned or invented yet.</p>
<p>Successfully positioning Australia for an “ideas boom” may require a policy approach that addresses the unique constraints of Australia’s economic geography. In absence of such a tailored policy approach, innovation may be more expensive and difficult to achieve in Australia, discouraging R&amp;D investment and limiting the potential for an “ideas boom”.</p>
<p> </p>
<p><em><span class="fn author-name" style="line-height: 1.3em;"><span style="line-height: 1.3em;">Alan Duncan</span> is d</span><span style="line-height: 1.3em;">irector, Bankwest Curtin Economics Centre and Bankwest Research Chair in Economic Policy, Curtin University and can be contacted <a href="https://theconversation.com/profiles/alan-duncan-100759" target="_blank">here</a>.</span></em></p>
<p><em><span class="fn author-name" style="line-height: 1.3em;"><span style="line-height: 1.3em;">Rebecca Cassells</span> is a</span><span style="line-height: 1.3em;">ssociate professor, Bankwest Curtin Economics Centre, Curtin University and can be </span>contacted<span style="line-height: 1.3em;"> <a href="https://theconversation.com/profiles/rebecca-cassells-127690" target="_blank">here</a>.</span></em></p>
<p><em><span class="fn author-name" style="line-height: 1.3em;"><span style="line-height: 1.3em;">Steven Bond-Smith</span> is r</span><span style="line-height: 1.3em;">esearch fellow, Bankwest-Curtin Economics Centre, Curtin University and can be contacted <a href="https://theconversation.com/profiles/steven-bond-smith-243423" target="_blank">here</a>.</span></em></p>
<p><em><span style="line-height: 1.3em;">All are authors for The Conversation</span></em></p>
</body></html>

Location, location, location: what’s holding back an Australian ideas boom

<html><body>
<p>A shop top terrace has sold in Sydney's inner city suburb of Enmore for $<span style="line-height: 1.3em;">1,300,000 through Luke Smith and Geraldine McShane of Raine &amp; Horne Commercial Marrickville.</span></p>
<p><span style="line-height: 1.3em;">The property, <a href="https://www.realcommercial.com.au/property-retail-nsw-enmore-501773978" target="_blank">119 Enmore Road</a>, has a g</span><span style="line-height: 1.3em;">round floor shop leased to real estate agency with s</span><span style="line-height: 1.3em;">eparate residences behind the shop and upstairs for a t</span><span style="line-height: 1.3em;">otal site of around 185.5m </span></p>
<p><span style="line-height: 1.3em;">Offered as vacant possession, it had previously been available for rent at $74,000pa.</span></p>
<div class="container">
<div class="row">
<div class="col-md-12">
<div id="photos" class="owl-carousel owl-theme">
<div class="owl-wrapper-outer">
<div class="owl-wrapper">
<div class="owl-item">
<div class="item"> </div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

jonathanchancellor-7SQnKwU6yx

Enmore retail terrace shop sold by Raine & Horne Commercial

<html><body>
<p><span style="line-height: 1.3em;">GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">Recent statements by the Labor Party that negative gearing and capital gains tax concessions would be reduced send negative messages to ordinary Australians investing in property. </span></p>
<p>It is the combination of restricting negative gearing and of reducing capital gains tax deductions on residential property investments that will discourage ordinary Australians from investing in property.</p>
<p>Many Australians have preferred to invest in property over other forms of investment, like shares or bonds, and this has been based on negative gearing to minimise recurrent costs while expecting a positive return from capital gains over time.</p>
<p>While traditionally home ownership has been seen as an Australian ideal this has shifted in recent decades with more people renting while many ordinary Australians have borrowed money to be able to earn an income from a house or apartment.</p>
<p>The people who benefit from negative gearing are those that must borrow to buy an investment property rather than the very wealthy who don’t borrow or borrow less and can use their own funds. It seems unfair of the Labor Party to target ordinary Australians who need to borrow and to discourage them from aspiring to be owners of income producing properties.</p>
<p>The reduction in the use of negative gearing to only new properties while appearing to boost supply is likely to result in increases in new property prices as more investors compete for only new housing. The aspirations of ordinary Australians to be property investors as part of a diversified approach to managing their long term finances should be encouraged rather than discouraged.</p>
<p>The slashing of the capital gains tax deduction by 50% will further discourage all property investors of new or old assets from investing in built assets. The end product of the Labor Party proposals is to undermine confidence in property investment by ordinary Australians as well as larger organisations. This can only lead to less supply of rental properties with a consequent jump in rental fees.</p>
<p>The Urban Taskforce understands that adjustments to the taxation system need to be considered but we believe any changes should encourage the development of more housing funded by the broader community’s investment.</p>
<p>Stamp Duty is clearly a tax that is a disincentive to the purchase of a house or apartment and we believe this should be abolished and replaced by a fair broad based land tax which spreads the tax burden over a much larger ownership base.</p>
<p> </p>
<p><em>Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.</em></p>
</body></html>

cjohnson-8xfqfuuCSq

Labor proposals to change taxation on housing could slow down supply: Chris Johnson

<html><body>
<p>Australia’s largest industry, the property industry, has warned politicians that changes to negative gearing will exacerbate Australia’s undersupply of housing, harm average income earners and potentially see the politicians lose their seats.</p>
<p>Their data revealed that over 430,000 Australians who negative gear an investment property live in marginal seats held by the Government and the Opposition. The ten most marginal Coalition seats have an average of 8,181 investment property owners and the ten most marginal Labor seats have an average of 8,357 property owners.</p>
<p>Of the 632,000 landlords who own an investment property across Sydney and New South Wales, 375,000 use negative gearing, the Property Council of Australia says.</p>
<p>A snapshot across New South Wales and Victoria reveals the prevalence of negatively-geared homes in the outer suburbs and regional towns further afield. </p>
<p><a href="/images/2016/02/05/Screen%20Shot%202016-02-05%20at%209.37.06%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/05/Screen%20Shot%202016-02-05%20at%209.37.06%20AM.png" alt=""></p>
<p>“Mums and dads see owning an investment property as a way of securing their long term prosperity”, said Property Council Chief Executive Ken Morrison.</p>
<p>“Two million Australians own an investment property. These people are doing the right thing and investing for their retirement or putting away for a rainy day.</p>
<p>“To play with negative gearing is to play with the financial futures of 430,000 people who live in the most marginal seats.</p>
<p>"That’s enough voters to swing all of these seats eight and half times over, a big political risk to take with people with a lot at stake.</p>
<p>“Limiting interest deductibility will make investments more expensive. In turn, this will exacerbate Australia’s undersupply of housing and infrastructure. This is the wrong approach for the challenges we have to face.</p>
<p>“Australians already pay $72 billion a year in property taxes – and property owners don’t want government’s hands reaching even deeper into their pockets.”</p>
<p><a href="/images/2016/02/05/Screen%20Shot%202016-02-05%20at%209.37.17%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/05/Screen%20Shot%202016-02-05%20at%209.37.17%20AM.png" alt=""></p>
</body></html>

The vunerable Federal politicians who could lose their seats over negative gearing fallout: PCA

<html><body>
<p><span>GUEST OBSERVER</span></p>
<p><span>While the economic outlook for 2016 is weak, there are still locations across Australia that provide good investment opportunities.</span></p>
<p><span>With the latest Onthehouse.com.au data, I have identified the top 10 areas to watch in the year ahead, based on strong growth performance, cyclical growth expectations, upcoming developments and historical growth patterns.</span></p>
<p><span>While Sydney has been the clear growth winner in recent years, it is in a downswing of its current growth cycle so it is not on the Top 10 list. However, Regional NSW is set to be the winner in 2016, with four regional NSW cities topping the list.</span></p>
<p><span>Queensland also has a strong presence on the list, with a total of four metro and regional centres making the Top 10.</span></p>
<p><span><strong>The following table lists the Top 10 cities to watch in 2016. </strong></span></p>
<div class="meta"><a href="/images/2016/01/14/Table_1.jpg" target="_blank">Click to enlarge</a></div>
<div class="meta"> </div>
<div class="meta"><img src="/images/2016/01/14/Table_1.jpg" alt=""></div>
<p><span><strong> </strong></span></p>
<p><span>With cities such as Wollongong and Newcastle being considered as re-homing areas for displaced Syrian refugees, Tasmania continuing to pick-up its tourism market and Queensland boasting some large development projects, there are many emerging areas showing positive economic potential.</span></p>
<p><span><strong>Here is my quick breakdown of why each identified area made the list...</strong></span></p>
<p><span><strong>City of Gosford, NSW</strong></span></p>
<p><span>Suburbs within the City of Gosford enjoy a spill-over of wealth from Sydney in the form of residential investment and from tourism to the lakeside city. Despite enormous growth in 2015, regional NSW tends to lag a little behind Sydney. This is supported by historical growth patterns, therefore growth could continue into 2016.</span></p>
<p><span><strong>Lake Macquarie Region, NSW</strong></span></p>
<p><span>Lake Macquarie is popular with tourists who are seeking a quick getaway from Sydney, as it is only a two-hour drive from the Sydney CBD. The area contains suburbs with very affordable dwellings, some with strong rental yields. For owner occupiers, the area is popular with retirees and has a growing health care sector to support quality of life.</span></p>
<p><span><strong>City of Newcastle, NSW</strong></span></p>
<p><span>Newcastle has undergone tremendous development in the last few years. This has partially been the result of people and businesses being priced out of Sydney and seeking more affordable rent in a nearby city. As a result, the Central Coast has transformed over the last few years. Newcastle and Wollongong have also been named as areas to relocate Syrian refugees, which would encourage population growth and increase demand in the economy for a range of services; provided refugees are set up with adequate resources.</span></p>
<p><span><strong>City of Shellharbour, NSW</strong></span></p>
<p><span>The City of Shellharbour is another regional NSW area that is set to benefit from the Sydney wealth spill-over. Shellharbour is also home to the established City of Wollongong, which has excellent educational and medical facilities, as well as a beautiful coastal setting.</span></p>
<p><span><strong>City of Whittlesea, VIC</strong></span></p>
<p><span>This is more of a cyclical evaluation; where lower value properties are expected to follow the high end. It's also worth noting that as population growth remains high over the next decade (particularly in Melbourne as approximately one-third of migrants settle in Victoria), anywhere within reasonable distance and commute time to the CBD is likely to see long-term growth. Stockland survey data also suggests that Sydney buyers were registering their interest in Melbourne property, suggesting the appeal of Melbourne will continue in 2016 as residual wealth from Sydney is transferred to the relatively affordable Melbourne market.</span></p>
<p><span><strong>Brisbane Metropolitan, QLD</strong></span></p>
<p><span>Growth in Brisbane is expected to be partially out of cyclical movements. Historically, Brisbane usually peaks in capital growth after the Sydney and Melbourne markets. As Melbourne is likely coming into peak growth now, Brisbane could see higher value increases in 2016. It is worth noting that this could be mitigated by increases in home loan interest rates and slowed economic growth both globally and in Australia, plus slowed rates of migration to Queensland, which fell by approximately 22 per cent in the year to June 2015.</span></p>
<p><span>However, an increase in tourism may drive employment; attracting migration and dwelling demand in the future. According to Tourism Research Australia, Brisbane was the third top holiday destination of overseas visitors, followed by the Gold Coast, with the Sunshine Coast also featuring in the top 10. There are currently also large development programs happening around Brisbane, including a casino at the Queens Wharf site. It is worth making the distinction that this may not be a long-term growth driver, but if you are only looking at movements for the next few years then this area has potential.</span></p>
<p><span><strong>City of Logan, QLD</strong></span></p>
<p><span>The City of Logan is a growth centre, conveniently located between Brisbane and the Gold Coast. Enormous development projects have been approved in the region, particularly in Beenleigh, where the town's CBD is set to see new residences, commercial offices, a new theatre, medical centre and café precinct. However, the highest growth potential is likely to be in surrounding suburbs where values remain relatively affordable.</span></p>
<p><span><strong>Greater Hobart, TAS</strong></span></p>
<p><span>Tasmania has presented some surprising growth results in 2015. The Hobart CBD and surrounding suburbs in particular have drawn many tourists. Hobart is regarded for its historic charm, with many heritage buildings preserved. Tasmania also has highly regarded produce, which, combined with trade subsidies provided by the federal government, will help to boost exports from Tasmania. As tourism and hospitality pick up in Tasmania, popular centres like Hobart could see further capital growth from employment, affordability and dwelling demand in 2016.</span></p>
<p><span><strong>Gold Coast, QLD</strong></span></p>
<p><span>According to Tourism Research Australia, the Gold Coast was the fourth most visited destination by tourists in the year to September 2015. The Gold Coast has also recently outperformed growth in both Brisbane and the Sunshine Coast, suggesting the booming value of this area.</span></p>
<p><span>The Gold Coast is also set to host the Commonwealth Games in 2018. Chairman of the Gold Coast 2018 Commonwealth Games Corporation, Nigel Chamier, has claimed that preparations for the games are under budget and ahead of schedule, enabling new sports facilities to be trialled in 2017. The government expects $2 billion worth of contracts across the Gold Coast and in other parts of the south-east corridor, in preparation and execution of the Games.</span></p>
<p><span>Finally, major residential developments are occurring in the Gold Coast CBD, including The Ruby Towers development, which is expected to be complete in six years time. Although the city centre has seen recent escalations in value, a spill-over of growth may also be expected in nearby suburbs such as Oxenford, Helensvale and Robina.</span></p>
<p><span><strong>Sunshine Coast, QLD</strong></span></p>
<p><span>As developers anticipate strong migration and affordability to drive dwelling demand, there has been increased construction activity on the Sunshine Coast. Part of the more general cyclical trend, which may see the south-east of Queensland see steady growth in the area, the Sunshine Coast also achieved steady capital growth over 2015. New developments in the region include a University Hospital set to open in late 2016.</span></p>
<div class="meta"> </div>
<div class="meta"><em>Eliza Owen is the market analyst for Onthehouse.com.au. She can be contacted <a href="https://www.onthehouse.com.au" target="_blank">here.</a></em></div>
</body></html>

Investment

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Investment

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News