<p>Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.</p>

<p>Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.</p>

<p>Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=372638]</p>

<p>The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;</p>

<p>Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.</p>

<p>Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3286]</p>

<p>Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.</p>

<p>"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.</p>

<p>"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."</p>

<p>The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.</p>

<p>[smartcode_project_cta:default project_id=112195]</p>


Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

<p>Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.</p>

<p>Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.</p>

<p>The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.</p>

<p><a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.</p>

<p>The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.</p>

<p><img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" /></p>

<p>Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.</p>

<p>"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.</p>

<p>The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.</p>

<p>The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.</p>

<p>Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.</p>

<p>Bakir said the project had been designed to respond to that shift in buyer expectations.</p>

<p>"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.</p>

<p>Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.</p>

<p>Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.</p>

<p>Early site works are underway, with construction expected to commence later this year.</p>


Homecorp approved for Budds Beach apartment tower, Lýon Residences

<p>New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.</p>

<p>Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.</p>

<p>Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3823]</p>

<p>Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.</p>

<p>The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.</p>

<p>"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.</p>

<p>"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3826]</p>

<p>The rarity of the development hasn't been lost on prospective buyers, McSweeney says.</p>

<p>For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.</p>

<p>"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."</p>

<p>The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe></p>

<p>A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.</p>

<p>The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.</p>

<p>At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=372542]</p>

<p>The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.</p>

<p>Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.</p>

<p>Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.</p>

<p>"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."</p>

<p>Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.</p>

<p>[smartcode_project_cta:default project_id=28384]</p>


North-facing Swan River views drive demand at Rivière Residences in Applecross

<p>Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.</p>

<p>The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374768]</p>

<p>McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.</p>

<p>"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.</p>

<p>"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374767]</p>

<p>A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.</p>

<p>The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374760]</p>

<p>Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.</p>

<p>Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.</p>

<p>"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."</p>

<p>Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374761]</p>

<p>Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.</p>

<p>"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.</p>

<p>She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.</p>

<p>Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.</p>

<p>Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.</p>

<p>Construction is underway, with completion expected in the second half of 2027.</p>

<p>[smartcode_project_cta:default project_id=143337]</p>


More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

<p>Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.</p>

<p>The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.</p>

<p>"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.</p>

<p>"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”</p>

<p>He said the declaration reflected the rapid progress achieved since acquiring control of the site.</p>

<p>"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."</p>

<p>When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.</p>

<p>"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.</p>

<p>"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."</p>

<p>The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a></em></p>

<p>The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.</p>

<p>Takada previously said the design was driven by a philosophy of integrating nature into the built environment.</p>

<p>"The concept for this development is born from our design approach to naturalising architecture," Takada said.</p>

<p>"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."</p>

<p>Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.</p>

<p>"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.</p>

<p>The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;</p>

<p>The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.</p>


Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

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<p>Australian apartment building approvals experienced a sharp downturn in March, as approvals dropped by 28.4 percent throughout the month, supporting a fall in total dwelling approvals of 19.9 percent.</p>
<p>Matthew Pollock, national manager of housing at Master Builders Australia, remarked that the statistics highlight the need for the Federal Budget to support a greater level of investment into Australia’s housing sector.</p>
<p>“These latest results suggest the housing boom which has been driven primarily by apartment construction in Sydney and Melbourne is beginning to run out of steam,” he said.</p>
<p>Apartment approvals in New South Wales fell by 27 percent, to 2,526, the lowest level since January 2016. Victoria did not fare much better, with apartment approvals down by 13 percent in March.</p>
<p>However, the value of alterations and additions increased by 1 percent in March and has risen for seven straight months.</p>
<p>“The record rates of new home building last year and this year are a result of the industry playing catch-up after a decade of underinvestment into our housing stock,” Pollock added.</p>
<p>“New home construction will need to be maintained at 200,000 new dwelling per year for at least the next five years if we are to meet the needs of a larger population and ensure supply constraints do not push up future house prices.”</p>
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Budget must support new home building as building approvals fall

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<p>The New South Wales government leads the country in property tax increases, according to the Property Council of Australia which cited the latest ABS data, adding further pressure on house prices amid the hot debate on affordability.</p>
<p>Taxes on property increased by 16 per cent, or $2.4 billion in NSW in 2015/16, leading Australia in terms of property tax hikes. Over the last five years, revenue from property taxes in NSW rose by 64.9 per cent, or $6.7 billion, the data shows.</p>
<p>The state’s tax share bolstered last year’s national property tax revenue where property taxes hit a record $49.5 billion across Australia. </p>
<p>The PCA says the state government is leaning on the property industry to prop up its spending. </p>
<p>“This a podium finish NSW does not want; with housing affordability the number one issue for this premier and her leadership team, it is concerning that they continue to squeeze the industry dry and are swimming in property tax revenue,” NSW executive director Jane Fitzgerald said.</p>
<p>“Higher taxes on property means higher house prices and more strain on first home buyers - this government is simply throwing fuel on the fire.</p>
<p>“With the average house price in NSW at around $900,000 and in parts of Sydney at well over $1 million, we need to be reducing taxes on the property industry, not leading the nation in terms of tax hikes.”</p>
<p><img src="https://www.urban.com.au/images/2017/04/28/NSWtax.png" alt=""></p>
<p>Over the past five years, revenue for property based stamp duty in NSW has doubled to more than eight billion dollars from around four billion dollars.</p>
<p>“When will enough be enough and we look at tax reform in this state to reduce the burden on the industry and look at sustainable, long term revenue streams rather than property taxes that rise and fall with the market,” said Fitzgerald.</p>
<p>“The upcoming state budget must be brave and bold and contain tax reform that releases the financial pressure on the people of NSW.”</p>
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jonathanchancellor-7SQnKwU6yx

NSW leads Australia in property tax hikes: PCA

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<p>Sydney's biggest ever auction day saw 1140 homes go under the hammer and with 677 of the results in by Saturday evening, CoreLogic put the clearance rate as nudging 80 percent.</p>
<p>At 79.47 percent - and "all of that extra supply", CoreLogic’s auction analyst Kevin Brogan described it as "a robust performance,”.</p>
<p>The dearest at Drummoyne, saw a four-bedroom art deco home on the waterfront sold for $7.2 million. </p>
<p>The auctioneer Damien Cooley called the property onto the market at $6.8 million.</p>
<p>“There’s a shortage of waterfronts in Drummoyne,” Cobden and Hayson agent Frank Colacicco told <em>The Sunday Telegraph</em>.</p>
<p>A freestanding ocean-view Federation house in Sydney's Bronte has been sold for $5.33 million, making it Sydney’s second most expensive auction weekend sale.</p>
<p>Located at <a href="https://www.realestate.com.au/sold/property-house-nsw-bronte-124949282">12 Cross Street</a>, it overlooks Tamarama and is centrally located to both Bronte and Tamarama beaches.</p>
<p>It has a double frontage of 450 sqm with an elegant entry hall and ornate ceilings</p>
<p>It features a huge living room with original floorboards along with spacious dining and casual living.</p>
<p>Double doors leads to the raw timber deck along with retractable awning and landscaped gardens.</p>
<p>Kitchen features Caesarstone along withg Bosch dishwasher and Ilve gas cooker.</p>
<p>Upstairs is the retreat featuring an ensuite.</p>
<p>There is also an Italian glass mosaic-tiled family bathroom.</p>
<p>Huge scope to extend upper level and there are also off-street parking for two cars.</p>
<p>The property was offered through Phillips Pantzer Donnelley agents Alexander Phillips and Gavin Lewis.</p>
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Harbourfront Drummoyne and ocean-view Bronte top Sydney's super Saturday sales

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<p>QSuper, Queensland's largest super fund, is teaming up with Macquarie Group's asset management arm to bid for New South Wales' land titles registry.<br><br> The super fund, which manages more than $65 billion, is preparing to write a cheque to support the bid headed by Macquarie Group's asset management arm, Macquarie Infrastructure and Real Assets (MIRA), according to the Australian Financial Review’s column Street Talk.</p>
<p>The consortium also includes ASX-listed Link Group, which has plenty of experience designing and implementing technology-based process upgrades, Street Talk said.</p>
<p>The Land and Property Information (LPI) unit provides all mapping, titles and other related land information services for NSW.</p>
<p>The sale of the state's LPI would be the first sale of its kind in Australia, Property Observer had reported in a previous article.</p>
<p>Ever since the news of the privatisation of the LPI came out, there has been much debate about its impact. </p>
<p>Experts have said there is a “very real potential for conflict of interest if a commercial organisation such as a major bank, insurance company or land title data provider, owns the title”, as previously reported by Property Observer. </p>
<p>The privatised model would eliminate independent government operation of the title system, reduce community trust and open up opportunity for corruption in land transactions, the article had said. </p>
<p>There was also concern about job losses, with Fairfax Media citing leaked documents saying hundreds of employees at NSW's land titles registry are now uncertain about their future with the future private operator possibly sending their jobs out of the state.</p>
<p>Premier Gladys Berejiklian whether these jobs would stay in NSW for at least another four years. </p>
<p>MIRA's consortium is said to be on track to have a binding bid ready in time for the March 30 deadline. </p>
<p>The winning bidder will have the right to run NSW's land titles registry for the next 35 years, forecast to be worth more than $2 billion. Fairfax Media said LPI generates $130 million in profit each year.</p>
<p>QSuper is no stranger to Australian infrastructure auctions. It has invested about $5 billion in the asset class, including stakes in the Port of Brisbane, NSW Ports (Port Botany and Port Kembla), Brisbane Airport and the QIC/AMP Capital-owned utility Powerco.</p>
<p>QSuper has traditionally participated in such auctions via fellow Queensland firm QIC or under the guidance of the US-based but increasingly Australian-focused Global Infrastructure Partners.</p>
<p>MIRA's group is expected to come up against three other bids at the auction; Hastings Funds Management and its partners including First State Super; Canada's Teranet with parent Borealis Infrastructure and Computershare; and private equity giant The Carlyle Group.</p>
<p>Should QSuper write a cheque as expected, it would be a significant financial boost for MIRA and Link. While there is no doubting in the pair's expertise in such technology upgrade and registry-type projects, there were some doubts about funding and whether they could compete with the deeper pockets of rival consortiums. </p>
<p>JPMorgan is running the auction on behalf of the NSW government after undertaking a scoping study on the sale.</p>
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QSuper to back Macquarie arm's bid for New South Wales' land titles registry

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<p>Residential vacancy rates in the Sydney metropolitan market have fallen 0.2 percent to 1.9 percent, according to the REINSW.</p>
<p>The February 2017 REINSW Vacancy Rate Survey from REINSW found Inner Sydney led the fall in rental listings with a 0.2 percent decline at 1.7 percent, similar to levels of 9 months ago.</p>
<p>John Cunningham, president, REINSW said Middle Sydney fell 0.3 percent at 1.8 percent while Outer Sydney remained steady at 2.2 percent.</p>
<p>"The Hunter slipped 0.2 percent with a 0.7 percent rise in Newcastle to 2.7 percent offset by a fall of 0.9 percent at 1.6 percent in the rest of the region," he said.</p>
<p>"In the Illawarra, vacancy rates fell 0.3 percent at 1.1 percent with Wollongong falling from 2.1 percent to 1.1 percent.</p>
<p>"Across regional areas, Albury was down 0.8 percent at 3.2 percent, the South Coast fell 0.2 percent at 2.1 percent and Northern Rivers slipped 0.5 percent at 1.1 percent.</p>
<p>"Coffs Harbour rose 1.1 percent to 3.7 percent and Central Coast gained 0.3 percent to 2.8 percent."</p>
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Residential vacancy rates fall across NSW: REINSW

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<p>GUEST OBSERVER</p>
<p>NAB Economics have partnered with NSW Trade and Investment in utilising the NAB Quarterly Business Survey (QBS) to gain a better understanding of foreign multinationals operating in Australia, and especially NSW.</p>
<p>Commencing from the December quarter 2016, the NAB QBS asked firms an additional question on the location of their parent company.</p>
<p>That has allowed us to single out the performance of foreign multinationals operating within Australian borders, based on the numerous metrics available from the Survey. Attempts are currently underway to extrapolate a time series of business indicators for these firms, but for now available outcomes are restricted to Q4 2016.</p>
<p>In the final quarter of 2016, the NAB Multinational Business Survey revealed that business conditions – a composite of trading/sales conditions, profitability and employment – were strong for foreign multinationals, at +13 index points, and were higher than for those with an Australian-based headquarters (although conditions were quite positive despite ownership) (Chart 1, Table 1).</p>
<p>Given the importance of attracting foreign investment to the local economy, it is encouraging to see that foreign multinationals already operating within Australia are performing so well – and are especially strong in NSW (see below). Business confidence on the other hand is looking more balanced, at reasonably positive levels (+6 index points for all ownership types).</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.14.10%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.14.10%20AM.png" alt=""></p>
<p>By component, foreign multinationals are reporting very good sales activity, with our trading conditions index at 20 points, which was well above the (also solid) levels seen by other firms. Reflecting the apparently strong demand conditions, profitability was also quite high, at 15 index points, which was again higher than that reported by other firms. Employment conditions, however, were a little less encouraging (albeit still positive). The employment conditions index meanwhile was at +3 index points, which is slightly below the level recorded by firms with headquarters located within Australia.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.17.57%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.17.57%20AM.png" alt=""></p>
<p>Concentrating on NSW, foreign multinationals reported very strong business conditions in Q4 2016 (+16 points), albeit slightly lower than for firms with an Australian-owned headquarters (Charts 2). By component, foreign multinationals saw the best trading conditions, but were noticeably softer on employment conditions relative to other firms in NSW. They also performed better in NSW than in other states (Chart 3), outperforming in two out of three components (employment again being the exception). </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.18.52%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.18.52%20AM.png" alt=""></p>
<p>The outperformance of business conditions for foreign multinationals at the national level is not quite replicated across all the other key financial and forward indicators from the Survey (Chart 4). They are, however, leading when it comes to profit margins, which suggests that these firms are experiencing a relatively favourable business environment, both in terms of costs and revenue.</p>
<p>That would tend to suggest that the positive inventory index points to voluntary restocking by firms – although that seems counter to forward orders, which are noticeably lower for foreign multinationals than for other firms. Capacity utilisation outcomes suggest similar levels of spare capacity, regardless of ownership, but investment activity by foreign multinationals appears relatively lower, while their intentions to invest in the next 12 months are significantly lower than for some other firms (more details below).</p>
<p>Focussing on NSW, foreign multinationals are performing better than in other states on a number of measures, including profit margins and forward orders (Chart 5). However, the investment outlook is perhaps not quite as encouraging as it is in other states – despite foreign multinationals enjoying much better demand conditions (business conditions and forward orders) in NSW than elsewhere.</p>
<p>KEY RESULTS BY INDUSTRY</p>
<p>The sample from the Business Survey allows us to deconstruct responses by industry, at the national level. On balance, foreign multinationals within the construction industry experienced the best business conditions in Q4 2016, while conditions in the mining industry look extremely poor (Chart 6).</p>
<p>That said, mining confidence was a clear standout in the quarter, which probably reflects improvements in project viability due to a rally in commodity prices. Transport was the only other industry where foreign multinationals reported negative business conditions (and even weaker confidence). While that may partly reflect mixed conditions in distributional services more generally, higher energy costs are probably contributing to the weak result.</p>
<p>Unsurprisingly, foreign multinationals in services industries have performed relatively well, which is a trend reflected in the broader economy. Solid conditions in retail are also encouraging given mixed indications from other data sources.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.20.19%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.20.19%20AM.png" alt="" width="302" height="768"></p>
<p>Similar to domestically-owned firms, foreign multinationals are reporting capital expenditure intentions that vary significantly across industries (Chart 7). Foreign multinationals appear more keen to invest than other firms in wholesale, construction, retail, and professional services.</p>
<p>Construction is unsurprising given the strength of the residential boom, but the high level for wholesale (and to some extent manufacturing) is interesting given the significant structural changes underway within the industry. Investment intentions are also high for personal services (RPS), just not as high as locally-owned business. </p>
<p>OTHER INDICATORS OF BUSINESS EXPECTATIONS</p>
<p>Aside from capital expenditure expectations, the Survey also asks firms about their outlook for factors such as sales, profits and employment. On balance, foreign multinationals are noticeably more upbeat on their 12-month outlook for sales and profits than they are for employment (Chart 8).</p>
<p>This might normally suggest that firms are looking to undertake a more capital intensive expansion of their operations, and/or reduce spare capacity, but also in this instance is hard to square away with current levels of capacity utilisation and capex expectations (discussed above). Therefore, this outcome may point to an anticipated improvement in efficiency/productivity?</p>
<p>In terms of the outlook for foreign multinationals operating in NSW, these firms tended to point to a better outlook for the next 12 months than foreign multinationals in other states. Sales, profit and employment expectations (12-months ahead) were all higher for these firms (Chart 9). Once again, employment conditions are lagging behind, although the net balance is still quite positive at +20 index points.</p>
<p>BORROWING &amp; REQUIRED RETURNS</p>
<p>To get a better idea of what is affecting decisions on capital expenditure, the Survey asks about credit conditions and the required rate of return for potential investments. On credit demand, the Survey shows that foreign multinationals tended to require less borrowing in the quarter than other types of firms (Chart 10, black bars). A similar observation can be made for foreign multinationals operating in NSW (Chart 11, black bars).</p>
<p>The lower demand for credit could reflect a number of potential factors. Perhaps foreign multinationals have greater access to other sources of finance. Another possibility is that foreign multinationals are still more reluctant to take on debt than solely domestic firms, given the higher degree of disruption in foreign debt markets over recent years.</p>
<p>Overall borrowing conditions (i.e. supply side constraints) might be another factor that is limiting firms borrowing. Differences in regulation and risk assessment can affect the willingness of banks to lend to foreign firms relative to solely domestic ones.</p>
<p>To measure this, the Survey produces a borrowing index, which compares those firms who found it easier to borrow versus those who found it harder. Interestingly, at the national level, foreign multinationals found it no harder than other firms to borrow, but they did find it harder in NSW (Charts 9 &amp; 10, grey lines).</p>
<p>Finally, required rates of return on investment appear to be a little higher for foreign multinationals, which could be a limiting factor on capex given the uncertain growth outlook for the economy (Charts 10 &amp; 11, red lines). </p>
<p>CONSTRAINTS ON BUSINESS OUTPUT</p>
<p>When asked about the main constraints on the firm’s output, aggregate demand tends to be the most common response. Foreign multinationals are no different, with more than half of these firms indicating that demand was either a minor or major constraint on their output (Chart 13, red bars).</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.21.35%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/14/Screen%20Shot%202017-03-15%20at%208.21.35%20AM.png" alt=""></p>
<p>However, a significant proportion of foreign multinationals (more than a third), also indicated that a lack of suitable labour is playing a role as well. Given that the unemployment rate is elevated in Australia (5.8%), and the underemployment rate is close to record highs, there certainly seems to be an adequate supply of workers in the market. Therefore, this result could suggest that firms consider the available workers to be underqualified, inexperienced or not qualified in the skills that are required. The availability of materials and physical capital is much less of a concern, but around 10% of foreign multinationals consider them a minor constraint.</p>
<p>At the state level, similar observations can be made for NSW, although the availability of suitable labour features more prominently – nearly half of foreign multinationals see it as a minor constraint (Chart 13, black bars). Additionally, although demand is still the largest constraint for NSW foreign multinationals, a smaller proportion see it as a significant constraint compared to foreign multinationals in other states (Chart 13, red bars). </p>
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<p><em><span>Alan Oster is group chief economist, National Australia Bank, and </span>can<span> be contacted <a href="https://business.nab.com.au/author/alan-oster/" target="_blank">here</a>.</span></em></p>
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jchancellor-FAypfDUnLy

Multinationals operating in NSW a clear standout: NAB's Alan Oster

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<p>The NSW service station market has seen resurgence in both new sites being constructed and investor interest, according to Knight Frank’s latest Research report, NSW Service Station Insight: February 2017.</p>
<p>Findings of the report were discussed by a panel of experts at a Knight Frank event in Sydney last night.</p>
<p>The panel included members from Rostron Carlyle, Consara, Holden Capital Finance and UCB, alongside Knight Frank’s Director, Service Stations Jason March and Director, Research &amp; Consulting Paul Savitz.</p>
<p>According to Mr March, “There is a strong appetite for service stations in Australia.</p>
<p>This asset class is no longer just for mum and dad investors.</p>
<p>They have evolved and have a diverse range of buyers now seeking to add service stations to their investment portfolios and superannuation funds.</p>
<p>“The appeal to investors in recent years has been underpinned by long-term lease covenants, with fuel companies providing stable income with relatively low costs associated with these assets.</p>
<p>“The demand for service stations will remain high, as competition in the sector continues to grow and investment yields remain attractive to developers and investors alike,” said Mr March.</p>
<p>According to the report, service station sales in NSW totalled $175.5 million in 2016 – 48 per cent above 2015 levels.</p>
<p>“The development of new service stations in NSW is increasing with 38 new-to-industry (NTI) sites established in 2015 and 2016.</p>
<p>Development has been concentrated in key growth corridors where population growth has been significant,” said Mr March.</p>
<p>In the latest deal negotiated by Mr March, a Junction Hill service station in Northern NSW has sold for $1.3 million plus GST to Shane Punton PTY LTD.</p>
<p>Located on 5 Casino Road, Junction Hill, the 1,255 square metre Caltex station received strong interest with multiple offers. Mr March said that multiple offers were received for the property.</p>
<p>Prior to this, recent sales by Knight Frank further up the coast in south-east Queensland include Puma Loganlea, which sold for $6 million; BP Capalaba East for $3.65 million; Neumanns Alexandra Headlands for $2.5 million; Choice Coopers Plains for $2.2 million and BP Kilcoy for $2.5 million.</p>
<p>According to Mr Savitz, the rationalisation of sites and industry amalgamations have been significant over the past decade, as traditional operators began to focus on upstream activities – making way for the entry of the supermarket chains in the early 2000s.</p>
<p>“With secure, globally-recognised tenants offering solid leasing covenants and long-term cash flow, interest in the service station sector has grown rapidly in recent years.</p>
<p>Over the past two decades, the service station industry has changed markedly with traditional fuel providers reducing retail operations to focus on the more profitable upstream oil and gas sector.</p>
<p>“Once dominated by the likes of Shell, BP, Mobil and Caltex, the entry of supermarket brands raised the stakes – ultimately increasing competition and altering the traditional model of what consumers</p>
<p>are being provided.”</p>
<p>Mr Savitz said that in line with the population, NSW accounts for the largest number of service stations in Australia at 30 per cent; moderately above VIC and QLD at 22 per cent respectively.</p>
<p>“Service station ownership in NSW is highly concentrated within a select group of operators, with the four largest providers by brand accounting for 50 per cent of NSW service stations.</p>
<p>Caltex, BP, Shell-Coles Express and 7Eleven are the largest players.</p>
<p>“Through industry amalgamations, the rationalisation of sites and a larger volume of fuel being sold from each site, the number of petrol stations in operation within Australia has declined to approximately 6,400 – down from 8,370 in 2000 and around 20,000 in the 1970s.” </p>
<p>Mr March said the ownership structure of the service station sector is anticipated to change further over the next five years.</p>
<p>“Coles and other independent operators are expected to increase their presence in the industry.</p>
<p>In the short term however, an interesting period lies ahead as BP’s purchase of the Woolworths service station business flows through and both established and new industry entrants look to gain market share,” said Mr March.</p>
<p>To meet the growing demand for service stations across Australia, Knight Frank has recently expanded its service stations team, with Knight Frank’s Associate Director, Service Stations, Kim Munro joining the firm at the start of this month.</p>
<p>“Kim comes to Knight Frank with extensive experience in the fuel industry and we’re confident he’ll help us continue to be one of the leaders in service station sales in Australia,” concluded Mr March.</p>
<p>A retail service station at <a href="https://www.realcommercial.com.au/property-retail-nsw-finley-502249202" target="_blank">16 Murray Street</a>, Finley (above) has been listed for auction.</p>
<p>Similarly a retail service station at <a href="https://www.realcommercial.com.au/property-retail-nsw-ingleburn-502246638" target="_blank">Lot 8, 24-30 Lagonda Drive</a>, Ingleburn (below) has been listed for sale.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/22/Lot%208%2024-30%20Lagonda%20Drive.jpg" alt=""></p>
<p>A retail service station at <a href="https://www.realcommercial.com.au/property-retail-nsw-forster-502249198" target="_blank">86 Macintosh Street</a>, Forster (below) was sold.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/22/86%20Macintosh%20Street.jpg" alt=""></p>
<p>Similarly a service station at <a href="https://www.realcommercial.com.au/property-retail-nsw-towradgi-502174362" target="_blank">162-166 Pioneer Road</a>, Towradgi (below) was sold for $5,615,000.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/22/162-166%20Pioneer%20Road.jpg" alt=""></p>
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NSW service station market sees resurgence

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<p>The NSW economy has continued to outperform the rest of Australia by a wide margin, but the state’s economic strength is placing pressure on housing affordability, said Westpac’s Red Book January 2017 report.</p>
<p>The state recorded 3.5 percent growth for the 2015/16 financial year, the strongest result since the pre-Olympic boom in 1999/2000.</p>
<p>The more recent performance has been more mixed with state demand stalling in Q3 and consumers reining in spending growth in line with slow incomes.</p>
<p>The consumer mood has also been toned down a little but remains more upbeat than the rest of Australia.</p>
<p>At 102.8 the average NSW sentiment index read over the last 3 months is not particularly strong but is comfortably above the 98.5 reading for the rest of Australia.</p>
<p>The biggest wedge is around views on the economy which remain less pessimistic in NSW (i.e. above the rest of Australia but still sub-100).</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/03/wes-6.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/03/wes-6.jpg" alt=""></p>
<p>Unemployment expectations are also materially better in NSW – the only state recording responses below its long run average.</p>
<p>The picture is less constructive around housing. Deteriorating affordability continues to weigh on assessments of ‘time to buy a dwelling’, the state index still 18 points below the rest of Australia and firmly in negative territory.</p>
<p>Notably, NSW consumers also appear to be becoming warier of risk, the state risk aversion index converging with the national measure in December.</p>
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NSW's economic strength straining housing affordability: Westpac

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<p>Will Rogers probably didn't have Sydney's inner west in mind when he famously said "don't wait to buy land; buy land and wait", but it would have been an apt observation if this has been the case.  </p>
<p>The New South Wales Valuer General reported that total land values had risen yet again by 11.3 percent in the 2016 financial year to $1.5 trillion.</p>
<p>The value of the state's land is up by more than 57 percent in only four financial years.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/17/NSW4.jpg" target="_blank">Click to enlarge</a></p>
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<br><div>Unsurprisingly the gains were driven by residential land values which rose by 11.1 percent to $1.2 trillion.</div>
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<div><strong><span style="text-decoration: underline;">Inner west land pressures</span></strong></div>
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<div>Caution should always be exercised when interpreting residential land value figures, which were calculated from a sample of more than 38,000 sales in the 2016 financial year. </div>
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<div>This is particularly so at the Local Government Area (LGA) level, where median values can be skewed higher by sites with development potential, particularly at this advanced stage in the cycle.</div>
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<div>As usual the most valuable residential land was the in the leafy LGAs of Mosman to the north ($1.84 million median) and Woollahra to the east ($1.82 million) which remain very much the domain of the wealthy, but most of the serious gains have been seen in the inner west of Sydney.</div>
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<div>No fewer than 16 LGAs now have a median residential land value of more than $1 million, which will result in hefty land tax levies. </div>
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<br><div>Not everywhere saw large gains in land values, with often only moderate changes in regional and coastal New South Wales, and the Blue Mountains, for example. </div>
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<span>There were declines too in mining locations. </span><br><span><br></span><span>Broken Hill and the mining areas of the Hunter (the LGAs of Muswellbrook, Singleton, and the Upper Hunter) recorded drops in land values ranging from around 8 per cent to 15 percent.</span>
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<br><div>On the other hand, the greatest gains in the financial year were seen in Burwood, with land values up by no less than 37.5 per cent, a location which saw the sale of a number of development sites in both the centre of the suburb and along Parramatta Road. </div>
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<div>Over the past four financial years there have been crunching gains in half a dozen or more LGAs located to the west of the Sydney Central Business District.</div>
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<br><div>We live in a nominal world, as the saying goes, and when looking at the greatest dollar value increase in median residential land values, top of the pile was Strathfield which has recorded an astronomical increase of $723,000 since FY2012.</div>
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I can't think of anything pithy to say about these numbers, so I'll leave the last word to Will Rogers:<br><br>"Find out where the people are going and buy the land before they get there."<br><br>Indeed.
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

NSW land values rise again to $1.5 trillion: Pete Wargent

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<div>The NSW Department of Planning will be able to step in if councils or other government agencies sit on residential approvals for too long under new laws.</div>
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<div>Aimed at relieving Sydney's chronic housing shortage, the proposed changes will see the Planning Minister also have the right to set up a planning panel on councils that are stalling on a project decision.</div>
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<div>It is a system already operating in South Australia. </div>
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<p>The NSW development approval system has previously been labelled the worst in the world by the Property Council of NSW.</p>
<p>The Daily Telegraph had Prime Minister Malcolm Turnbull last week saying Sydney councils were taking three times as long to approve DAs as their counterparts in Brisbane.</p>
<p>The proposed changes include standardising the format of councils' development control plans, removing 400 formats that exist across the state.</p>
<p>Developers will also be given incentives, yet to be detailed, to resolve objections with neighbours before lodging development approvals.</p>
<p>It is expected to save time and money, and increase harmony, though the Australian Financial Review noted NSW Planning Minister Rob Stokes' department provided details of the legislation to the paper on the condition no groups such as Greens and local councils would be approached for comment. </p>
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<p>NSW Urban Development Institute of Australia chief executive Steve Mann, in comments supplied by the NSW government, said the reforms addressed some long-held frustrations with the planning system by industry, community and local government.</p>
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