Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

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Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

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A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

Deloitte

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EXPERT OBSERVER
It’s clearly been a tough year for many retailers, with 47% of our survey respondents [in Deloitte's Retailers' Christmas Survey 2019] telling us they’ve experienced flat or negative sales growth over the past 12 months.
So it’s probably no surprise many are also approaching this Christmas with a little less cheer, certainly compared to last year.
Just over 60% are expecting to increase their sales this Christmas, compared to 80% in 2018, and nearly 40% are also expecting to see a decrease in seasonal margins. This is, unfortunately, the most pessimistic we’ve seen retailers since 2013.
Many have pinned their hopes on federal government tax cuts, but the latest trading data suggests consumers have chosen to keep any windfall in their pockets. Retailers are no doubt hoping they’ve been saving up for Christmas.
As always, when to discount and by how much remains a critical decision for retailers over the holiday period. Last year they told us they were intent on holding strong. But with difficult trading conditions 12 months later, this will be challenging, with 39% of retailers planning to discount before Christmas compared to 31% last year, and 30% in early December. 
And with the proliferation of sales campaigns such as next week’s Black Friday leading into December, many are concerned this could bring forward Christmas trading at discounted prices.
Getting personal
The cautious consumer has brought good old customer service back to the fore, as retailers can no longer rely on buoyant spending to drive in-store trade.
Over a quarter of respondents highlighted customer service as the most important driver of sales this Christmas, just behind digital and omni-channel offerings.
These two strategies aren’t mutually exclusive. Forming a strong digital connection with the consumer is critical to building trust in the brand, regardless of where the customer spends, and this connection to the customer flows through to loyalty. 
Over 90% of respondents consider their customer loyalty as good or strong, but brand loyalty is also hard won and easily lost. In the era of cancel culture, retailers need to understand the reasons when things go wrong, and how dealing with a poor customer experience via exceptional customer service can protect, and even enhance, brand reputation and the value this can deliver.
Looking for green shoots in 2020
There are signs of more optimism amongst retailers for their prospects in 2020.
They’re still hoping for the best, with some 72% expecting to bounce back and grow their top line. But with most not forecasting growth in excess of 5%, it still looks like another challenging year ahead.  
New products and online will remain key to growth prospects, and only 11% of retailers are expecting to grow through new store openings, down from a peak of 43% in 2017. 
Rising input costs following the depreciation of the Australian dollar are also expected to bite when it comes to margins, and respondents continue to look to the likes of property costs as levers to reduce bottom line impacts.
It’s certainly critical that within the retail ecosystem, retailers, suppliers and landlords work together, rather than against each other. 
Ultimately, uncertainty kills confidence, and global economic turbulence certainly isn’t helping. Australian retailers will be waiting for a recovery in wage and jobs growth to provide a boost where interest rates and government tax cuts fail to provide the stimulus needed.
Profit AND purpose: big room for improvement
The survey report also looks at Australian retailer views on social impact their operations.
Consumers, employees and other stakeholders are increasingly expecting companies to operate in a responsible manner, from ethical sourcing, using sustainable materials and packaging, and reducing carbon emissions to the fair treatment of employees on pay and conditions and making a meaningful contribution to communities and society more broadly.
In a real concern, 42% of respondents believe social, ethical and environmental responsibility isn’t important to their brand.
Yet in the same breath, 91% believe they enjoy good or strong customer brand loyalty. There’s a concerning perception gap here. If Australian retailers don’t quickly grasp the reality of increasing stakeholder expectations, and respond in a considered, meaningful and, importantly, authentic way, consumers may vote with their wallets, and employees with their feet.
David White is the national leader of Deloitte’s Retail, Wholesale &amp; Distribution Group.
Deloitte's Retailers' Christmas Survey 2019 survey findings include:
<ul>
<li>Only 62% of retailers expect to see higher sales this Christmas compared to last year, down from 80% last year</li>
<li>Just under 40% are expecting to see some form of Christmas period margin decrease</li>
<li>39% will be discounting pre-Christmas to help drive sales</li>
<li>Digital continues to be a standout, with 58% expecting to see growth of 10% or more in online Christmas sales</li>
<li>72% expect to see positive sales growth in calendar year 2020, down from more than 90% for 2019. </li>
</ul>
 
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jrobinson-rf4aSBido9

Positive retail sentiment is down as important Christmas trading period approaches: Deloitte

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Storm clouds are gathering over Australia’s housing market as NSW and Victoria's price growth boom was borrowed from the future and they will have to pay back some of it, according to a recent Del­oitte Access Economics’ report.
Home building will likely shrink further amid “increasing evidence that gravity may soon start to catch up with stupidity in housing markets,” noted Chris Richardson of Deloitte Access Economics in its quarterly outlook.
The report, while summarising the state of the world economy and its impact on Australia, said “the jump from a China boom to a housing price boom sent the nation’s money and momentum from its north and west towards its south and east”. 
The outlook from Deloitte is the latest in a series of warnings about the risks to Australia's economy from the housing market. Earlier, Citi had said property prices could fall by as much as 7 percent as the housing boom unwinds by 2018.
The report picked NSW and Victoria as having “clay feet”, saying a house price boom borrows growth from the future, and both states will have to pay back some of that in the years ahead “as today’s housing prices gradually reconnect with reality”.
It noted that NSW benefited from the shift to lower interest and exchange rates since 2012. 
“But storm clouds are building, as the housing price boom has artificially supported retail and home building. There’ll be an eventual butcher’s bill to pay as those supports reverse,” Richardson noted.
Victoria has benefited as key cyclical drivers – exchange and interest rates – moved in a ‘Victoria- friendly’ direction in recent years. And though Victoria is experiencing its strongest population gains for many a decade but its population and housing cycles may be near their peaks, it said.
In Queensland, Cyclone Debbie and slowing housing construction are current negatives, but Debbie’s impact will be temporary and gas exports are lifting, it said.
The report warned that the “gargantuan Chinese credit surge is finally easing back”, suggesting that “the global economy won’t be doing Australia quite as many favours from 2018 onwards”. 
Amid all the grim warnings of the risks from the housing market, the report said those were the only caveats  on an otherwise solid outlook. 
“Relative to the rest of the rich world, Australia’s economic outlook may not be quite as impressive as it once was, but we are still kicking goals,” it said.
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jonathanchancellor-7SQnKwU6yx

Gravity catching up with stupidity in housing markets: Deloitte report

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Australia’s tourism sector remains a shining light for the nation’s economy, with strong growth in both international and domestic visitor numbers, according to Deloitte Access Economics’ latest Tourism and Hotel Market Outlook report.
International tourism
While strong macroeconomic tailwinds eased marginally as the Australian dollar edged up, international visitor arrivals continued to grow at record pace, after accelerating over 2016.
The growth Australia is experiencing is the fastest in a generation and is seeing it outpace both global performance and travel across the Asia Pacific.
In fact, international visitation to Australia is growing at nearly three times the rate of global travel.
As Deloitte Access Economics’ Bryon Merzeo observes: “Against any reference point, the performance of the Australian tourism industry is remarkable – the fastest growth and faster than our global competitors are achieving.”
“What is especially encouraging about the growth we’re witnessing in international travel is its broad-based nature.
Although emerging Asia continued to underwrite much of Australian tourism’s strength, Asian travellers only accounted for 50 percent growth in visitor arrivals in 2016, compared to 70% the year prior.”
While markets such as China, India, South Korea and Vietnam continued their double digit growth, many of Australia’s oldest legacy markets also performed strongly, with Japan defying a sluggish local economy to post growth of 23 percent and the US shaking off economic and political uncertainty to record arrivals growth of 18 percent.
Domestic tourism
On the domestic front, the good news continues, with leisure travel sustaining its momentum to grow by 8.2 percent over the year to September.  
As Merzeo notes: “Our report confirms that, for the sixth consecutive year, more Australians are travelling at home, and they’re travelling to Australia’s leisure favourites.
Successful promotional campaigns on food, wine and coastal tourism have contributed to a 6 percent increase in domestic guests at Cairns and Hobart airports, and double digit visitor night growth for both Western Australia and Southern Australia.”
Domestic corporate travel growth, however, slowed considerably to 2.3 percent as the weaker economic performance observed over the latter part of 2016 weighed on business travel, although the strength of the domestic leisure segment was sufficient to keep overall domestic travel growth at above trend.
Hotel performance
Despite the sustained strength of Australia’s tourism sector, performance of the hotel sector was restrained over the latter half of last year.
A significant contributor to this was growth in supply. At around 4,900 new rooms, the nationwide additional supply in 2016 was almost double the 15 year average.
However, performance was also affected by variable demand side conditions.
Merzeo explains: “The weaker demand observed across many markets partly reflects the softening of corporate travel, which accounts for one in three capital city hotel nights on average and considerably more for some individual properties.
However, it also suggests that leisure travellers are increasingly looking beyond traditional options for their holiday accommodation.
“They are clearly enjoying the choice and variety of accommodation offered by the likes of Airbnb.
Leisure travellers’ use of non-traditional accommodation increased by 11.5 percent in 2016, contributing to 8.7 percent growth in use of this form of accommodation overall.
Despite this, it was Australia’s leisure destinations leading the way in terms of hotel market performance:
Tasmania tourism continues to go from strength to strength, with Hobart overtaking Perth to assume third place in the occupancy rankings
Gold Coast and Tropical North Queensland maintained strong hotel performance growth over the second half of 2016
The mantle of the nation’s highest occupancies remained with Sydney (89 percent) and Melbourne (88 percent), while strong supply growth weighed on performance in Perth and Brisbane.
Tourism outlook
Merzeo said: “The outlook for the chief macroeconomic drivers of travel and tourism remains conducive to the super growth sector continuing to re-write the record books.
“Despite increased global political uncertainty, the economic growth prospects across key source markets remain sound.”
Deloitte Access Economics forecasts international visitor trips to grow by 6.3 percent p.a. and visitor nights by 6.2 percent p.a. on average over the next three years – a marginally stronger outlook.
The growth will be led by India at 13 percent, closely followed by Indonesia and China at 10 percent.
“On current forecasts, we expect by 2020 that the value of inbound tourism from China will exceed the entire inbound international tourism market as it stood in 2000,” Merzeo said.
For domestic tourism, the story remains one of resurgent leisure travel, coupled with a transitioning economy and a corporate travel profile slowly re-orientating to the nation’s south-east.
With economic conditions expected to strengthen over the next two years, this points to a solid outlook for domestic travel with domestic trips forecast to grow by 3.3% p.a. and visitor nights to grow by 3.2% p.a. on average over the next three years.
Hotel outlook
A number of demand-side factors, including shifting corporate travel trends, historically high international arrivals growth and the increasing use of non-traditional accommodation options, are bearing heavily on the outlook for hotel markets.
However, the single biggest influence on the performance outlook is supply.
Merzeo said: “After years of record occupancies and rising room rates, investors and developers have finally responded.
The sizeable development pipeline which has emerged in Perth and Brisbane and which saw large additions to inventories in 2016 is being replicated in markets such as Sydney, Hobart and Melbourne, albeit to a lesser degree.”
Over the next two years, another 12,800 rooms are expected to come online, resulting in the nation’s hotel supply growing 2.5 times faster than its long term average rate.
In aggregate, Australian stocks are expected to expand by 122 properties and 15,800 rooms to December 2019.
The total pipeline of tourism-related investment stands at $29 billion, up from $17 billion three years ago.
Two-thirds of the investment pipeline is accommodation.
As Merzeo notes: “Yes, demand growth will still outpace growth in supply nationally.
But the gap between the two has narrowed markedly over recent years and the number of markets where supply growth is outpacing demand has increased.”
Room rates are expected to grow at an average of 2.5 percent p.a. for the next three years to $170 per night, chasing the 10 year historical average growth rate of 2.6%, while revenue per available room (RevPAR) is expected to grow by 3.1% to a national average of $123 by 2019.
Markets enjoying recent buoyant performance such as Hobart, Melbourne and, to an extent, Adelaide, have now established a solid pipeline of hotel developments, which will alter the demand/supply dynamics over the medium term.
“In a clear demonstration of the economics of hotel development at work, investors have clearly responded to the commercial opportunities in these markets,” says Merzeo.
Perth and Brisbane hoteliers will continue to feel the double-pinch of increased competition from new entrants, along with moderate demand growth compared to the mining boom peaks of five years ago.
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Tourism growth a shining light as hotel development pipeline finally responds to record occupancies

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The home specialty storage retailer Howards Storage World has appointed Deloitte as voluntary administrators, with the view of selling the popular business.
With the company pledging to keep trading, the business has 59 stores across Australia, 29 of which are in the hands of Deloitte partners Vaughan Strawbridge and David Lombe.
The company has a loyalty program with 600,000 members.
The Australian reported company’s 2012 accounts were the last filed with the corporate regulator ASIC showing a then breach of foreign funds financial covenants though making a $396,401 profit. There was $39 million annual revenue.
The company started as Stack and Store in Northbridge in the early 1970s.
It moved into franchising in the late 1990s.
The Australian Financial Review advised its co-founders were Leslie and Edda Howard who formed a partnership with Dirk Spence in 1997.
According to documents filed with the corporate regulator Dirk Spence and Pauline Donald are directors.
Leslie Howard stepped down as a director in September.
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