<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Mining

<html><body>
Purchasing property in resource-driven towns often seems like a sound investment.
Big mines can draw thousands of workers, driving up demand. Meanwhile, local incomes may increase significantly, and investors are often attracted to mining towns by the promise of high yields and fast capital gains.
But the rivers of gold can't always last. Mining town investments are also characterised by their volatility, given their exposure to single industries. Yesterday, Property Observer reported that some former mining town "hotspots" are recording price drops of <a href="/expert-insights/investing/from-hotspot-to-bloodbath-property-investment-in-australias-mining-towns">up to 40%</a> from their previous peaks.
While some defend the profitability of mining town property investments, others choose to steer clear.
Property Observer took the question to leading property experts: Can property in a mining town ever be a safe investment?
Margaret Lomas: Author, television host and <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank">Destiny </a>founder<img src="/images/authors/fullbody/Margaret-Lomas3.png" alt="" style="float: right;">
It never ceases to amaze me how property investors think simply about an asset's present performance when buying, and never consider all of the valid and crucial factors which must be considered before making any investment.
This is what makes mining town investors leap in to investments where the performance is completely linked to a single industry and the overall global economy in a way which can result in serious disaster.
When you become a property investor you must decide whether you intend to be a buy and hold investor or a speculator. A mining town investment is a speculative investment, yet those who buy them behave like a buy and hold investor - they buy in on the way up (and usually when it's too late) and then hold well past the use by date - often resulting in serious losses and abysmal yields when the area plunges on the back of reduced demand for resources.
Make no mistake - all mining town investments are extremely speculative and require precise market timing, both in and out.
Those buying in a mining town must not only have a very large appetite for risk, they must have the capacity to hedge - in other words, hold enough other assets so that, when the area falls in value, the loss can be offset with other stable assets, rather than result in the investor owing more than they own.
Terry Ryder: <a href="https://www.Hotspotting.com.au" target="_blank">Hotspotting.com.au</a> founder<img src="/images/authors/fullbody/Terry-Ryder.png" alt="" style="float: right;"> Can a mining town ever be a safe investment?
If "high-risk" is the opposite of "safe" in investing, the answer has to be no. All investments in mining towns are high risk. Markets in mining towns are always volatile, because they are one-industry towns. And that one industry, the resources sector, is fickle and capricious.
Add to that the tendency of developers to dive into boom markets and build way too much new stock, and you have a formula for a real estate roller coaster.
But can a mining town ever be a lucrative investment? Definitely. Even with the decline in resources-related markets in the past year or two, the best long-term capital growth rates in Australia are all in mining towns or regional centres impacted by the resources sector.
The Queensland coal town of <a href="/news">Moranbah</a> is the quintessential case study for the win-lose scenario presented by these kinds of markets. Over the 10 years to 2012, it averaged 30% per year in growth in its median house price, which reached $750,000. Rents were absurdly high, providing double-digit yields.
Then the downturn popped by. Today the median price is $330,000 and rents have dropped so low that the typical yield is 4%.
Moranbah has had downturns before, though never as severe as this one. It will recover in time, although the trend by mining companies towards FIFO workforces means it may never reach those previous heights.
Bottom line: mining towns are only for experienced investors with large portfolios and cast-iron temperaments.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Catherine Cashmore: Independent market analyst<img src="/images/authors/fullbody/Catherine-Cashmore.png" alt="" style="float: right;">
Is it ever a good time to 'invest' in a mining town? If it was, the time to do so has passed.
However, let's be clear - nothing of value is being 'invested' – the price escalation in a mining town comes from a self-feeding, virtuous cycle of irrational exuberance, taking a short-term bet on continuing rapid 'capital gains' at the expense of a new wave of speculative investors and the creation of more debt.
During the construction phase of the cycle (which typically employs a larger workforce than the current production phase), the surge in demand from fly in, fly out workers initially rises faster than supply can accommodate.  This drives up rents on existing sites, and attracts an increasing inflow of yield seeking investors.
The beneficial effects to the surrounding town and nearby localities, comes in the form of infrastructure contributions – ports, railroads, hotels, schools and so forth, which naturally boosts employment and can aid the long term viability of a region once the boom has surpassed.
However, the steep escalation created by speculative exuberance cannot be sustained. Timing therefore is crucial – and the losses significant.
A change in market prices can happen over night – Moranbah in Queensland for example – where houses renting for $1,200 - $1,800 per week in 2012, were barely able to attract $200-$300 per week in 2013.  Rumour has it that some properties were even offered 'free' for a short period of time, simply to gain tenancy.
The length of the cycle within any given area is determined by feasibility and long-term sustainability of a project.  New mines are planned years in advance, taking factors into account such as quantity and quality of deposits, milling processes, operating costs, capital costs, staffing, access to facilities (roads, rail etc.) and obviously continued demand from offshore markets. However, even assuming a feasibility study passes all the necessary criteria (and few presently are) – it does not guarantee the mine will be successful – or even commence.
To the peak of 2011, high-prices for resources such as iron ore, base metals and coal, were driven overwhelmingly by emerging markets such as China through heavy investment into infrastructure to accommodate rapid urbanisation of a large rural population.
However, China is undergoing structural changes to its economy – the effects of which are hard to predict over the longer term.  The subsequent dampening of its property market and therefore construction, has seen the price of iron ore plummet over recent months. Demand for scarce commodities is likely to continue, however it's not going to buoy a boom of speculative investment into the mining-town real estate sector as was previously the case.
Gamble your dollars elsewhere.
Damian Collins: <a href="https://www.momentumwealth.com.au/" target="_blank">Momentum Wealth</a> managing director<img src="/images/authors/fullbody/Damian-Collins-profile.png" alt="" style="float: right;">
Mining towns certainly can be quite cash flow positive in a lot of cases. But people need to be aware there are a lot of risks associated with that. Particularly if it's a mining town that's associated with one mine or a single commodity, and the commodity drops in value and they cut their workforce.
To some degree you're speculating on a particular commodity. And in some cases, even if the commodity is fairly well priced, the mine can still be fail if it's not profitable.
That's what happened with the BHP Ravensthorpe nickel project. Basically, they shut the thing down eight months later because it wasn't profitable.
The other risk is extra supply coming off the market. Often the towns are fairly small - 20,000 or 30,000 people. It doesn't take a whole lot of extra land supply to come off the market in order to effect rental yields and prices, like it did in Port Headland and Karratha. That's caused rental yields and prices to drop quite significantly, even though the industries are quite strong up there.
Certainly, you need to be very cautious. Our recommendation is that mining towns are not for the first time investor. They're for investors with a decent sized portfolio, with five or six properties, who willing to take on that risk as part of their property strategy.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Pete Wargent: Author and <a href="https://allenwargent.com/" target="_blank">AllenWargent </a>property buyers co-founder<img src="/images/authors/fullbody/Pete-Wargent.png" alt="" style="float: right;">
It's possible, yes, if investors buy an asset using an appropriately financed deal, for the right price, at the right stage in the cycle, provided there is some tolerance for price volatility and possible vacancies.
Generally speaking, an investor or speculator buys property in a mining town in anticipation of a new project passing its feasibility studies and progressing to the construction stage, bringing new labour into town and higher demand for housing.
With the China boom really having taken off over the past decade, commodity prices went skyward – iron ore prices between 2007 and 2010, for example, doubled and then more than doubled again - and Australia embarked on a vast and unprecedented frenzy of mining construction.
But the commodities sector naturally cycles, and look at the macroeconomic picture in late 2014.
We have now transitioned into the less labour-intensive production phase of the boom, and as the new producers really begin to hit their straps there is a tremendous glut of supply hitting global commodities markets placing relentless downwards pressure on commodity prices.
Fewer and fewer significant projects will pass feasibility, particularly copper/silver/gold projects, and in the bulk commodity sectors of coal and iron ore.
In short, mining construction activity will drop off a cliff over the next three years, especially in Queensland, Western Australia and, to a lesser extent, New South Wales.
<img src="/images/2014/11/06/ev.owa.jpg" alt="">
Property investment is generally most effective as a long-term play.
Capital cities with rapidly growing populations tend to be an effective inflation hedge since the required supply of new dwellings must always built at in today's dollars incurring today's labour and construction costs, thus underpinning prices.
Mining towns and resources regions at this stage in the cycle are more likely to experience pain in the form of high vacancy rates, declining demand and falling prices.
Pass.
Todd Hunter: Buyer's agent, <a href="https://www.wheregroup.com.au/" target="_blank">wHeregroup </a>director<img src="/images/authors/fullbody/hunter-profile-2.png" alt="" style="float: right;">
The only time mining towns can become good areas to invest in are when the towns are not sole mining towns and have some mining influence.
These locations have a lot more to offer than simply mining, so should mines close or commodity prices change, then the towns don't see the catostraphic fluctuations in house values like sole mining towns do. Some locations that offer this are Townsville, Bunbury, Mandurah (where many fly in, fly out workers live for lifestyle and are close enough to Perth airport to fly north).
The other major issue for mining towns is the huge availability of land which can see massive housing oversupply occur. At any stage large numbers of new blocks of land can be released and sold to interstate investors. In such small towns these large releases can take towns that have almost a zero vacancy rate to huge vacancy rates that see large rent reductions. We see this now in places like Gladstone, Chinchilla and Karratha.
Combine that with mining companies now opting for fly in, fly out labour forces rather than workers renting in town has seen populations reduce as well. In my eyes, it's way too risky!
</body></html>

jrichardson-uRX5hFdKfN

Exclusive: Can property in a mining town be a safe investment?

<html><body>
Troubled businessman Nathan Tinkler has lost his chance to secure an $80 million purchase of Peabody Energy’s Wilkie Creek mine in Queensland, after he missed several payment deadlines.
<a href="https://www.smartcompany.com.au/growth/41939-tinkler-back-in-the-game-after-queensland-coal-mine-purchase">Touted as his comeback</a> into the coal game, Tinkler had paid a $5 million non-refundable payment on the mine through his company Bentley Resources.
The former billionaire, who is now based in Singapore, <a href="https://www.smartcompany.com.au/finance/42732-fears-over-tinkler-s-coal-comeback-as-a-key-payment-goes-up-in-smoke">missed a payment deadline in June</a> and a closing payment deadline of 31 July, which was further extended by Peabody.
But the energy giant is now fed up and moving on, releasing a statement last week saying it has terminated the sale and purchase agreement with Bentley Resources and is now looking at alternatives for the sale of the mine.
The Wilkie Creek mine closed last year, axing 120 jobs. Peabody blamed the carbon tax and other cost increases for making it unprofitable as coal prices fell last year.
Tinkler had originally said the sale was worth $150 million, but that is understood to have included the funds necessary to bring the mine back into operation.
Peabody revealed the transaction was worth $70 million, with the addition of about $10 million for a rail contract debt.
Tinkler, who had made and lost his fortune through speculative plays in the coal industry, previously told The Australian the Wilkie Creek deal would be funded via his own equity and with support from investment bank Jefferies and its associated private equity firm Leucadia.
The move is the latest twist in Tinkler’s run of bad luck, after retail magnate <a href="https://www.smartcompany.com.au/finance/43396-gerry-harvey-calls-in-the-farm-on-nathan-tinkler" target="_blank">Gerry Harvey called in his debt</a> on Tinkler’s beloved thoroughbred horse farm, <a href="https://www.smartcompany.com.au/finance/wealth-management/42041-tinkler-finally-forced-to-sell-his-horse-racing-empire" target="_blank">Patinack Farm</a>.
The former Hunter Valley electrician confirmed in <a href="https://www.smartcompany.com.au/finance/wealth-management/42041-tinkler-finally-forced-to-sell-his-horse-racing-empire" target="_blank">May he would let go of the farm</a>, announcing to the media he would sell the asset to a consortium of local and overseas parties from the Middle East on a “walk in, walk out” basis for an undisclosed sum.
However, in June, Harvey Norman’s top boss revealed to Fairfax Tinkler had borrowed money from him to establish his presence in the racing industry and thus he had a caveat over the sale.
Tinkler had suggested the sale of Patinack Farm would fund the acquisition of Wilkie Creek.
Tinkler declined to comment when contacted by SmartCompany.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

krobb-aCrRNnPq6D

Time’s up for Tinkler as Peabody pulls comeback mine deal after missed payments

<html><body>
The housing market, in at least Sydney, Melbourne and Darwin, has seen growth recently, and it's causing a knock-on effect, according to the ANZ Research team, with developer confidence now picking up.
However, they also said that it would be the mining states that record the most pronounced growth rate for gross state product in the coming years.
All non-mining states saw growth rates strengthen in the second half of 2013.
Cherelle Murphy, Dyslan Eades, Tony Morris and Zoe McHugh, from ANZ Research, recently provided a market analysis that pointed to five factors lifting the growth rates and outlooks in all states and territories.
THE FIVE FACTORS
<ol>
<li>Improved global economic conditions 
</li>
<li>Low interest rates 
</li>
<li>The lower Australian dollar 
</li>
<li>Better business confidence 
</li>
<li>Better consumer confidence</li>
</ol>
"The mining states, which are on the cusp of an export expansion, will continue to record the strongest growth rates over the coming years in our view. But the non-mining states are expected to improve most compared to the growth rates recorded over the past few years," they recorded.
Interestingly, they also noted that the convergence in growth rates between the states is as expected.
"The mining states are coming off very strong economic performances as the resources construction pipeline dries up, while the non-mining states are steadily firming."
MINING STATES
Queensland: Major LNG projects still under construction, recording high activity levels.
Western Australia: More advanced through resources contruction work, seeing a more rapid slowdown.
Northern Territory: The exception, seeing a boost from INPEX Ichthys LNG Project.
NON-MINING STATES
New South Wales: The best performer, with trend unemployment falling to 10 month low (5.5%) in March. Business conditions have picked up.
Victoria, Tasmania: Sluggish but recently improving outlooks. More exposed to manufacturing, which continues to shrink. Business conditions have picked up.
South Australia: Sluggish but recently improving outlooks. More exposed to manufacturing, which continues to shrink.
Australian Capital Territory: Sturdy, but "will shortly bear the brunt of the not yet wholly known Commonwealth fiscal tightening."
All states, they noted, saw a sharp pick-up in housing market activity "related in part to the expansionary setting of monetary policy," they noted.
<blockquote>
FIVE FACTORS LIFTING GROWTH RATES
IMPROVED GLOBAL ECONOMIC CONDITIONS
LOW INTEREST RATES
THE LOWER AUSTRALIAN DOLLAR
BETTER BUSINESS CONFIDENCE
BETTER CONSUMER CONFIDENCE
</blockquote>
"Prices have bounced off their lows and have risen especially sharply in Sydney, Melbourne, and Darwin. This has translated to an improvement in developer confidence, with residential building approvals rising strongly, implying dwelling investment is likely to contribute solidly to growth going forward," they said.
Among all the non-mining dominated states and territories, the non-mining business investment is not forecasted to see any notable improvement until next year.
</body></html>

Mining

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Mining

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News