Fresh off completing Pienza Neutral Bay, developer <a href="https://www.apartments.com.au/developers/central-element">Central Element</a> is preparing its next move in the coveted Lower North Shore suburb.&nbsp;

Central Element (CE) has lodged plans for an eight-storey apartment building at <a href="https://www.apartments.com.au/new-apartments/54-64-barry-street-neutral-bay-nsw-2089">54–64 Barry Street</a>, a 1,659 sqm site just south of Military Road and the Neutral Bay town centre.

The $52 million development will involve the demolition of four detached homes across four lots to deliver 45 apartments, including eight affordable housing units to be managed by Bridge Housing. The mix will comprise six one-bedroom apartments, 24 two-beds, and 15 three-beds. The apartments will sit above three basement levels with 62 car parking spaces and 50 bicycle spaces.

<a href="https://www.apartments.com.au/architects/mhn-design-union">MHN Design Union</a> (MHNDU) has returned as architect following its work on Pienza, again shaping a mid-rise form with a clear street presence. The design features a lower four-storey podium element that responds to surrounding context, with upper levels recessed to reduce perceived bulk. Communal open space is proposed both at ground level and on the rooftop, the latter including an outdoor kitchen and swimming pool.

“The building has been designed with a lower four-storey element and with building materials commensurate with the character of the area,” Beam Planning noted in its submission to the North Sydney Council.

<img alt="Barry Street, Neutral Bay Nsw 2089" data-entity-type="file" data-entity-uuid="3a28ab3a-b8ba-4476-81cd-e4a8bb84f3a7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Barry-Street-Neutral-Bay-1327x742.png?VersionId=hlgvxszAWXIHgHtdR5HiwIKiSli2lLZV" />

Bridge Housing will manage the affordable units for a period of 15 years, as required under the Housing SEPP’s incentive provisions.

MHNDU’s design report further highlights the site's strategic location just 250 metres from key bus stops and 1.3 kilometres from North Sydney CBD, positioning it for transit-accessible housing supply. In their planning justification, the design team emphasised the site’s compatibility with emerging local character and scale.

Central Element has a solid apartment pipeline spread all over Sydney. They recently completed&nbsp;Pienza, 37 apartments just 500 metres away from the new project, and are currently building Ethos Chatswood, Ballamac House in Coogee, and Bianca on the harbour in Drummoyne.

They have plans for future projects in Mosman, Bondi Beach, Greenwich, Lavender Bay, along with a tower on the edge of Hyde Park.

Joel Robinson

First look: Central Element unveils second Neutral Bay apartment project

Real estate investment fund Wentworth Wentworth Equities is soon to launch a "Los Angeles-inspired" residential, leisure and lifestyle precinct in Brisbane’s Hamilton riverside ahead of the predicted Olympic-led population explosion for the city.

Drawing its style inspiration and name from Los Angeles’ renowned The Grove, <a href="https://www.apartments.com.au/new-apartments/hamilton-grove-19-hercules-street-hamilton-qld-4007">Hamilton Grove</a> will feature three residential towers and a vibrant street-level public precinct with curated luxury lifestyle, retail and dining offerings.

The first of the three towers, to launch in March 2026, will comprise 61 apartments, in the same building as a premium hotel.<img alt="Hamilton Grove" data-entity-type="file" data-entity-uuid="d227fe61-8392-45b7-b386-9133f29a249f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-19%20at%209.10.56%E2%80%AFAM.png?VersionId=HTCV35HZ4h84jQCmHwhsdIPN0ctO5d7Z" />

Wentworth Equities Executive Chairman Sameh Ibrahim said the precinct will be unique in its appeal to both residents and the wider community.

“Hamilton is already one of Brisbane’s most sought-after riverside suburbs and for good reason,” Ibrahim said.

“Where else in the world can you walk out of your front door and have everything you could possibly need at your fingertips? The city is just around the corner, the airport is only ten minutes away, you have the river and green spaces right there and premium retail and dining on your doorstep."

Wentworth Equities acquired the 7637 sqm Hercules St site in 2014, when Ibrahim said he had a "very clear vision" for the precinct, but ultimately it wasn't the right time to develop. He said Hamilton was still very much an "emerging precinct."

“Since then, Hamilton and surrounding suburbs like Ascot and Albion have significantly grown and matured into a precinct that aligns with our vision for Hamilton Grove. Brisbane as a whole has so much to offer in the way of lifestyle appeal, but as it stands it is so widespread – you go to Howard Smith Wharves for fine dining, you go to James Street for shopping, you go to West End to walk along the river – but what if you could go to Hamilton Grove for everything?

“Our vision is a precinct that brings together the best of Brisbane into one central space abundant with culture, class and culinary experience – a place that a lucky few will get to call home, but the rest of Brisbane still get to explore and experience at their leisure.”

<img alt="Hamilton Grove" data-entity-type="file" data-entity-uuid="46550990-8aeb-44d4-bb47-150cdca96529" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-19%20at%209.10.50%E2%80%AFAM.png?VersionId=bmCkApPKY_Bj3z02Q8vI7Kyo_caJXOnv" />

Experienced civil engineering contractor Mainland Civil has been appointed to commence early works for the project, adding Hamilton Grove to their extensive portfolio where it will join other iconic Brisbane developments including Queens Wharf, 300 George Street, Infinity Tower and 1 William Street.

Construction on Tower One is scheduled to commence in early 2026 with completion expected in late 2028.

Fast Facts 
 
• Three residential towers and a vibrant street-level public precinct with curated luxury lifestyle, retail and dining offerings. 
• Construction on Tower One is expected to commence in Quarter One 2026, with completion expected in late 2028. 
• 7,637 square metre site at 19 Hercules St, Hamilton (part of Economic Development Queensland’s 304 hectare Northshore Hamilton Priority Development Area). 
• 61 waterfront residences and skyhomes in the first tower, ranging from two to five bedrooms. 
• Hamiton Grove will be officially launched in March 2026.

"LA-inspired" Hamilton Grove to launch on Brisbane riverside

There’s a quiet patch of <a href="https://www.apartments.com.au/developments/hawthorn-vic-3122">Hawthorn</a>, between the bustle of Glenferrie Road and the curve of the Yarra, that rarely sees change, and even more rarely, new apartments. But that’s exactly where <a href="https://www.apartments.com.au/developers/pomeroy-pacific-quattro-corp">PQD</a> is planting Kooyongkoot: a deliberate, 18-residence answer to the question of what downsizers actually want.

“This is something this pocket of Hawthorn has never seen before,” says Fil Gacesa, head of sales at PQD. “<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a> will deliver just 18 large-scale apartments in the heart of Hawthorn. It is the true definition of resort-style living.”

<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/59D7VxzltmM?si=1iCzRD7FRneKryfv" title="YouTube video player" width="560"></iframe>

That scale is central to the story. It’s what allows for two dedicated lift cores, short corridors, and a generous lightcourt that draws natural ventilation and sunlight into every residence. It’s also what makes room for the sort of amenity usually confined to high-density towers: a fully equipped wellness centre with infrared and traditional saunas, yoga and pilates studio, cold therapy shower, and treatment room. There’s a golf simulator, car and dog wash stations, and extensive storage too, not bolted on, but baked in from the start.

But more than the checklist, it’s the design intent that carries weight. “This project has been many years in the making,” says Mark Pomeroy, Director of PQD. “Not just in planning, but in listening, to what our buyers and the local community are looking for”.

[smartcode_project:default project_id=102717 project_image_fid=355289]

That listening shows up in the materials, oak floors, natural stone, V-ZUG appliances, and in how space is handled. Penthouses feature private rooftop terraces with pools. Terraces and garden residences embrace outdoor connection. Inside, the layouts skew large and open, geared for hosting, not just housing.

Architecturally, <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>’s approach is grounded. There’s no reaching for spectacle here. Instead, the building offers a sculptural calm, anchored by landscaping from Eckersley Garden Architecture.&nbsp;

“We wanted to create spaces that feel expansive, serene, and meaningfully connected to daily life,” said founding partner Chris Stribley elsewhere.

[smartcode_project:default project_id=102717 project_image_fid=355304]

That sentiment, calm, connection, echoes in the location itself. Kooyongkoot sits just a short stroll from Central Gardens, Fairview Park, and the Rivoli Cinema. Tram lines and schools are close, but the street is tucked, quiet, and leaf-lined.&nbsp;

“Residents of Kooyongkoot will be a short stroll from Fairview Park, Central Gardens, and the Glenferrie Road retail strip," Gacesa notes, "but you're also cocooned in this peaceful pocket behind extensive landscaping by Eckersley Garden Architecture.”

Kooyongkoot is set for completion in late 2026.

[smartcode_project_cta:default project_id=102717]

Staff Writer

The project that said no to compromise: Inside Kooyongkoot, Hawthorn

When long-time Ivanhoe locals Graeme and Catherine, decided it was time to downsize, they weren’t necessarily in a rush.&nbsp;

Like many in their stage of life, they had started thinking about apartment living, but anticipated making the shift in two to three years.

That timeline changed when they visited <a href="https://www.urban.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe">Candela</a>, a new boutique development by <a href="https://www.urban.com.au/developers/salter-brothers">Salter Brothers</a>. The project ticked all the boxes they were looking for: location, quality design, and long-term lifestyle benefits, which prompted them to bring their decision forward.

“It was the right place at the right time,” they said. “We knew immediately it ticked all the boxes, and we didn’t want to wait.”

[smartcode_project:default project_id=342 project_image_fid=358855]

Their decision to downsize was driven by a combination of practical needs and lifestyle considerations. Their existing home, while much loved, had become increasingly difficult to maintain. It spanned multiple levels, included extensive front and back gardens, and was starting to show the wear that comes with age.&nbsp;

They were looking for a more manageable lifestyle, one with less upkeep and more freedom. A brand-new apartment with no maintenance requirements and the ability to simply “lock up and leave” gave them peace of mind and a greater sense of control over their future.

Financially, the purchase made sense as well. The available stamp duty savings, strong price-to-value offering, and timing of the settlement suited their plans, making the transition smoother and more cost-effective. The apartment's design and inclusions further supported their choice.

[smartcode_project:default project_id=342 project_image_fid=357493]

The layout was both functional and flexible: three bedrooms, a butler’s pantry, a separate laundry, and a large open-plan living area. It gave them the freedom to host a family, accommodate guests, or set up a home office. The expansive balcony and elevated views added to the appeal, providing a sense of openness and connection to the outdoors.

“It just had a really good flow,” Catherine noted, something they found lacking in many other apartments they’d considered, particularly in the established market.

Candela’s boutique scale was another deciding factor. With a smaller number of residences and a top-floor penthouse position, the couple felt the development offered the privacy and space they were looking for, without feeling isolated.

“We liked that it wasn’t a huge development. It felt well-balanced, modern but still with a sense of community, not overwhelming,” they said.

[smartcode_project:default project_id=342 project_image_fid=357508]

Equally important was the ability to remain in Ivanhoe, a suburb they know well and have deep roots in. After 46 years in the area, proximity to local parks, shops, and familiar faces mattered just as much as the apartment itself.

“We didn’t want to give up the community we’ve known for decades. Candela allowed us to upgrade our lifestyle while staying in the place we call home.”

With a Walk Score of 90, the village location supports a convenient, connected lifestyle. <a href="https://www.apartments.com.au/developments/ivanhoe-vic-3079">Ivanhoe</a> Station is just a eight-minute walk away, and the neighbourhood offers access to parks, cafes, restaurants, and schools along Upper Heidelberg Road, all within easy reach.

Beyond the apartment, the couple also saw value in the broader vision for Candela, one that integrates residential living with public spaces and local amenities.&nbsp;

The development introduces 58 new apartments as well as a mix of commercial and social spaces that integrate contemporary architecture with the suburb’s existing character.&nbsp;

At ground level, residents will find a charming café and a lifestyle wellness centre, perfect for unwinding and rejuvenating. Meanwhile, the rooftop garden offers a stunning vantage point for residents to enjoy breathtaking sunsets, host gatherings, or enjoy barbecues with family and friends. It's not just a place to live; it's a vibrant community where every moment is an opportunity to connect and create lasting memories.

[smartcode_project_cta:default project_id=342]

Why Ivanhoe locals are choosing to downsize to Candela

Mark and Roy Makari are expanding their presence in Sydney’s South West with a second major proposal for Leppington, this time envisioning a 900-dwelling mixed-use development just 850 metres from their previously lodged tower trio on Fifth Avenue.

Project management and construction management firm Creative Vision filed the plans for the&nbsp;multi-building project at <a href="https://www.apartments.com.au/new-apartments/230-rickard-road-leppington-nsw-2179">230 Rickard Road, Leppington</a>. The proposal seeks to establish a new focal point for the precinct through a high-density, transit-oriented development supported by diverse land uses.

According to the Scoping Report prepared for the Department of Planning, the scheme includes around 900 apartments across multiple towers, including 135 dwellings designated for affordable housing. A mix of market and subsidised apartments will be supported by ground-level activation through retail and office space, a childcare centre, and a hotel, forming a comprehensive urban precinct.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="34797362-f3dc-4d84-8235-2657fc5f3bde" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Plan.png?VersionId=Uzckrz9tUpDQl5lX1_WMhjnv16bsr8wG" />

The Design Report by <a href="https://www.apartments.com.au/architects/studiosc-0">Studio SC</a> notes that the project “intends to deliver a high-quality, high-density built form that supports the vision for the Leppington Town Centre, integrating mixed-use outcomes and public domain upgrades.” The development is expected to be delivered in stages, although a precise timeline is yet to be confirmed.

The project will be assessed through a future State Significant Development Application, with the Scoping Report indicating the team will seek design excellence via a competitive process or through an expert design review panel. Early massing diagrams suggest a series of mid- to high-rise buildings framing a central landscaped spine, with emphasis on pedestrian permeability and public space.

The planning documentation flags a strong sustainability agenda, stating that the development will “respond to the urban heat island effect, incorporate water sensitive urban design, and prioritise active transport”.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="369d7b54-1279-4cde-88ec-dcb215594414" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Podium_1.png?VersionId=QArL7B2kkLt63vl5xvL0FNV_ardAlez4" />

The proposal follows in the footsteps of the Makaris’ nearby Fifth Avenue site, where they’ve submitted plans for three towers comprising nearly 500 apartments, with 10 per cent dedicated to affordable housing. That project features commercial podiums, a childcare centre, and a new public park that would occupy more than a third of the site.

Both developments are situated within walking distance of Leppington Train Station and fall under strategic precinct plans promoting higher density housing. The town centre is undergoing substantial transformation, driven by state government planning reforms aimed at fast-tracking housing delivery.

Together, the two projects represent a combined ambition of nearly 1,400 new homes across just under two kilometres of central Leppington.

First look: 900-home mixed-use precinct planned for Leppington

Profit Growth

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The RBA have announced they made a $3.8bn profit this year, a stark contrast to the $900 million they reported as losses last year.
It represents a turnaround of $4.7 billion turnaround.
RBA governor Philip Lowe began his statement saying the global economic expansion continued over the past year.
He said unemployment rates have declined further, inflation rates remain low, and financial conditions are still expansionary.
"This improvement in the global environment is helping the Australian economy," he said.
"Economic growth has gradually picked up and inflation is moving closer to the Reserve Bank’s target."
Governor Philip Lowe's salary total remuneration (including superannuation) rose to $1.02 million, or up 10 per cent from $930,000 in 2017, but back in line with his predecessor Glenn Stevens' remuneration.
The $3.8bn profits represent a $4.7 billion turnaround from last year's $900 million loss.
The RBA made a net gain of $3 billion from securities and foreign exchange compared to last year's loss of $1.8 billion.
Net interest income was down 10 percent to $900 million as the RBA continued to hold interest rates throughout the year.
The Reserve fund only dished out around half of the $1.3 billion they gave to the Commonwealth Government last year. This year they only released $669 million.
The Reserve Bank's earnings come from two sources, underlying earnings, which comprises net interest and fee income and less operating costs, and valuation gains or losses.
Net interest income arises because the bank earns interest on almost all of its assets.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/21/earnings1.jpg" target="_blank">to enlarge.</a>
<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/2018/9/21/earnings1.jpg" alt="">
The RBA suggested valuation gains and losses result from fluctuations in the value of the Reserve Bank's assets because of movements in exchange rates or in yields on securities it holds.
"A depreciation of the Australian dollar or a decline in interest rates results in valuation gains," the RBA noted.
"Conversely, an appreciation of the Australian dollar or a rise in market yields leads to valuation losses.
"These gains and losses are realised only when the underlying asset is sold or matures.
"Valuation gains and losses are volatile, as both exchange rates and market interest rates fluctuate in wide ranges over time.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/21/losses.jpg" target="_blank">to enlarge.</a>
<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/2018/9/21/losses.jpg" alt="">
 
The RBA said they measure their property at fair value.
Their properties are formally valued annually by an independent valuer. They recently sold their Collins Street office, their Melbourne HQ, for $160 million after only expecting around $100 million.
 
 
 
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jrobinson-rf4aSBido9

RBA announces $3.8bn profits 

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<div>
Commercial property agency JLL's Australian arm have seen revenue rise for the eighth consecutive year.
Revenues were up 17 per cent in the 2017 calendar year on 2016, with profits 18 per cent in the past year.
The Australian Financial Review said the result was led by contributions from JLL's facilities management business.
Facilities management revenues rose 67 per cent year-on-year after the agency won large government outsourcing contracts.
</div>
<div>Its chief executive of JLL Australia, Stephen Conry, said the company's whole of Australian government contract win covering 34 government entities and its Victorian government contract win covering 276 properties were behind the large increase in revenue from facilities management.</div>
<div> </div>
<div>The agency booked a 13 per cent lift in its property management fees.</div>
<div>
JLL's investment sales business had revenues up year-on-year by 10 per cent
The commercial real estate agency booked a record full year revenue of $US7.9 billion in its global operations.
</div>
<div>
In its Asia Pacific business, revenue rose 20 per cent to $US1.6 billion and fee revenue was up 14 per cent to $US1.2 billion.
The increase in 2017 fee revenue was led by Greater China, Australia, India and Japan, the company said. 
Meanwhile US listed real estate agency CBRE recorded an all-time high for both revenue and earnings in 2017, driven by occupier outsourcing and leasing fee revenue.
<div>
Global revenue hit $US14.2 billion ($18 billion), an increase of nine per cent, with CBRE's Pacific business reporting a record revenue result in the fourth quarter after a nine per cent increase in revenue compared with the previous corresponding quarter.
CBRE's president and chief executive for the Pacific, Ray Pittman said the performance was driven by brokerage and professional services teams.
</div>
<div>
However, APAC sales revenue fell seven per cent compared with the fourth quarter of 2016, when sales had surged 42 per cent.
</div>
</div>
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j.ballantyne1990-6AQqhLzZaK

JLL Australia see revenues rise for eighth year

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<h1>
<a href="https://theconversation.com/profiles/saul-eslake-665" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.16px;">Saul Eslake</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a>
</h1>
Do higher profits necessarily lead to higher wages? The answer, as borne out by the data below, might surprise you. In fact, wages growth is more likely to arise from smart policy settings that directly boost economic and employment growth.
Australian wages growth is, as Reserve Bank governor Philip Lowe <a href="https://www.rba.gov.au/speeches/2017/sp-gov-2017-09-21">recently noted</a>, “the slowest since at least the mid-1960s”. Treasurer Scott Morrison recently <a href="https://sjm.ministers.treasury.gov.au/media-release/085-2017/" target="_blank">asserted</a> that a sustained increase in profitability is a prerequisite for a pick-up in wages growth.
But there is little data to support the idea that wages and profits are connected.
<img src="https://cdn.theconversation.com/files/188524/width754/file-20171003-3782-1ws0esq.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
There does not appear to be any “leading” relationship between growth in pre-tax company profits and growth in wages, even if the mining sector (which accounts for a good deal of the fluctuations in profit growth over the past dozen years) is excluded.
<img src="https://cdn.theconversation.com/files/188527/width754/file-20171003-3124-1ta5b97.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
Some relationship between profit margins (that is, profits as a proportion of sales revenue) and wages might have existed in the past. However, that appears to have broken down in the years since the peak of the commodities boom, in 2011-12, as you can see in the following chart.
Since then, aggregate profit margins have risen to levels not seen since the early 2000s, but wages growth has continued to slow.
<img src="https://cdn.theconversation.com/files/188529/width754/file-20171003-12163-1qrzjgd.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
Rather than being a precursor to faster growth in wages, the growth in Australian company profits in recent years appears to be part of a broader global pattern: the share of aggregate income accruing to capital is rising while that accruing to labour is falling.
<h2>In line with global trends</h2>
Researchers from the International Monetary Fund (IMF) have provided a plausible set of explanations for these developments in their <a href="https://www.imf.org/en/Publications/WEO/Issues/2017/09/19/%7E/media/Files/Publications/WEO/2017/October/pdf/analytical-chapters/c2.ashx" target="_blank">latest World Economic Outlook</a>. They contend that “macroeconomic factors such as labour market slack, inflation expectations and trend productivity growth can account for the bulk of the variation in nominal wage growth … in recent years”.
Echoing <a href="https://www.rba.gov.au/publications/smp/2017/feb/box-b-underemployment-and-labour-market-spare-capacity" target="_blank">a point frequently made by the Reserve Bank of Australia (RBA)</a>, the IMF researchers note: “True labour market slack may … be larger than suggested by headline unemployment rates.” This is because of the growth in the number of workers working fewer hours than they are willing and able to work.
<hr>
Read more: <a href="https://theconversation.com/explainer-how-wage-growth-contributes-to-the-economy-75625" target="_blank">Explainer: how wage growth contributes to the economy</a>
<hr>
The researchers find that even in economies where unemployment rates are now below their pre-GFC averages, “involuntary part-time employment … appears to be weighing on wages growth”, alongside “slower-moving drivers … such as automation, diminished medium-term growth expectations and the growing importance of the services sector”.
The IMF researchers conclude that, overall, “wage growth … may continue to remain subdued until involuntary part-time employment diminishes or trend productivity growth picks up”.
All of this suggests that policy measures that seek, in the first instance, to (further) lift corporate profits will not enhance the prospects of a pick-up in wages growth in Australia.
<h2>Preferential taxation not the answer</h2>
As I’ve argued <a href="https://theconversation.com/why-small-business-tax-cuts-arent-likely-to-boost-jobs-and-growth-72658" target="_blank">previously</a>, there’s absolutely no evidence that preferentially taxing small businesses will do anything to boost innovation, productivity, investment or employment. Hence, there’s no reason to think it will do anything to lift wages growth.
Nor is there any <a href="https://www.propertyobserver.com.au/https://economics.mit.edu/files/7666" target="_blank">compelling empirical evidence</a> to suggest that across-the-board tax cuts for larger companies will have any significant impact on employment and hence on wages.
Rather, an acceleration in wages growth is more likely to come from policies that directly boost economic and employment growth – such as increased spending on (well-chosen) infrastructure projects – and that boost productivity growth (including well-targeted education and training initiatives).
A more controversial proposition may be that measures designed to reverse, in part, the shifts in the shares of national income accruing to labour and capital over the past decade or so could also help accelerate wages growth.
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/53kAt/5/" frameborder="0" width="100%" height="400"></iframe>
Partly because real wages have grown more slowly than labour productivity since the turn of the century (as you can see in the previous chart), the “profits share” of Australian national income is well above its long-run average. The “wages share” is close to a record low.
<img src="https://cdn.theconversation.com/files/188692/width754/file-20171003-31723-6uw84z.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
<h2>Historical precedent</h2>
In some respects, the present situation is the obverse of the “<a href="https://www.rba.gov.au/publications/rdp/1988/pdf/rdp8806.pdf" target="_blank">real wage overhang</a>” that emerged in the second half of the 1970s, whereby real wages surged much faster than productivity.
One of the main purposes of the Hawke government’s <a href="https://theconversation.com/australian-politics-explainer-the-prices-and-incomes-accord-75622" target="_blank">Prices and Incomes Accord</a> was to secure the ACTU’s acceptance that wages would grow more slowly than productivity (and fall in real terms) to eliminate this “overhang” and reduce unemployment.
<hr>
Read more: <a href="https://theconversation.com/australian-politics-explainer-the-prices-and-incomes-accord-75622" target="_blank">Australian politics explainer: the Prices and Incomes Accord</a>
<hr>
Hence, it could be argued that what is required now is a period during which real wages grow faster than productivity to eliminate what could be termed a “real wage underhang”. That would be difficult to achieve via an accord-type process given the changes in how the labour market works since the 1980s.
And it would be important to ensure that real wages did not grow at a pace relative to productivity growth that led to higher unemployment.
<img src="https://counter.theconversation.com/content/83819/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">The government could consider using its submissions to the Fair Work Commission’s annual determinations of the minimum wage, and its approach to wage negotiations with its own employees, as a way of nudging wages growth upwards.
<a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">Saul Eslake</a>, Vice-Chancellor’s Fellow, <a href="https://theconversation.com/institutions/university-of-tasmania-888" target="_blank">University of Tasmania</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/is-faster-profit-growth-essential-for-a-pick-up-in-wages-growth-83819" target="_blank">original article</a>.
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Is faster profit growth essential before a pickup in wages growth? Saul Eslake

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Nine out of 10 people who sold a property during the December 2016 quarter made a profit according to the latest CoreLogic Pain &amp; Gain report.
Based on house and unit resales, $18.8 billion in profit was realised over the quarter; the median profit for resales was $172,000.
In contrast, the total gross losses realised over the quarter was recorded at $467 million with a median gross loss of $33,000 per sale.
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Nationally, this equates to 8.9% of the dwellings that resold over the final quarter of 2016 transacted for less than their previous purchase price, and moderately lower than the 9.3% over the September 2016 quarter. However, when compared with the December 2015 quarter, the proportion of loss-making sales has increased from 8.2% of all resales at a loss. 
Report author Cameron Kusher said Capital city housing markets continued to record a lower proportion of loss-making resales than regional areas of the country.
“Regional area trends are showing that homes reselling at a loss are lower in coastal and lifestyle markets, while in the markets linked to the resources sector, losses remain very high although they have eased a little over the quarter.”
An area breakdown (see below) identifying the profits and losses performance differences over the December 2016 quarter delivers some interesting observations. 
As an example, in Sydney’s inner north, the council area of Willoughby recorded the highest median loss over quarter at $803,000, while close neighbour Hunters Hill recorded the highest profit in the city at $113,000.  In Melbourne, Nillumbik experienced the highest median loss at $379,000 while the Booroondara profited by $653,750.
The below table provides a snapshot (more in attached report) of the areas to experience the greatest median losses, lowest median losses, greatest median profits &amp; lowest median profits.
<a href="https://www.corelogic.com.au/resources/img/media-releases/2017-03-31--Pain_Gain-1.jpg" target="_parent">CLICK TO ENLARGE</a>
<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/2017/04/20/2017-03-31--Pain_Gain-1.jpg" width="700" height="425">
The CoreLogic Pain &amp; Gain data shows that across the country, 7.6% of houses and 12.3% of units that resold over the December 2016 quarter transacted for less than their previous purchase price.  In the capital cities, the proportion of houses resold at a loss over the quarter (5.4%) were almost half that of units (10.0%) while across the regional markets, the proportion of house resales at a loss (7.6%) was much lower than the 17.8% of units resold at a loss.
Mr Kusher said Sydney was the only region where the proportion of units resold at a loss over the quarter was actually lower than houses. 
"On the other hand, in Melbourne, Brisbane and the ACT the proportion of units resold at a loss over the quarter was more than five times greater than houses resold at a loss.” 
“A retrospective look at the data indicates that it has been extremely rare for resales of houses to record a higher proportion of loss than units.  This is reflective of the fact that house values have typically increased at a more rapid pace than units.” 
“In a market like Sydney, where more units have been built than houses over the past two decades, and the gap between house and unit prices is substantial, the trends have changed recently with units proving less likely to resell at a loss than houses.
“This is likely linked to the fact that there is a wide gap between house and unit prices in the city and for many units are now the only option for home purchase,” Mr Kusher said.
<img src="https://www.corelogic.com.au/resources/img/media-releases/2017-03-31--Pain_Gain-2.jpg" alt="2017-03-31--Pain_Gain-2" width="800" height="528">
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SEQ property sale loss felt especially at Somerset

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<div>Mortgage Choice Limited has announced a 10.7 percent growth in cash profit, rising to $20.5 million, in FY16.</div>
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<div>They recorded their best ever settlement result, with settlements totalling $12.2 billion, up 6.3 percent on FY15.</div>
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<div>Their loan book was up 4.4 percent on FY15, pushing through the $50 billion milestone, growing to $51.7 billion.</div>
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<div>Mortgage Choice chief executive officer John Flavell said the latest annual financial results were a testament to the ongoing strength of the business.</div>
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<div>“Throughout FY16 the Group performed very well, achieving (or exceeding) all of the business objectives we set for ourselves,” he said.   “Better yet, our impressive business results were recorded against a backdrop of considerable economic and market volatility.</div>
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<div>"Complexity in the market has provided a real opportunity for our business to deliver increased value to our customers through the provision of help, guidance and advice.</div>
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<div>John said he is confident about the future direction of Mortgage Choice and believes FY17 will be a strong year for the Business.</div>
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<div>  “In FY16, we laid the foundations for a very successful future,” he said.   “We set ourselves some aggressive business targets and we met, if not exceeded, all of them.</div>
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<div>"Heading into FY17, we will step up this momentum.</div>
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<div>"We have identified the four key priorities for the business over the next 12 months, and we will deliver on these whilst maintaining a laser-like focus on our 2020 vision.   
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Mortgage Choice delivers 10.7 percent growth in cash profit 

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Estate agent John McGrath is stepping away from the daily operations of the recently listed McGrath group.
The company has revealed the company’s current joint chief executive Cameron Judson will take Mr McGrath’s role.
It came as McGrath Limited (ASX: MEA) announced a 12 percent revenue increase in their first year as a listed company.
Their revenue increased to $137 million, which was in line with their guidance range of $136 million to $140 million.
The chairman David Mackay, who oversaw the listing last year, will retire from the board and be replaced by Cass O’Connor, who has been on the board for 15 years.
Elizabeth Crouch is the board's latest appointment. Elizabeth is currently Deputy Chancellor of Macquarie University and on the Board of the Macquarie University Hospital and the Museum of Applied Arts and Sciences. She chairs the Audit and Risk committees of the City of Sydney and the NSW Government’s Health Infrastructure and is a Non-Executive Director of SGS Economics and Planning. Elizabeth has served as Chair of Railcorp, Non-Executive Director of Chandler Macleod for 4 years and CEO of the Housing Industry Association for 9 years. 
John McGrath, who remains an executive director, said his new job would focus on growing the company’s “brand, growth and innovation”.
“As the company grows rapidly it’s important to focus my attention and efforts on the business that I add most value,” Mr McGrath said.
The McGrath group continued to grow sales, agent numbers, offices and market share in FY16.
Their number of property sales rose 11 percent to 12,232, with the value of property sales seeing a 14 percent increase to $13.2 billion.
Agent numbers increased by 77, rising to 642 across the country, and the number of McGrath offices increased by 20 to 87.
<a href="https://www.propertyobserver.com.au/images/2016/08/24/McGrath%20finances.jpg" target="_blank">Click here to enlarge</a>
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Joint-CEO and founder John McGrath was pleased with the business model strength despite the difficult market.
“Notwithstanding the challenging market environment for the real estate industry, given the low volume of listings and sales in the second half, the strength of our business model saw us deliver a solid result," he said.
“We have successfully grown into new and emerging markets by opening our first four franchise offices in Victoria, and another eight in Queensland.
McGrath Estate Agents were made the exclusive selling agency for the Property NSW's Millers Point sell-off in FY16.
“Property NSW’s appointment of McGrath Estate Agents as the exclusive selling agent for two phases of the Millers Point program was a key milestone for the company.
"Our ability to achieve a 100 percent clearance rate with 58 properties sold for $179.9 million is a testament to the capabilities of our people and the strength of our offering.
John also spoke of the appointment of joint-CEO Cameron Judson, whom he had shared the chief executive position with since July.
“Our team has been further strengthened with the appointment of Cameron Judson as Joint-CEO on 14 July 2016.
"He brings a wealth of professional services industry experience and new perspectives to McGrath.”
Judson spoke on the strategy and outlook, suggesting despite the short term challenging market conditions, the long term fundamentals of the real estate industry remain attractive.
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John McGrath announces 12 percent revenue increase in first year as veteran steps aside from listed company leadership

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Rental property portal Rent.com.au have seen their revenue increase by 118 percent in the year to June 30.
Their revenue was $748,000, up from $343,000 in FY15, which showed the demand for rental properties has continued to escalate in the increasingly expensive property market.
<a href="/images/2016/08/24/Rent.com.au%20FY16.jpg" target="_blank">Click here to enlarge</a>
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They've also hired a new CEO, Greg Bader, who replaced departing chief executive and founder, Mark Woschnak.
Greg Bader said that in today’s market renters wanted a wide range of rental properties from which to choose, from both agents and non-agents.
"We accept that housing affordability is a real issue in Australia, but we are also seeing a growing number of people choosing to rent for practical and logical reasons," he said.
“We now have a very significant share of all rental property listings available on our site and have developed a consistently large and unique renter audience as a result.
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"This is core to the positioning of RENT as the destination of choice for renters, however we’re also moving towards meeting the other needs of renters in a commercially sustainable way.
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The listed company has achieved 651,000 average monthly unique visitors this year, up 157 percent from last year and exceeding the target of 500,000 unique visitors per month.
In the past year, 2700 agents and 13,000 private landlords have signed up to advertise on the site.
The company will now begin to commercialise on the website having reached critical mass.
It will offer more products to address renter concerns such as RentCheck which helps landlords check a renter's standing.
 
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Rent.com.au announce new CEO as revenue rises 118 percent in FY16

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Charter Hall Group have announced its full year results for the 12 months to June 30 2016, showing a statutory profit after tax of $215.2 million.
Profits were up $97.3 million from FY15, with operating earnings of $124.7 million, up 26.2 percent.
The Group's FUM increased $3.9 billion, the equivalent to 29 percent, to $17.5 billion, reflecting a 15.9 percent annual growth rate since June 2010.
The continued growth was driven by $2.3 billion of net acquisitions, $1.1 billion of revaulations and $500 million of development capex.
The high quality and diversified $17.5 billion portfolio comprises 296 properties, leased to 2,550 tenants delivering $1.3 billion of gross rental income. 
"Growth of 29 percent in FUM to $17.5 billion and 10.5 percent OEPS growth reflects the Group's strategy focusing on accessing, deploying, managing and investing capital," said Charter Halls' Group CEO and managing director David Harrison.
The Group's property investments increased by $154 million to $1.1 billion, generating an earnings yield of 7.4 percent per annum.
<a href="/images/2016/08/23/Charter%20Hall%20Split.jpg" target="_blank">Click here to enlarge</a>
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The total portfolio occupancy remained strong at 98.6 percent and the weighted average lease expiry stable at 8.8 years.
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“We are proud to highlight that the Group’s Property Investments have consistently outperformed their respective benchmarks," Harrison said.
The total property return from our Property Investments over five years of 16.0% p.a. has outperformed the MSCI/IPD Unlisted Wholesale Pooled Property Funds Index of 9.7% p.a. over the same period.”. 
<a href="/images/2016/08/23/Charter%20hall%20financial%20jpeg.jpg" target="_blank">Click here to enlarge </a>
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Financial highlights:
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  Statutory profit after tax of $215.2 million, up $97.3 million 
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  Operating earnings of $124.7 million, up 26.2% 
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  Operating earnings per security of 30.4 cents, up 10.5% 
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  Distribution per security of 26.9 cents, up 11.2% 
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  Net Tangible Assets per security of $3.04, up 10.1% Operational performance: 
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  Access: Gross equity inflows of $1.5 billion from diversified equity sources. 
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  Deploy: Completed $3.7 billion of property transactions. $3.0 billion in acquisitions, $0.7 billion in non-core divestments.
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  Manage: 29% growth in funds under management (FUM) to $17.5 billion. Completed 545 leasing transactions.
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  Invest: Net $56 million invested alongside our capital partners. 6.46% WACR and 7.9% discount rate. Property Investment earnings growth of 26.4%.
 
 
 
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Charter Hall achieves 29% FUM growth to $17.5 billion

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Scentre Group today announced its results for the six months to 30 June 2016, with Funds From Operations (FFO) of $617 million.
The profit represents 11.61 cents per security and distribution of 10.65 cents per security, keeping them on track to deliver its full year forecast FFO growth.
The full year forecast FFO growth was around 3 percent, with forecast FFO of 23.25 cents per security and forecast distribution of 21.3 cents per security.
“We are pleased with these half year results which reflect the benefits of focussing on the highest quality shopping centres in Australia and New Zealand," said Scentre Group CEO Peter Allen.
"Our portfolio is well positioned to continue to deliver long term growth”.
Comparable net property income increase 2.6 percent for the six months, driven primarily by contracted rent increases.
“Our shopping centres continue to experience strong demand from retailers, demonstrating the benefits of the high sales productivity across the portfolio” Peter said. 
Scentre Group announced earlier this month that it had purchased the David Jones Market Street building in Sydney's CBD with Cbus Property.
When completed, Scentre Group will own the redeveloped retail site, adding an additional 10,00 sqm of luxury retail space.
“Having completed the acquisition of the adjacent David Jones building, we have the unique opportunity to expand Westfield Sydney, which has the highest specialty sales productivity in Australia, reinforcing the precinct as Sydney’s luxury retail destination” Peter said.
During the half, the Group commenced $605 million of developments including projects at Westfield Chermside, Queensland, Westfield North Lakes, Queensland and Westfield Whitford City, Western Australia. 
The Group owns and operates interests in 40 Westfield shopping centres, including 16 of the top 25 performing centres in Australia, and has assets under management of $43.3 billion.  
Scentre Group has a strong balance sheet with gearing of 33.7% at 30 June 2016. 
 
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Scentre Group announce six month profit of $617 million

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Melbourne based residential developer AVJennings continue to make profits in the housing boom, showing a 19 percent profit increase in FY16.
The company stayed away from the over-supplied CBD high-rise markets and saw their net profit rise to $40.9 million.
The profits came due to its increased housing lot sales, with chief executive Peter Summers suggesting traditional housing had the steadiest outlook.
"Our markets, that is the traditional housing markets, remain under-supplied."
"The customer base is traditional, stable, domestically based and in need of housing, rather than speculators." 
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The growing revenue hit $421.9 million, an increase of 32.7 percent, and the full-year dividend payout rose by 25 percent to 5¢.
Below are AVJennings FY16 results
<a href="/images/2016/08/19/AVJennings%20FY16%20results.jpg" target="_blank">Click here to enlarge</a>
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AVJennings pipeline plans are extensive, with developments planned all over Australia and one in New Zealand.
Summer acknowledged the widespread concerns of oversupply, but suggested that it's concentrated on the CBD apartment markets, and there's a large under-supply of housing in the wider market.
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"We've been saying for some years that we believe this type of product of apartment construction is the wrong type of product for many Australians and it has created too much product in certain markets."
"Our strategy has been to focus on a stable base of traditional buyers.
"We haven't chased what see as potentially more risky markets for short term gain."
AVJennings offshore buyers only represent one percent of their purchasers.
 
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