Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.

In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.

Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.

Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.

[smartcode_project:default project_id=342 project_image_fid=357506]

The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.

Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.

A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.

[smartcode_project:default project_id=342 project_image_fid=357508]

The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.

This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.

[smartcode_project:default project_id=342 project_image_fid=364553]

Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.

Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.

Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.

[smartcode_project_cta:default project_id=342]

Joel Robinson

Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

[smartcode_project:default project_id=136535 project_image_fid=361030]

Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

[smartcode_project:default project_id=136535 project_image_fid=288412]

Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

[smartcode_project_cta:default project_id=136535]

Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

[smartcode_project:default project_id=135546 project_image_fid=363510]

Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363512]

Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363514]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

[smartcode_project:default project_id=135546 project_image_fid=363511]

Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

[smartcode_project_cta:default project_id=135546]

Red & Co unveils amenity-rich Como development in Varsity Lakes

Gold Coast developer&nbsp;<a href="https://www.apartments.com.au/developers/big-projects">Big Projects</a> has secured approval for its second Mermaid Beach project.

The developer, currently selling <a href="https://www.apartments.com.au/new-apartments/the-frederick-mermaid-beach-2265-gold-coast-highway-mermaid-beach-qld-4218">The Frederick in Nobby Beach</a>, has secured approval for its next project just 1.5 kilomnetres up the road.

The new development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/glenelg-residences-2462-2472-gold-coast-highway-mermaid-beach-qld-4218">Glenelg Residences</a>, has been designed by BDA Architecture and&nbsp;will have just under 100 apartments across an 11-storey building&nbsp;at 2462–2472 Gold Coast Highway, on the corner of Glenelg Avenue just under 300m from the future Mermaid Beach Light Rail stop.

The apartments, a mix of two- and three-bedrooms, will sit above a retail-focused ground plane and under extensive rooftop resident amenities.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screen%20Shot%202024-06-11%20at%209.55.04%20am.png?VersionId=z6NV4izeuvhBSSVlY6vK6TPO1LxrFeaG" />

BDA said in its planning submission that the project is intended to support the area’s transition toward higher-density, mixed-use living. “This project offers the opportunity to generate appropriate higher-intensity development within the future Light Rail corridor of <a href="https://www.apartments.com.au/developments/mermaid-beach-qld-4218">Mermaid Beach</a>,” the submission noted.

At ground level, Glenelg Residences will include eight retail tenancies designed to activate the street frontage, complemented by a basement bar offering an additional hospitality element. Above, residents will have access to a rooftop amenity deck featuring an infinity pool, hot and cold plunge spas, day beds, and barbecue facilities.

The architectural approach adopts a restrained material palette of brick, textured concrete, and integrated landscaping, with cantilevered concrete frames and cascading planting intended to soften the built form. BDA described the design as aiming to create “a memorable sculptural mid-rise mixed-use building” that responds to both its coastal setting and urban context.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202024-06-11%20at%209.55.45%20am.png?VersionId=cpjIVBqcT_sujmo2UMWkVyLcQ7WGJHaQ" />

The approval comes as the City of Gold Coast continues to plan for significant population growth, with regional targets requiring more than 100,000 new high-density dwellings by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-36" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-17" dir="auto">
Big Projects, led by Matthew and John Barrett, is part of a growing cohort of developers that deliver construction in-house, providing a high level of confidence to prospective purchasers.
</section>

[smartcode_project_cta:default project_id=150260]

Big Projects secures approval for Glenelg Residences in Mermaid Beach

Sherpa Group is ramping up its investment in the southern Gold Coast by lodging a development application for <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, a new $350 million project in Coolangatta.

The move comes after the group’s $27 million acquisition of the 2,029 sqm site on the corner of Griffith and Warner Street, last year.

They will develop 194 apartments across a 26-storey tower, which will become Sherpa’s largest project to date.

Viveré will be the next chapter in the Flourish story, following closely behind Amargo, Oasis, and the Avenues in Palm Beach, as well as Symphony in Brisbane, all designed to deliver affordable housing in lifestyle-rich locations, giving locals a real chance to secure a residence close to the beachfront.

The HAL Architect-designed project will offer a diverse range of residences, from one-, two, and three- bedroom apartments to the premium Canopy range to luxury penthouses.

<img alt="Vivere" data-entity-type="file" data-entity-uuid="c85f5a7e-a22f-4745-8def-400adb3c0b35" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-15%20at%209.53.43%E2%80%AFAM.png?VersionId=OY.chur3BPExn1exQ2q8clHqWnW_CaBi" />

“The Gold Coast is undergoing a period of immense growth, with more people drawn to the incredible 
lifestyle that’s available, leading to strong growth in property prices,” said Christie Leet, founder of Sherpa 
Group.

“Our goal at Sherpa is to ensure locals are not priced out of the market in prime locations, which is why we 
created the Flourish collection.

“Flourish Vivere will form the next chapter in our portfolio, and we are so excited to be lodging the DA, marking our first project in Coolangatta.”

A signature of the Flourish developments is the communal rooftop. Flourish Vivere will showcase a private resident’s lounge, outdoor dining with barbecues and pizza ovens, heated pool, fully-equipped gym, and a wellness centre with sauna and steam room.

<img alt="Vivere" data-entity-type="file" data-entity-uuid="c09372cc-aae6-4458-af2e-f291bd19a5e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-15%20at%209.53.49%E2%80%AFAM.png?VersionId=Sc_RLXl5jiff.tnadogXjQJ_WIpDjf3p" />

The project is strategically located to offer a walkable lifestyle, with the Strand shopping centre, cafes, restaurants, shops and the beach, all just a short stroll away.

“We have meticulously planned Vivere to build on the Flourish legacy, creating a truly special project,”&nbsp;Leet added.

“Wellness, lifestyle and community are at the forefront of every decision we make, and that has not 
changed for Vivere.”

With the DA now lodged with the Gold Coast City Council, Sherpa has moved quickly to secure LPS Group as the builder, offering buyers a level of certainty that is rarely seen in today’s market.

Sherpa has delivered 16 residential projects over the past seven years with a pipeline of $1 billion, with more under construction.

Sherpa takes Flourish brand to Coolangatta, lays plans for Flourish Vivere 

Profit Growth

<html><body>
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.
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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>
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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>
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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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