National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Joel Robinson

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 52-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 52-storey tower, which has just shy of 250 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<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/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Superannuation

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GUEST OBSERVATION
A key budget measure to change the age pension asset test has passed both houses of Parliament, despite concerns about the impact on pensioners raised by the Opposition, National Seniors and Industry Super.
But many such analyses have focused only on the income from investment assets rather than taking full account of retirees’ ability dip into their assets – like superannuation – to bolster their standard of living.
Superannuation - a nest egg or a gift to the next generation
In one example of a criticism that failed to show the whole picture, a National Seniors’ campaign poster<a href="https://nationalseniors.com.au/be-heard/retirement-income/2015-pension-cuts-campaign"> </a>against the cuts said that: a single woman living off $17,875 from $550,000 in savings will lose her part-pension. Yet, someone with no savings will receive a full pension of $22,365 plus concessions.
Little is made of the fact that the woman losing her pension can use the equity in her home to access a full pension via the Pension Loan Scheme, let alone that -– unlike the full pensioner -– she can spend some of her $550,000 in savings to supplement her standard of living.
Indeed, she is better off than most. Based on 2010 <a href="https://www.melbourneinstitute.com/hilda/" target="_blank">HILDA data</a>, only about a fifth of people aged 65-plus had non-home assets of over $500,000. Renters were even less likely to have such funds.
Similarly, analysis by Industry Super and Rice Warner projected the income levels of future retirees and compared these to what would be needed for a “comfortable’ retirement, as defined by Association of Superannuation Funds of Australia.
They found that, based on income from the age pension, superannuation, and wealth outside of superannuation, almost half of those retiring in 2055 are expected to have an income below the comfortable level and that the asset test changes will exacerbate the outcomes.
Their analysis also shows that as people accumulate more super, the asset test will affect a greater proportion of retirees and start impacting on middle-income Australians. This is unsurprising and exactly what one would expect from a maturing superannuation system. But again, little is said about how retirees have the option to use their financial assets to bolster their standard of living.
The implicit assumption seems to be that financial wealth will be passed on to children rather than be used to compensate for the loss of the pension and fund retirement (or health and care expenditures, since these are largely covered by the state). And this is in addition to passing on the family home.
The under-consumption puzzle
Recent <a href="https://www.cepar.edu.au/media/154967/age_pensioner_profiles_a_longitudinal_study_of_income__assets_and_decumulation.pdf" target="_blank">research</a> by the Centre of Excellence in Population Ageing Research confirms that most households receiving the age pension indeed choose not to spend down their financial assets and leave considerable bequests. It is part of a wider literature looking at what is referred to as the “under-consumption puzzle”.
The analysis is based on a sample of administrative data that tracked the assets and incomes of full and part age pensioners in the period between 1999 and 2007.
The results show that on average, younger and wealthier households tend to spend some of their financial wealth, but the majority see the financial assets grow, particularly couples and homeowners. Housing assets are usually preserved until very old ages unless a partner dies or goes into residential care, suggesting an element of downsizing.
Interestingly, the data shows that consumption is low when compared to the Association of Superannuation Funds of Australia benchmarks for a “modest” and “comfortable” retirement, even among the wealthier households in the sample.
One explanation is that pensioners may be self-insuring for investment and expenditure shocks, but the outcome of low spending profiles is that a large proportion of pensioner households leave significant assets as bequests.
Over 10% of single-person households in the sample exhausted 90% of the initial assets over the period, but the median pensioner that passed away during the study period was able to bequeath wealth (mainly financial) equivalent to 90% of the assets recorded at first observation.
Next up: a review of retirement income
The research highlights the extent to which pensioners rely on the age pension while preserving capital for their estate. In a system where the age pension is designed to be needs-based – not rights-based – and in the absence of inheritance tax, a strong asset test seems like an appropriate tax on such a practice.
The behavioural responses will be watched closely. A complete spend-down to gain pension eligibility is unlikely to be good value for money. Some might dip into their capital to compensate for the loss of their pension but the research suggests they will simply spend less. Others may invest in the family home, excluded from the asset test.
But one seldom quoted response is how the asset taper will affect risk. Those far from eligibility may seek out safer investments like annuities because the pension will no longer insure for losses in assets. Those who are on the steeper asset taper may seek riskier investments since the pension <a href="https://www.ceda.com.au/2015/05/Shrinking-the-Age-Pension-and-retirement-income">acts as a hedge</a> and compensates for losses (at $78 per $1k loss, compared to $39 previously).
Next on the agenda is a review of retirement income – a concession that the Greens extracted from the Government when agreeing to the asset test changes. Once the review does take place, let’s not forget to think about income as well as how people deplete their capital.
 
Rafal Chomik is Senior Research Fellow, ARC Centre of Excellence in Population Ageing Research, UNSW at UNSW Australia and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/rafal-chomik/41/4b9/263" target="_blank">here</a>.
Susan Thorp is Professor of Finance at University of Sydney and can be contacted <a href="https://sydney.edu.au/business/staff/susanth" target="_blank">here</a>.
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po-LsXgBTHBmX

Super, savings meant to fund retirement, not be bequeathed; academic

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<div class="cq-article-content-paras section">
Australia's largest pension fund, AustralianSuper, has expanded its overseas property investment.
It has secured a 49% stake in a $US1.32 billion ($1.7 billion) portfolio of Washington office buildings, controlled by Brookfield Property Partners.
Five of the assets are located in the East End, the premier submarket in the region. East End assets included 1400 K Street, 1200 K Street, the Victor Building, 650 Massachusetts Ave, and 799 9th Street. The remaining three assets include 1250 Connecticut Ave in the DC Central Business District; 77 K Street in NOMA (North of Massachusetts) and Bethesda Crescent in Bethesda, MD. 
AustralianSuper also teamed with Brookfield in April taking a 49 per cent stake in a $US605 million Boston office tower.
In March AustralianSuper invested $1.1 billion in a Hawaiian shopping centre, representing 25 per cent ownership.
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<div class="cq-article-content-paras section">
Earlier this year it secured a £200 million ($408 million) stake in the mixed-use <a href="/expert-insights/investing/australiansupers-400-million-king-cross-london-deal">King's Cross Central development in London</a>, beating off competition from overseas sovereign wealth funds from the Middle East and investment groups in the Far East.
AustralianSuper has $90 billion in assets under management, with around $7 billion in real estate.
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<div class="cq-article-content-paras section">
Jack McGougan, the fund's head of property, aims to hit 10 per cent over the next three to four years.
AustralianSuper has more than two million members.
In the latest deal AustralianSuper was represented by Jim Halliwell and Dan Thornton at Principal Real Estate Investors.
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jchancellor-FAypfDUnLy

AustralianSuper secures further USA office property acquisitions

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Where problems are perceived to exist with the SMSF sector, its important policy decisions are based on reality and hard facts, not ideology and hearsay.
The seemingly inexorable rise of self-managed funds is the most striking dynamic of Australia's superannuation system. More so because the rise of self-managed superannuation has been driven by the choice and determination of individuals rather than by government policy direction.
Self-managed funds are the only funds realising the vision set for Australia's superannuation system – to enable people to make themselves financially independent in retirement and avoid reliance on the age pension.
Generally SMSF members are achieving this goal while the members of the large industry and retail funds are not. The average balance in a self-managed fund account is over $500,000 compared with average account balances in industry and retail funds of less than $30,000.
The higher balances in SMSFs result from people maximising their concessional and non-concessional contributions and from the returns generated by their assets. Yet self-managed superannuation is not just for those paid higher. ATO statistics show that 66 per cent of SMSF members are on incomes of less than $80,000.
One important outcome of self-managed superannuation is enabling a generation of Australians to fund their retirement and old age within their own lifetime, instead of leaving a pension tab on the table for the next generation to pick up.
The fact that a million Australians, with more joining every day, are willing and capable of taking charge of their retirement savings, and doing a good job of it, is to be applauded.
However, it seems success breeds envy and draws criticism.
You'll hear it said that self-managed funds are driving up property values, distorting capital allocation, investing too conservatively, investing recklessly, straining the Budget, getting an unfair tax advantage and are costly to run.
We challenge each of these claims as they are often driven by ideology, or self-interest or are just plain wrong.
Take the claim that SMSFs are used to gain an unfair tax advantage.
Members of self-managed funds are subject to exactly the same tax rules as members of pooled super funds.
Critics are quick to point out the top 20% of income earners get the lion's share of super tax concessions but they don't always acknowledge that the top 20% also pay the lion's share of income tax. They get 57% of the tax concession but pay 64% of income tax. So, as you would expect, the value of their super tax break is proportionate to the amount of tax they pay, and actually a bit lower.
Or take the claim that super tax concessions are an unsustainable drain on the Budget.
Tax incentives to save for retirement are sensible policy because in the long run it's cheaper than paying out the age pension. If super tax incentives are reduced, less will be saved, fewer people will be financially independent and more will have to rely on a full or part taxpayer-funded pension.
Are SMSFs too costly to run? It's true that a relatively low account balance in a self-managed fund will cost more to administer than one held in a pooled super fund. But above around $100,000, costs are comparable or much lower. Two-thirds of self-managed funds have an operating expense ratio to assets of less than 1% and 40% have an expense ratio of less than 0.25%.
It’s not just about cost. The main reason people set up self-managed funds is to take control of their savings and more are doing so relatively early in their working lives. They make a commitment to save and as they build their assets, the relative cost of running their fund comes down. They are being helped by the emergence of a range of low-cost, online fund management service providers.
The real cost issue in superannuation is the fees charged by the large industry and retail pooled super funds, which are estimated to have consumed a quarter of these funds' returns in the past decade, a cost borne by their members.
Another common criticism of SMSFs is that they drive up property prices through highly leveraged investment. But no hard evidence is presented to back up this claim. Very low interest rates and an inadequate supply of new housing is likely fuelling property prices more. SMSFs actually put quite a small proportion of their assets into residential property – around 3.5% and this has been steady for five years. They put three times as much into commercial property, often linked to the owners' business.
Some people, on dubious advice, may be starting an SMSF to borrow to buy a residential property. Having one highly leveraged asset is clearly not a sensible strategy. To the extent that it is occurring it should be managed through better advice, credit restraint by lenders and regulation of property promoters.
In pondering the report of <a href="/guides/smsfs-to-rush-further-into-property-after-borrowing-ban-looms-following-murray-financial-system-inquiry">David Murray's Financial System Inquiry</a> and, in due course, the forthcoming tax white paper, the government should reflect on the singular success of self-managed funds in achieving the objectives of the superannuation system, appreciate the motivation of people who set them up and recognise the social and economic benefits they deliver.
Duncan Fairweather is executive director of the SMSF Owners' Alliance. Contact him <a href="https://www.smsfoa.org.au/contact" target="_blank">here</a>.
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Are SMSF’s causing property values to increase and receiving an unfair tax advantage? Duncan Fairweather

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GUEST OBSERVATION
Home ownership is an important protection against poverty in retirement, and it has been suggested superannuation should be accessible to fund a deposit to help people enter the property market.
Proponents of such a scheme point to the Canadian and New Zealand models, which allow withdrawals to purchase property. These comparisons need to be made carefully.
The Canadian retirement income model does not require mandatory superannuation, and HSBC reports that currently about half of Canadians do not contribute to a Registered Retirement Savings Plan. In the case of New Zealand, the NZ Kiwisaver is a relatively new retirement savings plan, and the default rate of contributions is 3% compared to 9.5% in Australia.
There are two reasons why withdrawing superannuation for a home deposit can be counterproductive.
Firstly, the property market is unregulated and the current housing boom is a direct result of competition for a scarce resource. If first home buyers are allowed to withdraw from superannuation funds, the effect would be to increase competition, thus driving prices up further. This was the effect of the first home stamp duty subsidies that were available over the last decade.
Secondly, accessing superannuation balances would negate the effect of compounding returns over the years to retirement. The average balance of an Australian aged 30 to 34 years in 2011-12 was A$27,772. The Canadian model allows a person and their partner to each withdraw C$25,000 from their superannuation, repaying it over 15 years. If adopted here, this would effectively wipe out the superannuation balance of each of them and would still be less than 10% of the median house price in the major Australian cities. Repayments would need to be in addition to mandatory contributions, and after mandatory contributions, HECS repayments and mortgage repayment, this could result in financial distress for borrowers.
Capital growth could give some protection from lower superannuation balances, but in the context of the family home, the gain would not be realised until the owner(s) downsized, as the usual pattern of home ownership is to sell and repurchase in the same market.
Despite widespread discussion about the proposal, government representatives have said they have “no plans” to change the rules on accessing super.
Lack of reform
The superannuation system is linked to both taxation and the pension system, but since 2007 it has been effectively quarantined from reform.
Contributions and investment earnings in a complying, taxed, superannuation fund are taxed at 15%. Withdrawals are also taxed at reduced rates, and since 2007 have been tax exempt for persons over the age of 60.
Conceptually superannuation is a form of long-term savings that displaces other forms of savings and, according to the ABS is the major financial investment held by most Australians. Our superannuation system is mandatory for employees, so employees earning more than A$450 per month have no choice as to whether they will save through superannuation.
The legal requirement is placed on the employer, but the economic reality is that superannuation is imposed on employees: it is reflected in the take-home pay of employees, notwithstanding the 1987 trade-off between award wages and superannuation.
In the case of a high income earner, the 15% tax rate on superannuation encourages savings into superannuation. However, low income earners who pay income tax rates less than 15% find that most of their savings are locked up in superannuation without any tax concessions. This affects their ability to save for a deposit on a house, or to have funds available in an emergency.
Superannuation and tax incentives
The Henry Review considered the problem of investment bias, although the government excluded tax exempt payments to persons over 60 from the terms of reference. It identified a clear incentive for a high income earner to put money into superannuation, displacing other investment, and a disincentive for low income earners.
Contribution caps limit the amount that can be contributed in superannuation that can subsequently be withdrawn tax free. However they are much higher than the SGC rate giving room for a high income earner to divert savings into superannuation: at the current mandated SGC level of 9.5%, a person would have to earn over A$300,000 pa to breach the non-concessional cap. A member can also contribute up to A$180,000 pa of non-concessional (tax paid) contributions. The tax benefit is that income earned by the superannuation fund on that investment is also taxed at 15% instead of the member’s marginal tax rate. In a self managed superannuation fund the member can then direct the investment strategy personally while taking advantage of the tax shelter.
Since 2013 contributions by very high income earners have been taxed at 30%, but the threshold of A$300,000 (including superannuation) ensures this only applies to a minority of taxpayers.
Balancing super and the pension
The balance between superannuation and the Age Pension is critical to funding retirement income. The mandatory superannuation system was proposed as a means of supplementing, not replacing the pension, and the 2015 Intergenerational Report predicts that by 2055 spending on the Age Pension will be at similar levels to now, but higher numbers of pensioners will be receiving a part pension. In 2011-2012 the average superannuation balance at retirement was A$197,000 for males and A$105,000 for women. Although it is increasing most retirees will at some stage need some support from the Age Pension.
Retirees can game the system by taking substantial tax exempt lump sums remaining eligible for higher rates of pension. When a superannuation fund goes into pension phase, the member is required to withdraw a minimum amount, based on the age of the retiree, but there is no cap. The Murray Report echoed the Henry Review when it again recommended the development of more comprehensive income based retirement products.
While superannuation balances generally are low, lump sum withdrawals can be ascribed to paying down debt and transition to retirement costs, and there is a growing concern that people approaching retirement take on additional debt in the expectation that they will be able to pay it off when they receive their superannuation.
The tax exempt status of superannuation pensions is a more pressing concern. When the member retires and a superannuation fund goes into pension phase both the income of the fund and the amount paid to the recipient are exempt from income tax. In the 2014 year this cost the budget bottom line A$16.3b in foregone revenue and was the 3rd highest tax expenditure. It is difficult to see how this tax expenditure can be maintained indefinitely.
Where to from here?
The fiscal risk inherent in the superannuation system is clear, as highlighted in the Intergenerational Report and the Murray Report.
The options for reform include equalising tax rates across the accumulation and pension phase of superannuation; imposing tax on superannuation accounts with a high balance; taxing contributions by applying a rebate to the member’s marginal rate of tax; lifetime caps on non-concessional contributions to superannuation funds;and making a regular income stream more attractive than lump sums.
The political issue is that governments are not willing to propose reforms that will impact on the current generation of retirees, and continue to quarantine the retirement system from serious review. Until we can openly talk about the lack of sustainability in the retirement income system, we will continue to impose a fiscal burden on future generations.
<img src="https://counter.theconversation.edu.au/content/38165/count.gif" alt="The Conversation" width="1" height="1">Helen Hodgson is associate professor at Curtin Law School, Curtin Business School at Curtin University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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We need to talk about super, not just first home buyers: Helen Hodgson

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The former Treasurer Peter Costello has noted the Howard government looked at opening up superannuation to home buyers in the 1990s, but decided against it.
It was "fair enough" for the Coalition to again have a look it, he said <a href="https://www.abc.net.au/7.30/content/2015/s4195057.htm" target="_blank">on the ABC's 7.30 program</a>.
"Well, look, this idea has been around for a long time …every generation thinks it invented the wheel."
"But I think they will come to the same conclusion as we did: that if you wanted to top up people's retirement, if you wanted to save the government money ... then you probably won't allow people to draw down on it for housing," he advised.
He said super had two purposes - increasing retirement savings and reducing pension costs - and the government should add give multiple objectives, "none of which it will actually do very well".
Warning against any changes to the superannuation scheme which would allow retirement savings to be used for the purchase of a first home, Peter Costello said "things may have changed, but I think they'll come to the same conclusion as we did".
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Peter Costello says saving superannuation for retirement was wisest outcome

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Paul Keating, the architect of Australia's universal superannuation scheme, has said it was a bad idea to allow first home buyers to dip into their super savings.
"Any meaningful housing deposit taken from the accumulated savings of younger savers would effectively eliminate or near eliminate the base from which the important compounding [of earnings] would otherwise occur," Keating wrote in a column for Fairfax Media.
The former prime minister Paul Keating also warned that if Australians could dip into their super savings at an early age, it would increase pressure on the federal government's aged care budget.
"The key to wealth accumulation in retirement savings is compound earnings," Keating noted days after the Treasurer Joe Hockey raised the prospect of allowing people to dip into their super.
Joe Hockey called for public debate on making super more "flexible" during people's lives.
In an opinion piece, Paul Keating accuses the Liberal Party of attacking Australia's super system for ideological reasons.
"The Liberals have always hated national superannuation for the broad workforce," Keating writes.
"Superannuation for them is fundamentally an ideological matter.
"Just like Medicare, the Liberals object to the universality of Medicare and they keep having a go at it, like the recent attempt to require a co-payment to doctors.
"They have now dropped off that because the going got too rough for them.
"So that having failed, they are back at it again at super – the other great universal scheme.
"But instead of saying they oppose it ideologically, and arguing their case intellectually, the Treasurer will try to reach the same outcome by masking his real intentions as a professed concern for homebuyers." 
"This idea is certainly not an innovation and is not responsible enough even to be considered a thought bubble."
He wrote that proposals floated by the Treasurer would breach the principle of "preservation" of superannuation accumulations and would destroy universal retirement savings at its core.
"Breaking what is now a national consensus on the principle of preservation, where savings cannot be drawn down till age 55, would amount to the wilful destruction of one of the best retirement systems in the world."
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Paul Keating says Joe Hockey's FHB super idea will compound ageing problems

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Home equity withdrawal has become increasingly popular over the past decade, despite the convulsions caused by the global financial crisis, a new peer reviewed study has found.
The study from the Australian Housing and Urban Research Institute (AHURI), Housing equity withdrawal: uses, risks, and barriers to alternative mechanisms in later life, sheds some interesting light on the way different people use their wealth in this critical period of their life.
In 2010, 18% of older home owners took some, or all, cash out of their housing equity. In 2001/2002 this sat at 13%.
The dominant form of home equity withdrawal for those under pension age is “in situ” equity borrowing (staying in the home and borrowing on the asset).
For those above pension age there is a shift towards downsizing or selling up.
It is noted that home owners making these decisions are more likely to suffer from material deprivation than those who do not touch their home equity, while those who withdraw equity are “also have more housing-oriented wealth profiles”.
“Unsurprisingly, income poor-housing asset-rich groups feature prominently among groups cashing in housing equity,” the report notes.
Mortgage equity withdrawal (MEW), however, is used by those who appear to have sounder economic positions than those downsizing or selling up.
MEW was found to most commonly be a technique used by people under pension age as they look to spend on a wide range of items, including holiday spending, home maintenance, car repairs, upgrades or children’s education costs.
Meanwhile, older home owners selling up, usually have little income or assets to fall back on, relying on housing-dominated portfolios with little other assets.
“They are also the least able to raise emergency funds among all the groups investigated, and so most likely to sell up when financial emergencies arise,” the study notes.
“While in situ equity release by adding to mortgages is common, particularly in the group approaching retirement, and associated with pressing spending needs, the typical in situ equity borrower has a relatively strong financial and employment context. These owners are becoming more indebted, but their borrowing is not reckless.”
If serious misfortune is, however, faced, then financial stress may not be far away.
Those downsizing or selling up were found to have most likely faced ill health, separation, divorce or bereavement prior to sale.
“One senses that amidst older downsizers and sellers, in situ MEW is no longer an option to cushion living standards in the face of adversity. Importantly, they appear to be options that older female, single person households are prone to fall back on.”
Selling up is, ultimately, seen by most as a last resort.
Risks the study notes you should be aware of:
<ul>
<li>Adverse life events can quickly alter your ability to repay any new borrowings.</li>
<li>Life events can force quick financial decisions to be made that are not well thought out, leaving an elevated risk of making a poor decision.</li>
<li>Transaction costs when downsizing can be substantial.</li>
<li>Social isolation can occur on the sale of your primary home.</li>
<li>Those selling up to re-enter the rental market may face a lack of security.</li>
</ul>
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Borrowing against house increasingly popular, but selling up a last resort

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Guest observation
Australian Senator Nick Xenophon continues his push to allow first-time home buyers to tap into their retirement savings to come up with a mere deposit for a home loan, and a life time of exorbitant fortnightly loan repayments.
What Senator Xenophon utterly fails to address is the reckless lending standards of the Australian banking system.
It is hard to find a banking system in this world willing to lend such large sums of debt to home buyers relative to the incomes they earn. Only instances were in countries such as Ireland prior to the global financial crisis.
Xenophon, in a recent interview on The Panel, said "in the order of $30,000 to $40,000 as a maximum," would be allowed for first-time home buyers to take out of their retirement funds to make a deposit for home.
Recent history suggests that every time Australian regulation allows or gives home buyers access to funds originally void, it has propelled property prices.
Clear examples are the various home owner grants and access to self-managed super funds to invest in property.
When property bubbles pop, housing becomes affordable again and first home buyers would need no artificial assistance beyond their means to purchase a property. Its as simple as that – and Senator Xenophon has no clue the level of risk he is trying to make young Australians take on.
The reason property prices are as high as they are in Australia is due to a chronic oversupply of debt. The abnormal willingness of Australian banks to lend large sums of debt to home buyers is clearly visible in the table below.
<img src="/images/2014/10/20/Picture%206.png" alt="">
Hence Australia is experiencing a credit-fuelled property bubble that Xenophon should address in parliament, rather than trying to prop up a bubble that makes Australia look utterly insane.
You might also want to read: 
<a href="/expert-insights/buying/exclusive-the-experts-on-super-access-for-first-home-buyers">Exclusive: The experts on super access for first home buyers</a>
Lindsay David is a co-founder of clean technology company GreenRigCo and a former strategy &amp; business development consultant. Lindsay holds an MBA from IMD Business School. He is the author of <a href="https://blog.australiaboomtobust.com/" target="_blank">Australia: Boom to Bust</a>.
 
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Nick Xenophon continues to inflate our property bubble

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Major superannuation funds will boost their holdings of direct property as the population ages, according to predictions by actuaries Rice Warner.
“With the consolidation of the market, there will be a shift to more illiquid investments as the very large funds will have significant, stable and predictable cash flows. Investments in infrastructure and property will grow,” the actuaries said in their report, Ageing and Capital Flows prepared for the Financial System Inquiry.
Investment may be directed towards Australian assets over the next decade, due to past under-investment and new opportunities, the report noted, but as domestic demand was satisfied superannuation funds would have to look offshore.
Rice Warner said fund managers and asset consultants on average expected direct property to return 7.9% over the next decade.
Listed property was expected to gain 8.2% over that time frame, while Australian shares and international shares were forecast to return 8.8% and 8.5% respectively.
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Superannuation funds to boost direct property holdings: Rice Warner

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Australians have greater trust and confidence in the superannuation system than they did a year ago but less than half expect to rely solely on superannuation savings in retirement, turning to cash and property to make up the anticipated shortfall, research has found.
The Financial Services Council/ING Direct Superannuation Sentiment Index, released last week, showed that attitudes had improved over the past year towards the performance of superannuation, as well as the stability and certainty that the compulsory savings system provided.
FSC chief executive John Brodgen said superannuation funds had achieved double digit returns for the second year in a row, which had helped to boost confidence. The index measure of sentiment towards fund performance improved by seven points to 121 in 2014.
However, 52% of those surveyed said superannuation savings alone would be insufficient to provide for their retirement and 55% had investments outside of superannuation.
One in five people with assets outside of superannuation had investment property, the research showed. One third had cash savings.
“What’s important is to understand that if you have got money in superannuation it’s not liquid. You do need some liquid savings,” Brodgen said.
Actuarial firm Rice Warner recently reported that Australians held more than $1.6 trillion in superannuation at June 2013. The actuaries projected that figure would increase in real terms to more than $5 trillion in 30 years.
In comparison, Australians hold around $2.3 trillion in assets outside of superannuation and that is predicted to grow to $4.6 trillion by mid-2028, according to Rice Warner’s report, Ageing and Capital Flows prepared for the Financial System Inquiry.
In dollar terms, investment property accounted for almost half of personal investments held now, at $1.1 trillion, Rice Warner’s report found. Cash and term deposits accounted for 33.8% of the value of personal investments, while directly held shares accounted for 11.1%.
Self-managed super funds have been boosting their allocations to direct property and Rice Warner predicts they will continue to be interested in the asset class.
However, the Rice Warner report suggests the proportion of overall personal investments held in direct property will fall by 4% by 2028.
“Growth will occur due to superannuation becoming relatively less attractive for high income earners and lower interest rates in the short to medium term. However, this will be somewhat offset by investors gearing property less and yields being under pressure due to property prices and costs rising faster than rents,” the report says.
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