Upon analysis of the Reserve Bank of Australia (RBA) February board meeting, St George expects the RBA will leave interest rates steady for the remainder of 2018, as reported in their latest Interest Rate Outlook.

The statement was broadly positive and indicates there is increasing confidence in the Australian economy from the RBA, especially in comparison to the end of 2017. St George believes the factors that will determine the RBA’s next move will be related to receptiveness of inflation and wage pressures to strength of the labour market.

Some highlights included:

• Continued positivity for business investment, noting that “prospects for private non-mining investment were more positive than they had been for some time”.
• With regards to the labour market, the board noted that “uncertainty remained about how employers would respond as spare capacity in the labour market diminished. Indeed, it was possible that ongoing strength in the demand for labour might result in wage growth picking up by more than anticipated, both in Australia and abroad”.
•  Increased optimism in the worldwide economy as the 2017 global GDP growth had exceeded predictions of most analysts. The RBA board minutes document that global growth could “continue to surprise on the upside, given the synchronised nature of the current upturn”.

One of the concerns raised was weak growth in household income, which St George concur that household consumption could be a key risk for domestic growth.

While concerns were noted, St George is satisfied the meeting was one with an overall positive outlook. 

Construction group Mirvac proposes to build a 32-storey, 75,339 sqm commercial tower at 80 Ann Street, reports brisbanedevelopment.com.

The development application shows plans for the building to connect Turbot and Ann Streets via new cross block linkages, and will occupy one entire city block. Currently on the is an 8-storey low rise housing the Primary Industries building, which would be demolished in the plans progress.

The site fronting Ann Street is the former location of the famous Brisbane Fruit Market which commenced in 1906, selling around 15,000 cases of fruit each week. The new development is expected to pay homage to the former site, with the proposal including freestanding market pods located within a heritage-inspired retail market section.

• The main features within the proposal include:75,339 sqm of commercial office space
• 1,098 sqm of retail space on Turbot Street level, Ann Street level and Level 1
• 124 car spaces, including four motorcycle places
•  4,856 sqm (88% of the site area) of outdoor area at ground level
• Possible innovation hub for small start-up businesses, health and wellness centre, a public laneway known as “Market Lane” housing ten retail tenancies along a narrow section that will include food and beverage outlets
• End of trip facility at Turbot Street level and Level 1, including 514 bike spaces, 58 showers, bike washing area and 1164 lockers
•  Preservation of the masonry heritage building on Turbot Street, in agreement with the existing demolition approval for the site
• Landscaped terraces, public plaza at level 1, retail spaces and co-working / multi-mode spaces
• Considerable public space at ground level, including new pedestrian connections between Ann Street and Turbot Street
•  Vehicle access and arrival area off Turbot Street
• Commercial office tower which includes three-storey atriums and interconnecting floors

The site has been under contract since December 2016 and comes with conditions that if Mirvac cannot gain development approval or attain a building tenant, they can terminate. The Singaporean developer who is selling the site, Wee Hur told the Australian Financial Review that another condition of the contract is if Mirvac can achieve more than 55,000 sqm of office space, a bonus land payment will be awarded.

The site is rumoured to be on Suncorp’s shortlist for their new national headquarters.

This Mirvac development application has been submitted in place of one originally submitted by Wee Hur for a 918 room student accommodation tower over 38 storeys. 

Brisbane is set to be the first Australian brewery site for Scottish beer giant, BrewDog. The company is investing $30 million in a purpose-built facility overlooking the Brisbane River, reports brisbanetimes.com.au.

The new facility located on Metroplex Avenue in Murarrie is estimated to create 150 jobs in the first five years, increasing to 235 jobs in the next ten. The 11,000 square metre greenfield property will house a 50 hectolitre brewhouse and canning facility, restaurant and tap room. There will be a tasting room where tours will be conducted.

Brisbane Marketing and the state government successfully lured the multi-national operation after they announced they were deciding between a site in either Brisbane or Newcastle in NSW. 

It is expected that possible financial incentives were offered to the company through the $65 million Advance Queensland Industry Attraction Fund. State Development Minister Cameron Dick would not elaborate on this, adding it was common government practice to provide a range of incentives to attract business.

BrewDog Australian Director Zarah says the quality of craft beer produced in Brisbane is high.

"We think there's a way to go, but we're looking forward to working with the breweries that are here, and some of the ones that are up-and-coming, to really make sure Brisbane is on that map for great craft beer."

The company supports the industry by working with other independent craft breweries.

Construction for the brewery is due to start in the second half of this year, with the first beer produced in early 2019.

Hannah Schuhmann says love it or loathe it, Brisbane is cementing itself on the national beer map, already home to over 20 breweries, which is great for tourism. 

The Howard Smith Wharves (HSW) development has announced an exciting proposal for a 280 square metre overwater champagne bar and music venue, reports Brisbanedevelopment.com.

The octagonal bar will be stationed directly under the Story Bridge, expanding out onto the river on a new public boardwalk. The bar itself will be situated inside in the middle of the building, opening out onto a substantial outdoor lounge area on the pier boardwalk.

The five-star, 164 room Art Series Hotel is expected to be completed in 2019 which will consist of conference facilities, roof-top pool an four retail ground-level tenancies.

Last month the food and beverage outlets for HSW were announced and they included: “Fresh Greek” restaurant by restaurateur/chef Jonathan Barthelmess (Sydney); Hong Kong Chinese style eatery by restaurateur Andrew Baturo who is also co-owner of The Gresham (Brisbane); “Izakaya”, a Japanese restaurant by Matt Yazbek which is an extension of Sydney and Melbourne locations; a craft brewery; a bakery; and a coffee roaster.

The HSW site is 3.43 hectares in site, which will include 2.7 hectares of public space when complete, and will connect New Farm Riverwalk and the CBD. In addition, the project will be a new site for such public events and festivals and markets, include an underground carpark for 359 vehicles, and include 1500 square metres on exhibition space.  The estimated value of the project is $110 million. 

Staggering job growth of 398,400 new jobs in 2017 has broken annual records with the best figure since records begun in 1978, reports St George Economics.

300,500 of the jobs were full-time, and the remaining 97,900 was part-time.

November saw a 61,600 gain, with December figures ending the year with an additional 37,800 jobs. With regards to the states, job growth in December was as follows; NSW (14,300), WA (6,100), SA (1,300), TAS (600). 

While St George have doubts the current average rate of 30,000+ jobs per month can be maintained, they report the growth will be enough to gradually reduce the unemployment rate in time.

The unemployment rate slightly increased from 5.4% in November, to 5.5% in December 2017, with workplace participating increasing from 65.5% in November, to 65.7% in December. The report indicates the thriving conditions are encouraging potential workers to seek employment. 

Hannah Schuhmann says these figures are encouraging and show strength in employment, in particular the strong rise in full-time jobs. Queensland will now, over the next 5 years ride a wave of an EXTRA 50,000 jobs being added by some of the new projects being completed.