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GUEST OBSERVER
The recently released environmental effects statement and transportation impact assessment for the proposed West Gate Tunnel project in Melbourne’s western and inner suburbs have once again sparked debate about the future of mobility in Australian cities, and the ability of large road projects to provide it.
In the environmental effects statement, the assumptions behind the models on the need for the tunnel might paint a gloomier picture of the future than is warranted. Many are not inevitable and are, in fact, within the control of the state government and Melburnians.
Why we should be wary of the forecasts
The figures in the transport impact assessment are calculated using a traditional four-step model. 
Given the purpose to which the model has been put in this case, it is unsurprising that it predicts traffic chaos across metropolitan Melbourne in 2031. Also unsurprisingly, the modelling indicates that the West Gate Tunnel would ease this chaos. 
Comparing the “build” and “no-build” scenarios, both set in 2031, 28,000 fewer vehicles per day would use the congested West Gate Bridge if the tunnel is built. As it is designed to, the modelling presents a clear argument to build the tunnel.
There are numerous reasons to be suspicious of the modelled outcomes. For one, these models are notoriously unreliable. 
Research shows that half of road project forecasts are incorrect by more than plus or minus 20% after one year of operation. And for toll roads like the proposed West Gate Tunnel, the average observed error is 23% fewer vehicles using the road than forecast. 
Second, the extra 28,000 vehicles on the West Gate Bridge in the no-build case are not real cars; they are artefacts of the transport network assumptions. These assumptions feed into the models to create the build and no-build scenarios. 
The models predict a 48% increase in road traffic in 2031 and a 100% increase in public transport traffic. The transport impact assessment is relatively silent on the implications of this assumption about public transport patronage.
Cases built on pessimism bias
Studies indicate this 48% increase might be subject to “pessimism bias” – that is, a tendency to imagine the worst. A 2015 analysis found that in 70% of 35 transportation projects in Denmark and England actual travel demand did not reach the end-of-period forecast levels when the projects were not constructed.
Pessimism bias is a product of how the models understand historical road construction and traffic growth. It is likely present in the West Gate Tunnel proposal – but this cannot be measured as yet. 
The 2031 build and no-build cases both incorporate an extensive program of road network construction and expansion apart from the tunnel, which is standard practice. This includes 100 kilometres of additional motorway lanes in the CityLink and Western Ring Road widening projects. Both roads feed into the tunnel. 
VicRoads’ outer suburban arterial roads program includes an additional 700km of arterial roads, which feed into Melbourne’s greater road network. If these roads are not all built then the forecast will be incorrect.
Also, the annual traffic growth rates used in the models are primarily based on historical observation. From 1996 to 2016, traffic volumes across Melbourne grew by 2.6% annually. The model assumes this growth will continue. 
This period of growth includes the construction of the EastLink and Peninsula Link toll roads and several outer suburban arterial roads. Because the construction of roads promotes new traffic, these programs partly explain the growth from 1996 to 2016. 
Consider the alternatives
The “need” for the tunnel exists only because of the presence of extra road and motorway capacity in the modelling assumptions – and because of the absence of any estimates of the effect on car travel of improved public transport passenger and freight transport alternatives in Melbourne’s rapidly expanding western suburbs.
The package of roads that will generate traffic growth on the West Gate Bridge and in the proposed tunnel have not yet been built, and there is nothing inevitable about any of it. Melbourne’s East-West Link and Perth’s Roe 8 both demonstrate that public resistance is not necessarily futile. 
The government and Melburnians have a choice about how we build our cities. We can perpetuate the “need” for roads by continuing to build banal infrastructure, such as large suburban arterials or excessive car parking. This would create the conditions for roads like the West Gate Tunnel – or we could insist on something better.
<a href="https://theconversation.com/profiles/nathan-pittman-382813" target="_blank">Nathan Pittman</a> is PhD Candidate in Transportation Planning, University of Melbourne.
<a href="https://theconversation.com/profiles/john-stone-226753" target="_blank">John Stone</a> is Senior Lecturer in Transport Planning, University of Melbourne.
<a href="https://theconversation.com/profiles/sophie-sturup-383657" target="_blank">Sophie Sturup</a> is Lecturer in Urban Planning and Design, Xi'an Jiaotong Liverpool University.
All are authors for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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Impending traffic chaos? Beware the problematic West Gate Tunnel forecasts

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The mystery buyer of former Australian cricket captain Michael Clarke and wife Kyly's redundant Berrima retreat has emerged as Wahroonga based Chinese manufacturer Jie Chen.
The reputed $5.25 million price is still yet to be disclosed, but its understood the Round Hill sale price included Kyly's interior furnishings.
Clarke has been holidaying with Kyly, a lifestyle blogger, and their daughter Kelsey Lee in the Maldives earlier this month having previously signed off on the deal that was two years in the making.
The couple were originally asking $6.5 million, however after sitting idle on the market, the price was reduced to $5 million through Drew Lindsay selling agent Drew Lindsay, who'd sold it three times before.
The Clarke's paid $3.1 million for the sprawling 93 hectare estate in 2012, with a new swimming pool added during their five year ownership.
The cricket lovers haven, complete with a picket fenced oval installed by former financial high flyer Bill Ireland, was a popular weekender rental at a pricey $1,200 a night through www.contemporaryhotels.com.
Kyly added her interior designer professional touches and undertaking some renovations inside the four bedroom Richard Rowe designed homestead.
The idea behind the 2012 purchase was that Clarke would set up his long-awaited cricket academy, round the corner from Bowral, the home of Australia's most renowned cricketer Don Bradman. 
Locals are pondering whether the acquisition suggests a rising Chinese interest in the Southern Highlands market.
It's only the third sale of note to Asian interests in the area.
The breakthrough entry was in 2011 when "Jin" Shangjin Lin, a graduate of Macquarie University and managing director of property development giant Aqualand, paid $7.15 million for a 40 hectare estate in Mittagong.
Lin went onto buy the $52 million Villa Igiea, the 1920s Vaucluse waterfront that has been rented over the years by the likes of Angelina Jolie and Brad Pit and Beyonce and Jay Z.
Since then there have been two major forays into the Southern Highlands.
Early 2014 the iconic Bowral tourism property Milton Park was sold to Chinese property trust interests for around $20 million.
The Edwardian-style 1910 guesthouse in heritage gardens was established by the retailing Hordern family.
A few months later The Chase at Sutton Forest was bought for $5.8 million by Malaysian horse racing tycoon Teo Ah Khing, who founded the Chinese Horse Club where he is also chairman.
The historic trophy estate on 40 hectares features a five bedroom 1880s homestead with a reception hall, formal sitting and dining room and billiard room.
Khing then paid $4.85 million for the 33 hectare winery and wedding venue across Oldbury Road.
Bowral's modern Duck Crossing estate sold for around $4.15 million to the Liu family last year.
Set on 6245 sqm, each of the homes four bedrooms have ensuites, there's a media room, grand office and two gourmet kitchens.
The luxury homes furnishings have Ralph Lauren fabrics and English oak floors.
The Centennial Road property was listed through Unique Estates agent Phillip Dwyer and Drew Lindsay at Drew Lindsay Real Estate. 
The property comes with a detached self-contained one-bedroom guest cottage and pavilion with spa and steam room in landscaped grounds, adjoining Craigieburn golf course.
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Chinese continue to target Southern Highland estates

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Crawling along in low gear, Melbourne drivers often comfort themselves with the thought that at least they’re not in Sydney, where “everyone knows” traffic delays are longer and even more frustrating. Sorry, Melburnians, but you’re kidding yourselves.
New analysis for a forthcoming report by the Grattan Institute debunks several myths about traffic congestion in Australia’s biggest cities – including the conventional wisdom that Sydney-siders are doing it tougher.
Sydney may have <a href="">340,000 more people</a> and an enormous harbour constricting movements from one part of the city to another, but Melbourne is pretty much on a par when it comes to congestion.
<h2>Twin pictures of congestion</h2>
Chart 1 shows the delay that an average CBD commuter endures in Sydney and Melbourne, compared to how long it would take to do the trip in the early hours of the morning when the only constraints are traffic lights and speed limits.
<a href="https://cdn.theconversation.com/files/175777/area14mp/file-20170627-21898-1mga1nj.PNG"><img src="https://cdn.theconversation.com/files/175777/width754/file-20170627-21898-1mga1nj.PNG" alt=""></a> Data for more than 300 routes travelling to and from the CBD were collected 25 times each day over about 12 weeks between March and June 2017. Grattan analysis of Google Maps data, Author provided
In the morning peak, an average Melbourne CBD commuting trip takes close to 70% longer than it would in the middle of the night. The 11-kilometre trip from Brighton takes an extra 13 minutes, and the 30km trip from Caroline Springs an extra 20 minutes. The 9km from Coburg take an extra 14 minutes, while the 17km from Doncaster take an extra 20 minutes.
It’s similar in Sydney. The average morning commute to the CBD takes 50-60% longer than it would in the middle of the night. The 40km trip from Liverpool takes an extra 32 minutes, while a trip of similar length from Blacktown typically takes an extra 20. Driving the 17km from Manly takes an extra 21 minutes, while the 7km trip from the airport takes an extra 12.
It doesn’t take quite as long to get home from the city. In the afternoon peak, an average trip takes up to 60% longer than it would in the middle of the night. But it’s harder to avoid the delay: peak “hour” is much longer in the evening than in the morning. Any time from 3.30pm to 6pm you can expect your trip to take at least 40% longer.
We found these patterns by analysing Google Maps estimates of travel times for more than 300 routes across Sydney and Melbourne. The data include 25 travel-time estimates every day for several months. This includes commutes to the CBD and other employment centres, important freight routes, shorter trips within the inner, middle and outer rings, and cross-city trips.
<h2>So which drivers have the worst run?</h2>
Here’s a finding that might surprise drivers who have to crawl over the West Gate Bridge to get to and from work: the worst place to commute to Melbourne’s CBD is not from the rapidly growing western suburbs, but from the northeastern suburbs. That probably won’t surprise you if your commute includes the Eastern Freeway.
Chart 2 shows the typical delay for commuters coming to Melbourne’s CBD from the southeast, northeast, north, south and west. The northeast is the stand-out worst performer, as those who live in Doncaster, Heidelberg and beyond know all too well. Interestingly, people commuting from the west face much more modest delays.
<a href="https://cdn.theconversation.com/files/175779/area14mp/file-20170627-29117-4py4yq.PNG"><img src="https://cdn.theconversation.com/files/175779/width754/file-20170627-29117-4py4yq.PNG" alt=""></a> Grattan analysis of Google Maps data, Author provided
Sydney does not have a single region where residents can so clearly expect bad city commutes. That doesn’t mean there’s no congestion. And neither does it mean that it’s just people going to the CBD who are caught up in the commuting tangle. It’s also all the freight vehicles, tradespeople, students going to school or uni, people going to appointments in business hours, and others going elsewhere but still caught up in the snarl of traffic.
Chart 3 shows a selection of trips that don’t include the Sydney CBD but do have delays, with the size of delay depending on the direction of the trip.
<a href="https://cdn.theconversation.com/files/176325/area14mp/file-20170630-26970-1r9bzya.PNG"><img src="https://cdn.theconversation.com/files/176325/width754/file-20170630-26970-1r9bzya.PNG" alt=""></a>
In Sydney, the delay depends more on the direction of the trip, than what side of the city commuters are driving from. Grattan analysis of Google Maps data, Author provided
The how-long-does-it-take-you-to-get-to-work story involves more than roads. One-quarter of Sydney commuters and 18% of Melbourne commuters <a href="https://bitre.gov.au/publications/2014/files/is_059.pdf" target="_blank">use public transport</a>, and these figures are much <a href="https://blogs.crikey.com.au/theurbanist/2015/01/21/why-do-commuters-drive-to-work-instead-of-taking-transit/" target="_blank">higher for commuters to the CBD</a>. Nonetheless, around <a href="https://bitre.gov.au/publications/2016/files/BITRE_yearbook_2016_statistics_full_report.pdf" target="_blank">eight of every ten kilometres of travel</a> by Sydney and Melbourne residents is by car.
What happens on our roads affects the daily lives of most city dwellers, as well as the social and economic rhythms of the city. The Grattan Institute will publish a fuller analysis of congestion in coming months, to help governments make the best use of our transport networks – and reduce your time on the road.
<a href="https://theconversation.com/profiles/marion-terrill-169480" target="_blank">Marion Terrill</a>, Transport Program Director, <a href="https://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/stuck-in-traffic-busting-melbourne-versus-sydney-myths-and-identifying-the-worst-commutes-79343" target="_blank">original article</a>.
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Busting Melbourne versus Sydney myths and identifying the worst commutes

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GUEST OBSERVER
The solution to low representation of women on boards across the country is not to introduce quotas.
Creating quotas means that women instantly lose their credibility because they are seen as being required to be there.
Government should support and educate women on how they can achieve board representation.
While one should still earn the right to be appointed to a board, it’s the selection process that needs to be fairer.
In November last year the Victorian government introduced a program to help more women and girls earn sports leadership roles. A target of 40 percent of women in board positions in three years’ time was introduced.
The Change our Game campaign came after an enquiry into how to help women get the opportunities they deserve in what can be male-dominated environments.
The program includes recruitment guidelines to help attract more women and girls to sports leadership roles. This level of support needs to be rolled out across the country and through a wide range of industries.
The structure of how boards are elected should also be reviewed.
The internal nominations structure many organisations have could be replaced with a more transparent process that sees the best possible candidates for a role sought out through a variety of different means, including advertising and social media.
Board representation needs to be looked at as part of an overall strategic plan. Questions need to be asked, such as: Would an organisation benefit from having more men or women? What is their strategy and desired outcome?
Then a campaign can be created to look at the audience and the objectives for the board member they’re after.
This would see the right candidate for the role appointed and more women in turn would be given the opportunity to achieve board positions.
Mentoring of women to ensure that they are board ready is also an important step forward.
Organisations like Women on Boards, that help to provide information to women about how to achieve board positions, are essential to the process of ensuring more women are represented.
Kylie Walsh is a General Manager of Di Jones Real Estate and can be contacted <a href="https://www.dijones.com.au" target="_blank">here</a>.
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Support women on boards without quotas: Kylie Walsh

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<img src="https://counter.theconversation.edu.au/content/80203/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Melburnians have been talking about a train to Tullamarine Airport since well before it opened. Now Prime Minister Malcolm Turnbull has made clear his enthusiasm for an airport rail line, with or without state government support.
But these conversations need to move beyond the question of getting travellers between their plane and their city hotel.
Beyond airport access, this proposal highlights the potential for rail projects to shape Melbourne and feed an integrated public transport system that could serve its growing population.
How railways shape our cities
Transport investment shapes cities, but different modes have diverse effects.
Freeways, tollways and arterial roads (used by cars, taxis, ride-sharing services and buses, as well as trucks) encourage cities to extend horizontally at low densities. Rail-based modes (trams, light rail and trains, both passenger and freight) encourage intensification of corridors and centres.
Melbourne has concentrated most of its post-war transport investment on road-based transport. It has done very little to extend the enormous rail-based legacy of trams and trains built during the first century of European settlement. This is despite transport plans that proposed doubling the tramway system in 1923, and adding several new railway lines – including to Doncaster, Rowville, and between Dandenong and Frankston.
Until 2015, the only major investment in suburban rail since the 1950s was the City Loop, which opened in 1981 after a decade of construction.
The City Loop’s clear legacy has been the transformation of Melbourne’s CBD into one of the highest-density mixed-use precincts in Australia. This has driven some of the fastest growth in residential population anywhere in the country.
The demonstrated desirability of apartment living in urban centres, driven by the accessibility delivered by metro-quality public transport, shows how investment in rail-based transport can reshape cities. While many have advocated this for decades, the precedents have primarily been European or North American.
Australians now have homegrown experience of what transit-oriented urbanism could mean. Sydney has many examples of substantial rail-based suburban intensification. Centres such as Chatswood, Bondi Junction, St Leonards, Strathfield and Wolli Creek (close to Sydney Airport) offer insight into opportunities for Melbourne and elsewhere.
Airport rail can give structure to city’s growing west
A 25-minute metro journey from Melbourne’s Southern Cross station to the airport via Maribyrnong would appear time-competitive with the profitable and popular SkyBus service.
However, unlike SkyBus, rail has the potential to fundamentally reshape Melbourne’s northwestern corridor.
A metro line to the airport east of the currently favoured Albion corridor could realise the considerable intensification potential of many sites along its route. This is no bad thing. Melbourne’s population is projected to rise to 8 million by 2051, with disproportionate growth in the western suburbs.
Although exact alignments are up for grabs, significant urban renewal potential exists at Flemington, Footscray, Highpoint, the former Maribyrnong Defence site, Essendon Fields, Airport West, Tullamarine, and at the airport itself.
By directly investing in rail infrastructure, the federal government would reap the benefits of the land it owns and unlock the potential of many other locations. This is what integrating public transport and land-use planning looks like. And the urban outcome is vastly different from the current paradigm of road-driven transport and land-use planning.
Realising the full potential of an integrated transport system
A rail link won’t provide for all of the access demands for travel to and from the airport.
For that to occur, a comprehensive multi-modal network solution that serves a much wider catchment is needed. There will always be people living beyond an easy stroll to a train station. Their needs can only be met by a radical rethink of Melbourne’s buses in addition to rail-based investment.
However, the latest proposal offers alternative ways to think about long-promised rail lines – such as Doncaster and Rowville – as part of a network, linking intensified suburban centres.
Some lines have the ability to do what Infrastructure Victoria has recommended to increase development densities in Melbourne’s eastern suburbs, using light rail. For example, connecting Doncaster to the suburbs to its south and east, as well as its west, will provide great potential for intensification.
For Rowville, a light rail to Gardenvale will provide better public transport integration while maximising intensification potential.
Other comparable cities are realising the most effective combinations of public transport and land-use investment with light rail. In Montreal, Canada, the Quebec Pension Fund is investing in 67 kilometres of driverless light rail. This will link the city’s airport with urban redevelopment zones and existing metro lines to create a city-wide multi-modal network.
In Melbourne, thinking about the city-shaping potential of rail-based transport should focus minds on the priority to plan and build Melbourne Metro 2. This would provide a tunnel between Clifton Hill and Newport, creating a cross-town metro from Wyndham Vale to Mernda via Fishermans Bend, which is currently bereft of quality public transport.
Melbourne Metro 2 would also improve the chances that Werribee East can realise its potential.
Turnbull is to be congratulated for his reported support for airport rail. But we should be wary of losing sight of the wood for the trees – or, more accurately, the network for the line.
Victoria urgently needs a transport plan premised on integrated public transport and land-use planning. Only then might it work toward a liveable city for 8 million people.
<a href="https://theconversation.com/profiles/ian-woodcock-150260" target="_blank">Ian Woodcock</a> is Lecturer, School of Global, Urban &amp; Social Studies, RMIT University. 
<a href="https://theconversation.com/profiles/iain-lawrie-387154" target="_blank">Iain Lawrie </a>is Sessional Lecturer in Urban Planning, University of Melbourne.
All are authors for The Conversation.
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Airport rail link can open up new possibilities for the rest of Melbourne

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GUEST OBSERVER
The RBA held its cash rate steady at 1.50 percent, which was no surprise. However, for some, the neutral tone of the post-meeting statement, which was as we had expected, might have been a bit disappointing.
Unlike a number of other central banks that have turned hawkish in recent weeks (including Bank of Canada and Norges Bank), the RBA maintained a clear neutral stance.
The post-meeting statement was similar to last month and the RBA felt no need to give any forward guidance. This is classic RBA style. Despite the improving labour market numbers, the RBA stuck by its previous phrasing of 'indicators of the labour market remain mixed' and that wages growth remains low and 'that this is likely to continue for a while yet'. As a result, the AUD fell and short end pricing moved a few basis points lower. Our central view is that the RBA will lift its cash rate in Q1 2018.
Facts
- The RBA kept its cash rate steady at 1.50% as expected by all 29 economists in the Bloomberg survey. Just prior to the announcement the market was pricing an 8% chance of a 25bp hike by December 2017 and was fully priced for a 25bp cash rate rise by Q4 2018.
Implications
Observers that were looking for a hawkish tilt from the RBA today will have been disappointed. The statement provided no new forward guidance or hints that the RBA may consider lifting rates any time soon. This is typical RBA style. The RBA tends to provide less active forward guidance than many other central banks. Plus, although we think the RBA should now be completely re- affirmed that it will not need to cut further, given an improving labour market and business conditions, a hike is still likely to be some time away.
The statement was largely unchanged from last month, with some minor adjustments. In particular, it noted that GDP had slowed in Q1, but that this was 'as expected' and partly reflected 'temporary factors'. The statement also dropped the reference to growth being expected to lift to 'a little above 3%' in the next couple of years, but still noted that the 'Australian economy is expected to gradually strengthen'.
The RBA continued to note that the 'indicators of the labour market remain mixed' and that 'wages growth remains low ... and this is expected to continue for a while yet'. The reference to a still mixed labour market almost certainly refers to weak wages growth, rather their reading of the recent employment figures.
So, what is needed to get the RBA to think about lifting its cash rate? In our view, the answer is a pick-up in wages growth. Once there are signs that wages growth is past its trough, we expect that it won't be long before the RBA is lifting its cash rate. 
Indeed, we see the RBA as likely to be quite keen to lift its cash rate earlier, rather than later, because of its concerns about the housing market. Today's statement continued to note that 'housing prices have been rising briskly in some markets'.
It is clear that, although the RBA has deemed that they have needed a very low, 1.50% cash rate, to get the economy to rebalance at the end of the mining boom, low rates are also causing problems. Low mortgage rate have boosted housing prices and household debt in the major cities. So, although the low cash rate may be the right setting for the inflation outlook, it has been too low for the Sydney and Melbourne housing markets.
The solution to this problem has been to tighten up the prudential settings. That way, although risk is still building up on the household balance sheet, tighter lending standards are helping to ensure minimal misallocation of lending.
But this is a second best solution. A first best solution is to set the cash rate at an appropriate level for the overall economy and for the housing market. This is why, in our view, the RBA will be keen to start lifting its cash rate as soon as it deems that the macro-economy will allow it. And what does it need to see? A lift in wages growth.
We see wages growth picking up in the second half of 2017. As a result, our central view is that the RBA will begin to lift its cash rate in Q1 2018. 
Paul Bloxham is chief economist (ANZ) for HSBC. Daniel Smith is economist. They can be contacted <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">here</a>.
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RBA patient, but the next move is set to be up

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GUEST OBSERVER
The Reserve Bank has maintained its “neutral stance” – meaning that rate hikes are as likely as rate cuts in the period ahead.
In practice though no change in rates is likely.
What does it all mean?
The Reserve Bank Board is comfortably on the interest rate sidelines. Much would need to go wrong at home and/or abroad for the Reserve Bank to cut rates again. At the same time, rate hikes are off the agenda. In essence policymakers are giving households and business more time to work with record low interest rates, and forget about rate movement and get on with spending, hiring and investing.
There are signs that the economy is lifting from its early 2017 malaise. Retail activity is lifting, unemployment is at 4-year lows, job vacancies are at 61⁄2-year highs and importantly record home building and a large pipeline of infrastructure spending will support the economy over 2017.
The key is how business investment plans evolve over the coming year. And most of the indicators suggest that the future outlook is encouraging. Corporate Australia is being supported by strong business conditions, upbeat confidence, high capacity use, and healthy profits – all conducive to a lift in hiring and investment over the coming year.  
No surprises there are still a couple of ‘hot button’ issues to monitor at present: home prices; household debt levels, subdued wage growth and the Aussie dollar. And while policymakers remain upbeat about the medium term prospects for the economy there is a clear understanding that “consumption growth remains subdued” largely due to “slow growth in real wages and high levels of household debt”. 
Importantly the RBA reiterated its view that while the “growth in housing debt has outpaced the slow growth in household incomes. The recent supervisory measures should help address the risks associated with high and rising levels of household indebtedness”.
Perspectives on interest rates 
The Reserve Bank has left the cash rate at 1.50 per cent. The previous move was a rate cut in August 2016 (25 basis points). There have now been 12 rate cuts since November 2011, with the Reserve Bank cutting rates from 4.75 per cent to 1.50 per cent. 
The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points, from 3.00 per cent to 4.75 per cent. 
What are the implications of today’s decision? 
<a href="https://www.propertyobserver.com.au/images/2017/07/05/Screen%20Shot%202017-07-05%20at%208.07.08%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/07/05/Screen%20Shot%202017-07-05%20at%208.07.08%20AM.png" alt="">
 
There is no urgency for rates to move in any direction. On the positive side of the ledger are record corporate profits; strong business conditions; a lift in infrastructure spending; firm home building; and the prospect of further job growth.
On the other side of the ledger, wage and price growth is low; consumer spending is fluky; home price growth is slowing; and the Aussie dollar remains firm.
The Reserve Bank is expected to maintain its neutral policy stance for an extended period.We expect the Reserve Bank to stay on the interest rate sidelines for the 2017 year.
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/">CommSec</a> 
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Reserve Bank alert but not alarmed

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Statement by Philip Lowe, Governor: Monetary Policy Decision
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At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
The broad-based pick-up in the global economy is continuing. Labour markets have tightened further in many countries and forecasts for global growth have been revised up since last year. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. The rise in commodity prices over the past year has boosted Australia's national income.
Headline inflation rates, having moved higher over the past year, have declined recently in response to lower oil prices. Wage growth remains subdued in most countries, as does core inflation. Further increases in US interest rates are expected and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively and volatility has been low.
As expected, GDP growth slowed in the March quarter, partly reflecting temporary factors. The Australian economy is expected to strengthen gradually, with the transition to lower levels of mining investment following the mining investment boom almost complete. Business conditions have improved and capacity utilisation has increased. Business investment has picked up in those parts of the country not directly affected by the decline in mining investment. At the same time, consumption growth remains subdued, reflecting slow growth in real wages and high levels of household debt.
Indicators of the labour market remain mixed. Employment growth has been stronger over recent months. The various forward-looking indicators point to continued growth in employment over the period ahead. Wage growth remains low, however, and this is likely to continue for a while yet. Inflation is expected to increase gradually as the economy strengthens.
The outlook continues to be supported by the low level of interest rates. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.
Conditions in the housing market vary considerably around the country. Housing prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. In some other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases are the slowest for two decades. Growth in housing debt has outpaced the slow growth in household incomes. The recent supervisory measures should help address the risks associated with high and rising levels of household indebtedness. Lenders have also announced increases in mortgage rates for investor and interest-only loans.
Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
To go to the RBA website <a href="https://www.rba.gov.au/media-releases/2017/mr-17-13" target="_blank">click here</a>.
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Easing and declining property prices noted: RBA Governor Philip Lowe's July 2017 statement

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GUEST OBSERVER
As the Automatic Teller Machine (ATM) celebrates its 50th birthday, it’s actually being used less and less to withdraw cash in Australia.
There are currently more than 32,000 ATMs across Australia and cash withdrawals in February 2017 were A$9,924 million, down 10 percent from the previous year and just above the total of February 2005.
ATM’s (Automatic Teller Machines) were first introduced at the end of June 1967 and were welcomed by both bank customers and the banks themselves. This “hole in the wall” enabled customers to access their cash 24/7. The ATM’s self-service nature enabled the banks to reduce their costs, by closing bank branches, reducing opening hours and laying off staff.
But the Reserve Bank of Australia’s 2016 Consumer Payments Surveyreported that cards were used more often than cash for in-person payments, as well as online payments. This is facilitated by Australian consumers and merchants’ rapid adoption of contactless.
The July 2017 changes to the level of merchant service fees for accepting payment cards might even further reduce our reliance on these machines. The changes should reduce surcharging and minimum spends for accepting cards (in theory) and we will then have even less reason to carry cash. 
ATMs will need to evolve to remain relevant, perhaps taking on other services entirely.
Lots of cash, just not from ATMs
Paradoxically, there has never been so much cash available in Australia. By April 2017 there were 1.5 billion individual banknotes on issue, an average of 62 notes for every Australian. The RBA has recently opened a new super bank vault to store its contingency reserves of banknotes. 
There are similar patterns in other countries. For example, the Bank of England notes in circulation rose by 10% in 2016, the fastest pace in a decade. This is despite technological advances that now allow people to pay by contactless cards and digital devices, such as mobile phones.
Why then is cash still so popular? The RBA’s 2016 survey concluded that cash is widely held as a store of value. If found 70% of respondents to the survey held cash in places other than their purses and wallets.
The government’s Black Economy Taskforce estimates that the Australian black economy is around 1.5% of GDP, or A$25 billion per year. Much of this is enabled by the use of hard cash, as opposed to electronic payments. 
Harvard professor Kenneth Rogoff wrote that physical cash can facilitate corruption and tax evasion. In his view, many of the disadvantages of cash could be reduced if larger denomination notes were withdrawn from circulation. 
As an example, the Euro 500 note is due to be withdrawn from the end of 2018, however it may take more than this to reduce the underlying attraction of cash.
There are many assumptions, attitudes and beliefs which legitimise and perpetuate participation in the black economy. Questioning these will require behavioural change from all citizens, according to the Black Economy Taskforce’s interim report. As an example, if someone else is avoiding GST by paying in cash, others might think “well if they are doing it, I would be a fool not to do it myself”.
Other uses for the ATM
These are services available to bank customers through their ATMs in countries other than Australia. For example, ATMs could be made more efficient by encouraging more customers to deposit cash into the ATM and then recycling that cash in the machine to be used by those seeking to withdraw cash. This would remove many of the costs and security risks of constantly replenishing ATMs with cash. 
Additional functions could be added to the ATM. In the United States you can buy postage stamps at the ATM; in Spain tickets to football matches; in Dubai bars of gold; in California fresh cupcakes and elsewhere fishing licenses and tax bills can all be accessed through ATMs.
As regards customer security to ward off identity theft, biometric measures could make access to the ATM more secure. In Japan finger vein scanning is already in use in many ATMs.
These developments could put ATMs in the forefront of an enhanced customer experience, giving the ATM reasons to survive for another 50 years.
Steve Worthington is adjunct professor, Swinburne University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/steve-worthington-138" target="_blank">here</a>.
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The ATM celebrates 50 years but we’re using it less

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The Early Childhood Development and Care (ECDC) industry has been an asset class with strong returns for many years, however recently the new government childcare rebates, coupled with a number of other well-timed market changes, have seen this particular asset class truly become one to watch for astute investors. 
In a recent white paper Child Care: Australia’s Burgeoning Real Estate Investment Class by Colliers International, it identified an 800 per cent increase in the number of sales of child care centres from 2008 to 2016, with the highest volume of activity concentrated across the east coast. 
The growth of the industry is supported by several key factors that effectively de-risk the class asset and reinforce what we have believed for some time – that childcare is one of the more attractive investment asset classes of 2017 for developers and investors alike. 
HISTORY OF STRONG YIELDS 
The childcare industry has historically recorded higher yields and stronger transaction volumes than its counterparts in the office, retail and industrial sectors. For example, in September 2010 the highest yield of the past decade was recorded at 14 per cent garnered. 
The spate of new competition amongst childcare operators and investors has seen a sharpening of transaction yields and as a result, the industry is showing clear signs of maturity as the performance gap closes comparative to other sectors. 
As the market matures industry yields have consolidated. According to Julian Heatherich, Savills Australia Director, CBD &amp; Metro Sales yields have been peaking at the 6 to 7 per cent range over the past 12 to 18 months 
LONG-TERM TENANCY AGREEMENTS 
Unlike other commercial asset classes where tenancy agreements tend to be an average of ten years, the ECDC industry leases are normally 15 to 20 years, providing more certainty and stability for landlords and investors. 
The stability of these tenancy agreements are amplified by the triple net-lease tenancy model used throughout the market. Under this agreement, operators are responsible for paying the building property taxes, insurance and maintenance which, under most other lease types, would fall to the landlord. 
Thus the nature of these leasing agreements makes childcare a popular vehicle for investors as it creates a steady low-risk income with some built in capital protection. 
GOVERNMENT SUPPORT 
In May this year, the federal budget outlined significant changes to the childcare rebate system and will soon offer subsidies relative to income - skewed to favour lower income earners. 
To take effect on 1 July 2018, the new childcare packages will provide families earning less than $65,000 per annum with an 85 per cent rebate, tapering off to 20 per cent for households earning $250,000 - $340,000. 
The government objective is to incentivise families to return to work by increasing accessibility to childcare services, which may have been, until now, out of reach. A secondary objective is to invest in ECDC industry and positively impact yields, which will attract investment and generate competition and enforce pressure for higher quality of child care services nationwide. 
Government support will ensure stability in demand for the industry, presenting astute investors with yet another argument for childcare as a low-risk, low-term investment opportunity.
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STEADY DEMAND 
Location is key to a childcare centre’s success. Until now city and metro-based centres were sitting at an occupancy rate exceeding 80 per cent due to the density of population in their catchment areas. However, regional area attendance is fluctuating between 50 to 70 per cent. 
According to a report released in 2017 by Early Childhood Development Agency (ECDA) since 2013 there has been a 39 per cent increase in the number of children enrolled in child care facilities and only 26 per cent increase in the number of child care centres nationwide. 
The increased demand is underpinned be steady population growth as well as the female workforce participation rates, which have been on a consistent upturn since the 1980s. 
Considering the changes to government support, the low risk environment for this asset class is assured. The legislative changes ensure resilience of consumer income in an economic downturn for this asset. and reinforces the childcare freehold as a protected asset class. 
Furthermore, these key economic features hint at the potential growth suburbs for the child care services nationwide presenting an array of investment opportunities across Australia. 
When the above is considered, the case for child care as an asset class becomes compelling. There are few asset classes that are comparable in terms of being able to offer secure, long-dated income profile that is underpinned by explicit government support. This asset is future-proofed with a long history of good performance and underlying social trends that continue to support its strength. 
Backed by a sound track record and with more potential to be unlocked come 1 July 2018, developers would do well to factor this strength into their portfolios for the years ahead. 
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Michael Kark is a co-founder and Executive Director of Monark Property Partners and can be contacted <a href="https://www.monarkpartners.com.au" target="_blank">here.</a>
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Why childcare is the next class asset to watch

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

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Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
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Joel Robinson

Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" 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/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

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Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Jonathan Chancellor

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