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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

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Jonathan Chancellor

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