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<img src="https://counter.theconversation.edu.au/content/76159/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The federal government is split on whether first home buyers in Australia should be allowed to use part of their superannuation for home deposits.
But what the more strident critics miss is that Australia’s superannuation system already channels a significant proportion of retirement savings into housing.
It does this not via the traditional route of people buying a house outright, but rather through an indirect channel, by transforming the household’s compulsorily acquired superannuation equity into mortgages from commercial banks and other financial intermediaries.
Statistics from the ABS (December 2016) show that for every A$1 of assets managed by the superannuation sector, approximately 27 cents is directly financing Australia’s banking sector. This is via superannuation holdings of bank deposits (14c in the dollar), bank equity (7c in the dollar), and other bank liabilities (6c in the dollar).
What do banks do with this 27c? The ABS reports that 38 percent of bank financial assets are long-term loans to households. We have cross-inspected this data with figures from the Australian Prudential and Regulation Authority (APRA) and found that nearly all of these loans are mortgages.
This suggests that at least 10c of every A$1 of superannuation assets is indirectly financing house purchases via commercial bank debt.
But this also excludes other indirect financing of banks by superannuation. For example, the portfolios of non-money market mutual funds and other private non-financial corporations are also heavily weighted towards funding banks (24 percent and 36 percent of their assets, respectively), and superannuation funds allocate 6 percent and 24 percent of their funds to these agents respectively. This potentially adds a further 4c in every A$1 of superannuation assets that ultimately results in debt financing of housing.
Why using super for housing might be good idea
One of the merits of allowing households to use their superannuation to supplement their housing deposits would be to reduce unnecessary and expensive financial middlemen. Under the present system, the money from superannuation that finds its way into housing finance does so by passing through chains of two or more intermediaries. This means that it incurs management expenses at each step.
The first link in the chain is the superannuation sector (with an average expense ratio of 0.7 percent). Next is one or more financial intermediaries, like banks. A plausible estimate of the banking sector’s expense ratio, by our calculations, is 1 percent to 2.3 percent of bank assets.
Total expenses through the intermediation chain could therefore be as high as 1.7 percent to 3 percent. These expenses might be lower under a housing equity super access scheme.
Another potential benefit relates to the accumulation of debt and its consequences for financial stability.
Most of the money people put away into superannuation, because its compulsory, would have otherwise been used for other types of saving. If you look at the assets in a household’s balance sheet, it is clear that housing equity (representing 65 percent of non-superannuation assets) is the household’s preferred savings vehicle.
It is possible that growth in compulsory superannuation has contributed to growth in household debt in two ways. First, by frustrating people’s ability to finance home ownership through their deposit. Second, by increasing the supply of mortgage finance, as superannuation savings are recycled through the financial system, and converted to mortgages by the banks.
The risks with the plan
One concern about letting people divert money into buying a house is that their income in retirement could suffer as a result. To mitigate the risk of this happening, any policy on this would need to record and track the values of super funds’ home equity stakes (just as super funds presently track values for the traditional assets they hold).
But retirement income is determined by total net assets, not superannuation assets alone. In this context, home ownership provides retirees an important stream of stable tax-free, inflation-protected, income. This is recognised by the Association of Superannuation Funds of Australia benchmarks for “modest” and “comfortable” retirement income.
These assume that retirees own their home outright. So the decline in home ownership is a significant threat to the adequacy of Australia’s retirement income system.
A second risk is that the policy could further raise house prices, reducing affordability and exposing retirement savings to a house price collapse. In the present house price environment, this is a real risk, which would need to be monitored. But the policy’s two main merits (reducing intermediation costs and improving financial stability by reducing gross debt) are long-run benefits that will continue to hold beyond our current point in the house price cycle.
APRA also already monitors risks associated with housing credit growth, and has the tools, and the willingness to use them, should the policy promote undesired house price growth.
There are reasons to expect that a policy allowing first home buyers access to super will not lead to net growth in housing finance. Superannuation funds are already required by APRA to understand their underlying asset exposure risks. So super funds might try to maintain their total exposure to property risk under this policy, for example by reducing their exposure to the banks. 
James Giesecke<a href="https://theconversation.com/profiles/james-giesecke-9853"> </a>is professor, Centre of Policy Studies and the Impact Project, Victoria University and can be contacted <a href="https://theconversation.com/profiles/james-giesecke-9853" target="_blank">here</a>.
Jason Nassios is research fellow, Centre of Policy Studies, Victoria University and can be contacted <a href="https://theconversation.com/profiles/jason-nassios-318488" target="_blank">here</a>.
Both are authors for The Conversation.
 
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jchancellor-FAypfDUnLy

Here’s how superannuation is already financing homes

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SPONSORED POST
The relationship between people and their environment can affect how they feel, perform and interact with others, so it’s important to ensure that the workplace is designed with these aspects in mind.
A recent report by Human Spaces, ‘Global Impact of Biophilic Design in the Workplace,’ has found a significant link between natural elements available in the physical office environment and workers well-being, productivity and creativity levels. The report collected responses from 7,600 office workers from 16 countries around the world, including Australia, the US and the UK.
According to this report, workers with higher levels of sunlight and green spaces:
<ul>
<li>Display a 15 percent higher level of well-being</li>
<li>Are 6 percent more productive </li>
<li>Are 15 percent more creative overall </li>
</ul>
It puts in perspective the importance of incorporating simple natural elements in the workplace, which provides a significant benefit to the bottom line of any company through worker productivity and well-being.
In addition, office design is an important tool in recruiting and retaining staff, with the Human Spaces survey revealing 33 percent of respondents globally state that the design of an office would affect their decision to work for that organisation.
Putting thought into practice
At Savills, we have recently incorporated these learnings into the new Savills Sydney office fit-out. The new office space is on a higher level than the previous space, the windows are larger and there will be more access to daylight. Also, the majority of work positions have been designed to be less than 6m from a window, and no work positions further than 12m from a window. 
With regards to green elements, the new office design features a larger scope of greenery than the previous space, including more than a hundred pot plants and wall mounted plants over two floors.
Improvements such as these will ensure the best performance and well-being of our employees.  
Little steps to achieve success
Unfortunately, the Human Spaces survey also revealed that globally many workplaces still lack natural light and more than half have no live plants. In Australia, 28 percent of workers reported their workplaces having no windows.  
But even for offices that do not have windows, or are unable to make huge changes, employers can still improve their conditions through minor alterations to the workplace.
In fact, research suggests it is the variation in patterns, textures and colours of nature that brings us pleasure, so we should consider how best to recreate these within the indoor environment when access to a window is not feasible.
These alterations could include:
<ul>
<li>The addition of plants to the office</li>
<li>Large scale scenic images on the walls</li>
<li>Painting the walls with some brighter colours, (specifically, accents of green and blue have been shown to improve creativity and productivity)</li>
<li>The creation of social areas that provide employees with access to natural light and a place for respite</li>
<li>Wall-mounted video screens displaying images or real-time video of natural scenes</li>
</ul>
If you would like any advice on how natural elements can benefit your fit-out, contact the Savills Project Management team.
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. To learn more about Savills, visit <a href="https://www.savills.com.au" target="_blank">savills.com.au</a>.
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Where there’s nature, there’s well-being and productivity in the workplace

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<img src="https://counter.theconversation.edu.au/content/76213/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
John Daley and Danielle Wood, The Grattan Institute
The latest data from the ATO is consistent with what we’ve seen in the past. It shows that people with high-income occupations – doctors, lawyers, and others – are more likely to use negative gearing than the nurses and teachers on whom Treasurer Scott Morrison focuses when he tries to justify retaining negative gearing. It also shows that negative gearing is typically worth four to five times more for doctors and lawyers than nurses and teachers.
The tax data shows that with falling interest rates, fewer landlords are negatively geared, and the average loss is also falling. Overall the investor property market seems to be concentrating a little, with slightly fewer landlords but more investment properties per landlord. Negative gearing has lots of problems. It costs the budget a lot of money, distorts investment decisions, increases house prices, and reduces home ownership, while doing little to increase supply.
<a href="https://www.propertyobserver.com.au/images/2017/04/image-20170413-25882-17d8qsm.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/image-20170413-25882-17d8qsm.png" alt="">
The government claims it should nevertheless be retained because it’s primarily an investment strategy for “mums and dads”. But the detailed tax data from previous years shows that about two-thirds of the benefit goes to the one-fifth of taxpayers with the highest income before the negative gearing deduction.
We will have to wait until later this month for the release of more detailed data to check that this is still true.
<a href="https://www.propertyobserver.com.au/images/2017/04/image-20170413-25888-a7fcjy.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/image-20170413-25888-a7fcjy.png" alt="">
Professor Fabrizio Carmignani, Griffith Business School
This data delivers a simple, probably not unexpected, but still concerning message: inequality in Australia is increasing.
We can see this in terms of the growing gap between the richest and the poorest suburbs, as well as an increase in dispersion across all suburbs.
For example, the data published yesterday indicates that average taxable income in the ten poorest postcodes was only 11% of the average taxable income in the ten richest postcodes. A decade ago, in 2004-05, income in the ten poorest postcodes was 21% of income in the richest postcodes.
In fact, while the average income at the top of the distribution has grown by 30% in a decade, average income at the bottom has actually declined by 33%. If we look at the overall dispersion of incomes by postcode, we can see that this has gone up by approximately 25% in ten years.
Whichever way we look at it, the conclusion is that there is more income inequality today than ten years ago.
The other interesting aspect to the data is that the richest postcodes today are more or less the same as ten years ago. Indeed, seven of the top ten postcodes in 2014-15 were already in the top ten in 2004-05. But this same trend is not observed at the bottom: none of the ten poorest postcodes today were in bottom ten in 2004-05.
And there is some bad news for Queensland in particular: the proportion of the state’s postcodes in the bottom ten has increased considerably, from three out of ten in 2004-05 to seven out of ten in the latest data. This data might be indicative of a growing poverty problem in this state.
Associate Professor Helen Hodgson, Curtin Law School
The ATO’s data clearly shows that the self-managed superannuation fund (SMSF) sector is not only continuing to grow, but is used primarily by people with the ability to make higher contributions; either high income earners or those late in their careers.
Members of self-managed superannuation funds made significantly higher contributions and have higher balances than members of Australian Prudential Regulatory Authority (APRA) regulated funds.
The data shows that on an individual basis, the median contribution to a SMSF was A$20,000. Meanwhile, members of APRA funds made median contributions of A$4,507.
Similarly, the super balances of members of SMSFs are significantly higher than APRA funds. SMSF members have median balances of A$289,483, compared to just A$32,734 for those in APRA regulated funds. The data also shows that a small proportion of people have very high balances, which is reflected in the difference between the median and mean balances in the statistics.
Two of the forthcoming changes to superannuation will limit contributions and impose a cap on balances, which should impact higher earners. Most people who made contributions in excess of A$25,000 are over 45 and earned more than A$180,000.
But the changes to the superannuation system will not take effect until July 2017, so it is too soon to know how that will impact superannuation funds. However the division between the self-managed and APRA regulated funds is clear.
This article was written by <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">Jenni Henderson</a>, The Conversation and and <a href="https://theconversation.com/au/team#josh-nicholas" target="_blank">Josh Nicholas</a>, The Conversation.
<div class="content" data-raw=""> </div>
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ATO data shows inequality is in everything from super to the property market

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<img src="https://counter.theconversation.edu.au/content/75691/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
There are many hidden costs and inefficiencies in housing markets. Blockchain is poised to transform that.
An emerging technology, blockchain, could transform the way we buy and sell real estate by doing away with the hidden costs and inefficiencies of our housing markets.
Blockchain is an online ledger that records transactions. It’s capable of recording the movement of any kind of asset from one owner to the next.
It’s public and isn’t owned by any one corporation, there are no charges to record transactions. Its openness ensures the integrity of transactions and ownership, as everyone involved has a stake in keeping it honest.
This means there are fewer intermediaries; less middle-men who increase the costs and time to complete a transaction.
There are risks associated with the system as it’s only as strong as the code that supports it, which has come under attack in the past. Despite this, examples from overseas show it is possible to apply this technology successfully to our housing market.
Problems in how the property market is run
For buyers able to find the right property, secure a mortgage and save a deposit, they must also pay for a range of so-called “hidden costs”. These are additional payments associated with the transaction over the cost of the home itself. Many legal and title-related costs would become near-obsolete in a blockchain system.
The combined costs of title registration, title insurance, and legal fees associated with register the property transfer approach A$1,000 on the average Australian house. Costs continue to rise as the prudent buyer undertakes further due diligence, through building inspection documentation, previous sales records and so forth.
On top of the financial cost, it then typically takes over a month to settle a real estate transaction in Australia. The blockchain system can speed things up, as currently tedious checks undertaken by hand, move to an automated system overseen and approved by the relevant stakeholders.
There is also the risk that land titles offices with a single database simply get things wrong too. In 2016 it was reported that 300 incorrect certificates had been issued in NSW, with 140 of those being recent property buyers affected by government plans for major motorways in Sydney’s west.
There are now concerns that the system’s quality could be compromised in several states, including NSW and South Australia, as land titles offices become privatised.
A blockchain real estate market
If blockchain were applied to the property market in Australia, every property would be encoded with a unique identifier. Property IDs already exist in most land registry systems, so these would need to be migrated to a blockchain.
Next, the blockchain ecosystem then needs to have defined who the people behind the transaction are, those stakeholders that include the owner, lender, and government.
Transactions of property are conducted via “smart contracts” – digital rules in the blockchain that process the agreement and any specified conditions. Buying and selling could still take place via agents, or the smart contract can be advanced to incorporate the sale rules and make this decision automatically. The blockchain for each property grows as transactions are added to the ledger.
A housing market without agents, conveyancers and a land-titles office may seem decades away, but a handful of countries have already piloted blockchain land registration system.
In Australia, our current land titles system is among the world’s best, but it is not infallible. A range of hidden taxes and transaction costs increase market inefficiencies.
And while the electronic system Property Exchange Australia or PEXA, has brought us to the point of a near paperless property market, it’s still an intermediary between the parties and the record of the transfer in the Torrens system - our current land title system.
The added advantage of a blockchain system is in eliminating risks, in particular the risk of records being accessed fraudulently and altered or deleted because it is a permanent and immutable record. This means that a huge amount of computing power would be required, probably along with some collusion, and the alteration is easily detected across the ledger. That’s not to say the blockchain system is perfect.
Blockchain’s advantage in restricting any changes to historical records becomes a disadvantage when incorrect or fraudulent entries are added. Digital currency managers, Ether and Bitfinex, learned this the hard way through cyber attacks.
Last year these attacks siphoned off over US$50 million in ether tokens from The DAO, the largest crowdfunded venture capital fund. This breach led to a controversial split of Ether into two separate active digital currencies.
Only months later, Hong Kong-based crytocurrency trading firm, Bitfinex, had the equivalent of US$68 million stolen by hackers in a security breach reminiscent of the hack that bought down Mt Gox in 2014. It is little comfort to cautious market regulators that the thieves behind these attacks can not spend it without revealing their identity on the blockchain.
These hacks demonstrate that blockchain systems are only as secure as the code which supports them. As a nascent technology, its cracks are detected only when they are exposed.
Where blockchain has worked before
Sweden became the first western country to explore the use of blockchain for real estate in July last year. At the time, the Swedish Land Registry partnered with blockchain startup ChromaWay to test how parties to a real estate transaction – the buyer, seller, lender, government – could track the deal’s progress on a blockchain.
Other countries at the forefront of blockchain for real estate include The Republic of Georgia, Honduras, and Brazil which announced a pilot program earlier this month. While this might seem like a disparate list, it’s in these countries where the long-term potential of a blockchain for real estate are most significant.
Systemic corruption and insecure database management in these countries, and many other emerging economies, is seen as a major constraint on growth and prosperity. Why would you invest in a house, or any other asset, if there is a distinct possibility that the record of your ownership could simply disappear?
With ever increasing demands for improvements to transaction efficiency and local real estate industry giants like CoreLogic appointing research teams dedicated to new technology applications, it might not be long before we see a real estate blockchain system in Australia.
Danika Wright is a Lecturer in Finance, University of Sydney and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/danika-wright-121868">here</a>.
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How the blockchain will transform housing markets: Danika Wright

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<img src="https://counter.theconversation.edu.au/content/75625/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Fair Work Commission is considering whether to increase Australia’s minimum wage.
The Australian Council of Trade Unions is arguing for a A$45-a-week rise. Industry, arguing that currently business has limited ability to afford wages increases, wants the increase capped at 1.5 percent (closer to $10 a week).
While I suspect most people immediately focus on wages as a cost of production for business, it’s worth clarifying precisely what economic roles wages play. There is more than one.
Indeed, wages are certainly a cost. More precisely, their significance for business as a cost is as one component of something economists call “real unit labour cost”.
This is the cost of employing a person in terms of the value of the goods and services a business would produce. Crudely put, this means the proportion of the value of a day’s production that would be needed to pay for a day’s labour. This depends on two things.
Two key influences: productivity and real wages
The first is the real wage – the purchasing power of the worker’s pay packet, which brings into play prices of goods and services. The second is the productivity of the worker – how much the worker produces over a given time.
The real cost of employing a person over time depends on how these two things change. If productivity is growing, then the real wage can grow without an increase in the real cost of labour for business.
But a couple of other economic considerations are relevant when assessing the economic impact of changes in the worker’s wage. The first is that productivity also depends on investment. Changes in technology that allow for greater productivity are often embodied in the new plant and equipment that firms invest in.
Yet what governs investment? This is an age-old question in economics, and perhaps one of the least agreed areas within the profession. But any stab at this question would conceivably point to the expected rate of return on the investment relative to the so-called cost of capital. An economist would typically measure the cost of capital by reference to interest rates, among other things.
However, the rate of return is critically dependent on how much demand there is for the goods and services produced by the new plant and equipment the business invests in.
There is also a competitive imperative which links demand growth and investment. Maintaining market share requires a business to be able to respond to growing demand. Optimally, this requires increasing capacity and thus undertaking investment.
Wages growth and investment
But demand growth varies with spending power and the income that flows to the population, a significant portion of which comes from wages. In other words, wages have a flipside. They’re not just a cost of production; they’re also a source of spending and thus of revenue and profit for business.
This is an important point in economics, specifically about how what we see at the micro level does not automatically replicate itself for the economy as a whole. Looked at from the perspective of a single business, wages appear as a cost. But to only look at things this way is inadequate if you are interested in the impact of changes in wages on the overall economy. For that you also have to consider wages as income and a source of demand.
Expectations about future demand growth are presumably as critical to the investment decision for firms as are expectations about factors such as taxes on business income.
A reduction in business taxation may well increase prospective after-tax rates of return on investment. But, as already mentioned, this assumes people with income to spend are ready to buy the output produced with newly installed plant and equipment.
Looked at from this angle, one could argue that growth in demand and in turn wages growth will be required to warrant producers undertaking investment and in turn the kind of changes to production that underpin productivity growth.
One can go a little further. Assuming a government’s intention is to wind back its contribution to demand in the economy (via government spending) through what is euphemistically termed “fiscal consolidation”, and assuming our trade is not significantly changing, a certain real wage growth is required to generate sufficient growth in demand to warrant sustained investment and productivity growth.
It’s the flipside to this scenario that is worrying. To the extent that increasing profitability through increased productivity is not shared in the form of increased real wages, the economy faces the danger of its productive capacity growing faster than demand. This kind of danger was highlighted long ago by the noted Italian economist Luigi Pasinetti.
In this scenario the profit of each unit of output may increase initially as productivity grows, but demand does not keep pace, in which case the increase in profitability is likely to be short-lived. More worrying in this case is that employment growth suffers and consequently the unemployment rate is likely to rise.
Some economists would counter that real wages would fall in order to absorb any increased unemployment, though this claim has always been contentious.
It supposes that unfettered markets will always provide demand for whatever amounts of goods and services are produced – in itself a controversial position in economics.
Of course, none of this deals with the moral or ethical imperative of a minimum wage which ensures a liveable real wage. Rather, the point here is that, quite aside from the moral or ethical case, there are economic arguments to be had for ensuring an appropriate rate of growth of real wages.
Graham White, associate professor, School of Economics, University of Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/graham-white-8139" target="_blank">here</a>.
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How wage growth contributes to the economy

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GUEST OBSERVER
The February Labour Force Survey was a disappointing update on the Australian labour market reporting a fall in total employment along with unemployment rising to its highest level in 15 months.
So far in 2017 the labour market has been quite a bit softer than we had anticipated.
In February total employment declined 6.4k and the annual was flat at 0.9 percent/yr holding well under the pace that our Jobs Index suggests it should be – circa 1¾ percent/yr and accelerating to around 2¼ percent/yr by late 2017.
The ABS notes that in the February survey sample rotation may explain some of the weakness in the month. In March if the sample rolling in is more like the average  of the total sample then this would result a bit of a positive bump. But sample volatility does not explain the weakness seen over the last three months.
<a href="https://www.propertyobserver.com.au/images/2017/04/13/Screen%20Shot%202017-04-13%20at%208.33.47%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/13/Screen%20Shot%202017-04-13%20at%208.33.47%20AM.png" alt="">
Our 20k forecast for March holds the annual pace at 0.9 percent/yr but we note that changing seasonality increases the risk to this forecast.
In February, the rise in full-time employment was not a positive sign as it did not broken the recent trend for a greater focus on part-time employment. In addition the weakening in hours worked further emphasised that labour demand is somewhat weaker than what the business surveys suggest.
The –6.4k decline in employment in February was reported with a 19.5k jump in the labour force due to a flat participation rate of 64.6. This is why the unemployment rate jumped 0.2ppt to 5.9 percent (5.87 percent unrounded).
In March, if participation holds steady, a 20k gain in employment will be enough to hold unemployment rate steady at 5.9 percent.
Weak hours worked in late 2015 were something of an early warning of the soft patch in employment. In January we had found it very promising that hours worked per employee lifted 0.8 percent in the two months to Jan. Since then hours worked have pulled back so we are again closely watching to see if this is presaging a further slowdown in employment.
We also note a small lift in employees who expect to lose their job due to their employer closing. This series can lead changes in the unemployment rate. 
Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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Looking for signs of stability in the labour market: Westpac's Justin Smirk

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Akuna, the Point Piper harbour front with historic Chinese boat shed, has been listed for sale.
It is offered for the first time offered in 20 years.
It has quietly slipped onto the market by Karen Daly, the successful author of the Fats &amp; Figures range of books, and wife of Warren Daly, the big band performer.
The couple paid $7.75 million in 1997.
The Wolseley Road house was designed by Richard Christian and Walter Barda for retailing businessman John David, with interiors by Michael Love and Thomas Hamel.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/6/PointP.jpg" alt="" width="469" height="262">
There is inclinator access from the street garaging.
It is being offered with a French Riviera style three bedroom garden apartment in the Danmark, which has failed to find a buyer in recent weeks.
Set on Seven Shillings Beach, it comes with a Pagoda boathouse, a rare Chinese-style timber boatshed, one of only two on Sydney Harbour influenced by the late Victorian fashion for the East and oriental design.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/04/chineseboatshed.jpg" alt="chineseboatshed" width="470" height="259">
The boatshed was part of the property once owned by W. G. "Knockout" Smith, a millionaire industrialist and horse owner-breeder whose mansion Danmark was at the top of the ridge, but Knockout preferred to spend most of his time in his one-room shed, allegedly because he couldn't stand his wife.
The founder of the glassmaking giant Australian Consolidated Industries was noted for having a glass of champagne for breakfast, on doctor's orders, and swimming daily, summer and winter, in the harbour. Smith made a reputation selling upper Hunter horses to Hollywood bigwigs including the movie mogul, Louis Mayer, of Metro-Goldwyn-Mayer.
The horse Shannon left Smith's stable after being bought in 1947 for $54,600, an then Australian record. Smith raced him briefly before selling him for $62,500 to US owners who when racing him as a  seven-year-old - won the San Francisco County Handicap, in a time of 1m:55.6s for the nine-and-a-half furlongs (1,900m) which was 0.2s faster than the record established by US legend Sea Biscuit in 1936.
Apparently Knockout Smith he was easy to spot swimming because of his bather's cap. It last sold when the spritely John David secured $7.75 million in 1997 when bought by Daly's wife, Karen Alice Peerless.
No price guidance is offered by Sotheby's on <a href="https://www.realestate.com.au/property-house-nsw-point+piper-125224890" target="_blank">realestate.com.au</a>, but around $50 million could be expected.
 
 
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Point Piper harbourfront with Chinese pagoda boathouse listed without any big bang

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There are now a record 2.05 million taxpayer individuals with an ownership interest in a rental property in Australia.
There has been a jump of 348,000 extra investors over six years, increasing at around 58,000 each tax year.
The latest release of ATO data for 2014-15 tax year show the number of individuals with the one investment property stands at a record 1.468 million.
Less than one percent of investors, or 19,198 own six or more property, despite the recent proliferation of articles about their feat everywhere but on Property Observer. 
<table class="tbl-lrg"><tbody>
<tr>
<th class="alignCentre">
Property interests
</th>
<th class="alignRight">
2012–13      
</th>
<th class="alignRight">
2013–14         
</th>
<th class="alignRight">
2014–15
</th>
</tr>
<tr>
<td>
1
</td>
<td>
1,434,211
</td>
<td>
1,445,011
</td>
<td>
1,468,949
</td>
</tr>
<tr>
<td>
2
</td>
<td>
363,705
</td>
<td>
371,038
</td>
<td>
383,505
</td>
</tr>
<tr>
<td>
3
</td>
<td>
110,379
</td>
<td>
113,897
</td>
<td>
118,412
</td>
</tr>
<tr>
<td>
4
</td>
<td>
40,283
</td>
<td>
41,360
</td>
<td>
43,239
</td>
</tr>
<tr>
<td>
5
</td>
<td>
16,600
</td>
<td>
16,982
</td>
<td>
18,231
</td>
</tr>
<tr>
<td>
6 or more
</td>
<td>
17,671
</td>
<td>
18,231
</td>
<td>
19,198
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
1,982,849
</td>
<td>
2,006,519
</td>
<td>
2,051,534
</td>
</tr>
</tbody></table>
Source ATO 
An interest in a property means the property is solely owned, jointly owned or part-year owned.
Looking further back the taxation statistics for the 2009/10 financial year showed that there were 1.7 million individuals who owned a rental property.
 <img class="aligncenter size-full wp-image-2079" src="https://blog.corelogic.com.au/wp-content/uploads/2013/05/Individuals-interest-in-rental-property.jpg" alt="Individual's interest in rental property" width="500" height="283">
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The number of Australians with rental property investments rises to 2.05 million

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The Avalon Beach village restaurant space that cafe queen Jackie Milijash bought just before her death last year sold ahead of yesterday's scheduled auction.
The beloved business woman had secured the Old Barrenjoey Road commercial property with a view to opening a new coastal establishment.
She'd given the existing restaurant and bar premises a makeover with the intention of eventually redeveloping the site with plans by Iain Halliday from BKH. 
Lara Rowell at Fine &amp; Country Avalon Beach sold it to the neighbouring owner for around $1.85 million.
Milijash was credited with helping create Sydney's cool cafe culture with Jackies at Bondi then Paddington which is now operated by former staffer turned foodie Myles Davis, who's back from the London cafe scene.
She had owned a Paddington terrace home just around the corner on Gipps Street which she sold in 2015 for $1.95 million, having paid $1.22 million in 2011.   
This article first appeared in the Sunday Telegraph.
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Late cafe queen Jackie Milijash's Avalon Beach restaurant sold

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<img src="https://counter.theconversation.edu.au/content/75612/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A recent survey of 400 multinational corporations found that two-thirds plan to implement shared-desk workplaces by 2020. But research shows these arrangements have a range of outcomes, many of which are negative. 
A recently published study of 1,000 Australian employees found that shared-desk environments had a number of problems. These included increased distrust, distractions, uncooperative behaviour and negative relationships. On top of this, there was a decreased perception of support from supervisors. 
Another study showed that shared-desk environments can lead to employee marginalisation, indifference and inattention to co-workers, loss of identity and decreased organisational commitment.
These studies and more should sound a cautionary note against the uptake of shared-desk arrangements.
<h2>Changing workspaces</h2>
Office spaces are changing rapidly thanks to remote work, technology and the need to innovate. But cost is also a big factor. 
Office space is typically the second-biggest cost for organisations. And some research suggests that up to 40% of office space is vacant at any one time. 
The cost of offices is one of the drivers of shared-desk work arrangements, which fall into two categories: hot-desking and activity-based working. By using these arrangements, an employer can fit more workers into an existing space and more efficiently use the available space.
Hot-desking is where employees either share a desk with others or are not assigned a permanent desk and must find one when needed. Hot-desking arose as a strategy to save on space and to cater to the needs of employees who largely worked outside the office.
Activity-based work, by contrast, assumes all employees work flexibly and will seek out a range of different spaces to undertake different tasks. As such, these workspaces provide a range of work settings for different types of activities such as meetings, collaboration, private work, creativity and concentration. Employees are expected to switch between these settings as necessary.
Proponents of activity-based work claim that cost is not a major driver of its uptake. Rather, companies have implemented it to attract and retain talent, and increase collaboration and innovation, employee well-being and sustainability.
But plenty of research shows negative effects of shared-desk workplaces. These negatives potentially outweigh the benefits.
<h2>Diving into the research</h2>
Some studies have suggested that having a permanent desk may not be as important as the overall layout of the office, or the freedom to personalise that space. 
But employees without an assigned desk complain of desk shortages, difficulty finding colleagues, wasted time and limited ability to personalise their space. And, as I noted earlier, hot-desking has been found to result in higher levels of distrust, fewer co-worker friendships and decreased perceptions of supervisory support.
Meanwhile, research on activity-based work has shown that it is likely to work best for employees who see themselves as mobile and independent, and who have largely self-contained work processes. For those who work well in these environments, the ability to select a workstation or area based on individual needs and preferences is seen as a positive. Another positive is the ability to avoid unwanted social interaction when necessary, by working in a quiet space, for example.
However, the flipside of activity-based work is workers who have troublefinding privacy or concentrating. Further research shows that employees rarely, if ever, switch between different work settings. While those who did switch workstations were found to be more satisfied, there were strong objections among those who didn’t.
Activity-based work can also have an impact on the social dynamic in the workplace, creating tensions between those who come into the office and use certain spaces regularly, and those who don’t. Lastly, it can create additional work, as workers must find and set up a workspace, move between locations, and then remove everything at the end of the day. 
So while hot-desking and activity-based work are touted as increasing communication, collaboration and efficiency, research shows there are other outcomes as well. While these environments can work well for some employees – those who are highly mobile and autonomous, for instance – the research shows that many employees do not work well in these environments. 
A one-size-fits-all solution is unlikely to succeed. Implementing one may have negative impacts on the organisation as well as workers. Employers need to accommodate differences in individual employees and in the type of work they undertake. Additionally, research has shown that management style, as well as social and cultural factors will have a significant impact on whether activity-based work is successful. 
Workplaces should be designed to support both well-being and productivity. This requires a more nuanced approach.
Libby Sander is lecturer, Bond Business School, Bond University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/libby-sander-143232" target="_blank">here</a>.
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The research on hot-desking and activity-based work isn’t so positive

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Joel Robinson

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

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.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
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.”
</section>

[smartcode_project_cta:default project_id=4896]

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, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, 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.

Jonathan Chancellor

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