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<p><span>GUEST OBSERVER</span></p>
<p><span>December saw a continuation of the recent trend of softer price growth in tier-1 cities and sustained price gains for tier-2 and 3. </span></p>
<p><span>Of the 70 cities reporting, 46 responded that the price of new dwellings had increased in the month; similarly, 45 cities also saw monthly gains in the secondary market.</span></p>
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<p><span>While down from their respective peaks of 65 (April 2016) and 60 (September 2016), price growth for new and existing dwellings clearly remains robust and broad based. There has been an increase in the number of cities reporting price declines for new builds, but these remain well below the level seen in 2015. </span></p>
<p><span>Over the year, price growth in tier-1 cities remains strong despite having moderated since April. For new builds, prices are currently up 24.9 percent/yr. Price growth in the existing market is a little stronger at 28.8 percent/yr. </span></p>
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<p><span>As we have outlined on a number of occasions, much of the deceleration in annual price growth in tier-1 cities has come as a result of a material slowdown in Shenzhen, from 62.5 percent/yr in April to 23.5 percent/yr currently (for new homes). </span></p>
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<p>In effect, Shenzhen has come back to the pack, with Beijing and Guangzhou seeing sustained annual growth circa 22 percent/yr over that time and Shanghai having slowed from 32.9 percent/yr (September 2016) to 26.4 percent/yr.</p>
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<p><span>Price growth in tier-2 and tier-3 cities was also very healthy in December, respectively at 12.0 percent/yr and 8.8 percent/yr for new builds. The outcomes for existing dwellings were similar albeit a little softer, at 9.6 percent/yr and 5.7 percent/yr. </span></p>
<p><span>Authorities will be pleased that momentum has broadened outside of tier-1 in a sustained manner. Looking ahead, additional demand for domestic property is likely to build as a result of households being unable to (legally) invest abroad.</span></p>
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<p> </p>
<p><span>Currently the construction and investment data is only available to November. Till then it is apparent that the inventory of unsold homes and current construction projects continued to be worked through. However, we are yet to see new project starts respond. </span></p>
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<p><span>If confidence in the housing market and the broader economy is sustained, then a (likely modest) pick-up in starts is only a matter of time. </span></p>
<p><em>Elliot Clarke is senior economist, Westpac and can be contacted <a href="https://www.westpac.com.au/" target="_blank">here</a>.</em></p>
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New dwelling price increases for December in China

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<p class="x_MsoNormal" style="text-align: left;" align="center">GUEST OBSERVER</p>
<p class="x_MsoNormal"><span>Houses outshone units across Melbourne in 2016, but 2017 may well be the year of the apartment for the astute investor.</span></p>
<p class="x_MsoNormal">Period- or older-style apartment performance was sluggish in 2016 across Melbourne, with activity, rental and capital growth rates measured relative to houses. There was a dampening effect caused by an excessive boom in the high-rise or multi-unit sector over recent years.</p>
<p class="x_MsoNormal"><span>But it is evident from ABS financing and building approval numbers that the much-needed correction in the multi-unit sector has begun, and prices and volumes of new supply in this category will continue to shrink over 2017.</span></p>
<p class="x_MsoNormal"><span>Consequently, there is a strong case to be made that period style apartments are undervalued at the moment. Indeed, with investors looking for safer assets in 2017, we anticipate a rush-to-quality out of high rise and into older-style apartments and houses.</span></p>
<p class="x_MsoNormal"><strong><span>Growth continues in 2017. Around 5 to 10 percent in inner suburbs.</span></strong></p>
<p class="x_MsoNormal"><span>Although residential property has performed strongly in Melbourne over the last four years, don’t be surprised if 2017 sees further growth.</span></p>
<p class="x_MsoNormal"><span>Underpinning this view is evidence of persistent buyer demand off the back of lower interest rates, and a shortage of stock on the market. This shortage of stock is essentially the result of four years of buoyant sales volumes exhausting the pool of discretionary vendors. Eventually, one would expect potential sellers to respond positively to the price growth signal out there, but it hasn’t happened yet, and it may not eventuate until sometime in mid-2017.</span></p>
<p class="x_MsoNormal"><span>Furthermore, the broader fundamentals of the market remain benevolent:  a rising population, a relatively steady economy – with unemployment appearing to be stabilising around 6% – and, of course, low interest rates.</span></p>
<p class="x_MsoNormal"><span>In-demand property types in the inner and middle ring suburbs should record solid capital growth of around 5 to 10 per cent in 2017. But lower-demand properties in the high rise CBD sector and outer suburban areas will see little growth.</span></p>
<p class="x_MsoNormal"><strong><span>Paul’s tips for those considering property in 2017.</span></strong></p>
<p class="x_MsoNormal"><strong><span>Don’t procrastinate</span></strong><span>. The Melbourne auction market remained unusually active right up to the final weekend of the year. This augurs well for 2017, as our experience is that a late end-of-year run invariably heralds a good start to the following year. If you are a prospective buyer, don’t make the mistake of waiting to see what happens in February and March before jumping in. You may find that property prices are 5 per cent higher in April than they finished 2016.</span></p>
<p class="x_MsoNormal"><strong><span>Don’t place too much weight on overseas events.</span></strong><span> The commentariat spent much of November and December agonising over the implications of the coming Trump presidency. Just know that the Australian property market has been subject to numerous external shocks that were supposed to damage it  – the GFC, the tech wreck, wars and international terrorist events – and didn’t.</span></p>
<p class="x_MsoNormal"><strong><span>Focus on what you can control.</span></strong><span> Whilst you can’t control what happens to the world economy or who is in the White House, you can control the property assets that you invest in.  Make getting that right your priority. Focus on selecting high quality property with a track record and propensity for capital growth.</span></p>
<p class="x_MsoNormal"><em>Paul Nugent is a director of Wakelin Property Advisory and can be contacted <a href="https://www.wakelin.com.au" target="_blank">here</a>. </em></p>
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Investors will rediscover value in period-style Melbourne apartments: Paul Nugent

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<p><span>GUEST OBSERVER</span></p>
<p><span>The Urban Taskforce acknowledges the incredible position that Mike Baird has achieved for the state of NSW.</span></p>
<p><span> The next Premier for NSW must be someone who continues the drive for growth with infrastructure </span><span>that has been the hallmark of Mike Baird’s term.</span></p>
<p><span>Mike Baird as NSW Premier has been a great champion of the growth of metropolitan Sydney with a </span><span>commitment towards delivering badly-needed public tr</span><span>ansport networks throughout Sydney. </span></p>
<p><span>Sydney is Australia’s global city and as a result is must develop into a well</span><span>- connected metropolis, with additional density, housing and services located around a metro rail network. </span><span>It is crucial the new Premier continue this approach to ensure Sydney’s continued success as a growing, prosperous global city with a high standard of living.</span></p>
<p><span>The alignment of infrastructure, transport and urban planning will be critical to the sh</span><span>ape of the new </span><span>cabinet once a new Premier has been appointed.</span></p>
<p><span>While the urban growth of Sydney is clearly a priority for the state, the recent Orange Bye</span><span>-election demonstrates that the NSW Government must ensure that the rural and regional areas are incorporated </span><span>into the government’s agenda.</span></p>
<p><span>According to many economic commentators NSW is starting see some head winds come its way. </span><span>The reduction in red tape and providing a planning system that gives certainty but also promotes innovation and investment in the built environment are now more than ever essential to our s</span><span>tate’s economic </span><span>success.</span><span><br></span></p>
<p><span><em>Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.</em></span></p>
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Next NSW Premier must continue to drive Sydney’s growth: Chris Johnson

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<p>GUEST OBSERVER</p>
<p>Employment rose by 13,00 in December after rising by 37,100 in November (previously reported as a rise of 39,100 jobs).</p>
<p>Full-time jobs rose by 9,300 while part-time jobs rose by 4,200. Economists had tipped a 10,000 increase in jobs.</p>
<p>Fulltime employment lifted by 95,000 in the December quarter – best result since the September quarter 2010. Over the calendar year 2016 a total of 91,500 jobs were added – the weakest result since 2013.</p>
<p>Hours worked rose by 0.4 percent in December to be up 0.7 percent over the year.</p>
<p>The unemployment rate rose from 5.7 percent to 5.8 percent in December.</p>
<p>Unemployment across states in December: NSW 5.2 per ent (November 4.9 percent); Victoria 6.0 percent (6.0 percent); Queensland 6.2 percent (6.0 percent); South Australia 6.8 percent (7.0 percent); Western Australia 6.6 percent (6.9 percent); Tasmania 6.4 percent (6.3 percent). In trend terms unemployment in the Northern Territory was steady at 3.6 percent; ACT unemployment was steady at 3.7 percent.</p>
<p>A raft of companies is affected by the employment data but especially those dependent on consumer spending. Amongst stocks affected are Fairfax, West Australian Newspapers, Seek Limited, McMillan Shakespeare and Skilled Group.</p>
<p>What does it all mean?</p>
<p>Employment rose by marginally more than forecast with 13,400 new jobs created in December. For the 2016 calendar year a total of 91,500 jobs were added – the weakest result since 2013. From the perspective of the labour market, 2016 could be classified as a mixed year. One that also confused policymakers - with employment growth was soft over the year but the unemployment rate kept sliding, eventually falling to three-year lows. It was clearly a year, where employers were managing their workforce (cost base) very closely due to a subdued economic environment. In effect, the labour market was largely marking time over the majority of 2016 but there are initial signs of a shift coming.</p>
<p>The modest jobs growth in December, may not sound like much, but couple it with the solid job gains in October and November and it clearly shows a shift in trend. Over the last three months of 2016, more than 67,000 new jobs were created and more importantly all of that was in full-time employment. Full time jobs surged by 95,000 in the December quarter – marking the strongest quarterly growth in more than six years. The shift in the employment landscape is even more evident when you consider that the first nine months of 2016 saw paltry jobs growth of just over 24,000 with full-time jobs going backwards.</p>
<p>Looking forward, the outlook is certainly more encouraging. Job vacancies are holding near 5-year highs, in addition anecdotal evidence suggest activity levels amongst the business sector is lifting. The strength in commodity prices is also a positive and should support an improvement in employment across the resource states in coming months. It is still early days, but the last three months are certainly more upbeat.</p>
<p>The Reserve Bank is likely to look through the latest result and wait on timelier forward looking data. Reserve Bank commentary towards the end of 2016, suggests policymakers are relatively optimistic about Australia’s medium-term growth prospects. Over the next few months the Reserve Bank would be looking to see the impact of the lift in commodity prices - on growth as well as inflation. However the key would be a lift in non-mining business investment. CommSec expects interest rates to remain on hold over 2017.</p>
<p class="x_csbulletlv10"> <em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></p>
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Full-time jobs post best quarterly growth in six years: CommSec's Savanth Sebastian

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<p>Economist Saul Eslake does not think the RBA will raise rates simply to dampen property price inflation if for some reason prices run along at a much higher-than-expected rate during 2017.</p>
<p>When it comes to the outlook for house prices in Australia in 2017, Eslake says its is unwise to talk about the Australian housing market as a single, homogeneous entity.</p>
<p>"There is a considerable divergence between supply and demand conditions across Australia, and among Australia's major cities," he noted.</p>
<p>In Perth and Darwin, in the aftermath of the mining investment boom and with population growth slowing sharply, property prices have begun to decline and Eslake says "will likely fall further this year.</p>
<p>By contrast, population growth in Victoria is accelerating (reaching a seven-year high in mid-2016) so Eslake says "even though there is a lot of new supply coming on-stream in Melbourne, prices could still keep rising during 2017, albeit at more moderate rates.</p>
<p>"There might conceivably be more risk in Sydney – where new housing supply is picking up more rapidly than in Melbourne while population growth has begun to slow – although at least partly offsetting those risks is that the new supply is less geographically concentrated in Sydney than it is in Melbourne (or Brisbane).</p>
<p>In the absence of any obvious trigger for prices to start falling, Eslake says he thinks that Sydney will see further property price increases in 2017.</p>
<p>"But at a more sedate pace than in 2015 or 2016.</p>
<p>"I should add, I don't think this is a good thing – I don't believe that Australia's long-term economic and social interest is well-served by ever-rising property prices, or by an entrenched belief that property prices only ever go one way.</p>
<p>"I don't think it's a good thing that lending to property investors has started to rise again, after slowing during 2015-16 in response to the tightening in lending standards dictated by APRA."</p>
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Melbourne property prices could rise during 2017: Saul Eslake

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<p>GUEST OBSERVER</p>
<p>Consumer confidence: The Westpac/Melbourne Institute survey of consumer sentiment rose by 0.1 percent in January to 97.4. The confidence index is up 0.1 percent on a year ago.</p>
<p>Dwelling starts: Starts fell by 2.8 percent in the September quarter after falling by 7.2 percent in the June quarter. Building work done fell by 5.5 percent in the quarter to be up 1.4 percent on the year.</p>
<p>As at the September quarter, a record 218,297 homes were being built, up 12.1 per cent on a year ago.</p>
<p>In the year to September, dwelling starts were at record highs in NSW (70,326) and 79 percent above the decade average. In Queensland starts were at 21-year highs (49,939) and 36 percent above decade averages.</p>
<p>The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending. Building &amp; building material companies are affected by dwelling starts including Boral, James Hardie, Adelaide Brighton, Brickworks, AV Jennings Limited, Devine Limited and Beacon Lighting.</p>
<p>What does it all mean?</p>
<p>The latest monthly reading on consumer sentiment suggests consumers are non-plussed about life. But the more timely Roy Morgan weekly survey suggest consumers are super chipper about the current environment. In addition the monthly consumer sentiment reading suggests that sentiment lifted by between 1.9 percent and 7.4 percent across the major capital cities, yet the overall reading only lifted by a sedate 0.1 percent. </p>
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<p>So just how are consumers faring? The outcome is likely to be somewhere in the middle. Consumers are modestly upbeat and more importantly household finances remain in good shape. Interestingly the weekly and monthly consumer sentiment readings seem to agree on one key point - the measure on whether it is a good time to purchase a major household item? Well, it seems there is no time like the present, with both readings recording a four or five-month high.</p>
<p>Looking forward, a potential dampener to sentiment is likely to be the lift in petrol prices. However the stronger Australian dollar should help to offset that in coming weeks. The ongoing strength in sharemarkets should provide a degree of support to household confidence. Interestingly the measure of whether it was a good time to buy a major household item remains upbeat despite the latest fall.</p>
<p>What do the figures show?</p>
<p>Consumer confidence</p>
<p>The Westpac/Melbourne Institute index of consumer confidence rose by 0.1 percent in January to 97.4. The confidence index is up 0.1 percent on a year ago.</p>
<p>The current conditions index fell by 0.5 percent while the expectations index rose by 0.5 percent.</p>
<p>Three of the five components of the index rose in January:</p>
<ul>
<li>The estimate of family finances compared with a year ago was down by 7.6 percent; </li>
<li>The estimate of family finances over the next year was up by 0.3 percent;</li>
<li>Economic conditions over the next 12 months was up by 2.5 percent;</li>
<li>Economic conditions over the next 5 years was down by 1.4 percent;</li>
<li>The measure on whether it was a good time to buy a major household item was up by 4.9 percent.</li>
</ul>
<p>Gender &amp; demographics: Men (index reading of 102.9, up 5.2 percent) were still more optimistic than Women (99.6, up 2.8 percent). The sentiment index for young people fell by 0.6 percent to 119.3 in January. Across the other demographics: 25-44 years (index 99.3, down by 1.3 percent); 45 years plus (index 98.3, up by 9.5 percent). </p>
<p>Housing outlook: A good time to buy a dwelling? The index was down 2 percent in the month to 100.9 and was down by 10.7 percent over the year.</p>
<p>States: NSW (103.8, up by 2.7 percent); Victoria (index 103.7, up 5.7 percent); Queensland (99.6, up 3.2 percent); Western Australia (95.2, up 7.4 per cent); South Australia (92.8, up 1.9 percent).</p>
<p>Dwelling starts</p>
<p>Dwelling starts (commencements) fell by 2.8 percent in the September quarter after falling by 7.2 percent in the June quarter. House approvals fell by 1.8 per cent and apartments fell by 0.7 percent. Work started on 229,295 new dwellings over the year to September, easing further from the record high of 232,018 dwellings in the year to March.</p>
<p> </p>
<p>Across Australia, starts in the September quarter fell in six states/territories: NSW (up by 5.8 percent); Victoria (down by 9.6 percent); Queensland (up by 6.3 percent); South Australia (down by 20 percent); Western Australia (down by 13.6 percent); Tasmania (down by 0.6 percent); Northern Territory (down by 7.6 percent); and the ACT (down 39.6 percent).</p>
<p>In the year to September, dwelling starts were higher than the decade average in all the states &amp; territories except for South Australia (down 1 percent), Western Australia (down 3.5 percent), Tasmania (down 15 percent) and Northern Territory (down 12.6 percent). Starts were at record highs in NSW (70,326) and 79 percent above the decade average. In Queensland starts were at 21 year highs (49,939) and 36 percent above decade averages.</p>
<p>What is the importance of the economic data?</p>
<p>Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. According to Melbourne Institute: “The survey of consumer sentiment was first undertaken in 1973 and was conducted on a quarterly basis until 1976, a six-weekly basis from 1976 to 1986, and has been conducted monthly ever since.” Confident consumers may be more inclined to spend, especially on major items.</p>
<p>The Australian Bureau of Statistics releases data on dwelling commencements (starts) each quarter. The figures provide guidance on future construction activity. If construction begins on new houses or apartments, it signifies work for building trades.</p>
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<p>What are the implications for interest rates and investors?</p>
<p><span> </span><span>There are a few headwinds for consumer confidence. No doubt the lift in oil prices and the resulting lift in petrol prices does have a direct impact on household budgets. In addition, the ongoing rebalancing of the Australian economy away from mining to housing and uncertainty about future housing supply in Sydney, Melbourne and Brisbane will occupy policymaker discussions in coming months. Overall the Reserve Bank is comfortably on the sidelines looking to see how the economy evolves over the early part of 2017. </span></p>
<p><span><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>.</em></span></p>
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NSW leads national building boom: CommSec's Savanth Sebastian

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<p>The chief executive of the real estate franchise business LJ Hooker, Grant Harrod has resigned.</p>
<p>It follows a decision by the board to ditch plans for its $400 million float on the ASX.</p>
<p>"The company was looking to IPO and when I came onto the board in 2014 it was a key objective," Mr Harrod told The Australian Financial Review.</p>
<p>"Now the board has made the call of not wanting to proceed and that has made the role redundant for me.</p>
<p>"My skills are not going to be utilised."</p>
<p>He advised that the company had no debt issues and its funding lines were secured until 2020.</p>
<p>Mr Harrod was hired three years ago after serving as chief executive of listed companies including the communication technology group Salmat Limited and office products company Corporate Express.</p>
<p>LJ Hooker's national market share sits behind Ray White with around 7 per cent.</p>
<p>The agency now hired global talent acquisition firm MitchelLake Group to conduct a search for a new chief executive.</p>
<p>LJ Hooker is one of the nation's best-known brands with more than 700 franchise offices and 8000 people across Australia and in New Zealand, the Pacific and Asia. </p>
<p><span>Grant is also a director of Local Measure, a location based social media monitoring and customer experience management start-up technology company.</span></p>
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Grant Harrod quits LJ Hooker

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<p>GUEST OBSERVER</p>
<p>ABS figures for November 2016 demonstrate strength in lending for new housing.</p>
<p><span>Lending for new housing - to both owner occupiers and investors - turned in strong results in this latest ABS update.</span></p>
<p><span>The new home building </span><span>sector will continue to provide strong support to the broader Australian economy through the </span><span>first half of 2017.</span></p>
<p><span>The number of owner occupier loans for the construction or purchase of a new dwelling increased by 2.7 per cent in November 2016. Meanwhile the value of lending for construction investment reached a new record on a moving annual basis. </span></p>
<p><span>The new home lending cycle has peaked, but the November results confirm that the elevated volumes of lending we have seen over the last three and a half years remained in play as 2016 neared an end</span><span>. </span></p>
<p><span>T</span><span>hat’s a tick in the box for the Australian economy</span><span>.</span><span><br></span></p>
<p><span>As has been typical throughout this cycle, the profile for new home lending varies widely between states and territories</span><span>. </span></p>
<p><span>Looking beyond just today’s update, it </span><span>is not surprising that New South Wales and Victoria are faring the best overall.</span><span><br></span></p>
<p><span>Compared with 12 months ago, the number of loans for construction and purchase of new homes increased in five out of eight states and territories in November 2016. The fastest annual growth occurred in Tasmania (+28.4 percent), followed by Queensland (+20.0 percent), South Australia (+11.0 percent), New South Wales (+9.9 percent), and Victoria (+9.6 percent). The number of loans for new housing fell in November in the Northern Territory (- 57.9 percent), the Australian Capital Territory (-23.3 percent), and in Western Australia (-9.5 percent). </span></p>
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<p> </p>
<p><em>Harley Dale is chief economist at the Housing Industry Association and can be contacted <a href="https://hia.com.au" target="_blank">here</a>.</em></p>
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New house lending turns in strong result: HIA's Harley Dale

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<div class="section">GEUST OBSERVER</div>
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<div class="section">The Nov housing finance figures staged a modest lift for owner occupiers but it does looks as if investor loans are in the midst of a more constructive recovery.</div>
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<br>The total number of owner occupier approvals lifted 0.9 percentmth to be down 2.6 percent/yr, slighted better than market expectations for a flat result but less than Westpac's forecast of a 2 percent gain. Ex-refinance though, approvals were up a more solid 2.1 percent after a 1.2 percent gain in Oct.</div>
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<br>The value of housing finance approvals to investors surged 4.9% in Nov adding to the 1.5% gain in Oct. We are now in the midst of a recovery in investor finance that is more consistent with the solid recovery in the Sydney and Melbourne housing markets through Oct-Nov-Dec.</div>
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<br>The total value of housing finance approvals to both owner occupiers and investors lifted 2.2 percent/mth but was up an even more solid 3.2 percent/mth /7.4 per yr ex-refinancing.</div>
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<div class="section">The state detail ex-refinance had NSW printing a solid gain, Vic added modestly to the solid Oct gains while WA surprised with a very solid bounce almost unwinding a two month contraction. Qld continues to print robust through the year growth rates. Note that the state detail on investor finance approvals is released next week.</div>
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<br>Construction-related owner occupier finance approvals also had a solid month – construction approvals lifted 2.3 percent/mth and finance for the purchase of newly built dwellings also retraced the Oct losses with a material 3.3 percent mth lift.</div>
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<div class="section">Note that the latter includes purchases of 'off the plan' apartments, it is a poor proxy for settlements in the sector as it includes finance for purchase of other types of newly built dwellings and only covers owner occupiers and purchases by Australian residents – there are no corresponding measure for investors and all finance data is for loans to resident Australians only.</div>
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<div class="section">The complete absence of timely data on foreign buyer activity and the painfully limited data around domestic housing investor activity can be very frustrating. The finance approvals data for example relies almost entirely on data collected by APRA that continues to follow a framework that has not been materially revisited in the last 25 years. </div>
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<br>Overall the Nov finance approvals are highlighting something of a recovery with most components tending to be positive even more so for investors. This is now more in line with the recent strength in auction markets and, to a lesser extent, prices as the pickup in conditions is now showing through in the finance figures and should continue to do so in the months ahead. </div>
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<div class="section"><em>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>.</em></div>
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Investor loans in midst of recovery: Westpac's Justin Smirk

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<div class="column">The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.9 percent in November after falling by 0.6 percent in October. It was only the second rise in lending in five months. </div>
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<div class="column">The value of loans rose by 2.2 percent in November with owner loans up 0.4 percent and investor loans up 4.9 percent.</div>
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<br>The ANZ/Roy Morgan consumer confidence rating eased from four-month highs, falling by 0.7 per cent to 119.3 in the week to January 15. Confidence is up 4.6 per cent over the year and well above the average of 113.1 since 2014.</div>
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<br>The inflation expectation 2 years ahead was at 4.6 per cent, a 13-month high. Inflation expectations has now held above 4 per cent for the past 5 months.</div>
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<br>The Bureau of Statistics (ABS) reported that new vehicle sales rose by 0.3 per cent in December. The CommSec Luxury Vehicle index hit record highs in 2016 with sales of 17 luxury marques up 12.1 percent on a year ago. </div>
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<p>On its own, the lift in home loans doesn’t look overly concerning – especially given it was only the second rise in the past five months. But couple it with the lift in home prices in the latter part of last year and it suggests that the housing landscape may continue to cause policymakers a little bit of angst over 2017. Even more so when you delve a bit deeper into the data and realise that the lift in the value of loans was largely driven by investors.</p>
<p>The value of loans by investors surged by 4.9 per cent in November to be up 21.4 over the year – the strongest annual growth in 19 months.</p>
<p>If home prices continue to lift, with growth largely driven by investor loans, regulators may look at further restrictions to curb lending.</p>
<p>Household confidence remains just shy of recent four month highs. And more importantly confidence is holding well above longer-term averages. In particular, the measure of whether it was a good time to buy a major household item lifted to the highest levels in five months. No doubt the discounts offered by retailers post-Christmas are enticing households to spend a little bit more freely. </p>
<p>Interestingly the inflation expectation 2 years ahead was at 4.6 per cent in the past week - a 13-month high. Inflation expectations have now held above 4 per cent for the past 5 months. There is no doubt that inflationary pressures have bottomed out and are likely to start lifting.</p>
<p>Annual new vehicle sales are just shy of recent record highs, suggestive of underlying strength in business and consumer sentiment and finances. But the trends aren’t uniform with sales of sports utility vehicles consistently setting new highs while passenger car sales have now fallen to 20- year lows in rolling annual terms. </p>
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<div class="column">What do the figures show?</div>
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<div class="column">Housing finance - number</div>
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<div class="column">The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.9 per cent in November after falling by 0.6 per cent in October. It was only the second rise in lending in five months. Excluding the refinancing of dwellings, the number of loans was up by 2.1 per cent.<br><ul>
<li>  The number of new home loans was down by 2.6 per cent on a year ago.</li>
<li>  Loans by owner-occupiers for the construction of homes rose by 2.3 per cent in November.</li>
<li>  Loans to buy newly-erected dwellings rose by 3.3 per cent.</li>
<li>  Loans for the purchase of established dwellings (excluding refinancing) rose by 2.0 per cent.</li>
<li>  The number of refinancing transactions fell by 1.2 per cent.</li>
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<p>Lending across states/territories in November: NSW (+1.5 per cent); Victoria (+0.8 per cent); Queensland (+2.4 per cent); South Australia (-1.3 per cent), Western Australia (-0.7 per cent); Tasmania (-1.0 per cent); Northern Territory (+2.7 per cent); ACT (+0.2 per cent).</p>
<p>Housing finance - value</p>
The value of new housing commitments (owner occupier and investment) rose by 2.2 per cent in November after rising by 0.5 per cent in October. Owner-occupier loans rose by 0.4 per cent but investment loans rose by 4.9 per cent.<br><p>The value of loans by owner-occupiers and investors to build new homes rose by 14.2 per cent in November after falling by 1.7 per cent in October. The value of loans to build new homes rose to an 8-month high of $3.07 billion in November.</p>
<p>Housing finance – other statistics</p>
<p>The proportion of first-time buyers in the home loan market rose from 13.7 per cent to 13.8 per cent in November (long-term average 19.4 per cent).</p>
The proportion of fixed rate loans eased from 12.8 per cent to 12.5 per cent in November. And the average home loan across Australia stood at $376,600 in November, up 3.6 per cent in the month but down 1.6 per cent on a year ago.</div>
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<p><span>Consumer confidence </span></p>
<p>The ANZ/Roy Morgan consumer confidence rating eased from four-month highs, falling by 0.7 per cent to 119.3 in the week to January 15. Confidence is up 4.6 per cent over the year and well above the average of 113.1 since 2014. Two of the five components of the index rose in the latest week:</p>
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<li>  The estimate of family finances compared with a year ago was down from +13 to +8;</li>
<li>  The estimate of family finances over the next year was down from +33 to +32;</li>
<li>  Economic conditions over the next 12 months was unchanged at +2;</li>
<li>  Economic conditions over the next 5 years was up from +11 to +12;</li>
<li>  The measure of whether it was a good time to buy a major household item was up from +41 to +43 – the strongest reading in 5 months.</li>
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<p>In addition the inflation expectation 2 years ahead was at 4.6 per cent, a 13-month high. Inflation expectations has now held above 4 per cent for the past 5 months.</p>
<p>New car sales:</p>
According to the Australian Bureau of Statistics (ABS) new vehicle sales rose by 0.3 per cent in December after falling by 0.7 per cent in November. Passenger car sales rose by 3.6 per cent, while sales of sports utility vehicles fell by 3.3 per cent and sales of “other” vehicles (includes utilities, panel vans, cab chassis, goods carrying vans, rigid trucks, prime movers, non-freight carrying trucks, and buses) rose by 0.7 per cent.</div>
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<br>New vehicles sales were up by 0.2 per cent over the year. Passenger car sales in December were down by 4.2 per cent over the year, while SUVs sales were unchanged and “other vehicles” were up by 10 per cent.<br><p>In rolling annual terms, 1,178,133 new vehicles were sold over the 2016 calendar year. Sales of SUVs (441,023) eased from record highs in annual terms, while annual sales of “other” vehicles stood at a record high of 250,853. Sales of passenger vehicles fell to a 20-year low of 486,257 in the year to December.</p>
<p>CommSec Luxury Vehicle index</p>
The CommSec Luxury vehicle index hit record highs in 2016. Sales of 17 luxury marques totalled a record 106,658 units in 2016, up 12.1 per cent on a year ago. Luxury vehicles now account for 9.17 per cent of total vehicle sales and a record 11.50 per cent of passenger cars and SUVs alone.</div>
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<br>The CommSec Luxury vehicle index includes Audi, Aston Martin, BMW, Bentley, Ferrari, Hummer, Jaguar, Lamborghini, Lexus, Lotus, Maserati, Maybach, Mercedes-Benz, Mclaren, Porsche and Rolls Royce.</div>
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<br>In 2016 record sales were recorded by Audi, BMW, Ferrari, Jaguar, Lamborghini and McLaren.<br><p>Luxury auto sales have been running at a double-digit annual rate for almost four years.</p>
<p>What is the importance of the economic data?</p>
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.</div>
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<br>The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.<br><p>The Australian Bureau of Statistics provides seasonally adjusted and trend estimates of industry data. The Federal Chamber of Automotive Industries releases estimates of car sales on the third business day of the month. The figures highlight the strength of consumer spending as well as conditions facing auto &amp; components companies.</p>
<p>What are the implications for interest rates and investors?</p>
<p> Looking forward, policymakers will keep a close eye on how the rebalancing of the domestic economy (away from mining investment) is keeping pace. Inflation and housing activity are likely to be closely watched over 2017. </p>
<p><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></p>
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Investor loans soar, inflation makes a comeback: CommSec's Savanth Sebastian

<p>Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;</p>

<p>The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;</p>

<p>St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;</p>

<p>Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.</p>

<p>Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;</p>

<p>"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;</p>

<p>"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;</p>

<p>Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;</p>

<p>Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;</p>

<p>The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;</p>

<p>St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.</p>

<p>[smartcode_project_cta:default project_id=151826]</p>


Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<p><a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.</p>

<p>Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.</p>

<p>The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.</p>

<p>The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.</p>

<p>Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.</p>

<p>[smartcode_project:default project_id=7574 project_image_fid=351654]</p>

<p>Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.</p>

<p>“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.</p>

<p>“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.</p>

<p>“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.</p>

<p>“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”</p>

<p>2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.</p>

<p>The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.</p>

<p>A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.</p>


Sherpa acquires new site for second Brisbane apartment tower

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>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.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>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.</p>

<p>"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.</p>

<p><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" /></p>

<p>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.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>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.</p>

<p>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.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>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.</p>

<p>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.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>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.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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;</p>

<p>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.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"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.</p>

<p>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.</p>

<p>A major focus of the design has been the public domain.</p>

<p>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.</p>

<p>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.</p>

<p data-end="239" data-start="66">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.</p>

<p data-end="442" data-start="241">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.</p>

<p data-end="661" data-start="444">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.</p>

<p data-end="909" data-start="663">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.</p>

<p><em>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></em></p>

<p data-end="1339" data-start="1019">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.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">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.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">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.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">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.</p>

<p><em>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></em></p>

<p><em>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></em><br />
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">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.</p>

<p data-end="843" data-start="497">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.</p>

<p data-end="1109" data-start="848">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.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>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.</p>

<p>"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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


Jonathan Chancellor

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