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GUEST OBSERVER
As the weather heats up, Australian households won’t just be cranking up the air conditioning for themselves. Some households will be turning it on for their dogs or cats. 
Our research on energy demand and household cooling highlights a recent trend towards air-conditioning rooms or homes for pets. As well as cooling homes occupied by both humans and their furry friends, air conditioners may be left on when dogs or cats are home alone. 
Some pet owners also leave doors and windows open for their dogs and cats to move between indoor and outdoor areas. This means that air conditioners have to work harder and use more energy to maintain indoor temperatures.
Our research is consistent with an emerging international trend towards the “humanisation of pets”, which is contributing to energy use in households. 
A 2013 study released by E.ON UK (a UK power company) on “hot-dogs and thermo-cats” found that more than half (52%) of UK pet owners turn up the heating for their pets when they go out. Some UK households also leave radios or televisions on for pets so that they don’t get lonely when their owners leave the home.
In other areas of everyday life, cats and dogs now play iPad games, eat specialised diets, have heated mats or air-conditioned kennels, and have their own fashion accessories and electronic toys.
The energy impacts of home cooling
On average across Australia, heating and cooling make up 40 percent of our energy use in households, not including hot water. 
Most Australians who live in southern states use cooling in their homes sporadically, turning it on during hot summer afternoons and evenings when they get home from work or other activities. The rapid growth in residential air conditioning for this purpose has been one of the main contributors to Australia’s peak electricity demand, which has increased energy bills.
Trends in pet cooling could change the energy demand for cooling in homes. Australia has one of the highest rates of pet ownership in the world, with 63% of households keeping an animal as a pet. 
According to a 2013 report by the Animal Health Alliance, there are 4.2 million pet dogs and 3.3 million pet cats in Australia. Of these, 76% of dogs and 92% of cats are kept exclusively or partly indoors. 
Providing air conditioning for pets during the day when people aren’t at home would raise residential energy demand. It could also extend and possibly increase electricity peaks if more areas of the property (such as kennels or garages) are being cooled for a longer time.
What makes pets hot?
Although cats and dogs differ in their physiology, in general older, sick or overweight pets may be less resilient to the heat. Some breeds may also be more vulnerable than others. 
For example, short-snout dog breeds (Bulldogs, Pekes and Pugs) are more likely to suffer from heatstroke. This also applies to short-faced cats like Persians or exotics. 
Many things can exacerbate heat stress for pets. For example, people living in apartments may find it more difficult to provide cool outdoor spaces for dogs, or to engage in “waterplay”, as recommended by Pets Australia.
How to keep pets cool
Advice on how to keep pets cool varies and is different for cats and dogs. Pets Australia recommends providing cool spaces such as shade, cold tiles or digging holes in the soil. Other examples include giving dogs cool treats like frozen meat, providing lots of water for hydration and stopping exercise. 
Some websites recommend keeping pets inside on hot days, preferably with an air conditioner or fan turned on. Other sites recommend cooling mats or vests such as gel pads, which can be refrigerated or frozen prior to use. 
Murdoch University provides advice on how to recognise heatstroke warning signs, and what to do if you suspect your pet is suffering from heatstroke. The growing market for pet cameras is one way to keep an eye on pets while owners are out of the house. 
What needs to be done?
As climate change continues to increase the severity and duration of heat waves, the incidence of heatstroke in pets is likely to increase too. This applies especially to those living in energy-inefficient housing or with access to poor-quality outdoor environments. 
There is a clear need to seriously consider pet cooling in the design of energy-efficient housing and in energy policy that targets households.
It may also be timely to reconsider pet types and breeds appropriate for the Australian climate. Siberian huskies, for example, prefer cooler climates and may be more likely to suffer from heatstroke than breeds with smooth or short coats.
More research is also needed to understand how Australian households are changing the ways they keep their pets cool, and what can be done to reduce heat stress in pets without increasing energy demand or electricity peaks in homes.
In the meantime there is a range of advice on how to keep pets cool. Many creative solutions are available that don’t require leaving the air conditioner running.
Yolande Strengers is senior research fellow, Centre for Urban Research, RMIT University and can be contacted <a href="https://theconversation.com/profiles/yolande-strengers-15350" target="_blank">here</a>.
Cecily Maller is vice chancellor's senior research fellow, Centre for Urban Research, RMIT University and can be contacted <a href="https://theconversation.com/profiles/cecily-maller-15732" target="_blank">here</a>. Larissa Nicholls is research fellow, RMIT University, and can be contacted <a href="https://theconversation.com/profiles/larissa-nicholls-109087" target="_blank">here</a>.
All are authors for The Conversation.
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Hot dogs and cool cats: keeping pets cool without blowing your energy bill

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GUEST OBSERVER
Respondents to the ANZ-Property Council Survey report a more optimistic outlook for the property sector in 2017.
Confidence rose to a two-year high, supported by stronger expectations of economic growth, capital values, and forward work schedules.
Sentiment is still strongest in New South Wales, while the outlook for Queensland’s property market looks to have bottomed, and is embarking on a tentative recovery.
Firms nationwide now expect interest rates to rise over the next 12 months. This likely reflects a combination of the RBA cutting cycle reaching an end, and recent increases in bond yields and retail interest rates – especially in the housing market.
Confidence in residential property rose significantly, in line with other positive data flow on the housing market in recent months, including price growth, auction results, and investor finance.
Commercial property sentiment remains elevated, especially in the tourism sector. The improvement in the outlook for commercial offices is also encouraging.
ANZ chief economist Richard Yetsenga said the first quarter ANZ-Property Council Survey shows a further increase in sentiment in the property sector, despite the sharp slowdown in economic growth prior to the survey.
"Nonetheless, we believe growth will continue to pick up through 2017, with most of the Q3 weakness proving to be only temporary," he said.
"Our solid outlook for the Australian economy in 2017 is broadly consistent with the strong tone to this quarter’s survey. Sentiment in New South Wales’, Victoria’s, and the ACT’s property markets sits around record levels, in line with the transition away from mining-led growth. A stronger non-mining economy means that we believe the RBA’s easing cycle is over, and we expect rates will remain on hold this year.
A noteworthy feature of this quarter’s survey is that businesses nationwide now expect interest rates to increase over the coming year. This reflects both the RBA being at the end of their easing cycle, as well as tighter funding conditions. But as of yet, there is little sign that the likelihood of higher funding costs is having an adverse impact on the property sector.” 
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The March quarter survey showed that firms are considerably more optimistic around the outlook for the property sector. Confidence reached a 2-year high, with 31 percent of respondents expecting conditions in the property market to improve over the next 12 months.
The outlook remains quite mixed across the states, with New South Wales still leading the way (Figure 1), while Western Australia continues to feel the negative effects of declining mining investment. Encouragingly, sentiment in Queensland appears to be showing some signs of a base.
Queensland tends to get lumped with Western Australia as a ‘mining state’, but the transition to growth outside the mining sector appears much more advanced in the eastern state. Recent GDP data show that Queensland’s business investment has increased for the past two quarters, and in annual terms is much less of a drag on the state economy compared to 12 months ago.
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Consistent with this result, ANZ-Property Council respondents in Queensland are reporting a more positive state economic outlook and generally rising capital values over the next year.
One trend that is consistent across the states is the expectation that interest rates will rise over the next 12 months. This is a significant turnaround from just 6 months ago, when respondents in all states expected rates to move lower (Figure 2).
We believe this changed outlook reflects two influences. First, it is increasingly likely that the RBA is now at the end of its easing cycle, after having cut rates again in August. Second, bond yields have been rising for the past few months, and even more recently housing investors have seen their interest rates increase. All in all, it appears highly unlikely that today’s record low interest rates will continue to fall.
Much of the improved outlook for the property market came from the residential segment, supported by improved expectations of capital price growth, forward work schedules, and construction activity (Figure 3). The stronger price growth expectations are largely in line with recent results in the housing market. House prices have returned to double-digit annual growth rates across Sydney and Melbourne, while auction clearance rates have steadily increased and now sit only a fraction lower than last year’s peak (Figure 4). Coupled with the returning presence of investors, it appears that demand for housing is reasonably steady at an elevated level.
 
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The recent improvement in work schedules and construction activity expectations is also a positive. While we expect dwelling investment to fall slightly through the second half of 2017 given the recent decline in building approvals, a significant backlog of work is likely to see construction remain around historically high levels. 
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Sentiment in the commercial property segment is still stronger than in residential property (Figure 5). The March quarter survey saw the outlook for commercial property rise to the second-highest level on record, driven by an ongoing improvement in commercial office sentiment, and still-elevated levels of confidence in the tourism industry. 
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Net confidence in the commercial offices segment has been steadily rising for nearly two years, reflecting an improving outlook for price growth and construction activity. This result is in line with ongoing absorption of office space as white-collar employment continues to rise across the major capital cities.
The outlook for the tourism industry remains very strong despite a small decline in the March quarter. A net 64% of respondents expect tourism-related construction activity will rise over the next 12 months, 52 percent believe their company’s forward work schedule will rise, and 39% forecast capital values to rise. This positive outlook is consistent with data showing the ongoing strength in Australia’s services exports, which includes tourism (Figure 6). 
Importantly, the resilience of the AUD over the past year does not appear to have had a dampening effect on tourist inflows and expenditure. This suggests the strength of the tourism sector is not solely dependent on the currency, and is supported by other factors such as the rapid wealth expansion of the Chinese middle class. This broadening of demand bodes well for the growth prospects of an increasingly key component of Australia’s economy. 
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Daniel Gradwell is economist, ANZ and Richard Yetsenga is chief economist They can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
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Property sentiment strengthens, despite higher rate expectations: ANZ Research 

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GUEST OBSERVER
Growth was considerably weaker in the third quarter of 2016 than was expected, with real GDP falling on the quarter for the first time since Q1 2011. 
However, the fall appears to reflect the coincidence of a number of one-off factors, including a temporary disruption to coal exports and inclement weather affecting construction activity, rather than the beginning of a more significant downturn. Recent numbers for retail sales, business conditions and international trade already suggest a solid pick-up in GDP growth is likely in Q4 2016. 
In addition, there has been a substantial pick-up in coal and iron ore prices recently. Although this rise did not arrive in time to support the Q3 2016 GDP numbers, it should flow through to a significant boost in income growth in Q4 2016 and beyond. Australia’s commodity price index has risen by 20% in AUD terms since Q3 2016. Our estimates suggest that the pick-up in commodity prices should add around 2.0pp to nominal GDP over the coming year.
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Overall, the strong rise in commodity prices and end of the mining investment decline are changing the local growth story. For the past five years, the Australian economic story has been about rebalancing growth away from being driven by mining investment at the end of the commodity prices ‘super-cycle’. Lower interest rates and the fall in the AUD over recent years have supported a housing boom and rising services exports, which have rebalanced growth. The mining sector is now stabilising and is no longer set to drag on growth and incomes. 
Given the recent downside surprise to GDP growth, we now expect growth of 2.4 percent in 2016 (previously 2.9 percent), rising to 2.8 percent in 2017 (previously 2.9 percent) and 3.2 percent in 2018 (unchanged). 
Although local inflation is currently below the RBA’s 2-3 percent target and wages growth is sluggish, we expect both to rise gradually through 2017. Supporting this, we see the rise in commodity prices as likely to lift national incomes, tax revenues, corporate profits and wages growth. Non-mining business investment is also already showing signs of rising modestly and, although the labour market has spare capacity, it is worth keeping in mind that job creation tends to lag the cycle, rather than lead it. We retain our view that the RBA is likely to keep its cash rate on hold at 1.50 percent through 2017 and have recently shifted our call for 2018, with 50bp of RBA hikes now pencilled in. 
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Policy issues 
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The Australian government has passed legislation to re-instate the Australian Building and Construction Commission, which is an indication that there has been some progress on labour market reform. This legislation was difficult to pass and was the trigger for the July 2016 ‘double dissolution’ Federal election. 
The government has also passed a number of fiscal reform measures, including the ‘backpacker tax’, with the measures set to save the government AUD21bn over the next four years. Tax revenues are also expected to get a boost from rising commodity prices. Offsetting these measures, slower-than-expected wages growth has weighed on the personal income tax take. The government’s focus on fiscal reform has become more pressing since one of the major rating agencies, Standard &amp; Poor’s, put the Australian government on ‘negative outlook’ for its triple-A sovereign rating in July 2016. 
Financial stability concerns remain an ongoing issue for the central bank, given a further recent pick-up in housing prices and a modest revival in investment activity in Australia’s housing market. The pick-up in housing market activity has occurred despite local prudential settings having been tightened over the past two years. The pick-up in investor credit growth adds to the case for the RBA to keep its cash rate unchanged over the next few quarters. 
Risks 
We view the risks to growth as evenly balanced. On the upside, the lift in commodity prices and boost to incomes could provide more support for growth than we currently expect. On the downside, slower-than-expected growth in China could weaken demand for Australian commodities or services exports. The risks to our inflation outlook are tilted to the downside. Changing patterns of employment could put more persistent downside pressure on wage growth, and thus local underlying inflation, than we have currently factored into our central case. 
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 <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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Commodity price rise to boost incomes: HSBC'S Paul Bloxham

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GUEST OBSERVER
At the start of a new year many of us make a number of resolutions that we wish to integrate into our lives. These resolutions can often include a commitment to eat better, exercise more or be better with our finances. Whether you’re aiming to become a better saver, or you’re wanting to save for a home deposit, the key is to not let your resolution fall flat. There are a few easy steps everyone can follow to ensure any financial resolutions become a reality. 1.  Set a goal  The key to saving more money is setting a financial goal that is specific and realistic.   You can have a large goal in mind, such as buying a home, but you should also break it up into smaller goals that will be easier to achieve.   If your goal is to save more money, give yourself a dollar figure and a target date to achieve that by, as this will keep you accountable. 
Savings calculators are helpful tools that can assist you in working out how much you can save a month and how long it will take for you to reach your savings goal.   You should review your goals at least once every six months to track how you’re doing. If you find that you are not making much progress, rather than giving up, make changes so that you can achieve your goals.   2.  Set up a budget  Mr Flavell said a budget was an essential factor in achieving any financial goal.     By creating a budget, you will have full control of your finances as you will know how much you are spending and saving.   Tracking where your money is going also allows you to make clear decisions about your purchases, see what expenses you can potentially cut back on, and plan your spending ahead of time.   A budget did not have to be too complicated.   It can be a simple document such as a spreadsheet, where you note down your income and all your expenses for the month.   The trick is to review and update it regularly to make sure it always aligns with your current financial or personal situation.   3.  Review your spending  You can boost your savings significantly by cutting back on certain expenses, or finding more affordable options. Look at your current contracts – like gym memberships and or your phone contract and see if there are easy ways for you to reduce the amount you spend each month. Call your gym up and ask for a discount, or research your phone provider options online and see if there is a cheaper supplier on the market.   While you may only save a few dollars here and there, not only does every cent count, but every cent takes you one step closer to your end financial goal. 4.  Reduce debt  Another great way to reach your financial goal faster is to pay down your existing debt.   The Christmas period is an expensive time of the year, so you have probably racked up debts on your credit card.   When you get your credit card bill, aim to pay these off completely or minimise them as soon as possible. You should also try and pay more than the minimum amount, which is typically 2 percent of your closing balance, to avoid paying additional interest.   When you pay off your debts, you free up your cash flow. This means you have more money in your back pocket each month that you can put towards your financial goals.   5.  Shop around for better deals  Now that you know how much you’re saving and how to potentially increase your cash flow, the next step is working out the best place to put your money.   If you want your money to work as hard as possible for you, you need to ensure you are saving it in the right location.   Get online and research the various options provided by Australia’s lenders. By doing your research, you will see what term deposit facilities or savings accounts will offer you the greatest return on your dollar.    Before making any final decisions however, speak with your bank or your local broker to ensure it is the right financial move for you and your end goals.
John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au/" target="_blank">Mortgage Choice</a>.
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Make your financial resolutions a reality this year: John Flavell

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The Herald Sun has revealed the sidelined Federal health minister Sussan Ley used a taxpayer-funded trip to inspect a Gold Coast property nine months before her much reported 2015 purchase.
Ms Ley stood down on Monday from the ministry pending investigations of her taxpayer-funded Gold Coast trips, with the paper suggesting the latest revelations put her future in further doubt.
The Albury-based MP’s troubles worsen after retired couple Adrienne and Stewart McEachran came forward to claim that she and her partner, Graham Johnston, inspected their home in Advancetown (pictured above and below), in the Gold Coast hinterland, in late August and on September 8 in 2014.
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Government documents reveal that Ms Ley billed taxpayers more than $2,000 in travel costs for a long weekend on the Gold Coast from September 5 to 8, 2014.
Ms Ley declined to answer queries on the latest claims, the paper said.
The selling couple said that in October, Ms Ley made an offer that was about $50,000 below the mid-$700,000 asking price, and they declined.
The Gold Coast hinterland property sold for $760,000 just a few months later.
Prime Minister Malcolm Turnbull asked Ms Ley to stand aside without ministerial pay until her travel claims had been probed by the secretary of the Department of Prime Minister and Cabinet. 
It was a defiant Ms Ley who belatedly faced the media after the Herald Sun revealed last Friday she purchased an oceanview apartment in the De Ville complex during a taxpayer-funded work trip which she said had been unplanned. 
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Federal Minister Sussan Ley's prior Gold Coast purchase offer

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GUEST OBSERVER
Australia has had a housing construction boom in recent years. Most of this has come in the form of new apartments in the major cities. 
This has generally been a positive story. With mining investment in a steep decline, having fallen by 63 percent since its peak in 2012, housing construction has helped to fill the gap. Given strong population growth and an extended period of weak housing construction when the mining boom was strong, Australia had needed to build more housing to meet demand. 
Lack of housing affordability and comparatively high housing prices also partly reflect a lack of well-located housing in the major cities. 
Five years on, the national housing undersupply is now close to being worked off. In Melbourne, Brisbane and Perth, there are some signs of an oversupply of apartments, although Sydney still appears to have an undersupplied unit market. The detached housing market does not appear to be over-supplied. 
The housing construction boom is now near its peak. Building approvals have fallen sharply in recent months. Importantly, though, given the lag between approvals and completions – which has been elongated by the large number of high-rise apartment buildings under construction – and the large stock of work-yet-to-be-done on approved dwellings, we do not expect construction to start falling until late 2017. 
Like ships passing each other in the night, we expect housing construction to start falling around the time that mining investment stops its decline. Australia’s investment outlook is then expected to be supported by mine maintenance and repair, infrastructure investment and the business investment needed to support services exports, such as tourism and education – Australia’s next growth engine. 
Having added housing supply, we expect house price growth to slow in 2017. Oversupply of apartments in Melbourne and Brisbane could see price declines in those markets. However, having not built many detached houses in recent years, we think that any apartment market shake-out is unlikely to spill over to the detached market (Downunder Digest: Australia’s many housing markets in 2017, 25 November 2016). 
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Housing boom has been a key part of the rebalancing act 
A housing construction boom, mostly driven by construction of new apartments in the major cities, has been a key element of the rebalancing act at the end of the mining boom. By cutting interest rates, over the past five years, the RBA has supported growth in housing construction, which has helped to offset the drag from falling mining investment and commodity prices. Housing investment, which was itself a drag on GDP growth of around -0.25ppts a year in 2012 and 2013, contributed around 0.4ppts a year in 2014, 2015 and 2016. This has partly offset the drag of around 1.25ppts a year on growth from falling mining investment in 2014-2016. 
Approvals are falling, but there is still work yet to be done 
The residential building boom is now coming to its end. Building approvals have fallen by 15 percent since their recent peak in August 2016 (Chart 1).
 The decline has been driven by weaker medium-density approvals, while detached house approvals have been steadier. 
A decline at some point was, of course, inevitable. The residential building boom could not continue indefinitely, as it would eventually lead to an oversupply of housing. As it stands, there is some evidence that too many apartments may be being built in Melbourne, Brisbane and Perth, although supply is not likely to outstrip demand in Sydney in the near term. 
For GDP, the fall in building approvals signals that housing investment will be a drag on GDP growth at some point. Historically, approvals have tended to lead housing investment by around 2-3 quarters (Chart 2). 
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However, given that the bulk of the building pipeline has been high-rise apartments, and that these take longer to build than detached houses, the lag between the fall in approvals and the decline in actual investment is likely to be longer than normal (Chart 3). As a result of the larger amount of high-rise apartments being constructed, there is a bigger than normal stock of work-yet-to-be done on dwellings that have already been approved (Chart 4).
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With a large pipeline of work to be completed, we expect housing investment to rise further in coming quarters and make a solid contribution to GDP growth in the next few quarters, before falling from late 2017 onwards (Chart 5). 
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Oversupply of apartments in some areas, but not of houses 
The apartment building boom has generally been a positive story. When the mining investment boom was strong too few dwellings were being built to meet demand from strong population growth and Australia had accumulated a national undersupply of housing (Downunder Digest: Australia’s housing supply ramp-up, 9 September 2015). The undersupply of well-located housing has contributed to Australia’s comparatively high housing prices and low housing affordability. The building boom has helped to work down this undersupply.
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At a national level, on our estimates, the housing market should be back in demand/supply balance by the end of 2017 (Chart 7). Of course, these estimates are subject to considerable uncertainty given the many assumptions used to calculate them. The aggregate estimates also belie variations across the states. Although construction has been strong in Sydney, it has only just recently matched population growth, with accumulated undersupply in New South Wales still yet to be worked off (Chart 8). In contrast, Melbourne has had stronger construction for longer, implying that the Victorian market is already close to balance. In Queensland and Western Australia construction has outpaced population growth for some time now (Chart 9).
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These trends help to explain the variation in housing price growth across states. Since the national price trough, in mid-2012, housing prices have risen by 69 percent in Sydney and are still rising at double-digit rates. In Brisbane, Adelaide and Perth, housing prices have risen by only 20 percent, 10 percent and 7 percent over that period, partly reflecting stronger supply relative to demand. The Melbourne market is a little more complicated, with detached house prices having risen by 55% over that period, but apartment prices only 19 percent higher. 
We expect continued solid gains in detached house prices in Sydney and Melbourne in 2017, but possible price falls for apartments in Melbourne (see Downunder Digest: Australia’s many housing markets in 2017, 25 November 2016). For Brisbane, we also expect apartment price falls, while we expect further weak housing price gains in Adelaide and further price falls in Perth in 2017. 
<a href="https://www.propertyobserver.com.au/images/2017/01/10/Screen%20Shot%202017-01-10%20at%209.57.23%20AM.png" target="_blank">Click to enlarge</a>
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Implications for policymakers 
For the macroeconomic cycle, the direct effect of the fall in housing investment, expected to be from late 2017 onwards, should be more than offset by the direct effect of the drag from mining investment disappearing, as Chart 6 shows. The indirect effects could be important though and present risks. Falling housing investment could weigh on employment in the construction industry. A shake-out in the apartment market could have a negative effect on consumer confidence and could drive a negative wealth effect. 
We suspect these risks are manageable given that the bulk of the housing stock is detached dwellings, and see limited substitutability between the detached dwellings and inner-city apartments, in particular. We do not think the expected housing construction fall will be enough to motivate the RBA to cut its cash rate as we see the negatives are being outweighed by the impact of the expected stabilisation in the mining industry. 
For fiscal authorities, the boost to housing supply should be going some way to help improve housing affordability. Expected falls in housing prices in Perth and some parts of Melbourne and Brisbane should improve affordability in those markets, by definition. More effort is likely to be needed to improve housing affordability in Sydney and in the detached house market in Melbourne. 
Policymakers ought to have a keen focus on improving urban infrastructure in these markets as it would help to improve housing affordability, support productivity growth and growth in services exports, which we see as Australia’s next growth engine. 
 <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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Apartment building boom is nearing end: HSBC's Paul Bloxham

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<div>The NSW Department of Planning will be able to step in if councils or other government agencies sit on residential approvals for too long under new laws.</div>
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<div>Aimed at relieving Sydney's chronic housing shortage, the proposed changes will see the Planning Minister also have the right to set up a planning panel on councils that are stalling on a project decision.</div>
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<div>It is a system already operating in South Australia. </div>
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The NSW development approval system has previously been labelled the worst in the world by the Property Council of NSW.
The Daily Telegraph had Prime Minister Malcolm Turnbull last week saying Sydney councils were taking three times as long to approve DAs as their counterparts in Brisbane.
The proposed changes include standardising the format of councils' development control plans, removing 400 formats that exist across the state.
Developers will also be given incentives, yet to be detailed, to resolve objections with neighbours before lodging development approvals.
It is expected to save time and money, and increase harmony, though the Australian Financial Review noted NSW Planning Minister Rob Stokes' department provided details of the legislation to the paper on the condition no groups such as Greens and local councils would be approached for comment. 
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NSW to hasten residential approvals with new planning rules

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GUEST OBSERVER
As we head into 2017, there are many reasons to view prospects with distinct nervousness.
Will the new US president follow through with his isolationist and protectionist rhetoric from the campaign trail?
How will growing populism affect the outcome of key eurozone elections, and particularly the French presidential vote?
There are huge uncertainties facing the UK over its Brexit negotiations and the medium-term growth outlook.
Moreover, very real challenges are facing certain emerging markets, particularly those with high external debt levels and now suffering from currency depreciation.
All these give real cause for concern. However, some things are going in the right direction, at least for now. Global PMIs are at their highest level for more than a year.
The US economy is robust enough for the Fed to have just carried out its second interest rate increase this decade.
Growth in China has held up remarkably well, defying financial market concerns at the start of 2016. Inflation, long thought dead, is showing signs of stirring, albeit thanks to higher oil prices and varying degrees of FX depreciation.
And fiscal measures are supplementing monetary support in many key economies, led by the US where a reflation trade is confidently underway in the expectation of broad-ranging tax cuts and higher spending.
All of the above help explain why this quarter we can offer a rare treat: for the first time since early 2012, we are increasing our forecasts for both global growth and inflation for the next two years. Unfortunately, it is still a world where global growth is likely to hover around the mediocre growth rates of the past few years.
The Trump factor Political shocks typically mean uncertainty about the future direction of policy and a negative impact on investor sentiment. Not this time.
Since the election of Donald Trump as US president, global markets have taken a clear view on what it means for policy and the real economy. Concerns raised before the election over Mr Trump’s campaign pledges – such as protectionism and limits on immigration – have been put on the back-burner, even though they could change the world order in unpredictable ways.
For now the mood is firmly risk on. Equity markets have rallied. Bond markets have sold off and the dollar has strengthened across the board. Signs of cyclical improvement evident in the global economy survey data before the election have largely been confirmed and the expectation of a sizeable fiscal stimulus and lighter-touch regulation have added to the optimism.
The first positive prints for China’s producer price inflation since early 2012 and the first deal between OPEC and non-OPEC producers to cut oil supply for 15 years, pushing oil above USD55/barrel, are the icing on the cake for the reflation flag wavers.
Some of this buoyancy is justified. We recently revised up our US growth forecasts for 2017-18 on the expectation that the Republican Congress will back some degree of tax cuts for US households and companies.
European growth is also expected to be stronger than had seemed likely in the immediate wake of the UK’s Brexit vote.
Expectations may be getting too high though. An upturn in the global industrial cycle does not tell us much about long-term growth prospects. Nor do we doubt the ability of fiscal stimulus to support near-term demand.
If it does not raise long-term nominal growth by supporting other structural policies to improve productivity then it might just mean larger deficits that keep adding to government debt stocks.
So, while expansionary fiscal policy may erode spare capacity and mean the Fed can raise rates a little more quickly (we expect two rate rises in 2017, rather than the one we previously envisaged), the jury is still out on whether the incoming US administration’s policy mix will raise long-term potential growth and the historically low natural rate of interest.
Even in the near term there could once again be constraints on the Fed. The election of Donald Trump may have been a vote in favour of more isolationist policies but the US is not (yet!) a closed economy and Fed policy will continue to be influenced by developments elsewhere.
US headline inflation will rise in the coming months as higher oil prices feed through and nominal wage growth should tick up slightly, but we expect the strong dollar to keep down import prices and therefore core goods prices. In the other large developed economies, signs of cyclical improvement do not alter the deflationary influence that the eurozone and Japan still exert: internal imbalances and external surpluses are still too large and wage settlements too low.
Political risk in the coming year will focus on the eurozone, given the elections in some of its key economies: the Netherlands, France and Germany and, possibly, Italy.
There is also a pressing need for EU institutions to take decisions to address the population’s primary concerns of immigration and terrorism, ideally through joint budgetary spending on defence. But with the ECB having now extended QE until at least the end of 2017 and a very welcome bout of yen depreciation having taken the pressure off the Bank of Japan to step up its monetary easing any time soon, the immediate monetary policy risks will focus on EM.
Given the broad-based currency declines since the US election, emerging economies with high external debt and a high degree of foreign participation in local bond markets are most vulnerable to a rise in debt service costs and capital outflow as US rates rise.
Even for countries that have less foreign-currency-denominated debt but which are still reliant on credit growth, a slightly more active Fed and a stronger dollar imply less ability for many EM central banks to provide support through monetary policy.
We believe Brazil’s central bank will now be able to deliver less easing than previously seemed likely.
Many of the rate cuts we had been forecasting in Asia have been removed, while Turkey has already started a rate-rising cycle we did not envisage three months ago. Nor can emerging markets really pin their hopes on a big boost to competitiveness from the currency as exchange rate weakness has been broadly based across EM.
They must be hoping there will be some kind of lift from stronger US demand. The main boost on the demand side is likely to be to the US consumer from the planned tax cuts. To some extent the boost to disposable incomes will be offset by the rise in oil prices and a small rise in debt service costs but at least the US consumer has undergone so much deleveraging and now holds far fewer adjustable rate mortgages that the impact of modest rate rises should be limited and slow to come through.
Nonetheless the US will be a long way from regaining its former title of the world’s consumer of last resort. The US now accounts for a much smaller share of global demand than it did over a decade ago and its high income level and ageing population mean that more than two-thirds of US consumer spending is now on services. There will also be the risk of protectionist measures being put in place, particularly if the dollar continues to strengthen and the US current account deficit widens significantly in the coming year. Fed will still be constrained by global developments Political risk in Europe USD strength and higher rates puts the focus back on EM Mixed blessings for the US consumer.
Despite the clear risks for many emerging countries in the near term, the emerging market growth story is far from over given its superior long-term growth potential. In this report, we have re-visited the projections made for emerging economies in 2010 in our World in 2050, 11 January 2012 report. China, India and Indonesia are the main countries that have surpassed our estimates of growth potential. The rest under-delivered and, as in much of the developed world, disappointing investment growth has been a big part of the reason.
Demographics still look better in most EM countries though and other key drivers of future growth – notably education levels and life expectancy – have improved. This implies that potential per capita growth rates are still fairly high. As these countries develop and the nature of growth becomes more domestically driven, the influence on developed markets may pick up once more.
Emerging market crises of one sort or another will no doubt feature from time to time in the coming decades, as will unpredictable political developments. But these countries should continue to gain in importance in terms of their share of global demand.
Turning to our actual growth forecasts, we have raised our developed world forecasts more or less across the board. Aside from the US, the biggest upgrades are in the UK (smaller nearterm damage following the Brexit vote) and Japan, but there also seems to be a bit more momentum in the eurozone, particularly Germany and Spain.
In the emerging world, the revisions are mainly downwards, with the main exception of China where the recent run of data have revived and we believe an additional bout of public spending will maintain growth at 6.5 percent in 2017-18. In India, there is a near-term hit to growth from the government’s decision to abolish the existing stock of high-denomination currency notes.
The other notable revisions are in Latin America due to weaker-than-expected recent activity data and the reduced scope for monetary easing in the face of currency depreciation.
The full report can be downloaded <a href="https://www.gbm.hsbc.com/insights/economics" target="_blank">here</a>.
Janet Henry is Global Chief Economist at HSBC and can be contacted <a href="https://www.hsbc.co.uk/1/2/" target="_blank">here</a>.
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US economy robust enough to take interest rate increase: HSBC's Janet Henry

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<div>The 2015 purchase of a Gold Coast apartment has become a political issue overnight since the minister Sussan Ley charged taxpayers thousands of dollars for a trip to Queensland with her husband during which she bought a $795,000 Gold Coast investment property.</div>
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<div>Annika Smethurst, the national politics reporter at the Herald Sun, wrote that Sussan Ley charged taxpayers thousands of dollars for a trip to Queensland with her husband during which she bought a $795,000 Gold Coast investment property wrote that government documents reveal in May 2015.</div>
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<div>It was after attending Brisbane’s Wesley Hospital to announce $1.3 billion in funding to list new medicines and vaccines being added to the Pharmaceutical Benefits Scheme, that Ms Ley went to Main Beach on May 9.</div>
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She billed taxpayers $370 on her travel allowance to stay the night on the Gold Coast with her partner, on the same day she bought the ocean-view apartment which had previously traded at $830,000 in 2006 when bought by an Ipswich investor, Martin Corkery.
It was bought in her name on May 9.
The two bedroom, two bathroom apartment is a 149 sqm apartment on the eighth floor in the 31 storey early 1980s complex De Ville.
It had been listed for Ray White auction by estate agent Anna Jones.
Ms Ley confirmed to the Herald Sun the property was bought during the trip, which she declared was for “official business”.
She said the apartment purchase “was not planned nor anticipated”.
“All travel undertaken was in accordance with the rules,” a spokeswoman for Ms Ley said.
Ms Ley’s spokeswoman said the couple had travelled to the Gold Coast because the minister had “stakeholders to meet with” although Ms Ley’s office would not provide the Herald Sun with a list of these people. 
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Ms Ley’s spokeswoman said the minister’s partner had been invited to accompany her to a function in Sydney the ­previous evening.
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“He then travelled with the minister to Queensland under family travel arrangements.
“The EMB (Entitlements Management Branch) was consulted at the time to confirm Ms Ley’s partner’s travel was within the rules,” she said.
In total, the couple claimed $3949 in flights for the 48-hour trip from her Glenroy, regional NSW base.
The paper noted Ms Ley’s office would not confirm whether the investment property had been negatively geared.
The Opposition health spokeswoman Catherine King says Ms Ley owes taxpayers a better explanation.
“Sussan Ley needs to front up today and explain to Australians how purchasing a luxury apartment is considered to be official business,” Ms King said in a statement.
“If she cannot do this, she has no choice but to resign, or Malcolm Turnbull must move her off his front bench.” Ms Ley must reveal which stakeholders she met with on the Gold Coast, if a government car was used to facilitate the real estate deal, and how an opportunity to spontaneously buy property arose during a work trip, Ms King said.
There were more than 750 comments by readers by late morning on the <a href="https://www.heraldsun.com.au/" target="_blank">Herald Sun website</a>.
Two bedders with ocean views rent at $300 plus a night over summer. The block does not welcome schoolies.
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Federal Minister buys Main Beach, Gold Coast apartment while on official business

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<div>A total of 188 auctions are now scheduled for Melbourne in January, according to Real Estate Institute of Victoria (REIV) statistics.</div>
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<div>The agent overseeing Melbourne’s first 2017 auction, Harcourts Frankston director Darren Dowel will take <a href="https://www.realestate.com.au/property-house-vic-frankston+south-124331522" target="_blank">37 Fleetwood Cres, Frankston South</a> (above) to auction on Saturday, January 14 at 11am.</div>
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<img src="https://www.realestate.com.au/blog/wp-content/uploads/2017/01/05113753/capi_77f6f7cf1233a4fe6fe945808caf59c5_055049ffa4941390c8d0a948aebf9690.jpeg" alt="37 Fleetwood Crescent Frankston South - Leader sum">37 Fleetwood Cres, Frankston South (above) is a three-bedroom weatherboard home featuring chandeliers, a reading nook, a covered deck and spacious leafy gardens.
The 764sq m block is within both the Frankston High School and Derinya Primary School zone and is 1km from the beach.
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Dowel told the Herald Sun that 68 people had come through the home after just 25 days on the market.
“It’s been owned by an elderly couple for 25 years and they’re now moving to Gippsland Lakes,” he said.
REIV CEO Geoff White said close to 4000 auctions were held in Victoria in December, the highest number in the state’s history, with more than 1200 of these auctions held on December 17-18.
Other homes going to auction on Saturday, January 14 include:
A three bedroom house at <a href="https://www.realestate.com.au/property-townhouse-vic-springvale+south-124315558" target="_blank">1/1 Hosken St, Springvale South.</a>
A two bedroom house at <a href="https://www.realestate.com.au/property-apartment-vic-st+kilda-124421850" target="_blank">5/12 Leonards Ave, St Kilda.</a>
A four bedroom house at <a href="https://www.realestate.com.au/property-house-vic-mornington-124365686" target="_blank">11 Harmony Rise, Mornington.</a>
A three bedroom house at <a href="https://www.realestate.com.au/property-house-vic-dromana-124394742" target="_blank">4 Graeme St, Dromana</a>.
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Mornington Peninsula lead the early bird auctions scheduled for January 2017

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

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To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

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Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

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Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

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Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

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Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

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.

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.

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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.”
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[smartcode_project_cta:default project_id=4896]

Jonathan Chancellor

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