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GUEST OBSERVER
Household spending can be divided into three broad categories, services, retail trade, and non-retail goods. Where households spend has implications for overall economic activity. 
For example, spending in labour intensive services sectors, such as health, or restaurants, will typically have a larger impact on overall economic and jobs growth than spending on some retail goods, such as furniture and clothes, which are largely imported. In this note we look at the broad long- term trends in the three expenditure categories. 
Retail trade share of household spending has stabilised
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The retail trade share of household spending was on a long term downward trend but looks to have stabilised. In the early 1980’s retail trade accounted for over 40% of household spending compared to 31% today. The main beneficiary has been the services sector. Households have increased their share of spending on services from around 50 percent in the early 1980’s to around 60 percent now. 
The long run decline in the retail trade share of household spending reflects the fall in prices of retail goods relative to other goods and services. In volume terms, the retail trade share of total household spending has stayed very close to 30 percent since the data began in the early 1980’s.
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However, for the last three years the retail trade share of household spending has been flat. With volumes also being broadly steady, this shows that that the discounting of retail goods relative to other goods and services has eased. 
Part of the stabilisation of retail prices relative to services is due to the depreciation in the Australian dollar. This has helped to lift import prices in Aussie dollar terms. However RBA research shows that this lift has not been as large as would have been expected given the size of the depreciation. Increased competition is limiting the pass through from imported prices to sales prices. 
It also reflects a sharp slowing in services inflation since late 2013. Services inflation has typically been higher than for inflation for goods. However, both are now running at an annual rate of just 1.5 percent over the year to September. Inflation of market based services, such as meals out and hair cuts, has slowed more sharply to an annual rate of just 0.9 percent over the year to September. 
The slowing in services inflation, and inflation more generally, reflects a number of factors. Firstly there is spare capacity in the economy, which can be seen in the high rate of labour market underutilisation. Secondly, increased competition globally and advances in technology have reduced the pricing power in many markets.
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In a recent speech, RBA Governor Lowe spoke about how reduced pricing power was not just effecting the manufacturing sector, but service sectors too. Thirdly, job security fears have been heightened since the GFC. This means that workers are less inclined to push for wage increases, in sectors where part- time work is replacing full-time permanent positions.
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But services share is still increasing 
The share of household spending on services has increased over time. Spending on purely discretionary services, such as restaurants, accommodation and recreation, accounts for around 15% of household outlays. This share has been broadly stable over time. Contrary to popular perception, the share of spending on “meals out” has declined over time, now accounting for 5.2 percent of spending compared to 6.2 percent 30 years ago. 
So the upward trend has been driven by an increasing share of spending on non-discretionary services, such as rent, health, education, transport and communications. These categories account for 45 percent of household spending, having increased from around 30 percent 30 years ago. The shift in spending reflects relatively stronger price increases for these services as well as a change in preferences towards these areas. 
For example:
Insurance and other financial services – growth in this category is running at 6.5 percent over the year to June. As a share of housing spending, insurance and other financial services now accounts for 9.2 percent, compared to 8.4 percent three years ago.
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Growth in this category has been driven by an increase in the volume of spending. Excluding price effects, the proportion of spending on this category has also increased by a similar magnitude.
Consumers have shown a higher degree of caution around employment prospects in recent years. As a result they may be taking on a greater degree of insurance to guard against the loss of income, a decline in health or loss of other assets. There are also a larger number of products on offer.
Spending on health services rose by almost 10% over the year to June. The share of household spending continues to increase, accounting for around 5% compared to 4% ten years ago. The increase has been driven by both relatively strong price increases as well as an increase in volume of spending. The ageing population has also boosted spending on health and this trend will continue. A higher proportion of the population now has (subsidised) private health insurance which has boosted the number of elective procedures.
Education has also grown at an above average pace, with spending up 5.8% over the year. Education accounts for 4.7% of household spending compared to 3.5% 10 years ago. The increase in the share of spending is due to relatively strong price increases and also a larger volume of spending on this category. For example, a greater proportion of people are finishing year 12 and undertaking further education.
One category of discretionary services spending which has increased over time is overseas travel. As a share of household outlays, expenditure on travel has increased from 2.5 percent in the early 1980’s to around 3.7 percent now. The share of spending on flights has fallen as the relative cost has declined.
However outlays on overseas accommodation and other travel costs has increased.
Spending on non-retail goods is falling
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<div class="column">The retail trade share of household spending has stabilised in recent years. And the services share continues to increase. This means the share of spending on non-retail goods has declined. </div>
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 In particular, the share of spending on vehicles and their maintenance has fallen by 1 percent point over the past three years. There has been a long run downtrend in spending on these categories with the share of households spending around currently 7 percent compared to a peak of 11 percent in the 1980s. This largely reflects price falls – the price deflator for vehicles has declined by 25% since late 2007, while the deflator for the maintenance of vehicles is 7 percent lower over the past three years. Vehicles are cheaper, more reliable and can be funded via mortgage redraws at a lower cost.</div>
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 Summary</div>
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 Changes in relative pricing, which have reduced the price of goods relative to services, have contributed to some very long run trends in household spending. Households have spent an increasing share on the consumption of services, while spending on retail and other goods has declined.</div>
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 However the good news for retailers is that their share of household spending has been stable in recent years. This reflects a lower Australian dollar, which has lifted the price of some retail goods. However it also reflects a fall in the price of other consumption goods, such as cars, and a slowing in services inflation.</div>
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 With plenty of spare capacity in the labour market, wages growth and non- tradeables inflation are likely to remain soft for many years. This means the relative price of services is likely to remain subdued. And the upward trend in the services share of household spending may flatten out. </div>
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Kristina Clifton is economist, Commonwealth Bank, and can be contacted <a href="https://www.commbank.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Trends in household spending: CBA's Kristina Clifton

Labor politician Ed&nbsp;Husic, the Federal Member for Chifley, has sold his Blacktown investment property.

He retains his home at Colebee with wife Bridget Tilley in the upmarket Medalist housing estate which enjoys views of the&nbsp;18-hole Greg Norman-designed championship golf course.&nbsp;

Husic, who describes himself as “Blacktown, through and through”, secured $658,000 for the&nbsp;immaculately presented four bedroom brick home.

The 1995 Brickfield Place cul-de-sac offering was marketed as being located in a highly sought after pocket of South Blacktown.&nbsp;

The home had 110 square metres of living space on its 470 square metre block. He listed it for sale last November through Harcourts agent Andrew Chrysanthou who had a $669,950 asking price following its unsuccessful March auction.

It last sold in 2000 at $128,500 having first sold in 1995 at $155,000. It has been recently a $460 a week rental, up on its $270 a week rental a decade ago.

Husic is the Shadow Minister for Employment Services, Workforce Participation and Future of Work and the Shadow Minister for the Digital Economy.

He was raised in Western Sydney, receiving his education at Blacktown South Public School and Mitchell High School, then among the initial wave of students to graduate from the University of Western Sydney.

This article first appeared in The Sunday Telegraph.

<form action="https://www.realtor.com.au/cgi-bin/vgmsg/vgnsw/propview.p?vgrec=6895298&amp;srchtype=advrepbrw&amp;instate=nsw&amp;direct=1&amp;fromSales=y" id="form1" method="post" name="form1">&nbsp;</form>

Politican Ed Husic sells Blacktown investment house 

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GUEST OBSERVER
The minutes from the November Board meeting were broadly consistent with the narrative from the recent Statement on Monetary Policy, as expected.</div>
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 The RBA continues to monitor the risks around the labour market, housing market, China, and private consumption, and continues to think that the “appreciating exchange rate could complicate this adjustment”.</div>
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 Importantly, the assessment of risks around the inflation outlook appears more balanced, with the minutes suggesting to us emerging confidence that the disinflationary pulse has peaked.</div>
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 We continue to see the RBA on hold with the cash rate steady at 1.5% over our forecast horizon (to end 2018). Governor Lowe is speaking later today (7:15pm AEDT) on ‘Buffers and Options’ at the annual CEDA dinner.
The minutes from the November RBA Board meeting were broadly consistent with the narrative from the recent Statement on Monetary Policy, as expected. The overall tone is quite positive, with economic growth forecast to be around potential in the coming quarters and then “a little above potential growth thereafter”.
The outlook is not without risks and the minutes again highlighted concerns around:
the medium-term risks to the outlook for China’s economic growth given high and rising debt levels (notwithstanding better near-term growth prospects) ; and, as a result, uncertainty about the outlook for the terms of trade (which had been revised higher given the recent rise in prices); excess capacity in the labour market and the impact on wages; uncertainty about “households’ expectations of their income growth” and how this impacts spending and saving decisions; and the housing market, where “members noted that assessing conditions in the housing market had become more complicated” and that “while overall conditions had eased relative to 2015, some indicators had strengthened over the previous few months”.</div>
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<div class="column">Importantly, the minutes suggest the RBA may be more comfortable with the inflation outlook and perhaps increasingly confident that disinflationary pressures have peaked. Indeed, the minutes repeated the assessment in the SoMP that the risks to global inflation are “more balanced” but also judged the risks to domestic inflation as “broadly balanced”, supported by “evidence that wage growth in Australia had stabilised”.
A stabilisation in wage growth is important for the outlook for inflation, particularly given already weak rental growth and the large volume of apartment supply coming on stream.
While the policy framework can accommodate periods of undershoot, rising confidence that inflation has stabilised – even if it is expected to rise only gradually – would be a welcome development.
We continue to see the RBA on hold with the cash rate steady at 1.5 percent. While the RBA’s forecasts for persistently low inflation implies an easing bias, this is tempered by a more balanced assessment of the inflation risks and ongoing financial stability concerns. 
Jo Masters is senior economist, ANZ and can be contacted <a href="https://www.anz.com/personal/" target="_blank">here</a>.
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RBA's more balanced risks around the inflation outlook: ANZ's Jo Masters

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GUEST OBSERVER
The ANZ/Roy Morgan consumer confidence rating rose by 0.3 percent to a 7-week high of 118.2 in the week to November 13.
Confidence remains above the average of 113.0 since 2014.
The minutes from the November 1 Board meeting shows that the Reserve Bank has become more alert to inflation risks. 
The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending. The Reserve Bank Board minutes provides guidance on interest rate settings. 
What does it all mean?
Aussie consumers are unfazed by the US election result. Consumer confidence edged to 7-week highs in the latest week, no doubt boosted by strong gains on the Australian sharemarket late in the week. Interestingly respondents believe that the economic outlook over the medium term has improved.
There is a clear change in the Reserve Bank’s attitude to inflation. The latest Board minutes highlight the recent lift in commodity prices as well as perceptions that economic growth for advanced nations could exceed “potential growth”. As such the Reserve Bank concludes that “risks to the global inflation outlook were more balanced than they had been for some time.” Similarly Board members believe that Australian underlying inflation is “expected to return to more normal levels over time.”
Admittedly the Reserve Bank isn’t flashing warning signs on growth and inflation. But it should also be noted that in the period since the Reserve Bank Board meeting there has been the election of a new US President with growth-focussed economic policies. Metal and mining prices and bond yields have soared.
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Simply interest rate settings are likely to remain stable until well into 2017.
What do the figures show?
Consumer confidence
The ANZ/Roy Morgan consumer confidence rating rose by 0.3 percent to 118.2 in the week to November 13.
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Confidence is up 2.0 percent over the year and above the average of 113.0 since 2014. 
Two of five components of the index rose in the latest week.
<ul>
<li> The estimate of family finances compared with a year ago was down from +11 to +10; </li>
<li> The estimate of family finances over the next year was down from +28 to +27;</li>
<li> Economic conditions over the next 12 months was up from +5 to+6;</li>
<li> Economic conditions over the next 5 years was up from +10 to +13;</li>
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The measure of whether it was a good time to buy a major household item was steady at +35. In addition the inflation expectation 2 years ahead rose from 3.8 percent to 3.9 percent.
Reserve Bank Board minutes:
“Members noted that assessing conditions in the housing market had become more complicated. While overall conditions had eased relative to 2015, some indicators had strengthened over the previous few months. In particular, housing price growth had picked up noticeably in Sydney and Melbourne. However, housing turnover and growth in housing credit both remained lower than a year earlier, consistent with the supervisory measures that had been taken to tighten lending standards and the more cautious attitude to lending in certain segments. In addition, a considerable supply of apartments is scheduled to come on stream over the next few years, particularly in the eastern capital cities, and growth in rents in the September quarter was the slowest for some decades.”
“Considerable uncertainty remained about the strength of labour market conditions and the implications for labour cost growth.”
 “Members observed that some indicators of domestic inflation cost pressures, such as growth in the wage price index, had stabilised, albeit at low levels, and that underlying inflation was expected to return to more normal levels over time. The overall assessment was that the risks around the inflation forecast were broadly balanced.”
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<div class="column">“Higher commodity prices and expectations that growth in the major advanced economies would exceed potential growth suggested that the risks to the global inflation outlook were more balanced than they had been for some time.”</div>
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<div class="column">“Members commenced their discussion of the domestic economy by considering how outcomes over recent years had differed from earlier forecasts, noting that the differences for key variables, including inflation, the unemployment rate and GDP growth, had been modest by historical standards.”</div>
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<div class="column">“Members noted that there was significant uncertainty about the outlook for consumption growth given uncertainty about households' expectations of their income growth and the influence of these expectations on their spending and saving decisions. This was particularly pronounced for households with significant debt.”</div>
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<div class="column">What is the importance of the economic data?</div>
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<div class="column">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. The Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.
What are the implications for interest rates and investors?
CommSec expects the Reserve Bank to remain on the interest rate sidelines for an extended period.</div>
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<div class="column">Could the next move in interest rates be a rate hike rather than a rate cut? It’s important not to get too far ahead of ourselves. Inflation is still historically low. And while there is speculation of growth-focussed policies in the US, they haven’t been fleshed out. However you get a sense that inflation has reached an inflexion point. </div>
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<div class="column">Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</div>
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Happy Aussies, Reserve Bank on inflation watch: CommSec's Craig James

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Mick Gatto has sold his Lower Plenty mansion in Melbourne for an unknown sum.
Offers closed last week for the colourful identity’s <a href="https://www.realestate.com.au/property-house-vic-lower+plenty-123781578" target="_blank">multimillion-dollar abode</a>.
Barry Plant Doncaster East agents Adele and Sam Kocuk secured the sale of the sprawling 0.4 hectare property which was thought would attract about $3.8 million.
It last changed hands for $2.1 million in 2005.
There are two mortgages on the title, which also had five caveats when it was put on the market.
It is all very high security with burglarproof meshes, four-way locks and deadlocks.
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Mick Gatto's Lower Plenty abode under contract

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Olympic swimming legend Ian Thorpe, the five-time gold medalist, has an offer on his Hollywood hillside home.
It came on its latest attempt at a sale.
The organic-themed two bedroom Laurel Canyon home came with a listing price of $US950,000.
Now its US listing site suggests the agent was 'accepting back up offers', in case the current offer fails to proceed to escrow.
Thorpe paid $US879,000 for the Hollywood treetop escape in 2006 upon his initial retirement.
He tried to sell it in 2013 with a $US999,000 price tag.
It dates back to the 1960s as an artist retreat originally owned by actor John Compton.
It sits high above the trees with two bedrooms, one bathroom, a breezy living area and kitchen and a wood-panelled office.
All with views across the canyon.
The only hint of Thorpe's ownership is what looks like a framed photo of him in the pool hung up on the wall in the foyer.
Nicknamed the Thorpedo, Thorpe is one of Australia's most decorated Olympians, securing five gold medals in the 2000 and 2004 Olympic games.
The property served as one of his overseas home bases as he tried to get back into competitive swimming before the 2012 London Olympics, however he failed in the trials.
His sale comes ahead of the touted exodus of Aussie expats and disillusioned Americans looking to pull up their American roots after Donald Trump was made President elect.
Since the Trump vote, daily property searches for Sydney property from US IP addresses on realestate.com.au have jumped by more than 300 percent.
Sydney has been the most searched for city, ahead of Melbourne and Adelaide.
Most of the searches came from California and New York, both Hillary Clinton strongholds.
Quick exits from the still troubled US property markets won't however be easy. 
Singer Delta Goodrem's Hollywood Hills home comes with reduced hopes.
She first listed back in March for $US4.199 million ($AUD5.74 million), but the asking price has now been reduced to $US3.68 million.
The multi-award winning singer bought the five bedroom, four bathroom home for a reported $AUD2.3 million in 2010.
Located just 10 kilometres from the Hollywood sign, her house features her very own music room completed with a piano and drum kit.
It offers views that stretch from the mountains to LA's city lights. 
This article first appeared in the Saturday Daily Telegraph.
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Ian Thorpe gets offer in LA

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The iconic 1960s residence The Collins House, set above Mosman Bay Wharf, has been quickly snapped up having been listed for sale at $4 million.
The fibreglass landmark was built in 1976 by architect owners Ian and Roseanne Collins.
The <a href="https://www.domain.com.au/2b-mosman-street-mosman-nsw-2088-2013134196" target="_blank">2B Mosman Street property</a> featured in a recent Museum of Sydney exhibition curated by decor guru Karen McCartney as one of the 29 most important homes of the past six decades. 
The three-bedroom house, with rooftop terrace, last traded in 2007 for $1,855,000 when purchased by Bligh Advisory director Federico Pucci and Julia Pucci, project director of the refurbishment of the Sydney Theatre Company.
The listing was on the market for three weeks compared to the three months it took last time.
The rectangular Mosman Street home was built in 1978 using dry-jointed, prefabricated fibreglass wall panels to the couple's design. 
The top floor has an open-plan living and dining space plus an open-ended galley kitchen. Its elliptical windows have bush and harbour views.
The bedrooms are on the lower level with two rooms separated by twin bathrooms.
It was originally divided by bookcases to create four bedrooms for the family of seven.
Glass panels slide across an entire wall of the lower floor to take in the water views. It has underfloor heating and cooling is achieved by ponding water on the concrete roof.
The iconic house featured in Belle in 1978; the article was written by Betsy Walter with Lewis Morley photography.
It's also in Sydney Architecture, Graham Jahn's chronology from colonial days to the late 1990s.
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Fibreglass Collins House sold in Mosman

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GUEST OBSERVER
The Australian Ugliness, architect and critic Robin Boyd wrote in 1960, incorporated the “background ugliness” of Australia’s cities: a suburbia of:
"… unloved veneer villas and wanton little shops, and big worried factories."
These are the kinds of suburban places that in 2016 sell at weekend real estate auctions for six or seven figures. Despite the frequent outcries of today’s residents of “Trendyville”, these buildings are readily converted to fashionable heritage homes, or demolished to make way for new apartment blocks.
Heritage has a history. The kinds of things and places that Australians have preserved and the ways they have gone about preserving them have expanded in recent decades.
This heritage exists not only in museums and galleries or at historic properties and CBD buildings. It also forms part of our everyday urban experiences: located in suburbs and neighbourhoods, along and between streets, among current and former factories, stores, pubs and homes.
<h2>Finding Trendyville</h2>
A place where this heritage history has played out dramatically has been in the inner suburbs of the Australian city.
Why call this place Trendyville? Without a conventional gentry, the term gentrification is arguably historically inappropriate for Australia. So we might instead consider gentrification as trendification, the inner suburbs as Trendyville, and the residents as trendies.
The trendies arrived in the late 1960s. Like hipsters today, few people considered themselves a trendy, except perhaps ironically. More commonly, a trendy was identified by another person based on dress, clothing and shopping bags. 
For urban historians Renate Howe, David Nichols and Graeme Davison, Trendyville evokes:
"… the junction between geography, culture and politics, on the road between memory and history."
The city of memory is a productive way of thinking about urban heritage. It is also a powerful way of tackling the relationship between cities, people and history.
<h2>Before Trendyville</h2>
Until the mid-to-late 20th century, the Australian inner suburbs – New Farm and Subiaco, Carlton and Glebe – were not the desirable places of today. 
The houses, terraces, villas, cottages and other buildings that lined the streets of Trendyville had been built in the 19th and early 20th century. By the post-war period, many of these buildings had become run down, perceived as both unsustainable and contrary to social progress: in need of urban renewal. 
Those people able to do so moved to the then-outer suburbs, and so the inner suburbs experienced population decline. Drawing on North American sociological thinking, Australian urbanists imposed similar “rings” on the nation’s cities. 
These rings included a CBD core for commercial activities, an underdeveloped inner circle, and an aspirational outer suburban circle. Post-war urban planners thought the emptying out of the inner-city – “the doughnut effect” – was inevitable. 
The residential suburbs of the inner circle were identified as transitional zones, assuming that aspiring residents would eventually seek out the outer suburbs. Urbanists designated these seemingly dilapidated areas as slums, to be cleared for comprehensive modern redevelopment
High-rise social housing schemes were built, inspired by French architect Le Corbusier. The results of these policies include the Brutalist Sirius Apartments in Sydney and the 1960s high-rise housing that circles inner Melbourne.
<h2>Heritage in Trendyville</h2>
From the 1960s, the backlash against these inner-suburban clearances was led by the trendies. Not everyone was enraptured by the “white-picket fence” suburban ideal. Following southern and eastern European migrants, students and middle-class professionals moved to the inner suburbs. Other people had never left, witnessing the demolitions around them.
With the assistance of the National Trusts and other sympathetic organisations, the trendies formed resident action groups to advocate for their urban heritage. Their efforts prevented further clearances, whether for modern housing or often freeways.
The union-imposed “green bans” – at places like the Rocks and Woolloomooloo, South Melbourne and Collingwood, Highbury Park, and Fremantle – was another powerful way to intensify this heritage advocacy. 
A particular achievement of the trendies was to redefine the boundaries of heritage. No longer were the things worth preserving limited to, say, grand 19th-century public and commercial CBD buildings or stately suburban mansions.
The trendies transformed Boyd’s “background ugliness” into heritage that warranted preservation. Australia’s residential vernacular, its neighbourhoods, streets and homes, were looked upon with increasing fondness. This occurred amid a shifting mentality toward community building, the environment, sustainability and local amenity.
Drawing on urbanists such as North American Jane Jacobs, heritage preservation became an aspect of community-making. The resident action groups brought people together, and the green bans helped people to claim their right to the city.
<h2>Trendyville’s troubles</h2>
From the 1970s, Trendyville became subject to new heritage laws, which sought to preserve its “historic character”. 
Although these heritage protections were in part intended to give residents a greater say, those responsible for making the assessments were nevertheless heritage experts, often distanced from the communities.
The trendies had arrived at a time when the inner suburbs were still perceived as in decline. The heritage protections had been implemented in response to their aesthetic and historical sensibilities. 
Today, those heritage protections envelope large and sought-after areas of the inner city. With Australia’s population booming, urbanists advocate for greater density. More people will need to live in existing suburbsto make our cities sustainable.
How heritage places are preserved and new places constructed amid living historic environments must be reconciled with these urban and social realities. Striking a balance between heritage, development and the desires of local communities is key. 
What it means to meaningfully preserve Trendyville’s heritage, Australian inner-suburbia, must be rethought for the 21st century. 
After all, as illustrated by recent calls to preserve Sydney’s Sirius Apartments (which were once opposed by heritage advocates) our understandings of heritage are always shifting.
James Lesh is PhD candidate, School of Historical and Philosophical Studies and Melbourne School of Design, University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/james-lesh-257650" target="_blank">here</a>.
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Preserving cities: how ‘trendies’ shaped Australia’s urban heritage

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GUEST OBSERVER
The announcement by the NSW Government that a new underground Metro West railway will be the next major public transport project must open up new development opportunities on private land as well as on government owned land.
The announcement that Sydney Metro West will proceed as a rapid transit line between the Sydney CBD and Parramatta is good news.
 Clearly the existing heavy rail is approaching capacity and a new connection is needed between Sydney’s West and East.
The current proposal, as announced by the government, only has new stations on government owned land at the Bays Precinct and at Sydney Olympic Park but there are also options for increased density on privately owned land on sites along the route that should be included. 
The Urban Taskforce has previously suggested other sites for a metro station at Camellia and Kings Bay and there are other areas along the route that should be considered. In order to maximise the public benefits of this costly piece of infrastructure, additional metro stations should be provided.
In March 2015 the Urban Taskforce proposed that Sydney needed a Central Metro line running East West and a Circle Line wrapping around the city. It is good to see that the combination of lines for Sydney Metro has now set the framework for both a Central Line and a Circle Line similar to the Underground in London.
The future of the proposed Parramatta Light Rail will now need to be reconsidered. A Metro system will be far more effective in moving large crowds from Sydney Olympic Park than a Light Rail system. The Light Rail from Parramatta may be better relocated along the Carlingford line towards the North.
It is important that significant density of development including tall buildings is stimulated along the proposed Metro West route and that community members understand that this hugely beneficial piece of transport infrastructure comes with additional growth and density.
The Government’s statement that they will use a market-led approach to delivering the new metro line demonstrates the intention to maximise private sector involvement.
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>.
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Metro West must activate development on private land as well as government land: Chris Johnson

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McGrath Limited has announced the appointment of Nigel Dews and Cath Rogers as non-executive directors of the estate agency.
McGrath initiated the search for these candidates after director Daniel Petre (pictured above) indicated he wished to step down.
His AirTree Ventures has recently expanded funds under management from $60 million to over $300 million, necessitating he reduce some of his external commitments.
“I am very sorry to have to leave the McGrath Board, but have to ensure I get back more time to focus on AirTree’s expansion.
"I am very happy to have been able to use my limited time to help McGrath establish a strong management platform for the future and I have great faith in Cameron, John and the team.
"The real estate industry is facing similar changes to service based industries globally, driven largely by technology and I am delighted Cath and Nigel will assist it navigate its future.
"I look forward to tracking its future.”
Board chair Cass O’Connor said Dews’ professional experience encompasses more than 15 years in corporate leadership roles, often leading high-growth start-ups, as well as eight years in strategy consulting. He has been a leader in the digital media and telecommunications industries in Australia as CEO of Vodafone Hutchison Australia, 3 Mobile, and as Chief Executive of the Fairfax Media digital business.
Rogers brings more than 15 years of global experience in venture capital and private equity, investment banking, strategy consulting and technology ventures with firms including Credit Suisse, The World Bank, Accenture, ABN Amro and Anchorage Capital Partners.
As investment director at AirTree Ventures, she has worked closely with outgoing McGrath director Daniel Petre. 
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Daniel Petre departs McGrath Estate Agents board

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Joel Robinson

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.

The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.

The challenge for investors is that suitable product is becoming harder to find.

For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.

Today, the development pipeline looks very different.

Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.

The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.

&nbsp;

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.

The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.

[smartcode_project:default project_id=112194 project_image_fid=808]

For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.

One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.

[smartcode_project:default project_id=149098 project_image_fid=330594]

Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.

The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.

Parkdrive Apartments, Chermside

Priced from: $749,000

The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.

The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.

For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.

Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

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.

&nbsp;

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]

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.

[smartcode_project:default project_id=139552 project_image_fid=371009]

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.

[smartcode_project:default project_id=139552 project_image_fid=371017]

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.

[smartcode_project:default project_id=139552 project_image_fid=371025]

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.

[smartcode_project_cta:default project_id=139552]

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.

Jonathan Chancellor

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