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GUEST OBSERVER
If Reserve Bank Board members had to be “persuaded” to cut rates, it is clear that there was a variety of views.
It also seems clear that there was some reluctance to cut rates. And that is understandable. Ordinarily you cut rates if the economy is weakening and needs and extra kick along. But that is certainly not the case. The issue is solely inflation, more specifically, the outlook for inflation.
Inflation is tipped to remain low and that means that the economy could grow a little faster. Board members also had to be comfortable (“persuaded?) that a rate cut wouldn’t cause the housing market to become over-inflated.
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It is important to remember that there is no formal vote at Reserve Bank Board meetings. Decisions are arrived at by consensus (a “collegiate approach”). Reserve Bank Board members are no doubt a touch sceptical that rate cuts still work to lift growth and inflation at low nominal levels.
Some economists and strategists have pushed for another rate cut in June. This is now far from likely. The “rate cut school” are failing to properly understand the position of Reserve Bank Board members. The Reserve Bank Board will wait for the next inflation data at the end of July. There is no rush. And Board members may have to again be convinced that a rate cut is a useful thing to do.
Another rate cut may occur in August but it all depends on inflation. If the economy continues to out-perform and the housing market remains bubbly then the Board will remain firmly on the sidelines. A key question is whether a rate cut would actually do anything – it could up being counter-productive – causing people to fret that the economy is in some form of trouble.   What do the figures show? Reserve Bank Board minutes
The key quotes from the Board minutes:
Summary: “Members discussed the merits of adjusting policy at this meeting or awaiting further information before acting. On balance, members were persuaded that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.”
Summary: “In coming to their policy decision, members noted that developments over recent months had not led to a material change in the outlook for economic activity or the unemployment rate, but the outlook for inflation had been revised lower. At the same time, they took careful note of developments in the housing market, which indicated that supervisory measures were strengthening lending standards and that the potential risks of lowering interest rates therefore were less than they had been a year earlier.”
Australian dollar: “The exchange rate depreciation since early 2013 was assisting with growth and the economic adjustment process, although an appreciating exchange rate could complicate this.”
<a href="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%203.09.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/17/Screen%20Shot%202016-05-17%20at%203.09.11%20PM.png" alt="">
Inflation: “…the CPI data had indicated that weakness in domestic cost pressures had been broadly based. Non-tradables inflation had declined further in March to around its lowest year-ended rate since the late 1990s, reflecting low growth in labour costs and a range of other factors, including heightened retail competition, a moderation in conditions in housing rental and construction markets, and declines in the cost of business inputs such as fuel and utilities.”
Wages: “…information from the Bank's business liaison suggested that firms generally had been unwilling to make offers of wage growth below 2 per cent. But if inflation was to be persistently lower than previously forecast, it was possible that, in time, this could be reflected in lower wage growth.
Consumer spending: “Information from the Bank's liaison with retailers suggested some moderation in trading conditions in 2016, although conditions had remained generally positive.”
Consumer confidence
The ANZ/Roy Morgan consumer confidence rating rose by 1.1 per cent to 115.1 in the week to May 15.
Confidence is up 0.4 percent over the year and above the average of 112.1 since 2014. Two of the five components of the index rose in the latest week:
The estimate of family finances compared with a year ago was  down from +5 to +4; The estimate of family finances over the next year was  down from +26 to +25; Economic conditions over the next 12 months was  up from -3 to +3; Economic conditions over the next 5 years was  up from +7 to +10; The measure of whether it was a good time to buy a major household item was down from +34 points to +33 points.
New car sales:
According to the Australian Bureau of Statistics (ABS) new vehicle sales fell by 2.5 per cent in April after rising by 2.2 per cent in seasonally adjusted terms in March. Passenger car sales fell by 1.2 per cent, while sales of sports utility vehicles fell by 2.6 per cent and sales of “other” vehicles (includes utilities, panel vans, cab chassis, goods carrying vans, rigid trucks, prime movers, non-freight carrying trucks, and buses) fell by 4.8 per cent.
New vehicles sales were up by 2.4 percent over the year. Passenger car sales in April were up by 0.6 percent over the year while SUVs sales were up by 1.6 percent and “other vehicles” were up by 7.8 percent.
Sales across the country in April: NSW (-1.5 per cent); Victoria (+0.1 per cent); Queensland (-7.7 per cent); South Australia (-4.5 per cent); Western Australia (-1.3 per cent); Tasmania (+0.9 per cent); Northern Territory (-6.7 per cent); ACT (-1.8 per cent).
In rolling annual terms, a record 1,169,057 new vehicles were sold over the year to April. Sales of SUVs (423,744) hit record highs in annual terms, while annual sales of “other” vehicles stood at a 32-month high of 238,309.
Sales of passenger vehicles lifted from a near 19-year low of 505,348 to 507,004 in the year to April.
SUVs accounted for a record 45.53 per cent of combined  passenger car and SUV sales in the year to April.
What is the importance of the economic data?
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 Australian Bureau of Statistics  provides seasonally adjusted and trend estimates of industry data. The Federal Chamber of Automotive Industries  releases estimates of car sales  on the third business day of the month. The figures highlight the strength of consumer spending as well as conditions facing auto &amp; components companies.
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?
Future rate cuts are wholly dependent on inflation. If the next inflation figures are even slightly above RBA and market forecasts, then the Reserve Bank Board members will stay on the interest rate sidelines.
Australia is probably the only country in the world where rate cuts aren’t prompted by weakness in the economy.
Twice the Reserve Bank mentioned “heightened retail competition”. Global tech-led disruption is driving down costs, prices, wages and, in turn, interest rates.
Consumer confidence is remarkably positive despite the election now being in full swing and despite a weaker Aussie dollar.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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Reserve Bank Board reluctant to cut rates: CommSec's Craig James

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GUEST OBSERVER
The minutes of the May monetary policy meeting of the Reserve Bank Board provide only one additional insights to the Statement on Monetary Policy (SoMP) which printed on May 6.
This insight is in the final paragraph of the “Considerations” section where it emphasised the closeness of the decision to cut the overnight cash rate using the qualification, ”members discussed the merits of adjusting policy at this meeting or awaiting further information before acting.” This wording which may be interpreted as a truism is, nevertheless, not always used and would therefore cast considerable doubt on prospects for a follow up move before our preferred date of August when further information on inflation will be available.
In the SOMP and repeated in these minutes the following key observation was made: “Members noted that developments over recent months had not led to a material change in the outlook for economic activity or the unemployment rate but the outlook for inflation had been revised lower.” The Board also noted that developments in the housing market represented less risk of overstimulating with a further rate cut.
The discussion on inflation highlighted the following points – “weakness in domestic cost pressures had been broadly based reflecting low growth in labour costs and a range of other factors including heightened retail competition, a moderation in conditions in housing rental and construction markets and declines in the cost of business inputs such as fuel and utilities”. It was also noted that low wage growth and heightened retail competition appeared to have limited the extent to which importers were passing on higher import prices to retail prices.
Particular emphasis is given to subdued growth in labour costs (a bit weaker over 2015 than expected). It is important to note that the Bank’s forecasts embody the expectation that growth in the wage price index will stabilise around current rates before gradually picking up later in the forecast period. Bank liaison suggested that firms had been unwilling to make offers of wage growth below 2%. In this regard the next wage price index which prints tomorrow will be closely watched. Westpac expects a 0.4% print down from 0.5% last quarter and 0.6%’s in previous quarters – if correct this result will certainly unnerve the authorities although, in our view, not sufficiently to trigger a rate cut before our current timing of August by which time the Bank will have received the full picture on price developments from the June quarter inflation report.
As discussed above the inflation outlook was the only real change from previous assessments. Employment is expected to continue to grow at a slower pace than had been evident over the previous year and the unemployment rate was expected to remain around 5¾% over the next year or so before gradually declining. This outlook is broadly in line with that set out in February and from our perspective is somewhat cautious. For example, Westpac expects the unemployment rate to have edged down to 5.4% by mid next year.
Consistent with the Bank retaining its 3% growth forecasts for 2016 and 2017 in the May SoMP the commentary around the overall real economy is broadly unchanged. Further strong growth in dwelling investment is expected; house prices are expected to grow moderately; indicators of business investment intentions remain weak with non-mining investment only forecast to gradually pick up later in the forecast period and the magnitude of mining investment was expected to diminish over the next couple of years.
At the time of the May Board meeting the AUD was around USD 0.76 and TWI 63.3 prompting the following observation in the minutes: “the exchange rate depreciation since early 2013 was assisting with growth and the economic adjustment process, although an appreciating exchange rate could complicate this.” That compares with USD 0.73 and TWI 61.4 today, providing the Board with considerable comfort around the impact of the AUD on Australia’s growth prospects.
As discussed in the SoMP the Bank appears to be increasingly nervous about China. While recognising the short term impact of more stimulatory policy settings the minutes conclude that these actions might adversely affect financial stability and the economic outlook in China more broadly in the medium term.
There would also appear to be a scaling back in the RBA’s expectations for US Federal Reserve policy. Rather than refer to the Fed’s tightening cycle the minutes now choose to quote market pricing which implies at most one 25bp increase in the Federal Funds rate during 2016.
Conclusion
It is difficult to see any significant additional insights in these minutes relative to the more comprehensive Statement on Monetary Policy.
With reasonable prospects for ongoing above-trend growth we expect that the Bank will be satisfied that its next rate cut in August will provide further support for its current forecast that underlying inflation will be back near the bottom of the target zone in 2017. However, clearly with the evidence of today’s minutes emphasising the importance of the inflation outlook, risks to our current forecast must remain to the downside.
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
 
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RBA minutes show importance of inflation to rate cut decision: Westpac's Bill Evans

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GUEST OBSERVER
Not surprisingly, the focus of the minutes was around the Bank’s downgraded inflation forecasts.
The minutes highlight the Bank’s uncertainty over the inflation outlook, and its concerns about the second-round impact of lower inflation on wages growth.
Don’t read too much into the lack of an explicit easing bias in the minutes. This is normally the case in the press release and minutes following a rate cut. We continue to expect another cut at the August meeting.
INFLATION THE KEY           
With the sharp downgrade to the RBA’s inflation forecasts in the Statement on Monetary Policy (SoMP) the focus in today’s minutes was always going to be on the inflation discussion. The minutes highlight the heightened level of uncertainty around the Bank’s outlook for inflation. As the SoMP suggested, the Bank was clearly disconcerted by the broad-based nature of the weakness in non-tradables inflation.
Interestingly, the minutes highlight the potential for the weakness in inflation to become entrenched, noting that “if inflation was to be persistently lower than previously forecast, it was possible that, in time, this could be reflected in lower wage growth”.
While the minutes note that there is a possibility that labour costs could pick up sooner than expected, they also highlight that heightened job insecurity is likely to be a factor in the global weakness in wage growth. Given the experience of the US, where unemployment has fallen from 10% to 5%, and wage growth has picked up only marginally, it’s difficult to see this factor dissipating any time soon.
The comments on growth were consistent with those in the SoMP, with the RBA noting no material changes to their forecasts for either activity or unemployment, while again noting that the outlook for China “had continued to be a key issue”.
On housing, the minutes reiterated that “supervisory measures were strengthening lending standards and that the potential risks of lowering interest rates therefore were less than they had been a year earlier”. The Bank will be closely watching developments in the housing market; while auction clearance rates have been broadly unchanged at the national level since the rate cut, house prices have been rising solidly through April and May. Moreover, with the recent Financial Stability Review noting heightened competition for investor lending, the RBA and APRA are likely to be watching this closely. 
The RBA’s comments on the currency remained largely unchanged, noting again that “an appreciating exchange rate could complicate [the outlook]”.
OUTLOOK
While there was no explicit bias in the minutes, this is normal practice in the press release and minutes released immediately post a rate cut. In our view, this does not imply that the rate cut was of the ‘one-and-done’ variety. The extent of the downgrade to the inflation forecasts in the SoMP strongly suggest that further easing is likely. That said, the discussion around the possibility of waiting for further data suggests a lack of urgency and counts against the possibility of a back-to-back cut in June. 
We continue to expect further monetary policy easing given the soft inflation outlook, and look for another 25bp cut in the cash rate to 1.5% at the August meeting.
 
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
 
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RBA minutes highlight inflation worries: ANZ's Felicity Emmett

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The Villa World formula for success for investors

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Robert Gottliebsen, the Business Spectator columnist says the Chinese have suddenly turned their back on the Sydney apartment market, with Melbourne and other markets set to follow.
"We are hitting our largest trading partner with an unprecedented series of blows at a time when they are undergoing fundamental change.
"We had better brace ourselves for the consequences because they will not be pleasant."
The new foreign capital restrictions in China, will effectively block them completing their Australian off the plan purchases.
"Vast numbers of Chinese purchases are in danger of lapsing.
"If that happens, it will send property developers to the wall," he wrote.
<a href="https://www.theaustralian.com.au/business/opinion/robert-gottliebsen/dramatic-shifts-herald-a-new-era-in-residential-property/news-story/da9146edc2ade0b8fbc3d5cf0af714a1" target="_blank">A halving in Chinese and other foreign buyers in the Sydney apartment market was suggested last week </a>by Sydney’s largest apartment developer Meriton’s Harry Triguboff.
As Harry Triguboff has repaid all his debts, he is still able to fun the Chinese “off the plan” purchases, but few other developers have such a balance sheet to fund the purchases.
Gottliebsen noted Chinese buying of apartments was one of the biggest forces that enabled Australia to avoid going into recession following the dramatic decline in mining investment.
"If the current dramatic decline in Chinese apartment buying continues, in the absence of some other offsetting factor, it could easily lead to a recession in Australia.
"Australian bank profits are not in the front line of vulnerability but they will be hit."
He also noted the Chinese are now making it much harder for their nationals to take money out of China.
"Nevertheless, Chinese nationals can normally get a 10 per cent deposit on an apartment out of the country — although sometimes it can take credit card gymnastics.
"That means they have the required deposit for an ‘off the plan’ purchase and they can normally get another 20 per cent out of China on settlement so that they have a 30 per cent deposit when the apartment is completed.
"Previously, they could get the remaining 70 per cent required on settlement out of China.
"Now that’s much harder.
"Just when the Chinese are under pressure, at the urging of APRA, the big Australian banks have lowered their loan to valuation ratio from 70 per cent to 60 per cent and have stated that they will no longer recognise self-employed income from overseas."
He suggested that the Chinese have been wonderful borrowers.
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The unpleasant fallout from hitting the wonderful Chinese apartment buyers who could fail to settle

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
City planning has many approaches that have been used to enable better economic, social and environmental outcomes.
The planning profession has been doing strategic assessments of urban land development opportunities and constraints for over a hundred years but has only recently adopted the techniques of strategic environmental assessment (SEA), a tool developed by the environmental assessment profession.
The draft Green Growth Plan for Perth is a federal and state government initiative to trial whether SEA can be integrated into the planning of an Australian city. It is a process in parallel with the traditional strategic plan, which in Perth is the draft Perth and Peel @ 3.5 Million Plan.
Town planning and environmental assessment have largely been competing for the past 30 years to show who knows best about managing urban land. Planning has mostly been setting broad strategic directions based on infrastructure and land zoning, with day-to-day statutory planning devolved to local governments on what should be approved or modified. Environmental protection authorities (EPAs) have set major strategic directions about protection of biodiversity, water and other resources like basic raw materials, as well as making day-to-day decisions on major projects.
Often the division of labour has been to have planning in control of cities and EPAs doing most of the work in regions. This is especially the case in a state like Western Australia where most major projects are in the regions. 
EPAs get to provide an opinion on urban land releases or urban regeneration projects, but mostly town planning has the final say in cities. However, there has been a sense that the cumulative effects of lots of small incremental planning decisions, especially urban sprawl, could be having serious impacts on biodiversity, water and the availability of resources like basic raw materials. Growing disquiet about town planning’s ability to manage the environmental side of cities has led to the development of strategic environmental assessment.
SEA takes a broad approach to a large land area and assesses the cumulative impacts over a planning horizon of 50 years or more. The techniques when applied to cities have been based on a combination of old tools, like the McHarg overlays of all the different landscape features from the 1960s, as well as 21st-century tools of digital visualisation and modelling.
SEAs have been sold as helping to reduce the time and cost of environmental and planning approvals. With a strategic plan adopted, it not only shows where development should be avoided but clears the way for development in other areas. So it promises better environmental outcomes and faster processes.
<h2>Perth pioneers whole-city SEA</h2>
The SEA process is legislated under the federal Environment Protection and Biodiversity Conservation Act while town planning is a state responsibility. The SEA promises much and has been helpful in a number of regional assessments across Australia, including two fringe areas of Melbourne and Sydney. Applying this process to whole cities is a different matter, so many people have been closely watching the first SEA of a city in Australia – the Green Growth Plan for Perth.
The draft report was guided by a partnership between the federal environment department and 20 state government agencies represented on the state steering committee. The report has much detail on “matters of national environmental significance” (MNES). In other SEAs there have been impacts on seven to nine MNES; the Perth Green Growth Plan has impacts on 92 MNES. This is partly due to the complexities of a large city SEA, but mostly it is due to Perth being in the heart of a major global biodiversity hotspot.
There is a recommendation to set aside for protection a further 170,000 hectares of natural areas. Most of this is in government ownership but 20,000 ha needs to be purchased.
In terms of contiguous green belts that can enable biodiversity to be managed, the majority of the natural space to be set aside is in the northern corridor. In reality this corridor is already close to 100 kilometres long and the cessation of development here will only be mourned by a few developers. Most of the damage has been done.
The southern corridor has much fewer constraints on development. The area is mostly poor agricultural land, so the Green Growth Plan suggests a few small areas for protection. It also proposes some significant new measures to avert decline in the Peel Harvey estuary, notably regulation to improve farm fertiliser management.
Thus, if the SEA is to enable faster development, it will be in the southern corridor along the Kwinana Freeway heading beyond Mandurah towards Bunbury.
<h2>Filling in the grey areas</h2>
Should this plan be adopted as the basis of Perth’s long-term future? In terms of environmental protection, especially biodiversity, it is a strong statement. It is a literal line in the sand, especially to the north where Perth has sprawled for the past 40 years.
But it is not the whole story. The federal government’s new Smart Cities Plan is designed to help cities do more innovative planning. In particular, it is trying to enable 30-minute cities.
This has been highlighted in much planning discourse as the basis of a more sustainable, liveable and productive city as the travel time budget is being exceeded in all our big cities. As shown below, Sydney has been over 30 minutes for a long time. Perth moved rapidly into this league in its recent boom.
Quite simply this means we need more urban regeneration and less urban sprawl. How do we do this?
Greenfield development is easy because developers can roll out large precincts for development. Brownfield development on old industrial sites in the inner-city areas (like Docklands in Melbourne and Barangaroo in Sydney) are also relatively easy as they are big sites.
But in between we have millions of individual lots, all owned privately. Here, the only option for developers is to do low-quality infill in backyards. This is not working.
To redevelop in these greyfields requires creative, clever planning that finds large sites for regeneration and brings all the owners together, as occurred recently in Castle Hill, St Leonards and Baulkham Hills in Sydney. Unlocking the area for regeneration, using significant innovations in buildings, energy, water, waste, walkability, jobs, services and biodiversity, requires the creation of significant amenity.
This is the basis of the entrepreneur rail model that is meant to provide a rail link to enable such urban activity. The Smart Cities Plan wants cities to prepare City Deals that set out how they can do such things.
The Green Growth Plan is a good base to work from, but it cannot be all that is needed for a future town plan. The draft Perth and Peel @ 3.5 Million Plan suggests ways to consolidate 47 percent of the next period of urban growth. It suggests that 100 percent consolidation would be too difficult.
The redevelopment agenda could do with a makeover in Perth to further complement the Green Growth Plan. More Smart City ideas are needed or else the never-ending sprawl of our cities will continue its unsustainable and unproductive march.
 
Peter Newman is professor of Sustainability, Curtin University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/peter-newman-1858" target="_blank">here</a>.
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Green Growth Plan puts strategic environmental assessments to the city test

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GUEST OBSERVER
Average house rents in metropolitan Melbourne have increased by 5.3 percent, with apartment rents growing by 2.8 percent, over the last three months.
A lack of affordable rental properties is a problem in Sydney too. This has fuelled speculation of a housing bubble, particularly in the wake of falling investor demand for new high-priced CBD apartments in these capital cities and others.
But beyond the headlines lies a difficult policy task for all three levels of government, in conjunction with the private sector and civil society. They need not only to create more affordable housing, but to keep it affordable in the long run.
Recent discussions with private developers and investors suggest there is growing willingness to collectively tackle the problem. However, some common misapprehensions remain about who needs affordable housing and how those needs might be met.
Looking beyond the stereotypes
There continues to be two quite different stereotypes about the people who need affordable housing:
<ul>
<li>First, there is the older single man with mental health and/or addiction issues, who may need therapeutic assistance and housing.</li>
<li>Second, there is the “key worker” individual or couple – young, working in education, medicine or emergency services – who just simply need “more supply”.</li>
</ul>
The reality is that there are many different kinds of households requiring affordable housing. Many different mechanisms will need to come into play to meet their needs.
Penny the pensioner is living in poverty, like one in three older women. She spent many years bringing up two children full-time and did not accumulate retirement savings or assets. As a very-low-income person, she receives Commonwealth Rent Assistance. However, she is among the 35,000 Victorians on the waiting list for public housing.
Penny can no longer afford to live in or near Port Melbourne, her home for her entire life. This is because there are simply no rental apartments available there for A$165 per week, which is what she could afford.
Penny wonders if Australia’s largest urban redevelopment project next to Port Melbourne, Fishermans Bend, could have an apartment for her sometime soon. But with no new Commonwealth affordable housing program in place, no inclusionary zoning or financial incentives at the state level, and rate capping at the local government level reducing capacity to invest in affordable housing, at most 1.3% of the total 40,000 projected housing units will be available to middle-income households – let alone low-income people like her.
Even if new units were developed in Fishermans Bend, a 50m² apartment would cost about $300,000 to build, given land, construction and financing costs. Rates, water, maintenance and management would cost about $9,000 a year per unit to deliver.
These costs could not be recovered fully through Penny’s rent, even if construction was completely subsidised. There would need to be a combination of lower-cost land, subsidised construction, guaranteed finance, rate relief and ongoing subsidy to make her living unit viable for the private sector to deliver and a community housing provider to own and manage.
Naresh is a nurse. He would be classified as a moderate-income earner. He lives with his wife Nadira. They recently had a child; Nadira is a full-time parent.
Because he is a shift worker, Naresh’s public transport options are not reliable. He would prefer to live within walking or cycling distance of his workplace, even in a smaller unit, as he does not own a car.
Naresh can afford to pay 30% of his $60,000 annual gross income on rent, which works out to $340 per week. This is still below the average rent in Melbourne for a 70m² two-bedroom unit.
A few two-bedroom apartments are available for that price – about an hour’s public transport ride away from his job. However, he works in a well-serviced but conservative inner suburb, where new apartments aren’t being constructed and existing flats are rented by much-higher-income households.
Naresh would have to add the cost of buying and maintaining a car to his rental cost and a long commute to an already difficult work-life balance. This is hardly affordable or family-friendly living.
Even if new apartments were being constructed where they are most needed, it would cost at least $400,000 to build and require about 50% construction subsidy for a community housing provider to be able to rent to Naresh and Nadira. The alternative would be short-term renting in the private market with the likelihood of having to relocate every year or two.
Signs of progress
Across Australia, there was a shortage of 122,000 affordable and available dwellings nationwide in 2011. This was a 40 percent increase from 87,000 in 2006. The problem has worsened since the last census in 2011.
There are some signs of progress across Australia. After a cross-party Senate inquiry into affordable housing in 2015, the Affordable Housing Working Group is looking at “innovative financial models” to scale up production.
Several states are taking concrete actions. Western Australia was the first cab off the rank and had attained its ten-year targets by 2015. New South Wales has established the Social and Affordable Housing Fund. Queensland’s Affordable Housing Strategy is at the discussion stage.
In Victoria, the previous Coalition government’s strategic plan for metropolitan Melbourne is being “refreshed”, including a greater emphasis on housing need. In advance of a promised affordable housing strategy, the current Labor government recently announced a $150 million “housing blitz” for women and child survivors of family violence.
Several local governments in Melbourne have also led the way in donating land to affordable housing, particularly the City of Port Phillip.
The trick is going to be combining various actions by Commonwealth, state and local government to support private developers and community housing providers in not only developing new housing, but keeping it affordable for hundreds of thousands of Australians.
 
Carolyn Whitzman is professor of Urban Planning, University of Melbourne and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/carolyn-whitzman-9944" target="_blank">here</a>.
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Where do record rental prices leave low-income earners?

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
City of Melbourne councillors voted recently to implement the 2016-20 Bicycle Plan.
This followed public consultations that included two phases of community engagement and the release of a draft plan last October. Features of the plan, which has a budget of around A$2 million a year over four years, include:
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upgrading busy cycling routes;
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increasing bicycle parking;
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improving end-of-trip facilities;
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conducting safety campaigns; and
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<li>
undertaking research.
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Most inner-Melbourne cyclists would likely welcome this renewed commitment to improving the cycling environment. It is important, though, to put this expenditure into perspective.
A A$2 million-per-year plan for the population of about 127,000 who live in the City of Melbourne (about A$16 per person) is a pittance compared to the 20-year, US$600 million Bicycle Plan 2030 in the US city of Portland, Oregon. With a population of about 619,000, the US$30 million-a-year average works out to more than US$48 per person. Portland is mooted as one of the most cycle-friendly cities in the world.
<h2>Criticism of the plan</h2>
Days before the Melbourne councillors voted on the plan, a Herald Sun editorial said:
"Melbourne City Council appears hellbent on turning the city into cyclist heaven … More likely this will soon turn the CBD into an economic wasteland as drivers take their business elsewhere as well as their shopping."
The assertion that installing cycling infrastructure in inner Melbourne will hurt the local economy defies the evidence from a plethora of case studies.
There are numerous international examples where local business-owners have over-estimated the proportion of their customers who travel by car. Consequently, they have considered parking as an overarching issue of primary concern.
They have often resisted anti-car, pro-active transport infrastructure changes – such as removing on-street parking and car lanes, and creating shared paths – on the premise that these will be bad for business.
But such changes have often resulted in increases in retail activity as well as jobs, land value and tourism.
<h2>Economic impact of cycling infrastructure</h2>
In Valencia Street, San Francisco, traffic lanes were slimmed to slow down cars and accommodate other road users. Nearly 40 percent of merchants reported increased sales. More than 60% reported an increase in the number of customers who ride bicycles.
New York implemented a raft of changes across the city including traffic calming, separated and protected bike lanes, and dedicated bicycle signals. These changes resulted in significant rises in retail sales, beating the Manhattan average for the same period and substantially outpacing performance on nearby unaltered streets.
The city’s Department of Transport later released a report presenting and explaining the robust methodology developed for evaluating the economic effects of these “Sustainable Streets” improvements. This report is available for use by other cities and public agencies.
In Bloor Street, Toronto, a study of merchants and patrons found only 10 percent of patrons drove to the area. A majority of merchants believed that a bike lane or widened footpath would increase business and that off-street parking lots would cover the reduction in on-street parking. These findings from Canada demonstrate that local business-owners don’t always oppose improvements in cycling infrastructure at the expense of cars.
There have even been case studies in the City of Melbourne itself revealing the benefits of sacrificing infrastructure for cars to make way for bicycles.
A study of Lygon Street, Carlton, found that while the average cyclist’s retail spending is only $16.20/hr compared to a car driver’s $27.00/hr, six bicycles can park in the space required for one car. Therefore, while one car space equates to $27.00/hr retail spending, six bicycle spaces equate to $97.20/hr.
That puts a new light on the claims by our Herald Sun editorial:
"Motorists will be dismayed to learn that doubling the number of bike racks on city streets will mean fewer carparking spaces … Councillors must surely be aware of the problems they are creating for the thousands of businesses long established in the city."
Previous evidence suggests that inner Melbourne businesses will prosper under a changing transport environment – and not “see their money spent against their business and personal interests”, as the Herald Sun suggests.
On the contrary, improvements in bicycle infrastructure are likely to have a positive economic impact in their own right. That’s before we even consider the other positive effects. Physical inactivity costs Australia $13.8 billion a year when the health impacts were last assessed in 2008. Traffic congestion was estimated to cost Australian capital cities $16.5 billion last year.
The City of Melbourne and advocacy groups should continue pursuing bicycle infrastructure improvements – even at the expense of cars – where feasible.
Jerome N Rachele is research fellow in Social Epidemiology, Institute for Health and Ageing, Australian Catholic University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jerome-n-rachele-251972" target="_blank">here</a>.
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Bicycle-friendly changes are good for retail business

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
For economists and others who ‘grew up’ being challenged to achieve low and stable inflation against the background of high and volatile inflation rates that emerged in Western countries in the 1970s (and persisted in Australia through the 1980s), the possibility inflation could be ‘too low’ can seem like something from another universe.
The Reserve Bank of Australia’s 2-3% inflation target was more-or-less unilaterally promulgated by Bernie Fraser (who was RBA Governor from 1989 until 2006).
In a speech just after the 1993 election (at which the Liberal Opposition had advocated the introduction of a 0-2 percent inflation target, similar to that which had been adopted in New Zealand in 1989), Fraser suggested that:
“If the rate of inflation in underlying terms could be held to an average of 2-3 percent over a period of years, that would be a good outcome. Such a rate would be unlikely to materially affect business and consumer decisions, and it would avoid the unnecessary costs entailed in pursuing a lower rate.”
Although Bernie Fraser was initially “rather wary of inflation targets”, he explicitly couched the series of interest rate hikes he implemented during the second half of 1994 as being undertaken in order to maintain inflation within the 2-3 percent range.
The target was formally embodied in a Statement on the Conduct of Monetary Policy agreed between newly-installed Treasurer Peter Costello and newly-appointed RBA Governor Ian Macfarlane shortly after the 1996 election, and has been re-iterated after each change of government and upon each appointment of a new RBA Governor ever since.
Australia’s approach to inflation targeting differs from that of most other countries which have inflation targets in two important respects. First, it does not stem from a government directive, nor is it enshrined in legislation. As former Governor Ian Macfarlane has said, “the government didn’t introduce it, we introduced it”.
The Reserve Bank does not have to “explain itself” to politicians if it “misses” its target for some reason. Second, the target is intentionally and explicitly flexible. It is expressed as a range, to be achieved “on average” and “over the course of the business cycle” (a term which is not anywhere defined), rather than at all times and in all places, as it were.
This means that the Reserve Bank can “tolerate” inflation being either above or below the target for a temporary period if it has good reason to believe that the deviation is only temporary, or is the result of some one-off factor whose influence will soon pass, without needing to take monetary policy actions to push it back into the target range more quickly but which would, in the RBA’s judgement, not otherwise be necessary.
This “flexible inflation targeting regime” has served Australia well over the past two-and-a-bit decades. The target is widely perceived to be “credible” – that is, it is widely recognised and understood that the Reserve Bank will do what it needs to do in order to ensure that it is achieved (as it demonstrated, for example, in 1994 and in 2007).
As a result, it has served to “anchor” inflationary expectations – that is, to give participants in the economy (businesses, consumers, union officials, governments and others) a sound basis for expecting that inflation will average somewhere between 2 and 3% over the medium-to-longer term – as it was intended to do.
And it has allowed the RBA to keep interest rates more stable than would have been the case if it had been required to chase after inflation on each and every occasion on which it temporarily departed from the target range.
With the annual “headline” rate of inflation having been below the bottom end of the 2-3% target range since the December quarter of 2014, and more recently the annual “underlying” inflation rate also having dropped below 2 percent, some have suggested that the inflation target should itself be lowered.
This would allow the central bank more room to accommodate unusually low inflation without having to cut rates to levels which might risk triggering unsustainable rates of credit growth and/or an asset price bubble.
Ironically, the opposite proposition was put during the resources boom of 2010-12, when some suggested that the RBA should increase its inflation target so as not to have to raise interest rates as much in the face of the inflationary pressures which it was feared that boom might engender.
The RBA resisted such calls on that occasion, and should do so on this. As it is formulated, the RBA’s flexible inflation target gives it latitude to determine how dogmatic it needs to be in pursuit of “low and stable” inflation.
If it were to change its target every time it appeared as though inflation might be either above or below the target range for an extended period, the target would eventually lose whatever role it has as an “anchor” for inflation expectations, increasing the chance that inflation would – as a result of the well-documented propensity of inflation expectations to become self-fulfilling – remain above or below the target for even longer, and perhaps by even wider margins.
Australia’s inflation targeting regime has served the country well, and the challenges it faces at this time are not so great as to warrant altering it.
Saul Eslake is Vice-Chancellor’s Fellow, University of Tasmania and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">here</a>.
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Why the Reserve Bank should resist calls to alter its inflation range: Saul Eslake

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Over in the west the big property news was West Coast Eagles star Nic Naitanui spending $3 million on a Mount Lawley home.
The star ruckman secured a five bedroom, four bathroom 2008 Zorzi-built house with home cinema. It was listed with high<a href="https://reiwa.com.au/52-queens-crescent-mount-lawley-3636535/" target="_blank"> </a>$3 million hopes mid-last year, selling earlier this year by private treaty.
His redundant Swan View home, which cost $1,285,000 in 2012, had been put up for rent.
Last month he sought $900 a week, which has been adjusted now to $800 a week.
Perth's weekend auction success rate sank to 20 percent, according to CoreLogic RP Data.
The median price for a home in Mount Lawley is $999,000, according to CoreLogic RP Data.
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West Coast Eagles star Nic Naitanui spends $3 million

Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Joel Robinson

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

Jonathan Chancellor

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