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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Other than renting, the most common way to get a roof over your head is to buy a home and live in it. Another way is to buy a home and rent it out, and then rent a similar home (buy, rent, rent). Thanks to the perverse nature of negative gearing, the buy, rent, rent strategy can be cheaper than the most obvious path of home ownership. How?
Consider a first home buyer considering a modest two bedroom, two bathroom unit in Ashfield in Sydney’s inner west for A$600,000.
Assuming the buyer has enough to afford a 20% deposit and initial transaction costs (legal fees and stamp duty, etc.), she may consider buying and living in it, or buying and investing and then renting a similar unit. She is able to borrow 80% of the unit’s value paying interest of 5% p.a (A$24,000 a year). The annual maintenance costs are A$6,000 (or 1%), deductible depreciation expenses are also A$6,000. A similar unit rents for A$450 per week. Her marginal tax rate is 34.5%. What is the cost to buy and live compared with buy, rent, rent?
The first home buyer’s housing cost is A$30,000 per year if she buys and lives in the unit, and A$25,653 per year for buy, rent, rent. This means she saves A$4,347 or 0.72% of the unit price with buy, rent, rent.
The saving is solely due to the negative gearing tax savings effect. The mortgage interest, maintenance and depreciation deductions are tax deductible when investing, but cannot be deducted when living in the unit. Without negative gearing there would be no tax savings and the first home buyer would not consider such a convoluted strategy.
From the calculations, we can also see that the bigger the negative gearing tax savings, the better it is to buy, rent, rent. Buying homes with lower rent, higher maintenance costs and higher depreciation allowances (eg. new developments) and being at a higher marginal tax rate increases the incentives to do so. There is also little incentive to pay off principal in the unit as the negative gearing strategy may be done almost perpetually and any savings invested (or spent) elsewhere.
On the other hand, once the property is positively geared (when net rent exceeds cost of ownership) it no longer becomes cheaper than to buy and live. This can happen if the buyer chooses to pay off the mortgage, earns increased rent or reduces maintenance and depreciation deductions.
When it comes to selling, there may be capital gains tax on the rental property although your own home is capital gains tax exempt. Non-financial factors are that the home buyer may have a preference to live in their own home rather than to rent, despite the buy, rent, rent savings. This may be from the greater flexibility to customise your own home or not having to deal with real estate agents.
Of course, in the example renting still remains the cheapest option, though if home ownership is the goal then with the perversion of negative gearing, buy, rent, rent remains a cost effective choice.
The above scenario is just one of the many ways that negative gearing distorts housing decisions. Those on high marginal tax rates (i.e. high income earners) have incentive to invest in multiple homes. This leads to incentives to borrow excessively to invest as the negative gearing tax savings effectively reduces the ownership costs to investors compared with home owners.
Furthermore this pushes housing prices up due to the increased demand from negative gearing. Compare this to a home owner who requires only one home and is restricted in the amount that they may borrow as they do not earn rent on the home as income.
Another effect is that new homes which tend to be of higher quality are more desirable to investors as they tend to have higher maintenance costs and depreciation deductions which increases tax savings. Home owners on the other other hand are unable to deduct such costs thereby making ownership of new homes more costly than to investors.
The sooner that negative gearing is removed, the quicker simple buying and living can be the norm.
This article is for educational purposes only and does not constitute financial or taxation advice.
Adrian Lee is senior lecturer in Finance, University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/adrian-lee-94688" target="_blank">here</a>.
 
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jchancellor-FAypfDUnLy

Buy, rent, or do both: the perversion of negative gearing

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The property website REA Group has bought Australia’s largest share accommodation website, Flatmates.com.au for $25 million.
The move sees REA, which operates Australia’s largest property portal Realestate.com.au, buy 100% of the Australian business.
It has also agreed to an earn-out with its founders based on an international expansion.
REO Group CEO Tracey Fellows said there was enormous growth in the sharing economy.
"The share accommodation segments in the Australian property market with traffic across the sector growing at over 50 year-on-year." 
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REA buys flatmates.com.au

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The world of work has become an increasingly difficult environment for young people. Youth unemployment in Australia is persistently higher than for other age groups.
In response, our governments have delivered one-size-fits-all policies that focus on national targets encouraging education programs to make unemployed young people more “work ready”.
These approaches assume that, with the right education or training, a young person will be able to get a job. However, this is not the case, especially for young people who live in areas of high youth unemployment.
To reduce youth unemployment, education and labour market policies must go beyond a focus on individual young people to offer solutions at a community level.
Rural and regional areas hit hardest
Youth unemployment has been a feature of developed economies since the 1980s. As the Australian economy continues to open to global competitive pressures, the decline in the availability of manufacturing work and the growth of the services sector have changed the nature of work.
However, as recent research has highlighted, youth unemployment rates vary in different places and local communities.
Rural and regional areas are among the hardest hit by these changes. Places such as outback Queensland and the New South Wales Hunter Valley have youth unemployment rates of 28 percent and 22 percent respectively.
These levels of youth unemployment reflect these regions’ reliance on industries that are changing rapidly and may no longer provide reliable local employment.
These powerful shifts are not adequately recognised at a policy level.
Policies targeted at youth currently encourage the development of individual human capital. This takes place through a one-size-fits-all approach focused on increasing levels of educational qualification, with the promise that young people will find professional work.
This kind of future is not available to all young people, no matter how “work ready” they may be, especially for those in areas with high youth unemployment.
Again, these policies ignore the reality of the forms of work available in different local communities.
Does this matter in a world where young people are encouraged to be as mobile as possible in search of work and a fulfilling future?
The answer to this question is a resounding yes, for reasons connected with the role of local communities in shaping young people’s identities and pathways through work.
The critical role of local communities
Australian and international research has shown the critical role that processes of identity construction play both in young people’s engagement with work and in the strategies they use to survive unemployment.
Rural and regional young people are key examples of this process. Research has demonstrated the importance of local community connections for young people’s orientation towards their future in work. This applies even to those whose imagined futures take them beyond the boundaries of their local communities.
In one example from this research, a young man who imagines a future as a teacher described his plans in terms of existing family connections to the profession and the availability of accommodation with family members who lived close to the nearest regional university.
This process, in which young people imagine futures around established community connections and ways of life, is common in regional areas. While schools encourage young people to plan their own individual futures, the lives of relatives and other community members continue to shape their desires and perceptions of what is possible for them.
Community support in tough times
These communities may also be zones of high youth unemployment. Research conducted in former manufacturing centres of the UK with high unemployment shows that local community relationships provide critical support when times are tough. These local networks may also provide access to casual employment.
However, these communities operate as both resources and limits to young people’s biographies. The resources they offer may not provide opportunities beyond their local place, and young people may be personally invested in forms of work that reflect the history of their community. For example, young men may aspire to futures in manufacturing that are no longer locally available.
Similar <a href="https://www.propertyobserver.com.au/https://www.palgrave.com/us/book/9781403939326">results</a> have been found in rural Australia, where established expectations about suitable work may not reflect actually existing opportunities available to local youth.
As a consequence, people must re-evaluate who they are and who they can become. This re-negotiation of personal identity is a key aspect of navigating changing labour markets in areas of high youth unemployment.
A complex policy issue
Youth unemployment is a complex policy issue with no silver-bullet solutions. Simple approaches based on individual employability are destined to fail.
Local communities and young people themselves are grappling with rapid economic change.
To be successful, education and training programs must work with local communities alongside investment in regional economies aimed at creating new employment opportunities when established industries leave.
Only in this way can education and employment policies support young people to navigate regional Australia’s changing labour markets.
David Farrugia is lecturer, School of Humanities and Social Science, University of Newcastle and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/david-farrugia-243862" target="_blank">here</a>.
 
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Youth unemployment: local communities essential for helping young people find work

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Prime Minister Malcolm Turnbull has said he will call a July 2 double-dissolution election if the Senate does not pass legislation aimed at restoring the Australian Building and Construction Commission (ABCC).
The PM has said that:
<ul>
<li>since abolition of the ABCC, days lost to industrial disputes have increased by 34 percent;</li>
<li>two-thirds of all industrial disputes in Australia are in the construction sector and;</li>
<li>industrial disputes in Australia are at their highest level since 2010.</li>
</ul>
Are those assertions correct? Let’s check the data.
Are days lost to industrial disputes up 34 percent since the ABCC was abolished?
The ABCC was introduced in 2005, under the Howard government. Labor abolished the ABCC in March 2012 and replaced it with the Office of the Fair Work Building Industry Inspectorate.
When asked for a source to support his assertion about the 34 percent increase, the PM’s spokesman sent a table drawing on figures from the Australian Bureau of Statistics (ABS) data set on industrial disputes:
The spokesman said that:
ABS data suggests the introduction of the ABCC in late 2005 helped to reduce the rate of industrial disputes in the construction industry.
<ul>
<li>Pre-ABCC, the number of working days lost per 1000 employees in construction was five times as much as for all industries (56.1 versus 10.4 days).</li>
<li>During the ABCC’s operation, this dropped to around two times as much (9.6 days versus 4.2 days).</li>
<li>Since the ABCC’s abolition, the number of working days lost per 1000 employees in construction has averaged around 4.5 times the rate for all industries.</li>
</ul>
Indeed, we can clearly see from the graph below that, in construction, working days lost due to industrial disputes fell after 2005 and stayed low to 2009. Then, there was an increase in 2010 and big spikes in 2011 and 2012.
The big spikes in construction sector working days lost due to industrial disputes in between 2010 and 2012 coincided with several large construction sector <a href="https://www.fwbc.gov.au/fwbc-secures-200000-finding-against-cfmeu-and-mcdonald">disputes</a> and strikes.
As reported elsewhere, a 2014 Productivity Commission report concluded that:
The evidence that the ABCC stimulated material improvements in aggregate productivity or achieved cost reductions is weak… The ABCC is likely to have had its primary impact on unlawful conduct and on local productivity and costs at particular sites.
By taking the average number of working days lost in the construction industry (per 1000 employees) during the ABCC era and comparing it with the average number of working days lost in the construction industry (per 1000 employees) in the post ABCC era, it is possible to conclude it has risen 34% (or 3.3 days).
The PM’s statement is supported by ABS data.
Are two-thirds of all industrial disputes in Australia in the construction sector?
This assertion only true for the December 2015 quarter – which happened to be unusually high.
In other quarters, construction accounted for a much smaller proportion of working days lost, as the chart below shows:
Working days lost in construction due to industrial disputes has been consistently higher than the average across all industries since 2012.
It’s worth noting though, that the same data set, at certain time points, puts working days lost due to industrial disputes in the coal mining sector at much higher than construction.
The coal mining industry disputes were happening at the peak of the mining boom. Days lost due to industrial disputes spiking in 2010 and 2012 when a shortage of workers on major projects put unions in a strong bargaining position.
To sum up: the PM’s assertion that two-thirds of all industrial disputes in Australia are in the construction sector is correct for December 2015 only.
Overall, however, his comment is misleading because he is using the unusually high December 2015 quarter as a benchmark. The long run average for construction for 2010 to 2015 is just under 30% of all days lost (still the highest share of any industry). The average between 2005 and 2009, with the ABCC, was around 10% of all days lost.
Are industrial disputes in Australia at their highest level since 2010?
As shown in the chart below, ABS data shows the total number of industrial disputes in the 12 months ending December 2010 at 227. For the 12 months ending December 2015, the figure is 228.
What that time frame doesn’t show you is that, overall, the number of industrial disputes has declined greatly in the last few decades. The longer term trend is depicted in the chart below:
So the PM’s assertion that industrial disputes in Australia at their highest level since 2010 is correct, but relies on a selective choice of time periods.
The rate of industrial disputes has been trending down in recent decades, basically following the fall in trade union membership.
Verdict
It’s true that days lost to industrial disputes in the construction sector (reported to the ABS) have increased since 2010. They are now running at a higher level than when the ABCC was operating – at about 34% higher for the time periods indicated.
The PM’s statement that two-thirds of all industrial disputes in Australia are in the construction sector is correct for December 2015 only. Overall, his comment is misleading because the PM is using the unusually high December 2015 quarter as a benchmark. The long run average for 2010 to 2015 is just under 30 percent of all days lost (still the highest share of any industry). The average between 2005 and 2009, with the ABCC, was around 10 percent of all days lost.
The PM’s assertion that industrial disputes in Australia are at their highest level since 2010 is correct, but relies on a selective choice of time periods. There were more disputes in March 2010 and December 2009 than December 2015. However, for the time period he referred to, the claim is correct. 
Gerard de Valence is senior lecturer, University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gerard-de-valence-105933" target="_blank">here</a>.
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Are two-thirds of all industrial disputes in Australia in the construction sector?

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Prime Minister Malcolm Turnbull has written a blog disputing the Grattan Institute's report recommending significant changes to negative gearing that could save more than $5 billion a year.
"I have a great deal of respect for John Daley and the Grattan Institute, but on this occasion they have it wrong," <a href="https://www.malcolmturnbull.com.au/media/misconceptions-about-negative-gearing" target="_blank">Mr Turnbull wrote in a blog post on his website</a>.
"Unfortunately, the paper is littered with factually incorrect statements, claims that are unsupported by evidence and direct contradictions.
"And its economic analysis in many places leaves a lot to be desired."
"And its economic analysis in many places leaves a lot to be desired.
Malcolm Turnbull's then lists the following examples:
<ul>
<li>
The paper claims that negative gearing “goes beyond generally accepted principles for offsetting losses against gains”.  But this is factually incorrect.  The ability to deduct interest and other costs from personal exertion income has been a generally accepted principle in Australia’s tax system for more than a hundred years. While there are some exceptions to this principle, they have been strictly limited to instances of flagrant abuse (as was claimed to occur with ‘hobby farms’) or to situations where taxpayers might use losses to gain welfare benefits.
</li>
<li>
The paper argues that negative gearing and the CGT discount create significant distortions in the housing market, but then directly contradicts this when it says that changing them will have little impact.  Really?  How can changing the policies that Mr Daley says are supposed to create such huge distortions have no impact?
</li>
<li>
The paper argues that negative gearing benefits wealthier taxpayers. However, in countries which have adopted the ‘quarantining’ approach, the result has been to drive middle and low income earners out of the investment market, as they cannot afford to carry the loss-making periods when costs are high relative to rentals. In contrast, under both Daley’s proposal and Labor’s, wealthy Australians would continue to be able to deduct net rental losses from their other investment and property income. How can a change which would actually make the tax system more advantageous to those on higher incomes be fair? How will it improve wealth inequality when it will make it more difficult for those on lower incomes to build up wealth?
</li>
<li>
The paper ignores the fact that reducing the CGT discount to 25 per cent would give Australia the second highest CGT rate among comparable countries. While the paper claims this too would have no harmful impacts, that assertion is directly contrary to the evidence, which it systematically ignores.  
</li>
<li>
The paper also ignores the fact that under reasonable assumptions, if the CGT discount was reduced to 25 per cent, the effective tax rate on real capital gains would under reasonable assumptions be close to 70 per cent.  As a result, the paper dismisses, with little analysis, the important point that high rates of capital gains discourage entrepreneurial investment, whose returns generally come in the form of capital gains.    
</li>
<li>
Removing negative gearing would mean a tax increase for wage and salary earners and would affect incentives to work. The paper ignores these efficiency costs.
</li>
</ul>
 
Tax reform to target Australia’s distorting capital gains tax and negative gearing regimes could net the government A$5.3 billion in tax revenue per year, according to a new report from the Grattan Institute.
The report can be found <a href="https://grattan.edu.au/report/hot-property/" target="_blank">here</a>.
 
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Malcolm Turnbull blog disputing Grattan Institute negative gearing report

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Confidence in the residential building sector will be boosted by the Government’s announcement that it has out ruled out any change to the current negative gearing arrangements in the forthcoming May Budget, Wilhelm Harnisch from the Master Builders said. 
“The retention of negative gearing provisions for new and established homes is a long held policy by Master Builders and therefore Master Builders strongly backs today’s announcement,” he said. 
“The Prime Minister’s announcement means $8 billion of investment each year spent on renovation of private rental properties will continue and thereby boost economic growth and jobs for tradies,” Wilhelm Harnisch said. 
“Negative gearing underpins investment, largely by mums and dads, in private rental properties and plays a critical role by supplementing the shortage in public and social housing rental stock where there is a waiting list estimated to be around 200,000 households,” he said. 
“Master Builders in strongly backing today’s announcement is now looking to the major parties for sound policies that will tackle the structural barriers to housing affordability which is to increase the supply of new housing.
"Master Builders has called for national competition policy payments to state governments and local councils to implement targeted and permanent removal of the current unnecessary blockages that delay the supply of new housing and inflate the cost of new housing,” Wilhelm Harnisch said. 
“This is one of the key housing affordability reforms that Master Builders will be calling on both parties to deliver on for the next term of government,” Wilhelm Harnisch said. 
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MBA backs Coalition housing policy on negative gearing

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The five bedroom Castle Cove home of Kings Cross identity Fadi Ibrahim has been listed through Craig and Sharon Ireson of Ireson First National.
It was the luxury four storey <a href="https://www.realestate.com.au/property-house-nsw-castle+cove-122472810" target="_blank">Castle Cove </a>home, which now comes with a sophisticated 16 camera security system with finger print entry, where he survived a near-fatal shooting in 2009.
He was gunned down and shot five times as he sat in the front seat of his Lamborghini outside the home.
His wife Shayda Ibrahim was shot in the thigh. No one was ever charged over the shooting.
The Ibrahim's, who paid $1.05 million for the 1,021 sqm unrenovated property in 2006, are apparently eastern suburbs bound.
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Ibrahim Castle Cove home with 16 camera security for sale

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The Ukraine born entreprenuer Leon Kamenev has been pinpointed as the $80 million Vaucluse harbourfront mystery buyer.
He is expected to build his own private compound after securing four adjoining properties on Coolong Road.
<img src="https://www.urban.com.au/images/2016/04/26/Screen%20Shot%202016-04-26%20at%2010.19.02%20AM.png" alt="" width="1041" height="641">
He made his fortune co-founding the online takeaway delivery service Menulog which was sold last year for $855 million. His share was 55 percent.
He has been in Sydney since 1990 having graduated with an economics degree from the Moscow Academy of Management.
His current focus is the interactive maths teaching platform and app Matific.
The whispers of his site amalgamated emerged on the weekend, dubbed Sydney's most audaciously expensive residential property play since settlement.
The sellers were the Shein, Cohen and Singer families.
It involved two harbourfront homes and two non-harbourfront homes, totalling 4,250 sqm.
Occupying land between Nielsen Park beach and Vaucluse Bay beach, the location enjoys a northerly aspect with views over the boat-filled bay across the Harbour towards Manly. 
Kamenev currently owns in Vaucluse paying $4.4 million in 2003.
The deal tops the $70 million purchase by the billionaire Chinese property developer Dr Chau Chak Wing of the 3,300 sqm Vaucluse property of the casino tycoon James Packer and his former wife Erica.
Coolong Road's record was set at $45 million in 2008 with Ivan Ritossa, the then global head of foreign exchange at Barclays Capital, buying a heritage house on 4100 sqm.
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Menulog's Leon Kamenev secures $80 million Vaucluse harbourfront compound

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John McGrath, chief executive of McGrath Limited told The Weekend Australian that the recent stockmarket savaging caught the veteran real estate agent off guard.
“We were surprised and disappointed,” McGrath told The Weekend Australian in his first interview since an earnings forecast downgrade on Monday.
McGrath again increased their holdings, last week spending $500,000 to top up his stake to near 30 per cent.
McGrath says while listings are down across the industry and in most of the areas it operates in, the agency has increased its share from 3.2 percent to 3.5 percent of the market.
Meanwhile he has his team who bought into the float.
“This is my family, it’s not just an investment or a company I work for,” McGrath says.
“It’s something I started in my loungeroom.
“I can see the medium term long term, I know where we are gong to end up, but in the short term there is no doubt there is a feeling a pain for me as CEO, largest shareholder and founder of the business that we are having to go through this.”
But, he adds: “This is a long-term game.”
“Even post the market downgrade we will be delivering $26m-$27m in earnings.
"We have cash in the bank and we have no debt.
"We think we are in as good a position as ever,” he says, arguing he and the board — which includes chairman David Mackay, a former Kellogg CEO, and tech entrepreneur Daniel Petre — maintain their belief that a public listing was the right path for the company.
But Wendy McCarthy, a founding chair of McGrath Operations who left in June as she was never a float proponent, told Fairfax Media she imagined "he must be finding it very challenging and very disappointing."
"You've got people telling you everything is going to be fabulous and the float is oversubscribed and you believe it," said McCarthy, who praised McGrath's imagination and generosity.
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John McGrath says the listed real estate agency is his family

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 Six months ago we noted that there were more people in jobs or looking for jobs than ever before across a raft of age categories. And at that time we suggested there were signs that participation rates seemed to be topping out – starting to trend sideways. 
But interestingly over the past six months workforce participation rates for those older than 55 years have lifted and to fresh record highs (using 12-month rolling averages).
<a href="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%209.07.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%209.07.39%20AM.png" alt="">
But while seniors are more active in the labour force, the participation rate for the 15-19 years grouping continues to trend lower. And the participation rate of 20-24 year Aussies has been largely stable and still well below the record highs set 25 years ago.
In rolling average terms, the overall labour force participation rate has been rising since May 2015 and now stands at a 2ó-year high of 65.0 percent, but still below the high of 65.5 per cent set in 2011. However a key reason why overall workforce participation is still below record levels is the lower participation rate of young people, with more choosing to do further studies before joining the workforce.
The latest job numbers also show that there are 3.66 million people over the age of 65 compared with 3.53 million Australians aged between 25-34 years. The number of people over the age of 65 is growing at a 3.4 percent annual rate. In contrast the number of people aged 25-34 is growing at a 1.58 percent annual rate (8-year low) and the number aged 35-44 is growing at a 0.21 percent annual rate – slowest rate recorded.
Australians are living longer and are opting to stay in the workforce longer – even if on a more casual or part-time basis.
But the trends are incredibly positive for Government finances and the economy as a whole. The risk had been that the ageing population would lead to lower tax revenues and rising health and social security spending. But a healthier aged population and greater workforce participation by seniors can buy the politicians more time in coming up with a new tax structure that will take the economy forward.
What do the figures show?
 Detailed employment data
A raft of detailed job data for March was released yesterday. Data on employment by industry is released quarterly and the most recent data was published last month. 
This month we focus on participation rates (proportion of people in jobs or looking for work) across age brackets and have assessed rolling annual averages.
In the year to March, the participation in the job market of those 25-34 years was 83.2 per cent, just off the record high of 83.3 percent set in the year to February.
The participation in the job market of those 35-44 years was 83.8 percent,  a record high.
The participation in the job market of those 60-64 years was a  record high of 56.0 percent.
The participation in the job market of those 65 years plus was 12.3 percent,  a record high
The participation in the job market of those 55-59 years was 73.6 percent,  a record high.
The participation in the job market of those 45-54 years was 83.4 per cent, just below the record high of 83.6 percent set in April 2011.
The participation in the job market of those 20-24 years was 79.2 per cent, up from the record low of 78.0 per cent set in November 2014.
The participation in the job market of those 15-19 years was 53.8 per cent, up from the record low of 53.2 percent set in July 2014.
The number of people in the civilian population aged 65 plus is 3.66 million, up 3.43 percent on a year ago.
Those aged 25-34 years total 3.53 million people (up 1.58 per cent) and those aged 35-44 years total 3.22 million people (up 0.21 per cent).
There are 3.61 million Aussies not in the labour force and the number is currently falling at a 1.51 per cent annual rate – just off the fastest annual decline seen in the past nine years.
Average hours worked in the year to March was 32.3 hours. The average measure has been largely unchanged over the past year but down on recent highs of 32.9 hours set in early 2012.
<a href="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%209.09.25%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%209.09.25%20AM.png" alt="">
What is the importance of the economic data?
The Australian Bureau of Statistics (ABS) provides  detailed labour market figures one week after releasing ‘top level’ statistics of employment &amp; unemployment levels across states and territories. The detailed data is useful in identifying broader underlying trends and instructive about the health of the economy.
<a href="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%209.11.31%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/26/Screen%20Shot%202016-04-26%20at%209.11.31%20AM.png" alt="">
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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Record share of seniors in workforce: CommSec's Craig James

A who's who of Australian surfing, business and entertainment has emerged on title records following the completion of Esprit Rainbow Bay, the latest boutique beachfront apartment development by former professional surfer Paul Gedoun's S&amp;S Projects.

The completed project has attracted an enviable collection of owners, many with long-standing ties to the southern Gold Coast and the surf culture that has helped define Rainbow Bay and neighbouring Kirra for generations.

Given Gedoun's own background in surfing, it perhaps comes as little surprise that some of Australia's most recognisable surfers have chosen to buy into the development overlooking one of the country's most celebrated stretches of coastline.

Pezet Matheson directors Jayde Pezet and Todd Matheson launched the project in late 2021, and have managed the sales campaign all the way through to its sell-out and recent completion.

<img alt="Esprit" data-entity-type="file" data-entity-uuid="08fc6261-b84e-4b09-8a44-66d3067fd0d1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-29%20at%208.51.05%E2%80%AFAM.png?VersionId=4AOcb6ETZwNUnMPdTtz1B3pZAIB_jgZ2" />

Former world champion Mick Fanning, who grew up in Coolangatta, secured an apartment in 2023. He paid&nbsp;$2.07 million. Last year he sold his Bilinga home for over $16 million.

Three-time world champion Joel Parkinson also purchased in the development, alongside big wave surfer Mark Mathews. Mathews bought the most expensive apartment in the building, spending just over $4 million.

Joining them is Rip Curl founder Doug Warbrick, whose company helped shape Australia's global surfing industry over the past five decades.

The appeal of Rainbow Bay has extended well beyond the surfing community.

International DJ Paul Fisher purchased an apartment through his investment vehicle, YLB Developments, an abbreviation of his trademark phrase "You Little Beauty".

The purchase comes as Fisher and his wife Chloe are developing their own luxury apartment project further north in Palm Beach. Their boutique beachfront development, Pescado, comprises just seven apartments on Jefferson Lane, which start from just shy of $6 million. The couple intend to retain the two-level penthouse as their Australian base between international touring commitments.

Melbourne Storm coach Craig Bellamy and his wife Wendy have also invested in Esprit, purchasing two apartments after spending decades holidaying on the southern Gold Coast. They also have a luxury apartment in Joe Adsett's Rockpool, less than 400m away from Esprit.

<h2>Boutique project draws owner-occupiers</h2>

Esprit launched in 2021 and sold strongly, with buyers drawn to its boutique scale, beachfront position and contemporary design.

The completed development comprises 94 apartments across 11 levels, offering expansive floorplans designed primarily for owner-occupiers rather than the investor market.

Crowning the building is Club Esprit, pitched as being the Gold Coast's first residential rooftop wellness centre. The roof features a&nbsp;25 metre magnesium lap pool, which is surrounded by wet daybeds and poolside cabanas,&nbsp;multiple barbecue areas,&nbsp;a yoga and relaxation play lawn, and a private dining room with a kitchen scullery, bar, lounges, and an outdoor terrace.

The wellness centre is&nbsp;fully equipped with a Technogym, ice bath, infra-red sauna, steam room, thermal room, and treatment room. The roof has views spanning&nbsp;Rainbow Bay, Snapper Rocks and the Pacific Ocean.

<h2>S&amp;S Projects continues to shape Rainbow Bay</h2>

S&amp;S Projects founder Paul Gedoun has become one of the key figures behind Rainbow Bay's evolution over the past several years.

After establishing S&amp;S Projects, Gedoun has focused on delivering lifestyle-driven apartment developments designed primarily for owner-occupiers seeking a permanent coastal home.

Esprit is Gedoun's third completed project in Rainbow Bay, following Flow and Awaken, both of which achieved record prices for the suburb.

He is now delivering <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, a 38-apartment development on Boundary Street that is currently selling, and has no plans to leave the precinct anytime soon. S&amp;S Projects has also lodged plans for its fifth Rainbow Bay development, an 88-apartment project on Boundary Street featuring a strong wellness focus.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">First look: S&amp;S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street</a>

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Joel Robinson

Who's who of buyers revealed as Esprit Rainbow Bay settles

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;

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" />

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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.

Jonathan Chancellor

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