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Industrial property leasing nationally over the 12 months to March 2015 is up nearly 40% annually, according to Savills national head of research, Tony Crabb.
"The data confirmed the recent upswing in the market and, with Melbourne and Sydney accounting for 66% of the transactions in square metre terms, also provided further evidence of the economic shift to the non-mining states," said Crabb.
"It’s a good news story for Sydney and Melbourne, and while Brisbane has fared remarkably well Perth has not, but it’s important to note that this is a cyclical rather than a structural phenomenon and one which WA will recover from, indeed a spate of recent leasing deals would suggest some green shoots of recovery already."
The data reveals 2,222,163 square metres of industrial space was leased in the year to March, or more than 600,000 square metres above the corresponding period to March 2014. The five year average is 2,406,514 square metres.
At 714,977 square metres reported leased, Melbourne’s figure was up a remarkable 460,000 square metres on last year (255,783 square metres) while Sydney recorded 757,474 square metres of space leased compared with 659,000 square metres in the previous period.
Over in the west, by contrast, Perth recorded a total of 144,926 square metres leased, down more than 45% on the 264,744 square metres recorded to March 2014, while in the other key resources state, Brisbane (485,286 square metres) was up a surprising 70% (283,802 square metres to March 2014).
Savills’s national head of industrial, Darren Curry, said the gradual shift of activity to the non-mining states was progressing as expected.
"And we’ll continue to see that trend over the coming 12 months driven by key players in the transport and logistics sector and especially the warehousing requirements of onlines and new international retailers such as H&amp;M and Uniglo, among others, along with new requirements from key players such as IKEA," Curry said. 
<img src="/images/2015/04/29/chart-ailr-92-one.jpg" alt="">
Source: Savills
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jchancellor-FAypfDUnLy

Industrial property leasing on the upturn: Savills

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James Packer's Crown Resorts has been ordered to endeavour to resolve its trademark dispute with the burgeoning apartment developer, Iwan Sunito's Crown Group.
The Federal Court Justice John Griffiths ordered the parties to attend a mediation session held by a private mediator.
Crown Resorts is trying to stop Iwan Sunito's company from trading under the name Crown Group Holdings, claiming the apartment developer is cashing in on the $10 billion casino operator's brand.
Sunito's Crown Group filed a counter claim. Both seek wealthy Asian investors.
<img src="/images/2015/02/11/corwn-logogs-feb-11-two.jpg" alt="">
Crown Resorts logo (left), Crown Group logo (upper right) with logo for Crown Apartments (lower right)
The property developer has $3.5 billion of residential developments in its Australian project pipeline.
Spokesmen from Crown Resorts and Crown Group both declined to comment on the court case when contacted by Fairfax Media.
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Crown Resorts and Crown Group told to mediate name dispute

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Developer Villawood Properties has established new Queensland offices in Southport ahead of its launch of two new Gold Coast residential communities.
Founded in Victoria in 1989, Villawood has developed more than 60 award-winning residential masterplanned communities along the eastern seaboard.  
"This year, it is expanding its Queensland operations to diversify its land bank and take advantage of key growth corridors," Villawood Properties co-executive director Tony Johnson said.
The new Southport office is 110 square metres on level six of 64 Marine Parade.  It previously occupied an office at 11-13 Station Street, Nerang.
The relocation comes as Villawood Properties has appointed Christopher Ciuffetelli to the role of assistant development manager in Queensland.  
He joins Michael Williams, Villawood Properties state manager – development.
Villawood Properties co-executive director Tony Johnson said the new Queensland communities were part of its "aggressive three-year growth strategy" and combined represent a total land value of $50 million.
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Villawood setup for Gold Coast projects

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The Bargara Beach Plaza Shopping Centre, located east of the key regional Queensland city of Bundaberg, has been listed in the circa $4 million price category.
The well-established Bargara Beach Plaza Shopping Centre is being marketed by Jon Tyson and Michael Harcourt of Savills Retail Sales.
The property comprises two detached single-level buildings on a 3,048 square metre site with a total gross lettable area of 997 square metres split over 13 tenancy areas.
Tenants include Wide Bay Australia Bank and the Queensland Government Electorate Office.
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Around $4 million tipped for Bundaberg shopping centre

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Nadia Karkar has tendered her resignation as the Kay &amp; Burton chief executive officer, effective 30 April 2015.
Michael Gibson and Ross Savas will now serve as joint managing directors as the CEO role will not be replaced.
In early 2014, Nadia Karkar took he job having been a corporate lawyer in New York and Hong Kong. She had also been an associate director at Hastings Funds Mangement having a MBA from the University of Chicago, Booth School of Business, and a Melbourne University Bachelor of Commerce and Laws (Hons). 
“We are thankful for Nadia’s strategic guidance and leadership over the past 14 months," said Ross Savas. 
“We wish Nadia the very best in the next phase of her career.
"The company has undergone a successful transformation both from an operational and branding point of view and, no doubt, Nadia has set Kay &amp; Burton on an innovative course for changing times.”
“I am proud that we were able to successfully implement such a large number of strategic initiatives in such a short space of time," said Karkar.
"I have done what I set out to do and it is now time for me to pass the torch along to those who, without doubt, will make it shine even brighter.
“I am proud that we were able to successfully implement such a large number of strategic initiatives in such a short space of time.  I have done what I set out to do and it is now time for me to pass the torch along to those who, without doubt, will make it shine even brighter.”
<div><img src="https://kayburton.com.au/app/webroot/files/Our%20People/South%20Yarra/Nadia%20Karkar.jpg" alt="Nadia Karkar"></div>
<div class="col-sm-7 people-text-col text-">
<h1>  
</h1>
</div>
 
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Kay & Burton to have joint CEOs

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Stockland managing director Mark Steinert has been appointed the national president of the Property Council of Australia, the peak body for Australia’s $680 billion property industry.
He takes over from Darren Steinberg, CEO of Dexus Property Group after his four years in the role.
The property industry represents 11.5% of GDP, employs more than 1.3 million people and contributes $34 billion in real estate specific taxes alone, and Steinert said the role of National President was an opportunity that came with great responsibility.
Steinert’s appointment coincided with the election of a new national board with Property Council chief executive Ken Morrison welcoming the "powerful new board".
Property Council of Australia National Board
<ul>
<li>Mark Steinert - Stockland - National President 
</li>
<li>Carmel Hourigan - The GPT Group - Vice President 
</li>
<li>David Southon - Charter Hall - Vice President 
</li>
<li>Darren Steinberg - DEXUS Property Group - Immediate Past President 
</li>
<li>Peter Allen – Scentre Group  
</li>
<li>Kingsley Andrew ‐ Stockland 
</li>
<li>Stephen Conry ‐ JLL 
</li>
<li>Tarun Gupta ‐ Lend Lease 
</li>
<li>Sue Kench - King and Wood Mallesons 
</li>
<li>Ming Long - Investa 
</li>
<li>Derek McMillan - Australian Unity Retirement Living 
</li>
<li>Chris Palandri - Brookfield Multiplex 
</li>
<li>David Rolls - Mirvac 
</li>
<li>Nigel Satterley AM - Satterley Group 
</li>
<li>Steven Sewell - Federation Centres 
</li>
<li>Adam Tindall - AMP Capital 
</li>
<li>Carolyn Viney - Grocon 
</li>
<li>Kurt Wilkinson - Brookfield 
</li>
<li>Ben Yates - Development and Advisory</li>
</ul>
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Stockland's Mark Steinert to lead Property Council of Australia

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The past 24 months have seen a significant increase in commercial property capital values with limited rental growth, according to the GPT Chief Investment Officer, Carmel Hourigan.
"Our expectation is that capital values will increase again in 2015 driven by rental growth and a reduction in returns required by investors," Hourigan said at a presentation for CEDA's Property Outlook 2015.
She noted Australian commercial property values are yet to reach historic highs despite historic low bond yields and other ‘global’ cities recording all time low property yields.
Her speech noted two key structural factors influencing capital values:
<ol>
<li>"The globalisation and liberalisation of capital flows leading to new investors in the Australian property market; and 
</li>
<li>"An ageing population driving a hunt for income generating assets. The fact is a government bond at 2.4% is simply not enough to fund an Australian’s retirement. 10 years ago that number was 5.6%, now it is half. As a result, investors are accepting moderately higher risk to invest in real estate and infrastructure.</li>
</ol>
"On the cyclical side, the global and domestic economic recovery has also led to a strengthening in income from commercial property, however the recovery has been slower and growth is expected to remain moderate.
"Australian corporate profit growth remains heavily reliant upon cost reduction rather than revenue growth and this will lead to continued pressure on rents."
Since the GFC in 2008, Hourigan noted capital values have slowly recovered and are on their way to getting back to the previous peak.
Transaction volumes or the amount of money actually being spent buying and selling commercial property is also tracking well above the height of the last cycle which reflects offshore buyer and merger and acquisition activity.
The majority of activity of that activity has been in the office sector in particular in gateway cities on the eastern seaboard.
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Australian commercial property values are yet to reach historic highs: GPT's Carmel Hourigan

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Kuwaiti sheikh Mubarak Abdullah Al-Mubarak Al-Sabah won a recent Victorian Civil and Administrative Tribunal (VCAT) hearing that granted permission to remove covenants on his Port Melbourne development site.
The sheikh owns developer Action Group Australia, which owns 1-5 Waterfront Place.
The company wants apartments possibly up to 10 storeys adjacent to the Station Pier entrance.
The covenants on the land's title were restricting the development.
The Kuwaiti billionaire bought the site for $21 million in 2007 through the Australian arm of the sheikh’s company that also operates hotels in Melbourne and Brisbane.
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Kuwaiti sheikh wins latest round in Port Melbourne planning dispute

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Illawarra Mutual Building Society (IMB) has sold its Wollongong office block for $6.25 million.
The 253 Crown Street premises were bought by the local burgeoning broadcasting company, WIN Properties Pty Ltd.
IMB has entered into a leaseback arrangement for its head office building.
It advised there were terms that provided IMB "both security of tenancy and the flexibility to upgrade to new premises after 35 years in the current location".
The profit on sale of the property was put in excess of $2 million.
IMB was founded in 1880 by a small group of Wollongong pioneers.
It has become one of Australia’s leading and largest mutual financial institutions, still calling Wollongong home, managing assets in excess of $4.6 billion, with 42 branches and more than 180,000 members throughout the Illawarra, NSW South Coast, Southern Highlands, Sydney, ACT and Melbourne.
WIN bought 243 Crown Street last year for $6 million from the Commonwealth Bank of Australia.
WIN bought 221 Crown Street in 1991 for $2.85 million.
Two of WIN's next purchases were in 1997 of 233 Crown Street for $1.2 million with 231 Crown Street costing $740,000.
WIN also owns several properties on Keira Street. 
Earlier this year the local Fairfax Media paper reported almost $1 million could be spent on sprucing up rundown buildings in Wollongong’s CBD under the council’s facade rejuvenation scheme.
Owners of 27 properties along Crown Street are in line to benefit from $300,000 of Wollongong City Council funding, to be handed out in grants of up to $20,000 and used to cover half the cost of a shopfront makeover.
In turn, business owners have committed to spend more than $650,000 of their own funds to improve the look of signage, paint work, awnings and security grills.
According to economic modelling, which considers direct and indirect flow-on effects including the use of local contractors, the council says the program could generate $2.1 million of economic activity in the city.
Of the applications set to receive funding, 11 are for heritage-listed sites and 14 are for properties in the notoriously scruffy western end of Crown Street.
Some of the businesses that could benefit from the scheme included the IMB building at 253 Crown Street with a proposed $20,000 grant.
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IMB sell Wollongong office to burgeoning WIN Properties

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The Pacific Royale, Surfers Paradise has been listed for sale as a development site.
The Gold Coast whole block offering is listed through Colliers International agents Darrell Irwin and Geoff Lamb.
<a href="https://rca.colliers.com.au/property-land+development-qld-surfers+paradise-501511035" target="_blank">Tenders closed yesterday, 28 April</a>, for the 44 apartments over 14 levels.
It is a 2,251 square metre site at 7 Northcliffe Terrace on Maxwell Avenue corner.
Surfers Royale Limited owns and operates the Surfers Royale timeshare resort.
The operational management of the company is contracted to Surfers Royale Management Pty Limited, who sub-contracts to Classic Leisure Pty Limited.
The names of the directors have been Anthony Wilson, Frankie Bonomo and Carole Smith, who has over 25 years experience in the timeshare and tourism industry. 
The result from operations was a profit after tax for the year ended 30 June 2014 of $262,875 (2013: loss of 206,941). 
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Surfers Royale, Surfers Paradise whole block offering

One of Brisbane's last major riverfront redevelopment opportunities has taken a significant step forward, with Lendlease selected as the Queensland Government's preferred development partner for the former Visy site in South Brisbane.

The seven-hectare industrial site, positioned between South Bank and West End and 1.3 kilometres from the Brisbane CBD, will be transformed into a mixed-use precinct expected to deliver more than 4,000 new homes alongside extensive public open space and riverfront parkland.

The project is one of the largest urban renewal opportunities currently planned in Brisbane and is expected to play a key role in accommodating the city's growing population ahead of the 2032 Olympic and Paralympic Games.

Plans for the precinct include a network of riverfront promenades and boardwalks, new public plazas, parkland, amphitheatre-style gathering spaces and shared pedestrian and cycling links designed to reconnect the long-isolated site with the Brisbane River.

The Queensland Government is targeting delivery of the first homes and key public spaces before the 2032 Games, allowing the precinct to begin contributing new housing and public amenity well before the broader masterplan is complete.

The redevelopment is also expected to support more than 3,000 jobs across planning, construction and ongoing operations.

For Lendlease, the appointment adds another major urban regeneration project to its Queensland portfolio. The developer has operated in the state for more than 70 years and has delivered a number of large-scale mixed-use precincts in partnership with government.

Lendlease Development CEO Claire Johnston said the project represented one of Brisbane's most significant redevelopment opportunities.

"The transformation of the former Visy site represents a rare opportunity to reimagine one of Brisbane's most significant riverfront locations, deliver thousands of much-needed homes, and create long-term legacy," Johnston said.

"In partnership with the Queensland Government, we have the opportunity to create a new riverside destination that will help shape Brisbane's growth and how people experience the city for decades to come.

"This is exactly the type of large-scale, city-shaping development that will provide lasting benefits for Queensland, bringing together housing, jobs and world-class public spaces."

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the riverfront transformation would deliver a thriving new community precinct.

“The Crisafulli Government is delivering this golden opportunity to unlock a riverfront jewel for all Queenslanders,” Deputy Premier Bleijie said.

“This is a once-in-a-generation moment to reshape a significant slice of Brisbane and deliver lasting benefits – thousands of new homes, and public spaces for all Queenslanders to enjoy well beyond the 2032 Olympic and Paralympic Games – unlike Labor’s plan which would have delivered zero benefits and zero new homes.

“Queensland is well and truly open for business and through partnership with the private sector, we are accelerating delivery while ensuring strong housing, community and economic outcomes."

Early works on the precinct are expected to commence in April 2027.

Joel Robinson

Lendlease selected to deliver transformative South Brisbane riverfront precinct

Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year.

The developer plans to redevelop the 13,088 sqm WIN Grand megasite into <a href="https://www.apartments.com.au/new-apartments/crown-square-216-238-keira-street-wollongong-nsw-2500">Crown Square</a>, a new $500 million precinct with nearly 600 apartments. It also has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

First look: Level 33 upsizes Wollongong apartment towers

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada Australia</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada Australia's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada Australia as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada Australia files for trio of apartment towers in Campsie town centre</a>

Arada Australia entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada Australia doubles down in Campsie with 33-storey Metro-front tower plans

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

Jonathan Chancellor

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