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EXPERT OBSERVATION
The October Labour Force Survey surprised with a 19.0k decline in employment; the market median was for a 15k gain while the lowest forecast in the range was +7k.
And just a day earlier there was a disappointing update on wages.
While the rise in the September quarter Wage Price Index (WPI) was on market expectations at 0.5% it was below our forecast as we had been hoping that a combination of stronger wages growth in Victoria and the 3%yr rise in the minimum wage would have fed through to broader wage increases. That it has not, and now with signs the labour market is weakening, our forecast for a trend rising in unemployment suggests this is about as good as it will get for wages.
Wednesday saw the release of the wages update and while there were some signs of (fading) wage pressure, particularly in Victoria, we were disappointed to see that these wage pressures had not spread further. In the last year the average quarterly rise in the WPI was 0.6% but this is a soft 0.6% with rounding as the quarterly prints were 0.5% (Q4 2018), 0.6% (Q1 2019), then 0.5% in Q2 and Q3.  In September the annual rate eased a touch to 2.2% from 2.3%, a pace it had held for previous four quarters and was, at best, a very modest acceleration from the low of 1.9% in 2017.
It is true that public sector wages are running a bit faster; in the quarter the annual pace eased to 2.5%yr from 2.6%yr in the June quarter, which was the fastest pace since December 2015. However, the weight for public sector wages is not large enough to change the overall picture, with private sector wages matching total wages - the annual pace for private wages easing to 2.2%yr from 2.3%yr in the June. The 2.4%yr pace in March 2019 was the fastest pace of private sector wage inflation since December 2014. 
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/OctNov2019/LFWagesPubPriv.JPG" alt="">
The state data did reveal some insights into wage dynamics but it also highlighted some significant questions. Much has been made of higher wage inflation in Victoria and how that it is associated with larger pay rises in the public sector, particularly for health workers. While it is true that health workers wage inflation is running faster in Victoria than the national average (4.3%yr vs 2.1% nationally and 3.0%yr NSW), this does not explain why construction, wholesale, accommodation &amp; food services, transport, media, and professional &amp; scientific services are also running at a faster pace than those industries' national averages.
In the end, Victorian private sector wages are running above the national average at 2.5%yr. Compare this to the 2.1%yr pace in NSW, 2.0% in Qld and 1.8% in WA. The only state with a faster pace of private sector wage inflation was SA at 2.6%yr.
As such, Westpac argues that the recent lift in wage inflation in Victoria was more to do with a tightening of labour market conditions there than outsized public sector wage gains. Victorian underutilisation fell almost 3ppt from early 2017 to early 2019. With a lag of around 6 months, this tightening in the labour market should lead a lift in wage inflation and, as expected, it did so from June 2017 with wage inflation lifting from 1.9%yr to a peak of 2.6%yr in June 2019.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/OctNov2019/LFWagesUnderState.JPG" alt="">
The real question in our mind is why NSW wages have not responded in the same way they have in Victoria. Underutilisation was never as high in NSW as it was in Victoria (14% vs. 16%) and it has fallen to an even lower level currently (12% vs. 13%) and yet the best wages could do in NSW was lift from a low of 1.9%yr in 2016 to a peak of 2.3%yr in March 2019.
With wages in NSW responding to earlier tight labour market conditions, and growth turning, employment growth has started to soften, and with robust participation, unemployment is expected to drift higher both nationally and, in particular, in NSW.
This puts at risk Westpac’s current forecast of wage inflation drifting modestly higher from here -  peaking around 2.4%yr in 2020/2021, and given how well contained wage inflation is across the nation, and between sectors, this modest uplift  now looks optimistic. Note that the RBA recently lowered their forecast for the WPI in the November SMP (released prior to this week's WPI print). The RBA sees annual wages growth holding at just 2.3% through the forecast horizon.
The wage update was followed by the October Labour Force survey which highlighted the risk of softer employment growth, and rising unemployment (and underemployment). The 19.0k decline in employment was a significant surprise (market median +15k) as was that most of this decline was accounted for in NSW (–10.3k).
However, the more meaningful data point was the 0.1ppt rise in the unemployment rate to 5.3%. While participation eased as you would expect with a weak employment print, 66.0% from 66.1%, the unemployment rate still bumped up to 5.3% (5.32% at two decimal places) from 5.2%.
Our expectation has been for the unemployment rate to rise. That is despite an easing in the female participation rate, but that easing will be insufficient to offset the softer growth in employment.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/OctNov2019/LFWagesPartRate.JPG" alt="">
Further pressure on the unemployment rate will come from a still robust participation rate amongst males.
Overall the interaction between our employment growth forecasts and participation outlook points to a lift to 5.6% in the unemployment rate by mid 2020.
Of further significance in the October Labour Force Survey was the jump in the underemployment rate to 8.5% (8.52% at two decimal places) from 8.3%. It was 8.54% back in August and the October update strengthens the trend drift higher in underemployment. This month there was a contraction in both full-time and part-time employment (–10.3k full-time and –8.7k respectively) driving a 0.2% decline in hours worked. This highlights a fundamental weakness in the report that is driving underemployment higher.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/OctNov2019/LFWgesWunemp.JPG" alt="">
This trend drift higher in underemployment, and the slower pace of gains in hours worked compared to total employment (1.4%yr vs. 2.0%yr), reinforces the observation of the broader slack in the labour market slack beyond the 5.3% unemployment rate.
We do, however, acknowledge the month to month volatility in the labour force survey and while the October update was weaker than anticipated, it was not enough to change our view that the labour market is softening gradually which will drive a modest rise in unemployment and underemployment. Our leading indicators of employment are suggesting that the annual pace should be somewhere around 2.0%yr. The current pace is 2.0%yr and it is our forecast for it to slow to around 1%yr in mid-2020.
The Australian economy is a long way away from the RBA’s full employment aim of 4.5% and if the RBA wants to use monetary policy to drive the economy in that direction, it has a lot more work to do. However, the gradual pace of the deterioration will allow the RBA time to monitor the economy before having to act again.
In our view, while rate cuts along with the Government’s tax offset payments should help to support demand, we think it will be insufficient to get economic growth moving back to trend or above in 2020. As such we see employment growth continuing to moderate in early 2020 and expect that the resulting decline in participation will provide only a partial offset. We hold to our view that unemployment is likely to hit 5.6% by mid-2020 and see clear downside risks to our forecast for a modest lift in wage inflation.
JUSTIN SMIRK is ‎a senior economist for Westpac 
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j.ballantyne1990-6AQqhLzZaK

Australian wages run out of puff just as the labour market starts to soften: Justin Smirk

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The Melbourne suburb of Reservoir is host to the highest volume of auctions this weekend, with 23 homes set to go under the hammer, according to CoreLogic.
Next busiest is Mount Waverley, also in Melbourne, with 19 scheduled auctions.
This week, the number of auctions scheduled to take place across the combined capital cities is expected to fall, with 2,369 currently being tracked by CoreLogic, decreasing from the 2,590 auctions held last week at final results.
Over the same week, last year a higher 2,701 auctions took place across the capital cities.
Both Melbourne and Sydney are expected to see a decrease in activity this week, with 1,100 homes scheduled for auction across Melbourne, while Sydney is set to host 886 auctions, increasing on the 1242 and 947 auctions held last week respectively.
Within the smaller auction markets volumes like Brisbane and Canberra, auction volumes increase week-on-week, while Adelaide, Perth and Tasmania will see fewer auctions.
<img src="https://www.urban.com.au/images/2019/11/22/Auction%20Clearance%20NOV%2022.JPG" alt="">
The dearest home being auctioned off in Reservoir this week, according to RealEstate.com.au is <a href="https://www.realestate.com.au/property-house-vic-reservoir-132323006" target="_blank">5 Frier Avenue</a> (pictured is title).
The three bedroom, one bathroom house is being takent to auction with a price guide of $950,000 - $1,045,000.
It is described in the listing as a "classic Californian with unrivalled Oakhill prestige... with plenty of room to expand (STCA)."
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Reservoir is set to be the busiest auction suburb this weekend

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EG, an Australian real estate fund manager, announced its recent acquisition of a Perth office building for $79.05 million. 
The twelve-level, A-grade office accommodation at 2 Mill Street provides modern amenities in the core business precinct of Perth CBD, a short 5-minute walk from Elizabeth Quay. 
The asset has been acquired with a WALE of 1.8 years.  
The acquisition is the second property secured for the $800 million Australian Core Enhanced Fund (ACE), an open-ended, diversified fund targeting office, retail and industrial assets. 
“We are pleased to see our Core Enhanced Fund expanding and diversifying through the acquisition of high-quality assets,” said Aakriti Chona, Senior Manager, EG. 
“2 Mill Street delivers quality office space with a strong tenant profile. This asset is perfectly positioned to benefit via a targeted refurbishment and leasing strategy as Perth experiences improving macroeconomic conditions. ” said Dan Farley, Fund Manager, ACE.
EG ACE will be opened to further investment until June 2020, targeting up to an additional $500m of equity commitments. 
The transaction was brokered on-market by Todd Schaffer of Knight Frank in conjunction with CBRE.  
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EG purchase 12 storey Perth office building for $79 million 

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A cafe/retail investment within the Merrindale Business Estate in Melbourne has been sold.
The property in Croydon South was marketed via a Private Sale By Closing Date campaign and sold prior to closing for $900,000 – representing a 4.68% yield.
It was sold by Jarrod Moran and Stan Dawidowski of CVA to a local investor.
The subject property comprises a building 142sqm is situated on an allotment of 818sqm.
It features a modern open plan dining area, service area with glass display cabinet, commercial kitchen, amenities, courtyard dining area, 12 onsite car spaces, perimeter fencing and security gates.
Leased to an established hospitality retailer trading as ‘Industrie Café’, the property returns a rental of $42,091.17 plus GST (on settlement) on a 7 year lease with 3 further 3 year options.
The property is easily accessible, with Dorset Road, Canterbury Road, Mount Dandenong Road and Eastlink via the Ringwood Bypass all within close proximity.
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Cafe in Melbourne's Merrindale Business Estate sold

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Australia 108, the Southern Hemisphere's tallest residential tower has now completed construction of its landmark Starburst's external facade, among two other landmark moments.. 
Protruding from levels 70 and 71 of the 100-level luxury residential tower, the golden Starburst is described as a feat of engineering intended as a sister to the Eureka tower.
Its construction by Multiplex has taken six months and it is the first cantilevering architectural feature of its nature achieved in Australia.
David Ng, CEO of developer World Class Global, said Australia 108 was rising rapidly and would reach its full height (topping out) early next year, with the building expected to be fully completed in mid 2020.
The other milestones that the skyscraper acheived recently are, the building's lift core reaching level 100 and the building's slab now exceeding the height of Eureka Tower.
Hundreds of residents have opted to move into the building as part of a staged handover where they have access to lower level apartments and completed amenities.
In the next few months, owners of the project’s premium Cloud Residences between levels 72 and 83 will begin moving into their apartments, which overlook most of Southbank’s existing towers.
Ahead of the building’s completion next year, a limited range of 3-bedroom Cloud Residences have also been released for sale. The exclusive completed 1 and 2-bedroom Sky Rise Residences are priced from $496,000 and are ready to move into.
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Australia's tallest residential tower, Australia 108 has completed its landmark Starburst facade

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EXPERT OBSERVATION
The Independent Planning Commission’s rejection of the Ritz Carlton hotel development in Pyrmont represents a comprehensive failure to deliver planning decisions which serve the broad public interest of the people of NSW.
“After the State Government actively encouraged this development for over four years, the IPC decision to reject this hotel development is a blow to tourism, a blow to jobs and a blow to the sensible development of our city”, Mr Forrest said.
“The IPC rejected submissions that this proposal was a logical extension of Darling Harbour down the peninsular. The IPC has clearly not read any of the GSC’s planning documents. The ICC precinct is suffering from the sparsity of hotel availability and this proposal was part of the solution.
The IPC decision rejects the proposal because (in part), it says, it is not consistent with the Strategic Planning in the area.
“This is simply wrong. The GSC’s district Plan for Eastern Sydney published in its final form in March 2018 sets the strategic framework. It states on page 46:
‘The District’s many great places also include local neighbourhoods in leafy suburbs like Bellevue Hill and Strathfield, inner-city, mixed-use places around Potts Point and Surry Hills, and the city high-rise areas of Pyrmont and the Sydney CBD. Each offers its own identity and sense of place where social cohesion and belonging is fostered.’
“The District Plan establishes the Strategic merit for high rise development in this location. The IPC seems to be rejecting the Greater Sydney Commission’s vision for an extension of the city’s CBD into Pyrmont. This calls into question the very future of the IPC.
“Hundreds of millions of dollars of development investment and tourism revenue will be lost to the city of Sydney as a result of this decision. Worse, the future of our city is being held to ransom, and the IPC has simply given up and folded to a handful of local activists.
“The decision represents a complete lack of balance. The decision over emphasises local community concerns. Those concerns were driven by selfish NIMBY activists. The failure of the IPC to reject these concerns and to find a pathway forward after years of State Government encouragement for the development of this project is a disgrace.
“The Planning Department’s Report was also very disappointing, and this must be fed into to the Productivity Commission’s review of both the role of the IPC as well as their review into Planning in NSW.
“Confidence in the NSW economy is slipping, and the planning system is the bottleneck. This decision must be a catalyst for serious review and change.
“By putting the interests of NIMBYs before the financial future of our State the IPC has behaved like Hunters Hill Council. The IPC has failed the test of leadership as has let the community of Sydney down. The decision and its reasoning are simply not worthy of the leading non-judicial planning authority in the State”, Mr Forrest said.
TOM FORREST is the Chief Executive Officer of Urban Taskforce Australia
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IPC rejection of the Ritz Carlton hotel for Pyrmont sells Sydney short: Tom Forrest

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EXPERT OBSERVER
Sydney is currently blanketed by smoke haze from severe bushfires that have burned through New South Wales.
Air pollution levels on Thursday reached <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-11-21/sydney-smoke-from-fires-unlikely-to-clear-today-authorities-warn/11723876" target="_blank">hazardous levels</a> for the second time in a week. The NSW Rural Fire Service has warned that haze could be around for days.
On Thursday, several locations in Sydney had air quality index levels above 1,000. Anything over 200 is considered hazardous. Health authorities in Sydney have asked children to stay indoors.
You might be surprised to hear that while air pollution is <a href="https://www.who.int/health-topics/air-pollution" target="_blank">bad for our health</a>, it can also be bad for the economy.
In our forthcoming study in the <a href="https://fbe.unimelb.edu.au/research/streams/decision-making-and-markets/market-impact-of-chinese-haze-events" target="_blank">Journal of Corporate Finance</a> we show that air pollution impairs forecasts by financial analysts. This has implications for our financial system, which relies on accurate and timely information.
Air pollution has been <a href="https://www.theguardian.com/environment/2016/may/12/air-pollution-rising-at-an-alarming-rate-in-worlds-cities" target="_blank">rising worldwide</a>. Currently, four in every five city dwellers are exposed to dangerous levels of outdoor pollution. We know that as well as harming physical health, it hurts <a href="https://www.aeaweb.org/articles?id=10.1257/aer.102.7.3652" target="_blank">worker productivity</a>.
We investigated whether it also harms the decision-making ability of financial analysts. This is important because their reports play a crucial role in the functioning of capital markets.
<a href="https://images.theconversation.com/files/302898/original/file-20191121-515-1iebhwu.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/302898/original/file-20191121-515-1iebhwu.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
Beijing smoke haze, November 2018. ROMAN PILIPEY/EPA
China is an ideal place to study it.
Over the past 20 years China has faced severe air pollution, including the infamous “<a href="https://qz.com/159105/2013-will-be-remembered-as-the-year-that-deadly-suffocating-smog-consumed-china/" target="_blank">airpocalypse</a>” which struck Bejing in 2013, when average air quality levels remained hazardous for much of the year.
Recently China has made headway in reducing air pollution, but it remains a significant issue.
China is not alone – emerging and developing nations such as Brazil, India and Iran face similar problems – so our study is useful for understanding the economic effects of pollution elsewhere.
We examined the pollution levels in different cities on the days Chinese companies announced their earnings.
<h2>The more hazy the location, the more hazy the thinking</h2>
Most Chinese companies are followed by analysts in a number of Chinese cities. On earnings days, some are experiencing haze and others are not.
We were able to examine more than 59,000 publicly available forecasts from more than 2,000 analysts. We used published phone numbers to identify their locations.
We found those that were exposed to haze produced less bold forecasts, less timely forecasts, and less accurate forecasts
Analysts exposed to pollution were
<ul>
<li>
4.8% less likely to differentiate their forecasts from those of other analysts
</li>
<li>
4% less likely to incorporate the new information from the announcements into their forecasts
</li>
<li>
14% less likely to revise their forecasts at all within two days the announcements.
</li>
</ul>
<h2>Hazy thinking matters</h2>
We are not sure why. We know that air pollution has negative effects on physical health and <a href="https://www.propertyobserver.com.au/https://www.ncbi.nlm.nih.gov/pubmed/25673816">mood</a> and we know that financial analysts are exposed to pollution not only when outside, but also at home and in the office, since filtering systems <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/02786820117903" target="_blank">cannot completely clean the air</a>.
Investors rely on analysts to provide information. Earnings announcements are key information events. Poor forecasts resulting from those events are an indirect negative effect of high levels of pollution.
Those indirect negative effects might be widespread, extending as far as manufacturing, schools and services industries. They add to the case for cleaning up air.
<a href="https://theconversation.com/profiles/naomi-soderstrom-892532" target="_blank">Naomi Soderstrom</a>, Professor of Accounting and Deputy Head of Department, <a href="http://theconversation.com/institutions/university-of-melbourne-722" target="_blank">University of Melbourne</a> and <a href="https://theconversation.com/profiles/chao-kevin-li-892606" target="_blank">Chao Kevin Li</a>, Lecturer School of Accounting, <a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/smoke-haze-hurts-financial-markets-as-well-as-the-environment-127511" target="_blank">original article</a>.
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Smoke haze hurts financial markets as well as the environment

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Nicolette van Wijngaarden, 45, the founder of the boutique estate agency Unique Estates, has been sentenced to more than three years in jail for trust fund account fraud.
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Van Wijngaarden was charged after she went to NSW Fair Trading who then calculated she misused $3.69 million between 2016 and early 2018.
Van Wijngaarden was sentenced to three years and six months jail by Judge John Pickering on Thursday, with a non-parole period of one year and nine months.
Van Wijngaarden – whose main offices where in Byron Bay, Sydney and Melbourne – told the court she made “the very stupid mistake” when taking money from the trust account out of desperation not to let anyone down.
Judge Pickering noted he wanted the real estate industry to know that those committing trust account offences would not escape jail time. 
Her amount was the biggest real estate fraud in New South Wales real estate history.
"There has to be conformity before the law and there has to be general deterrence," Judge Pickering said.
Her clients included Chris Hemsworth and Collette Dinnigan, who was among the victims.
Unique Estates was started in 2009.
Van Wijngaarden will be eligible for parole on August 20, 2021.
“I stupidly thought I could pay it back,” she told the court in September.
She faced up to 10 years in jail.
Thinking the cash flow issues were short-term and seasonal, she claimed any lavish expenses, including the cars, flowers and travel were tied to the business.
“I’m completely devastated that I’m sitting here today, horrified that people have been let down,” she said.
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Nicolette van Wijngaarden jailed for trust fund account fraud

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The Canberra retail market has continued to display stable sales and leasing activity throughout 2019 with early indications of market strengthening taking place, underpinned by the recent interest rate reduction by the Reserve Bank, low unemployment, vacancy levels below the ten year average and continued population growth, according to the latest retail report from Herron Todd White.
The property valuation firm found retail sale statistics issued in August by the ABS indicated a growth rate of 1.9 per cent (above the national average) in seasonally adjusted terms for the nation’s capital.
It should be noted that while many aspects of the retail market appear positive, a continued divergence between new and old offerings has led to an increased disparity in both demand and rental results.
Non-centrally located and dated stock, often in older local shopping precincts, has seen a spike in vacancies and a softening of rental expectations.
Increases to municipal and council rates continue to be a major concern in the Canberra property sector with these increases often outweighing CPI rental increases.
HTW valuers said, "the market has responded, with local agents indicating that more net leases and increases to recoverable outgoings are being negotiated."
"The outlook for the Canberra retail market is for slow to medium take-up levels to continue over the next 12 months, with a need for incentives to continue," they concluded.
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Canberra retail market appears positive: HTW Retail

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A 2018 study by Herron Todd White (commissioned by the Property Council of Australia) found that there was about 220,000 square metres of general retail space in the greater Darwin area.
They found that this figure includes properties varying from neighbourhood style centres of two to three shops through to regional retail centres such as Casuarina Square. Of this 220,000 square metres, about 68,000 square metres (or 30 per cent) has come on line in the past two to three years.
HTW valuers said, "unfortunately, this large increase in supply has come on line at a time when Darwin’s population is experiencing a significant decline, with the weaker economy seeing many Darwinites heading interstate in search of work."
"What we have seen has been a drift of businesses to these newer centres, attracted by strong tenant incentives and a desire to follow the ant trail of shoppers."
"As a result of this displacement, vacancies have sprung up, particularly in Darwin CBD and Palmerston CBD. It is difficult to see trading conditions improving in these locations until the population begins to increase," they added.
It is expected that there will be limited rental and capital growth opportunities in Darwin retail centres, especially secondary centres without a major anchor, for the next three to five years, HTW forecast.
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Darwin retail sector suffers from declining population: HTW Retail

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

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