<html><body>
<h1>
<a href="https://theconversation.com/profiles/saul-eslake-665" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.16px;">Saul Eslake</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a>
</h1>
Do higher profits necessarily lead to higher wages? The answer, as borne out by the data below, might surprise you. In fact, wages growth is more likely to arise from smart policy settings that directly boost economic and employment growth.
Australian wages growth is, as Reserve Bank governor Philip Lowe <a href="https://www.rba.gov.au/speeches/2017/sp-gov-2017-09-21">recently noted</a>, “the slowest since at least the mid-1960s”. Treasurer Scott Morrison recently <a href="https://sjm.ministers.treasury.gov.au/media-release/085-2017/" target="_blank">asserted</a> that a sustained increase in profitability is a prerequisite for a pick-up in wages growth.
But there is little data to support the idea that wages and profits are connected.
<img src="https://cdn.theconversation.com/files/188524/width754/file-20171003-3782-1ws0esq.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
There does not appear to be any “leading” relationship between growth in pre-tax company profits and growth in wages, even if the mining sector (which accounts for a good deal of the fluctuations in profit growth over the past dozen years) is excluded.
<img src="https://cdn.theconversation.com/files/188527/width754/file-20171003-3124-1ta5b97.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
Some relationship between profit margins (that is, profits as a proportion of sales revenue) and wages might have existed in the past. However, that appears to have broken down in the years since the peak of the commodities boom, in 2011-12, as you can see in the following chart.
Since then, aggregate profit margins have risen to levels not seen since the early 2000s, but wages growth has continued to slow.
<img src="https://cdn.theconversation.com/files/188529/width754/file-20171003-12163-1qrzjgd.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
Rather than being a precursor to faster growth in wages, the growth in Australian company profits in recent years appears to be part of a broader global pattern: the share of aggregate income accruing to capital is rising while that accruing to labour is falling.
<h2>In line with global trends</h2>
Researchers from the International Monetary Fund (IMF) have provided a plausible set of explanations for these developments in their <a href="https://www.imf.org/en/Publications/WEO/Issues/2017/09/19/%7E/media/Files/Publications/WEO/2017/October/pdf/analytical-chapters/c2.ashx" target="_blank">latest World Economic Outlook</a>. They contend that “macroeconomic factors such as labour market slack, inflation expectations and trend productivity growth can account for the bulk of the variation in nominal wage growth … in recent years”.
Echoing <a href="https://www.rba.gov.au/publications/smp/2017/feb/box-b-underemployment-and-labour-market-spare-capacity" target="_blank">a point frequently made by the Reserve Bank of Australia (RBA)</a>, the IMF researchers note: “True labour market slack may … be larger than suggested by headline unemployment rates.” This is because of the growth in the number of workers working fewer hours than they are willing and able to work.
<hr>
Read more: <a href="https://theconversation.com/explainer-how-wage-growth-contributes-to-the-economy-75625" target="_blank">Explainer: how wage growth contributes to the economy</a>
<hr>
The researchers find that even in economies where unemployment rates are now below their pre-GFC averages, “involuntary part-time employment … appears to be weighing on wages growth”, alongside “slower-moving drivers … such as automation, diminished medium-term growth expectations and the growing importance of the services sector”.
The IMF researchers conclude that, overall, “wage growth … may continue to remain subdued until involuntary part-time employment diminishes or trend productivity growth picks up”.
All of this suggests that policy measures that seek, in the first instance, to (further) lift corporate profits will not enhance the prospects of a pick-up in wages growth in Australia.
<h2>Preferential taxation not the answer</h2>
As I’ve argued <a href="https://theconversation.com/why-small-business-tax-cuts-arent-likely-to-boost-jobs-and-growth-72658" target="_blank">previously</a>, there’s absolutely no evidence that preferentially taxing small businesses will do anything to boost innovation, productivity, investment or employment. Hence, there’s no reason to think it will do anything to lift wages growth.
Nor is there any <a href="https://www.propertyobserver.com.au/https://economics.mit.edu/files/7666" target="_blank">compelling empirical evidence</a> to suggest that across-the-board tax cuts for larger companies will have any significant impact on employment and hence on wages.
Rather, an acceleration in wages growth is more likely to come from policies that directly boost economic and employment growth – such as increased spending on (well-chosen) infrastructure projects – and that boost productivity growth (including well-targeted education and training initiatives).
A more controversial proposition may be that measures designed to reverse, in part, the shifts in the shares of national income accruing to labour and capital over the past decade or so could also help accelerate wages growth.
<iframe style="border: none;" src="https://datawrapper.dwcdn.net/53kAt/5/" frameborder="0" width="100%" height="400"></iframe>
Partly because real wages have grown more slowly than labour productivity since the turn of the century (as you can see in the previous chart), the “profits share” of Australian national income is well above its long-run average. The “wages share” is close to a record low.
<img src="https://cdn.theconversation.com/files/188692/width754/file-20171003-31723-6uw84z.png" alt="">The Conversation/Author provided, <a class="license" href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
<h2>Historical precedent</h2>
In some respects, the present situation is the obverse of the “<a href="https://www.rba.gov.au/publications/rdp/1988/pdf/rdp8806.pdf" target="_blank">real wage overhang</a>” that emerged in the second half of the 1970s, whereby real wages surged much faster than productivity.
One of the main purposes of the Hawke government’s <a href="https://theconversation.com/australian-politics-explainer-the-prices-and-incomes-accord-75622" target="_blank">Prices and Incomes Accord</a> was to secure the ACTU’s acceptance that wages would grow more slowly than productivity (and fall in real terms) to eliminate this “overhang” and reduce unemployment.
<hr>
Read more: <a href="https://theconversation.com/australian-politics-explainer-the-prices-and-incomes-accord-75622" target="_blank">Australian politics explainer: the Prices and Incomes Accord</a>
<hr>
Hence, it could be argued that what is required now is a period during which real wages grow faster than productivity to eliminate what could be termed a “real wage underhang”. That would be difficult to achieve via an accord-type process given the changes in how the labour market works since the 1980s.
And it would be important to ensure that real wages did not grow at a pace relative to productivity growth that led to higher unemployment.
<img src="https://counter.theconversation.com/content/83819/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">The government could consider using its submissions to the Fair Work Commission’s annual determinations of the minimum wage, and its approach to wage negotiations with its own employees, as a way of nudging wages growth upwards.
<a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">Saul Eslake</a>, Vice-Chancellor’s Fellow, <a href="https://theconversation.com/institutions/university-of-tasmania-888" target="_blank">University of Tasmania</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/is-faster-profit-growth-essential-for-a-pick-up-in-wages-growth-83819" target="_blank">original article</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Is faster profit growth essential before a pickup in wages growth? Saul Eslake

<html><body>
Mortgagees are offering a one bedroom Kensington apartment in Melbourne's inner city fringe.
It goes to October 14 auction.
<a href="https://www.realestate.com.au/property-apartment-vic-kensington-126422370" target="_blank">The Racehorse Road listing</a> is on the top floor of the Newmarket with basement parking.
Another top floor apartment, but two bedrooms, fetched $630,000 at auction earlier this year.
The 54 sqm apartment complex is perfect for either an owner occupier or astute investor, the Barry Plan listing agent, Eugene Louey suggests. 
It was listed as a $350 a week rental earlier this year.
</body></html>

Racehorse Road, Kensington mortgagee offering

<html><body>
Professor, author, high-profile feminist and NRL adviser Catharine Lumby and her lawyer husband Duncan Fine are selling their Vaucluse home.
The longstanding social commentator paid $3.74 million for the <a href="https://www.realestate.com.au/property-house-nsw-vaucluse-126565010" target="_blank">Hillside Avenue home</a> in 2014.
Set on 580 sqm, the solid brick 1940s home with views over Rose Bay has four bedrooms, two bathrooms and a swimming pool.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/06/Lumby2.jpg" alt="">
Belle Property Double Bay agent Albert Sassoon has scheduled an October 30 auction.
Lumby has been advising the NRL on cultural change and education programs for players since 2004.
Lumby had entered academia in 2000 and joined Macquarie University in 2013 having previously been the foundation chair of the media and communications depart at Sydney University.
She sits on the Council of the National Museum of Australia.
Vaucluse has just two sales this year in excess of $10 million, the priciest a Clairvaux Road home that fetched $15 million off market.
This article first appeared in the Sunday Telegraph.
 
 
 
</body></html>

Professor and NRL adviser Catherine Lumby lists Vaucluse home

<html><body>
A near-new home on the seaside strip at Middle Park, designed by Bojan Simic Architecture to resemble a ship, has been listed for sale.
The luxury residence at <a href="https://www.realestate.com.au/property-house-vic-middle+park-126396874" target="_blank">203 Beaconsfield Parade</a> has been listed by Chisholm &amp; Gamon, Elwood, agent Torsten Kasper.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/06/Middle1.jpg" alt="">
After its three year construction project, it was finished in February and now listed as the owners, the Moreno family are spending most of their time overseas.
Offered are due October 9, with a price guide of $6.9 million to $7.5 million for the three bedroom home with 150sq m of terraces and 370sq m of internal space.
This article was first published in The Weekend Australian property section.
</body></html>

Middle Park home designed like a ship listed for sale

<html><body>
<div class="cq-article-content-paras section">
Apartment settlements to Chinese off-the-plan buyers are holding up in the Melbourne CBD, according to the construction financier MaxCap.
The off-the-plan sales in the north-western Elizabeth Street precinct showed little sign of settlement difficulties, said MaxCap chief investment officer Brae Sokolski.
He cited figures for four projects which were almost fully pre-sold.
He noted 65 per cent of apartments settled within the first two weeks of settlements, with the remainder of stock settling over four to six weeks with minimal evidence of default.
At least half of the buyers were foreigners who required Foreign Investment Review Board approval to buy.
</div>
<div class="cq-article-content-paras section">
"In the most trying environment for settlements, they are still proving incredibly resilient," Sokolski told Fairfax Media.
"The buyers from offshore are finding a way to ensure that they settle and they have investment in Australian real estate."
</div>
<div class="related-quotes section">He suggested these buyers were the ones with notionally the highest possible risk.</div>
<div class="related-quotes section"> </div>
<div class="related-quotes section">"They bought when the market was very different in terms of their ability to access equity from China or debt from Australia.</div>
<div class="related-quotes section"> </div>
<div class="related-quotes section">"The fact that they are settling when they were caught unawares augers very well for the future of the industry and the settlements moving forward."</div>
<div class="cq-article-content-paras section">
The four projects were Golden Age's Victoria One (160 stage-one units out of a planned total 643 apartments), <a href="https://www.hengyi.com.au/category/news/light-house/" target="_blank">Hengyi's Light House</a> (627 apartments), ICD Property's EQ Tower (633 apartments) and Mammoth Empire's Empire Melbourne (487 apartments).
At Light House, 98 per cent of all apartments had settled successfully within 60 days of calling for settlements, Sokolski said. They took place in July this year.
</div>
<div class="cq-article-content-media section">Sokolski said a random sample review of title searches showed that about 58 per cent of the apartments purchased across the four projects were funded by cash, while 33 per cent was through major Australian banks or lenders, and a further 9 per cent through alternate or overseas lenders.</div>
</body></html>

Light House signals Chinese buyers showing few signs of Melbourne apartment defaults

<html><body>
<div class="cq-article-content-paras section">BPM development boss Jonathan Hallinan has revealed only two settlements failed to proceed in two projects in the past two months, in the supposed much-troubled Melbourne and Brisbane apartment markets.</div>
<div class="cq-article-content-paras section">
They were the 40-unit Black Fold project in Brisbane's West End and the 30-unit Light Edge project in Melbourne.
"We've settled 70 in the last two months," Hallinan told Fairfax Media.
"Over two projects, we've had two fall over. Those two were very quickly resold."
Black Fold was a collaboration between BPM, Noel Robinson Architects and Hecker Guthrie with one and two bedroom apartments.
The <a href="https://www.facebook.com/bpmdevelopment/photos/a.1599677896987160.1073741834.1586943561593927/1599677926987157/?type=3&amp;theater" target="_blank">27-29 Bank Street project</a> was a sellout after its 2015 marketing.
Black Fold's rooftop terrace is complete with entertaining arena and uninterrupted views across the city.
Black Fold is situated 1.5 kilometres south west of the CBD.
BMP property management's division is offering rentals including a 2 bedroom, 2 bathroom apartment with 1 car space from $470 per week to $575 a week.
They are offering four weeks rental for free.
Hello Realty has a 2 bedroom, 1 bathroom apartment available at $430 a week.
The 204 apartment, currently rented out at $400 per week with the lease ending June, 2018, has been listed at $445,000.
It sold off the plan at $417,500 in 2015, the cheapest among the block which saw sales up to $575,000.
BPM’s​ project, Light Edge, 30 apartments over six levels came with a design by DKO Architects, on Elizabeth Street in Richmond. 
It sparked immediate buyer interest with 15 sold or reserved within two weeks of its sales release in late 2015.
They sold between $417,500 and $775,000.
</div>
</body></html>

BPM apartment settlements proceed with just two defaults

<html><body>
Financial Review Rich List member Geoff Harris has invested a further $1.8 million in online live auction app Gavl, which is developing technology it believes will lead to real-time bidding at auctions.
Australian-owned, Gavl has the fastest live streaming technology in the world.
Harris first invested in Gavl late last year, run by former Hawthorn AFL footballer Joel Smith. The pair met when Harris was a Hawthorn director between 2004 and 2013.
Gavl secured a $2.5 million investment in June 2016 from Harris Capital, which enabled Gavl to live stream its first auction and release its Apple iOS and Android apps.
The current Gavl app allows property buyers and browsers to search a map, select a property that is using the technology and then view its auction either live or later. 
At the auction itself, a tripod is set up with a smartphone to relay the proceedings via the app online.
Gavl is now developing technology that it claims will eventually add digital contract signing, deposit transfer facilitation between buyer and seller via the agent and 360-degree camera and Artificial Intelligence integration.
"We are currently piloting technology that allows a consumer to not only watch, but bid and ultimately buy at auction, and complete the transaction without having to be physically on site," Mr Smith told The Australian Financial Review.
He hopes to have the technology ready next year.
It has the only app dedicated to the real estate industry with a patent-pending technology that can broadcast live events with a one-second latency – this includes Facebook Live, which is commonly used by the industry. 
Joel says when they first tested Facebook Live for auction live streaming, "we were measuring a 5-20 second latency."
"In an auction environment, this delay could be the difference between a property selling for $950,000 and $1.1 million.
"We spent 15 months developing the technology to live stream with a one-second latency as well as address another challenge for agents: network reliability with live streaming, and this technology is key for us in launching live auction bidding.” 
Gavl claims that its technology has now been used by 200 Australian real estate agencies to broadcast 3500 auctions.
The $1.8 million is being invested via the Harris Capital investment office, managed by Mr Harris's son, entrepreneur and philanthropist Brad Harris. 
Mr Harris is still a major shareholder in Flight Centre.
Joel Smith founded Gavl with Leith Donaldson and Michael Artup, launched with a $300,000 bootstrap from Joel and his father-in-law.
 
</body></html>

Geoff Harris has invested a further $1.8 million in online live auction app Gavl

<html><body>
A four bedroom O’Connor house has sold for $1.305 million making it Canberra’s most expensive long weekend auction sale.
Located at <a href="https://www.realestate.com.au/property-house-act-o'connor-126371354" target="_blank">12 Lilley Street</a>, the 842 sqm property has potential for renovation and dual occupancy development.
It features two street frontages with a north facing informal living area.
There is also a separate lounge with fireplace along with a new kitchen while the master bedroom has its own ensuite.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/01/12%20Lilley%20Street-2.jpg" alt="">
The property was offered through Capital agent David Whittem.
</body></html>

Four bedroom O'Connor house sold for $1.305 million

<html><body>
Lawyer and entrepreneur, Peter Maatouk has launched Raine &amp; Horne Narellan in the heart of Sydney’s Macarthur region.
Maatouk, who is the principal of Maatouks Law Group that has offices in Narellan, Liverpool, and Penrith, has been delivering general practice and property law services since 1993.
The firm launched a mortgaging broking business in 2000 and Maatouks Realty in 2007.
“As we were already delivering conveyancing and mortgage broking services, opening a real estate business in 2007 made sense.
“Our conveyancing and broking experience gave us the confidence that we could list and sell real estate,” said Mr Maatouk.
“We are very familiar with property law, conveyancing and how the lenders work.
“This means that if someone is buying a house, they are never operating in the dark if they choose to work with Raine &amp; Horne Narellan.”
A father of seven, Mr Maatouk, who lived in Narellan for 13 years, recently moved back to the suburb after a short stint in Merrylands.
His offspring are attending local schools, and the soccer fanatic plans to support some of Narellan’s community and sporting associations.
“We want to continue to serve the Narellan community. We live, work and play locally, and that is a major point of difference for Raine &amp; Horne Narellan.”
The combination of its flat executive structure with its deep brand awareness convinced Mr Maatouk to join Raine &amp; Horne.
“I wanted to take my property business to the next level, and therefore I have linked with a real estate superpower like Raine &amp; Horne,” said Mr Maatouk.
“Raine &amp; Horne is a fantastic Australian company that supports its franchisees and I believe it will help me grow my real estate business in the decades ahead.”
"Other real estate groups approached me, however I was able to meet with Angus Raine, Executive Chairman and this personal contact helped sway me to Raine &amp; Horne," Mr Maatouk said.
“Angus has treated me like family since day one.
"That is the kind of company I want to deal with.”
Mr Maatouk said he would have no problems combining his legal and real estate interests. "I have the staff and systems in place to manage all the businesses,” he said.
Launching a real estate office Narellan is a strategic imperative for Raine &amp; Horne, according to Mr Raine.
“Narellan is crucial to the growth of south western Sydney as a residential market behemoth, and Peter and his team at Raine &amp; Horne Narellan will ensure we deliver our unique levels of real estate services and customer care,” said Mr Raine.
"In Narellan it is still possible to buy affordable, brand-new homes for $750,000 on a decent sized block of land, which is great news for first home buyers.
"The fresh air, excellent community spirit and the wider open spaces is a major attraction for first home buyers and even upgraders from other parts of Sydney moving there to buy bigger homes."
There are also infrastructure improvements afoot too, with a proposal to extend the South West Rail Link to Narellan in the coming years as part of the Badgerys Creek extension.
Raine &amp; Horne Narellan is located in the Narellan Town Centre, 326 Camden Valley Way, Narellan.
</body></html>

Lawyer launches Raine & Horne Narellan

<html><body>
Kingston has notched up the biggest increase in unit sales stock in the ACT, according to Real Estate Investar’s recent report.
The property investment firm says that Kingston’s unit stock has grown by 37% over a year ago.
This is followed by Greenway with 16% and Braddon with 8%.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="71">
Suburb
</td>
<td valign="top" width="71">
Postcode
</td>
<td valign="top" width="71">
Current median price
</td>
<td valign="top" width="71">
Current sales stock
</td>
<td valign="top" width="71">
Sales stock 1 year ago
</td>
<td valign="top" width="71">
Stock growth
</td>
</tr>
<tr>
<td valign="top" width="71">
Kingston
</td>
<td valign="top" width="71">
2604
</td>
<td valign="top" width="71">
$485,000
</td>
<td valign="top" width="71">
99
</td>
<td valign="top" width="71">
72
</td>
<td valign="top" width="71">
37%
</td>
</tr>
<tr>
<td valign="top" width="71">
Greenway
</td>
<td valign="top" width="71">
2900
</td>
<td valign="top" width="71">
$369,000
</td>
<td valign="top" width="71">
42
</td>
<td valign="top" width="71">
36
</td>
<td valign="top" width="71">
16%
</td>
</tr>
<tr>
<td valign="top" width="71">
Braddon
</td>
<td valign="top" width="71">
2612
</td>
<td valign="top" width="71">
$430,000
</td>
<td valign="top" width="71">
67
</td>
<td valign="top" width="71">
62
</td>
<td valign="top" width="71">
8%
</td>
</tr>
<tr>
<td valign="top" width="71">
Watson
</td>
<td valign="top" width="71">
2602
</td>
<td valign="top" width="71">
$332,500
</td>
<td valign="top" width="71">
20
</td>
<td valign="top" width="71">
20
</td>
<td valign="top" width="71">
0%
</td>
</tr>
<tr>
<td valign="top" width="71">
Turner
</td>
<td valign="top" width="71">
2612
</td>
<td valign="top" width="71">
$480,000
</td>
<td valign="top" width="71">
35
</td>
<td valign="top" width="71">
36
</td>
<td valign="top" width="71">
-2%
</td>
</tr>
</tbody></table>
A two bedroom unit at <a href="https://www.realestate.com.au/property-apartment-act-kingston-125555066" target="_blank">23/10-12 Howitt Street</a>, Kingston (above) has recently sold for $465,000. It had listed for $478,000. The selling agent Moira Maloney of Maloney's.
A one bedroom unit at <a href="https://www.realestate.com.au/property-apartment-act-kingston-121429470" target="_blank">11 Kerridge Street</a>, Kingston (below) has been listed for $489,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/21/11%20Kerridge%20Street.jpg" alt="">
</body></html>

Kingston unit stock level rises by 37%: Investar

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</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'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 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 files for trio of apartment towers in Campsie town centre</a>

Arada 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 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.

Staff reporter

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News