Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

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First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

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Mortgage brokerage N1 Loans is all set to launch a own real estate arm as part of its efforts to become a “one-stop-shop” financial services company.
N1 Realty will officially start trading from July 1 in Sydney.
The group is negotiating a lease for a location in Chatswood in Sydney’s North Shore, Australian Broker reported.
The article cited N1 Loans CEO Ren Wong as saying demand from its customers for investment properties drove the decision to move into the real estate business. 
“We have over 2,000 clients in our Salesforce CRM, and given our strong pre-approvals pipeline, it's time for us to diversify,” Wong said. 
The realty arm would be headed by an industry veteran, is all Wong would say.
“We look forward to developing N1 further as a full service financial services company, making investment easier for our growing customer base,” Wong said.
The group, which started trading on the ASX earlier this year, claims it launched Australia’s first Chinese language mortgage comparison website in April 2015, a DIY property renting app connecting landlords with potential tenants in December 2015, and an English language online mortgage calculator and comparison website this month.
Earlier this week, N1 entered into a deal with insurance provider Ensurance to supply white label insurance products to its home loan clients.
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prateek24-ezbwHMbNAk

Brokerage N1 Loans diversifies into real estate business

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A long-term plan to cut the company tax rate from 30 percent to 25 percent is the centrepiece of the Coalition’s economic plan for jobs and growth.
The Coalition maintains the change will boost GDP by more than 1 percent in the long-term, at a budgetary cost of $48.2 billion over the next 10 years.
But the very Treasury research papers relied on by the Coalition tell a more modest story than the headlines. Using these papers, we show that the net benefit to Australians in the real world will be only about half of the headline benefit, and it will be a long time before we are any better off at all.
<h2>The short story</h2>
The Government has made two claims about the economic impacts of its plan to cut the company tax rate.
On Budget night Treasurer Scott Morrison said that the tax cuts would:
“… mean higher living standards for Australians and an expected permanent increase in the size of the economy of just over one percent in the long term.”
Later last week, Prime Minister Malcolm Turnbull said:
“The Treasury estimated last year…that for every dollar of company tax cut, there was four dollars of additional value created in the overall economy.”
<h2>Sound in theory, but there’s a back story</h2>
In theory, cutting the company tax rate boosts the economy in the long term. All taxes distort choices, and thereby drag on economic activity. Taxes on capital often have especially large economic costs because they discourage investment, which is mobile across borders. By some estimates, roughly half of the economic costs of Australian company tax ultimately fall on workers, as lower company profitability leads to lower investment, and therefore lower wages and higher unemployment.
But while the theoretical argument for company tax cuts is straightforward, the real story is more complicated.
<h2>The twist: a tax cut for foreign investors</h2>
The twist in the tale comes from Australia’s system of dividend imputation, or franking credits. The effect of this system is to make the company tax rate for Australian resident shareholders effectively close to zero. In nearly every other country, company profits are taxed twice: companies pay tax, and then individuals also pay income tax on the dividends, albeit often at a discount to full rates of personal income tax.
But in Australia, the shares of Australian residents in company profits are effectively only taxed once. Investors get franking credits for whatever tax a company has paid, and these credits reduce their personal income tax. Consequently, for Australian investors, the company tax rate doesn’t matter much: they effectively pay tax on corporate profits at their personal rate of income tax.
As a result, although Australia has a relatively high headline corporate tax rate compared to our peers, in practice the comparable tax rate is lower – at least for local investors. As a result, many of the international studies about the impact of cutting corporate tax rates are not readily applicable to Australia.
Local shareholders do get one small benefit from cutting corporate tax rates. If companies pay less tax, then they have more to reinvest, so long as the profits are not paid out to shareholders. Yet in practice, most profits are paid out. Therefore a company tax cut will generate little change in domestic investment.
By contrast, foreign investors do not benefit from franking credits. They pay tax on corporate profits twice: first at the company tax rate, and then as income tax on the dividends. This means that a cut to the company tax rate provides big benefits to them.
This week The Australia Institute pointed out that foreign investors from the United States and other countries that have tax treaties with Australia may not benefit from the company tax cut, because their home governments will collect the gains from any cut to Australia company tax as additional company tax. Yet this would only occur when foreign firms repatriate profits earned in Australia to the home country.
The big reductions in net tax revenue – and therefore the large benefits to companies – are expected when the corporate tax rate is cut from 30% to 25% between 2022 and 2027 for larger companies, including the bulk of businesses that are foreign-owned.
The headline from the Treasury modelling for the 2016-17 Budget is that this cut will ultimately increase GDP by up to 1.2% meaning larger foreign companies are attracted to invest more in Australia. The finding is based on work contained in a Treasury research paper that modelled the long-term impact of a company tax cut.
<h2>Activity is not income</h2>
However, it is a mistake to assume that all the increase in economic activity will make Australians better off. We often use Gross Domestic Product – the sum of all economic activity – as a short-hand measure for prosperity. But when the benefits disproportionately flow to non-residents, GDP can be misleading. It’s much better to look at Gross National Income (GNI), which measures the increase in the resources available to resident Australians.
Treasury expects that cutting corporate tax rates to 25% will only increase the incomes of Australians – GNI – by 0.8%. In other words, about a third of the increase in GDP flows out of the country to foreigners as they pay less tax in Australia. And because most of the additional economic activity is financed by foreigners, the profits on much of the additional activity will also tend to flow out of Australia.
<h2>You don’t get something for nothing</h2>
Yet even this increase in GNI of 0.8% is not the best estimate of the improvement in living standards Australians can expect from the Government’s company tax plan. If company taxes are lower, other taxes have to be higher, all other things being equal. In the modelling discussed so far, Treasury first assumes that these revenues can be collected by a fantasy tax that imposes no costs on the economy.
But that’s not what happens in the real world. So the Treasury research paper also models the scenario in which personal income taxes rise to offset the reduced company tax revenue. On this more realistic assumption, Treasury estimates that GNI will increase by just 0.6% in the long term, or roughly $10 billion a year in today’s dollars.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/122984/width754/image-20160518-13455-yxfw6e.jpg" target="_blank">Click to enlarge</a>
<h2><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/122984/width754/image-20160518-13455-yxfw6e.jpg" alt=""></h2>
<h2>Other wrinkles in the story</h2>
Even this more modest Treasury figure may well over-estimate the long-term boost to GNI. In the real world, progressive income taxes impose higher costs than the hike to a hypothetical flat-rate personal income tax that Treasury modelled. Companies may also not increase investment as much as Treasury expects, and those firms that are part of oligopolies in Australia may not increase wages by as much as Treasury assumes.
While these are reasons to expect that the Treasury modelling overestimates the economic benefits of a company tax cut, they are offset by some more conservative assumptions. Treasury believes that tax cuts modestly change how much firms shift profits overseas; it may overstate how much tax cuts flow into additional profits rather than higher wages in those industries that it does recognise as oligopolies; and it may discount the benefits of investors making less distorted choices between debt and equity funding.
<h2>The verdict on the first claim</h2>
The bottom line is that, on Treasury’s own modelling, a corporate tax cut will increase Australian incomes in the long term by up to 0.6%. The Treasury research paper doesn’t commit itself to a timeframe, but it cites other work that expects the economic benefits of company tax cuts to take 20 years to bear fruit, with half the benefit in 10 years. Given that the important (and expensive) part of the corporate tax cuts only starts to take effect from 2022, Australia will be waiting 25 years for a 0.6% increase in incomes.
This economic benefit needs to be seen in context. If Australian per capita GDP and GNI increase at 1.5% a year (as the budget papers routinely assume), then over 25 years, incomes will rise by 45.1%. Corporate tax cuts mean that instead, incomes will rise by 45.7% – or perhaps a bit less. It may still be worth doing, but it’s not a plot twist that dramatically changes Australia’s story.
Others claim that in the past, company tax cuts have had no measurable effect on the economy. This is disputed – there may well be a link between corporate tax cuts and economic growth. But it’s inevitably hard to see in practice because on Treasury’s own modelling the economic effect of company tax cuts is small relative to other changes.
<h2>Not four-to-one, more like dollar for dollar</h2>
This brings us to the Government’s second claim. Late last week, Mr. Turnbull said that each dollar in company tax revenue cut would deliver an extra four dollars in GDP.
His claim appears to be drawn from an earlier 2015 Treasury research paper that modelled the economic impact of major Australian taxes, including company tax. The more <a href="https://www.treasury.gov.au/PublicationsAndMedia/Publications/2016/working-paper-2016-02">recent</a> Treasury working paper, released in Budget week, implies a slightly larger $4.30 increase to GDP from each $1 in revenue cut.
But again this misses a big part of the story.
First, this claim is about GDP, and therefore includes the disproportionate increase in the income of foreigners. Our analysis of the Treasury modelling shows that the increase to Australian incomes, or GNI, is only $2.80 per dollar of revenue lost from a corporate tax cut.
Second, when corporate tax is replaced by a still hypothetical but marginally more realistic flat rate income tax – rather than a complete fantasy tax that has no impact on the economy – the increase to Australian incomes is less again: only $1.80 per dollar of revenue lost.
Third, the Prime Minister has framed the boost to the economy in terms of the long-term increase to GDP per dollar of company tax cut. Treasury calculates the revenue “dollar” lost after considering the additional tax revenue that the government hopes to collect from all taxes in twenty years time as incomes rise because of greater investment.
<a href="https://www.theaustralian.com.au/federal-election-2016/federal-election-2016-pm-bolstered-by-160bn-reform-promise/news-story/e5fe769c97a196959b6e34e14bcc273d?nk=21bd5293c6c9bf91e73e578611f79538-1463363505&amp;login=1">Many people</a> would interpret the Prime Minister’s statement to compare the ultimate benefit per dollar of tax revenue given up in the shorter term. On this basis, the increase to Australian incomes in the long term is only $1.20 for every dollar given up in the short term as a result of corporate tax cuts.
This story ends the same way. Corporate tax cuts may be worth doing, but the outcome is unlikely to set pulses racing.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/122985/width754/image-20160518-13481-1ugr3e5.jpg" target="_blank">Click to enlarge</a>
<h2><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/122985/width754/image-20160518-13481-1ugr3e5.jpg" alt=""></h2>
<h2>The journey matters</h2>
So far, as the Treasury research paper does, we’ve focused on the long-term economic boost from a company tax cut once the economy has fully adjusted. But the journey to get there also matters.
For a decade, a cut to corporate taxes will reduce national income. Foreigners will pay less tax on the profits from their existing investments in Australia, reducing Australian incomes. Foreigners own about 20% of all capital in the economy, so it’s a big windfall gain for them. We estimate that when a 5 percentage point tax cut for big business is first implemented, national incomes will be reduced by about 0.5%, as a result of the immediate loss in company tax revenues formerly paid by foreign investors.
The benefits to Australians from a corporate tax cut only accumulate slowly as foreigners make additional investments. Treasury cites a paper that estimates that the benefits of corporate tax cuts take 20 years to flow through. Assuming that these benefits increase at a constant rate, Australian income will only be larger than otherwise after about 10 years.
Of course, the upfront costs of a company tax cut over the first decade must be offset against the long-term gains. On our estimates, the loss of income incurred over the first decade will only be offset by higher incomes after about 19 years. If Australians want the modest economic benefits of a corporate tax cut, they will be waiting a long time.
<h2>The moral of the story</h2>
Company tax cuts are not a knight in shining armour to save the Australian economy. On the basis of the modelling that the government uses to support its case, corporate tax cuts can make a modest contribution, and then over the very long term. That story won’t sell as many copies. Truth, on this occasion, is duller than fiction.
John Daley<a href="https://theconversation.com/profiles/john-daley-1870" rel="author" style="line-height: 1.3em;"> </a>is chief executive officer, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/john-daley-1870" target="_blank">here</a>.
Brendan Coates is fellow, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/brendan-coates-154644" target="_blank">here</a>.
Both are authors for The Conversation
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jchancellor-FAypfDUnLy

The full story on company tax cuts and your hip pocket

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The number of auctions due to be held across the capital city markets this week will remain relatively steady, with CoreLogic currently tracking 1,758 auctions, down from 1,876 last week. 
In Australia’s largest auction market of Melbourne, 778 auctions are scheduled this week, following a higher 871 last week, while in the second largest auction market of Sydney, the number of auctions being held this week (669) is higher relative to last week (647).
Last year, 2,599 auctions were held over the comparable week, which is substantially higher than the activity CoreLogic is tracking this week. This is reflective of what has been seen across the auction market so far this year.  Over the 2016 calendar year to date, 29,426 capital city auctions have been held, compared to 32,616 over the same period last year.
Capital City Auctions this week:
<ul>
<li>Sydney: 669</li>
<li>Melbourne: 778</li>
<li>Brisbane: 117</li>
<li>Adelaide: 84</li>
<li>Perth: 37</li>
<li>Canberra: 65</li>
</ul>
This week, Mosman in Sydney is the busiest individual suburb for auctions, with CoreLogic tracking 16 auctions so far this week. Following Mosman are three Melbourne suburbs, Glen Waverley and Richmond, with 13 auctions scheduled and Thomastown with 12 auctions.
Summary of last week’s results:
<a href="/images/2016/05/20/20160519-capital-city-table.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/20/20160519-capital-city-table.png" alt="">
Final results show that clearance rates strengthened last week, up from 67.7 per cent the previous week to 69.5 per cent, bringing the combined capital city clearance rate back in line with results seen towards the end of last month. The latest result marks the seventh consecutive week where the capital city clearance rate was under the 70 per cent mark, however this isn’t the case for Melbourne (71.3 per cent) and Sydney (76.2 per cent), where clearance rates were above 70 per cent for the sixth week in a row for Melbourne and the fourth week in a row for Sydney.
<a href="/images/2016/05/20/20160519-capital-city.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/20/20160519-capital-city.png" alt="">
Last week, in each of the smaller capital city markets, clearance rates were up on a week-on-week basis.
Looking at some of the key regional auction markets, clearance rates were strongest in Wollongong (73.9 per cent) and Geelong (80.8 per cent) last week, however the number of auctions held in both regions was lower than over the previous week. In the two Queensland lifestyle markets of the Gold Coast and Sunshine Coast, less than half of all reported auctions cleared last week.
<a href="/images/2016/05/20/20160519-sub-regions.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/20/20160519-sub-regions.png" alt="">
 
<div class="sharedaddy sd-sharing-enabled"> </div>
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smiller-vwPjRHTkST

Weekend auction numbers steady: CoreLogic RP Data's Shana Miller

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The Bondi house long embroiled in a battle over its unslightly rubbish hoarding was pulled from its scheduled auction last night.
It wasn't that the Bobolas family came up with the funds to repay Waverley Council, but rather some sheriff's paperwork that wasn't quite right.
It was expected to fetch $2 million plus purely for the 553 sqm plot.
Local residents were unimpressed on the mid-afternoon news that the postponed auction means more weeks or months of stinking stacks of rubbish.
Raine &amp; Horne agent Ric Serrao said the postponement was advised when the sheriff's lawyers checked all the accompanying legal paperwork.
The hoarders has been a 26 year saga between the family and the Waverley Council.
The Bobolas family managed to stop the early 2015 sale when it was listed in February by stumping up $180,000 for cleaning and legal bills.
But Waverley Council released a more recent statement suggesting the family now owes a further $160,000 with legal costs still accruing.
Waverley Council have lodged four local curt writs on the title, the most recent being for over $43,000 court judgement in April.
More than $350,000 of Waverley ratepayers money has been spent trying to control the tonnes of rubbish.
The home has been in the Bobolas family name since they paid $15,000 in 1973.
The new owners when it is sold will have the responsibility of disposing of the rubbish left behind.
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j.ballantyne1990-6AQqhLzZaK

Bondi hoarder home pulled from auction

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Macquarie Securities, in a note to clients, has lowered its cash rate expectation to 1 percent, and its nominal 10-year bond yield forecast to below 2 percent.
Macquarie also downgraded its “year-end target on the ASX200 from 5900 to 5700” on the back of disappointing earnings expectations for 2016.
It believes the local currency will round off the year at around US67c.
Macquarie Group analysts believe the Reserve Bank will be forced to cut the cash rate three more times before the current easing cycle ends.
The group revealed its new outlook in a note yesterday saying its former risk case for a record low of 1 percent had now become its “base case” owing to more extreme inflation weakness than expected.
“We think that the RBA will have to cut the cash rate further, to at least 1 per cent, and have further delayed the timing of expected policy normalisation,” the note read.
“With little to differentiate Australia from other advanced economies, the risk lies with a slow and persistent grind to even lower rates.”
The group foresees just one more rate cut this year, likely in August, but expects a further two in 2017 in May and August.
A similar call came from JPMorgan last week, with its 1 percent forecast at the low end of the range among all other analysts.
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Macquarie sees interest rates at below 1 percent in 2017

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GUEST OBSERVER
The introduction of new legislative changes on property sales over $2 million will create a new compliance burden and could delay property settlements.
On the 1st of July 2016 the new legislation will come into effect under The Tax and Superannuation Laws Amendment Bill 2015. It introduces a new 10 per cent withholding obligation on the purchasers of properties over $2 million where the vendor is a foreign resident for tax purposes. Sellers are also now required to obtain a clearance certificate to prove they are an Australian resident for tax purposes.
According to data from APM Research and the Australian Bureau of Statistics in the 2016 FYI (up to 31 April) there were 12,072 house and apartment sales in Australia over $2 million.
The legislative changes will put Australian and foreign residents on a level playing field, but will have their challenges. The tax compliance burden for resident taxpayers will significantly increase and conveyancers will need to ensure their clients are abiding by the new laws to limit property settlement delays.
The Federal government is expected to significantly benefit from the new changes as there should be less tax revenue leakage.
From a buyer’s perspective they now have an obligation to withhold 10 percent of the property price to ensure the purchaser is compliant with the new regulations, otherwise they could be liable to pay a penalty which is up to the full 10 percent of the purchase price plus interest.
From a seller’s perspective, they could have less funds available which might otherwise have been available to discharge the mortgage on the property and/or fund a new property purchase. They could end up with only 90 percent of the proceeds on settlement unless they are able to obtain a clearance certificate from the tax office. If there are data irregularities, delays of between 14 to 28 days are expected to obtain a clearance certificate.
The legislative changes were introduced to reduce difficulties that can be associated with collecting tax on gains resulting from the sale of property assets from foreign resident taxpayers. Some of these tax payers have a limited connection to the Australian tax system and may be in a position to transfer proceeds offshore prior to compliance action being taken. Voluntary compliance by foreign residents in this regard is said to be extremely low.
The ATO has just released forms for the following: clearance certificate application for Australian residents; variation application for foreign residents and other parties; purchaser payment notification.
Manda Trautwein is director at William Buck, national accounting and advisory practice and can be contacted <a href="https://www.williambuck.com" target="_blank">here</a>.
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Legislative changes to create new compliance burden and could delay property settlements: Manda Trautwein

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GEUST OBSERVER
Keeping inflation on target is proving to be a challenge for many central banks. Most of the major central banks have had inflation well below their targets in recent years.
The RBA may now be having a similar problem. Headline CPI inflation has now been below the RBA’s 2-3% target band for six quarters, which is the longest period of sub-target inflation since 1999. More worrisome, the underlying measures of inflation, which abstract from temporary factors, are also well below the target band. The RBA’s preferred measures of underlying inflation were around 1.5% y-o-y in Q1.
Given the low global inflation story, it is tempting to suggest that Australia is now just succumbing to forces that are beyond local control. This possibility cannot be completed dismissed. However, at this stage, the evidence suggests otherwise. Firstly, the significant slowdown in inflation has been largely in non-tradable (domestically produced) inflation. This includes education and housing rents, which had much weaker prices growth in Q1. The factors driving this weakness are local rather than global. Tradable inflation, which is largely imported goods and services, was broadly in line with the level implied by the AUD and import prices in Q1.
Secondly, although local growth has been solid, it has still been below trend over the past three years. Below-trend growth has meant that spare capacity has built up, which is weighing on domestic inflation. For example, although the unemployment rate has fallen (it was 5.7% in April), it is still above the full employment level (5- 5.25%). As a result, wages growth is at its slowest rate in at least two decades. 
Finally, the rebalancing of growth from mining to the services sectors is proving to be disinflationary. This partly reflects that wages tend to be lower in the services sectors than in mining-related areas. 
Our models suggest that underlying inflation will remain below the RBA’s target band over the next year, but then lift back into the band as the labour market tightens and wages growth gradually rises. This is a stronger profile than the RBA is forecasting for underlying inflation, with the RBA forecasting a particularly weak inflation outlook.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.24.37%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.24.37%20AM.png" alt="">
Domestic price pressures are weak, despite solid GDP growth
Given low global inflation, it is tempting to suggest that Australia is now just succumbing to the global story. Of course, to some degree, this is true. Indeed, the significant fall in global commodity prices has been a major driver of the dynamics in Australia’s economy in recent years and, to this extent, the global story is clearly having a big influence.
However, at a proximate level, it was not the low global inflation story that drove the significant recent downside surprise in Q1 CPI inflation, and thus triggered the recent RBA cut. Tradable inflation (mostly imported goods) was roughly in line with what was expected, given movements in the AUD and in imported prices. The big surprise in the Q1 CPI numbers was the lower-than expected domestic price pressures. Non-tradable (domestic) inflation fell to its lowest rate in at least 17 years, running at 1.7% y-o-y in Q1 (Chart 1). The broad-based nature of the weakness in price pressures saw the RBA’s preferred measures of underlying inflation – the trimmed mean and weighted median – fall to an average rate of 1.55% y-o-y (Chart 2).
Weaker domestic inflation has arrived, despite solid GDP growth (Chart 3). Importantly, however, it is worth keeping in mind that GDP has been below trend for the past three years, on average, which has seen a build-up in spare capacity, with the unemployment rate still well above the full employment level (Chart 4). There has been growth, but not quite enough of it.
The solid GDP growth numbers have also been heavily driven by exports of commodities and services. Domestic demand has been modest, even after stripping out the decline in mining investment (Chart 5). Weaker domestic demand has weighed on domestic wages and prices.
The rebalancing of growth from mining investment to the housing and services sectors has also put downward pressure on wages growth and thereby on inflation. Jobs in the mining and associated industries are being replaced by generally lower paid work in the services sectors, which has contributed to weaker wage outcomes. The latest numbers show that wages growth has weakened to its slowest pace in at least two decades (Chart 6). For more on this composition effect see Downunder Digest: Looking for signs of rising wages, 15 April 2016.
At a component level there are also clear signs that much of the weakness in inflation has been due to domestic factors. Two key components of CPI that surprised to the downside over the past year have been housing and education (Chart 7). On housing, the weakness has reflected sluggish growth in rents.
Part of the story is that rents have fallen in Perth, where the end of the mining boom has weighed on demand, while there has also been a significant boost to supply of rental properties, particularly apartments (Chart 8). Growth in rents is likely to have been held back in other capitals by a ramp-up in investor housing putting more rental properties onto the market.
Education has been weaker due to a surprisingly sharp fall in tertiary education fees.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.25.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.25.58%20AM.png" alt="">
What the inflation models are saying
To take a more formal approach to understanding the recent inflation dynamics we estimate two workhorse inflation models – a mark-up model and an expectations-augmented Phillips curve model – both based on the RBA’s own approach to modelling inflation. The Phillips curve model that shows inflation as the result of past and present measures of spare capacity in the economy, proxied by the unemployment rate and output gap (reduced spare capacity leads to higher inflation). The mark-up model sees inflation driven by current and lagged unit labour costs and import prices (this assumes firms set prices as a mark-up over costs). For more on the models see: Downunder Digest: Australia’s low inflation outlook, 19 November 2015.
To start with, it is worth pointing out that these models were surprised significantly to the downside by the weakness of the Q1 CPI result (Chart 9). This could reflect a range of possibilities. It could be telling us that there was a statistical distortion in the Q1 CPI numbers that exaggerated the weakness (that is, the models are more right). On the other hand, it could be telling us that our model is mis-specified (the data are right). Interestingly, a look at the model residuals suggests that the forecasts ‘miss’ was not out of the ordinary (as Chart 10 shows, the model predicts a much smoother path for underlying inflation than is apparent in the actual numbers).
One thing is very clear: the models do not predict a repeat of the very low Q1 underlying inflation print, with underlying inflation expected to be around 0.4-0.5% q-o-q in Q2. Using our central forecasts as inputs to the models, underlying inflation is projected to run at around 0.4- 0.5% per quarter over the rest of 2016 and all of 2017. This would see the trimmed mean running at 1.6-1.7% y-o-y for the rest of 2016, and getting back to around 2.0% in mid-2017.
The RBA is now forecasting inflation to be low
Following the downside surprise to the Q1 CPI numbers the RBA significantly lowered its own forecasts for underlying inflation. The RBA has taken around 50bp out of its underlying inflation forecast over 2016 and around 25bp of the forecast in 2017 and into 2018 (Charts 11 and 12). The RBA now expects underlying inflation to be below the 2-3% target band until mid-2018. This is a significant change in the RBA’s view and seems to be a larger adjustment than just carrying forward the direct impact of the Q1 forecast miss. Our own models have a slightly stronger outlook for inflation, with underlying inflation getting back to 2% a year earlier than the RBA’s central forecast.
We see a part of the RBA’s approach as tactical. Firstly, the RBA will be hoping not to get further downside surprises to its current inflation forecast as this could undermine the credibility of the inflation-targeting regime. Secondly, the much lower inflation forecast helps to bolster the RBA’s easing bias, which in turn may help to put additional downward pressure on the AUD. A lower AUD is clearly desirable for supporting growth but also for lifting inflation.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.27.00%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.27.00%20AM.png" alt="">
What this could mean for policy
If our view is the right one, stronger domestic growth, which drives a further improvement in the labour market, should lead to a pick-up in wages growth and inflation. In this story, the main driver of recent weaker-than-expected inflation has been an extended period of below-trend GDP growth and the effect of the transition from mining to services sector-led growth. In short, the recent disinflation can be largely explained as a cyclical phenomenon, rather than a structural one.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.28.18%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.28.18%20AM.png" alt="">
If this is the case, the appropriate policy prescription is looser policy. As the RBA has a mandate to maintain price stability, it seems likely that the central bank will need to cut the cash rate further. If our models are correct though, domestic inflation is nearing its trough. As a result, we see the RBA cutting once more, to 1.50% in August, and holding steady at that level in subsequent quarters. Looser fiscal policy would also be helpful, albeit not expected.
There are, of course, risks around this outlook. The first is to growth itself. Weaker-thanexpected growth could continue to weigh on wages and inflation, forcing the RBA to cut further.
Another risk is that more of the recent weakness in wages and inflation is structural and perhaps a global phenomenon. This could reflect the impact of globalisation, technology or the flow on effect of a long period of weak growth in the developed world in recent years that has left considerable excess capacity in a range of economies.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.22.13%20AM.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-20%20at%208.22.13%20AM.png" alt="">
Paul Bloxham is chief economist (ANZ) for HSBC . Daniel Smith is economist. They can be contacted <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">here</a>.
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Property 101: Explaining Australia’s low inflation with HSBC's Paul Bloxham

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If you thought the election debate on negative gearing was interesting watch the new property debates get a whole lot hotter with the Australian Taxation Office’s (ATO’s) latest bombshell announcement which guaranteed will send shockwaves through property markets. 
No doubt this is just the next step following the ATO being handed total ownership of the Australian property transaction register in mid – 2015, a role they had been champing at the bit to control for quite some time.
From Friday July 1 2016 (the day before the federal election) all sellers of residential and commercial property worth in excess of $2 million will be deemed as an overseas investor unless they can attain a special tax clearance. Failure to attain the special tax clearance certificate means the seller must deduct ten (10) percent from the purchase price which is immediately paid to the ATO.
No doubt lawyers, accountants and conveyancers would be rejoicing at these newly discovered revenue streams although what has not been announced is when a seller receives their compliant special tax clearance are the associated costs in receiving the compliance tax deductible?
This is all aimed at closing loopholes solely aimed at the leakage of tax revenues. Australian residents will get their tax clearance so long as they are up to date with tax returns, proving that they acquired the property within their declared earnings – which I see as a very good move.
When the ATO took over the property reins they quickly started extrapolating all property transactions back to 1985, so it will take a while to complete the register. This new legislation is simply closing the door on those who acquired property illegally either from proceeds of crime or as non – residents.
For the last five years foreign investors have been running amok buying Australian real estate. The federal governments have laid out the welcome mat when they raised off – the – plan purchase restrictions in 2008 from 50 percent to 100 percent.
This week Fitch Ratings warned that Australia clearly has a significant ‘hidden’ offshore property buyers risk. Andrea Jaehne, a director at Fitch Ratings, stated that she was shocked by the increase of foreign buyers since 2010, where the Foreign Investment Review Board experienced an eightfold increase in approvals up to 2015. She said that it was difficult to know the true number of properties being sold offshore because foreign investment rules did not require an approval for foreigners buying apartments off the plan.
The question that needs to now be asked is (with the recent property frenzy which conveniently replaced the mining boom) with all these new measures what will happen to property prices? Well foreign buyers will almost certainly now hold back and watch what happens to the Australian markets particularly Melbourne and Sydney – we can expect some big corrections in these investment markets.
With a further 250,000 apartments to hit the domestic markets within the next two years it is very difficult to see a happy outcome for these markets – more particularly as we have more evidence that these markets are significantly slowing. Then throw in the latest Australian Bureau of Statistics data which shows that Australian wages are growing at the slowest rate for at least 18 years.
Furthermore, we are now hearing that market analysts are now coming to the conclusion that low interest rates actually cause more damage to the economy. As one commentator said this week “very low interest rates around the world are inhibiting economic recovery rather than encouraging it.”
Australia is now just 44 days away from getting a clearer indication of what will happen to the markets more particularly with negative gearing. Now is not the time to start tinkering with investors clearly preferring existing properties. Agents will tell you that when an existing apartment comes onto the market the ratio of home buyers to investors inspecting is generally 50/50. Take away half the market and of course prices will come down – which in turn will drive rents up.
Of course the opposition treasurer could produce his modelling to show otherwise, however this has not been forthcoming so one can then conclude that no modelling is in existence.
With all that’s happening on the Australian property landscape the timing is a potential disaster. In the meantime, watch how many vendors try and offload their properties before the new ATO legislation comes into effect. No doubt the ATO will be watching too.
 
MOSMAN – 2088
Number of houses on the market this time last year – 65
Number of houses on the market last week – 55 
Number of houses on the market this week – 55 
Number of apartments on the market this time last year – 47
Number of apartments on the market last week – 50
Number of apartments on the market this week – 50
 
CREMORNE – 2090
Number of houses on the market this time last year – 5
Number of houses on the market last week – 7 
Number of houses on the market this week – 11 
Number of apartments on the market this time last year – 10
Number of apartments on the market last week – 23 
Number of apartments on the market this week – 22
 
NEUTRAL BAY – 2089 
Number of houses on the market this time last year – 6
Number of houses on the market last week – 8
Number of houses on the market this week – 8 
Number of apartments on the market this time last year – 29 
Number of apartments on the market last week – 21
Number of apartments on the market this week – 22
 
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
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robertsimeon-hRNTwJyXkQ

ATO quickly wields its big new property tax

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GUEST OBSERVER
The April Labour Force report showed that labour market conditions remain okay, but momentum has slowed.
While labour market indicators remain mixed at the moment, we continue to expect the unemployment rate to remain close to the current 5.7 percent for the rest of the year.
Today’s numbers are unlikely to change the RBA’s view on the outlook; its focus has tilted more sharply towards inflation and we continue to expect another cut in the cash rate in August.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%204.12.36%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%204.12.36%20PM.png" alt="">
Today’s labour market report showed continued slowing momentum in jobs growth. Employment is now up just +0.1 percent 3m/3m compared with +0.9 percent three months ago. That said, the stability in the unemployment rate at 5.7 percent suggests that the labour market remains in good shape.
Some labour market indicators have been mixed lately. For example, ANZ job ads have been essentially flat for the last six months, and an unemployment rate based on welfare payments ticked higher in March. But indicators like capacity utilisation and profitability in the business surveys point to a solid labour market.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%204.13.50%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%204.13.50%20PM.png" alt="">
However, a preliminary read on our Fed-style labour market conditions index, which distils the common trend across a large number of indicators, was unchanged in April. This indicates to us that the labour market remains solid after last year’s sharp improvement was unwound. 
RBA implications: While the RBA’s focus has shifted to the inflation outlook, as is always the case developments in the labour market are important for monetary policy deliberations. We think today’s numbers are likely to be broadly as the Bank expected.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%204.14.03%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%204.14.03%20PM.png" alt="">
That said, we continue to expect another 25bp rate cut in August given the sharp downgrade to its inflation forecast.
 
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Modest Australian jobs gain with steady unemployment: ANZ's Felicity Emmett

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GUEST OBSERVER
From the outset it should be stated that the labour market is in pretty good shape. 
The unemployment rate remains at a 2½-year low and jobs are still being created. However it is pretty clear that there is a slowdown in hiring taking place. And the consolidation in employment is consistent with the softer conditions across the economy over the past couple of months.
Not only is has there been a fall in full time jobs over the past two months, but weakness in hoursworked is more telling. Hoursworked has fallen for the past three months and in annual terms is now down 0.5 per cent on a year ago. Now that may not sound like much but it is the first annual fall in hoursworked in almost three years. Interestingly in trend terms (a more smooth measure), employment may have risen for 29 consecutive months but the jobs growth of just 4,100 in April was the weakest in 19 months.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%203.47.50%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%203.47.50%20PM.png" alt="">
After racking up almost 300,000 new jobs in 2015, there was likely to be inevitable period of consolidation. And the volatility in financial markets in the early part of 2016 was unlikely to see businesses commit to significant hiring. The fact that we are still adding jobs is a positive and while we expect employment to strengthen over 2016, it is likely that employers will be more circumspect in hiring given the upcoming Federal Election.
The Reserve Bank discussed the more mixed labour market signals at their last Board meeting ahead of cutting interest rates. Given the softer set of economic data no doubt policymakers will place more emphasis on labour market data in coming months.
The Reserve Bank will be hoping for a lift in activity levels particularly once the election gets out of the way. The key will be the inflation data, due on July 27. A super low inflation result would allow the Reserve Bank to contemplate another rate cut – in effect asking the question whether the economy could run at a faster pace without creating asset bubbles. We expect rates to be cut once again in August.
What do the figures show?
Labour force:
Employment rose by 10,800 in April after rising by 25,700 in March (previously reported as a rise in jobs of 26,100). Full-time jobs fell by 9,300 while part-time jobs rose by 20,200. Economists had tipped a 20,000 increase in jobs.
Hours worked fell by 1.1 per cent in April. Hoursworked are down by 0.5 per cent over the year – marking the first annual decline in hoursworked in almost 3 years.
The unemployment rate held steady at a 2½-year low of 5.7 per cent in April (lowest since September 2013). The trend unemployment rate fell from 5.8 per cent to 5.7 per cent – a 31-month low.
The participation rate eased from 64.9 per cent to 64.8 per cent.
A total of 244,700 jobs were added over the year to April. The annual growth rate rose from 2.0 per cent to 2.1 per cent. In trend terms, employment has risen for 29 consecutive months although the jobs growth of 4,100 in April was the weakest in 19 months.
The working age population rose by 21,700 in April. The working age population rose by 288,900 over the past year. The working age population is up 1.5 per cent over the past year.
Unemployment across states in April: NSW 5.3 per cent (March 5.3 per cent); Victoria 5.6 per cent (5.7 per cent); Queensland 6.5 per cent (6.2 per cent); South Australia 6.8 per cent (7.1 per cent); Western Australia 5.6 per cent (5.5 per cent); Tasmania 6.3 per cent (6.8 per cent). In trend terms unemployment in the Northern Territory rose from 4.4 per cent to 4.5 per cent; ACT unemployment fell from 4.2 per cent to 4.1 per cent.
Jobs across states and territories in April: NSW +8,400; Victoria +100; Queensland -5,600; South Australia +5,400; Western Australia +700; Tasmania unchanged. Trend terms: Northern Territory -100; ACT unchanged.
Why is the data important?
The Labour Force estimates are derived from a monthly survey conducted by the Bureau of Statistics. The population survey is based on a multi-stage area sample of private dwellings (currently about 22,800 houses, flats, etc.) and a sample of non-private dwellings (hotels, motels, etc.). The survey covers about 0.24 per cent of the population of Australia and includes all people over 15 years of age, except defence personnel.
If more people are employed, then there is greater spending power in the economy. But at the same time companies may adjust the work hours of employees. If employees work less hours, and therefore get paid less, then spending power in the economy is reduced.
What are the implications?
Labour market conditions have certainly improved over the past 18 months; business conditions are healthier; profitability has improved; and more importantly the housing sector is providing significant support to an array of industries. However the upcoming election has resulted in a more cautious tone across the economy.
The fact that the national unemployment rate is holding at 5.7 per cent – the lowest levels in 2½ years – will provide a big boost to confidence amongst Aussie consumers. And as we saw over the latter part of 2015, job security plays a big part in household consumption. However with a lack of wage growth, household real incomes could face pressure over the medium term and that is likely to be another reason why we expect that the Reserve Bank will contemplate another rate cut in August.
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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