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

Joel Robinson

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

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

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

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

Bottega House secures landmark riverfront site in St Lucia 

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

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Since Primewest commenced investing in Australian commercial property in 1993 we have witnessed three tough periods. When we bought our first property (a neighbourhood shopping centre in Perth which we still own) a huge proportion of vendors were receivers or at least forced sellers.  
Banks were desperately unloading property to save themselves. The mid 90s were the best years to buy real estate in my memory. Around 2002 things got tough again as the economy slowed but this was really quite minor compared to the mid 90s and the GFC from 2008 till 2012.  
The GFC has been our next greatest buy period and for the same reasons as the 90s. Nervousness, even panic and many forced sellers presents countercyclical investors with the opportunity for out-performance and so it has transpired as property prices once again recover and in some instances rise sharply.    
Where to from here?
Right now there is a, for some, a worrying disconnect between market fundamentals on the one hand and rising prices on the other hand.  
In almost every commercial office market across Australia leasing has become tougher – exemplified by rising incentives on the one hand but lower or flat rents on the other. Continuing sluggish economies in Europe and the US and a somewhat unclear outlook in China has lead to cut backs in the mining services sector and a general lack of confidence by tenants. Industrial properties and neighbourhood shopping centres have fared better as there is generally not the same level of volatility in these sectors.  
So what is driving prices up?
At it’s simplest, it appears to be a weight of money argument. Both international and domestic investors are literally awash with cash to invest. Interest rates worldwide are at historic lows and as a result both the stock markets and real estate markets are seeing rising levels of investment. Investors are putting their money into relatively safe haven, transparent markets which can produce better than stagnant returns.    
Have investors got it wrong in the face of weak fundamentals?
I don’t believe so. I believe that the property market is operating in the same way as equities markets always do. It has been said that stock markets are invariable 12-18 months ahead of the actual economy. That is to say, investors buy shares ahead of company earnings recoveries or growth.  I think precisely the same phenomenon is at play in the commercial property market. Investors are predicting a recovery in market fundamentals over the next two to three years. That makes sense to me and therefore I remain confident that values will continue to rise as market fundamentals improve to justify these prices.    
My verdict – Good, not bad and not ugly.

<hr>
John Bond is co-founding director of <a target="_blank" href="https://www.primewest.biz/">Primewest</a>.
 
 
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jbond-NJ67zxEV52

The commercial property market: The good, the bad or the ugly?

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The position of a retail store can make or break its success. For anyone considering embarking on a retail venture, or for existing retailers looking for a new site – where do you start in your search for the perfect space?
According to Colliers International, there is around 2.6 million square metres of retail space currently under construction or expected to be completed over the next five years. More retail space means more choice – but there’s no need to be confused by the options – there is a science behind selecting the position of a store that will give you the biggest chance of succeeding.
But what is that formula for success?
As Australia’s largest bakery franchise, which works both with, and on behalf of its franchisees to secure new sites, the Bakers Delight property team has years of experience in securing the best possible location to ensure its bakeries deliver the greatest potential for franchisees.
The methodology behind site selection is not just a matter of choosing between a local shopping strip or a shopping centre. Our stores do better in very specific circumstances and that knowledge is applied to ensure we’re located in the best possible position. Here are the three key areas to think about in crafting your own winning formula – from the macro through to the micro:
1. Macro-economics and demographics
The first question to ask is: what are the economic trends at play in the retail sector in general and what’s the broad economic profile of the area you’re considering?
It’s always worth staying across retail sector research – for example, the most recent Colliers International report states that across the retail categories, the highest individual sector returns were achieved by neighbourhood shopping centres (8.9%) for the year to March 2013. Statistics like these will be essential to your decision-making.
Then you need to consider the profile of the community. Is it already well-established or is there an opportunity for population growth due to housing developments in the area? Don’t just think about what’s there now, think about how this could change over the years and the opportunities and challenges that presents.
Now consider the demographic make-up of that community and does it match your likely customer base? Demographic profiles obviously include things like age, ethnicity and income, but it’s also worth thinking about demographics in terms of ‘life stages’ – as this is one of the biggest indicators of likely shopping habits.
Once you’ve established the bigger picture and know the broad economic and demographic profile of the area matches your strategy, look more closely at the position of the store within that community.
2. The middle macro mindset
Shopping centre or local shopping strip? This stage is all about the potential footfall from existing shoppers in the area – so it’s time to take a closer look at the surroundings. What other stores are close by, and most importantly, what mindset will shoppers be in when they’re in the area? Are the surrounding shops larger retail chains or smaller independents and what does that mean for your success?
Being surrounded by retailers that complement your products will increase your chances of footfall. For example, at Bakers Delight we know that being close to other ‘daily needs’ food retailers boosts our sales – shoppers will wander from the butcher, to the fishmonger to the bakery and the fruit and veg shop to stock up for the week. On the other hand, if the shopping centre or local shopping strip is more fashion focused, even if there are thousands of potential customers per day, they aren’t likely to be in the right mindset to buy our products and an accessories store, for example, would have much more success here.
3. The micro matters
Yes, the micro detail matters. Take a shopping centre, for example: the level the store is on, its proximity to an entrance, whether the centre’s architecture is linear or curved all have an impact on how many people pass by or walk in.
For example, in a curved shopping centre more people tend to walk on the inside not the outside of a curve. While shoppers themselves may not even realise they do this – there is a pattern to how they walk around and shop. A difference of 10 metres can make a huge difference. Have conversations with existing retailers in the area and learn from their experience. Try spending a few hours studying the shoppers in the area yourself and consider how things change at different times of day and on different days of the week.
In theory, there are no unlucky shopping centres – just retailers who haven’t done their research.

<hr>
Gerry Gerrard is the general manager of <a href="https://www.bakersdelight.com.au/?" target="_blank">Bakers Delight</a>. An Australian owned company, Bakers Delight has 700 bakeries employing more than 15,000 people, serving two million regular customers a week throughout Australia, New Zealand, and Canada.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
 
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jake-cSmGT7VXVf

Retail store locations: The science behind the choice

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The growth in Australian average wages has slowed, in some sectors to the lowest rate since 2000, as the mining boom tapers off and the new government puts the squeeze on public servants.
According to the RBA’s Statement on Monetary Policy released yesterday, wages in the June quarter rose 0.7%, bringing yearly wage growth to 2.9%.
This is 0.75% below the average annual growth over the past decade, and while it’s been led by declines in mining and the public service, the slowdown has been broad based.
“Over the year to the June quarter, wage growth was below its decade average in all industries and the dispersion in wage growth across industries was at its lowest level since at least 1998,” the RBA <a href="https://www.rba.gov.au/publications/smp/2013/nov/pdf/price-wage-dev.pdf">said in its report</a>.
“Wage growth in the mining industry has slowed particularly sharply since the beginning of the year, consistent with the decline in the demand for labour in that industry.
“Wage growth in the business services sector (which accounts for around one-fifth of total employment) has also declined markedly, in part reflecting the decline in mining-related demand for business services, and has accounted for a large part of the slowing in aggregate wage growth over the past year.”
Wage growth slowed in all Australian states over the year. In New South Wales, Queensland and Tasmania, wage growth is the slowest it’s been since the early 2000s.
James Morley, a macroeconomist at the University of New South Wales, says slowing wage growth feeds into the RBA’s views about likely future inflation, and makes them less likely to raise interest rates.
But on its own, this isn’t necessarily good news for business, he said.
“Over the past decade, <a href="https://www.smartcompany.com.au/growth/economy/33195-meet-australia-s-most-cashed-up-people-wa-miners-win-the-wage-lottery">wages have grown faster than inflation</a>. You would expect that in a growing economy where workers are becoming more productive.
“The basic economic theory is that wage growth is related to productivity growth. So when you see declining wages, you could worry that it would reflect declining productivity growth, which isn’t good for anyone.
“That means real wages going up isn’t always a bad thing,” he says.
“But if it reflects inflation rather than productivity growth, that is a bad thing.”

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
 
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mrobin-TVRYiru7si

Wage growth slows to lowest rate in decade: Why interest rates could stay low

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Chinese real estate buyers have gone from being hardly there to being everywhere in the property markets. How are Australians adjusting to this new reality?  
Chinese are the biggest international buyers of property in Queensland. They are also number one nationwide, when ranked by growth and momentum.  
People in communities all over Australia have embraced this new reality with a minimum of xenophobic fuss. As an Australian, it makes me proud of my native country.  
Here’s one data point. Because I operate the Chinese international property portal Juwai.com, I receive emails from all over the country from people asking for advice on how to sell their homes to Chinese buyers.  
Not once has anyone written to ask me how to prevent a Chinese buyer from purchasing their home.  
Sure, there have been some angry comments in the media. But nothing happens in this country without angry comments in the media. The typical monthly Reserve Bank announcement on interest rates generates more controversy than the whole Chinese buying phenomenon.  
One reason Australians have embraced Chinese property buying is because most understand that – at some level – they benefit from it.  
Those Chinese real estate buyers who come here to live permanently increase the size of our economy.  
Chinese immigration, which accounts for some of the Chinese buyers, is a boon for Australia. The Wall Street Journal has reported that increases in migration from China in one year lead to a stronger property market three years later, in the form of better sales prices.  
And how about an extra $400 in your pocket. Government research estimates that an increase in immigration today could boost the economy enough to pay that much to every Australian, every year within 20 years. That could be a total economic boost to the Australian economy of $14 billion.  
Those who immigrate here are just a fraction of the overall group of Chinese property buyers. Many more are investors, or are seeking the Aussie lifestyle in a second home. Some are here for business, or are providing a home for their children to live in while attending Australian schools.  
China is the biggest source of international students in the Australian education market. Their fees provide valuable cash flows to Australian educational institutions. That keeps education less expensive for those of us who grow up here.  
All those students also help make education-related travel services are our country’s fourth biggest export in dollar terms — right after iron, coal and gold.  
That brings us to real estate. Every time an offshore Chinese investor buys a new apartment or home, she is in effect slipping money into your pockets. Offshore investors are channeled by Foreign Investment Review Board rules into new construction. By buying off-the-plan, they give developers the funding they need to build more and keep prices stable.  
All that construction also creates jobs. Residential building will add $63 billion to the economy this financial year - an increase of 5% over last year.  
And the Australian Bureau of Statistics says the construction industry is one of the nation’s biggest employers, and also pays more than the national average.  
Australia has embraced Chinese property buyers. I think it might be time you did, too. Go ahead. Give a Chinese real estate investor a hug.
 
<hr>
 Andrew Taylor is the founder and co-CEO of <a href="https://juwai.com/">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. Find out more about him at <a href="https://list.juwai.com/">list.juwai.com</a>.
 
 
 
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Australia is embracing Chinese investment in real estate

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It’s a tale of two cities: Home loan approvals in September were the highest since October 2009 - yet the month had the lowest proportion of first home borrowers in two decades.
Figures from the Australian Bureau of Statistics show that the first quarter of the financial year had 12% national growth in loan approvals over the previous year and 13% year on year growth for September.
This comes on the back of record low interest rates, high clearance rates and a boost in the number of properties for sale.
However, increased investor activity – and a noticeable rise in cashed-up foreigners - has forced first home buyers out of the race, with their numbers falling from 13.7% of buyers in August to 12.5% in September.
The proportion of first home buyers in the number of owner-occupied housing finance commitments is now one in eight - the lowest since data was collected in July 1991, the Real Estate Institute of Australia says. It is far lower than the long-run average of 20.15%, despite eight interest rate cuts since November 2011.
In contrast, owner-occupied finance approvals rose 12.6% for the 12 months to September and investors took out 5.2% more loans in September than in August.  
"With the proportion of first home buyers at historic lows and figures indicating no bubble in lending, the Reserve Bank Board should be taking a ‘steady as she goes’ approach in December," said REIA president Peter Bushby.  
Changes to the first home buyers’ grants - which in Victoria is $10,000 for the purchase of new homes after July 1 this year but none for established homes – is being blamed for keeping first home buyers behind the eight ball. Pressure on them is further compounded by investors having greater equity in existing property and being able to borrow more at cheaper rates - without the need for mortgage insurance.  
But state treasurer Michael O’Brien said loan approvals for new dwellings in Victoria were the highest of any state. "Victoria contributed 29% of national loans for new dwellings in September which is above its population share of 24.8 %.
"The Coalition government is supporting first home buyers by increasing grants for new homes and bringing forward a major cut in stamp duty.
"Since July 1, more than 6,500 new home buyers have received the stamp duty concession, which amounts to almost $36 million in benefits to first home buyers.
"Targeting the first home owner grant to newly constructed homes – whether in regional Victoria, Melbourne’s growth corridors or new CBD apartments – will stimulate the economy and create jobs in the construction sector." He said the move "brings Victoria into line with New South Wales, Queensland and South Australia".
Loan Market director Mark De Martino said that the first quarter of the financial year was off to "a very hot start" with low interest rates and a recovering property market helping boost activity in the home finance space.  
"Nearly every state is showing double digit growth for the first quarter" De Martino said.  
The 51,938 home finance approvals in September were a rebound from the August figures which saw the first month-on-month drop in approvals in 45 months.  
High auction clearance rates this spring point to a continuing upward trend in market activity.  
De Martino said pre-approvals were helping buyers get a ‘leg up’ over the competition at auctions, although he agreed first home buyers were struggling to enter the market. "As the prospective pool of buyers grows, it’s only a matter of time before first home buyers return. 
"They are competing with cashed-up investors and upgraders who have significant equity in their properties. Building a sizable deposit and understanding their borrowing power with pre approval will give them the best chance to compete in this market."  
Number of Home Finance Commitments September 2013: ABS  
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>
State
</td>
<td>
September 2013 v 2012
</td>
<td>
Quarter v Quarter
</td>
</tr>
<tr>
<td>
NSW
</td>
<td>
9%
</td>
<td>
11%
</td>
</tr>
<tr>
<td>
VIC
</td>
<td>
17%
</td>
<td>
15%
</td>
</tr>
<tr>
<td>
QLD
</td>
<td>
11%
</td>
<td>
12%
</td>
</tr>
<tr>
<td>
SA
</td>
<td>
19%
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
WA
</td>
<td>
11%
</td>
<td>
8%
</td>
</tr>
<tr>
<td>
TAS
</td>
<td>
6%
</td>
<td>
8%
</td>
</tr>
<tr>
<td>
NT
</td>
<td>
-1%
</td>
<td>
-11%
</td>
</tr>
<tr>
<td>
ACT
</td>
<td>
24%
</td>
<td>
23%
</td>
</tr>
<tr>
<td>
Australia
</td>
<td>
13%
</td>
<td>
12%
</td>
</tr>
</tbody></table>
<hr>
<img src="/images/stories/2013/11/06/jc-insights.png" width="140" height="150" alt="jc-insights" style="float: left;">PROPERTY INSIGHTS
<a title="Falling first home buyers numbers the result of state government FHB grant meddling" href="https://www.propertyobserver.com.au/news/falling-first-home-buyers-numbers-the-result-of-state-government-fhb-grant-meddling/2013111166285?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=jonathanchancellor'spropertyinsights">Falling first home buyers numbers the result of state government FHB grant meddling</a>
"The decline in FHB numbers follow the re-targeting of the originating FHB grants and/or stamp duty exemptions across the states to encourage FHBs to buy new homes not established homes."
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staylor-63KgDrKwoY

Home loan approvals soar while first home buyer proportion sinks

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A Melbourne real estate agent was ordered to serve 200 hours of community services after illegally claiming a First Home Owner Grant (FHOG) despite already owning a home, according to the State Revenue Office (SRO) of Victoria. 
The man pleaded guilty to the First Home Owner Grant Act 2000 and Tax Administration Act 1997. His legal team told the court that he was unclear about what he was doing and the repercussions of his actions. The magistrate dismissed this claim due to the nature of the man’s occupation.
The man first bought a property in St Kilda in 2005 and received the FHOG. The grant was later reclaimed after the SRO found he did not meet the residency requirements.
In 2009, he purchased a second property in Chadstone and applied unsuccessfully to receive the FHOG. The SRO rejected the application on the basis that he had not repaid the FHOG for his St Kilda property.
After repaying that amount, he once again applied for the FHOG. During this period he acquired another property in Moorabbin. When SRO investigators questioned the purchase of this property, he provided a statutory declaration stating the Moorabbin property was for investment purposes and he had never lived there.
Upon receipt of this declaration, he was then paid a $16,000 FHOG.
The SRO conducted further investigations and found that the man once again did not meet the residency requirements to receive a FHOG.
The court heard that the man was extremely sorry and had learned an important lesson from his actions. He was then sentenced without conviction to a 24-month community correction order that requires him to perform 200 hours of community work, amongst other conditions. He was also ordered to pay an extra $203.60 of out-of-pocket costs to the SRO within a month.
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dleow-BGaNPbHWyK

Melbourne real estate agent pleads guilty to First Home Owner Grant offences

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Its never been easy. Every generation of first home buyers has faced affordability obstacles and choices, but the noisiest of the latest batch of first home buyers would prefer to bleat rather than make the latterday sacrifices that were undertaken, in an earlier form, by their parents. 
I accept that the 2013 buying prospects are diminished, but the buying priorities and requirements appear almost non-negotiable by this so-called, doomed to rent for life generation.
At weekend auction, when the APM median house sale price was a likely record $1.065 million, I spotted at least 25 offerings sold at below $500,000, with opportunities for instance to buy a unit in Meadowbank, Cronulla, Parramatta, Summer Hill, Burwood, Five Dock, Croydon Park, even Bronte.
There were houses in Granville, Casula, Parramatta, Blackett and Fairfield West.
The weekend's cheapest sale was $191,000 for a four bedroom 1960s house on 1500 square metres in the Blue Mountains. The Bullaburra property, which sold to an investor, had last sold at $240,000 in 2007. The suburb's median house price is $377,000.
Sydney currently has 51 suburbs with median house prices below $400,000 including:
Tregear $240,000
Bidwill $250,000
Blackett $251,000
Emerton $252,000
Lethbridge Park $255,000
There are 122 Sydney suburbs with house medians below $500,000.
For units, it has 45 suburbs with median unit prices below $400,000.
There are some 98 suburbs with below $500,000 unit median prices.
That's out of the 650 Sydney suburbs.
Some of these options are located in the upper north shore, the inner west and the city and east, including Hornsby $450,000 units, Forest Lodge $456,000 units, Newtown $466,000 units, Ultimo $490,000 units and Eastlakes $410,000 units.
Yes APM has previously acknowledged the average distance from the city centre for the Sydney suburbs below $400,000 was 52 kilometres.
That's compared with 36 kilometres in Melbourne and 30 kilometres in Brisbane, APM noted.
But as Andrew Wilson, the senior economist at Australian Property Monitors recently noted, Sydney has a lower end housing market that is "as accessible, if not more accessible, than most other capital city markets."
With the Sydney median house price now exceding $700,000, it is the option for first buyers to look where they can buy new houses for less than $400,000 and existing stock for over $240,000.
Sydney, with its high median because the middle market is so strong, does has the buying prospects. They just have to be viewed as worthy, transitory, not unpalatable.
<a target="_blank" href="mailto:news@propertyobserver.com.au"></a><a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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jchancellor-FAypfDUnLy

First home buyers have choices; but they deem distant western Sydney option unpalatable

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For property managers, landlords, and short-term rental owners, schoolies can understandably be a significant time of stress with young high-school grads likely resident in your properties, particularly around coastal and holiday areas.
Recently, schoolies <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/schoolies-warned-not-to-trash-apartments/2013101465683">have been warned not to trash apartments</a>, and while it can be a nervous time, much damage can easily be avoided with some simple risk mitigation and ground rules, according to Archers Body Corporate Management senior body corporate manager Michael Ryall.  
“To assist with preventing any misbehaviour or tragic events unit owners should revisit their behaviour management plan and schoolies ‘House Rules’ now,” said Ryall, noting the majority of graduates are actually well behaved.  
Sending the rules to school leavers early, to ensure they understand expectations, can be a quick and easy way to stamp out any issues.  
“A body corporate has control over the common property but cannot independently take action such as locking doors to restrict access to areas within a single lot,” he said.  
“If owners are looking to lock balcony doors they should discuss this with the resident managers of their buildings.”  
With many schoolies concerned about getting their bond money returned, he said that it’s unlikely trouble will occur, however resident managers on site should be enforcing the house rules.
He suggested some of the following guidelines: 
<ul>
<li>No glass bottles in the room or pool area (bag checks can be carried out by onsite security)</li>
<li>Maximum of two external guests permitted to the room at any time, with identification held at reception (this restricts likelihood of parties)</li>
<li>Noise must be kept to a minimum</li>
<li>Dangerous behaviour will be dealt with by police</li>
</ul>
“Any damage made to the room or contents during a stay will come out of the bond amount. If schoolies encounter problems, the best way to come to a resolution is to talk to the accommodation provider with respect,” he said.  
“Accommodation providers are required to have a complaint handling process and schoolies are entitled to lodge a written complaint if they feel that they have been treated unfairly.”  
Tips for schoolies looking to get their bond back:   
<ul>
<li>Obtain a receipt, find out when the money will be paid back and how any potential disputes will be resolved</li>
<li>Become very familiar with your house rules and responsibilities under the accommodation’s booking conditions and make sure you and your friends abide by them</li>
<li>Inspect the room very well as soon as you arrive and report any damage as soon as possible. Take photos of any damage or marks so you have a record</li>
<li>Be present and attentive during the check-out inspection and talk to the accommodation provider about the final report</li>
</ul>
Source: Archers Body Corporate Management  
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jduke-EHk3XBmHkn

Schoolies are on their way to a rental near you: Risk mitigation tips

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When it comes to safety and the upkeep of the investment properties, or “rental properties,” the question that echoes through the industry is this one: Who is liable should anything happen to the tenants? <a target="_blank" href="/news">In my last article</a> there were a number of issues raised and the need for property managers to be better versed in the area of safety and hazards that are overlooked in rental properties. This time around we will look at electrical issues.
<img src="/images/stories/2013/11/08/Just_Think_Property_Safety_Switch_1.jpg" alt="Just_Think_Property_Safety_Switch_1" height="353" width="470">
Electrical fuse boxes
With over 1,000 electric shocks, and on average four fatalities reported in NSW in 2010-2012, I am once again calling out to the authorities to take action in what is an alarming situation when it comes to lack of safety and electrical negligence on the part of the agents/landlords. In the last three months we have inspected new managements coming into our office and find a disturbing number of properties with dangerous and faulty electrical cabling and particularly fuse boxes with no adequate safety measures.
Many believe that by having one “safety switch” it is enough to protect the occupants. Well, it’s not. These only protect the power circuits in most instances. What of the light circuits, the hard wired stoves, water heaters and air conditioning units that require circuit breakers? But then there are also a number of properties that don’t even have a safety switch.
Alarmingly we come across these regularly. I am not referring to just self-managed rental homes either, but also to properties that have been managed by professional agencies and for many years.
<img src="/images/stories/2013/11/08/Just_Think_Property_Safety_Switch_2.jpg" alt="Just_Think_Property_Safety_Switch_2" height="353" width="470">
Where do we begin?
I am not calling for real estate agents to become electricians, but surely simple observations can determine if the main electrical boxes require professional attention and upgrading. The main indicator will no doubt be the age of the property itself. My soccer coach used to tell us “if in doubt kick it out” when we found ourselves overwhelmed with the opposing side attacking our goal. Likewise, I say “if in doubt call the expert” in this case the electrician that is up to speed with the regulations and requirements. Better still, send the electrician a photo through your smartphone and get an answer ASAP. Don’t delay the response or action, electricity is not to be messed with.
What I am calling for, is the industry to lift its game when it comes to safety issues and hazards in and around rental properties. But as stated previously, there are many factors preventing and creating an impasse for any lift in standards.
Edwin Almeida is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>. 
 
 
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ealmedia-arK4DBYLjS

Landlords, lift your game: Safety issues are putting tenants at risk

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Jobs are an important element of the housing market equation. Without a job it’s hard to keep up mortgage payments or apply for a loan and the same can be said when the hours worked are too few. A weaker jobs market will generally translate to less wages growth and less upwards pressure on dwelling values. So it’s encouraging to see Australia’s labour market remains fairly tight, at least from an international standpoint.
The labour market data for October which was released by the Australian Bureau of Statistics last week showed a headline seasonally adjusted unemployment rate of just 5.7% which is unchanged from September after an upwards revision over the month. As some international comparisons, unemployment in the USA is 7.2%, the Euro area is at 12.2%, United Kingdom has an unemployment rate of 7.7%, New Zealand is at 6.2% and Canada is recording unemployment of 6.9%. There are plenty of counties with a lower rate of unemployment than Australia’s (for example, Japan at 4.0%, Germany at 5.2%, China at 4.0%, Switzerland at 3.0%), however Australia’s jobs market is looking OK at face value.
<img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/National-unemployment-rate-580x198.jpg" alt="National unemployment rate" class="aligncenter size-large wp-image-2679" height="160" width="470">
Taking a look below the headlines though shows some aspects of the labour market which are softening.
For a start, at a national level there were no full time jobs created over the past 12 months. The total number of jobs created over the twelve months to October 2013 was 89,200 of which there were 59,500 fewer full time jobs and 148,700 more part time jobs. The last time we saw such a divergence in full time versus part time jobs creation was back in 2008.
<img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/Annual-change-in-number-of-full-time-and-part-time-jobs-580x216.jpg" alt="Annual change in number of full time and part time jobs" class="aligncenter size-large wp-image-2680" height="175" width="470">
At a state level we can get a clearer idea of where the jobs are being created and lost (note that the below data isn’t seasonally adjusted). It’s encouraging to see that Queensland, where the jobs market has been patchy since the onset of the GFC, has recorded the highest level of jobs growth with 53,500 new positions over the past year. That equates to more than half the national total which is a very positive sign for the Queensland economy and housing market. Victoria is showing the second largest number of new jobs at 25,700 followed by Western Australia (18,400) then New South Wales (10,800). There were 13,600 fewer jobs in South Australia and 5,600 fewer jobs in Tasmania.
<img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/Number-of-jobs-created-over-past-twelve-months-580x226.jpg" alt="Number of jobs created over past twelve months" class="aligncenter size-large wp-image-2681" height="183" width="470">
Analysing the data across full time and part time jobs creation gets a bit more interesting. Just to qualify this data before going into the detail, the Australian Bureau of Statitics classifies a part time job as one where the worker has worked for less than 35 hours over the week. So the definition is quite liberal. The downturn in full time jobs creation was caused almost entirely by a reduction of full time jobs in New South Wales where there were 48,700 fewer full time workers over the year. In balance, the level of part time jobs growth was the highest of any capital city, however the reduction in full time employment is disturbing and potentially is another factor why first time buyers are such a small proportion of the NSW housing market.
Queensland, where overall jobs creation has been the strongest over the past year, recorded only 5,100 new full time jobs over the year, or about 9.6% of the total number of new jobs.
Victoria created the most new full time jobs (11,400 over the past year) and shows the best split between full time and part time jobs creation (44% of new jobs were full time and 56% of new jobs were part time).
<img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/Annual-change-in-number-of-jobs-full-time-versus-part-time-580x225.jpg" alt="Annual change in number of jobs, full time versus part time" class="aligncenter size-large wp-image-2682" height="182" width="470">
Part time workers as a proportion of the total number of jobs reached a new record high in October, comprising 30.5% of the jobs pool. Despite the rise in business confidence since the federal election, the labour force data suggests that tough business conditions are causing employers to remain reluctant to make long term employment commitments at the moment.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" rel="wp-prettyPhoto[g2677]" href="https://blog.rpdata.com/wp-content/uploads/2013/11/Proportion-of-part-time-workers-employ3ed.jpg"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/Proportion-of-part-time-workers-employ3ed-580x191.jpg" alt="Proportion of part time workers employ3ed" class="aligncenter size-large wp-image-2683" height="155" width="470"></a>
Another factor that suggests the jobs market isn’t quite as buoyant as what the headline figures would suggest is the participation rate which has been trending lower since November 2010. Participation in the labour force has moved from 66.0% in November 2010 to 64.8% in September and October this year. Clearly we are seeing more eligible members of the labour force ‘opt out’ due to either early retirement (the ageing baby boomer cohort is no doubt fuelling the lower participation rate) or frustration with an inability to secure a job.
Without a lower participation rate the jobless rate would have certainly moved higher. Westpac have suggested that if the participation rate hadn’t slipped lower over the past six months the current rate of unemployment would be 6.5% nationally.
<img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/Labour-force-participation-rate-580x206.jpg" alt="Labour force participation rate" class="aligncenter size-large wp-image-2684" height="167" width="470">
An interesting feature of the declining participation rate is that it is being dragged lower primarily by males, rather than females, leaving the work force.
<img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/Participation-rate-males-v-females-580x196.jpg" alt="Participation rate males v females" class="aligncenter size-large wp-image-2685" height="159" width="470">
The official forecast from Treasury is that the national unemployment rate will peak at 6.25% in June next year. If the participation rate continues to fall the official national jobless rate might not reach this high despite what appears to be softer underlying labour market conditions.
It’s worthwhile reminding that unemployment is a lagging indicator; higher unemployment comes after weaker economic conditions. Leading indicators such as dwelling approvals, consumer and business sentiment, share market performance and number of hours worked have shown a much more positive flow over recent months suggesting that labour markets may benefit from these improved business conditions in the future.

<hr>
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/" rel="nofollow">RP Data.</a>
 
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