<a href="https://www.apartments.com.au/developers/mirvac">Mirvac</a> has been developing residential property across Australia for more than five decades. Over the past 10 years, the ASX-listed developer has placed a strong emphasis on sustainability, championed through its This Changes Everything initiative, while more recently diversifying its portfolio with an expansion into the build-to-rent sector.

Central to Mirvac’s approach in recent years has been a focus on how residents will not only enjoy their apartments, but how well each development supports day-to-day lifestyle needs. <a href="https://www.apartments.com.au/new-apartments/trielle-at-yarra-s-edge-docklands-16-point-park-crescent-docklands-vic-3008">Trielle</a>, Mirvac’s latest instalment within its Yarra’s Edge precinct on the Docklands waterfront, is arguably the developer’s most amenity-rich project to date.

With extensive facilities designed for both work and leisure, residents could technically spend an entire day within the tower without needing to leave. Two dedicated spaces cater specifically to working from home: The Biblioteca and The Mills Place Work From Home Pods.

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[smartcode_project:default project_id=114216 project_image_fid=3781]

The Biblioteca, a library designed for quiet work and reading, occupies a peaceful corner of Trielle overlooking the Promenade Grove and Point Park. The Mills Place Work From Home Pods, located on the ground floor, offer bookable office spaces and work pods available for short sessions or full-day use.

With the working day covered, the building’s amenity extends seamlessly into leisure and downtime, just a lift ride away.

One of the most striking inclusions in Trielle’s extensive amenity offering is The Oasis Wellness Club, a verdant urban rainforest complete with a stream-inspired water feature, located seven storeys above the Yarra’s Edge promenade. Designed in collaboration with luxury spa expert Naomi Gregory, The Oasis delivers a Scandinavian-inspired wellness experience, offering residents a tranquil, resort-like setting designed to accommodate spa-style treatments and contrast hydrotherapy as part of daily rituals.

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[smartcode_project:default project_id=114216 project_image_fid=360958]

The wellness offering also includes a biophilic gym equipped with state-of-the-art equipment, along with a yoga and Pilates studio, sauna, hot magnesium pool, cold plunge, 25-metre indoor pool and a spa.

Trielle also places a strong emphasis on socialising. Among the most indulgent spaces is The Salone Piano Bar, an intimate lounge featuring richly textured interiors and north-facing river views. Positioned just 14 metres from the river’s edge, the space invites residents to unwind to the sounds of a self-playing piano.

[smartcode_project:default project_id=114216 project_image_fid=3777]

Adjacent to the piano bar is the Chef’s Table dining room, designed for private dinner parties and featuring a striking natural stone table and an impressive wine fridge. Residents can book the space via the building’s dedicated concierge service or through the integrated building app.

Additional amenities include a cinema room, games room with adjoining teppanyaki barbecue and alfresco space, golf simulator, sunken fire pit, and even a dedicated dog wash bay. Mirvac’s in-house construction arm is tracking toward a mid-2027 completion, delivering what is set to be one of Melbourne’s most comprehensive and impressive residential amenity offerings.

[smartcode_project:default project_id=114216 project_image_fid=361041]

The strong response from buyers to Trielle’s facilities has influenced Mirvac’s broader Melbourne pipeline. At its nearby development, <a href="https://www.apartments.com.au/new-apartments/the-albertine-by-mirvac-melbourne-31-queens-lane-melbourne-vic-3004">The Albertine</a>, located just off St Kilda Road opposite Albert Park Lake, the Mirvac Design team has again placed a strong emphasis on lifestyle amenity, carefully scaled to suit the building’s density.

At The Albertine, health and wellness take centre stage through The Circadian Club, a suite of well-being-focused facilities including a swimming pool, magnesium spa, sauna, cutting-edge gymnasium, and yoga studio, all designed to support residents’ physical and mental health.

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Residents of The Albertine are offered an elevated experience with The Elysian Room, a private dining room located on Level 10. Flowing seamlessly onto The Terrace, this outdoor retreat captures panoramic Melbourne views and is wrapped in lush, ASPECT Studios–designed landscaping of native plants and ferns, forming a serene garden oasis above the city.

Mirvac topped out The Albertine in late 2025 and is targeting completion of the 98-apartment development in mid-2026.

Joel Robinson

Mirvac’s amenity-first approach reshapes apartment living in Melbourne

The first tranche of residents has moved into <a href="https://www.apartments.com.au/new-apartments/highett-common-37-graham-road-highett-vic-3190">Highett Common</a>, Victoria’s first medium-density, Net Zero-targeted masterplanned community in the heart of Bayside.

Developer <a href="https://www.apartments.com.au/developers/sunkin-property-group">Sunkin Property Group</a> has completed the first two buildings, North Lane and Park House, within the landmark 9.3-hectare precinct. Four hectares of the well-connected site have been reserved for public parkland, including one hectare dedicated to a children’s playground and social spaces, and a further three hectares retained as a conservation reserve to protect native species and enhance the local environment.

Sunkin’s construction arm, <a href="https://www.apartments.com.au/builders/sk-construction">SK Construction</a>, is now progressing the next stage of residences as part of the Mews Collection, as the team prepares to launch the most boutique building within the neighbourhood. The latest release, Habitat, comprises just 57 one, two, and three-bedroom apartments, with pricing starting from under $600,000. Designed by <a href="https://www.apartments.com.au/architects/clarke-hopkins-clarke">Clarke Hopkins Clarke</a>, Habitat has been conceived as a refined expression of bayside living, placing nature, community and design longevity at its core.

[smartcode_project:default project_id=108019 project_image_fid=351719]

“Habitat at Highett Common is an exclusive offering meticulously designed to reflect the character of the local Bayside area,” said Scott Jessop, Head of Sales &amp; Marketing at Sunkin Property Group. “It’s a highly considered release within a precinct that continues to gain momentum on every front.”

Connection to nature has guided the architectural response, with apartments oriented to maximise natural light, outlooks and indoor–outdoor flow. Balconies and terraces extend living spaces into the surrounding landscape, reinforcing the project’s strong relationship with its parkland setting.

“Apartments have been designed to maximise this connection to nature from indoor to outdoor spaces through adjacent balconies and terraces, and proximity to public parks and open spaces,” said Clarke Hopkins Clarke Partner Toby Lachlan. “Highett Common as a whole was designed to maximise connection to nature and a Bayside lifestyle, and Habitat is really at the heart of that.”

[smartcode_project:default project_id=108019 project_image_fid=331187]

Habitat also occupies a central social position within the precinct, directly connected to Highett Common’s new library and café. These community amenities have been designed to encourage daily interaction and foster a genuine neighbourhood feel.

Interiors continue the theme of warmth and longevity, with light-filled layouts, timber detailing and carefully selected materials. Buyers can personalise their homes through a range of customisation options, while kitchens act as the centrepiece of each apartment. Options include sculptural or freestanding island benches, paired with Bosch appliances and induction cooktops.

Clarke Hopkins Clarke Associate Interior Designer Michelle Cavicchiolo said the interiors were designed with a timeless sensibility. “The materials, fixtures and fittings have been selected for longevity,” she said. “All of these features, along with functional apartment layouts, contribute to a premium aesthetic.”

[smartcode_project:default project_id=108019 project_image_fid=300055]

Beyond Habitat, residents will enjoy access to a growing suite of shared amenities across Highett Common, including indoor and outdoor pools, a gym, wellness areas, cinema and resident lounge. Highett Station is just two minutes away, providing easy access to Melbourne’s CBD, while the cafés, shops and dining along Highett Road add everyday convenience.

For prospective buyers, the timing is compelling. Off-the-plan purchasers may be eligible for stamp duty savings of up to $85,000, while changes to the First Home Owners Guarantee Scheme from October 2025, including higher price thresholds and the removal of income caps, are expected to broaden access to Bayside living.

“There’s never been a better time to take advantage of our newest stage,” Jessop said. “With a wealth of customisation available, buyers can truly create the home of their dreams in one of Melbourne’s most desirable middle-ring Bayside suburbs.”

[smartcode_project:default project_id=108019 project_image_fid=300066]

The arrival of the first residents has been timed to coincide with the launch of the Highett Common Connect app, reinforcing the precinct’s strong focus on connection and community from day one. Designed to simplify daily life, the app brings building information, shared amenities and community activity into one easy-to-use platform. From booking facilities and receiving building updates to accessing move-in guides, safety procedures and appliance manuals, residents have everything they need at their fingertips.

The app also supports social connection, allowing residents to view and join community events, organise interest groups, and engage through a community hub and marketplace. Practical features such as maintenance reporting, real-time notifications and a shared calendar help streamline everyday living and support a more connected community.

[smartcode_project_cta:default project_id=108019]

Highett Common takes shape as first residents move in

Design-driven apartment developer <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> has unveiled its most prestigious collection of residences at <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, a new nature-led neighbourhood being delivered on an unrepeatable 11,700-square-metre site neighbouring the heritage-listed Rippon Lea Estate.

The latest and final release, The Garden Pavilion, is the jewel of the garden precinct. Comprising just 22 residences, and the largest apartments in the development, the collection is housed within its own low-rise building, one of six buildings across the precinct designed by <a href="https://www.apartments.com.au/interior-designers/woods-bagot">Woods Bagot</a>. The architecture is defined by a tiered form wrapped in cascading greenery, reinforcing the project’s strong connection to its surrounding landscape.

[smartcode_project:default project_id=136535 project_image_fid=288412]

Marking the next chapter in an ongoing collaboration with Milieu, award-winning design studio <a href="https://www.apartments.com.au/interior-designers/flack-studio">Flack Studio</a> have delivered an interior design scheme rich in expressive materials with an intriguing use of colour and meticulous detailing, designed to compliment a considered selection of furnishings and art.&nbsp;

Three-bedroom residences, each with either two or three car spaces, start from $2,145,000 and feature terraces that wrap around the entire apartment. The two four-bedroom penthouses are the crowning jewel of both the Garden Pavilion collection and the wider Elsternwick Gardens neighbourhood.

[smartcode_project:default project_id=136535 project_image_fid=361035]

Priced at $6.75 million, the luxury penthouse includes six private and secure garage spaces, two-and-a-half bathrooms, separate sunrooms, and a feature fireplace in the living room, opening onto a private, landscaped terrace complete with an integrated outdoor kitchen, swimming pool, and sweeping views across the neighbouring Rippon Lea Estate gardens.

Milieu is creating a garden-focused project designed to feel like an extension of the Rippon Lea Gardens, which date back to the early 19th century. Residents will enjoy private, direct access to the gardens via a gated entryway, accessible only by key fob, ensuring the precinct does not become a public thoroughfare. This level of private access is a point of difference unmatched by any other residential project in Melbourne.

[smartcode_project:default project_id=136535 project_image_fid=361034]

The gardens at Elsternwick Gardens have been curated by multi-disciplinary design studio, OCULUS with over 40% of the site dedicated to landscaping and green space.&nbsp; Once completed, the gardens will be maintained by the gardeners of the National Trust, the team responsible for the exquisite adjoining gardens of Rippon Lea Estate. Future residents will also enjoy private access to the neighbouring gardens during their opening hours.&nbsp;

Residents will also have private access to an extensive suite of wellness amenities, including a gym, Pilates and yoga studios, infrared saunas, mineral pools, and a golf simulator. Shared resident lounges, workshops and pet care facilities further enhance the sense of community within the precinct.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Consistent with the broader development, Garden Pavilion is entirely fossil-fuel-free and shaped around passive design principles. Cross-flow ventilation, high levels of insulation, heat pump hot water systems and thermally broken double glazing aim to reduce energy consumption, while electric vehicle infrastructure and a carbon-neutral energy supply reflect Milieu’s commitment to future-focused living. Rainwater harvesting, waste-stream separation and significant planting further reinforce the project’s sustainability credentials.

The Garden Pavilion release follows the success of the first two offerings, Ripponlea Terrace and Gordon Place, where apartments were secured predominantly by local owner-occupiers and downsizers.

Milieu Founder and Managing Director Michael McCormack describes Elsternwick Gardens as “a once-in-a-lifetime opportunity to build something truly special,” pointing to the project’s extensive community engagement and its landscape-led response to the site’s historic character.

Construction commenced last year, with Brady Constructions targeting completion in early 2027.

[smartcode_project_cta:default project_id=136535]

Milieu launches The Garden Pavilion, Elsternwick Gardens’ most prestigious release

Plans have been revealed for the new city centre at Bradfield,&nbsp;offering the first detailed look at how one of the key development sites around the new Western Sydney Aerotropolis could take shape as the city centre evolves.

Project management and construction management firm&nbsp;Creative Vision&nbsp;filed the plans for development on behalf of Bradfield Corporation.

The 20,000 sqm site at 135 Badgerys Creek Road will home a new large-scale residential, commercial and civic precinct designed to anchor early growth in the Bradfield City Centre.

<img alt="First look: Mixed-use development proposed for Bradfield’s future city centre" data-entity-type="file" data-entity-uuid="6716793f-94eb-4897-994f-c7d7c56b87a2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bradfield%20da%201.png?VersionId=UvOngnIxqXO1Q3vtTn5UjB.JKRkZ.Gcd" />

The concept application seeks approval for a mixed-use residential and commercial development comprising multiple buildings arranged around new public spaces, pedestrian connections and internal streets. According to the submitted design documentation, the proposal is intended to establish a "high-density urban core that supports both employment and housing outcomes within the Western Sydney Aerotropolis."

The development includes a substantial residential component, around 400 apartments, alongside commercial uses such as offices, retail and services, with buildings ranging in height to form a defined skyline and a strong street presence along key movement corridors. Full-scale architectural renders included in the design report illustrate a cluster of mid- to high-rise forms with articulated facades, deep setbacks and landscaped podiums.

<img alt="First look: Mixed-use development proposed for Bradfield’s future city centre" data-entity-type="file" data-entity-uuid="1e097164-71ac-406f-87a6-cf49538c31f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bradfield%20da%202.png?VersionId=lFTgCjE2Q9BRewayz4_ksufCPSPjCmM." />

In outlining the urban design intent, the Architectural Design Report by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> notes that the proposal “has been structured to create a connected, walkable precinct that prioritises public domain, legibility and long-term flexibility as Bradfield grows.” The report adds that the arrangement of buildings and open spaces is intended to “support a mix of residential and employment uses while allowing future stages to respond to evolving market and infrastructure conditions.”

Public open space forms a central part of the concept, with landscaped plazas, green links and pedestrian routes designed to integrate with the broader Bradfield City Centre masterplan. The design report states that the open space network is conceived as “a civic framework for the precinct, providing places for gathering, movement and everyday activity rather than residual space between buildings.”

<img alt="First look: Mixed-use development proposed for Bradfield’s future city centre" data-entity-type="file" data-entity-uuid="de475ae8-9856-436c-9003-115c40110c71" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bradfield%20da%203.png?VersionId=RjCNTGInRYsgN.8jKaKjvpZJ.V6ZcWTL" />

The application has been lodged as a State Significant Development, reflecting both the scale of the proposal and its strategic importance within the Aerotropolis. As a concept SSDA, the submission focuses on overall land use, building envelopes, heights and public domain outcomes, with detailed design to be resolved through future stages.

Bradfield’s future city centre revealed ahead of Western Sydney International Airport's 2026 opening 

Luxury developer Martello™ is bringing its Melb​ourne smarts to the Gold Coast, one of the hottest property markets in the country.

<a href="https://www.apartments.com.au/developers/martello">Martello™</a>, proudly a female-led business, has delivered a string of premium residential projects predominantly across Mel​bourne’s blue-chip Bayside suburbs.

While now aiming higher into the sky to be more inline with demand in the Gold Coast, Martello™ will continue to uphold its wellness-first and human-centric development ethos. This extends beyond extensive amenities to encompass architecture, natural light and considered design that supports everyday wellbeing.

<img alt="Martello" data-entity-type="file" data-entity-uuid="711d702d-456f-44ec-88b0-953116d46525" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2_0.png?VersionId=_0HvOgU4oLg3Xairs.j.x9.tjyXoK6iG" />

On expanding operations to the Gold Coast, a spokeswoman said the move represents the next phase of Martello™’s evolution, with Queensland standing out for its “long-term strength, lifestyle appeal and the scale of investment shaping its future.”

“This expansion is a considered move into markets where quality, liveability and long-term value will continue to matter,” she said.

Billions of dollars are currently being invested in transport, urban renewal and community infrastructure across Queensland, strengthening connectivity between coastal precincts, lifestyle hubs and employment centres well ahead of 2032.

“We see Olympic-led infrastructure as a catalyst for lasting change,” she said. “It’s about building places that remain relevant and connected long after the Games.”

Martello™ will kick off its Gold Coast debut with an exclusive collection of 32 full-floor residences on Chevron Island. The prime site is positioned a stone’s throw from Chevron Island Village, and enjoys effortless access to the renowned dining, shopping and lifestyle offerings of Surfers Paradise.

<img alt="Martello" data-entity-type="file" data-entity-uuid="717f9fed-5a5a-4145-8247-a01c126e1328" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_1.png?VersionId=09kHYpLVzcr5thgyDhv7ylWpckDiapF_" />

The developer has added a sought-after project in one of Broadbeach’s most tightly held areas to its portfolio and is actively exploring further opportunities across the Gold Coast.

“Our projects will respond intuitively to coastline, hinterland, topography and local character, with environmental and community considerations embedded throughout the development process,” the spokeswoman said.

“Our approach is always to respond to place rather than impose on it.”

Martello™’s Chevron Island project will officially launch to the market in the coming weeks, marking a major milestone ahead of construction commencing in Q2 2026.

[smartcode_project_cta:default project_id=143932]

Martello™ breaks into booming Gold Coast market with wellness-led living

Construction Work

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GUEST OBSERVER
Construction work, having trended lower in recent years, stabilised over the past half year. The drag from the mining investment downturn has diminished and public works is providing a boost.
In the March quarter 2017, construction work declined by a relatively modest 0.7 percent, following a 0.6 percent gain in the final quarter of 2016 (revised up from -0.2 percent). By comparison, over the year to September 2016, construction work declined by 10.7 percent, to be $5.6bn below a year earlier.
The March quarter 2017 result broadly met expectations, (market median -0.5 percent and Westpac -0.2 percent).
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In NSW and Qld, activity in the most recent quarter appears to have been disrupted by wet weather and flooding.
The wet weather impact is evident in the private home building segment, where work nationally on new dwellings fell by 4.8 percent and renovations were down by 6.3 percent. In NSW, total residential building activity fell by 4.9 percent in Q1, while Qld experienced a sharp 13.6 percent decline. These outcomes are weaker than suggested by earlier strength in approvals and the sizeable pipeline of work.
Home building activity is likely to rebound in the June quarter. Beyond that, there is a looming downturn in home building activity. Notably, private new dwelling approvals in Q1 2017 were 12 percent below the level of a year earlier.
The drag from the mining investment downturn has clearly diminished. Private infrastructure activity surprisingly rose in the March quarter, up 1.8 percent. We still expect some further modest downside over coming quarters.
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In the mining state of WA, where work on gas projects under construction is nearing completion, total infrastructure activity is declining at a slower rate. Over the past half year, work fell by 12 percent, down $0.7bn. For the year prior to that, work fell by 51 percent, a decline of $5.5bn.
Public works is a growth driver as governments commit to additional projects. Public works increased in each of the past seven quarters, up a cumulative 21 percent. That is the longest run of consecutive gains since 2008 to 2010, associated with the post GFC fiscal stimulus package.
Victoria is performing strongly, with construction work in Q1 up 3.4 percent/qtr, 9.2 percent/yr. Strength is evident in building activity, +12 percent/yr, both residential and non-residential.
In NSW, construction work consolidated over the past year, with a Q1 outcome of -1.7 percent/qtr, +0.8 percent/yr. While infrastructure work moved higher, +6.6 percent/yr, building work eased, -2.2 percent/yr, led lower by a pull-back in commercial work.
In Qld, construction work has stabilised, printing at -1.9 percent/qtr, -1.0 percent/yr in Q1. This follows falls of 22 percent in 2014 and 24 percent in 2015 associated with the mining investment downturn. Over the past year, infrastructure work rebounded by almost 14 percent.
In WA, construction work fell by -4.8 percent/qtr, -37.4 percent/yr in Q1.
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<img src="https://www.urban.com.au/images/2017/05/26/v3.png" width="700" height="462">
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.linkedin.com/in/andrew-hanlan-4302223/" target="_blank">here</a>. 
 
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jchancellor-FAypfDUnLy

Construction work stabilised over the past half year: Andrew Hanlan

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GUEST OBSERVER
Construction work, which is trending lower, stabilised in Q4, -0.2 percent, after a surprising sharp fall in Q3, -4.4 percent.
Construction work has been trending lower over recent years as mining investment falls back to more normal levels.
<a href="https://www.propertyobserver.com.au/images/2017/02/23/Screen%20Shot%202017-02-23%20at%208.14.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/23/Screen%20Shot%202017-02-23%20at%208.14.29%20AM.png" alt="">
Within that trend, the second half of 2016 was a volatile half year.  Q3 was particularly weak, -4.4 percent, in part due to bad weather. Q4 saw construction work stabilise at lower levels, -0.2 percent.
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The Q4 result was not greatly different to our expectations (Westpac f/c -0.8 percent and market median +0.5 percent).
The outcome does not alter our views on Q4 GDP, with our forecast at 0.4 percent/qtr, 1.5 percent/yr after a Q3 outcome of -0.5 percent/qtr, 1.8 percent/yr.
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<img src="https://www.urban.com.au/images/2017/02/23/Screen%20Shot%202017-02-23%20at%208.21.23%20AM.png" alt="">
By asset, key points are:
Private infrastructure activity fell further, -3.5 percent, with the mining investment downturn nearing its end. We had expected a sharper fall, -6 percent.  New home building activity advanced, +0.9 percent, consistent with strength in building approvals and a sizeable work pipeline. That follows a surprise 1.9 percent fall in Q3, constrained by bad weather.
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<img src="https://www.urban.com.au/images/2017/02/23/Screen%20Shot%202017-02-23%20at%208.22.20%20AM.png" alt="">
Renovation work rose 2.2 percent, more than reversing a 0.3 percent dip in Q3, consistent with rising approvals and positive fundamentals. 
Private commercial building rose 5.1 percent, after a sharp 10.8% fall in Q3, a decline that was overdue given earlier falls in approvals. More recently, approvals have lifted.
<a href="https://www.propertyobserver.com.au/images/2017/02/23/Screen%20Shot%202017-02-23%20at%208.23.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/23/Screen%20Shot%202017-02-23%20at%208.23.36%20AM.png" alt="">
Public works surprised to the low side, declining by 1.6 percent, whereas we had anticipated a rise of 1.6 percent. Public building work fell sharply, while public infrastructure activity consolidated in the quarter whereas a sizeable and rising work pipeline points to upside.
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.linkedin.com/in/andrew-hanlan-4302223/" target="_blank">here</a>. 
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Current renovation work reverses Q3 dip: Andrew Hanlan

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Construction activity eases: Construction work done in the December quarter fell by 3.6 percent, driven by a 9.5 percent slump in engineering work. Residential work lifted by 2.8 per cent to record highs while commercial building rose 2.5 percent.
Building inflation: Building inflation rose by 1.1 per cent in the December quarter, the biggest quarterly gain in seven years. The annual rate of construction inflation rose from 1 per cent to 1.9 percent – matching the fastest annual growth rate in four years.
Slow wage growth: The wage price index rose by 0.5 percent in the December quarter after a 0.6 percent rise in the September quarter. Annual wage growth eased from 2.3 percent to a record (18-year) low of 2.2 percent.
Industry with fastest annual wage growth: Financial and insurance services (up 2.8 percent) followed by education &amp; training (up 2.6 percent).
Industries with slowest annual wage growth: Administrative and support services (up 1.4 percent), followed by Mining (up 1.5 percent).
The data on construction work is important for builders, building material companies and developers.
What does it all mean?
The ‘baton pass’ from engineering to residential building is clear for all to see. Engineering work continues to recede while home building has hit new highs. Interestingly building (residential and commercial) has surpassed engineering in terms of total work for the first time in five years. The results are even more staggering when you consider that just two years ago engineering work surpassed total building by more than $11 billion. 
The speed of the turnaround has shown up in the patchiness across the national economy and in effect highlights the difficulties faced by policymakers in trying to shore up growth.
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The wages data confirmed that inflation is well and truly in check. However an area to watch over the next couple of quarters is inflationary pressures in the high-flying home building sector. Inflation in the construction sector rose by the 1.1 percent in the December quarter – the fastest quarterly growth rate in seven years. The lack of inflation in the rest of the economy should ensure that for the moment the latest result doesn’t trouble the Reserve Bank.
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Clearly, the job market is improving because the cost of labour has become more affordable for businesses. While low wage growth is good for keeping costs down for businesses, modest real wage growth (wages less prices) makes it more difficult for consumer-focussed businesses.
Real wage growth remains positive – around 0.5 percentage points if judged against “headline” inflation (15-year average 0.7 percentage points) and around 0.2 percentage points when judged against “underlying” inflation.
Today’s data is unlikely to alter the Reserve Banks thinking when it comes to rates. While policymakers may discuss the merits of another rate cut, they are unlikely to pull the trigger on domestic conditions. Rather a rate cut would be driven by changes in the global environment.
What do the figures show?
Construction Work
Construction work done fell by 3.6 per cent in real (inflation-adjusted) terms in the December quarter after sliding by 1.8 percent in the September quarter. Work done is down by 4.3 percent on a year ago. Public sector construction work rose by 1.2 percent in the quarter while private sector activity fell by 4.6 percent.
Construction work fell in five of the states and territories in the December quarter. Leading the falls was Northern Territory (down 17.7 percent), followed by Western Australia (down 9.5 percent), Tasmania (down 4.3 percent), South Australia (down 3.1 percent), and Queensland (down 1.4 percent). Tasmania (down 1.8 percent) and ACT (down 0.6 percent). Construction rose in Victoria (up 1.1 percent), ACT (up 1 percent) and NSW (up 0.2 percent).
Engineering work fell by 9.5 percent in the December quarter and has now fallen almost 25 percent in the past three years. Engineering construction is down by 14.7 percent on a year ago.
Commercial (non-residential) building rose by 2.5 percent in the December quarter to be up 2.2 percent over the year.
Residential building rose by 2.8 percent in the December quarter and was up by 11.5 percent over the year.
Alterations &amp; additions fell by 1.2 percent in the quarter while new residential work rose by 3.3 percent.
The measure of inflation in the construction sector (deflator) rose by 1.1 percent in the December quarter, the biggest gain in 7 years. The annual rate of construction inflation rose from 1 percent to 1.9 percent – matching the fastest annual growth rate in four years. Engineering prices rose by 1.5 per cent in the quarter (up 0.8 percent over the year) while building prices rose by 0.5 percent in the quarter (2.7 percent over the year).
Wage price index
The wage price index rose by 0.5 percent in the December quarter after a 0.6 percent rise in the September.
Annual wage growth eased from 2.3 percent to a record (18-year) low of 2.2 percent.
Private sector wages rose by 0.5 percent in the quarter while  public sector wages also rose by 0.5 percent.
Annual growth of private sector wages fell from 2.1 percent in the September quarter to a record low of 2.0 percent in the December quarter. Public sector wage growth fell from 2.8 percent to 2.6 percent in the December quarter.
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<img src="/images/2016/02/25/Screen%20Shot%202016-02-25%20at%209.13.15%20AM.png" alt="">
 
Including bonuses, wages rose by 0.5 percent in original terms in the December quarter to be up 2.2 percent on a year ago – a record low. Private sector wages including bonuses rose by 0.5 percent in the quarter to be up 2.1 percent on a year ago (or up 2.2 per cent at a total hourly rate).
Industries with fastest annual wage growth: Financial and insurance services (up 2.8 percent), followed by education &amp; training (up 2.6 percent) and Manufacturing and retail trade (both up 2.5 percent).
Industries with slowest annual wage growth: Administrative and support services (up 1.4 percent), followed by Mining (up 1.5 percent), Professional, scientific and technical services and Construction (both up 1.6 percent).
Annual wage growth across States &amp; Territories: NSW, 2.1 percent; Victoria, 2.4 percent; Queensland, 1.9 percent; South Australia, 2.3 percent; Western Australia, 1.8 percent; Tasmania, 2.2 percent; Northern Territory, 2.4 percent; and ACT, 1.6 percent.
What is the importance of the economic data?
The Bureau of Statistics releases quarterly estimates of  Construction work done. The estimates are based on a survey and cover around 85 percent of the construction work done in the period. Revised estimates will be released in coming months. The data is useful largely for historical purposes but the work yet to be done estimates provide an early warning signal of future activity. The residential work figures give a good early guide to the strength of residential investment in the national accounts.
The Wage Price Index has been compiled since September quarter 1997 and measures quarterly changes in wage and salary costs for employees. The index is based on a representative sample of employees, and includes measures of non-wage costs including superannuation, payroll tax, public holiday and workers compensation.
The Wage Price Index is useful in measuring wage pressures in the economy. While strong growth in wages would boost domestic spending, it could also serve to lift employer costs and prices and add to economy-wide inflationary pressures. The wage price index is a measure of hourly pay rates (excluding bonuses).
What are the implications for interest rates and investors?
There is plenty of work in the construction sector. But there are winners and losers across states and industry sectors. Construction activity in Queensland remains a concern. In the past two years, construction work has slumped by 45 percent in Queensland – the most of any state or territory. The lack of construction work in Queensland needs to be addressed by the State Government as it is robbing the economy of momentum.
In contrast to Queensland, construction activity in Victoria hit record highs in the December quarter. Builders, tradespeople and construction firms need to be mobile in the current environment.
The Reserve Bank will be pleased about current trends in construction. Overall activity is correcting as expected and adjusting to the new realities. And while inflation in the home building is higher than in the rest of construction and higher than consumer prices, that is to be expected given soaring activity.
We expect the Reserve Bank to stay on the interest rate sidelines over coming months.
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Tame wages and home building at record highs: Savanth Sebastian

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GUEST OBSERVER
Anyone questioning the health of the economy needs to be pointed in the direction of the home building sector. More homes are being built than ever before, with almost $44 billion of work currently in the pipeline.
There are signs that activity is topping out – but at high levels with a record amount of work to be completed.
Investors should display a healthy degree of caution because there is a huge amount of new housing stock to be absorbed over the next few years. Rental vacancy rates need to be watched closely.
The monthly consumer confidence data has lost relevance given that a weekly version is released with a similar sampling regime. As noted yesterday, confidence has fallen over recent weeks due to financial market volatility and a lower Australian dollar.
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What do the figures show? 
Building starts
Dwelling starts (commencements) rose by 0.5 percent in the September quarter after a 0.2 percent increase in the June quarter. Work started on a record 215,053 new dwellings over the year to September, up 13.4 percent on the previous year.
At present a record 194,252 homes are under construction.
Across Australia, starts in the September quarter rose in five states: NSW (up 2.4 percent); Victoria (down 3.8 percent); Queensland (down 1.0 percent); South Australia (up 1.2 percent); Western Australia (up 1.7 percent); Tasmania (down 20.7 percent); Northern Territory (up 17.4 percent); and the ACT (up 0.7 percent).
In the year to September, dwelling starts were higher than the decade average in all the states &amp; territories except for South Australia (down 2.9 percent). Starts were at record highs in NSW and Victoria.
Dwelling starts in NSW in the year to September were 60.7 per cent above the decade average.
The value of commercial building starts edged up from $28.88 billion to $28.95 billion in the year to September. The annual total of commercial building starts is near 9-year lows.
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Consumer sentiment:
The Westpac/Melbourne Institute index of consumer confidence fell by 3.5 percent in January after falling by 0.8 percent in December. The confidence index is up 4.3 percent on a year ago.
The current conditions index fell by 5.1 percent while the expectations index fell by 2.4 percent.
Four of the five components of the index fell in January:
<ul>
<li>The estimate of family finances compared with a year ago was down by 9.4 percent;</li>
<li>The estimate of family finances over the next year was downby 2.3 percent;</li>
<li>Economic conditions over the next 12 months was down by 5.0 percent;</li>
<li>Economic conditions over the next 5 years was up by 0.39 percent;</li>
<li>The measure on whether it was a good time to buy a major household item was down by 1.7 percent.</li>
</ul>
State sentiment levels: NSW (up 3.3 percent), Victoria (down 1.0 percent), Queensland (down 3.1 percent), Western Australia (up 3.5 percent) and South Australia (down 3.0 percent).
Job market outlook: The Westpac-Melbourne Institute Unemployment Expectations Index rose by 0.7 percent in January but was 5.3 percent below its value a year ago.
The ‘time to buy a dwelling’ index rose by 13.9 percent to the highest reading since May 2015.
What is the importance of the economic data?
Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. According to Melbourne Institute: “The survey of consumer sentiment was first undertaken in 1973 and was conducted on a quarterly basis until 1976, a six-weekly basis from 1976 to 1986, and has been conducted monthly ever since.” Confident consumers may be more inclined to spend, especially on major items.
The Australian Bureau of Statistics releases data on dwelling commencements (starts) each quarter. The figures provide guidance on future construction activity. If construction begins on new houses or apartments, it signifies work for building trades.
What are the implications for interest rates and investors?
Strong home building activity will support the economy over the next 12-18 months. As a result, CommSec expects no change to interest rate settings in coming months.
There could be an ‘ingestion’ problem as residential projects get completed. If investors can’t find tenants, new homes may be put up for sales, depressing home prices.
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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