<p>Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.</p>

<p>A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.</p>

<p>Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.</p>

<p>“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.</p>

<p>Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.</p>

<p>“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.</p>

<p>The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.</p>

<p>It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.</p>

<p>The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.</p>

<p>One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.</p>

<p>Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.</p>

<p>The developer is also exploring the potential for additional affordable housing outcomes.</p>

<p>Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.</p>

<p>Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.</p>

<p>Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.</p>

<p>“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”</p>

<p>Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.</p>

<p>Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.</p>

<p>Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.</p>


Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

<p>Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.</p>

<p>The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.</p>

<p>Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" /></p>

<p>“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.</p>

<p>The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”</p>

<p>The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" /></p>

<p>The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.</p>

<p>According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.</p>

<p>“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.</p>

<p>A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.</p>

<p>Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" /></p>

<p>All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.</p>

<p>The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.</p>


Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

<p>Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.</p>

<p>The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.</p>

<p>Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" /></p>

<p>Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.</p>

<p>The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.</p>

<p>"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.</p>

<p>The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.</p>

<p>The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" /></p>

<p>Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.</p>

<p>Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.</p>


First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

<p>The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.</p>

<p>The proposal will now proceed to a full council vote on June 2.</p>

<p>The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;</p>

<p>The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" /></p>

<p>The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;</p>

<p>Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.</p>

<p>“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.</p>

<p>“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" /></p>

<p>“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.</p>

<p>“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.</p>

<p>“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" /></p>

<p>Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;</p>

<p>Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.</p>

<p>“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.</p>

<p>“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.</p>

<p>“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”</p>


$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

<p>Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.</p>

<p>John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.</p>

<p>The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.</p>

<p>In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.</p>

<p><img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.</p>

<p>DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.</p>

<p>“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.</p>

<p>The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.</p>

<p>“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.</p>

<p>At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.</p>

<p>The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.</p>


First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

Construction

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<p><span>GUEST OBSERVER</span></p>
<p><span>On a state basis, NSW is the standout, with private non-residential building work done rising since late 2012. </span></p>
<p><span>Work done in the retail, office, aged care and entertainment have driven the increase. More recently the construction of new office space has slowed. </span></p>
<p><span>After trending higher since 2011, non-residential building work has declined in Victoria over 2016. The recent decline has been largest in health and warehouses, although this follows strong growth previously. There has been a solid lift in work done in the retail sectors over 2016. Non-residential building work has also risen at a solid pace in Queensland. There has been a particularly large lift in construction in the tourism, education, health and aged-care sectors.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/17/Screen%20Shot%202017-02-17%20at%208.41.55%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="https://www.urban.com.au/images/2017/02/17/Screen%20Shot%202017-02-17%20at%208.41.55%20AM.png" alt=""></span></p>
<p>Non-residential construction remains soft in both WA and SA. In WA, office building has more than halved as the effects of the mining downturn are still playing out. Despite the decline, office space remains oversupplied in Perth with vacancy rates increasing sharply since 2012.</p>
<p>In SA, construction in the commercial and industrial categories has declined over the past two years. However this is partly offset by a lift in health, tourism and education. </p>
<p>In the public sector, non-residential construction has picked up a little in most States.</p>
<p>What’s in the pipeline?</p>
<p>The approvals data also shows us the value of building work in the pipeline. Private sector non-residential approvals have lifted strongly since September 2016 for all the broad categories. Approvals translate into actual work done with different lags depending on factors such as the size of the project and the industry. However most approvals translate to work done with a lag of between three and twelve months. So the recent lift in approvals means stronger building activity in 2017.  </p>
<p>Within commercial approvals both retail &amp; wholesale and office approvals have lifted strongly in the States of NSW, Victoria and QLD. Approvals for building in the “other” category have also picked up driven by rising approvals in accommodation, entertainment, health and aged care. NSW and Victoria are behind the increase, with approvals down in Queensland and flat in WA and SA </p>
<p>Industrial approvals have lifted too, due to rising approvals in Victoria and QLD. In QLD there has been a lift in approvals for factories, warehouses and agriculture. In Victoria approvals for warehouses and agricultural have picked up.</p>
<p>Public sector non-residential approvals have also lifted in recent years. However approvals have turned down a little in recent months. This is largely due a drop in approvals in NSW and VIC </p>
<p>Going further through the pipeline, the building work yet to be done data shows the estimated value of remaining work on buildings that have been started but not yet completed. The amount of building work yet to be done has been broadly steady over 2016.</p>
<p>The pipeline of commercial building work done has fallen as the amount of office building yet to be done has declined sharply. However there has been an offsetting lift in work yet to be done in the industrial and other category. Within the other category work yet to be done in accommodation and aged care have lifted sharply. And education has risen too. In the industrial category, work yet to be done in factories and agriculture has lifted. </p>
<p><em>Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.</em></p>
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jchancellor-FAypfDUnLy

Private non-residential building work a standout in NSW: Gareth Aird

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<p>Construction work is trending lower from historic highs, led lower by the mining investment downturn.</p>
<p>With the construction sector accounting for around 14 percent of the economy this is a material headwind.</p>
<p>Total construction work fell by 4.9 percent in Q3, exceeding expectations (Westpac f/c -1.5 percent and market median -1.6 percent).</p>
<p>Over the past year, construction activity is down by 11.1 percent.</p>
<p>The September quarter outcome will subtract in excess of 0.5ppts from quarterly GDP.</p>
<p>This outcome adds to evidence that the economy hit a soft spot in the middle of 2016, as suggested by soggy labour market conditions.</p>
<p>We expect the economy to emerge from this weakness, with conditions to improve in 2017, supported by recent RBA rate cuts and a spike in commodity prices.</p>
<p>Downside surprises were in housing and public works, both of which are likely to improve in coming quarters given the recent strength of approvals and commencements.</p>
<p>Housing approvals rebounded to hit record highs in 2016, supported by lower rates, and state governments are committing to additional infrastructure projects – particularly for transport.</p>
<p>The private non-residential building cycle has turned down, reflecting earlier weakness in approvals. The drop in activity in the quarter was sharper than anticipated, -12.9 percent vs f/c -1.4 percent.</p>
<p>More recently, non-residential building approvals have begun to lift from their lows, pointing to an emerging stabilisation and potential improvement in 2017.</p>
<p>The decline in private infrastructure was largely as anticipated, -6.6 percent vs f/c -8 percent.</p>
<p>By state, construction work fell across the mainland in Q3 – including falls of 2.1 percent in NSW and 6.9% in Victoria.</p>
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<p>Total construction                –4.9 percent<br><span>Private construction            –6.0 percent<br></span><span>Public construction             –0.2 percent<br></span><span> </span></p>
<p><em>Private - by segment</em></p>
<p>Infrastructure                        –6.6 percent<br><span>Dwelling, new                      –3.2 percent<br></span><span>Dwelling renovations          –0.7 percent<br></span><span>Non-res. building                 –12.9 percent<br></span><span> </span></p>
<p><em>Public - by segment</em></p>
<p>Infrastructure                        +1.4 percent<br><span>Building                                 –5.5 percent</span></p>
<p><em>Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. </em></p>
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Total construction work fell by 4.9 percent in Q3: Westpac's Andrew Hanlan

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<p><span>The Australian Bureau of Statistics has released the annual State Accounts. These provide annual estimates of output growth by state, Gross State Product. Quarterly estimates are not available. </span></p>
<p><span>The accounts for the 2015/16 financial year (July to June) confirm that the growth transition is continuing. The mining states of the north-west, Qld and WA, have slowed as construction work on major projects is progressively completed. The southern states have generally improved, benefitting from lower interest rates and a lower dollar.</span></p>
<p><a href="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.42.51%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p><span>The two most populous states, NSW and Victoria, topped the growth table in 2015/16, with both expanding at an above trend pace. NSW grew by 3.5%, strengthening from 2.6%, a result closely matched by Victoria, 3.3%, up from 2.6%. </span></p>
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<p><span>In South Australia, output growth of 1.9% is a little below trend, while in Tasmania growth was a modest 1.3%. </span></p>
<p>Western Australia slowed further, moderating to 1.9%, down from 3.6% and well below the 5.8% result of two years earlier. Queensland managed a partial rebound, expanding by 2.0%, up from 1.2% in 2014/15 but still down on the 3.3% outcome for 2013/14. </p>
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<p><span>NSW </span></p>
<p><span>The NSW economy grew by 3.5% in 2015/16, up from 2.6%, the strongest result in 16 years, since 1999/00 - just prior to the Sydney Olympics. The outcome was well above the state's long-run average of 2.5% and exceeded the state government's forecast of 2.75%.</span></p>
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<p><span>Construction, real estate and financing together added 1.5ppts to growth in 2015/16, up from 0.9ppts the year prior. Positive spill-over effects contributed to stronger performances across a number of industries, including: public services (with state government revenue boosted by the housing boom); transport; wholesale; manufacturing; and communications. Service exports, benefitting from the sharply lower dollar, were also a growth engine, increasing by 12.5% in 2015/16 and adding 0.6ppts </span>to growth, the strongest result since 1992/93 (excluding the Olympics year of 2000/01).</p>
<p><span>Victoria </span></p>
<p><span>The Victorian economy expanding by 3.3%, up from 2.6%, the fastest pace since 2007/08, before the GFC. That is above trend of 2.8% and exceeded the state government forecast of 3.0%.</span></p>
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<p><span>Construction, real estate and finance together added 1.5ppts to growth in the year, up from 0.9ppts. A strengthening of conditions was evident across: retail; communications; transport; wholesale; and public services. Agriculture and manufacturing were areas of softness, both subtracting 0.2ppts. Service exports, having surged 15.4% in 2014/15, advanced by 4.0%. </span></p>
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<p><span>Western Australia </span></p>
<p><span>In the West, conditions continue to moderate. Output grew by 1.9% in the past year, slowing from 3.6%. That is below trend, 4.3%, but above the state government forecast of 1.0%. </span></p>
<p><span>Construction subtracted 0.4ppts from growth, following a<br> drag of 0.3ppts the year prior, as work on major gas projects<br> is progressively completed. Negative spill-over effects contributed to contractions across a number of industries: transport; wholesale; professional services; admin services; and manufacturing. Mining added 1.9ppts to growth, although that was down from 2.5ppts the year prior and 2.9ppts in 2013/14. </span></p>
<p><span>Queensland </span></p>
<p><span>The Qld economy managed a partial rebound in 2015/16, with output growth recovering to 2.0%, up from 1.0% in 2014/15. The result was still below par, of 4.1%, and fell short of the state government forecast of 3.5%. </span></p>
<p><span>Construction fell at a slower rate with much of the work on gas projects already completed, subtracting 0.4ppts from growth after a chunky 1.7ppts drag in 2014/15. Manufacturing and professional services were areas of weakness, both subtracting 0.2ppts, in part due to negative spill-over effects from the mining downturn. Mining output added 0.6ppts to growth, up from 0.5ppts the previous year, as gas exports expand. Real estate was a bright spot, strengthening to add 0.3ppts to growth as </span>the housing sector responded to lower rates. Public services experienced a strong year, adding 0.4ppts to growth, as the state increased public servant numbers. </p>
<p><a href="/images/2016/11/23/Screen%20Shot%202016-11-23%20at%208.47.30%20AM.png" target="_blank">Click to enlarge</a></p>
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<p><span>South Australia </span></p>
<p><span>The South Australian notched up back-to-back years of moderate growth, expanding by 2.0% in 2014/15 and 1.9% in 2015/16. That is a little below the long-run average of 2.3% but above the state government forecast of 1.5%. </span></p>
<p><span>Construction, finance and real estate together made a solid contribution of 0.6ppts, up from 0.4ppts the year prior.<br></span></p>
<p><span>Mining bounced back, adding 0.2ppts, after a neutral impact in 2014/15. The rate of decline in manufacturing slowed, subtracting 0.1ppts, well below the peak drag of 0.6ptps in 2013/14. Household services added 0.4ppts to growth, broadly matching the 0.5ppts contribution in 2014/15, following a flat 2013/14. Public services had a strong year, added 0.4ppts. </span></p>
<p><span>Tasmania </span></p>
<p><span>Tasmanian output grew for a third year, expanding by 1.3%, after results of 1.2% and 1.5%. While this is still below average, of 2.0%, conditions have improved from the four challenging years 2009/10 to 2012/13 when output contracted by 0.4ppts. </span></p>
<p><span>International exports, after a period of structural adjustment and benefitting from a lower dollar, surged 20%, adding 2.8ppts to growth. Areas of weakness were agriculture and utilities, both subtracting 0.4ppts from growth. There were record low inflows into the hydo system and the unprecedented prolonged outage of the Basslink interconnector with mainland Australia. The 'balancing item', including inter-state trade, subtracted 4.0ppts from growth. </span> </p>
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<p><em>Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. </em></p>
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Lower interest rates boost southern states: Westpac's Andrew Hanlan

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<p>The National Association of Women in Construction (NAWIC) has awarded PhD student Natalie Galea two lucrative scholarships in recognition of her research on gender diversity in the construction sector.</p>
<p>Galea was awarded the 2016 NAWIC International Women’s Day Scholarship, worth $23,000, for research into gender diversity and equity in the construction industry. </p>
<p>She was also awarded the 2016 NAWIC NSW CBRE University Scholarship, worth $3000, which recognises outstanding female students who have the potential to significantly contribute to the future of the construction industry.</p>
<p>Galea, from <a href="https://www.be.unsw.edu.au/" target="_blank">UNSW Built Environment</a>, is researching an industry she is intimately acquainted with. For close to two decades she worked in Australia, the Middle East and North Africa as a construction project manager after completing a <a href="https://www.be.unsw.edu.au/postgraduate-degrees/construction-project-management/about-master-construction-project-management?gclid=CjwKEAjwmMS-BRCm5dn51JLbp1wSJACc61tFzyT2iqH6VmoYEB8iWLXRdnL09xoxRnUzvPrKJ1KxAhoC8Inw_wcB" target="_blank">Building Construction Management </a>degree at UNSW.</p>
<p>Female participation in professional construction roles is only 14 percent, and women leave those positions at a 40 percent higher rate than their male counterparts.</p>
<p>“My PhD aims to understand why females struggle to be appointed, promoted and retained in the Australian construction sector.”</p>
<p>"Female participation in professional construction roles is only 14 percent, and women leave those positions at a 40 percent higher rate than their male counterparts."</p>
<p>Its current status is as ‘the most male dominated sector’ in Australia,” she said.</p>
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jonathanchancellor-7SQnKwU6yx

Gender diversity in the construction sector being studied

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<p>Australian contractor Brookfield Multiplex is dropping Brookfield from its name and rebranding to Multiplex while still remaining a Brookfield company. </p>
<p>Multiplex is owned by Brookfield Business Partners, the flagship listed entity of Canadian private equity firm Brookfield Asset Management.</p>
<p>The construction company was bought by Brookfield Asset Management for more than $4 billion in 2007.</p>
<p>John Flecker, chief executive officer of Multiplex Australasia, said, “This is a time for us to rebrand and to ensure our own unique construction identity both within the Brookfield group and with our external stakeholders as a global construction business.” </p>
<p>“Aside from our name and logo changing, it’s business as usual. There are no operational or organisational changes being made.” </p>
<p>Multiplex was established in 1962, and its projects are worth US$66.2 billion, according to a press release.</p>
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Brookfield Multiplex rebrands to Multiplex, no change in ownership

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<p>The next wave of projects readying for construction will see well in excess of $1 billion worth of additional development across Melbourne. Supplementing recently awarded projects and open construction tenders, a handful of major projects are also seeking permits to begin the construction process.</p>

<p>The most recent site to receive builders signage is CBD Development Group's 288 Albert Street, with LU Simon snaring Brunswick's tallest current development. At 14 levels, 288 Albert Street joins the likes of Reflections and The Burgin Residence (ABD Group), Dux Richmond Hill (Hacer Group) and Meridian (Platinum Constructions) as projects which have builders in place, but have yet to start works onsite.</p>

<p>Combined the above five projects alone will add near enough to 750 new apartments to Melbourne's inner suburbs.</p>

<p>Whilst the above projects are poised to begin construction, a wave of additional projects are at construction tender. Among them are two aged care projects that continue Melbourne's verticalisation of retirement living.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image28_3.jpg" rel="gallery-all" title="Design firm smith+tracey's St Kilda Road development will become reality"><img alt="" class="image-article-full-width-580px" height="407" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image28_3.jpg?itok=f0986tyy" title="Design firm smith+tracey's St Kilda Road development will become reality" width="580"></a>

<figcaption>Architecture firm smith+tracey's St Kilda Road design will become reality</figcaption></figure><p>Jewish Care Victoria and TLC Aged Care are both pursuing their respective projects on St Kilda Road and Queens Parade, Clifton Hill. With both freshly listed as new construction tenders, the end result will be hundreds of new aged care and community care beds, along with various facilities and services supplementing either development.</p>

<p>With its call to construction <a href="/news/construction-beckons-for-queens-place">recently outlined on Urban.com.au</a>, Queens Place Tower 1 headlines the prospective residential builds at tender. At the lower end of the size spectrum a swag of residential projects are also looking to lock away a builder. </p>

<p>Rosslyn Apartments, Harvard Apartments, Piccolo Developments' 228-230 Dorcas Street, Rockley Gardens, 7-15 Little Oxford Street and the John Wardle Architects-designed 424 Malvern Road are all at tender.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/ext1.jpg" rel="gallery-all" title="Rosslyn Apartments. Image: The Buchan Group"><img alt="" class="image-article-full-width-580px" height="325" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/ext1.jpg?itok=jCpz-FKb" title="Rosslyn Apartments. Image: The Buchan Group" width="580"></a>

<figcaption>Rosslyn Apartments. Image: The Buchan Group</figcaption></figure><p>In the student living stakes two noteworthy projects are at tender.</p>

<p>IGLU's 229 Franklin Street is a roughly 30 level tower that will mark the provider's entry into the Melbourne market, whilst Flemington Road is in for another shot of student living development. This is likely in the form of 5-17 Flemington Road, although a number of other student apartment projects are also active in the area.</p>

<p>From a commercial perspective three projects are preparing their tilt at construction, headlined by 161 Collins Street's T&amp;G Building refurbishment which is at tender. Owner Pembroke Real Estate's plans for the historic building involve a Bates Smart-driven overhaul of the famed Melbourne landmark.</p>

<p>Direct off Apartments.com.au's Forum is news that two of the CBD's larger commercial proposals have taken steps toward construction. 405 Bourke Street is subject to a Construction Management Plan submission which is with City of Melbourne and reportedly calls for a 10 month demolition and excavation programme, followed by 27 months of construction.</p>

<p>A Demolition Management Plan is also up for 477 Collins Street, with the Mirvac-backed development inching toward construction. Demolition is slated through to mid 2017, with construction complete in time for accounting firm Deloitte as the initial tenant to take up space by June 2020.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/side-elevation.jpg" rel="gallery-all" title="405 Bourke Street as per the development's website"><img alt="" class="image-article-full-width-580px" height="813" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/side-elevation.jpg?itok=UdkioSBY" title="405 Bourke Street as per the development's website" width="580"></a>

<figcaption>405 Bourke Street as per the development's website</figcaption></figure>
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Billions in development headed toward construction

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<p>It's unprecedented times for Brunswick and surrounding suburbs Brunswick East and Brunswick West. Never before have the trio of postcodes been so popular with Melbourne's apartment builders with 13 separate projects currently under construction.</p>

<p>The yield of apartments from these projects is set to exceed 1,300 dwellings. Brunswick East leads the way with seven projects under construction, followed by Brunswick with four and Brunswick West with two.</p>

<p>Sourcing Apartments.com.au's Project Database, the area is traditionally dominated by medium-sized apartment projects averaging 40-50 dwellings, although the current count of 1,300 apartments under construction is skewed by two large projects which jointly account for approximately 700 apartments under construction.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image40_4.jpg" rel="gallery-all" title="Ettaro and York Brunswick West are underpinning the area's construction progress"><img alt="" class="image-article-full-width-580px" height="221" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image40_4.jpg?itok=te8wrDOg" title="Ettaro and York Brunswick West are underpinning the area's construction progress" width="580"></a>

<figcaption>Ettaro and York Brunswick West are underpinning the area's construction progress</figcaption></figure><p>The largest with 400 plus apartments is Brunswick East's Hayball-designed Ettaro which is rapidly approaching completion at the hands of LU Simon, whilst York Brunswick West has seen works begin on the second phase of the project for developer R.Corporation.</p>

<p>Most recent to begin construction have been The Moreland and Protec Property Group's The Dux located adjacent to Anstey Station. A long time favourite of Apartments.com.au, Anstey Precinct as it has been christened is a pocket of Brunswick dedicated toward urban renewal/higher density living.</p>

<p>Joining The Dux under construction within Anstey Precinct are Hendrix Apartments and 8 Bresse Street, with the much publicised Nightingale Apartments on Florence Street set to begin its build. Post its visit to VCAT and subsequent minor design alterations, Nightingale is now poised to become the latest project within Anstey Precinct to offer "delivery of tangible, meaningful, visitable and assessable built outcomes," following in the footsteps of <a href="/news/is-this-melbournes-best-new-residential-development">The Commons</a>.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_4890.jpg" rel="gallery-all" title="Bensons Property Group's C3 Brunswick"><img alt="" class="image-article-full-width-580px" height="380" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_4890.jpg?itok=kYDuEGLs" title="Bensons Property Group's C3 Brunswick" width="580"></a>

<figcaption>Bensons Property Group's C3 Brunswick</figcaption></figure><p>Further to the 13 projects under construction, Apartments.com.au has identified a further 10 apartment projects set for an imminent construction start. </p>

<p>Among them is Alpha 14 Property Group's Crest on Sydney Road, the aforementioned Nightingale Brunswick and what shapes as Moreland's tallest project to date, Brunswick Heart. Set over 14 levels, site preparation for the RotheLowman-designed project is complete with a builder set to take site possession shortly.</p>

<p>These 10 projects combined will add another 800 plus dwellings to Moreland's ballooning apartment market.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_4929.jpg" rel="gallery-all" title="MakShaq's 8 Lygon is moving toward construction"><img alt="" class="image-article-full-width-580px" height="386" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_4929.jpg?itok=RF9uPV-H" title="MakShaq's 8 Lygon is moving toward construction" width="580"></a>

<figcaption>MakShaq's 8 Lygon is moving toward construction</figcaption></figure><p>Whilst construction and projects at sales remain robust within Brunswick and its adjoining suburbs, there are signs that the surge in apartments may be slowing.</p>

<p>2016 has brought a discernible slow down in the number of larger apartment projects filtering through Moreland City Council's online planning platform. Indeed scant few new listing within Moreland have been added to the Apartments.com.au Project Database in recent times as developers seem content in delivering on the healthy backlog of approved projects.</p>

<p>With the persistent talk of market oversupply, the easing of projects at planning could also be a sign that developers have cooled on the Brunswick market somewhat given it has traditionally been the domain of smaller sized apartments aimed toward investors and singles/couples.</p>
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Unprecedented times for Brunswick's apartment growth, but can it last?

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<div class="page" title="Page 1">GUEST OBSERVER</div>
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<div class="page" title="Page 1">New business spending on buildings and equipment fell by 5.2 percent in the March quarter after an upwardly-revised 1.8 percent lift in the December quarter.</div>
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<div class="page" title="Page 1">Spending on buildings fell by 7.9 per cent in the quarter while spending on equipment fell by 0.6 percent. Investment is down 15.4 percent over the year.</div>
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<br>Best lift in spending plans in nine years:<strong> </strong>The sixth estimate for investment in 2015/16 is $126.82 billion, up 2.9 percent on the fifth estimate (December quarter) and the biggest upward revision in almost a decade.</div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1">Expected business investment in 2016/17: The second estimate of investment in 2016/17 is $89.2 billion, up 6.3 per cent on the first estimate and the second best lift for an equivalent period in eight years.</div>
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<br>Sectors:</div>
<div class="page" title="Page 1">Mining investment fell by 12.0 percent in the March quarter (seventh straight decline), while manufacturing spending fell by 10.3 pe cent but spending by “other selected industries” rose by 1.8 percent.</div>
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<div class="page" title="Page 1"> The investment data is important for companies in mining services, construction, transport and other industrial sectors.</div>
<div class="page" title="Page 1"> </div>
<div class="page" title="Page 1"> What does it all mean?<br><p>The unwinding of the mining construction boom is proceeding to plan. New investment in the mining sector is continuing to ease as the sector moves from the construction phase to production. Essentially new production capacity had to be put in place.</p>
<p>That has happened, and now businesses are going about the job of shipping higher volumes of iron ore, coal, gold and gas to other parts of the world.</p>
<p>Investment outside mining and manufacturing continues to lift although it is by no means going gangbusters. Over the past six months, investment outside of mining and manufacturing has lifted by over seven per cent. As the Reserve Bank Governor noted this week, what is required in Australia is more innovation and risk taking.</p>
<p>The encouraging aspect of the latest investment report is the upgrade to spending plans. Investment plans for the current year were revised up when they are usually revised down at this time of the year.</p>
<p>And the near 3 per cent  upgrade in the quarter was the best in almost a decade. At  the same time the coming year’s investments plans were lifted by more than 6 percent.</p>
<p>You would expect that the budget measures for small and medium-sized businesses will further lift investment plans in the coming year.</p>
Investment in Queensland continues to slump, hitting 6- year lows. By contrast NSW investment is at 4-year highs.</div>
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<div class="page" title="Page 1">The unwinding of investment in Queensland is progressing faster than that in Western Australia, which is a surprise. Despite easing over recent years, Western Australia still remains the investment powerhouse in Australia with investment spending more than 50 per cent higher than second-placed NSW.</div>
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<p><span>What do the figures show? </span></p>
Private business investment</div>
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<br>Overall: New business spending on buildings and equipment fell by 5.2 percent in the March quarter after an upwardly-revised 1.8 percent lift in the December quarter.</div>
<div class="column"> </div>
<div class="column">Spending on buildings fell by 7.9 percent in the quarter while spending on equipment fell by 0.6 per cent. Investment is down 15.4 percent over the year with buildings down by 18.8 percent while equipment is down by 9.2 percent.</div>
<div class="column">
<br>Sectors:</div>
<div class="column">Mining investment fell by 12.0 per cent in the March quarter (seventh straight decline), while manufacturing spending fell by 10.3 per cent but spending by “other selected industries” rose by 1.8 per cent after a 5.3 per cent increase in the December quarter.</div>
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<br>States:</div>
<div class="column">In seasonally adjusted terms investment rose in just three of the eight states and territories in the March quarter. Investment rose the most in Tasmania (up 16.4 per cent to a near 3-year high), followed by NSW (up 3.4 per cent to 4-year highs). Investment fell most in the Northern Territory (down 17.5 per cent), followed by Queensland (down 13.0 per cent), ACT (down 12.5 per cent), Western Australia (down 7.6 per cent), South Australia (down 2.3 per cent) and Victoria (down 0.2 per cent).</div>
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<br>Prices:</div>
<div class="column">The overall deflator for investment goods fell by 0.4 per cent in the March quarter – the first fall in 31⁄2 years. The cost of buildings and structures fell by 0.4 per cent while the cost of equipment fell by 0.6 per cent. Over the year, the cost of investment goods rose by 1.5 per cent – the smallest gain in a year. The cost of buildings rose by 0.5 per cent while the cost of investment equipment rose by 3.1 per cent.</div>
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<br>Forecasts:</div>
<div class="column">The sixth estimate for investment in 2015/16 is $126.82 billion, up 2.9 per cent on the fifth estimate (December quarter) and the biggest upward revision in nine years.</div>
<div class="column"> </div>
<div class="column">The second estimate of investment in 2016/17 is $89.2 billion, up 6.3 per cent on the first estimate and the second best lift for an equivalent period in eight years.</div>
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<div class="column"><a href="/images/2016/05/25/Screen%20Shot%202016-05-26%20at%203.12.05%20PM.png" target="_blank">Click to enlarge</a></div>
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<div class="column">What is the importance of the economic data?</div>
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<p><span></span><span>“Private New Capital Expenditure and Expected Expenditure” </span><span>is released quarterly by the Bureau of Statistics. The figures show both actual and expected spending by businesses on tangible assets such as new buildings, machinery and office equipment. The figures are obtained after sampling 8,000 private business units. </span></p>
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<p><span>What are the implications for interest rates and investors? </span></p>
The Reserve Bank had always expected that the unwinding of the mining construction boom would be an extended process. And it is turning out that way. But investment is lifting outside mining and manufacturing. And businesses are becoming more confident about spending money to boost future prospects for their operations.</div>
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<div class="column">The use of technology and productivity measures are allowing businesses to use equipment a little longer as well as making better use of offices and factories. So one reason that businesses aren’t lifting investment is because they are operating more efficiently. It is all about reducing costs in a low inflation world.</div>
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<div class="column">The Reserve Bank may cut rates again. Indeed we are factoring in a quarter per cent rate cut in August. One reason is because the Reserve Bank hopes that monetary policy still works to boost spending, investment and hiring. But also rate cuts are being considered because Australia is no longer the high inflation country it once was. Rates can fall closer to that in other advanced nations. </div>
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<div class="column"><em>Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</em></div>
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Biggest lift in investment plans in almost a decade: CommSec's Craig James 

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<p>GUEST OBSERVER</p>
<p>Construction work is trending lower from historic highs, led lower by the mining investment downturn.</p>
<p>With the sector accounting for 14 percent of the economy this is a material headwind.</p>
<p><span>Total construction work fell by 2.6 percent in Q1, broadly as we expected (Westpac f/c -2.2 percent and market median -1.5 percent).</span></p>
<p>Over the past year, construction activity is down by 6.7 percent.</p>
<p>In dollar terms, work fell by $1.3bn in the quarter, of which $1.2bn was due to a drop in private infrastructure activity. </p>
<p>The detail was also broadly as anticipated.</p>
<p>Private infrastructure work fell sharply, albeit not as rapidly as in Q4, as work on major mining projects nears completions.</p>
<p>Public infrastructure advanced for a 3rd consecutive quarter as work on key transport projects gets underway.</p>
<p>The new home building boom continues, although the rate of growth is moderating.</p>
<p>The private commercial building cycle has turned, consistent with the 20% drop in approvals over the past couple of years.</p>
<p><span>Details</span></p>
<p>Total construction                –2.6 percent<br><span>Private construction            –3.7 percent<br></span><span>Public construction             +2.5 percent</span></p>
<p><em>Private - by segment</em></p>
<p>Infrastructure                        –6.8 percent<br><span>Dwelling, new                      +1.5 percent<br></span><span>Dwelling renovations          +0.9 percent<br></span><span>Non-res. building                 –7.6 percent</span></p>
<p><em>Public - by segment</em></p>
<p>Infrastructure                        +2.2 percent<br><span>Building                                 +3.5 percent</span></p>
<p><span> </span></p>
<p><span><span>Andrew Hanlan is senior economist for Westpac and can be contacted </span><a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a><span>. </span></span></p>
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Australian Q1 construction work down 2.6 percent: Westpac's Andrew Hanlan

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<p><img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1"></p>
<p>GUEST OBSERVER</p>
<p><em>Another hot and humid day in Sydney tomorrow with a maximum of 32 degrees in the city and 38 in the western suburbs.</em></p>
<p>How many times have we heard that on TV or radio weather reports?</p>
<p>But what would you think about the following forecast?</p>
<p><em><span style="line-height: 1.3em;">Temperatures in Wattle Street, Ultimo, will spike at 37 degrees around 10 am. Further up the hill at Point Street we can expect a top of 40 degrees shortly after 1 pm. Meanwhile, at the Observatory Hill weather station the 3 pm maximum will struggle to pass 32 degrees.</span></em></p>
<p>We are unlikely ever to be able to forecast temperatures to such pinpoint accuracy. Still, the above exercise reflects the very real differences in temperature – and thermal comfort – at the scale of the individual street, indeed individual block, within our cities.</p>
<p>The driver of this surprising variability is the interaction between urban form and the heat energy of the sun. Building heights and materials, width and orientation of streets, and presence or absence of vegetation all affect local temperatures across the city. And if we drive to work, the heat from our vehicle’s engine and exhaust might be adding a degree or two.</p>
<p>Recent media reports have highlighted the bizarre weather patterns in Sydney over January, February and March 2016. Some reports have linked evidence of temperature extremes to urbanisation and the loss of shading and moisture that vegetation provides. This is known as the Urban Heat Island (UHI) effect.</p>
<p>A research collaboration between the UNSW Faculty of Built Environment and the Universities of South Australia and Melbourne has collected further evidence for the highly localised effects of building form, surface materials and street orientation on outdoor microclimate and pedestrian thermal comfort. The aim is to build a solid evidence base to inform design, planning and policy across Australian cities.</p>
<p>Meteorological data collected during the 2015-16 summer in Sydney reveals that air temperatures in the street “canyon” may vary by up to 5℃ from those the Bureau of Meteorology records at Observatory Hill.</p>
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<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/119034/width754/image-20160418-23606-mjsnwt.png" alt=""><span class="attribution"><a class="license" href="https://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
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<p>Even more worrying are the surface temperatures measured on building facades. These may exceed 70℃ in the sun.</p>
<p>The vertical surfaces of multi-storey buildings account for much of the urban surface in contact with the surrounding air. Hotter surface temperatures elevate nearby air temperatures during the day.</p>
<p>Then, due to the thermal mass of typically dense and dark building materials, building facades continue to emit radiant heat well after sunset. This slows the cooling of local outdoor air temperature.</p>
<p>Without night-time cooling, human thermal discomfort is prolonged. Consecutive nights of elevated air temperatures have severe impacts on human health. This includes increasing heat-related mortality and morbidity.</p>
<p>More extreme heat days projected from climate change on top of localised heating due to urban design elevates the health risks from future heatwaves.</p>
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<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/119033/width754/image-20160418-23629-4gkckn.png" alt=""><span class="attribution"><a class="license" href="https://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
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<h2>Urban temperatures vary with design</h2>
<p>Our research sought to quantify the effects of typical urban form and materials on street microclimate and outdoor thermal comfort. We recorded building surface temperatures and ambient air temperatures using a thermal camera and mobile weather station in various locations in metropolitan Sydney.</p>
<p>Preliminary results suggest that business-as-usual architectural and urban design are exacerbating urban heat and creating hotter cities. This is alarming when considering the current and projected population of Australia’s major cities, particularly the growing proportion of vulnerable elderly.</p>
<p>On January 14, 2016 – Sydney’s hottest day that month – the 9AM and 3PM air temperatures recorded at Observatory Hill were 30.8℃ and 32.4℃ respectively.</p>
<p>On the same day, pedestrian-height air temperatures were recorded mid-morning in Wattle Street, Ultimo – 32.34℃ at 9am – and mid-afternoon in Point Street, Pyrmont – 36.34℃ around 3pm. These temperatures in Wattle and Point streets were 1.54℃ and 3.94℃ higher – or up to 12.2 percent greater – than the maximums at Observatory Hill.</p>
<p>Prior studies have reported a significant increase in mortality for every 1℃ rise in air temperatures above a mortality-temperature threshold (typically around 32℃ for Australian cities). This applies particularly for the population aged 65 years and older. Conversely, every degree of cooling has health and economic benefits for urban residents.</p>
<p>The surface temperatures of nearby building facades confirm a potential source of localised heating. The seven-storey, northeast-facing Wattle Street facade recorded a maximum spot temperature of 65℃ and a mean surface temperature of 46℃ around 9AM. The eight-storey, northwest-facing Point Street facade recorded an average surface temperature of 42.4℃ and a spot maximum of 54℃ mid-afternoon.</p>
<p>Notwithstanding measurement uncertainty due to emissivity (how well a material emits heat energy), the higher daytime building facade temperatures suggest an influential relationship with observed near-facade air temperatures.</p>
<p>By taking into account the design drivers – including orientation and solar exposure, material albedo (reflectance) and emissivity, and views of opposite buildings and the sky – building designers can help cool our cities through “cool facades”.</p>
<h2>Buildings hold key to outdoor comfort</h2>
<p>We also calculated the effects of material properties on outdoor air temperatures and thermal comfort for January 14.</p>
<p>Footpath albedos (reflectance) in Wattle Street and Point Street ranged from 0.033 to 0.050 for rough weathered bitumen and smoother grey stone pavers respectively. Superficially the footpath materials appear to be the same colour. However, the rougher bitumen has a lower reflectance and therefore absorbs more solar radiation (and becomes hotter) than the smoother stone tile.</p>
<p>Prior studies have linked surface roughness to reflectance characteristics. The potentially contradictory effects of footpath surface reflectance on air temperatures and thermal comfort are evident in the grey globe thermometer (GGT) measurements.</p>
<p>The GGT measures only radiant heating to which humans are particularly sensitive. Cooler air temperatures are often correlated with higher albedo surfaces, but greater reflectance may increase the radiant load on pedestrians, increasing thermal discomfort.</p>
<p>The GGT 10-minute mean between 8.30AM and 10.30AM in Wattle Street was 36.95℃ and the ten-minute mean air temperature for the same period was 33.70℃. Between 1PM and 2.30PM in Point Street, the GGT ten-minute mean was 43.0℃ and the ten-minute mean air temperature was 38.57℃.</p>
<p>The relative differences between ambient and GGT temperatures are 4.87℃ and 6.05℃. This greater GGT temperature difference confirms the additional radiant heating from the more reflective footpath surface and nearby hot facade.</p>
<p>The conclusion? Weather is not simply what the bureau tells us. As higher urban temperatures occur at the scale in which people actually live – the building, the street, the block – the implications for our health and well-being are profound.</p>
<p>By informing those involved in city planning, management and design about the implications of their design decisions on urban microclimate, this research provides the evidence base for a “cool” urban future.</p>
<p><em><span class="fn author-name" style="line-height: 1.3em;">Paul Osmond is s</span><span style="line-height: 1.3em;">enior lecturer, Sustainable Built Environment, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/paul-osmond-205774" target="_blank">here</a>.</span></em></p>
<p><em><span class="fn author-name" style="line-height: 1.3em;">Jonathan Fox </span><span style="line-height: 1.3em;">PhD Research Candidate, Urban Climates Research, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/jonathan-fox-250999" target="_blank">here</a>.</span></em></p>
<p><em><span style="line-height: 1.3em;">Both are authors for </span>The<span style="line-height: 1.3em;"> Conversation.</span></em></p>
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