The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

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

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

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

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

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

Bottega House secures landmark riverfront site in St Lucia 

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

SIERA kicks off construction at Northcliffe tower Exhale

Infrastructure

<html><body>
Choosing a commute that will boost your happiness, fitness and your bank balance seems like a logical option. However, avid cyclist, Christopher Jones believes infrastructure improvement, cyclist safety and storage security are a few areas which need attention before more Australians ditch their cars anytime soon.

<blockquote>
“Politicians and motorists tend to be fearful that by improving cycling infrastructure, it will disadvantage drivers. Instead, safer and convenient cycling infrastructure directly benefits motorists. Not only are there fewer vehicles and less congestion, but the traffic guidance is also clearer and safer for all road users.”
</blockquote>

- Christopher Jones, Bicycle Network Australia Founder

Christopher Jones is the founder and author of Bicycles Network Australia – the country’s leading cycling platform, with 220,000+ monthly readers, and a thriving forum where passionate cyclists can connect and discuss pertinent topics. After noticing a significant trend towards amplified bicycle parking in brand new apartment developments, we reached out to Christopher Jones to find out whether Australian cities are equipped to cater to a reinvigorated cycling movement.

Urban.com.au: Have you noticed a growth in the cycling culture in Australia in recent years? Do you believe this could be due to environmental reasons?

Christopher Jones: Although Australia has a strong heritage in sports cycling, functional cycling is slowly coming back into favour because it can be the most convenient available travel option. The environmental benefits of cycling may still be a secondary benefit for many however consumers who are rethinking their lifestyles in the face of climate change (and taking action to reduce plastic waste or buying local produce), bike riding naturally aligns with the ideals of sustainability. On Bicycles Network Australia, we have recognised an interest in cycling for transport with the interest in the E-bike discussion forum and based on demand to create a new ‘Cargo and Utility Bikes” discussion forum.

U: Do you believe there are sufficient cycle tracks for commuting in Australia?

CJ: The state of cycling infrastructure in Australia is embarrassing when considering the comparatively low costs and wide-reaching benefits. With the exception of Canberra, Australian states/territories allocate <a href="https://theconversation.com/cycling-and-walking-are-short-changed-when-it-comes-to-transport-funding-in-australia-92574">less than 1.5% of their roads budget on cycling infrastructure</a>. In New South Wales the combined budget of cycling and pedestrian infrastructure is about 0.5% of the roads budget and Government doesn’t publicise how the money is actually spent. Without safe and convenient cycling infrastructure and facilities, travel by bike is simply not an option for people and the reliance on private vehicles remains. In Canberra, the spending on bicycle infrastructure is significantly higher than across the rest of the nation and the result is that there is also a higher percentage of people commuting by bike. As there are fewer cars, the roads are less congested and travel across the board (by car, public transport or bike) is more convenient for all. Some municipalities and regions such as Newcastle have however taken initiatives to improve local infrastructure for recreational and commuter bike riders. 

U: What are the best facilities new apartment developments could provide for cyclists?

CJ: Theft is a continuing risk for a bike owner, even when they have access to shared bike-storage rooms or private lockable cages. As a result, security precautions are also important and for apartments, this can include video surveillance, access control (to restrict access), permanent security attachments (such as rings/hoops to which a bike can chain) as well as screen/liners for cages to stop prying eyes from easily seeing personal contents. The adoption of utility bikes is increasing, for example, a family living in a city or town can replace a car with a cargo bike that has space to ferry young children about town and also go shopping. For these type of utility bikes, sufficient parking should be provided. A further consideration is that charging outlets for e-bikes should be provided. Electricity costs are marginal for e-bikes (typically a complete charge for an e-bike is well below 10 cents) so it would be reasonable to provide the e-bike battery charging outlets.

U: Which country do you believe best accommodates cyclists in terms of safety, routes and infrastructure/landscaping?

CJ: Holland and Denmark are world leaders in cycling infrastructure and social integration of cycling. Progressive transport, however, can also be very regional and in the example of San Francisco, the congestion prompted the city to move aggressively towards mixed-modal transport and reduce the reliance on private cars. 

U: You mentioned in an article on <a href="http://bicycles.net.au/" target="_blank">bicycles.net.au</a> that "Infrastructure, and changing driver’s attitudes, are where we think the government needs to begin making a serious effort." What are some changes in government policy and infrastructure improvements that you would like to see made?

CJ: In 2013, the Australian Government published the <a href="https://www.infrastructure.gov.au/infrastructure/pab/active_transport/files/infra1874_mcu_active_travel_report_final.pdf">'Walking, Riding and Access to Public Transport' report</a> which shows that on a federal level they understand the benefits however they have not taken any substantial action.  Most of the transportation infrastructure is guided by State Government policy who traditionally prioritise private vehicles above all else. This needs to shift towards a mixed modal transport focus which is about providing people with accessible, convenient and sustainable transport options. The advantage is that this doesn’t simply take away private cars, rather it introduces other transport options such as improved public transport, pathing the way for electric cars and autonomous cars and building convenient and safe cycling infrastructure. The result is the transport balance is improved and it delivers option and convenience for people travelling.  To accomplish this, State Governments need to significantly increase their budgets for cycling and pedestrian infrastructure. They also need to be accountable and be able to show how the money has been spent. New road developments along with private developments and public facilities need to be evaluated for accessibility and end-of-trip facilities. Local councils need to be supported particularly for creating linked cycling networks the crossed different municipalities. In addition to spending, road user education is a significant challenge as there is a concerning trend of animosity towards bicycle riders; too many drivers do not drive with an awareness of bike riders (e.g. safe passing) and some behave dangerously. Road user education begins with “safe travel” curriculum in schools, continues through to licensing of new drivers and public safety messaging. Law enforcement needs to be improved so that traffic violations can be reported and that the police are proactive in enforcing the laws which protect the safety of bicycle riders. Financial incentives such as tax deductions for bike commuters would also encourage more people to travel by bike. And finally, following the lead of New Zealand, Australia has an untapped potential for cycle recreation and tourism. Increasing the availability and attractiveness of cycling for recreation goes hand-in-hand with functional cycling.

Thank you to Christopher Jones for providing insights and commentary. Lead image credit: Mark Haughton

<hr>
<h2>THE LOW DOWN ON CYCLING</h2>

<ul>
<li>
	The Australian Bicycle Council took a look at the amount spent on cycling per capita in the years 2011 and 2016. They found that while there was no change in NSW, there was a substantial drop in Victoria and rapid increase for Northern Territories and ACT.
	</li>
</ul>
<table border="1" cellpadding="1" cellspacing="1" style="width:500px;"><tbody>
<tr>
<td>STATE</td>
			<td>2011</td>
			<td>2016</td>
		</tr>
<tr>
<td>NSW</td>
			<td>$10</td>
			<td>$10</td>
		</tr>
<tr>
<td>VIC</td>
			<td>$11</td>
			<td>$7</td>
		</tr>
<tr>
<td>QLD</td>
			<td>$15</td>
			<td>$17</td>
		</tr>
<tr>
<td>SA</td>
			<td>$7</td>
			<td>$5</td>
		</tr>
<tr>
<td>WA</td>
			<td>$12</td>
			<td>$14</td>
		</tr>
<tr>
<td>TAS</td>
			<td>$2</td>
			<td>$9</td>
		</tr>
<tr>
<td>NT</td>
			<td>$15</td>
			<td>$36</td>
		</tr>
<tr>
<td>ACT</td>
			<td>$10</td>
			<td>$79</td>
		</tr>
</tbody></table>
Source: <a href="https://theconversation.com/cycling-and-walking-are-short-changed-when-it-comes-to-transport-funding-in-australia-92574">The Conversation</a>

A common reason for a lack of cycling infrastructure investment could be due to the anticipated effort associated with retrofitting our roads to accommodate cycle lanes.

<blockquote>
"Our cities, which have some of the widest roads in the world, are supposedly too difficult to retrofit for walking and cycling. Many older cities overseas have redesigned much narrower streets for active transport."
</blockquote>

- The Conversation, Cycling and walking are short-changed when it comes to transport funding in Australia

<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/bicycles-4245347_1920.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="386" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/bicycles-4245347_1920.jpg?itok=FaJAVDce" width="580"></a></figure><ul>
<li>
	Monash University recently embarked on a <a href="https://www.monash.edu/news/articles/more-than-a-stripe-of-paint-needed-to-keep-cyclists-safe">research study</a> which saw 60 cyclists in Melbourne carry a MetreBox while riding to establish how closely motor vehicles would get to them in passing. Results found that one in every 17 passing events came within one metre of the cyclist, and 124 of the 18,500 passed with less than 60cm. In zones with a speed limit greater than 60kmph, almost one in every three passing cars was considered a 'close' pass. 
	</li>
</ul>
<blockquote>
“We know that vehicles driving closely to cyclists increases how unsafe people feel when riding bikes and acts as a strong barrier to increasing cycling participation."
</blockquote>

- Dr Ben Beck, Monash University's Deputy Head of Prehospital, Emergency and Trauma Research and President of the Australasian Injury Prevention Network 

The study concluded that in order to keep cyclists in Australia safe, there would need to be something more substantial installed as opposed to a strip of paint on the road.

<ul>
<li>
	Cycling two abreast (side by side) is currently legal across the country and <a href="https://au.news.yahoo.com/two-abreast-side-by-side-bicycle-rider-road-rule-motorist-rage-230454606?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAACVnNJDDZuHewfNvlvkBvZK-anqwhdKNPAM1ej_4qMQcQBKPQCjUU-WDX6_UskxJT7-RcVLWgfr53VUhwZCEuLM1tc1OoO3MCtnmJ14REK4kcljN9XzJ-UZLX2H_s8FFGmxmAA0S4wldynupC7yaTt2UPxzTqHML6ZSm6cToMGNH">encouraged by authorities</a>, despite its controversy.
	</li>
	<li>
	Car spaces within an apartment building can add <a href="https://reiv.com.au/policy-resources/latest-news/car-space-adds-more-than-%24100,000-to-apartment-pri">anywhere up to $100,000</a> to the cost of your apartment. While many people specifically require motorised vehicles for a number of reasons, <a href="https://participate.melbourne.vic.gov.au/transportstrategy/car-parking">recent data</a> shows that parking spaces outnumbered vehicles by approximately 40%, with up to one-third vacant residential parking spots.
	</li>
	<li>
	There has also been a <a href="https://s23705.pcdn.co/wp-content/uploads/2019/04/Bicycle-Network_2019-Federal-election-priority-paper-1.pdf">recent request</a> by Bicycle Network to incentivise cycling to work, through the form of government grants. The request asked that commuters receive a government benefit of $5 for every trip made to work via bicycle.
	</li>
	<li>
	Another <a href="https://thenewdaily.com.au/life/wellbeing/2019/07/05/cycling-walking-work/">recent study</a> conducted found that of the 1,121 employees surveyed (based in Melbourne, Sydney and Brisbane) felt more "relaxed, calm, enthusiastic, and satisfied with their commuting trips, and were more productive".
	</li>
</ul>
<h2>Will we see a shift from car-centric infrastructure to a 'complete streets' which incorporate cycling as a main mode of transport?</h2>

As dialogue regarding the safety and inclusivity of cycling is regularly brought up in the mainstream media, it's clear that there is room for improvement and investment. <a href="https://www.theguardian.com/lifeandstyle/2019/jun/24/making-cycling-safer-and-more-appealing">Newcastle Cycling Campaign Chair Sally Watson commented</a> that she wouldn't let her children cycle in the designated lanes on the roads as they are not safe enough and don't give everyone the option of cycling if they wish to commute this way.

<blockquote>
"We need to design cycling infrastructure that works for everyone, not just the 3% of the population who cycle already."
</blockquote>

- Sally Watson, Newcastle Cycling Campaign Chair

The concept of complete streets is an infrastructure design which provides a safe and efficient way for motorists, cyclists and pedestrians to navigate roads in a harmonious way. A great example of this is the Bondi Junction – Waverley Council in NSW engaged placemaking and urban design firm RobertsDay to design a <a href="https://www.robertsday.com.au/places/bondi-junction/">Bondi Junction Complete Streets Strategy</a> that would transform the area from car-centric to people-centric.

<figure><img alt="" class="image-article_full_width_580px" height="317" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/styles/article_full_width_580px/public/pictures/article-images/robertsday-bondi-junction-complete-streets-nsw-1.jpg?itok=eIoXSsPh" title="Bondi Junction Complete Streets NSW. Credit: RobertsDay" width="580"><figcaption>Bondi Junction Complete Streets NSW. Credit: RobertsDay</figcaption></figure>The strategy involved a 20-year masterplan, however, a pop-up demonstration enabled residents to experience what the transformative project could be like. The trial resulted in 60% of retailers reporting an increase in business in the first 3 months, and the project received overwhelming support from the public. 

What infrastructure upgrades would you like to see made in Australia? Share your opinion in the comments.

Lead image credit: Mark Haughton
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Olivia Round

Bicycles Network Australia's Christopher Jones discusses the future of cycle-culture in Australia

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It was quite something to recently see the extent of transport infrastructure completed and under construction along the Northern Road on Sydney's outskirt. 
The works are taking the route into the 21st century for the ever expanding Western Sydney.
The road still has remnants of our pioneer years especially obvious passing the grave stones at Luddenham.
The existing two-lane undivided road, which carries about 16,000 vehicles per day, comes with numerous heritage items including the Luddenham progress hall that began in 1886 as the Protestant Hall.
There's the now closed Vicary's Winery originally part of the explorer Blaxland explorer family estate. 
Next time I will stop to buy some fresh honey from one of the remaining farms.
The upgrading of a 35 kilometre section of The Northern Road between Narellan and South Penrith is a city shaping upgrade which will encourage more housing estates and ought be effective in placing downward pressure on housing prices.
Last weekend saw the rapid demolition of the 40 year old bridge at Orchard Hills.
Some 6,000 tonnes of concrete and steel was removed by the 60 workers who did the job across the long weekend, in three days, rather than the alternative of up to 20 weeks of night closures.
The Northern Road upgrade will provide increased road capacity for expected future growth when complete in 2022.
Investing in safer and more reliable journeys, the Federal Government has committed $1.2 billion The Northern Road Upgrade, with the NSW Government committing $400 million.
This upgrade is part of the Western Sydney Infrastructure Plan, a $3.6 billion program which will deliver 60 kilometres of major road infrastructure upgrades before the opening of the western Sydney airport at Badgerys Creek.
There is a very strong link between infrastructure delivery and the increase in supply of dwellings, and then an improved economy from the ensuing population growth that make their home in the Macarthur region at housing estates such as Oran Park, and the more established Harrington Park which was the Fairfax family farm until its late 1980s approvals. The population of Oran Park Town has progressed from zero to around 7500 in nine years.
There was a 2013 study by the National Housing Supply Council that found investment in transport infrastructure can galvanise dwelling activity, but the infrastructure needs to be of sufficient scale and scope to substantially boost an area’s linkages to major employment nodes.
Albeit not always in perfect unison in terms of delivery.
The study found the nexus between transport projects, housing intensification and job boosting appeared to be much stronger in Melbourne than Sydney.
But that was before the new North West Metro, and all the apartment blocks within walking distance. 
There have already been more than one million customer journeys on the impressive system which only opened three weeks ago.
It's rightly been described as a game changing project, which connects the area by rail like never before, by Premier Gladys Berejiklian, who is now overseeing extending the line from Chatswood, under the Harbour, through the CBD and onto Bankstown.
A recent CBRE report forecast $1.4 billion of suburban development would flow every year for the next decade because of the Sydney metro rail project, with just 15 per cent of these developments officially confirmed.
Sydney needs around 36,000 new dwellings every year up until 2036 based on population growth projections.
We certainly need more projects to avert rising unemployment.
This article was first published in the Saturday Daily Telegraph.
 
 
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jchancellor-FAypfDUnLy

Transportation infrastructure the key to cheaper houses on the fringe and employment growth

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GUEST OBSERVATION
No matter who wins Saturday’s federal election, you can expect to see more cranes on the skyline and hi-viz vests on the roadside.
Both major parties are promising to spend big on transport infrastructure: A$42 billion for the Coalition and A$49 billion for Labor.
However, many of the favoured projects are unlikely to be completed for years or even decades to come.
What’s being promised, and where?
The types of project each party is promising reflect a now-familiar pattern seen in the recent <a href="https://theconversation.com/how-much-will-voters-pay-for-an-early-christmas-eight-charts-that-explain-victorias-transport-election-106782" target="_blank">Victorian</a> and <a href="https://theconversation.com/how-the-nsw-election-promises-on-transport-add-up-112531" target="_blank">New South Wales</a> elections.
The Coalition will outspend Labor on roads; Labor will outspend the Coalition on public transport.
<a href="https://images.theconversation.com/files/274293/original/file-20190514-60554-if4z2a.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/274293/original/file-20190514-60554-if4z2a.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
There’s also a story in the details of where the parties are promising to spend. In Victoria, where the Coalition suffered heavy losses in last October’s state election, <a href="https://www.theage.com.au/federal-election-2019/some-seats-are-better-than-others-coalition-sandbagging-key-electorates-with-taxpayer-funds-20190501-p51j6b" target="_blank">the federal Coalition has been busy “sandbagging”</a> key seats. Until last weekend, the Coalition had been promising much more than Labor.
Announcements on Sunday changed all that. While the Coalition <a href="https://www.theaustralian.com.au/nation/4bn-bid-to-unlock-road-link-box/news-story/1c4254f3a80bc85dc11e068b9bff62a9" target="_blank">upped its commitment to the East West Link to A$4 billion</a>, this was dwarfed by Labor’s <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-05-12/shorten-morrison-pledge-cash-for-melbourne-infrastructure/11105094" target="_blank">A$10 billion pledge for the Suburban Rail Loop</a>. Victoria now stands as the key battleground for transport promises.
Labor is also writing bigger cheques than the Coalition in Queensland, where it <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-04-12/federal-election-queensland-battleground/10975570" target="_blank">hopes to make big gains</a>.
<a href="https://images.theconversation.com/files/274294/original/file-20190514-60549-1rw76kx.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/274294/original/file-20190514-60549-1rw76kx.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
There’s some agreement on the big stuff
Despite their different ideologies and at-risk electorates, there is still much common ground between the parties. Almost one in three of the projects and funding packages that have attracted promises of at least A$50 million are backed by both the Coalition and Labor. Each party has promised almost A$24 billion for these “bilateral” projects – that’s more than half of the Coalition’s total promised transport infrastructure spending and almost half of Labor’s.
The parties are more likely to agree on big projects than small. Bilateral commitments make up almost half of all promises worth at least A$500 million, but less than a third of those below that threshold. For the very largest projects, the level of agreement is somewhere in between – the Coalition and Labor agree on four of the 11 projects attracting commitments of more than A$1 billion.
<a href="https://images.theconversation.com/files/274295/original/file-20190514-60560-esgadm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/274295/original/file-20190514-60560-esgadm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
But voters are forced to make risky choices, again
With so much cash on the table, will these vast riches be spent on the right things?
More money for roads and public transport probably sounds fine to most Australians, whether they’re navigating potholed rural roads, stuck behind trucks on regional highways, drumming the steering wheel in clogged city streets, or calling in late on delayed suburban trains.
But are the projects of national significance and therefore worthy of Commonwealth attention? And can they be relied on to return a benefit larger than their cost?
For too many projects, the answers are no and no. Infrastructure Australia (IA) publishes a <a href="https://www.infrastructureaustralia.gov.au/projects/infrastructure-priority-list.aspx" target="_blank">list of national priorities</a> and evaluates business cases for projects that are “<a href="https://www.infrastructureaustralia.gov.au/about/files/IA-Statement-of-Intent-2017-19.pdf" target="_blank">nationally significant or where Commonwealth funding of A$100 million or more is sought</a>”. Most of the commitments above A$100 million in this campaign do not have IA-approved business cases.
Some projects are under evaluation, such as a new bridge in Nowra on the NSW south coast, but the two parties should have waited for IA’s assessment before committing.
Worse still, many promised projects are not even on the national priority list.
<a href="https://images.theconversation.com/files/274296/original/file-20190514-60541-bw6rss.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/274296/original/file-20190514-60541-bw6rss.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
For projects attracting commitments of less than A$100 million, most are best left to state governments. The Commonwealth should stick to projects that are important to more than one state or are particularly important to the national economy.
Fixing <a href="https://www.barossaherald.com.au/story/5990686/budget-48-million-roundabout-at-kroemers-crossing/" target="_blank">regional</a> and <a href="https://anthonyalbanese.com.au/media-release-labor-will-fix-one-of-adelaides-worst-intersections-saturday-9-march-2019" target="_blank">suburban intersections</a> is important, but it’s hardly of national significance. When federal parties get involved, it starts to smell like pork-barrelling.
Some promises are inexcusable
Throwing taxpayer money at boondoggles is poor governance. Far worse is flagrantly ignoring independent advice and burning cash on projects that we know don’t stack up. Before the 2016 federal election, Grattan Institute reported on the <a href="https://theconversation.com/election-2016-will-the-infrastructure-promises-meet-australias-needs-61140" target="_blank">outrageous Princes Highway duplication between Winchelsea and Colac</a> in Victoria’s Western District. The Coalition promised this project even though IA determined that it would return only eight cents of value for every dollar spent.
Three years on, lessons still need to be learnt. Labor has committed A$50 million this election to the <a href="https://www.macarthuradvertiser.com.au/story/6092086/labor-pledges-50-million-to-finish-maldon-dombarton-rail-link-project/" target="_blank">Maldon-Dombarton rail link</a> in NSW’s Illawarra region. This <a href="https://www.infrastructureaustralia.gov.au/projects/files/Maldon-to-Dombarton-summary.pdf" target="_blank">A$806 million project got the thumbs-down</a> in 2017 from IA, which stated that “the project would not justify its costs and would impose a net cost on the Australian economy”.
In exceptional cases, governments may want to fund projects with costs outweighing benefits on equity grounds, <a href="https://grattan.edu.au/wp-content/uploads/2019/04/916-Commonwealth-Orange-Book-2019.pdf#page=63" target="_blank">such as to provide a minimum level of service for rural communities</a>. It is hard to make that case for a commercial freight rail link.
Every dud project built cannibalises a worthy one. Our politicians should stop donning hardhats and promising infrastructure before they’ve done their homework.<img src="https://counter.theconversation.com/content/115138/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Greg Moran, Senior Associate, Grattan Institute
James Ha, Graduate Associate, Grattan Institute
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/transport-promises-for-election-2019-the-good-the-bad-and-the-downright-ugly-115138" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Transport promises for election 2019: the good, the bad and the downright ugly

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There has been a mish-mash of infrastructure charges across Sydney’s growth areas with some of the highest growth areas being hit with big charges and a poor system for determining costs, according to new research from the Property Council of Australi
The research, originally conducted by Elton Consulting and supplemented with recently released population data from the ABS, claims areas of high growth need a better system for funding infrastructure with the charge placed on one dwelling taking up to 27 mortgage repayments to pay off.
“Sydney is growing and needs infrastructure, but we haven’t got the right funding system for delivering it. Currently communities in high growth areas are paying high infrastructure costs on their homes and this is not sustainable or equitable,” Acting Property Council NSW Executive Director William Power said.
“These areas are quickly developing and so there is often a layer cake effect to the charges – some charges coming from the State Government, others from local government – money drawn from multiple sources for much needed infrastructure.
“The blame for this scenario does not lie with any particular level of government, but rather in a lack of focus and line of site of what is being charged, for what infrastructure and for what community outcomes. This is made worse by the fact that some Councils are trying to administer up to 8 different contribution plans.
“At the moment, no one has a complete view of what is being charged and for what outcome across Greater Sydney and this is resulting in higher charges in some areas than others - It needs a rethink, and our recently elected state government needs to tackle this issue as one of their top priorities.”
The Property Council believes the State Government needs to:
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<li>Conduct an audit and create an online record of all infrastructure charges across Sydney</li>
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<li>Create an infrastructure charges calculator that tells the community or industry what the infrastructure charge on each dwelling will be in a suburb.</li>
</ul>
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<li>Give IPART (Independent Pricing and Regulatory Authority) greater resourcing and remit to review more contribution plans, review and edit the essential infrastructure list and ensure the community is getting the right infarstrcure to support growth from these contributions</li>
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“Planning Reform and infrastructure charges must be the top two priorities for Minister Stokes and thenew Department of Planning and Industry to ensure Sydney is growing well," Mr Power concluded.
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Infrastructure funding for Sydney needs big rethink: Property Council Australia

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EXPERT OBSERVER
We expect industrial assets to outperform Australia's (Aaa stable) broader commercial property market over the next several years. This expectation, in large part, reflects our view that the sector will benefit from a combination of accelerated growth in e-commerce activity and technological innovation that create a wider range of applications for industrial assets, making them more resilient than in previous property cycles. State governments' large infrastructure spending will also improve connectivity and drive valuation growth.
We believe that these trends most benefit A-REITs with large, diversified, well-located industrial portfolios, particularly with large exposure to the tightly held Sydney market, including Goodman Group (Baa1 stable) and its largest fund Goodman Australia Industrial Partnership (GAIP, Baa1 stable) and Charter Hall Group's (Baa1 stable) Charter Hall Prime Industrial Fund (CPIF, Baa1 stable). We also expect that diversified A-REITs, such as Mirvac Group (A3 stable), Stockland Group (A3 stable), Dexus (A3 stable), and GPT Group (A2 stable), will continue to increase their industrial exposure to take advantage of these trends.
Demand for industrial assets will continue to grow
. This is driven by a combination of factors, mainly: (1) the growth in e-commerce and related industries as a result of the increasing popularity of online shopping; (2) technological advances that offer supply-chain efficiencies and create demand for industrial space outside traditional warehousing/storage; (3) large investment programs in public infrastructure that improve transport efficiency and connectivity; and (4) the strong underlying fundamentals of the Australian economy with 26 years of uninterrupted economic growth, rising private consumption and solid labor market fundamentals.
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Total current demand for industrial space exceeds both the supply and long-term demand averages. Major metropolitan areas continue to suffer from a shortage of available industrial zoned land, especially in densely populated areas and around key transport nodes. Industrial transaction volumes continued to trend lower in fiscal year 2018, ended 30 June 2018, (Exhibit 2), reflecting the diminishing availability of quality industrial assets as well as a limited land-supply pipeline. The shortage has been further exacerbated by the active rezoning of industrial land towards alternative uses, particularly residential.
The high demand for industrial assets has benefited A-REITs with industrial exposure as land values appreciated across major metropolitan areas. Sydney values increased by around 50% over the last three years, followed by Melbourne and Brisbane at around 35% and 25%, respectively (Exhibit 3). Higher land prices have put downward pressure on A-REIT cap rates (Exhibit 2). We expect cap rates will likely compress further over the next 6-12 months, as rising rents support asset values.
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Occupancy levels continued to rise for rated A-REITs as tenants rushed to secure lease space before rents increase materially. Occupancy levels were at around 98% for the 12 months ended 30 June 2018 - an all-time high for the industrial sector. We expect occupancy levels to remain at around 97%-98% over the next 12-18 months.
We believe the elevated demand for industrial assets will continue over the next 2-3 years with land prices and rents to rise faster in locations where there is higher population density and higher competition for alternative uses. We expect A-REITs with exposure to the Eastern Seaboard assets, where around 80% of Australia's population is located, to outperform others. This includes companies such as GAIP (100% portfolio), Mirvac (100%), Dexus (99%), Stockland (94%) and CPIF (86%).
Of this group, A-REITs with overweight exposure to Sydney, such as GAIP (84% portfolio), Mirvac (100%) and Stockland (69%), are best positioned to derive above-average levels of rental growth due to the city's superior economic fundamentals, higher take-up levels, and lack of available high quality industrial land relative to other major metropolitan areas. We consider South Sydney to be the most resilient among sub-markets, as the region is supported by major strategic transport gateways (Sydney Airport Finance Company Pty Ltd (Baa1 stable) and Port Botany) and the close proximity to Sydney's wealthy inner-metro region.
At the same time, as major ports on the Eastern Seaboard (Port of Melbourne, Lonsdale Finance Pty Limited, Baa2 stable), Port Botany, Port of Brisbane continue to expand due to the pick-up in the freight activity, we expect higher demand for industrial assets located close to these infrastructure assets.
As large blocks of land become harder to secure in the Sydney area, failing to accommodate the full footprint of international players, we expect tenants to increasingly look for comparable and cheaper options in Melbourne and Brisbane, servicing Sydney out of these cities.
Population growth and solid economic fundamentals will support an acceleration in demand growth for industrial assets over the next several years. Meanwhile, increasing diversification of industrial asset usage and tenants, reflecting e-commerce penetration and technology advancements, will drive underlying demand.
Increased e-commerce activity will remain a major driver of demand for industrial property -- and will reshape the portfolios of A-REITs We consider the growth in e-commerce as one of the major drivers of the significant level of investor demand for industrial assets in Australia, particularly as industries associated with residential construction enter a slowdown. We expect the growth in online shopping to accelerate over the next 2-3 years, which should have a positive spillover effect on demand for industrial space.
We see large untapped potential for the e-commerce sector as the penetration rate in Australia lags those of other developed nations like the US and UK (Exhibit 4). Online as a percentage of total sales in Australia was around 9% in 2018, which lags the US by around four years and the UK by seven years. The US and UK penetration rates are now around 13% and 17%, respectively.
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The growth of online retail in Canada also provides evidence for increasing online penetration in Australia. Both Australia and Canada have similar logistical challenges of servicing densely populated urban areas with large distances between cities. Canada's e-commerce sales as a percentage of total sales was much less than Australia's in 2012, however, it has caught up with Australia since then.
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Demand for space will be driven by the expanding needs of online players such as Amazon.com, Inc. (A3 positive) and Alibaba Group Holding Limited (A1 Stable). A-REIT issuer feedback suggests that e-commerce retailers usually require more space than traditional retailers as they need to stock a greater range of readily available products. Further, we expect supporting industries such as transportation, warehousing, logistics, postal and third-party logistics (3PL) to expand to address the growth in e-commerce.
As consumers continue shifting their purchases online and demand faster delivery at minimized costs, we expect to see an increase in demand for smaller fulfillment centres that are located closer to end-consumers. These centres are used for last-mile delivery and are supported by larger distribution centres located in outer locations. We also believe that increasing land scarcity and surging land prices in densely populated urban areas will increase the usage of multi-storey warehouses, helping to ease the pressure of delivering items to consumers as quickly as possible. Therefore, we expect assets in densely populated areas or with proximity or access to key transport nodes to continue to rise in value.
Demand will also come from brick-and-mortar retailers that will require new distribution space and capabilities as they continue to invest in digital and expand their online offerings. At the same time, as store sales growth lags online growth, we expect physical retailers to continue rationalizing their existing retail footprints, putting pressure on the retail assets of A-REITs.
To capitalise on strong demand, diversified landlords with industrial exposure will likely leverage off their relationships with retail tenants to accommodate the tenants' needs in industrial space. We expect companies like Charter Hall, Stockland, Mirvac, and GPT to benefit the most due to their large exposure to big retail groups like Wesfarmers Limited (A3 stable), Coles Group Limited (Baa1 stable) and Woolworths Group Limited (Baa2 stable).
The growth in e-commerce will most benefit large pure-play industrial A-REITs such as GAIP and CPIF and those diversified players with large industrial exposures such as Stockland and Dexus. Further, we expect other A-REITs to rebalance their portfolios towards the industrial sector over the next 2-3 years, by shifting away from retail as negative sentiment impacts this property segment. We have already seen A-REITs announcing this shift in focus, with Mirvac, Stockland and GPT planning to increase the allocation to the sector. Dexus is partnering with Singaporean sovereign wealth fund GIC to create an AUD2 billion unlisted logistics property trust, seeded with assets from Dexus' portfolio with an active development and acquisition mandate.
Technology and innovation will continue to create additional opportunities for landlords and tenants
We believe that advances in technology are creating additional opportunities for both tenants as well as industrial landlords. Tenants will benefit from utilizing technology, such as big data, cloud software, machine learning, predictive analytics, artificial intelligence, drones, robotics, and autonomous driving, to optimize their operations and create more efficient distribution networks.
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At the same time, technological advancements provide a range of benefits for the industrial A-REITs. Increasingly sophisticated industrial assets can accommodate a wider range of uses, such as e-commerce, data centres, high-tech logistics, health care, “dark stores”,1 etc. Increasing applications of industrial space will improve demand beyond the historical tenant base and provide greater tenant sector diversity, reducing the risk of a correlated downturn among A-REITs' customer base, increasing the pool of potential future tenants to fill vacant space.
This also means the sector is less reliant on traditional “blue-collar” manufacturing industries that face structural decline in Australia, primarily due to high domestic labor costs. We view this diversification as a significant credit positive for industrial A-REITs, providing resilience to the cash flows and earnings through the property cycle.
Large investments in technology by tenants mean longer payback periods for these investments. We view this as positive for landlords as this will make moving facilities less attractive and will translate into longer weighted average lease expiry (WALE) through longer new leases, better retention and reduced vacancy risk. For example, some of the largest Australian retailers like Woolworths and Coles have signed 20-year leases for their respective distribution centres, putting extensive amounts of capital in internal fitouts and automation systems.
This trend for longer leases might moderate the recent declines in WALE across rated REITs, which, in part, was caused by the large amount of leases signed by 3PL companies that sign leases with an average duration of 3-5 years.
We expect A-REITs to also benefit from technological advancements in building and construction as properties now can be constructed more quickly and cheaply, offsetting the rising costs of land. Moreover, the increased application of green technologies such as solar panels should provide A-REITs with an additional source of income from selling energy to the tenants as well as lower their own cost base in an environment of rising energy expenses.
Solid economic conditions and large infrastructure investment on the Eastern Seaboard will support the long-term demand for logistics We expect Australian economic growth, increased trade flows in Asia and large public infrastructure investment on the Eastern Seaboard to support long-term demand for logistics.
Robust economic conditions in Australia with over 26 years of uninterrupted growth will continue to be underpinned by (1) the current outlook for global economy, and particularly Asia, where a lot of Australia's key trade partners are located; (2) solid labor market and wage growth stabilizing; (3) relatively low Australian dollar boosting net exports, and; (4) strong rates of population growth.
Increased trade flows are expected to have a positive impact on industrial property demand, especially for assets that are located close to key infrastructure such as ports, motorways, airports and intermodal terminals.
Public infrastructure spending is expected to accelerate over the next 2-3 years with the value of announced projects at a record high (Exhibit 5). The state governments of New South Wales (Aaa stable), Queensland (Aa1 stable) and Victoria (Aaa stable) plan to increase their respective infrastructure spending programs the most, although we believe the major benefits of this spending for industrial assets will be in the longer term. This will be further supported by the Australian Government's (Aaa stable) commitment to spend more than AUD75 billion over the next 10 years on transport infrastructure across Australia under the National Infrastructure Plan.
<a href="https://www.propertyobserver.com.au/images/2019/2/21/exhibit%205.jpg" target="_blank">Click here</a> to enlarge: 
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<a href="https://www.propertyobserver.com.au/images/2019/2/21/exhibit%206.jpg" target="_blank">Click here</a> to enlarge: 
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We expect A-REITs which focus on NSW and particularly Western Sydney to benefit the most as this is where the largest investments will be made over the forecast period. Spending includes large projects, such as the Western Sydney Airport project (set to open 2026) and Western Sydney Rail. Melbourne will also see some benefits from projects like Fisherman's Bend urban renewal project.
Overall, we think that infrastructure improvements will benefit both the tenants, through improved transport efficiency, connectivity and productivity, as well as the industrial A-REITs that will see valuation uplift for properties located next to the upgraded networks. Further, industrial landlords will see continued demand from industries that are supporting these infrastructure projects.
Moody's provides credit ratings, research, tools and in-depth analysis on the widest possible range of debt market topics.
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Demand for Australian industrial assets growth to be driven by e-commerce and technological innovation

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Investment in public infrastructure in Queensland is being held back by onerous government processes, costs and time, according to a new report.
The Infrastructure Association of Queensland’s report found that investors and developers are attracted to the state’s strong fundamentals, legal frameworks and regulatory environment.
The state’s successful track record of infrastructure projects was another drawcard.
But while 88% of investors said they were ‘highly likely’ or ‘likely’ to invest in Queensland, 93% cited political instability as a barrier to private sector investment.
The report looked at small, medium and large companies involved in Australian infrastructure, including infrastructure owners, fund managers, sovereign wealth funds, banks and consultancies. 
Each respondent said they were already investing in Queensland infrastructure and one third had at least 50% of their investment net worth in Queensland.
Almost a third of participants held global investment portfolios valued at $10 billion or more.
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Source: IAQ
“Infrastructure is a strategic sector for Queensland and its political leaders. As astute investors continue to scan the world for value, we require a regulatory and investment regime that is able to outlive short term government cycles or a political majority,” said IAQ Chief Executive Officer Steve Abson.
“If Queensland wants to be Australia’s most innovative and dynamic trading economy – a magnet for global investment – it’s clear from this research that more efficient government processes should be introduced and a ‘go get em’ attitude must prevail.
“Overwhelmingly, the research found that the private sector wants to play a greater role in providing Queenslanders with critical infrastructure.
“A frequent misconception is that the private sector must receive financial support from the tax-payer in the form of grants, tax relief and guarantees. If people are better informed of how mixed funding sources can deliver infrastructure quicker and without the public debt burden, Queenslanders will embrace it.”
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Political instability the main barrier to investment in Queensland public infrastructure

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<a href="http://petewargent.blogspot.com/2018/10/highway-jobbery">E</a>XPERT OBSERVER
<div>A year ago annual infrastructure project activity was forecast to peak at about $16 billion in 2019.</div>
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<div>But the government has anticipated the slowdown in apartment building and will use borrowed funds to plug the gap. </div>
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<div>Now the peak for infrastructure build is forecast to hit 3 years later and some 40 per cent higher at more than $22 billion across a raft of billion-dollar projects. </div>
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<div><img src="https://3.bp.blogspot.com/-gUfoi6QR7pY/W7m2cmgjQFI/AAAAAAAAsP8/cEKF4XF9oA0t8XZ6D-DMS82o1EX_L8OdACLcBGAs/s640/IA.jpg" width="640" height="416" data-original-height="759" data-original-width="1166"></div>
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<div>High-rise apartment construction, then, is set to be replaced by roads, rails, tunnels...and the odd level crossing removal.</div>
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<div>The obligatory cost overruns will also help spur the economy, of course. The Coalition love is free, and the freeway's long!</div>
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pwargent-M4siyDbqQY

Infrastructure extended by government spending: Pete Wargent

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A new report has identified the New South Wales infrastructure projects that will have the greatest impact on property prices.
The Sydney Light Rail (CBD and South East), the Sydney Metro Northwest and the Sydney Metro City and South West will have the greatest effect on the NSW property market, according to JLL’s new report, NSW economic growth drivers and infrastructure: Assessing the impact on property markets.
JLL’s Head of Research — Australia Andrew Ballantyne said the group looked at the 10 major projects in the NSW infrastructure pipeline.
“Infrastructure changes real estate markets,” he said.
“While all 10 of the major projects will have an impact on the NSW commercial and residential property sectors, these three — and specifically the placement of stations along the routes — will have the greatest effect through reducing travel times and costs, connecting people with job opportunities and connecting products with markets.”
 <img src="https://www.urban.com.au/images/2018/9/28/Picture1.png" alt="" style="font-size: 12.16px;">
Source: JLL
 1. Sydney Light Rail (CBD and South East)
Property close to the light rail stations are likely to increase in value, while the route is also likely to change the mix of retail in the region.
JLL’s Managing Director — NSW Daniel Kernaghan said:
“George Street is going to become a more desirable location for retailers in the luxury and food-and-beverage categories. 
“Improved connectivity within the CBD will mean organisations can look beyond the core CBD to secure lower office rental rates.
“Average A-grade rents on Goulburn Street are 31% lower than for comparable A-grade core CBD assets.” 
2. Sydney Metro (Northwest) 
New stations create dfor the project will stimulate further residential development.
“This project is going to deliver a reliable public transport service to the region which has the highest car ownership levels per household in NSW,” Ballantyne said.
3. Sydney Metro (City and South West)
The project will support the continuing development of the North Sydney’s office market, which is expected to increase to 930,000 square metres of space by 2024.
“Additionally, a revitalised Central Station will act as a regenerative magnet for the southern Sydney CBD, creating a vibrant new mixed-use precinct,” Kernaghan said.
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The NSW infrastructure projects that will impact property prices the most: JLL

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EXPERT OBSERVER
Infrastructure has a great connection to demand and increased dwelling prices and this is particularly the case in Sydney and Melbourne.
However, the allocation of significant funding to infrastructure upgrades in many urban and regional areas in the 2018 Federal Budget will also have a positive impact on dwelling supply.
For example, you can build houses in the west of Sydney to increase supply, and therefore affordability, and still have great access to the CBD provided the infrastructure is good.
Population growth, job creation, an improved economy and good infrastructure would draw more people to an area and therefore increase demand for property, but this then had to be backed up with an increase in dwelling supply.
The Queensland Government was taking significant steps to grow its economy, with Brisbane in the midst of a $15 billion infrastructure boom over the next few years.
And where there is an improved economy and major infrastructure projects and developments in the works, we will see significant long-term capital growth.
As a result, the local property market in Queensland was likely to prosper and the state would continue to attract a high number of interstate migrants in search of affordable housing and employment.
In regional NSW, the State Government has put in place a 20-year vision focusing on connectivity and water security to industry and community leaders in Bathurst and including the $4.2 billion Snowy Hydro Legacy Fund.
The goal is to promote regional development and job creation, unlocking the potential in the region by providing the infrastructure, the services and the support it needs to thrive.
It comes down to undersupply of suitable dwellings that force the prices up and makes them completely unaffordable. But that is not the case in regional NSW where house sizes and blocks are more than adequate for a growing family.
There is also an increasing trend of 'mobile professionals' who were prepared to work from home to maximise lifestyle and avoid the daily city commute.
Doron Peleg is the RiskWise Property Research CEO 
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Infrastructure is the key to housing affordability in our major cities: Doron Peleg

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The State Government yesterday pledged another $562 million toward greater Melbourne's already hefty multibillion-dollar hospital development pipeline.

Contingent upon the incumbent government being re-elected, funds will flow toward an expansion of Frankston Hospital. Initial plans would realise an 11-storey dual-winged hospital next to existing Frankston Hospital facilities that would provide an all-encompassing health services complex.

The expansion includes 120 new beds, two new operating theatres, a maternity ward, obstetrics ward, women’s clinic, children’s ward and special care nursery. Two floors are dedicated to mental health services, with an integrated cancer ward and day clinic set to treat patients who would otherwise travel to Melbourne for care.

Billed by Premier Andrews as "the biggest upgrade to an outer suburban hospital in the state’s history," construction is earmarked to begin in 2020 and would span four years, creating 1700 jobs over the life of the build.

<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/image54_10.jpg" rel="gallery-all" title="Artist impressions of new Frankston Hospital. Image: Committee for Greater Frankston"><img alt="" class="image-article-full-width-580px" height="167" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image54_10.jpg?itok=1h3gRAmB" title="Artist impressions of new Frankston Hospital. Image: Committee for Greater Frankston" width="580"></a>

<figcaption>Artist impressions of new Frankston Hospital. Image: Committee for Greater Frankston</figcaption></figure>Frankston Hospital is the latest in a lengthy line of hospital projects backed by both the public and private purse, all of which are aiming to cater toward a rapidly expanding Melbourne population.

Approximately a dozen major hospital projects are at various stages of development across greater Melbourne, with a quartet currently under construction. Headlining the build list is the $200 million <a href="/developments/st-albans-vic-3021">Joan Kirner Women's and Children's Hospital</a> located adjacent to Sunshine Hospital; designed by Lyons, Lendlease has taken to project to structural completion with lengthy fit outs to come.

Kane Constructions are overseeing <a href="/developments/malvern-vic-3144">Cabrini's Gandel Wing</a> expansion, Built are working on an <a href="/developments/east-melbourne-vic-3002">expanded Epworth Freemasons Hospital</a> in East Melbourne whilst Watpac are overseeing a $135 million expansion of Casey Hospital on Melbourne's fringe.

The projects with approval that are yet to begin construction are also sizeable developments.

Epworth have a <a href="/news/epworth-eastern-rises-to-match-box-hills-booming-populations-needs">60 metre hospital tower</a> planned for Box Hill, and future expansion in mind along Erin Street at Epworth Richmond. Also John Holland has been installed as the head contractor for the new Melbourne Heart Hospital at Clayton; the $543 million project has a completion date of mid 2022 in mind.

<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/image266.jpg" rel="gallery-all" title="Sunshine Hospital and Cabrini Malvern construction during August"><img alt="" class="image-article-full-width-580px" height="251" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image266.jpg?itok=MYlMoVT-" title="Sunshine Hospital and Cabrini Malvern construction during August" width="580"></a>

<figcaption>Sunshine Hospital and Cabrini Malvern construction during August</figcaption></figure>A number of mooted projects are in the pipeline.

Soon to become the medical epicentre of Melbourne's northern suburbs, Epping may play host to as many as three new large-scale hospitals. Northern Hospital is about to <a href="https://www.nh.org.au/northern-hospital-tower-stage-2/">see a new wing come to fruition</a>, Generation Healthcare REIT and Healthe Care Australia are poised to bring a new <a href="https://www.afr.com/real-estate/generation-healthcare-builds-big-at-epping-20170911-gyev2a">$320 million hospital</a> to the suburb whilst Prime Medical Property Group and Riverlee also have hospital development intentions in the area.

Western Health's Footscray Hospital has also been rumoured to be on the more to a new home adjacent to the Victoria University Footscray campus.

The most recent hospital to reach completion was Werribee Mercy Hospital; Multiplex undertook construction works on the Architectus-designed project with a construction value of $66.5 million.

<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/image267.jpg" rel="gallery-all" title="Werribee Mercy Hospital upon completion"><img alt="" class="image-article-full-width-580px" height="261" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image267.jpg?itok=TvzWkcf-" title="Werribee Mercy Hospital upon completion" width="580"></a>

<figcaption>Werribee Mercy Hospital upon completion</figcaption></figure>
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