Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

Policy

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EXPERT OBSERVATION
In the months following the election I have given careful consideration to the current Statement on the Conduct of Monetary Policy. The Statement records the common understanding of the Government and the Governor of the Reserve Bank on the key aspects of Australia’s monetary policy framework.
The Statement has been issued seven times since 1996 and was last issued in September 2016 with the commencement of Philip Lowe as RBA Governor. During that time, changes to the Statement have typically coincided with either a change of Government or the appointment of a new RBA Governor.
Following careful consideration and consultation between Treasury and the RBA I have concluded that the existing statement is consistent with the Government’s and the RBA’s shared understanding of our monetary policy framework. Not changing the statement provides continuity and consistency at this time of global economic uncertainty. Domestic and global markets can be reassured that Australia remains a stable and predictable place to invest and do business with a proven and effective monetary policy framework.
As I have said on a number of occasions, the current inflation targeting approach has served Australia well, helping underpin our record 28 consecutive years of economic growth.
While inflation has been below the 2-3 per cent band for some time, I recognise that Australia is not alone in experiencing an extended period of low inflation, low unemployment and low interest rates. Over the medium term, inflation is expected to return to the band, consistent with the Statement.
JOSH FRYDENBERG is the Austrlian Treasurer
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Inflation target kept intact in statement on the conduct of monetary policy: Josh Frydenberg

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EXPERT OBSERVER
The employment report for September printed a modest fall in the unemployment rate from 5.26% to 5.20%. Further, the underemployment rate fell from 8.53% to 8.35%.
That will be sufficient to avert another rate cut from the RBA in November.
Westpac has consistently argued that a cut in November was unlikely and the Employment Report strengthened our case.
The October RBA meeting minutes made an important point that had not been part of earlier commentaries:
“Members also discussed the possibility that policy stimulus might be less effective than past experience suggests. They recognised that some transmission channels, such as a pick-up in borrowing or the effect on the home-building sector, may not be operating in the same way as in the past, and that the negative effect of low interest rates on the income and confidence of savers might be more significant. Notwithstanding this, transmission through the exchange rate channel was still considered likely to work effectively, and evidence suggested that the positive effects of lower interest rates on aggregate household cash flows via lower debt repayments was likely to support household spending, given that household interest payments exceed receipts by more than two to one”.
This point is highly relevant for any discussion around the Effective Lower Bound (ELB) for the cash rate in this cycle.
Certainly, with the Board targeting full employment (currently assessed by the RBA as 4.5% compared to the actual of 5.2%)and a move into the 2–3% target zone for underlying inflation, it seems certain that the RBA will reach its ELB before it achieves its objectives.
Westpac’s current forecast (first set out on July 24) is that the ELB is 0.5% and will be reached at the February Board meeting.
However this process is different to the normal process for forecasting the end point of any policy cycle. That forecast typically hinges around forecasting how far below (or above) neutral (or R*) the cash rate will need to be pushed before the authorities can be comfortable of achieving the objectives of full employment and inflation sustainably in the 2–3% target range.
So the policy around choosing the ELB will likely be determined by the trade-off between the expected impact of further cuts and unanticipated consequences of ultra-low interest rates.
The minutes have already highlighted one risk – the impact of ultra-low rates on confidence. That effect was further emphasised by the 5.5% fall in the Westpac-MI Consumer Sentiment Index in October to its lowest level for four years. The survey was conducted during the week of the announcement of the 0.25% cut in the cash rate from 1% to 0.75%.
Read full report <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/October/er20191021BullPolicyDebate.pdf" target="_blank">'Policy debate' (PDF 99kb)</a>
BILL EVANS is the Chief Economist at Westpac
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Policy debate hinges around risks of ultra low interest rates: Bill Evans

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EXPERT OBSERVER
There are two very important aspects to the minutes of the October meeting of the Reserve Bank Board.
The first one relates to the conclusion to the minutes, “the Board would continue to monitor developments, including in the labour market, and was prepared to ease monetary policy further, if needed…”
This language is consistent with the July minutes following the cut at that meeting, “The Board would continue to monitor developments  in the labour market and adjust monetary policy if needed …”.
There was no move in August but this conclusion left the door open.
This compares with the August minutes, where the minutes concluded: “Having eased monetary policy at the previous two meetings, the Board judged it appropriate to assess developments in the global and domestic economies before considering further change to the setting of monetary policy. Members would consider a further easing of monetary policy if the accumulation of additional evidence suggested this was needed to support sustainable growth in the economy and the achievement of the inflation target over time.”
This indicated a clear message that rates would be on hold in September.
However,  consider the September minutes: “Members would assess developments in both the international and domestic economies, including labour market conditions, and would ease monetary policy further if needed…”
This clearly left the door open for a move in October which subsequently eventuated.
We were expecting the conclusion to the October minutes to look like the August conclusion, which would have indicated that the Board intended to pause in November as they gathered more information. That conclusion  was not used, and the conclusion looked like July.
The conclusion in October, “was prepared to ease”, is not as strong as the September conclusion “would ease”. It is  like the July conclusion, no strong commitment and allowing some flexibility.
However, it is surprising that the Board did not choose to close off the option of another move so soon after October.
The second important aspect of these minutes is a very detailed justification of the decision to cut in October and a general argument as to why lower rates still work in Australia. Firstly, the Board noted that it was the level of rates rather than the change that was the important determinant. Holding back rate cuts in anticipation of a negative shock was not the best policy. Instead, it is better to cut ; strengthen the economy immediately if deemed necessary so that the economy would be better placed to absorb a negative shock.
The Board also discussed whether  low interest rates might impact confidence. That was left as an open question, it still saw the transmission through the exchange rate channel working effectively and noted the positive effects of lower interest rates on aggregate household cash flows.( confidence issue is whether households decide to spend the improved cash flow.)
Finally, it noted that asset prices were part of the transmission mechanism of policy, including via encouraging home building. At this stage, it assessed that higher asset prices were unlikely to present a risk to financial stability and members saw only a limited risk of excess borrowing.
There is no doubt that this discussion can be seen as a justification of the decision that was made in October. As we have noted before, central banks will always provide robust arguments to support their decisions. However, these arguments seem to go beyond merely justifying the decision in October and laying the foundation for even lower rates.
There is no discussion at this point as to whether an effective lower bound exists for the cash rate. We do not think we should interpret this discussion as contemplating negative rates or even zero rates.
The commentary on the domestic economy further lowers the RBA’s assessment of the strength of the economy. This could be expected given the decision to cut rates.
In particular, the residential construction downturn was now expected to continue for some time, “the decline in dwelling investment for the June quarter was greater than had been expected a few months earlier”, and “the Bank’s liaison program continued to report weak pre-sales for higher density developments”. Members also noted that conditions in retailing are reported to have been very weak, and there had not been a pick- up in household spending following the tax cuts and cash rate reductions. Employment growth was likely to moderate over the subsequent few quarters.
On the positive side strong exports growth; and public demand was noted, while strong employment growth had boosted growth in labour income.
Unusually, the minutes did not confirm the current forecast that GDP growth in 2020 would be around trend. This might imply that the Bank is preparing to lower its GDP forecast for 2020 when it releases the revised forecasts on November 8.
Conclusion
We were surprised that the Board did not indicate more clearly that it was planning to take some time, given the decision in October, to assess the timing of the next cut. That indication would have been consistent with the wording used in August.
However, the language that is used is similar to July , following the cut at that meeting and, of course, there was no follow up move in August. 
The Board is clearly leaving itself the flexibility to move in November but we believe the hurdle is high and while the minutes leave us with little doubt that another cut is expected we are holding to the view we adopted in July that the next moves would be in October and February.
BILL EVANS is the Chief Economist for Westpac
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The RBA minutes make a strong case for lower rates: Bill Evans

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EXPERT OBSERVATION 
Comments by policy makers and global politics have given market participants many a point to consider.
For Australia, RBA Governor Lowe’s “Economic Update” speech in Armidale on Tuesday was the event of note. Overall, the speech had a cautious and concerned tone over the domestic and global economies respectively. Notably it was recognised that Australian growth has been weaker than anticipated, central to which is the stalling of growth in consumption per capita – highlighted by Governor Lowe as an “unusual outcome at a time when employment is growing strongly”.
While the RBA continues to expect a return to trend growth over the coming year, Governor Lowe added that “there are some obvious risks to this outlook”, and further that, while seeing the economy at a “gentle turning point”, “the strength and durability of this pick-up remains to be seen”. A key risk looking forward for consumption is that “the lift in wages growth looks to have stalled recently”. We would add that, as employment growth slows and participation and population growth remain historically high, the unemployment rate is set to lift, further hindering wages growth. 
On the world economy, concern over the impact of global uncertainties was evident, particularly for manufacturing and business investment. The risk that businesses might “also defer hiring” was emphasised too, as was the significance of central bank responses elsewhere in the world. 
On the latter, for the RBA, as a “small open economy, we have to take the world and global interest rates as we find them” and “if we did seek to ignore these shifts, our exchange rate would appreciate, which, in the current environment, would be unhelpful in terms of achieving both the inflation target and full employment”. 
<a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/40369" target="_blank">Westpac retains our call for an October RBA rate cut,</a> to be followed by another come February 2020. This will leave the cash rate at 0.50%. 
Turning to New Zealand, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/New_Zealand/2019/September_2019/OCR_Review_September_2019.pdf" target="_blank">the RBNZ met this week</a>. Their September decision was as expected, with the cash rate unchanged after August’s 50bp cut. However, a less dovish tone to their communications disappointed the market. Our New Zealand economics team continues to see a November cut as most probable, but there is a clear risk it does not eventuate. A November cut will require negative data surprises between now and then.
For the US, economic signals were mixed this week. New and pending home sales surprised to the upside in August. But home prices continued to decelerate in July, and Conference Board consumer sentiment began to wilt. Mixed messages were also provided by Federal Reserve officials, with Evans emphasising he believed the FOMC had done enough (to see inflation return to their 2.0%yr target) just as September dissenter Bullard continued to call for another 25bp cut by year end.
At this stage, it seems the Committee continues to place their faith in the spending power of the US consumer. <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/40382" target="_blank">We instead believe that GDP growth will slow</a> to and then below trend over the forecast horizon. This view is built on the weakness already evident in business investment feeding through to employment and hence consumption. While some ‘green shoots’ continue to be seen regarding trade, we are a long way from a deal and considerable damage has already been done to the US economy. This week’s developments in Washington regarding a formal impeachment inquiry against President Trump will create yet more uncertainty.
Finally to Europe, the most significant outcome was Germany’s flash manufacturing PMI falling to its lowest level since the GFC in September. German IFO business expectations also deteriorated further in the month, though the view on current conditions edged higher.
It is not surprising then that, in his last Parliamentary testimony before his term ends, ECB President Draghi emphasised that recent data points “do not show convincing signs of a rebound in growth in the near future and [that] the balance of risks to the growth outlook [therefore] remains tilted to the downside”. He went on to state that the “longer the weakness in manufacturing persists, the greater the risks that other sectors of the economy will be affected by the slowdown”.
Global central bankers have already taken decisive steps to ease policy this year. But, very clearly, there is a lot more to consider into year-end – let alone come 2020. 
ANDREW HANLAN is a senior economist for Westpac.
ELLIOT CLARKE is a senior economist at Westpac.
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There is much for Australian and global economic policy makers to consider: Westpac

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GUEST OBSERVATION
Labor is promising a “living wage” rather than a “minimum wage” if elected.
It will ask the Fair Work Commission to first determine what wage would offer a “<a href="https://brendanoconnor.com.au/news/latest-news/labor-will-make-sure-the-minimum-wage-is-a-living-wage/" target="_blank">decent standard of living for families</a>”, and then to determine the time frame over which it should be phased in, taking into account the capacity of businesses to pay, and the potential impact on employment, inflation and the broader economy.
It is selling the idea of what would be a very big increase on the present minimum wage as “good for workers and good for the economy”.
“Consumer spending makes up 60% of the Australian economy,” its employment spokesperson Brendan O'Connor said. “When low-paid workers get a pay rise, they spend it in the local shops and help small businesses. It’s good for everyone.”
The idea harks back to the 1907 <a href="http://worksite.actu.org.au/the-harvester-judgement-and-australias-minimum-wage/" target="_blank">Harvester judgement</a>, in which an arbitration court judge decreed that wages at a Melbourne factory should be based on the cost of living “for a worker and his family”.
To get there from the current bare minimum wage of A$18.93 per hour would almost certainly require increases bigger than the sum of productivity growth and inflation, which are running at a combined annual rate of around 3%.
Unacknowledged by Labor in spruiking the policy this week was the fallacy of its consumer spending argument, the cost of the proposal to jobs, and the likelihood that it won’t much help many of the people who need it.
The false increased spending argument
One of the claimed benefits of a living wage is that employees will spend most of their extra income, resulting in large increases in national spending, national income, and even the tax take.
An implicit assumption is that the extra money comes “as manna from heaven” with no second-round effects.
But given that other labour costs won’t come down (it is hard to see executive pay being cut), the labour cost for each affected business will climb, pushing down returns to the providers of capital, including the returns to shareholders and small business owners.
With lower returns, less capital will be put up to invest.
Where businesses can, they will pass on the increased costs not matched by increased productivity by increasing prices.
They will get away with it unless they face competition from imports or other exporters.
Where import competitors and exporters face international competition, they will reduce output. In turn, the greater amount of money sent out of the country will eventually push down the Australian dollar, pushing up the Australian dollar price of import and export products.
In the short term, the increases in prices of goods and services will cut the purchasing power of the wage increase. In the longer term, it might create a vicious cycle of wage and price hikes, with adverse economic consequences.
The bad news on jobs
It is well established that wage increases above the rate of productivity growth plus inflation lead to less employment than there would otherwise be, in both the number of employees and the hours worked per employee.
Labour costs are a major expense for most businesses.
In response to higher labour costs, many employers will choose less labour-intensive ways of making their products. The large and rapid wage increases in the mid-1970s and early 1980s resulted in sharp reductions in employment. In contrast, the recent low rates of labour cost increases have helped drive significant increases in employment and a fall in unemployment.
With the Australian economy facing a likely slowdown over the next year or two, a large increase in wages might be particularly poorly timed.
The false hope for those most in need
Universal education and health care, and the redistribution of income via social security payments funded by a progressive income tax, are the most direct and effective ways to fight household poverty.
The world today is very different to the world of the Harvester case in 1907. Then, most workers were in full-time employment and needed a living wage to support a family. Now, about a third are employed part-time. Redistribution via the tax and payments system is how we support families who need it.
A higher minimum or “living wage” would provide minimal assistance to some on low incomes, and would lift the incomes of many others not generally considered in need of support.
Many of those below the poverty line who are only employed part-time or not at all would not be lifted out of poverty. A higher living wage would provide more to those already in full-time jobs than it would to part-time workers.
And it would provide more to low-wage employees who are members of high-income families, who probably shouldn’t be our first concern.
We can do more more directly to alleviate poverty by reforming the income tax and social security systems. They are specifically designed to redistribute income according to need.
We should start by reducing income tax on low earnings, automatically indexing tax brackets, and increasing Newstart.<img src="https://counter.theconversation.com/content/114359/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
John Freebairn, Professor, Department of Economics, University of Melbourne
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/the-false-hope-offered-by-talk-of-a-living-wage-114359" target="_blank">original article</a>.
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The false hope offered by talk of a living wage: John Freebairn

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GUEST OBSERVATION
One of the most important lessons to come out of last week’s banking royal commission is one of the least likely to grab attention, certainly not in the way <a href="https://theconversation.com/defence-mechanisms-why-nab-chairman-ken-henry-lost-his-job-111182" target="_blank">the resignation of NAB chair Ken Henry did</a>.
It’s that, in the view of Royal Commissioner Kenneth Hayne, when all is said and done the complex patchwork of rules that regulate financial institutions can be boiled down to six simple requirements:
<ul>
<li>
obey the law
</li>
<li>
do not mislead or deceive
</li>
<li>
act fairly
</li>
<li>
provide services that are fit for purpose
</li>
<li>
deliver services with reasonable care and skill, and
</li>
<li>
when acting for another, act in their best interests
</li>
</ul>
Yet, under our current law, these six principles are expressed in different terms in multiple pieces of legislation that run to thousands of pages and even more regulations, at both state and federal levels.
The labyrinth is arguably unnavigable for even sophisticated parties with access to good legal advice.
It wholly fails as a way of communicating the law to ordinary people, the businesses and citizens who are bank customers. It also provides an endless supply of “stall and evade” opportunities for wrongdoers who can clog up the courts with technical and strategic debates over how to interpret the labyrinth.
Legislative porridge
Even the best-intentioned plaintiff or prosecutor can end up pleading every possible permutation of the law to try and cover all bases.
The inevitable result is to “<a href="https://www.propertyobserver.com.au/http://www.austlii.edu.au/au/cases/cth/FCA/2016/1343" target="_blank">delay the proceeding and increase legal expenses</a>”, in the words of a recent Federal Court judgement.
Take the core prohibition of “misleading or deceptive” conduct.
Research conducted at Melbourne Law School finds the same prohibition in slightly different forms, with different requirements, different defences, and different remedies and penalties in <a href="https://financialservices.royalcommission.gov.au/Submissions/Documents/Round-6-written-submissions/POL.1000.2000.0030_0001.pdf" target="_blank">more than 30 pieces of state and federal legislation</a>.
The result has been described by another Federal Court judge as a “<a href="https://www.propertyobserver.com.au/http://www.austlii.edu.au/au/cases/cth/FCA/2012/1028" target="_blank">legislative porridge</a>”.
For many Australians it makes the use of the courts to resolve financial disputes with banks and insurance companies simply not possible.
As a result, we have developed a parallel “soft law”, that doesn’t work badly.
The <a href="https://www.ausbanking.org.au/code/banking-code-of-practice" target="_blank">Banking Code of Practice</a> sets out what banks should do and the <a href="https://www.afca.org.au/make-a-complaint/" target="_blank">Financial Complaints Authority</a> resolves disputes.
The Authority’s guiding principle is as simple as could be – that its decision be <a href="https://www.afca.org.au/public/download.jsp?id=6892" target="_blank">fair in all the circumstances</a>.
<img src="https://images.theconversation.com/files/258063/original/file-20190210-174870-dmhgrs.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""> 
<a class="source" href="https://www.afca.org.au/about-afca/rules-and-guidelines/afcas-operational-guidelines/" target="_blank">Australian Financial Complaints Authority Operational Guidelines.</a>
It raises the question of why the law needs to be so complex when the alternative to it doesn’t need to be.
Simplification has to start somewhere
Hayne wants to simplify the law, but he says the overall task is wider.
It will require examination of how the existing law fits together and identification of the policies given effect by the law’s various provisions. Only once this detailed work is done can decisions be made about how those policies can be given better and simpler legislative effect.
Our Australian Research Council Discovery project on <a href="https://findanexpert.unimelb.edu.au/display/grant103207" target="_blank">Rationalising the Law of Misleading Conduct</a> is undertaking precisely this task for the rules about misleading conduct, trying to track how the various laws and regulations overlap and interact with the ancient, evolving and equally complex general laws governing contracts, torts and equitable principles.
This initial “mapping” task requires sustained and expert attention, so much that it might seem beyond governments’ usual attention-spans.
But, faced with the enormity of the task, Commissioner Hayne doesn’t engage in a counsel of despair. Instead, he picks two easier steps that could be done quickly in order to make a real difference.
First, get rid of exceptions, carve-outs and qualifications. An example he uses is the special treatment given to grandfathered commissions, but carve-outs are everywhere.
Reducing their number and their area of operation is itself a large step towards simplification. Not only that, it leaves less room for “gaming” the system by forcing events or transactions into exceptional boxes not intended to contain them.
We should be clear about what is at stake. The rule of law demands that like cases must be treated alike. It follows that exceptions need to be strongly justified. And they haven’t been. Instead, exceptions and carve-outs reflect the lobbying of powerful industry groups concerned to preserve their own self-interest. And in some cases a failure on the part of the drafters to understand how the regime as a whole fits together and works.
The second step is to draw explicit connections in the legislation between the particular rules that are made and the fundamental principles to which they are intended to give effect.
Drawing that connection will have three consequences. It will explain to the regulated community (and the regulator) why the rule is there and, at the same time, reinforce the importance of the relevant fundamental norm of conduct. Not only that, drawing this explicit connection will put beyond doubt the purpose that the relevant rule is intended to achieve.
But a serious concern remains: how to do it without complicating the law further.
It might be time to take the leap and go back to basics: to reduce the legislation to the core principles and leave the detailed explanation of how they work in practice to “soft law” guidelines.
On how this might look, see our contribution <a href="http://press-files.anu.edu.au/downloads/press/n2641/pdf/ch27.pdf" target="_blank">Statutory interpretation and the critical role of soft law guidelines in developing a coherent law of remedies in Australia</a> in R Levy et al (eds) “New Directions for Law in Australia: Essays in Contemporary Law Reform”.<img src="https://counter.theconversation.com/content/110509/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Elise Bant is Professor of Law, University of Melbourne
Jeannie Marie Paterson is Professor, University of Melbourne
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/understanding-hayne-why-less-is-more-110509" target="_blank">original article</a>.
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Understanding Hayne: Why less is more when it comes to simplifying banking law

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GUEST OBSERVATION
Transport, mobility and congestion continue to be <a href="https://theconversation.com/our-new-pm-wants-to-bust-congestion-here-are-four-ways-he-could-do-that-102249" target="_blank">hotly debated topics</a> in politics, the media, academia and soon at the <a href="http://www.urbanmotion.com.au" target="_blank">Urban Motion</a> conference in Brisbane. And rightly so.
The Australian Bureau of Statistics counted <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/9309.0" target="_blank">19.2 million registered motor vehicles</a> in Australia as at January 31 2018. While the human population grew by 27% since the turn of the century, vehicle numbers <a href="https://www.theaustralian.com.au/news/inquirer/if-car-ownership-keeps-growing-australians-will-be-outnumbered/news-story/92f65fe440421d9ede7155e895db723c" target="_blank">increased by 43%</a> and continue to grow in all states and territories.
The Australian House of Representatives Standing Committee on Infrastructure, Transport and Cities recently released a comprehensive report, <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House/ITC/DevelopmentofCities/Report" target="_blank">Building Up &amp; Moving Out</a>, on its inquiry into the Australian government’s role in the development of cities. The committee recommends:
"… the Australian Government, in conjunction with State and Territory Governments, undertake the development of transport networks which allow for fast transit between cities and regions, and within cities and regions, with a view to developing a more sustainable pattern of settlement based on the principle of accessibility at a local, regional and national level. The Committee further recommends that the development of a fast rail or high speed rail network connecting the principal urban centres along the east coast of Australia be given priority, with a view to opening up the surrounding regions to urban development."
The committee further recommends the <a href="https://theconversation.com/the-30-minute-city-how-do-we-put-the-political-rhetoric-into-practice-56136" target="_blank">30-minute city</a>, <a href="https://theconversation.com/cycling-and-walking-are-short-changed-when-it-comes-to-transport-funding-in-australia-92574" target="_blank">active transport</a> and a more sustainable urban form (Recommendation 11).
<iframe src="https://www.youtube.com/embed/ciJEHGMtpWc?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe>
Global Mobility Index by the World Economic Forum and MIT Senseable City Lab, showing how people move in 100 cities around the world. Congestion levels calculated using real-time traffic-monitoring data, commuting time and the estimated percentage of trips that could be shared if citizens were willing to wait five minutes to share a trip.
Leading up to the report’s launch, many of the inquiry’s submissions and expert witness accounts stressed the need to arrest urban sprawl and heed well-established research advice. All levels of government often ignore this advice to appease voters, but more roads and more lanes make matters worse.
<a href="https://www.linkedin.com/pulse/transport-lies-opinion-piece-graham-currie-ftse/" target="_blank">Transport research</a> provides clear evidence that increasing road capacity is a shortsighted band-aid that increases car travel. It also promotes driving dependency and ultimately makes congestion worse.
Many of the report’s transport-related aspirations point in the right direction. Yet many of them are not new and come with their own set of challenges.
Proposals to solve Australia’s mobility crisis appear to be dominated by technocentric optimism – a strong belief that new technology and disruptive innovation will somehow make it all better. Contenders for the transport panacea include car-sharing and ride-sharing platforms, electric vehicles, autonomous vehicles, <a href="https://theconversation.com/why-trackless-trams-are-ready-to-replace-light-rail-103690" target="_blank">trackless trams</a> and more efficient traffic flow systems enabled by smart city investments in IoT (Internet of Things) sensors, big data analytics and urban science. Let’s debunk some of this.
More disruption?
The notion of disruptive innovation is often believed to bring about change for the better. One of the most commonly mentioned examples is Uber and similar commercial ride-sharing platforms. They certainly disrupted the established taxi industry. But cabs are no longer their main competitor.
Uber launched the “<a href="https://www.theage.com.au/national/victoria/will-melburnians-dive-into-real-ride-sharing-with-uberpool-20180607-p4zk08" target="_blank">Pool</a>” feature, which optimises routes so more than one rider can share the same car. As a result, the cost per ride now <a href="https://www.theguardian.com/sustainable-business/2017/jan/13/uber-lyft-cars-public-transport-cities-commuting" target="_blank">competes with public transport</a> rather than just cabs. And this risks making inner-city traffic <a href="https://www.washingtonpost.com/news/dr-gridlock/wp/2018/07/25/a-new-study-says-services-like-uberpool-are-making-traffic-worse/" target="_blank">worse</a>.
More driverless cars?
Another often-cited disruptive innovation involves autonomous vehicles and <a href="https://theconversation.com/the-winners-and-losers-in-the-race-for-driverless-cars-63874" target="_blank">driverless cars</a>. While they may come with <a href="https://theconversation.com/driverless-cars-could-create-new-jobs-in-a-welcome-boost-to-australias-motor-industry-89972" target="_blank">economic</a> and <a href="https://www.theiet.org/resources/books/transport/lowcarbmob.cfm" target="_blank">environmental</a> benefits, there are as yet <a href="https://theconversation.com/driverless-vehicles-could-bring-out-the-best-or-worst-in-our-cities-by-transforming-land-use-84127" target="_blank">unresolved issues</a>.
For example, the <a href="https://theconversation.com/of-cats-and-cliffs-the-ethical-dilemmas-of-the-driverless-car-49778" target="_blank">ethics in AI can cost people’s lives</a>, road usage funding and taxation are unclear, and the average car occupancy can drop below one. As a result, without regulatory intervention, self-driving cars will <a href="https://www.nytimes.com/2018/10/27/technology/driverless-cars-congestion" target="_blank">not reduce congestion</a> but <a href="https://www.ptua.org.au/myths/robotcar/" target="_blank">add traffic</a> to the roads.
More efficiency?
Transport offers vast room for improvement, so it is not surprising that optimisation is a low-hanging fruit. The <a href="https://www.ellenmacarthurfoundation.org/publications/growth-within-a-circular-economy-vision-for-a-competitive-europe" target="_blank">Ellen MacArthur Foundation</a> identified significant structural waste not only in fuel tank-to-wheel energy flow but also in road utilisation.
<a href="https://images.theconversation.com/files/242864/original/file-20181030-76413-arqq.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/242864/original/file-20181030-76413-arqq.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.ellenmacarthurfoundation.org/publications/growth-within-a-circular-economy-vision-for-a-competitive-europe" target="_blank">Ellen MacArthur Foundation, Growth Within: a circular economy vision for a competitive Europe</a>, Author provided
Researchers at MIT and ETHZ propose a <a href="https://dusp.mit.edu/transportation/news/death-traffic-light" target="_blank">slot-based intersection</a> that would double the usual capacity and herald the “death of the traffic light”.
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MIT Senseable City Lab has developed slot-based intersections that could replace traditional traffic lights, greatly reducing queues and delays. Sensor-laden vehicles pass through intersections by communicating and remaining at a safe distance from each other, rather than grinding to a halt at the lights.
These efficiency gains are welcome. Yet, considering the ever-increasing demand for mobility, these measures on their own will not solve our mobility crisis.
Wanted: leadership!
What is seldom questioned is the need to travel in the first place. The right to mobility and freedom to move locally and globally are undoubted. But it is worth asking what regulatory instruments and economic shifts can produce sustainable mobility.
Some examples that have started making their way into the mobility debate include the impact of <a href="https://eprints.qut.edu.au/96279/" target="_blank">nomadic work</a> practices on transport demand and distributed <a href="https://eprints.qut.edu.au/116358/" target="_blank">co-working spaces</a> to reduce the need for CBD commutes.
Progressive policy interventions, such as <a href="https://theconversation.com/traffic-congestion-is-there-a-miracle-cure-hint-its-not-roads-42753" target="_blank">road congestion charges</a> and <a href="https://www.theguardian.com/world/2018/feb/14/german-cities-to-trial-free-public-transport-to-cut-pollution" target="_blank">free public transport</a>, lack the backing of political leadership in Australia.
Longer term, there is an urgent need to seriously consider even bolder policy innovation. We can learn from overseas examples, such as the six-hour work day, the four-day work week and the <a href="https://theconversation.com/we-should-create-cities-for-slowing-down-75689" target="_blank">slow city</a> movement, which is more about slowing down the “hamster wheel” of life than traffic. We should also evaluate <a href="https://greenagenda.org.au/2018/06/ecological-human-settlement-theory/" target="_blank">new approaches to human settlement</a> as well as what impact <a href="https://theconversation.com/australians-support-universal-health-care-so-why-not-a-universal-basic-income-91572" target="_blank">universal basic income</a> or <a href="https://www.ucl.ac.uk/bartlett/igp/news/2017/oct/igps-social-prosperity-network-publishes-uks-first-report-universal-basic-services" target="_blank">universal basic services</a> can have on reducing traffic congestion.
There are opportunities to join this debate at the <a href="http://www.urbanmotion.com.au" target="_blank">Urban Motion</a> conference in Brisbane on November 19-20 2018. We also invite participants to support the <a href="http://lowcarbonlivingcrc.com.au/FutureCities" target="_blank">Future Cities CRC</a> bid recently <a href="https://www.minister.industry.gov.au/ministers/karenandrews/media-releases/applicants-shortlisted-deliver-new-industry-focused-research" target="_blank">shortlisted</a> by the Australian government.
<hr>
Marcus Foth, Professor of Urban Informatics, Queensland University of Technology.
This article is based on the presentation “Smart Cities are Slow Cities” at the <a href="http://www.real-world-futures.qut.edu.au/future-living/" target="_blank">QUT Real World Conversation</a> forum on August 2 2018.<img src="https://counter.theconversation.com/content/105959/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
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/smart-mobility-alone-is-no-substitute-for-strong-policy-leadership-105959" target="_blank">original article</a>.
Most transport resources are being used inefficiently. The Canberra Transport Photo shows the road space required to move 69 people using public transport, bicycles and private motor vehicles. <a href="https://www.cyclingpromotion.org/canberra-transport-photo" target="_blank">Cycling Promotion Fund</a>, <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
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Smart mobility alone is no substitute for strong policy leadership: Marcus Foth

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Relic in the sense that 96-102 Franklin Street was an application that dated back prior to the implementation of current planning laws which dictate the shape and feel of inner Melbourne's built form.

The Franklin Street application had originally reached planning during 2015, under the tenure of the previous Minister for Planning. Sought then was a <a href="/news/plus-architectures-shimmering-burbank-house-proposal-revealed">slimline residential tower designed by Plus Architecture</a> for residential developer Burbank.

Plus Architecture's interpretation consisted of a 177 metre, or 57 storey tower. Included were 270 dwellings set closely behind the existing building's historic facade.

<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/franklin2_0.jpg" rel="gallery-all" title="Plus Architecture's Franklin Street proposal is consigned to history"><img alt="" class="image-article-full-width-580px" height="891" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/franklin2_0.jpg?itok=EosoIwX_" title="Plus Architecture's Franklin Street proposal is consigned to history" width="580"></a>

<figcaption>Plus Architecture's Franklin Street proposal is consigned to history</figcaption></figure>Mirroring the sentiment at the time toward planning and development, particularly in the norther reaches of Melbourne's CBD, Burbank's application looked to maximise the built form onsite.

Akin to other projects that have transitioned through the period of planning law upheaval, 96-102 Franklin Street has been redesigned to a point where a planning permit was granted for a considerably altered tower form. Burbank have chosen to further amend the design of the site to a point where Melbourne City Council will preside of the fate of the current application.

The amended tower is less than 25,000 square metres and therefore Melbourne City Council will determine whether the latest Peddle Thorp-designed version will grace Melbourne's skyline. Peddle Thorp was also responsible for the design of Burbank's high density Mosaic Living project in Dandenong.

96-102 Franklin Street in its shortened form is now expected to include 26 offices tenancies across floors one to nine, with the balance of the 22 storey tower including 72 apartments.

<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/image2_16.jpg" rel="gallery-all" title="The comparatively modest Peddle Thorp-designed tower in situ"><img alt="" class="image-article-full-width-580px" height="398" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image2_16.jpg?itok=iACxSPBu" title="The comparatively modest Peddle Thorp-designed tower in situ" width="580"></a>

<figcaption>The comparatively modest Peddle Thorp-designed tower in situ</figcaption></figure>In addition to its vastly abbreviated height, the tower setback to the street has been expanded to 12 metres, allowing for the retention of both facade and interiors of the existing building to that depth. Serving as Burbank's CBD presence for many a year, the revised application also intends to remove the 'Burbank House' signage from the exterior.

Although Burbank may not be lost to the site. A 587 square metre commercial design studio and associated courtyard is designed into the ground floor; this will likely allow the current Burbank Edge Studio to remain onsite post development.

96-102 Franklin Street's pending final outcome effectively removes it from a dwindling list of planning applications predating the current planning law era that are still seeking resolution. Most notable are 139-141 Franklin Street and Southbank's 158 City Road which are both at appeal.
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silvermb

Cut down: A Franklin Street planning relic comes down to earth

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Today's Atlassian CEO Scott Farquhar and NSW Premier Gladys Berejiklian announced the NSW Government will partner with the software company to create a major new technology and innovation precinct in the Central-Eveleigh Corridor running through inner southern Sydney.

The Premier’s announcement refocuses attention on development plans for government-owned railway land between Central and Eveleigh, and marks a strategic play to cement Sydney as Australia’s tech capital.  

In recent times technology firms have faced hurdles in securing new or additional space in Sydney. Atlassian’s 2015 bid to expand lost out to property developers whilst Google also shied away from plans to use the Rozelle Power Station as a new work space.

The announcement comes off the back of last year’s report by the Committee for Sydney and KPMG titled <a href="https://home.kpmg.com/au/en/home/insights/2017/08/scaling-fintech-opportunity-sydney-australia">Scaling the fintech opportunity for Sydney and Australia</a> which noted the number of FinTech firms in Australia had scaled from 100 in 2014 to more than 500 today, with 10,000 people directly employed.

Almost two thirds of those firms are based in Sydney.

This is a competitive strength in Sydney’s digital innovation economy and today’s announcement marks a step forward in the government’s commitment to back the growth of this vibrant economic sector. Essentially, government and industry together will deliver a new precinct as a focal point for the various tech ecosystems in Sydney and the wider Australian sector.

Up to 10,000 jobs will be located in the precinct and together with co-located firms, coworking spaces, and the Sydney University-UTS education cluster, there is potential for a globally significant tech cluster.

As outgoing Committee for Sydney CEO Tim Williams noted at the release of last year’s report, “Modern knowledge economies thrive on agglomeration, collaborative diversity and convergence and the innovation they collectively promote.”

<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/image176.jpg" rel="gallery-all" title="Indication of the urban environment in the area earmarked for transformation"><img alt="" class="image-article-full-width-580px" height="278" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image176.jpg?itok=lIUi41ej" title="Indication of the urban environment in the area earmarked for transformation" width="580"></a>

<figcaption>Indication of the urban environment in the area earmarked for transformation</figcaption></figure>Furthermore, the urban environment in this corridor is earmarked to be transformed. The railway corridor around Eveleigh, Redfern and Central essentially a neglected and piecemeal space which constitutes a forgettable entrance to the southern CBD.

The precinct is closely located to other large-scale urban renewal precincts at Waterloo, Green Square and Zetland. It’s possible this government-tech industry partnership will build off innovative renewal precedents in Sydney and overseas like the Toronto Smart City co-developed by Google and Sidewalk Labs.

Overall this is a promising announcement about the reinvigoration of a neglected part of Sydney’s urban environment and a potentially visionary step forward for our city’s economic vibrancy and competitiveness.

Jobs for NSW chair David Thodey will lead a design and development taskforce to guide the direction of the new precinct.
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ModernBradfield

Sydney's Central to Eveleigh set to become Australia’s Silicon Valley

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An announcement last week by the NSW state government has advanced plans for the urban renewal of Waterloo's public housing estate.

Options for the renewal of the estate sees towers of up to 40 storeys envisaged, effectively making the current public housing estate an add on the the adjacent <a href="https://www.ugdc.nsw.gov.au/growth-centres/redfern-to-waterloo/metro-quarter/">Waterloo Metro Quarter</a> development. As many as 7,200 new dwellings are expected within the estate, effectively tripling the current housing number.

Private dwellings are on the agenda, accounting for as many as 70 per cent of the expected housing stock, with the balance dedicated toward affordable and public housing.

<a href="https://www.communitiesplus.com.au/major-sites/waterloo">Three options have been tabled for the 18 hectare estate</a>, dubbed Waterloo Estate, Waterloo Village Green and Waterloo Park.

<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/image142_1.jpg" rel="gallery-all" title="The area subject to renewal. Image: Communities Plus"><img alt="" class="image-article-full-width-580px" height="337" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image142_1.jpg?itok=0KsQHK1U" title="The area subject to renewal. Image: Communities Plus" width="580"></a>

<figcaption>The area subject to renewal. Image: Communities Plus</figcaption></figure>Unsurprisingly development industry peak body Urban Taskforce Australia was highly supportive of Waterloo's renewal. Additionally Urban Taskforce CEO Chris Johnson also passed comment on the current wider Sydney planning environment.

<blockquote>
The NSW Government’s promotion of high rise development at Waterloo should also occur on private sector sites around railway stations but in a pre-election environment much planning is on hold.

We support the extent of development proposed at Waterloo but the government seems to be concerned about similar developments in Marrickville and Ryde where planning has been delayed. It is pleasing to see the NSW Government proposing 40 storey buildings along with 20 and 30 storey residential towers around the proposed metro station.

This gives the private sector confidence that tall residential buildings are supported at a time when there is much community concern about the changing character of Sydney.

The Urban Taskforce supports the use of large sites, like the old brewery site on Broadway, for urban renewal projects as their scale can create the amenities and open space for the new community. We believe that there are many decaying industrial sites across the inner west that could produce quality developments like the one proposed at Waterloo.

At a time of a big swing in Sydney towards urban living the government must provide leadership to the community about the new shape of the city by supporting private development as well as public development. Unfortunately the pre-election environment has made the government nervous about development on private land and this will slow down housing supply.
</blockquote>

<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/image143_3.jpg" rel="gallery-all" title="Waterloo Redevelopment Options is available for public comment. Image: Communities Plus"><img alt="" class="image-article-full-width-580px" height="568" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image143_3.jpg?itok=c5tGYZez" title="Waterloo Redevelopment Options is available for public comment. Image: Communities Plus" width="580"></a>

<figcaption>Waterloo Redevelopment Options is available for public comment. Image: Communities Plus</figcaption></figure>With a development timeframe of 15 to 20 years, the estate's masterplan is taking shape with an aim of "reflecting the community’s needs and priorities along with the findings from a range of technical studies".

The trio of development options are now subject to a period of public feedback prior to a preferred plan being adopted. Beyond the adoption of and implementation of the preferred masteplan, it will be referred to Department of Planning and Environment for assessment in order to be ratified.

Further information on the Waterloo estate urban renewal can be found <a href="https://www.communitiesplus.com.au/major-sites/waterloo">here</a>.
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