Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

The Conversation

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<h1>
	By <a href="http://theconversation.com/profiles/peter-newman-1858" style="font-size: 12px;">Peter Newman</a>, Curtin University
</h1>
Sydney’s West Connex Motorway, one of Australia’s biggest infrastructure projects, is <a href="https://theconversation.com/abbotts-transport-priorities-drive-australia-into-the-past-17988">not without its downsides</a> but may provide a potential model on how future urban public transport projects can be financed.
The first phase of the $11 billion project has been funded by the NSW government with <a href="https://theconversation.com/are-we-selling-off-the-family-silver-by-privatising-australias-ports-13824">the sale of Port Botany</a>. The failure to properly predict vehicle patronage in the past decade has resulted in a series of <a href="https://www.propertyobserver.com.au/http://www.abc.net.au/news/2013-09-14/cross-city-tunnel-owners-blame-government-for-debt-woes/4958084">tollway business failures</a>. So by opting to build the first phase itself, the government can accurately assess patronage estimates and hence toll income, then sell it off to private owners and operators, using the resulting funds to begin the next stage of the system.
Across Australia there is a backlog of urban rail projects that are now not in the <a href="https://theconversation.com/its-not-in-the-knitting-urban-rails-growing-significance-13754">Federal knitting</a>. Perhaps the West Connex model provides a way forward on urban public transport – with some advantages over motorways.
I’ve argued before about the <a href="https://theconversation.com/its-not-in-the-knitting-urban-rails-growing-significance-13754">dramatic shift</a> in urban rail patronage, with rail transit in particular becoming more market-based due to its ability to by-pass traffic. Economically it has an important role in making urban centres viable and attractive to global capital in the knowledge economy.
We know the arguments around it: reducing carbon and sprawl, improving air quality and health; but the new factor is its importance in improving urban productivity. <a href="http://glossary.econguru.com/economic-term/agglomeration+economies">Agglomeration economies</a> occur around urban rail stations due to the extra synergies between different parts of the workforce; international examples such as <a href="http://www.crossrail.co.uk/route/">London’s Cross Rail</a> have delivered a cost-benefit ratio of between 1.5 and 3.0.
While European and Asian cities traditionally show a strong market case for urban rail, now the car-dependent cities of America and Australia are demonstrating through patronage demand that there is a market for urban rail.
Figure 1 shows the recent growth in urban public transport in in Australian cities. The major growth has been driven by new infrastructure, so new rail projects in Adelaide and Sydney are likely to affect their trajectories to resemble the remarkable growth in Perth, Melbourne and SE Queensland.
<figure class="align-centre zoomable"><a href="https://c479107.ssl.cf2.rackcdn.com/files/31827/area14mp/rz78sff7-1379989372.jpg"><img src="https://c479107.ssl.cf2.rackcdn.com/files/31827/width668/rz78sff7-1379989372.jpg"></a>
	<figcaption> Author's own.</figcaption></figure>The data indicates substantial growth in public transport; patronage averaged out at 65% higher than was being attracted just over a decade ago – nearly 100% growth in Perth. All Australian cities now have large scale plans to complete their urban public transport systems.
Perhaps the West Connex model could be adapted to help cash-strapped states fund and construct this type of rail infrastructure, in the following way:
<ul>
<li>
		Build the first phase of urban rail projects based on private sector consortia bids that include the development of land around stations.
	</li>
	<li>
		Prove up the patronage income from fares and alternative funding sources like parking levies and especially <a href="http://www.committeeforperth.com.au/images/stories/NewsMedia/Publications/16-Discussion%20Paper-%20Alternative%20Funding%20Mechanisms%20for%20Public%20Transport%20in%20Perth,%202011.pdf">land value capture</a>. Put this in a special Transit Fund.
	</li>
	<li>
		Place the newly operating first phase urban rail project onto the market as a privately owned and operated rail service. Use the capital raised as the basis for the next stage of the urban rail project and repeat the process until the full network is created.
	</li>
</ul>
The key advantage in this process over the West Connex and other road projects is that rail can produce land value capture revenue. Motorways do change the value of land but it is highly dispersed and residents are not keen to live near them due to traffic and noise.
However modern electric rail focuses land value increases near to rail stations due to their market attractions. There is a willingness to pay for accessibility that translates into higher real estate values. Perth’s new Southern Rail has <a href="http://www.scirp.org/journal/PaperInformation.aspx?PaperID=31822">attracted 78,000 users a day</a> due to its significant speed advantages over traffic; as a result there has been a 42% growth in land values near stations over five years.
This translates into higher land-based tax revenues such as council rates, state land taxes and stamp duty, Federal capital gains and GST on land sales. These can be hypothecated into a fund along with fares and relevant other funds like parking levies.
Across the world, a range of cities have used this Tax Increment Financing method for urban rail; Delhi is looking at more than half of the potential income for their new regional rail from this source.
Australian state governments are looking at this possibility but the West Connex model suggests that instead of leaping into private rail they could test the real size of the revenue that could potentially be created by the new rail project.
Apart from lobbies that do not want to see urban public transport at any cost, there are <a href="https://www.propertyobserver.com.au/http://www.abc.net.au/radionational/programs/lifematters/our-22infrastructure22-prime-minister3a-the-future-of-transp/4946194">some prevailing views</a> that transit is not a 21st century economic instrument. This is because it is not seen to have a true market that could stand on its own without government.
Like toll-ways.
Peter Newman does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/18506/count.gif" width="1">
This article was originally published at <a href="http://theconversation.com">The Conversation</a>. Read the <a href="http://theconversation.com/a-road-less-travelled-funding-australias-urban-rail-18506">original article</a>.
Lead image credit: <a href="http://en.wikipedia.org/wiki/File:Metro_Trains_Melbourne_Hitachi.jpg" target="_blank">Wikipedia</a>
</body></html>

theconversation

A road less travelled - funding Australia's urban rail

<html><body>
By <a href="http://theconversation.com/profiles/jane-frances-kelly-2567" style="font-size: 12px;">Jane-Frances Kelly</a>, Grattan Institute and <a href="http://theconversation.com/profiles/paul-donegan-102513" style="font-size: 12px;">Paul Donegan</a>, Grattan Institute
The strength of Australia’s economy depends on how well our cities function – yet right now, it’s as if we’re driving with the handbrake on.
Cities are crucial to productivity. When they work well, they offer businesses the chance to bring together the biggest and best pool of available skilled employees.
As the Business Council of Australia recently stated in its <a href="http://www.bca.com.au/Content/102223.aspx">Action Plan for Enduring Prosperity</a>: “cities play a significant role in supporting economic growth… [they] are very much engines of commerce, science, innovation and progress.”
But the reported dismantling of the <a href="http://www.dailytelegraph.com.au/news/national/commonwealth-agencies-to-be-cut-by-abbott-government/story-fni0xqrc-1226724733088?utm_source=The%20Australian&amp;utm_medium=email&amp;utm_campaign=editorial&amp;net_sub_uid=58372232">Major Cities Unit</a> – which provided advice on developing Australia’s 18 biggest cities to the federal government – suggests that the new government may not understand how urgently reform is needed.
<h2>
	More time in traffic, less time with family</h2>
In our biggest cities, our transport infrastructure is too often holding us back. In many areas, particularly outer suburbs, <a href="http://grattan.edu.au/publications/reports/post/productive-cities-opportunity-in-a-changing-economy/">residents can reach fewer that 10%</a> of all metropolitan jobs within a reasonable commuting time.
Indeed, the OECD’s Head of Regional Economics Dr Rudiger Ahrend recently described Sydney as being so badly connected that its economy functions more like a city of 1 million people, rather than the 4.5 million people who call it home. Opportunities are similarly limited in some outer suburbs of Melbourne, Brisbane and Perth.
Increasing congestion makes it harder and more time-consuming for businesses to connect with customers, potential employees and each other. It is perhaps even more important that time spent in traffic is also a drain on people’s family and leisure time.
<a href="http://www.melbourneinstitute.com/downloads/hilda/Bibliography/Working+Discussion+Research_Papers/2005/Flood_etal_Commuting_in_Australia.pdf">A 2005 study</a> found that more than 10% of parents in paid work spent more time commuting than they did with their children, travelling for between ten and 15 hours weekly to and from work. Eight years on from that study, as our cities continue to grow, the situation for families is getting no better.
Meanwhile public transport is stretched to the limit at peak times and many people living further from the city have little access to it at all.
<h2>
	Unleashing frustrated commuters</h2>
Poor transport links, which cut many employers off from potential employees, are a big drag on our economy, especially when employers frequently cite a lack of skilled workers as a barrier to growing their business. People poorly served by transport are likewise cut off from better job opportunities.
Many parents – particularly women – caring for younger children are especially disadvantaged. Childcare and school hours limit the time parents can spend commuting, putting them on a “spatial leash”, limiting how far they can live from their work, and in the process often drastically reducing what work they can do.
Tony Abbott was right to recognise the need when he said that he wanted to be known as an <a href="https://www.liberal.org.au/latest-news/2013/09/05/only-coalition-will-deliver-infrastructure-future">“infrastructure Prime Minister”</a>. This would be a valuable legacy.
But the Prime Minister’s view that federal government should not fund urban rail projects is troubling. Roads alone will not overcome the costs of congestion and poor access to transport.
There is limited space to expand road access to the inner suburbs and CBDs of cities like Sydney, Melbourne, Brisbane and Perth – areas with the highest concentrations of the knowledge-intensive jobs that are central to strong productivity growth. Demand for public transport is growing in all these cities, but existing infrastructure can only do so much.
<h2>
	Federal funding and tax fixes</h2>
National funding of major public transport projects will be central to enabling our cities to work well and therefore to productivity growth. State governments have an important role to play in building and funding transport infrastructure. But the funding need and importance to the national economy are too great for them to do this alone.
The federal government collects most of our taxes. It must do its share of the work to help businesses to connect with more of the employees they need, and help people to spend more of their time working or with their family, rather than stuck in traffic or on overcrowded public transport.
Enabling more people to live closer to where they work can also help slow growth in congestion. Our homes are our castles, but housing is also economic infrastructure – where people live is critically important to the strength of a city’s economy.
The federal government has an indirect but substantial influence on the housing market. Buyers, builders and developers' decisions are shaped by the taxes levied by local, state and national governments.
Taxes affecting the housing market include municipal rates, stamp duty and capital gains tax, as well as settings such as negative gearing rules. Examining how these taxes shape our $1.6 trillion housing market – and how they could be improved – could make a big difference to ensuring that the housing Australians say they want is built closer to job opportunities.
There is room for improvement. Taxes and charges on buyers and sellers of housing in Australia are some of the highest in the world. The Coalition’s commitment to a tax white paper is a great first step.
Let’s hope the critical economic impact of where we live and how we get around is at the centre of reforming our tax system. If not, we can expect economic decline as our cities buckle under the weight of neglect.
The Grattan Institute’s Productive Cities report is <a href="http://grattan.edu.au/publications/reports/post/productive-cities-opportunity-in-a-changing-economy/">available here</a>, along with detailed reports on Sydney, Melbourne, Brisbane and Perth.
Paul Donegan has previously worked in public strategy and policy roles for the Commonwealth and Victorian governments, including as the disability reform adviser to the Commonwealth Minister for Families, Housing, Community Services and Indigenous Affairs Jenny Macklin at the introduction of DisabilityCare Australia.
Jane-Frances Kelly does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
<img alt="The Conversation" height="1" src="//counter.theconversation.edu.au/content/18446/count.gif" width="1">
This article was originally published at <a href="http://theconversation.com">The Conversation</a>. Read the <a href="http://theconversation.com/stuck-in-traffic-how-to-get-our-cities-and-economy-moving-18446">original article</a>.
Lead image credit: UM Forum member Glenn Wilson.
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Stuck in traffic: how to get our cities and economy moving

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By <a href="http://theconversation.com/profiles/leonhard-bernold-9320" target="_blank">Leonhard Bernold</a>.

According to <a href="http://www.theage.com.au/opinion/political-news/boost-for-rail-tunnel-20130404-2h9wq">a report</a> in Fairfax media on the 5th of April, the Labor government is set to announce funding for Melbourne’s A$9 billion <a href="http://www.railpage.com.au/news/article-7974/">metro rail tunnel</a>, in addition to the A$40 million it has already contributed towards getting the project “shovel-ready”. Sounds good? Well, let’s see …

Before any shovels have broken earth, the rail tunnel is facing a <a href="http://www.theage.com.au/victoria/major-engineering-hurdles-remain-for-new-rail-tunnel-beneath-city-20130227-2f6dd" target="_blank">series of engineering challenges</a>.

These reportedly include deciding if to run the new tunnel below or above the existing <a href="http://corp.ptv.vic.gov.au/managing-victoria-s-public-transport-network/history-and-heritage/city-loop-history/">City Loop</a>, the start of construction work on the <a href="http://www.vcccproject.vic.gov.au/" target="_blank">Victorian Comprehensive Cancer Centre</a>, and the existence of the aquifers beneath and beside the Yarra River, where the proposed tunnel will run.

The project, <a href="http://www.realestatesource.com.au/melbourne-metro-train-tunnel-and-new-parkville-station-announced-by-government" target="_blank">announced in 2009</a> by the former Brumby Victorian state government, involves <a href="http://corp.ptv.vic.gov.au/projects/rail-projects/melbourne-metro/" target="_blank">a nine-kilometre tunnel</a> between South Kensington and South Yarra, with five new Metro stations, that will eventually carry up to 60,000 passengers an hour.

Previous tunnelling projects in the Melbourne area have taught us that none of the options for constructing the proposed tunnel will be a cakewalk.

But it should be reassuring to note that there are many global examples that provide evidence that this type of construction can be done safely.

While not wishing to get involved in proposing one tunnelling technique over another, it might be worthwhile to look at some of the technical issues, and the state of best practice, for tunnelling underneath a city such as Melbourne.

<h2>Going down</h2>

Any deep excavation study starts by establishing a clear understanding of the geology that has to be “broken through” and of the water level connected to the site. Adjacent water sources, such as rivers or aquifers, that are fed by a well that may be tens of kilometres away, need to be accounted for.

A detailed soil profile, based on soil samples along and next to the future tunnel line, is essential for the final design. Before those are established, geological maps and reports from previous projects in the area are extremely valuable.

For the Melbourne Metro Tunnel project, the initial source of information would be the <a href="http://dpistore.efirst.com.au/product.asp?pID=145&amp;cID=32" target="_blank">Geological Map of Melbourne</a>, SJ 55-5, published by the Victorian Department of Primary Industries.

As might be expected, the map matches the observations by the engineers involved in <a href="http://books.google.com.au/books?id=KuUtzTWzN-8C&amp;pg=PA158&amp;lpg=PA158&amp;dq=about+burnley+tunnel&amp;source=bl&amp;ots=pZFNO8xw6b&amp;sig=0LUsSSjdZD8VSZPtz7a_3rJwa2Y&amp;hl=en&amp;sa=X&amp;ei=jJg-UZ_sI8rLmgXi6IDYBA&amp;ved=0CC0Q6AEwADgU#v=onepage&amp;q&amp;f=false" target="_blank">constructing the Burnley Tunnel</a> between 1996 and 2000. They reported a weathered basalt layer sitting on top of a thick band of silt and clay.

A vertical shaft to the tunnel had to dig through a 20m layer of sand and gravel aquifer referred to as the <a href="http://dbforms.ga.gov.au/pls/www/geodx.strat_units.sch_full?wher=stratno=12317" target="_blank">Moray Street Gravels</a>. At the bottom of the aquifer starts bedrock moulded like a flat bowl and made of the <a href="http://dbforms.ga.gov.au/pls/www/geodx.strat_units.sch_full?wher=stratno=5213" target="_blank">dargile</a> marine deposits, called <a href="http://ascelibrary.org/action/showAbstract?page=875&amp;volume=110&amp;issue=7&amp;journalCode=jgendz" target="_blank">Melbourne mudstone</a> (made of silt and sand).

As the mudstone is porous, the water from the aquifer was able to leak deeper and engulf the Burnley Tunnel tube, which had to be made waterproof as a result. In addition, the tunnel walls needed to be designed to be strong enough to sustain the <a href="http://en.wikipedia.org/wiki/Fluid_statics#Hydrostatic_pressure" target="_blank">hydrostatic pressure</a> (the pressure exerted by a liquid at rest) from all sides.

Of course, these different soil types are not nicely lined up: they are folded and intertwined like a squeezed tablecloth, mixed with small-to-large stones. Finally, the top layer usually consists of a surface soil that could be from previous man-made fills.

Based on the information from these two collaborating sources we can conclude that the proposed Melbourne Metro tunnel will have to be dug below the water table through varying amounts of alluvial, marine and some weathered volcanic material that is considered “soft” ground.

<h2>Going soft</h2>

The emergence of <a href="http://www.mindfully.org/Technology/2004/Underground-Boring-Machines1sep04.htm" target="_blank">tunnel boring machines</a> (TBMs) – built by the American engineer James Robbins in the 1950s – were designed to drill through hard rock made of granite, and were ten times faster than using <a href="http://www.miningaustralia.com.au/features/the-days-of-drill-and-blast-are-over-anglogold" target="_blank">drill-and-blast method</a>. This record has since been broken many times over, while the number of accidents has decreased.

The new <a href="http://news.discovery.com/tech/worlds-largest-tunnel-drilled-under-swiss-alps.htm" target="_blank">57km tunnel through the Swiss Alps</a> – the world’s longest tunnel – for instance required four 5 megawatt TBMs with drill diameters of 8.2m.

Because soft ground TBMs can’t utilise the “squashy” tunnel walls to push themselves forward, a different “footing” was needed. A simple solution was provided by the constructed tunnel wall – made of strong pre-cast concrete elements – being installed in the back of the tunnel.

Most large cities around the world are built on top of soft soil as they have evolved from ancient trading villages near lakes or major rivers.

Increasing population sizes demanded larger sewer and drainage pipes and – more recently – subways and motorways to be built underground. The softness of the soil gave rise to a special kind of TBM called <a href="http://www.ita-aites.org/index.php?id=152" target="_blank">Earth Pressure Balance</a> (EPB) shields or machines.

We shouldn’t be surprised to learn 50% of all EPB tunnels are built below the <a href="http://en.wikipedia.org/wiki/Water_table" target="_blank">water table</a>. Some of the major cities in which EPB shields <a href="https://www.herrenknecht.com/products/tunnel-boring-machines/traffic-tunnelling/epb-shield" target="_blank">have been used</a> include Shanghai, Bangkok, Rome, Naples, Barcelona, Madrid, Rio de Janeiro, Los Angeles and London.

<figure><iframe allowfullscreen="" frameborder="0" height="260" src="//www.youtube.com/embed/z38JIqGDZVU?wmode=transparent" width="440"></iframe>

<figcaption>How TBM technology is working to build tunnels beneath London.</figcaption></figure>The key risk of any work in soft underground is the potential of soil settlements right above the tunnel caused by the re-arrangement of the soil by the tunnelling work.

Unsurprisingly, the key objective of a geotechnical engineer is to ensure that the equilibrium is preserved in such a way that no damages to surface structures occur.

This job has been made easier by recent advancements: in fact, during the past 10-15 years, EPB shield technology has added important capabilities.

Contributing to these very important enhancements are better computer models predicting the behaviour of soil under buildings; pre-tunnelling in-situ tests; grout pre-treatment or grouting of difficult sub-surface areas; new materials; and, of course, the large amount of knowledge gained from successful projects worldwide.

<h2>A perfect bore</h2>

Older metros in <a href="http://www.archives.gov.on.ca/en/explore/online/subway/construction.aspx" target="_blank">Toronto</a>, <a href="http://theboweryboys.blogspot.com.au/2010/08/new-york-city-subway-and-creation-of" target="_blank">New York</a> and <a href="http://www.boston.com/news/globe/ideas/gallery/first_big_dig/" target="_blank">Boston</a> were commonly built underneath the pavement of major thoroughfares, applying what is referred to the <a href="http://www.fhwa.dot.gov/bridge/tunnel/pubs/nhi09010/05.cfm" target="_blank">“cut-and-cover” method</a>.

As the term implies, the construction starts by cutting out an initial space, possibly covering the large opening with beams and steel plates. Excavation advances downwards while the traffic is directed around the necessary openings to lower or raise material.

Of course, trucks, cranes and concrete mixers associated with construction disrupt the pedestrian and vehicular traffic along the tunnel route. Community and business pressures have resulted in the usually-cheaper cut-and-cover option being eliminated in favour of a “<a href="http://www.damninteresting.com/the-deepest-hole/" target="_blank">deep bore</a>”, using boring machines.

<h2>Station to station</h2>

As mentioned, five new stations will be built as part of Melbourne’s Metro project, and these present challenges independent of the tunnels. Stations not only require additional space: they also need to connect to the surface. Underground access to adjacent shopping malls or office buildings is also a very attractive addition.

Circular boring machines are not designed to construct stations. While the cut-and-cover method is used, stations can also be built from the bottom up using the <a href="http://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=9&amp;cad=rja&amp;sqi=2&amp;ved=0CF0QFjAI&amp;url=http%3A%2F%2Fweb.inonu.edu.tr%2F~mkarakus%2Fpdf%2FInsight%2520into%2520the%2520New%2520Austrian%2520Tunnelling%2520Method.pdf&amp;ei=jqQ-Ueu6MoT8iAeDuYDwAQ&amp;usg=AFQjCNGK9BhoFsqQoCxSRLC83PGSsZpUaw" target="_blank">New Austrian Tunnelling Method</a> (NATM).

The basic premise of the NATM is to create a solid roof and side walls before digging underneath the shell with large equipment.

<figure><iframe allowfullscreen="" frameborder="0" height="260" src="//www.youtube.com/embed/LxdWlSCVqdQ?wmode=transparent" width="440"></iframe>

<figcaption>How NATM works.</figcaption></figure>Not only viable for stations and cross-cuts between two tunnels, NATM could be combined with a “cousin” of cut-and-cover to create a <a href="http://www.cif.org/noms/2002/06_-_Up-Down_Construction.pdf" target="_blank">up-down construction approach</a> where bearing walls and columns are drilled first from the top.

This is followed by constructing the visible part of the station upwards while concurrently digging underneath (upwards from the tunnel using NATM, or downwards) with the removal of the large amount of excavated material through the already existing tunnel sections previously drilled by the EPB-shields.

This would not only eliminate the need for large dump trucks on the surface but it would also speed up construction.

<h2>Light at the end of the tunnel</h2>

<figure><iframe allowfullscreen="" frameborder="0" height="260" src="//www.youtube.com/embed/U6p8YuyVir4?wmode=transparent" width="440"></iframe>

<figcaption>Melbourne Metro – ‘Transforming Melbourne’s Rail Network’</figcaption></figure>Finding the best solution for Melbourne’s Metro tunnel will require a close collaboration of all stakeholders advised by tunnel engineers and contractors with expertise in state-of-the-art tunnelling techniques.

Regardless of which route is finally chosen, EPB shield technology appears to present the safest, most productive and economical alternative for building the tubes through Melbourne’s soft, “water-filled” underground.

With an eye to minimising the effect of large truck traffic in the city for excavating the stations, it seems combining “up-down” construction with NATM, protected by advanced grouting – and the removal of the muck through the tunnels – will provide the most desirable solution.

The politics of the project (which is now nudging for top spot in Infrastructure Australia’s <a href="https://www.nics.gov.au/Home/PriorityProjects" target="_blank">National Priority List</a>) will continue to be fascinating; but so will the technical challenges, and solutions to those challenges, going forwards.

Should you be counting on jumping aboard a train on one of the new Melbourne Metro lines any time soon? Probably not. As on so many occasions when it comes to building such large projects underground, we have to expect delays mainly caused by geology.<img alt="The Conversation" height="1" src="//counter.theconversation.edu.au/content/12588/count.gif" width="1">

Leonhard Bernold does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.

This article was originally published at <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="http://theconversation.com/dig-this-how-to-construct-melbournes-metro-tunnel-safely-12588" target="_blank">original article</a>.
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