For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

Joel Robinson

The inflation result the property market was waiting for

Commercial property group FiveX is doubling down on its move into the residential space.

The group, founded by Joshua and Marko Berger more than five decades ago, has followed up its plans for a 39-storey tower on North Sydney's Alfred Street with a proposed 61-storey tower in Chatswood.

The new tower at <a href="https://www.apartments.com.au/new-apartments/815-pacific-highway-chatswood-nsw-2067">815 Pacific Highway</a>, which would be one of the tallest proposed in Chatswood in recent years, will comprise 490 apartments, 76 of which will be dedicated affordable housing and managed by Evolve Housing for a minimum of 15 years.

The project will replace the long-standing Panorama Building, originally known as the BMA Tower, a 14-storey office building completed in 1972 and designed by Hungarian-born architect Hugo Stossel. At the time of its completion, the building was the tallest structure in Chatswood and became a local landmark due to its distinctive curved form and external glass lift.

<img alt="FiveX" data-entity-type="file" data-entity-uuid="956bd299-3864-47a0-8ea6-162b5524c5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.02.03%E2%80%AFPM.png?VersionId=EWx7teUr7RcYrI9mgRytwppwt5AdUDtb" />

fjcstudio is behind the designs. Its Architectural Design Report argues the ageing commercial building no longer reflects Chatswood's role as one of Sydney's key strategic centres and that the site is ideally positioned to support significantly higher residential density.

"The site is located at the heart of Chatswood, within the TOD accelerated rezoning area that supports higher density development around the new Metro station," the report states.

"The site's role within a walkable 400-metre radius catchment is where housing, employment, retail and community uses are encouraged to cluster in support of transit-oriented living."

<img alt="fjc" data-entity-type="file" data-entity-uuid="8d198f5e-cc71-4175-9357-be6ec7207473" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.18.27%E2%80%AFPM.png?VersionId=5WUFc3IYBPvhQMBUYLCsjJhzdcVeYodE" />

The proposal has undergone two rounds of review by the NSW State Design Review Panel, with the design evolving through an extensive assessment process focused on design excellence, public realm outcomes, residential amenity and the integration of affordable housing.

fjcstudio says the residential component provides a diverse mix of apartment typologies, supporting a broad demographic and contributing to housing supply in a highly accessible location close to major transport, employment and retail infrastructure.

The application follows FiveX's plans for a 39-storey tower at <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">275 Alfred Street</a>, which it <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">submitted through the same NSW Government pathway</a> in December. That's for 184 apartments.

Recent activity in Chatswood includes Hyecorp launching its Archer Street project, Celine, and Develotek securing approval for a 34-storey tower.

First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans

Bridgewell Capital and SLD Development seem to be bullish on the Killara apartment market, filing plans for a second new development next to the Killara Golf Club.

The new plans are for 79 apartments across an amalgamated 4,989 sqm site on Buckingham Road.&nbsp;The project has been designed by BKA Architecture and is being assessed under the NSW Government's Low and Mid-Rise Housing and Infill Affordable Housing reforms. It is just 300 metres from&nbsp;Killara train station.

The majority of the apartments are three-bedrooms (46), with 23 two-bedroom apartments, seven one-beds, and three four-bedroom apartments. 17 of the apartments&nbsp;are proposed as affordable housing, representing 15 per cent of the project's gross floor area, allowing the development to access additional floor space and height incentives available under the NSW Housing SEPP.

There will be 131 resident and visitor car spaces, and more than&nbsp;1,450 sqm of communal open space. Landscaped areas would account for approximately 45 per cent of the site.

<img alt="Killara" data-entity-type="file" data-entity-uuid="75ef5ef7-a53b-4932-a8f1-38f63169eec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%2011.04.00%E2%80%AFAM.png?VersionId=d_lG1A1StDaMQilljy25Fr8SF1BnAmKE" />

The site currently contains three detached dwellings and occupies a prominent position on the eastern side of Buckingham Road, with frontage to an area that has already begun transitioning towards higher-density housing. Existing apartment buildings of up to six storeys surround the site, while the Killara Golf Club forms its southern boundary.

The application has been lodged as a State Significant Development due to the affordable housing component and the scale of the project.

According to the design report, the proposal has been shaped by the area's evolving planning framework, which is encouraging greater housing density around transport infrastructure.

"The site sits along a growth area anticipated to undergo transformation in line with broader trends across New South Wales, driven by the implementation of the Low and Mid-Rise and Transport-Oriented Development State Housing Policies," the report states.

"Being within 800 metres walking distance to Killara Train Station, the project seeks to provide high-quality apartments designed for various family sizes, located in a vibrant landscaped setting."

The Upper North Shore suburb has become one of the most closely watched testing grounds for the NSW Government's housing reforms. A number of developers have moved quickly to consolidate sites around railway stations across suburbs including Killara, Lindfield, Gordon and Roseville, where the new planning settings are creating opportunities for apartment developments that would previously have been difficult to achieve.

The likes of Aqualand, Hyecorp, Holdmark and Vermont Property Group have projects in the region.

Bridgewell has several developments in the pipeline. Last September they submitted plans for <a href="https://www.apartments.com.au/news/nsw/bridgewell-capital-seeks-55-apartment-project-in-killara">55 new apartments</a> at&nbsp;23-25 Lorne Avenue in Killara, just the other side of Regimental Park from their new project. In May they filed for <a href="https://www.apartments.com.au/news/nsw/first-look-bridgewell-plots-120-apartments-and-childcare-centre-in-maroubra-town-centre">120 apartments in Maroubra</a>.

&nbsp;

&nbsp;

&nbsp;

First look: Bridgewell, SLD Development double down on Killara Golf Club

Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

&nbsp;

Central Element seeks second Drummoyne apartment development

The NSW Government has unveiled plans that could deliver around 1,300 new homes across Nowra and Kiama, continuing its push to unlock housing in well-located regional centres along the South Coast.

The proposals, now on public exhibition, would pave the way for around 830 homes in Nowra and a further 450 homes in Kiama, while also introducing affordable housing requirements and increased building heights in key locations.

The larger of the two proposals is centred on Nowra, where the NSW Government is seeking to rezone land within the Mandalay and Riverfront precincts.

The Mandalay sub-precinct, located close to Shoalhaven Memorial Hospital, Nowra Library and the city's aquatic centre, could accommodate around 530 new homes. Around 30 per cent of housing delivered on Homes NSW-owned land would be dedicated to social and affordable housing, equating to roughly 100 homes. Building heights would increase from the current two-storey limit to between three and six storeys.

A separate rezoning proposal for the Nowra Riverfront Precinct would unlock a further 377 homes while creating stronger connections between the Shoalhaven River and the CBD. The plans include building heights ranging from five to 12 storeys, floor space ratios of up to 2:1 and a requirement for two per cent affordable housing.

Together, the two proposals would deliver more than 900 homes across the broader Nowra area, reinforcing the city's role as one of regional NSW's key growth centres.

The housing push builds on previous infrastructure commitments in the Shoalhaven, including government funding aimed at supporting thousands of future homes in West Nowra through upgrades to water and wastewater infrastructure.

Further north, the NSW Government is also progressing plans for the former Kiama Depot site, a two-hectare parcel near Kiama's town centre.

The rezoning proposal would transform the former industrial site into a residential community capable of delivering up to 450 homes. Buildings would range between six and eight storeys, with at least 10 per cent of homes allocated as affordable housing. The proposal also includes approximately 600 parking spaces and improved walking and cycling connections.

Planning Minister Paul Scully said the proposals are designed to increase housing supply in locations close to jobs, transport and services.

"For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need," Scully said.

"The Minns Labor Government is getting on with the job of unlocking well-located sites close to transport, jobs, and town centres and building the homes our communities need.

"These rezonings are about removing barriers to housing delivery and making sure land is put to better use so more people can find a place to call home within the communities they choose."

The latest rezonings form part of the Minns Government's broader strategy to accelerate housing delivery across NSW, particularly in established centres where existing infrastructure can support additional population growth.

Community consultation on the proposals is now underway, with feedback set to inform the final planning controls before the rezonings are determined.

Around 1,300 new homes earmarked for Nowra and Kiama as NSW Government pushes housing supply

West Melbourme

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As the Australian <a href="/expert-insights/buying/the-future-of-the-australian-property-market-post-covid-19-according-to-icd-propertys-sal-quah">property market </a>weathers a period of significant uncertainty, buyers are flocking to the affordable and desirable lifestyle offered in Melbourne’s western growth corridor, with the region setting a benchmark for community-focused living. 

North, West, South-east and Sunbury Growth Corridor Plans were introduced in 2012 by the <a href="https://vpa.vic.gov.au/wp-content/Assets/Files/GCP%20-%20Chapter%207%20Sunbury-Diggers%20Rest%20Corridor%20Plan.pdf">Victorian Planning Authority</a> to manage the growing population of the region. Each of these identified corridors aims to deliver affordable housing, employment, all-inclusive town centres, along with wide-open spaces that are expected to eventually accommodate close to half of Melbourne’s new housing. 

With the rest of the state forecasting a market downturn as a result of COVID-19, developers in Melbourne’s west are witnessing a resurgence of buyers who are eager to capitalise on low-interest rates and <a href="/news/everything-you-need-to-know-about-australias-25-000-homebuilder-grant-how-much-off-the-plan-homebuyers-could-save">government stimulus package</a>s. This <a href="/news/new-housing-development-aims-to-cater-to-significant-population-growth-anticipated-for-geelong">accelerated population growth</a> is expected to continue into the future with 22,100 residents expected to be added by 2031, representing growth of 15% per annum. 

[smartcode_project:default project_id=2772]

Securing homes and land for the future 

For the past decade, <a href="/developments/west-melbourne-vic-3003">Melbourne's west </a>has experienced remarkable population growth, with an additional 267,000 people moving into the area, representing a 38% increase. 

This area of Melbourne is consistently popular with the hard-working demographic. This includes individuals and families who are classified as essential service workers working within the health, logistics and construction sector and have remained the most financially secure during COVID-19. 

These buyers typically have their finances ready to go and are eager to start building, hence they tend to flock towards titled land as opposed to untitled which can take anywhere from 12 to 18 months to settle. 

Whilst first-home buyers are also active and still looking, they are spending more time researching and banks are taking a bit longer with finance approvals. On the other hand, there are still groups of buyers who are happy to buy <a href="/new-apartments">off the plan</a> now with a 5% deposit and then pay the rest at settlement in 12 months time. 

[smartcode_project:default project_id=27783]

Seeking a convenient lifestyle 

Buyers who opt to invest in the western growth corridor tend to place a greater emphasis on value - they actively seek out products that will provide them with more bang for their buck and master-planned communities tend to tick all the boxes. In addition, there has been a greater appetite for <a href="/new-townhouses">townhouses</a>, as more and more individuals shift away from traditional detached family homes. 

New home buyers are also seeking more than just value for money with owner-occupiers searching for a community that is designed for easy living away from the hustle and bustle of the city with space to grow and explore, such as wetlands and conservation areas. 

[smartcode_project:default project_id=27675]

Community connection 

Melbourne’s west is an up and coming area that is seeing families attracted by the space, investment into infrastructure and amenities.

Public transport links, walkability, thriving communities, and local community <a href="/news">development initiatives</a> are designed to foster a strong sense of community which is also appealing to first home buyers and those who are looking to build their forever home especially as people are spending more time in the suburb where they live. 

But this focus on community development requires investment and often does not come naturally, rather it is the responsibility of developers to implement such initiatives to encourage a strong sense of community to develop among residents. 

[smartcode_project:default project_id=7633]

It is becoming clearer than ever that buyers are expecting more than just a property. They are seeking a modern, fulfilling <a href="/news/lifestyle-choice-or-property-investment-not-an-either-or-equation">lifestyle</a> that provides value, convenience and a level of connection, and that is exactly what is on offer in Melbourne’s west, and why it remains one of the fastest-growing regions in Australia.
</body></html>

vivian_48447

Melbourne’s West: How the Growth Corridor is Defying the Property Market 

West Melbourne&#39;s wave of apartment projects may be tempered ever so slightly as developer&nbsp;Middlefield Group seeks to rework a formerly approved residential tower into hotel rooms.

On the corner of Spencer and Dudley Streets, the 268 square metre site was offered by agent Teska Carson with approval for 47 apartments during early 2017. After picking up the approved residential permit for 437-441 Spencer Street during early 2017, Middlefield Group has chosen to rework the site into a hotel, bucking the prevailing apartment trend for the suburb.

Lau &amp; Order Pty Ltd (trading as Middlefield Group) initiated the change of use, with&nbsp;pre-application talks with Council occurring prior to an&nbsp;extension of time request receiving the nod during November 2017. This in turn allows the prospective hotel to be completed by&nbsp;April 2021.

<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/x4ktgtj8xr4ayerlgujl.jpg" rel="gallery-all" title="Aerial perspective of the site. Image: commercialview.com.au"><img alt="" class="image-article-full-width-580px" height="381" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/x4ktgtj8xr4ayerlgujl.jpg?itok=cHMGNPDH" title="Aerial perspective of the site. Image: commercialview.com.au" width="580" /></a>

<figcaption>Aerial perspective of the site. Image: commercialview.com.au</figcaption>
</figure>

Design practice&nbsp;Elevli Plus was responsible for the previously approved residential scheme, and have been engaged for the current reconfiguration. The building&#39;s external envelope as seen below will essentially remain unchanged.

Internally though&nbsp;Middlefield Group are expecting the newly configured 17-storey tower to include 88 hotel rooms. According to planning documents&nbsp;all hotel rooms are to be generally between 17 and 32 square metres in size with the exception being&nbsp;the crowning suite, which spans 45 square metres.

437-441 Spencer Street&#39;s&nbsp;three basement levels include a&nbsp;kitchen, staff room, shower/ change facility, stores, bicycle parking area and various services. The intended hotel&#39;s 24 hour lobby/reception at ground will be accessed from Spencer Street.

<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/image121_4.jpg" rel="gallery-all" title="The endorsed residential design. Image: Elevli Plus"><img alt="" class="image-article-full-width-580px" height="330" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image121_4.jpg?itok=7c_sMe6l" title="The endorsed residential design. Image: Elevli Plus" width="580" /></a>

<figcaption>The endorsed residential design. Image: Elevli Plus</figcaption>
</figure>

The dearth of hotel suites in development across West Melbourne is evident when scanning the <a href="/developments">relevant numbers within the Urban.com.au Project Database</a>.

Apartments.com.au has 25 projects active within West Melbourne, yielding 2,900 plus&nbsp;dwellings in development, as opposed to 374 short-term accommodation suites (serviced apartment and/or hotel uses). The figure of 374&nbsp;represents a roughly 13% share of rooms in development for the suburb.

Joining the would-be 437-441 Spencer Street are three additional projects which hold approval.&nbsp;Adina Grand Apartment Hotel has signed on to the <a href="/buildings/west-end-185-rosslyn-street-west-melbourne">West End</a> development diagonally opposite&nbsp;437-441 Spencer Street, whilst&nbsp;<a href="/developments/west-melbourne-vic-3003">77-79 Capel Street</a>&nbsp;is approved as a boutique hotel development.

In addition, Apartments.com.au last week revealed Marriott International&#39;s <a href="/news/marriott-international-scopes-a-new-west-melbourne-address">intentions to operate a Courtyard by Marriott branded hotel at 50-56 Batman Street, West Melbourne</a>.

<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/capi_7d198c16dd46b28a947ed21f23c83398_0a63a09489b1d7b913ed960139106847.jpeg" rel="gallery-all" title="artist’s impression of what the new Adina Grand Apartment Hotel at West End. Image: TFE Hotels"><img alt="" class="image-article-full-width-580px" height="327" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/capi_7d198c16dd46b28a947ed21f23c83398_0a63a09489b1d7b913ed960139106847.jpeg?itok=zu9qNZdg" title="artist’s impression of what the new Adina Grand Apartment Hotel at West End. Image: TFE Hotels" width="580" /></a>

<figcaption>Artist&rsquo;s impression of what the new Adina Grand Apartment Hotel at West End. Image: TFE Hotels</figcaption>
</figure>

West Melbourme

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