Australia's leading visionary placemakers,&nbsp;<a href="https://www.apartments.com.au/developers/walker-corporation">Walker&nbsp;Corporation</a>, has unveiled an exclusive collection of four dual-level penthouses at <a href="https://www.apartments.com.au/new-apartments/sol-by-walker-maroochydore-first-avenue-maroochydore-qld-4558">SOL by Walker</a>, redefining luxury living within the heart of the vibrant Maroochydore City Centre.

Positioned atop the precinct’s tallest residential tower, The Penthouse Collection crowns SOL’s first stage and comprises four three and four-bedroom + MPR residences designed to capture uninterrupted views across the Coral Sea, Maroochy River, Point Cartwright and the Sunshine Coast Hinterland.

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Each penthouse is arranged across two levels, with upper-level multi-purpose spaces opening to expansive wraparound terraces and private rooftop plunge pools, a rare configuration in the local market that blends apartment convenience with the scale and privacy more typically associated with standalone homes. Private lift access and generous internal areas further reinforce the collection’s owner-occupier focus.

Interiors have been curated by Melbourne-based studio <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a>, with material palettes drawing directly from the Sunshine Coast’s coastal and hinterland landscapes. Founder Miriam Fanning said the design approach was grounded in a sense of place and longevity.

“Our approach aimed to capture the essence of the Sunshine Coast and the enviable ease of coastal life,” Fanning said. “The material palette draws from the changing tones of the landscape, layered with brushed metals, textured ceramic tiles and natural timber to create a sense of warmth and permanence.”

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Across the residences, kitchens are appointed with Onde Rossa marble benchtops, Verde Atlantis marble accents and premium Miele and Sub-Zero appliances, while bathrooms are finished in limestone with mosaic detailing. Terracotta marble defines entry spaces and private wine cellars, underscoring the bespoke nature of the interiors.

Walker Corporation Group Executive of Development Peter Saba said the exclusive collection reflects shifting demand for high-quality, low-maintenance homes that do not compromise on space, privacy or outlook.

“Our Penthouse Collection perfectly captures the essence of Maroochydore’s coastal beauty and lifestyle, setting a new benchmark for luxury city living on the Sunshine Coast with panoramic views of the region,” Saba said.

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“These residences cater to the growing mix of people choosing to live and invest on the Sunshine Coast, adding to the diversity of high-quality homes available at SOL by Walker. The strong waitlist and near sell-out of the first SOL tower reinforce confidence in the region’s transformation into a modern, connected coastal city.”

SOL by Walker forms part of the broader Maroochydore City Centre project, being delivered by Walker in partnership with Sunshine Coast Council and SunCentral. Once complete, the precinct will introduce new residential, commercial and retail offerings to the city centre, supported by major public investment ahead of the 2032 Olympic Games.

Construction of SOL’s first tower is well underway, with completion targeted for late 2027, while Tower 2 is expected to follow in early 2028.

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Joel Robinson

Rare new Maroochydore penthouses revealed at SOL by Walker

<a href="https://www.apartments.com.au/developers/mirvac">Mirvac</a> has been developing residential property across Australia for more than five decades. Over the past 10 years, the ASX-listed developer has placed a strong emphasis on sustainability, championed through its This Changes Everything initiative, while more recently diversifying its portfolio with an expansion into the build-to-rent sector.

Central to Mirvac’s approach in recent years has been a focus on how residents will not only enjoy their apartments, but how well each development supports day-to-day lifestyle needs. <a href="https://www.apartments.com.au/new-apartments/trielle-at-yarra-s-edge-docklands-16-point-park-crescent-docklands-vic-3008">Trielle</a>, Mirvac’s latest instalment within its Yarra’s Edge precinct on the Docklands waterfront, is arguably the developer’s most amenity-rich project to date.

With extensive facilities designed for both work and leisure, residents could technically spend an entire day within the tower without needing to leave. Two dedicated spaces cater specifically to working from home: The Biblioteca and The Mills Place Work From Home Pods.

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The Biblioteca, a library designed for quiet work and reading, occupies a peaceful corner of Trielle overlooking the Promenade Grove and Point Park. The Mills Place Work From Home Pods, located on the ground floor, offer bookable office spaces and work pods available for short sessions or full-day use.

With the working day covered, the building’s amenity extends seamlessly into leisure and downtime, just a lift ride away.

One of the most striking inclusions in Trielle’s extensive amenity offering is The Oasis Wellness Club, a verdant urban rainforest complete with a stream-inspired water feature, located seven storeys above the Yarra’s Edge promenade. Designed in collaboration with luxury spa expert Naomi Gregory, The Oasis delivers a Scandinavian-inspired wellness experience, offering residents a tranquil, resort-like setting designed to accommodate spa-style treatments and contrast hydrotherapy as part of daily rituals.

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The wellness offering also includes a biophilic gym equipped with state-of-the-art equipment, along with a yoga and Pilates studio, sauna, hot magnesium pool, cold plunge, 25-metre indoor pool and a spa.

Trielle also places a strong emphasis on socialising. Among the most indulgent spaces is The Salone Piano Bar, an intimate lounge featuring richly textured interiors and north-facing river views. Positioned just 14 metres from the river’s edge, the space invites residents to unwind to the sounds of a self-playing piano.

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Adjacent to the piano bar is the Chef’s Table dining room, designed for private dinner parties and featuring a striking natural stone table and an impressive wine fridge. Residents can book the space via the building’s dedicated concierge service or through the integrated building app.

Additional amenities include a cinema room, games room with adjoining teppanyaki barbecue and alfresco space, golf simulator, sunken fire pit, and even a dedicated dog wash bay. Mirvac’s in-house construction arm is tracking toward a mid-2027 completion, delivering what is set to be one of Melbourne’s most comprehensive and impressive residential amenity offerings.

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The strong response from buyers to Trielle’s facilities has influenced Mirvac’s broader Melbourne pipeline. At its nearby development, <a href="https://www.apartments.com.au/new-apartments/the-albertine-by-mirvac-melbourne-31-queens-lane-melbourne-vic-3004">The Albertine</a>, located just off St Kilda Road opposite Albert Park Lake, the Mirvac Design team has again placed a strong emphasis on lifestyle amenity, carefully scaled to suit the building’s density.

At The Albertine, health and wellness take centre stage through The Circadian Club, a suite of well-being-focused facilities including a swimming pool, magnesium spa, sauna, cutting-edge gymnasium, and yoga studio, all designed to support residents’ physical and mental health.

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Residents of The Albertine are offered an elevated experience with The Elysian Room, a private dining room located on Level 10. Flowing seamlessly onto The Terrace, this outdoor retreat captures panoramic Melbourne views and is wrapped in lush, ASPECT Studios–designed landscaping of native plants and ferns, forming a serene garden oasis above the city.

Mirvac topped out The Albertine in late 2025 and is targeting completion of the 98-apartment development in mid-2026.

Mirvac’s amenity-first approach reshapes apartment living in Melbourne

The first tranche of residents has moved into <a href="https://www.apartments.com.au/new-apartments/highett-common-37-graham-road-highett-vic-3190">Highett Common</a>, Victoria’s first medium-density, Net Zero-targeted masterplanned community in the heart of Bayside.

Developer <a href="https://www.apartments.com.au/developers/sunkin-property-group">Sunkin Property Group</a> has completed the first two buildings, North Lane and Park House, within the landmark 9.3-hectare precinct. Four hectares of the well-connected site have been reserved for public parkland, including one hectare dedicated to a children’s playground and social spaces, and a further three hectares retained as a conservation reserve to protect native species and enhance the local environment.

Sunkin’s construction arm, <a href="https://www.apartments.com.au/builders/sk-construction">SK Construction</a>, is now progressing the next stage of residences as part of the Mews Collection, as the team prepares to launch the most boutique building within the neighbourhood. The latest release, Habitat, comprises just 57 one, two, and three-bedroom apartments, with pricing starting from under $600,000. Designed by <a href="https://www.apartments.com.au/architects/clarke-hopkins-clarke">Clarke Hopkins Clarke</a>, Habitat has been conceived as a refined expression of bayside living, placing nature, community and design longevity at its core.

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“Habitat at Highett Common is an exclusive offering meticulously designed to reflect the character of the local Bayside area,” said Scott Jessop, Head of Sales &amp; Marketing at Sunkin Property Group. “It’s a highly considered release within a precinct that continues to gain momentum on every front.”

Connection to nature has guided the architectural response, with apartments oriented to maximise natural light, outlooks and indoor–outdoor flow. Balconies and terraces extend living spaces into the surrounding landscape, reinforcing the project’s strong relationship with its parkland setting.

“Apartments have been designed to maximise this connection to nature from indoor to outdoor spaces through adjacent balconies and terraces, and proximity to public parks and open spaces,” said Clarke Hopkins Clarke Partner Toby Lachlan. “Highett Common as a whole was designed to maximise connection to nature and a Bayside lifestyle, and Habitat is really at the heart of that.”

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Habitat also occupies a central social position within the precinct, directly connected to Highett Common’s new library and café. These community amenities have been designed to encourage daily interaction and foster a genuine neighbourhood feel.

Interiors continue the theme of warmth and longevity, with light-filled layouts, timber detailing and carefully selected materials. Buyers can personalise their homes through a range of customisation options, while kitchens act as the centrepiece of each apartment. Options include sculptural or freestanding island benches, paired with Bosch appliances and induction cooktops.

Clarke Hopkins Clarke Associate Interior Designer Michelle Cavicchiolo said the interiors were designed with a timeless sensibility. “The materials, fixtures and fittings have been selected for longevity,” she said. “All of these features, along with functional apartment layouts, contribute to a premium aesthetic.”

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Beyond Habitat, residents will enjoy access to a growing suite of shared amenities across Highett Common, including indoor and outdoor pools, a gym, wellness areas, cinema and resident lounge. Highett Station is just two minutes away, providing easy access to Melbourne’s CBD, while the cafés, shops and dining along Highett Road add everyday convenience.

For prospective buyers, the timing is compelling. Off-the-plan purchasers may be eligible for stamp duty savings of up to $85,000, while changes to the First Home Owners Guarantee Scheme from October 2025, including higher price thresholds and the removal of income caps, are expected to broaden access to Bayside living.

“There’s never been a better time to take advantage of our newest stage,” Jessop said. “With a wealth of customisation available, buyers can truly create the home of their dreams in one of Melbourne’s most desirable middle-ring Bayside suburbs.”

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The arrival of the first residents has been timed to coincide with the launch of the Highett Common Connect app, reinforcing the precinct’s strong focus on connection and community from day one. Designed to simplify daily life, the app brings building information, shared amenities and community activity into one easy-to-use platform. From booking facilities and receiving building updates to accessing move-in guides, safety procedures and appliance manuals, residents have everything they need at their fingertips.

The app also supports social connection, allowing residents to view and join community events, organise interest groups, and engage through a community hub and marketplace. Practical features such as maintenance reporting, real-time notifications and a shared calendar help streamline everyday living and support a more connected community.

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Highett Common takes shape as first residents move in

Design-driven apartment developer <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> has unveiled its most prestigious collection of residences at <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, a new nature-led neighbourhood being delivered on an unrepeatable 11,700-square-metre site neighbouring the heritage-listed Rippon Lea Estate.

The latest and final release, The Garden Pavilion, is the jewel of the garden precinct. Comprising just 22 residences, and the largest apartments in the development, the collection is housed within its own low-rise building, one of six buildings across the precinct designed by <a href="https://www.apartments.com.au/interior-designers/woods-bagot">Woods Bagot</a>. The architecture is defined by a tiered form wrapped in cascading greenery, reinforcing the project’s strong connection to its surrounding landscape.

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Marking the next chapter in an ongoing collaboration with Milieu, award-winning design studio <a href="https://www.apartments.com.au/interior-designers/flack-studio">Flack Studio</a> have delivered an interior design scheme rich in expressive materials with an intriguing use of colour and meticulous detailing, designed to compliment a considered selection of furnishings and art.&nbsp;

Three-bedroom residences, each with either two or three car spaces, start from $2,145,000 and feature terraces that wrap around the entire apartment. The two four-bedroom penthouses are the crowning jewel of both the Garden Pavilion collection and the wider Elsternwick Gardens neighbourhood.

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Priced at $6.75 million, the luxury penthouse includes six private and secure garage spaces, two-and-a-half bathrooms, separate sunrooms, and a feature fireplace in the living room, opening onto a private, landscaped terrace complete with an integrated outdoor kitchen, swimming pool, and sweeping views across the neighbouring Rippon Lea Estate gardens.

Milieu is creating a garden-focused project designed to feel like an extension of the Rippon Lea Gardens, which date back to the early 19th century. Residents will enjoy private, direct access to the gardens via a gated entryway, accessible only by key fob, ensuring the precinct does not become a public thoroughfare. This level of private access is a point of difference unmatched by any other residential project in Melbourne.

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The gardens at Elsternwick Gardens have been curated by multi-disciplinary design studio, OCULUS with over 40% of the site dedicated to landscaping and green space.&nbsp; Once completed, the gardens will be maintained by the gardeners of the National Trust, the team responsible for the exquisite adjoining gardens of Rippon Lea Estate. Future residents will also enjoy private access to the neighbouring gardens during their opening hours.&nbsp;

Residents will also have private access to an extensive suite of wellness amenities, including a gym, Pilates and yoga studios, infrared saunas, mineral pools, and a golf simulator. Shared resident lounges, workshops and pet care facilities further enhance the sense of community within the precinct.

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Consistent with the broader development, Garden Pavilion is entirely fossil-fuel-free and shaped around passive design principles. Cross-flow ventilation, high levels of insulation, heat pump hot water systems and thermally broken double glazing aim to reduce energy consumption, while electric vehicle infrastructure and a carbon-neutral energy supply reflect Milieu’s commitment to future-focused living. Rainwater harvesting, waste-stream separation and significant planting further reinforce the project’s sustainability credentials.

The Garden Pavilion release follows the success of the first two offerings, Ripponlea Terrace and Gordon Place, where apartments were secured predominantly by local owner-occupiers and downsizers.

Milieu Founder and Managing Director Michael McCormack describes Elsternwick Gardens as “a once-in-a-lifetime opportunity to build something truly special,” pointing to the project’s extensive community engagement and its landscape-led response to the site’s historic character.

Construction commenced last year, with Brady Constructions targeting completion in early 2027.

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Milieu launches The Garden Pavilion, Elsternwick Gardens’ most prestigious release

Plans have been revealed for the new city centre at Bradfield,&nbsp;offering the first detailed look at how one of the key development sites around the new Western Sydney Aerotropolis could take shape as the city centre evolves.

Project management and construction management firm&nbsp;Creative Vision&nbsp;filed the plans for development on behalf of Bradfield Corporation.

The 20,000 sqm site at 135 Badgerys Creek Road will home a new large-scale residential, commercial and civic precinct designed to anchor early growth in the Bradfield City Centre.

<img alt="First look: Mixed-use development proposed for Bradfield’s future city centre" data-entity-type="file" data-entity-uuid="6716793f-94eb-4897-994f-c7d7c56b87a2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bradfield%20da%201.png?VersionId=UvOngnIxqXO1Q3vtTn5UjB.JKRkZ.Gcd" />

The concept application seeks approval for a mixed-use residential and commercial development comprising multiple buildings arranged around new public spaces, pedestrian connections and internal streets. According to the submitted design documentation, the proposal is intended to establish a "high-density urban core that supports both employment and housing outcomes within the Western Sydney Aerotropolis."

The development includes a substantial residential component, around 400 apartments, alongside commercial uses such as offices, retail and services, with buildings ranging in height to form a defined skyline and a strong street presence along key movement corridors. Full-scale architectural renders included in the design report illustrate a cluster of mid- to high-rise forms with articulated facades, deep setbacks and landscaped podiums.

<img alt="First look: Mixed-use development proposed for Bradfield’s future city centre" data-entity-type="file" data-entity-uuid="1e097164-71ac-406f-87a6-cf49538c31f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bradfield%20da%202.png?VersionId=lFTgCjE2Q9BRewayz4_ksufCPSPjCmM." />

In outlining the urban design intent, the Architectural Design Report by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> notes that the proposal “has been structured to create a connected, walkable precinct that prioritises public domain, legibility and long-term flexibility as Bradfield grows.” The report adds that the arrangement of buildings and open spaces is intended to “support a mix of residential and employment uses while allowing future stages to respond to evolving market and infrastructure conditions.”

Public open space forms a central part of the concept, with landscaped plazas, green links and pedestrian routes designed to integrate with the broader Bradfield City Centre masterplan. The design report states that the open space network is conceived as “a civic framework for the precinct, providing places for gathering, movement and everyday activity rather than residual space between buildings.”

<img alt="First look: Mixed-use development proposed for Bradfield’s future city centre" data-entity-type="file" data-entity-uuid="de475ae8-9856-436c-9003-115c40110c71" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bradfield%20da%203.png?VersionId=RjCNTGInRYsgN.8jKaKjvpZJ.V6ZcWTL" />

The application has been lodged as a State Significant Development, reflecting both the scale of the proposal and its strategic importance within the Aerotropolis. As a concept SSDA, the submission focuses on overall land use, building envelopes, heights and public domain outcomes, with detailed design to be resolved through future stages.

Bradfield’s future city centre revealed ahead of Western Sydney International Airport's 2026 opening 

Andrew Hanlan

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EXPERT OBSERVATION 
Business conditions and business confidence remained deeply negative in May - despite a bounce from the extreme lows of April, when the nation was in a partial lock-down (particularly for “non-essential” workers). 
That was a key finding from the NAB business survey conducted from May 19 to June 1. The previous survey was taken from April 23 to 30. 
Business conditions rose from -34 to -24 in the month. That is still below the low point in the GFC, of -16.5, but above the 1990s recession low of -39. 
This bounce in conditions occurred as restrictions started to ease and the economy slowly reopened, albeit a reopening that is uneven across sectors and across states. 
Business confidence, having collapsed to a never before seen low of -65 in March, has clawed its way back to be around “recession levels” in May, at -20. That compares to the lows in the past cycles of, -30 during the GFC and -23 in 1990. 
Clearly the situation remains fluid and fast moving. The continued easing of restrictions in June will see a further bounce in business conditions. 
Even so, the detail of this report - which was weak to very weak - highlights that a return to business as usual is still some way off. 
Forward orders were extremely weak for a third consecutive month, at -29, showing only limited improvement from the -35 recorded in April.
Considerable space capacity has emerged in the wake of this economic recession, with capacity utilisation at 74.5 in May. That is up from an extreme of 71.9 in April but compares to around 82 during the second half of 2019. 
Against this backdrop of excess capacity, continued sharp falls in new orders and an uncertain outlook the business sector is downbeat on hiring and investment the survey finds.
The detail around business conditions for May was: trading conditions rose from -31 to -18; profitability moved from -35 to -19; while employment showed very little improvement, edging up from -34 to -31. 
The capital expenditure index rose from -32.7 to a still very weak -21.6. The path of retail spending and business investment spending will be very different as the economy reopens and recovers from this recession. 
By state, NSW is outperforming, with business conditions lifting to -13 as the state reopens earlier than in some other jurisdictions. Across the other mainland states readings for May were: Victoria, -25; Qld, -27; SA, -33; and WA, -35. 
By industry, business conditions rebounded in retail, which has begun to reopen on an easing of social distancing measures.
Across other sectors, conditions are mixed, reflective of the staggered re-opening and the challenges created by the pandemic and the recession. Recreation &amp; personal was still deeply negative at -37 with many venues yet to re-open. The finance, business &amp; property industry group was also deeply negative, stalling at around -27. 
Andrew Hanlan is an economic analyst at Westpac
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j.ballantyne1990-6AQqhLzZaK

Business conditions still deeply negative despite bounce: Andrew Hanlan

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In the month of March, the import bill declined by $0.5bn, down by 1.5%, to $34.4bn. Weakness in the month was driven by volatility in transport equipment (both capital and consumer) - stripping this out, imports rose by 0.7% in March.
The export detail remains volatile, with temporary supply disruptions a factor. In the month of March, metal ores slumped by $1.2bn, largely as anticipated, as iron ore shipments were delayed by Cyclone Veronica. Coal exports rose by $0.8bn, on a rebound in volumes, while gold fell back by $0.6bn, off a high base.
For the March quarter, the ABS advise that the trade surplus widened to $14.2bn from $8.6bn in Q4, an improvement of $5.6bn.
<a href="https://www.propertyobserver.com.au/images/2019/5/7/trade%201.jpg" target="_blank">Click here</a> to enlarge: 
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Key to this development was higher commodity prices, which boosted export earnings. The terms of trade increased in the order of 3% in the quarter, we estimate.
Export earnings in Q1 rose by a little over 3.5%, while the import bill actually shrank, down by 1.4%.
Our preliminary calculations suggest that: export volumes expanded modestly in the quarter, up by almost 0.5%, with a sharp rebound in gold off a low base a key positive; and imports were soft in the quarter, contracting by almost 1.5%, against the backdrop of patchy domestic demand across the private sector.
<a href="https://www.propertyobserver.com.au/images/2019/5/7/trade%202.jpg" target="_blank">Click here </a>to enlarge: 
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On these preliminary calculations, real net exports likely added to activity in Q1, potentially in the order of 0.3ppts to 0.4ppts. This is an upside surprise to our forecast of +0.1ppt – albeit largely driven by falling imports (a sign of domestic weakness) rather than by strength in exports.
Such an outcome represents a turnaround from the December quarter 2018, when net exports subtracted 0.2ppts from activity as export volumes declined by 0.7%, dented by the impact of the drought and temporary disruptions in the resources sector.
<a href="https://www.propertyobserver.com.au/images/2019/5/7/trade%203.jpg" target="_blank">Click here</a> to enlarge:
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Key points:
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•In March, the trade surplus remained elevated at $4.9bn, only down a little from a record high of $5.1bn for February (revised up from $4.9bn).
•The March outcome exceeded expectations (market median $4.5bn and Westpac $4.2bn).
•Imports were the main surprise, falling by a further 1.5%, rather than rebounding by 1.0% as we anticipated.
•Exports fell but by somewhat more than anticipated, down by 1.8% v's a forecast -0.6%
•For the March quarter, the ABS advise that the trade surplus widened to $14.2bn from $8.6bn in Q4, an improvement of $5.6bn.
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Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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Australia's trade account, surplus elevated at a near record high: Andrew Hanlan

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In February, the trade surplus climbed to a record high of $4.8bn, up from $4.35bn in January, eclipsing the previous record of $4.6bn in December 2016. The February result exceeded expectations (market median $3.7bn and Westpac $3.8bn).
Imports surprised to the low side, declining by 1.1%, whereas we anticipate a rise of 1.1%. A drop in fuels was the source of weakness.
Exports provided an upside surprise, increasing by 0.2% vs a forecast decline of 0.9%. Notably, the expected pull-back in gold failed to materialise.
More fundamentally, a key dynamic driving a widening of the trade surplus is the boost to export earnings from higher commodity prices, notably for iron ore and coal.  Total exports in February are 13.2% above the level of a year ago, outstripping a 4.4% rise in imports.
<a href="https://www.propertyobserver.com.au/images/2019/4/3/TRADE%201.jpg" target="_blank">Click here </a>to enlarge: 
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Metal ore exports (including iron ore) jumped in February, as anticipated, up by $1.0bn to $9.6bn - which is also a record high. Recall, the iron ore price leapt to US$85/t in the month as global supply was dented by the tailings dam disaster in Brazil. Iron ore is now trading close to US$90/t.
The trade surplus in the March quarter to date is running at $4.6bn a month, well up from $2.9bn per month in the December quarter. The bulk of this improvement likely reflects higher commodity prices.
The lift in commodity prices is boosting Australia's national income, which is flowing through to higher tax revenues - providing governments with additional fiscal flexibility, as evident in recent budget updates. However, despite this, wages growth remains sluggish.
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In February, the import bill declined by 1.1% to $35.0bn. Key to the fall was a drop in fuels, down $344mn. Imports ex fuel were broadly flat in the month, inching 0.1% lower. Similarly, for the March quarter to date relative to the December quarter, fuels are tracking sharply lower - likely a mix of lower prices and lower volumes.
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Export earnings inched 0.2% higher in the month of February. As noted above, metal ores (including iron ore) jumped by $1.0bn to $9.6bn, a record high - driven by rising prices. Coal fell by $0.8bn on lower volumes. For the quarter to date, export earnings are up by around 4% on the December quarter - led higher by metal ores and gold, as well as rural goods, more than offsetting a softening for coal.
ANDREW HANLAN is a senior economist for Westpac
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Australia's trade account, surplus hits record high on higher iron ore price: Andrew Hanlan

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GUEST OBSERVER
Construction work, which is trending lower, stabilised in Q4, -0.2 percent, after a surprising sharp fall in Q3, -4.4 percent.
Construction work has been trending lower over recent years as mining investment falls back to more normal levels.
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Within that trend, the second half of 2016 was a volatile half year.  Q3 was particularly weak, -4.4 percent, in part due to bad weather. Q4 saw construction work stabilise at lower levels, -0.2 percent.
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The Q4 result was not greatly different to our expectations (Westpac f/c -0.8 percent and market median +0.5 percent).
The outcome does not alter our views on Q4 GDP, with our forecast at 0.4 percent/qtr, 1.5 percent/yr after a Q3 outcome of -0.5 percent/qtr, 1.8 percent/yr.
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By asset, key points are:
Private infrastructure activity fell further, -3.5 percent, with the mining investment downturn nearing its end. We had expected a sharper fall, -6 percent.  New home building activity advanced, +0.9 percent, consistent with strength in building approvals and a sizeable work pipeline. That follows a surprise 1.9 percent fall in Q3, constrained by bad weather.
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Renovation work rose 2.2 percent, more than reversing a 0.3 percent dip in Q3, consistent with rising approvals and positive fundamentals. 
Private commercial building rose 5.1 percent, after a sharp 10.8% fall in Q3, a decline that was overdue given earlier falls in approvals. More recently, approvals have lifted.
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Public works surprised to the low side, declining by 1.6 percent, whereas we had anticipated a rise of 1.6 percent. Public building work fell sharply, while public infrastructure activity consolidated in the quarter whereas a sizeable and rising work pipeline points to upside.
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.linkedin.com/in/andrew-hanlan-4302223/" target="_blank">here</a>. 
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Andrew Hanlan

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