Adding to Chatswood’s growing skyline, <a href="https://www.apartments.com.au/new-apartments/the-anderson-chatswood-54-56-anderson-street-chatswood-nsw-2067">The Anderson</a> is grounded in a simple principle: apartment living in a major centre does not have to come at the expense of space and outlook.

Set on Anderson Street in the heart of <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a>, the new residential tower, a collaboration between developers <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a> and <a href="https://www.apartments.com.au/developers/huirong-group">Huirong Group</a> with architecture and interiors by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, will introduce 122 apartments that prioritise generous proportions, considered orientation, and a strong connection to the surrounding heritage precinct.

The design originated from a Design Excellence Competition, where AJC proposed a building that combines suburban-style apartment scale with the density expected in a transport-rich centre. The development will include more than 1,800 square metres of retail and commercial space at street level, landscaped communal roof terraces, and a ground-floor pocket park framed by canopy trees. Together these elements aim to create a building that integrates with Chatswood’s evolving streetscape while maintaining a strong residential focus.

[smartcode_project:default project_id=151353 project_image_fid=353250]

A key driver behind the architecture was the desire to deliver family-sized apartments rarely seen in the Chatswood market. The Anderson includes a mix of one to four-bedroom apartments, with around 35 per cent of the residences configured as three or four-bedroom homes. At the top of the building, two double-storey penthouses span approximately 200 square metres each, reinforcing the project’s emphasis on scale and long-term liveability for both downsizers and intergenerational households.

Orientation and outlook were central to the planning of the building. The apartments are positioned to maximise views to the north and east across Chatswood’s heritage precinct, with upper levels capturing glimpses of the Pacific Ocean. South-facing apartments gain distant views toward the Sydney CBD and Harbour Bridge, while the building’s configuration intentionally reduces western exposure at lower levels to minimise overlooking toward the nearby railway corridor.

The external design references the character of the surrounding conservation area without replicating it directly. A brick podium anchors the building to the street and introduces a series of architectural portals that draw inspiration from the nearby Chatswood Presbyterian Church. Above this base, the tower shifts to a lighter, more open expression defined by horizontal lines and carefully detailed balconies that balance privacy with outward views.

[smartcode_project:default project_id=151353 project_image_fid=353254]

Toward the top of the tower, AJC introduces a distinctive lantern-like element formed by sliding screens. These screens provide both solar shading and privacy while also creating a visual marker for the building within the Chatswood skyline. The feature reinforces the architectural intent of the project, a structure that is visually refined while still responding to the practical requirements of apartment living.

Inside the residences, interior architecture by Hayball focuses on clear spatial flow and practical everyday use. Open-plan living areas connect directly to large balconies, extending the internal living spaces outward and allowing natural light to move deeper into the apartments. Kitchens are designed as central working spaces with premium appliances and carefully selected materials, positioned to serve both daily living and entertaining.

[smartcode_project:default project_id=151353 project_image_fid=353256]

Bathrooms follow a similarly restrained design language, using refined fixtures and materials to create calm, functional spaces, while wardrobe areas adopt a gallery-style layout with integrated lighting and generous storage. These elements reflect a broader design approach that prioritises clarity, functionality, and durability over decorative gestures.

Positioned just a short walk from Chatswood Interchange, residents will have direct access to rail, metro, retail, and dining. The Metro extension allows travel from Chatswood to Martin Place in approximately 11 minutes, placing the CBD within easy reach for residents while maintaining the convenience of a walkable North Shore neighbourhood.

One-bedroom apartments at The Anderson start from $1,022,000.

[smartcode_project_cta:default project_id=151353]

Joel Robinson

How AJC designed The Anderson to bring oversized apartment living to Chatswood

<a href="https://www.apartments.com.au/developers/bridgewell-development">Bridgewell Capital</a> has lodged plans for a major mixed-use apartment development in the heart of Maroubra, seeking a significant uplift in height and density controls to deliver 120 apartments and a 120-place childcare centre near Maroubra Junction.

The State Significant Development application, filed through the NSW Government’s Housing Delivery Authority pathway, covers a 3,270 sqm amalgamated site at 251-257 Maroubra Road and 133-135 Garden Street. The proposal includes a concurrent rezoning that would increase the maximum building height from 12 metres to 35.6 metres and lift the floor space ratio to 4.02:1.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the project would replace a mechanic’s workshop and several detached homes with a 10-storey residential building above four basement levels.

The scheme comprises 120 apartments, including 27 affordable housing units to be managed by a community housing provider for 15 years, alongside 203 basement car spaces and 92 bicycle spaces. A childcare centre occupying nearly 900 sqm of floor area would sit at ground level and be capable of accommodating 120 children and 22 staff.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="038a0639-f9e4-4303-8fcc-d43e73fa480f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20pers.png?VersionId=eGBElxmNqJW.YF3JFYgHTnPgAstdyXR3" />

According to the Design Report, the project has been conceived as a “gateway proposal” that responds to Maroubra’s evolving urban character and its proximity to the town centre.

“Designed to complement the character of Maroubra’s town centre, this gateway proposal features a building scale that matches its surroundings,” the report stated.

“It integrates residential units above a ground-level childcare centre, fulfilling the strategic objectives of the Randwick City Council Masterplan.”

The apartment mix is weighted toward larger residences aimed at families and downsizers, reflecting changing demographics in the Randwick LGA and increasing demand for medium-density housing close to transport and amenity.

BKA Architecture said the proposal seeks to reinforce Maroubra Road as a civic spine while improving the pedestrian experience around the site through landscaping and upgraded public interfaces.

“The design capitalises on the following site opportunities: reinforcement of Maroubra Road as a civic spine, enhancement of pedestrian pathways and the public interface via new landscaping, and strong market demand for two and three-bedroom apartments to support families and down-sizers,” the Design Report noted.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="ee509779-3c7e-4918-b03d-761c785459d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20site.png?VersionId=eZC4Ruyn.C7O.Qwfr1SVeP5.ds1c5.66" />

The building has been designed with setbacks and articulation intended to transition between the commercial intensity of Maroubra Junction and the surrounding lower-scale residential neighbourhoods. Communal open space is proposed on level one, while upper-level apartments would secure views towards Port Botany, Maroubra Beach and Sydney’s eastern suburbs.

The development sits around 200 metres east of the Maroubra Junction intersection of Anzac Parade and Maroubra Road, within one of Randwick’s identified strategic centres. The site is close to Pacific Square Shopping Centre, major bus routes, schools, parks and future cycling infrastructure proposed under the Maroubra Junction Masterplan.

The Maroubra proposal aligns with broader NSW Government initiatives encouraging higher-density housing near established centres and transport corridors, particularly where affordable housing is incorporated.

Bridgewell is also working on a <a href="https://www.apartments.com.au/news/qld/goldfields-sets-the-stage-as-quartet-milton-launches">new 55-unit project in Killara</a>.

First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre

National diversified developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has launched its latest Brisbane apartment project, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet Milton</a>, marking its entry into the sought-after inner-city suburb just two kilometres from the CBD.

The circa $100 million development will rise 18 storeys and deliver 131 apartments, offering a mix of one, two-, and three-bedroom residences.

Ideally located on Manning Street, Quartet residents will be within 300 metres of Milton Station, 500 metres from the Milton Ferry Wharf, and a short walk to Milton Markets, the iconic Park Road, as well as a range of breweries and cafés.

[smartcode_project:default project_id=108736 project_image_fid=367993]

Designed by architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, the building features a simple, gridded façade paired with generous glazing to enhance views, maximise aspect, and capture both sunrises and sunsets from within the apartments and their generously sized balconies.

Residents will have access to a 1,000 sqm rooftop, curated to balance wellness and entertaining, in response to increasing demand for wellness-focused shared spaces.

"We've approached Quartet Milton as a complete lifestyle offering, not just apartments, but a place where the design, amenities, and location all work together in a meaningful way," says Goldfields Managing Director Lachlan Thompson.

"Buyers are looking for that sense of confidence, knowing the vision has been carefully thought through not just by us as developers, but by all our consultants appointed to bring this together, and that it will be delivered to the standard they expect."

[smartcode_project:default project_id=108736 project_image_fid=368000]

Cera Stribley Co-Founder and Managing Principal Domenic Cerantonio said the rooftop is designed to feel like a place "you'd genuinely use every day."

"A 25-metre pool framed by city and mountain views, wellness areas, and private dining spaces for evenings with friends create a setting designed for year-round comfort and effortless Brisbane living."

[smartcode_project:default project_id=108736 project_image_fid=367999]

In addition to the 25-metre pool, the rooftop will include a sauna, cold plunge, fully equipped gym, and zen gardens, all complemented by panoramic views of the city and river.

While the building is expected to appeal predominantly to owner-occupiers, Goldfields anticipates interest from investors seeking strong rental returns, driven by the project's design, location, and the city's projected capital growth in the lead-up to the 2032 Brisbane Olympics.

[smartcode_project:default project_id=108736 project_image_fid=367991]

<a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>, widely regarded as one of Brisbane's most desirable inner-ring suburbs due to its lifestyle offering and proximity to the CBD, has experienced a shortage of new apartment supply in recent years.

Goldfields is already active in the Brisbane residential market through its Ripley Valley masterplanned community, Hayfield. The 109-hectare neighbourhood is already home to more than 300 families and features a large community park.

Plans for the precinct include a 4 km running track, future schools, and retail and commercial amenities, all within a 35-minute drive of the Brisbane CBD.

Goldfields also plans to deliver a new mixed-use tower at 88 Robertson Street in Fortitude Valley, within the James Street precinct. The project will include 16,000 sqm of boutique commercial space, a level of wellness facilities, and a rooftop restaurant and event space, akin to Goldfields House in South Yarra, its flagship mixed-use development on Chapel Street, which is crowned by the Beverly Rooftop bar, one of Melbourne’s best-known venues.

[smartcode_project_cta:default project_id=108736]

Goldfields sets the stage as Quartet Milton launches

<a href="https://www.apartments.com.au/developers/stockland">Stockland</a> and Homes NSW have taken the next major step in the transformation of Waterloo Estate, lodging a Concept State Significant Development Application and concurrent rezoning proposal for the renewal of Waterloo South.

The proposal, now on public exhibition, outlines plans for around 3,300 new homes across the 12.3-hectare precinct. A minimum 30 per cent of residential gross floor area will be delivered as social housing, approximately 20 per cent as affordable housing, and a maximum 50 per cent as market housing. The redevelopment would more than quadruple the number of homes currently on the site and more than double the existing supply of social and affordable housing.

The renewal of Waterloo South forms the first stage of the broader Waterloo Estate transformation and is set to unfold over the next 10 to 15 years. The estate currently contains 750 social housing dwellings and 120 private homes.

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="ba2da34b-171b-4ff1-b0c7-4baf0bce97f2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Waterloo%20public.png?VersionId=S5apPKOqjPHJhk_SzCvdVPxsEBYs300o" />

The proposal, prepared by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> and Beam Planning, spans 10 street blocks bounded by Cope, Raglan, George, Wellington, Gibson, Kellick, Pitt and McEvoy Streets, directly adjoining the Waterloo Metro Station precinct and within walking distance of Redfern and Green Square stations.

Under the masterplan, building heights would range from two to 33 storeys, delivering approximately 282,485 sqm of residential floor space alongside at least 10,000 sqm of non-residential uses and a minimum 5,000 sqm of community space. The planning framework has been specifically structured to support the mixed-tenure outcome, with the residential gross floor area capped at a maximum 50 per cent market housing allocation.&nbsp;

The Urban Design Report describes the vision as creating “a unique and vibrant mixed-tenure housing precinct that supports the needs of the community and delivers much needed housing in response to National and State Government priorities.”&nbsp;

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="6e1a6d8b-0626-4fa7-94fc-aa91c0af86dc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/waterloo%20per.png?VersionId=duyiJTFOeezTNdM22leI3SoHuqnW6ZaY" />

A major focus of the revised proposal has been increasing the social and affordable housing component. The Minns Government increased the affordable and public housing allocation from 35 per cent to 50 per cent after coming to office in 2023.

Minister for Housing and Homelessness Rose Jackson said the changes were critical to maintaining Waterloo’s social diversity.

“When we came to government, we immediately reviewed the plans for the Waterloo renewal and boosted the number of public and affordable homes from 35 to 50 per cent,” Jackson said.

“This was a crucial step to ensure Waterloo remains a welcoming place for people from all walks of life to call home now and into the future.”&nbsp;

Minister for Planning and Public Spaces Paul Scully said the project would reshape the precinct for generations.

“This concept DA brings thousands of new public, affordable and market homes on the doorstep of the Waterloo Metro station another step closer to reality,” Scully said.

“Importantly, alongside the new homes the plan also proposes new open space where residents and the broader community can gather, relax and play.”&nbsp;

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="867520cb-6e07-4204-885e-53793ac88066" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Waterloo%20public%20a.png?VersionId=lgSI85Q23xBLYLC9NcWKuWZY2HfP4zQ3" />

Stockland Managing Director and CEO Tarun Gupta said the project had been shaped around long-term liveability and community infrastructure.

“As delivery partner, Stockland is proud to be working with the NSW Government on the renewal of Waterloo South – a significant project with community at its heart,” Gupta said.&nbsp;

The planning documents place strong emphasis on “Designing with Country,” recognising the site’s location on Gadigal land. The masterplan incorporates new east-west pedestrian links, activated streetscapes, rooftop communal spaces, retail frontages, and landscaped public areas intended to improve permeability and community connection throughout the estate.&nbsp;

The proposal also seeks to establish a more flexible planning framework for future detailed SSDAs, including updated provisions for educational uses, creative industries, rooftop communal areas, and active frontages. A minimum seven per cent of residential floor space will be delivered as affordable housing managed in perpetuity by community housing provider City West Housing.&nbsp;

The Social Impact Assessment prepared by Urbis describes the renewal as one of Australia’s most significant public housing transformations, identifying substantial long-term positive impacts associated with housing supply, accessibility, public domain improvements, and community infrastructure.&nbsp;

Stockland and Homes NSW have already commenced the first stage of resident relocations, with some tenants moved into newly completed homes at Waterloo Metro Quarter and the Boronia development nearby.

First look: Stockland, NSW Gov, unveils plans for 3,300-home Waterloo South renewal

<a href="https://www.apartments.com.au/new-apartments/smith-by-valli-collingwood-224-228-smith-street-collingwood-vic-3066">Smith Collingwood</a> is a new boutique apartment development bringing a refined, design-led approach to one of Melbourne’s most established inner-city neighbourhoods.

Designed by <a href="https://www.apartments.com.au/architects/pandolfini-architects">Pandolfini Architects</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/lisa-buxton-interiors">Lisa Buxton</a>, Smith by Valli sits on iconic Smith Street and comprises just 22 residences tailored toward owner-occupiers seeking a more considered style of apartment living.

[smartcode_project:default project_id=140747 project_image_fid=367540]

The design of Smith focuses on a north-facing orientation across all residences, a relatively uncommon feature in dense inner-Melbourne settings. Each apartment has been planned to maximise natural light and outlook, alongside a material palette defined by warm tones, custom joinery, and a full suite of Gaggenau appliances.

The development comprises a mix of one, two, and three-bedroom apartments, with pricing currently ranging from just under $1 million to around $4.85 million for the premium penthouse-level residences, reflecting growing demand for luxury owner-occupier product in Melbourne’s inner urban market.

Residents will also have access to a private rooftop garden designed as an elevated retreat above the city, &nbsp;featuring curated landscaping, veggie boxes, intimate seating areas and spaces for relaxed gatherings. Sustainability has also been integrated into the project through a 7-star energy rating and two secure bicycle facilities for every residence.

[smartcode_project:default project_id=140747 project_image_fid=367529]

Smith by Valli sits in the heart of one of Melbourne’s most established retail and hospitality strips, within walking distance of venues such as Falco Bakery, Carnation Canteen and Alimentari, alongside parks and everyday services. With a Walk Score of 99, the location reinforces the project’s positioning toward buyers prioritising walkability and access over car dependency.

With only a limited number of residences, Smith reflects growing demand for smaller, highly curated apartment developments that prioritise design quality, liveability, and connection to neighbourhood character.

[smartcode_project_cta:default project_id=140747]

Smith by Valli delivers design-led apartments to Melbourne’s inner north

Apple

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Cider House, a country estate on the Mornington Peninsula, sold at recent auction for $2,180,000. 
There were five bidders for the <a href="https://www.realestate.com.au/sold/property-house-vic-tuerong-128359074" target="_blank">Tuerong listing</a> which was among the most viewed offerings on <a href="http://realestate.com.au/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en-GB&amp;q=http://realestate.com.au&amp;source=gmail&amp;ust=1529534896827000&amp;usg=AFQjCNFkbT0S4nrDEPw1RRe8x1b0dr9dIw">realestate.com.au</a>. It was bought by an Armadale couple with a young child. McEwing Partners Mornington agents Dean Phillips and Amy Day sold the estate. 
Vendors Aaron and Carolyn Miglioranza bought the two hectare horse paddock in 2009.
It is now a fully irrigated 282 apple tree orchard with 14 varieties of apples planted in 2015.
When fully mature, the trees will crop anywhere between 120 kilograms to 200 kilograms annually which could possibly reap around $84,000 per annum for all of the apples, cider and eating. The property has 160,000 litre water tanks.
There's also a five year old, pavilion-style home from Harkaway Homes with wraparound verandah, extensive shedding and chook house. The 18 chooks are set to stay!
 
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jchancellor-FAypfDUnLy

Cider House, Tuerong sells for $2.18 million

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GUEST OBSERVER
Is the Aussie dollar too strong? According to CommSec iPhone index Australia is now the 25th cheapest country in the world (of 57 nations) to buy an Apple iPhone 7 in US dollar terms.
This time last year, Australia was the 17th cheapest to buy the iPhone 6 Plus and a year before Australia was fifth cheapest.
  Last year the Aussie dollar was near US76 cents and the year before it was US69 cents. This year the Aussie dollar is near US80.5 cents.
  An iPhone 7 32 GB is $1,079 in Australia (US$869.67 at current exchange rates). In the US, the same phone is US$649 (US$702.54 in California with state and local taxes) – around 24 per cent cheaper.
  Apple is expected to release a new model of the iPhone on Tuesday and Australian consumers will be closely watching the local pricing of the must-have device. 
  Now turning to the CommSec iPad index. Australia is now the 17th cheapest country in the world (of 57 nations) to buy an Apple iPad Pro (released June 5 2017) 10.5-inch tablet device in US dollar terms. This time last year, Australia was the 20th cheapest to buy an iPad Pro 12.9-inch tablet. The year before Australia was the second cheapest to buy an iPad.
  In January 2007 CommSec launched its iPod index as a modern way of looking at purchasing power theory. That is, the theory that the same good should be sold for the same price across the globe once taking into account exchange rates. On current iPad &amp; iPhone pricing the Aussie dollar could be regarded as, at best, as a little “expensive”. Last year we thought the currency was slightly “over-valued”.
  On current pricing, Aussie tourists could save almost $190 by buying an iPad Pro 10.5-inch tablet in Hong Kong rather than in Australia. When the currency strengthens it does pose challenges for Aussie retailers. If they don’t pass on the benefits to customers in the form of cheaper imported goods, Aussie consumers may go online and source the goods from abroad. Or Aussie tourists may purchase goods abroad in preference of buying goods locally.\
<a href="https://www.propertyobserver.com.au/images/2017/09/11/Screen%20Shot%202017-09-11%20at%208.19.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/11/Screen%20Shot%202017-09-11%20at%208.19.29%20AM.png" alt="">
What do the index results show?
  In January 2007, CommSec launched its iPod index. It was designed as a new way of looking at purchasing power theory. That is, the theory that the same good should be sold for the same price across the globe once taking into account exchange rates. The Economist magazine has for some time maintained its Big Mac index for the same purpose – that is, tracking the concept of purchasing power parity.
  CommSec has since shifted the focus to Apple iPad and Apple iPhone prices. 
  Last year the Aussie dollar was near US75.7 cents. Today, the Aussie dollar is near US80.5 cents. And that change has led to Australia slipping down the leader-board on US dollar pricing of the iPhone 7 and being little- changed on the iPad index – but far less globally competitive than a few years ago.
  On an iPhone 7, 32 GB, Australia is now the 25th cheapest place to buy the smartphone in the world. A year ago Australia was the 17th cheapest place to buy the then current iPhone 6s model. On iPad pricing, Australia has edged higher from 20th to 17th over the past year. 
Simply, Australia is no longer amongst the cheapest places across the globe to buy popular technology when measured on the same basis as other countries – that is, in US dollar terms.
  Last year we surmised that the Aussie dollar probably was “fairly valued” or perhaps even slightly “over-valued”. This year, the Aussie dollar looks more expensive. But “commodity currencies” like the Australian dollar, Canadian dollar and Norwegian krone are in favour at present. The Reserve Bank has grappled with the issue of whether the Aussie dollar is too firm against major currencies, saying “The higher exchange rate is expected to contribute to the subdued price pressures in the economy. It is also weighing on the outlook for output and employment.”
Global highs and lows
  It is important to note that sales tax rates provide complications in undertaking comparisons across countries. In Australia the GST is included in the Apple Store price. The sales tax environments aren’t as clear on the pricing of iPads and iPhones in many other countries. In Canada and the US there are various prices for the iPads and iPhones depending on the different state or province sales taxes that apply. We have undertaken comparisons with Ontario in Canada and California in the US. Apple Japan also quotes prices ex-tax. 
  The CommSec iPad and iPhone indexes shows that Latin American, northern and Eastern European countries still pay the most for their tech devices. Australian customers still remain in front of European customers in paying for iPads but have fallen below a number of European countries on iPhones.
  On current exchange rates Hong Kong and Japan are cheapest to buy the iPad Pro 10.5-inch model on current exchange rates. Saudi Arabia and Japan appear the cheapest places to buy an iPhone. On both iPads and iPhones, Brazilian and Argentinian customers pay the highest prices in the world to buy the latest technology.
Purchasing power parity: In theory only
  While the concept of purchasing power parity is good in theory, unfortunately there are complications in practice. As noted above, one of the biggest complications is tax with differing consumption tax rates applied across the globe.
  The other complication with purchasing power parity is freight or shipping cost. If the local price was relatively high and shipping costs weren't overly exorbitant then a buyer may decide to source goods from another country. If enough buyers were to source goods abroad, presumably it would force local retailers to re-assess pricing.
  On current exchange rates Australian consumers could be tempted to buy their iPads and iPhones from a number of countries while on personal or business trips. For instance an iPad Pro (2017 version) 10.5-inch model costs A$979 in Australia. On current exchange rates, an Aussie traveller could save almost A$190 to buy the same good in Hong Kong.
Australia: Pricing reflects the firmer currency
  Since we began the CommSec iPod index in January 2007, Australia was always one of the cheapest places in the globe to buy the iPod nano media player. In fact Australia was the cheapest place to buy the popular media player in both October 2008 and December 2009.
  We have now shifted to iPads and iPhones for comparison. Australia is more middle-of-the-pack to buy the must- have tech devices as Apple pricing and the stronger currency has pushed us away from the cheapest levels.
  Changes in Australia's relative position over time always reflect fluctuations in the exchange rate as well as local pricing by Apple. The important point is that local retailers and suppliers face the same dilemma as Apple - when currencies change, how quickly should local pricing change? And if you do change selling prices, do you fully adjust for the currency impact? There is a range of influences that play a part in the decision, including a judgement about whether the currency change is likely to be permanent or temporary. 
The Aussie dollar has risen by 6 per cent against the US dollar over the past year. But local pricing hasn’t changed much, resulting in Australia no longer having the lowest-priced Apple products in US dollar terms. Perhaps that means price cuts lie ahead when Apple updates its latest tech devices on Tuesday (Wednesday Sydney time)?
<a href="https://www.propertyobserver.com.au/images/2017/09/11/Screen%20Shot%202017-09-11%20at%208.17.48%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/11/Screen%20Shot%202017-09-11%20at%208.17.48%20AM.png" alt="">
Big Mac index, and exchange rates
CommSec has maintained its iPod index since January 2007 as a way at looking at issues such as the impact of currency changes on consumer spending, globalisation and retailer margins. With relative importance switching from iPods to iPads, CommSec started compiling iPad indexes, and now iPhone indexes.
  The CommSec iPod, iPad and iPhone indexes are designed as modern day variants of the long- running Big Mac index compiled by The Economist magazine. Both the iPad and Big Mac indexes work on the theory of ‘same good, same price’. That is, the same good should trade at broadly the same price across the globe if exchange rates are adjusting properly.
 The Economist uses its Big Mac index to track the economic theory of purchasing power parity (PPP).
That is, the theory that the same good should trade for the same price across the globe once adjusted for exchange rates. The index works by dividing the local price of a Big Mac by the US price of a Big Mac. This gives the PPP exchange rate. If the actual exchange rate is above the PPP rate, the theory says that the currency is over-valued, and may need to fall to bring the goods in both countries in line.
  The problem is that Big Macs aren’t exchanged across country borders. But the assumption is that Big Macs are a proxy for other goods that certainly may be traded. The other problem is that the Big Mac index assumes a US base, and thus assumes that US goods are appropriately priced. 
  The last Big Mac index analysis (July 2017) concluded that the Aussie dollar was relatively “under-valued” by 14.6 per cent against the US dollar (most currencies were regarded as “under-valued”). In other words the Aussie dollar should have been closer to US90c rather than US77.05c at that time. Today the Aussie dollar stands nearer to US80.05 cents.
CommSec iPad and CommSec iPod indexes and exchange rates
 Like the Big Mac index, the CommSec iPad and CommSec iPod indexes assume that the same good should sell for the same price across the globe once exchange rates are taken into account. But the difference with the Big Mac index is that Apple tech devices can indeed be exchanged across the globe. If they are particularly cheap in one country it could cause tourists to buy their tech devices when on holiday, prompt people to buy them online in other countries, or prompt some companies to take advantage of arbitrage opportunities.
  But Apple devices are manufactured in one place (China – mainland China as well as Taiwan) and sold across the globe. So it won’t just be the cost of the good that could result in price differences across the globe but also local taxes, freight and different mark-ups. 
  But if you assume that the Aussie price for an iPad Pro should be the same price as that paid by a resident in California, then the exchange rate should be closer to US72 cents. Again, if you assume that the Aussie price for an iPad Pro should be the same as China where the goods are manufactured, then the Aussie dollar is “about right” at US80 cents. Although on iPhone pricing an appropriate level of the Aussie dollar would again be around US77 cents.
  The Economist Big Mac index suggested that the Aussie dollar was “under-valued”. But the CommSec iPad and iPhone indexes suggest the Aussie dollar is perhaps 5-10 per cent “over-valued” at current exchange rates. 
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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