Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

&nbsp;

Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

<html><body>
CBA, the nation's largest mortgage lender, is axing residential and commercial loans for self managed super funds (SMSF).
The bank will be withdrawing its SMSF lending product, SuperGear, from October 12.
Westpac Group, the nation's second largest mortgage lender, already pulled out of the sector in July.
But the Australian Financial Review said the move had shocked mortgage brokers and financial advisers. 
"We are seeing the writing on the wall for leveraged SMSFs," said Sally Tindall, director of research for RateCity, which monitors rates for financial service products. 
"This calls into question the viability of the leveraged SMSF sector."
"CBA has decided to withdraw its SMSF lending product that allows SMSF trusts to purchase both residentially and commercially secured properties," a spokesman said.
"This is part of our strategy to become a simpler, better bank.
"We are streamlining our product portfolio and have decided to discontinue SuperGear."
The bank said it will be writing to customers who hold a SuperGear loan outlining the changes.
It will continue to support existing loan accounts.
Regulators fear problems arising from SMSF investors leveraging their superannuation to invest in a single residential property because of the lack of diversification and increasing dangers of loss in a falling property market where it is difficult to find tenants. 
A key finding of the David Murray-led financial system inquiry in 2014 was that leverage should be banned in superannuation funds to mitigate the risk of financial instability.
The government rejected his advice.
Nearly $700 billion is held in SMSF funds by more than one million investors.
During the past four years the number of members investing in property has increased from about 3.6% to 6.9% of SMSF fund assets.
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j.ballantyne1990-6AQqhLzZaK

Leveraged SMSF sector in doubt as CBA scraps SMSF lending

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Australia’s property market isn't going to crash, according to the Commonwealth Bank economist Gareth Aird.
Nor even a hard landing, but something not too dissimilar to the corrections of 2010 and 1989, he said.
But he has forecast that house prices in Sydney and Melbourne will continue declining until the end of next year.
“We (CBA) see the peak to trough being around 10% in Sydney and a little less in Melbourne (8.8%)," he told Business Insider.
Click <a href="https://edge.alluremedia.com.au/uploads/businessinsider/2018/09/CBA1.jpg" target="_blank">here</a> to enlarge
<div>
<img src="https://edge.alluremedia.com.au/uploads/businessinsider/2018/09/CBA1.jpg" alt="">Source: Commonwealth Bank
</div>
Aird’s model is calculated as a function of the four variables listed below.
1. Annual changes in mortgage rates (1 year advanced);
2. The annual change in the flow of credit (six months advanced);
3. Auction clearance rates (four months advanced);
and 4. The house price expectations index from the Westpac/Melbourne Insitute consumer sentiment survey (2 months advanced).
He concedes that “predicting property prices can look foolish retrospectively”.
However, the chart below shows that the four leading indicators outlined above track actual movements in house prices “very well”.
<div>
<img src="https://edge.alluremedia.com.au/uploads/businessinsider/2018/09/CBA2.jpg" alt="">Source: Commonwealth Bank
</div>
“Clearly, we can’t forecast auction clearance rates or the household perception around the future path of dwelling prices.”
CBA’s base case is that Sydney home prices will decline by 5% annually in 2018 — a relatively mild assessment given the latest weekly data from CoreLogic Sydney house prices are currently 5.9% lower than this time last year.
That would take overall declines from Sydney’s July 2017 peak to around 7.5%.
“For Melbourne, prices would be down by around 5% from their November 2017 peak,” Aird said.
“Nationally, we think prices will end the year down by around 3% with a roughly similar outcome likely in 2019."
Aird noted the broader economy outside of housing is still performing well, along with the continued strength in Australia’s labour market.
He expects the unemployment rate will decline further which lowers the risk of mortgage defaults.
There’s Australian rate of population growth, he added.
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CBA's Gareth Aird forecasts 10 percent decline in Sydney house prices into 2019

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EXPERT OBSERVER
The Commonwealth Bank of Australia reported its full year results last week.
<div>Cash profit for FY2018 of $9.41 billion was down 4.7 per cent. </div>
<div> </div>
<div>But overall this remained a solid underlying result with a fully franked dividend of $4.31 per share heading the way of investors (up 2 cents or +0.5 per cent...thanks!). </div>
<div> </div>
<div>Increased funding costs impacted net interest margins adversely as expected.</div>
<div> </div>
<div>However, the group more than made these costs back in the financial year through changes in the funding mix and the repricing of investor and interest-only loans.</div>
<div> </div>
<div>In fact, the net interest margin was up 5bps over FY2018 to 2.15 per cent.</div>
<div> </div>
<div>Group loan impairment expense was also very low, at just 15bps.</div>
<div> </div>
<div>Note that the Group will adopt AASB 9 from 1 July 2018, and therefore total provisions will increase to reflect forward-looking factors as required by the standard (this adjustment will will pushed through opening retained earnings and therefore will have no impact on the current year income statement). </div>
<div> </div>
<div>'As if' earnings</div>
<div> </div>
<div>A number of one-off items including the $700 million AUSTRAC penalty reduced the statutory NPAT and cash NPAT.</div>
<div> </div>
<div>Excluding one-off items, cash profit was up by 3.7 per cent to above $10 billion.</div>
<div> </div>
<div>From the slide deck</div>
<div> </div>
<div>There were so may great slides in the full year preso that's it's impossible to know where to start, but here are just a select few. </div>
<div> </div>
<div>90+ day home loan arrears were notably up a bit year-on-year from 0.6 per cent to 0.7 per cent. </div>
<div> </div>
<div>Click to enlarge</div>
<div> </div>
 
<div><img src="https://2.bp.blogspot.com/-NikJ1XTC2aM/W2obenRu8FI/AAAAAAAAra0/Bu_BuRukzkwr3D1deQO6h0gvC7zNKaT1ACLcBGAs/s640/CBA1.jpg" width="640" height="510" data-original-height="646" data-original-width="810"></div>
 
<div>(Source: ASX: CBA)</div>
 
<div>The year-on-year increase in arrears was mainly due to Western Australia and the Northern Territory, with changes elsewhere relatively benign. </div>
 
<div><img src="https://3.bp.blogspot.com/-BPTlAOXy52Q/W2obesMjuDI/AAAAAAAAraw/-PYHhx5N81AQ0yr6tGOyTwhmdVcTyqm9gCLcBGAs/s640/CBA3.jpg" width="640" height="374" data-original-height="738" data-original-width="1257"></div>
 
<div>The switching of interest-only (IO) loans peaked in September 2017. </div>
<div> </div>
<div>There is still plenty of scheduled IO expiry over the next two financial years, however, with the blue bars arguably representing the loans most at risk of arrears (being IO loans to investors). </div>
 
<div><img src="https://1.bp.blogspot.com/-oV4exYg2jIY/W2obf3MIo_I/AAAAAAAAra8/NGaVAzwTFF8L3X27_sdVCv1GdNukH2T6wCLcBGAs/s640/CBA4.jpg" width="640" height="276" data-original-height="643" data-original-width="1490"></div>
 Home loan repayments in advance remain popular, though not for all borrowers. 
<div><img src="https://3.bp.blogspot.com/-zmTCKRUK6YA/W2ocvV3VTBI/AAAAAAAArbY/bIkgLBE06_Ak3f32pJmK2CLHaDUB__-mgCLcBGAs/s640/CBA7.jpg" width="640" height="330" data-original-height="750" data-original-width="1454"></div>
 
<div>Finally, CBA optimistically notes that outside recessions or global financial crises modern housing downturns generally only last about 8 months on average (so on that basis, this one should be about done).</div>
 
<div><img src="https://3.bp.blogspot.com/-baZfqx1F2yk/W2obgIOcIrI/AAAAAAAArbE/cfkEW3UjyasvCcohNfaoPV3nTBFD9zsgwCLcBGAs/s640/CBA6.jpg" width="640" height="330" data-original-height="796" data-original-width="1536"></div>
 PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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pwargent-M4siyDbqQY

WA home loan arrears still problematic for CBA: Pete Wargent

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The Commonwealth Bank of Australia has posted a full-year cash profit of $9.233 billion, down some 4.8 percent.
The last time the bank posted a weaker profit was in 2009.
The result includes $400 million in regulatory costs. The decline was mostly driven by a $700 million penalty paid to AUSTRAC after it breached anti-money laundering laws.
CEO Matt Comyn said the results concluded what had been "a difficult 12 months" for the bank.
"I wanted to start by thanking all of our people right throughout the business who have worked incredibly hard in challenging circumstances to deliver a result of $9.2 billion, which at a headline level is down 4.8 percent, although there has been a number of one-off items that have impacted the result, including a couple of large penalties that we have resolved," said Comyn.
"If you strip some of those out, actually the result looks more from an underlying perspective up 3.7 percent."
Comyn said he recognised the impact the bank's mistakes were having on customers.
<div data-module="video" data-class="video-js video-js--network" data-param-page-name="finance:finance:home:default" data-video="5778774177001" data-category-name="MSNVideo_Cat" data-category-value="ausydney" data-sticky-enabled="false" data-sticky-target-selector=".layout__utility" data-show-description="data-show-description">
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<div id="player_vl6eu" lang="en-au" data-param-page-name="finance:finance:home:default" data-param-video-name-prefix="finance|" data-param-ad-unit="finance/web" data-video-id="5778774177001" data-player="H190EXsjW" data-account="664969388001" data-embed="default">"We just have to recognise we have not done a good enough job for our customers. We got some things wrong. We have made mistakes," said Comyn.</div>
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"We absolutely need to make sure we do not make them again. And a big part of my job of course is making sure we are a simpler and better bank for our customers, working closely with any customers who have not had a good experience, but most importantly making sure that those sorts of issues do not recur.
"Ultimately it is going to be something that our customers need to decide, and I am very comfortable, and feel very accountable, for ensuring that we deliver great experience and outcomes for our customers over the long term."
The Commonwealth Bank board declared a full year, fully franked dividend of $4.31.
It noted switching from interest-only mortgages was stressing some borrowers.
The number of home loan borrowers late on repayments spiked, but Comyn said customers have been able to get payments back on track by paring back their spending elsewhere.
CBA advised a 10 basis point increase in the number of customers more than 90 days late on their home loan repayments - from 0.60 per cent to 0.70 per cent of borrowers. 
<div>
Comyn said he did not expect the arrears levels would deteriorate further and that "over time, the customers adjust to the new payments".
Analysts asked Mr Comyn about the rising arrears during the results briefing, with Macquarie's Victor German observing the number is a "historical leading indicator for deteriorating credit quality". 
CBA is the largest mortgage lender in Australia, with 1.5 million home loan accounts with a total balance of $374 billion.
Of these, 64 per cent of borrowers are owner occupiers. 
Some 30 per cent of CBA mortgage customers are on interest-only loans, down from 39 per cent a year ago. 
</div>
<div>Around 27 per cent of CBA's interest only borrowers are expected to switch to principal and interest loans in FY2019 with the bank writing to interest only borrowers 12 months before their loans reset to warn them of the changes.</div>
<div> </div>
<div>The AFR noted the briefing was advised 79 per cent of customers coming to the end of an interst only period have an opportunity to extend the interest-only terms for a further year. </div>
<div>
CBA said the uptick in mortgage arrears reflects "pockets of stress" in the economy, mostly in Western Australia, where the bank saw "continued softness in outer metro and regional" areas rather than mining towns, and in the Northern Territory, where its small book was hit by rising unemployment as resource projects were completed.
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CBA profit dips for first time in decade as mortgage arrears spike

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CBA, the nation's largest residential property lender, is set to cease its low documentation products.
The bank is removing low doc products for all home owner, investment loan and line of credit applications.
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<div id="article-inline-ad">Low doc were aimed at self-employed and small business owners who may not have access to the financial statements and tax returns usually required when applying for a home loan.</div>
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<div>"From September we will be streamlining our suite of products to deliver a simplified and competitive range," the spokesman told The Australian Financial Review.</div>
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Other products to be removed include the one-year guaranteed rate, seven-year fixed rate, 12 month discounted variable rate, rate saver, three-year special rate saver and no fee loans.
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<div>The changes, to start September 29, follow a decision to spin off its wealth management and mortgage broking business along with overhauling the way it rewards mortgage brokers to emphasise "value rather than volumes."</div>
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Brokers account for about 43 per cent of CBA's mortgage flows, compared with ANZ's 56 per cent, Westpac's 46 per cent and National Australia Bank's 42 per cent, according to recent independent analysis by Morgan Stanley.
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CBA to stop low doc loans

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New Zealand businessman Sir Ralph Norris is selling his luxury Darling Point garden duplex seeing as he's now spending more time in his home country.
The former CBA chief, who earlier this year stepped down as the boss at Fletcher Building, paid $5.15 million in 2006, the same year he was appointed a distinguished companion of the New Zealand Order of Merit.
He bought it from the rag trading Gazal family.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/31/NORRIS2.jpg" alt="">
The <a href="https://www.propertyobserver.com.au/%20https:/www.realestate.com.au/property-apartment-nsw-darling+point-128467602" target="_blank">Darling Point duplex</a> has three bedrooms and three bathrooms.
It has views from Rushcutters Bay to the city skyline.
Every room opens to the wrap-around landscaped alfresco spaces. The entry level with second living area opens to a heated swimming pool.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/31/NORRIS3.jpg" alt="">
Ballard Property agents Mark Lowe and Amanda Cook have a June 23 auction.
They describe it as a first-class entertainer.
Norris took the top job at CBA in 2006.
 
 
 
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jrobinson-rf4aSBido9

Former CBA chief lists Darling Point duplex

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Matt Comyn has been promoted internally to be named Commonwealth Bank's new chief executive.
The 20 year Commonwealth Bank veteran, who had been head of the retailing banking arm, will replace Ian Narev in April.
Narev announced last August he was to step down from the position.
It comes after a series of money-laundering scandals hit the retail banking arm.
Comyn is set for a bumper pay day, and will earn $2.2 million a year, with potential bonuses taking his yearly salary up to closer to $8.4 million.
One of Comyn's responsibilities as head of retail banking was the rollout of the ATM machines which were central to the money-laundering charges.
Commonwealth Bank chair Catherine Livingstone released a statement to the ASX, citing Comyn's mix of attributes as key to his appointment.
"His mandate is to continue to make the necessary changes to ensure CBA remains a leading bank with an unwavering focus on its customers and delivering outcomes for our shareholders, while achieving the highest operational standards unequivocally fulfilling our regulatory responsibilities," Livingstone said.
"Matt's appointment will enable a smooth transition to new leadership, as CBA responds to the current regulatory processes and legal proceedings, accelerating the related changes and improvements already underway."
 
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Matt Comyn, the Commonwealth Bank veteran made new chief executive

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Western Australia has the most problem home loans in Australia for the country’s largest mortgage lender, the Commonwealth Bank of Australia.
While home loans in WA only account for 16 per cent of the total for the bank, the proportion of loans that are 90 days or more behind in repayments jumped by a quarter from close to 1 per cent in December, the bank's results for the year to June showed.
WA has a 1.23 per cent arrears rate in home loans, twice the national average, reported The Australian Financial Review.
The state’s housing market is still feeling the shocks from the end of the mining boom. Perth house prices fell 1.8 per cent to a near-five-year low of $555,788 in the June quarter even as unit prices rose 1.1 per cent to $377,823, data from Domain show.
CBA had a 25.2 per cent share of the country's total home loan market as of June.
Though the bank reported a better-than-expected $9.9 billion profit for the year to June its retail banking expenses rose 5 per cent to $699 million, mainly due to sluggish conditions in the largest two resource-dependent states.
Expenses rose in that category "as a result of higher arrears and losses for home loans and consumer finance, predominantly in WA and Queensland", the bank said.
CBA’s total home loan balance rose 7 per cent from a year earlier to $485.9 billion driven by strong growth in retail banking, New Zealand and its Bankwest unit, it said.
At the same time, the bank’s exposure to Sydney’s apartment market has grown. While apartment developments accounted for 36 per cent of its total $12.3 billion residential book, Sydney made up 61 per cent – or $2.8 billion – of that. 
The bank’s exposure to the Melbourne apartment market was $900 million, while Brisbane at $300 million and Perth with $200 million were way behind.
"Weighting to Sydney [is] increasing as exposures to other capital cities reducing proportionally quicker," the bank said.
Over the six months to June, CBA reduced the value of its apartment development exposure by $700 million, or 14 per cent, to $4.5 billion.
The bank said it had a "lower" portfolio loan-to-value ratio of 59 per cent.
 
 
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jonathanchancellor-7SQnKwU6yx

WA home loan arrears twice of national rate: CBA

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The Minutes of the August Board meeting were a low key affair, as anticipated.
There has been plenty of communication from the RBA over the past two weeks including the August Statement on Monetary Policy (SMP) and RBA Governor Philip Lowe’s appearance before the House of Representations Standing Committee on Economics.
In that context, today’s Minutes were unlikely to contain any major surprises.
On Friday, the Governor endorsed market pricing that the next move in rates is up when he said, “the current market pricing implies a greater probability of a rate rise than a rate reduction, I think they are reasonable assumptions and I don't want to dissuade them.”
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Screen%20Shot%202017-08-15%20at%201.12.37%20pm.jpg" target="_blank">Click to enlarge</a>
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This view was backed up in today’s Minutes as the Board dropped their reference from the July Minutes around developments in the labour market continuing to warrant careful monitoring.
For the record, in the July Minutes it was stated that: “the outlook for growth and inflation meant that developments in the labour and housing markets continued to warrant careful monitoring.”
In the August Minutes that statement was tweaked to, “members regarded conditions in the housing market and household balance sheets as continuing to warrant careful monitoring”. This is a less dovish stance.
But we don’t think it materially changes the outlook for rates; it simply validates current market pricing.
The Board continues to sound relatively upbeat on recent developments in the global economy.
In particular, it was noted that, “economic conditions had strengthened over the prior year and the improvement had broadened beyond international trade.”
A gradual increase in global inflation is forecast despite wage growth and core inflation remaining “subdued” as labour market have tightened.
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Screen%20Shot%202017-08-15%20at%201.12.46%20pm.jpg" target="_blank">Click to enlarge</a>
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The Bank’s assessment of the domestic economy contained nothing new compared with the August SMP.
But on the outlook for inflation, the Board noted that some forthcoming ABS rejigging with the CPI weightings will lead to slightly lower reported inflation from Q4 2017.
This information was incorporated into the RBA’s latest inflation forecasts and doesn’t appear to have meaningfully impacted their numbers.
On housing, the Board suggested that, “conditions had eased since late 2016” in Sydney in Melbourne.
We are not as convinced as the Board.
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Screen%20Shot%202017-08-15%20at%201.12.57%20pm.jpg" target="_blank">Click to enlarge</a>
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In our view there is very little evidence that conditions in the Sydney and Melbourne housing markets have cooled. In fact, after a seasonal slump in prices in May, the annual growth rates of dwelling prices have accelerated in Australia’s two largest cities.
From a monetary policy perspective, today’s Minutes were never going to be the most important event on the domestic economic this week.
Updates on wages {Wage Price Index (16/8) and Average Weekly Earnings (17/8)} and employment (17/8) are more significant.
There has been some genuine strength in the monthly employment reports over the past four months which means there has been a gradual tightening in the labour market.
But it remains to be seen if it will generate any lift in wages growth.
As a result, the data to come over the next 48 hours is particularly important.
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From our vantage point, we think that we are still some way from labour market slack being eroded sufficiently to put genuine upward pressure on wages.
As a result, we see policy on hold until deep into 2018.
Gareth Aird is a senior economist at the <a href="https://www.commbank.com.au" target="_blank">Commonwealth Bank</a>.
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Cash rate to stay steady this year and into next: CBA's Gareth Aird

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Australia is experiencing a long-running residential construction upturn, beginning around mid-2012.
Residential construction tends to be very sensitive to interest rates.
So falling interest rates from late 2011, combined with strong population growth, increased foreign demand and pent up demand from underbuilding in previous years meant that a boom was inevitable.
This building boom came at a very beneficial time and helped to offset some of the negative effects from the decline in business investment as the mining construction boom wound down.
The leading indicators of building activity suggest that the current residential construction boom has peaked.
So in this note we take a look at how the economy has benefited from the latest construction cycle and how it’s likely to fair as activity slows.
A typical residential construction upturn has both direct and second-round benefits.
The direct benefits include the additional building activity as well as the jobs created to undertake the additional building work.
Second-round benefits include additional spending elsewhere in the economy as a result of this new construction employment.
For example, spending on furnishings and household appliances for use in the new dwellings.
And then the additional employment as a result of this spending.
In terms of the direct benefits, residential construction upturns since the late 1970’s have on average contributed 2.2 ppts to GDP (chart 1).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-1.jpg" alt="">
The latest cycle has added 1.6 ppts.
Upturns also contribute to jobs growth. Employment in residential construction, has expanded by 38%, or by 31.2k jobs since 2012 (chart 2).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-2.jpg" alt="">
This is well above the 6.4% growth rate for total employment over the same time frame.
These jobs have been concentrated in NSW, Victoria and Queensland where the bulk of the residential construction has taken place (chart 3).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-3.jpg" alt="">
Other building construction jobs, which may include some workers employed in residential construction, have also expanded strongly over the latest residential construction upturn, with 38k extra jobs.
Jobs in construction services have also grown a little faster than total employment growth. Although this includes jobs related to all types of construction activity.
This expansion (and likely contraction) in residential construction jobs is much smaller than the rise in mining sector jobs during the mining boom.
We discuss this more in the next section.
The ABS has estimated that every $1m spent on residential construction generates 17 jobs on a full-time equivalent basis.
This includes jobs in the construction industry as well as the additional jobs outside the industry created as a result of flow on spending.
Spending on dwelling construction has risen by $6.2bn over the cycle so far.
So according to these multiplier effects approximately 105k jobs in total have been added to the economy.
The ABS has also estimated other second round benefits.
For instance, for every $1 spent on residential construction, $1.31 worth of spending is generated elsewhere in the economy.
One area where we have seen this extra spending show up is in the category of household furnishing and fittings including household equipment, floor coverings, household appliances and tools.
Since the latest residential construction boom began, spending in these categories has lifted by 17.5% compared to 10.7% for total household consumption spending (chart 4).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-4.jpg" alt="">
This has been a positive for the retail sector which has faced many headwinds in recent years.
Other beneficiaries of residential construction booms are the State governments who collect stamp duty revenues.
The NSW, Victorian and Queensland State governments have all had solid growth in stamp duty revenues from the sale of residential properties.
Large house prices gains, particularly in Sydney and Melbourne, and decent turnover has also boosted stamp duty revenues.
In NSW, for example, stamp duty revenues have more than doubled over the past six years and now make up 32% of tax revenues compared to 22% in 2010/11.
We think the latest residential construction cycle has peaked. Residential building approvals peaked in August last year and have fallen by around 10% since then (chart 5).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-5.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-5.jpg" alt="">
However the pipeline of activity remains at record highs which means we are likely to see another quarter or two of growth in construction work done (chart 6).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-6.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-6.jpg" alt="">
We also saw a weather-related fall in residential construction activity in Q1.
This means that we are also due some payback in Q2.
However we think the downturn in the latest residential construction cycle will be gradual, and we expect an extended plateau where residential construction activity remains at a high level over 2017 and into 2018.
This is because a much larger share of approvals have been for multi-units than in previous booms (chart 7).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-7.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-7.jpg" alt="">
Multi-units have a much longer build time, averaging 6 quarters, compared to 2-3 quarters for detached houses.
Indeed some high rise apartments can take 2-3 years or more to build.
This prolongs the construction cycle.
On average, residential construction downturns have subtracted 1.5 ppts from growth.
Our forecasts running to the June quarter 2019 have dwelling construction subtracting just 0.5 ppts from growth.
The smaller subtraction from growth than average reflects the fact the upturn was a little smaller.
Also, strong population growth has lifted underlying housing demand.
We estimate that underlying demand now sits at 185k compared to 155k in mid-2012 at the start of the boom.
This means that the “normal” level of construction activity necessary to meet demand is higher than it was a start of the upturn.
We also expect renovation activity to pick up.
The fact that interest rate are likely to remain low for quite some time is also a factor behind our forecasts for a relatively shallow downturn.
We expect the RBA will leave the cash rate on hold until late 2018.
And that the tightening cycle from there on will be fairly cautious.
In terms of the number of dwelling commencements we expect a slowing to 200k in 2017/18 down from 217k in 2016/17.
And then a further decline to 185k in 2018/19.
For employment, we expect that job losses will occur fairly gradually alongside the gradual decline in activity.
This will help the labour market better absorb these workers.
There are a number of other reasons to expect that the disruption from the downturn in residential construction jobs to be minimal.
Firstly, the jobs downturn will be largest in NSW, Victoria and Queensland, the States where the lion’s share of building activity and gains in residential construction jobs have taken place.
These States all have decent population growth.
And two out of three of these States, NSW and Victoria have strong jobs markets. In NSW the unemployment rate is under 5%, and at a level consistent with full employment.
In Victoria, employment has been growing a solid pace and well above the national average.
Employment growth has also picked up in Queensland in recent months.
Secondly, both NSW and Victoria have also seen a lift in non-residential building approvals (chart 8).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-8.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-8.jpg" alt="">
So additional employment in the non-residential sector may provide a partial offset to some of the jobs losses in residential construction.
In fact the ABS estimates show that the multiplier effects from non-residential construction activity are even larger than for residential construction.
They estimate that $1m spent on non-residential construction generates 24 jobs on a full-time equivalent basis.
And for every $1 spent on non-residential construction, $1.47 worth of spending is generated elsewhere in the economy.
Thirdly, all three of these States have a large pipeline of infrastructure spending still to come from their respective State governments which should also add to jobs growth, especially construction.
The Federal government is also planning a large amount of infrastructure spending over the next 10 years which will also boost employment across the country.
Renovation activity should also provide an offset to lower new residential construction activity.
Renovations usually account for a little above 40% of residential construction activity.
However the share is now very low by historical standards (chart 9).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-9.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-9.jpg" alt="">
Current rates of spending on renovation activity also look low relative to house price growth (chart 10).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-10.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-10.jpg" alt="">
Strong house price growth usually encourages more spending on renovations.
There should be some catch up in renovation spending over the next few years.
Comparing to the recent ramp up and then decline in mining sector jobs, the decline in residential construction jobs will be much smaller.
Mining employment trended higher over a nine year period, rising from around 80k in 2003 to reach a peak of around 275k in mid-2012.
Since the peak of the mining boom around 50k jobs have been lost.
Although more jobs losses are likely as the construction of LNG facilities wind down.
These jobs losses have been concentrated in WA and Queensland. Queensland has had a construction boom and growing tourism sector to help offset lost mining jobs and activity.
But for WA there has been little in the way of other growth drivers to take the place of mining.
As a result economic conditions have been very soft for a number of years in WA.
In terms of the retail sector, a return to more normal growth rates for spending on household furnishings, furniture, appliances and other goods, would be another headwind for the retail sector to contend with.
Kristina Clifton is an economist with the <a href="https://www.commbank.com.au/" target="_blank">Commonwealth Bank</a>.
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