The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Dwelling Approvals

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Data from the ABS show residential building approvals increased by 3 percent in April, exceeding a monthly total of 20,000 according to the housing Industry Association.
HIA economist Geordan Murray said approvals for multi-unit dwellings drove the headline growth in April, with approvals growing by 8.1 per cent during the month.
“The growth in multi-unit approvals was driven by the eastern sea-board states, where we saw multi-unit approvals jump by 20 percent in Queensland, 19 percent in New South Wales, and 7 percent in Victoria. South Australia also posted an increase of 3 percent," he said.
“Approvals for detached houses continue to flow through at a steady rate. While there was a decline of 2 percent in the month, there were a total of 9,695 detached dwellings approved which is still on par with the monthly average over the last couple of years. 
“In contrast to the situation with multi-unit approvals, the number of detached house approvals fell across the eastern sea-board states while all other states and territories posted improvements. It’s pleasing to see the likes of South Australia post the strongest month of detached house approvals in more than two years.
"We maintain our view that the level of new home building activity in to 2016 is likely to be lower than we saw during 2015, however this result suggests the 2016 level may be closer to the peak than initially expected.” 
According to the HIA, during April 2016, total seasonally adjusted new home building approvals saw the largest increase in South Australia (+13.7 percent) with growth in Tasmania (+13.6 percent), New South Wales (+10.4 percent), and Queensland (+6.7 percent). 
Approvals fell by 2.7 percent in Victoria and by 0.6 percent in Western Australia. 
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.47.05%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.47.05%20PM.png" alt="">
</div>
</div>
</div>
</div></body></html>

jonathanchancellor-7SQnKwU6yx

Resurgence in multi-unit dwelling approvals: HIA

<html><body>
GUEST OBSERVER
Dwelling approvals rose by 3.0 percent in April. The value of all building soared by 18.3 percent – the biggest monthly rise in four years. Building was at record highs in trend terms.
Net foreign debt rose by $9.1 billion to a record $1027.8 billion as at the end of the March quarter.
Net exports (exports less imports) will provide a solid 1.1 percentage-point contribution to economic growth in the March quarter. The CBA Group estimates that the economy grew by 1.1 percent in the March quarter to be up 3.2 percent over the year. If the data is confirmed tomorrow it would show the economy growing at the fastest annual rate in 2½ years.
Lending up: Private sector credit (lending) rose by 0.5 per cent in April to stand 6.7 per cent higher than a year ago – the strongest growth in seven years.
The approvals data has implications for banks, building and building material companies. The balance of payments data has implications for trade-exposed businesses and companies vulnerable to changes in the Aussie dollar. 
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.12.18%20PM.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.12.18%20PM.png" alt="">
What does it all mean?
Did the Reserve Bank get it wrong? Or do policymakers just have a new-found belief that the economy can go faster without generating higher inflation?
Certainly all of today’s economic readings were strong: credit (lending) growth at 7-year highs; biggest lift in building work in four years; record value of building approvals; record exports; and a solid export contribution to economic growth. Overall, the Australian economy may have grown at the fastest pace in 2½ years in the March quarter. We will know tomorrow. But we tip 1.1 per cent economic growth in the quarter to be up 3.2 per cent over the year. Economic growth over the past three quarters may have run at a 3.7 per cent annual rate.
The gloomsters may point to Australia’s record foreign debt and high current account deficit. The more positive observers will point out that debt servicing is not far from the best levels in over 30 years.
Foreign debt is an issue for global investors. But the half a cent lift in the Aussie dollar after today’s data suggests that investors understand the somewhat unique Australian situation.
What do the figures show? 
Building Approvals:
Dwelling approvals rose by 3.0 per cent in April after a 2.9 per cent gain in March. Over the past year 235,025 new homes were approved, up from March but still down on the record 239,507 approvals in the year to October 2015.
House approvals fell by 1.9 per cent in April (private sector fell by 2.3 per cent). Meanwhile ‘lumpy’ apartment approvals rose by 8.1 per cent in April after rising by 2.4 per cent in March. Private sector apartment approvals rose by 8.7 per cent in April.
Dwelling approvals in April were up by 0.7 per cent on a year ago with house approvals down by 8.9 per cent while apartments are up by 11.5 per cent.
Across states and territories in April: NSW approvals rose by 10.4 per cent; Victoria fell by 2.7 per cent; Queensland rose by 6.8 per cent; South Australia rose by 13.8 per cent; Western Australia fell by 0.6 per cent; Tasmania rose by 14.0 per cent. In trend terms, approvals fell by 15.2 per cent in the Northern Territory and rose by 6.7 per cent in the ACT.
The value of all commercial and residential building approvals rose by 18.3 per cent in April (biggest rise in 4 years) after falling by 4.3 per cent in March. Residential approvals rose by 8.4 per cent with new building up by 7.2 per cent while alterations &amp; additions soared by 18.7 per cent. Commercial building rose by 47.3 per cent in April to be up 32.4 per cent over the year.
Balance of Payments
The broadest measure of Australia's external position - the current account – improved in the March quarter (smaller deficit), with the deficit narrowing from $22.6 billion to $20.8 billion. 
The balance of goods and services was in deficit by $8.1 billion after a $10.9 billion deficit in the December quarter. Exports rose by 4.4 per cent in real terms while imports fell by 0.8 per cent.
At the end of the March quarter, net foreign equity was $15.7 billion – essentially Australians own more assets overseas than foreign investors own here in Australia. But the positive net foreign equity position weakened from $57.89 billion in the December quarter.
The trade sector (exports less imports) will provide a 1.1 percentage point contribution to economic growth in the March quarter.
Terms of trade (ratio of export to import prices) fell by 1.9 per cent to 78.7 in the March quarter – lowest level in 10 years. The terms of trade for goods fell by 2.8 per cent but the terms of trade for services rose by 1.0 per cent.
Net foreign debt rose by $9.1 billion to a record $1,027.8 billion as at the end of the March quarter.
The debt servicing ratio (net income on foreign debt to goods and services credits) improved from a near 4-year high of 8.2 per cent to 8.1 per cent in the March quarter.
The current account deficit to GDP ratio eased from a near 6-year high of 5.5 per cent to 5.1 per cent in the March quarter.
The net foreign debt to GDP ratio rose from 63.8 per cent to a record high of 64.3 per cent in the March quarter.
Government Finances
Government consumption spending rose by 0.9 per cent in the March quarter after a 0.6 per cent increase in the December quarter. Total public investment rose by 0.7 per cent in the March quarter after rising by 5.8 per cent in the December quarter. Overall, spending by the government sector rose by 0.8 per cent in the March quarter after lifting by 1.5 per cent in the December quarter.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.15.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.15.32%20PM.png" alt="">
Private sector credit
Private sector credit (lending) rose by 0.5 percent in April after a 0.4 percent gain in March. Annual credit growth rose from 6.4 percent to 6.7 percent – equalling the fastest annual pace in 7 years. 
Housing credit grew by 0.4 percent in April after a 0.5 percent gain in March. Housing credit is up 7.0 percent on a year ago. 
Owner occupier housing credit rose by 0.5 percent in April to stand 7.3 percent higher than a year ago – the fastest annual growth since September 2010.
Investor housing finance lifted 0.3 percent in April to stand 6.5 percent higher over the year – the slowest growth in 31 months.
Personal credit was down 0.1 per cent in April after falling by 0.3 per cent in March. Personal credit was down 0.9 per cent over the year – just up from the slowest annual rate in almost 4 years.
Business credit rose by 0.8 per cent in April to record highs. Business credit is 7.4 per cent higher than a year ago – the fastest growth rate in seven years.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.17.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.17.32%20PM.png" alt="">
What is the importance of the economic data?
The Bureau of Statistics' monthly Building Approvals release contains figures on local council approvals to build residential structures such as homes and units as well as commercial premises such as offices and shops. Approval is one of the first stages of the construction ‘pipeline’ and is thus a key leading indicator of future activity. An increase in approvals would point to stronger future activity for construction-related companies.
The quarterly Balance of Payments figures have few short-term effects on financial markets. The importance of the data is merely to highlight Australia’s trading position with the rest of the world as well as the contribution of foreign trade (exports less imports) to the latest estimates of economic growth.
Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive.
What are the implications for interest rates and investors?
Today’s data will give the Reserve Bank policymakers some extra time to assess the next move. It is hard to fault the latest data readings with most parts of the economy now pointing north. Ordinarily data similar to that released today would cause analysts to tip rate hikes, rather than rate cuts. But at present deflation and disinflation are upper most in policymaker minds – here and abroad.
 It is almost as if some analysts had forgotten that the mining construction boom had progressed to the mining production boom. Exports hit record highs in the March quarter and further gains lie ahead.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.20.01%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.20.01%20PM.png" alt="">
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
</body></html>

cjames-5S2v74qSNK

Record exports, building, business loans: CommSec's Craig James

<html><body>
GUEST OBSERVER
Dwelling approvals were stronger than expected in April, posting a 3 percent rise against expectations of a 3 percent fall.
Approvals have risen 6 percent over the last 2mths with the monthly trend rate lifting back to 1.2 percent, an double-digit annualised pace.
However, the detail carries a strong warning that this renewed uptrend is unlikely to sustain and may be prone to a sharp reversal in coming months. 
All of the gain is coming from a resurgence in ‘high rise’ approvals, up an estimated 16% in April alone and nearly 40% since Feb (Westpac estimates of seasonally adjusted approvals).
That is unlikely to continue both in light of the segment’s typically ‘lumpy’ monthly profile and its exposure to investor activity – a segment currently coming under additional pressure from tightening lending conditions domestically and efforts to rein in non-resident purchases.
Meanwhile, other segments are looking much more subdued: private detached house approvals declined 2.3 percent mth and ‘low-mid-rise’ unit approvals posted a small rise but coming off a sharp fall in March (Westpac estimates of seasonally adjusted approvals).
The state detail shows the high rise increase was concentrated in NSW and Qld.
Ex high-rise, approvals are showing tentative signs of stabilising in NSW and WA and are continuing to track higher in Qld and Vic, giving a very mixed read on trends overall.  The value of renovation and non res building approvals both posted strong gains in April, lifting trend growth into strong positive for renovations but just flat for non res building.
Overall, approvals continue to surprise to the upside but the detail is much less positive given the extent to which high rise approvals are driving gains. Details  Private houses  –2.3%mth, –8.9%yr      
Private 'units'    8.7%mth, 13%yr                       
NSW     10.4%mth, 18.8%yr   Vic       –2.7%mth, –4.6%yr   Qld       6.7%mth, 16.8%yr     WA       –0.6%mth, –28.4%yr SA        13.7%mth, 30%yr                  
Alteration &amp; additions^   18.7%mth, 13.7%yr     Non-residential^                         47.3%mth, 32.4%yr       ^ value      
 
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</body></html>

Matthew_Hassan-HHWHptmrw4

High-rise resurgence offsetting slowdown in other housing segments: Westpac's Matthew Hassan

<html><body>
GUEST OBSERVER
Fishermans Bend is Australia’s largest urban renewal zone and has Melbourne’s biggest speculative apartment supply pipeline.
17,873 residential dwellings have been proposed in Fishermans Bend since January 2014, yet only one project, Gravity Tower has proceeded. More than 6,500 dwellings currently hold planning approval while a further 23 projects totaling 10,800 dwellings are still awaiting a decision.
So what’s the problem?
The 450 hectares of land located adjacent to Melbourne’s existing CBD is prime for residential living. It presents the growing city an opportunity to expand whilst alleviating current housing affordability concerns. The City of Melbourne is forecast to grow by 100,000 new residents per year and is earmarked as Australia’s largest city by 2051, overtaking Sydney.  Further, social trends to live in close proximity to Melbourne’s CBD have added existing pressure on dwelling supply across the inner ring.
Fishermans Bend was rezoned from an industrial use in 2012. In 2014 the existing Fishermans Bend Strategic Framework Plan was released. But the plan has caused large uncertainty over the precinct’s future livability, which has ultimately stifled development. Vague transport and infrastructure plans specifically have undermined confidence. As a result land owners have postponed construction and flipping approved development sites has become a common practice.
The newly elected Victorian Minister for Planning, the Hon Richard Wynne, is to reboot the plans with the intention to create a clear vision for the future Fishermans Bend community. Appointing the Fishermans Bend Advisory Committee (FBAC) in July 2015 was his first step.  Whilst the plans are not set to be finalised until the end of 2016 multiple amendments have already been made:
<ul>
<li>
Land coverage increased: An additional 250 hectare zone has been added to the Fishermans Bend precinct; labelled as the employment precinct.</li>
<li>
Neighbourhood planning: Individual localised structure plans will be devised for the four neighbourhood precincts of Wirraway, Sandridge, Lormier and Montague, in addition to the overarching plan.</li>
<li>
Interim mandatory height limits: previously discretionary height controls were made mandatory in April 2015.</li>
<li>
Proposed Transport infrastructure: The 2014 infrastructure plans for two metro stations and a tram extension from the western end of Collins Street across the Yarra River were never finalised. A new integrated transport plan will be developed.</li>
<li>
Alternative use of the Port of Melbourne: In 2015 the Victorian State government leased the Port of Melbourne on a further 50 year term putting redevelopment plans on hold.</li>
<li>
Public third party engagement: A draft Communications and Engagement Plan was released in September 2015 putting greater emphasis on community and stakeholder engagement.</li>
</ul>
The sheer magnitude of potential development activity is a major challenge. Docklands, Melbourne’s most recent urban regeneration precinct is 20 years into its urban renewal and has witnessed a mere 5,300 apartments developed in this timeframe.
A multitude of factors will still need to be overcome by the refreshed plans to ensure Fishermans Bend emerges as a complementary mini city to the world’s most livable city, MELBOURNE.
<a href="/images/2016/02/22/Picture2_10Feb2016.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/22/Picture2_10Feb2016.jpg" alt="">
Annabelle Atkins is Research Analyst for JLL in Australia and can be contacted <a href="https://www.jllapsites.com/research/author/annabelle-atkins/" target="_blank">here</a>.
</body></html>

jchancellor-FAypfDUnLy

Melbourne’s hot spot for future apartment supply: Annabelle Atkins

<html><body>
GUEST OBSERVER
Dwelling approvals posted a better than expected rebound in Dec with a surprisingly strong rise in detached house approvals aiding an expected partial recovery in units from a big fall in Nov. Total approvals rose 9.2%, well above the consensus expectations of +4%. While approvals are still down 4.3% over the 2mths, the Dec detail was positive.
In particular, private detached house approvals posted a surprisingly strong 5.4% gain (+4.5%yr). This segment is typically more stable than total approvals and for most of 2015 was drifting lower at 0.6% a month. The gain accounted for the upside surprise vs expectations in Dec.
In contrast, the ‘other housing’ segment, i.e. units, posted a solid 12.8% rebound in line with expectations following the 22% slump in Nov (approvals down 6.5%yr). The detail shows a ‘modest’ partial rebound in high rise approvals (we estimate +12% in seasonally adjusted terms vs a 33% drop in Nov) with a slight gain in ‘low-mid-rise’ approvals. Interestingly, on a combined basis, detached housing and non-high rise units are now showing a reasonable uptrend running around +4% in annualised terms.
<a href="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.21.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.21.39%20AM.png" alt="">
Looking by state, the bulk of the monthly volatility was in Vic which whipped around ±35% in Nov-Dec. Approvals posted a solid 2.1% gain in NSW, pulled back 4.6% in Qld (though following a strong gain in Nov) and jumped in WA (though still down 29%yr). The state detail on detached houses showed gains in all states with a very strong 13.9% surge in Qld. The latter suggests some of the Dec gain in total detached housing could be an anomaly (Qld accounted for 2.1ppts of the 5.4%mth surge). 
The value of renovation approvals rose 3.5% in Dec to be up 11%yr, a reasonably solid uptrend in place albeit heavily concentrated in NSW where approvals recorded a big jump in Dec (+9.8%mth, +28.6%yr).
<a href="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.23.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.23.34%20AM.png" alt="">
In stark contrast, the value of non res building approvals continues to bump around a weak level with unconvincing momentum. A 6.1% fall in Dec left approvals flat vs a year ago with quarterly results suggesting activity will pull back sharply once current projects start to wind down.
Looking at 2015 as a whole, the calendar year saw a record 232k dwellings approved, a 13.7% jump on 2014 and blitzing previous records (prior to 2014, the record high was 201k in 1973). For the first time ever there was virtually a 50:50 split between detached houses and unit approvals with the latter accounting for almost all of the growth in the year.
The Dec report showed a better than expected finish to the hear, also hinting at some residual momentum in non-high rise sectors holding the construction cycle up. More generally, the concentration of units and longer time required for these projects points to another significant leg higher in actual construction work before an eventual peak comes in late 2016.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</body></html>

2015 saw a record 232,000 dwellings approved: Westpac's Matthew Hassan

<html><body>
GUEST OBSERVER
Dwelling approvals came in weaker than expected in Aug, with a fall in units dragging total approvals down 6.9% vs expectations of a 2% dip.
That said, the decline comes off a higher base with the Jul gain revised up from +4.2% to +7.9%. The net result is that the level of approvals in Aug is only 1% lower than the consensus forecast implied off the old base.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.57.28%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.57.28%20AM.png" alt="">
It's becoming an all too familiar refrain for monthly housing data, but volatility continues to cast major doubts over underlying trends. Some sort of slowdown is underway with approvals passing a clear peak back in Mar. The extent of the slowdown is proving difficult to pinpoint though.
Current trend figures show declines running at a 5–10% annualised pace but only a month or two ago the decline appeared to be running more in the 10-15% range. The monthly volatility is such that this trend pace could easily move again once another month's data is incorporated.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.58.35%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.58.35%20AM.png" alt="">
The detail shows the Aug decline was concentrated in ‘unit’ approvals which were down 11.4% following a 14.6% surge in Jul. Our estimates indicate that, within this segment, 'high rise' approvals have driven all of the Jul-Aug variation with the smaller 'low rise' sub-segment showing a more consistent downtrend throughout.
Private sector houses posted a surprisingly strong 4.9% gain in Aug, a relatively big move for what is usually a more stable segment. Note that private sector houses held flat throughout the most recent surge in approvals (since late 2014) which has entirely driven by units.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.00.25%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.00.25%20AM.png" alt="">
The state breakdown shows the Jul-Aug volatility centred on NSW where unit approvals spiked 98% in Jul, reversing 66% in Aug to be back below their Jun level.
Three month averages smooth the state level volatility somewhat. For 'high-rise' they show continued strength in NSW but signs of a fairly sharp downturn coming through in Vic (we have noted in previous bulletins that this is likely being accentuated by a pull forward in approvals associated with the new Vic state government levy introduced in July).
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.01.59%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.01.59%20AM.png" alt="">
For non-high rise, the state figures suggest strengthening approvals in NSW vs a moderation in Vic, flat-lining approvals in Qld and declines in WA.
The value of renovation approvals pulled back sharply in Aug, down 7.9%mth, with the 3mth rolling average growth rate slowing abruptly from 9.3% in Jun to –1.7% in Aug.
The value of non residential building approvals also fell 10% in Aug although that followed a similar-sized gain in Jul and is well within the range of volatility for this segment. Approvals are still on a reasonable rising trend.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.03.24%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.03.24%20AM.png" alt="">
Overall, the Aug detail is a little less downbeat than the surprisingly weak headline number would suggest. The main takeaway though is that a downturn of some sort is underway, the extent of which remains highly uncertain.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. 
</body></html>

Watch for a lift in the 'drop-out' rate between unit approvals and construction: Westpac's Matthew Hassan

<html><body>
GUEST OBSERVER
The Australian Bureau of Statistics (ABS) released building approvals data for October 2015 earlier today. 
Focusing just on dwelling approvals, although they were slightly lower than the recent record high levels, the overall number of dwellings approved for construction remain extremely high from a historical standpoint.
<a href="/images/2015/12/2/Chart-1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-1.jpg" alt="">
There were 19,652 dwelling approvals in October which was 3.9% higher over the month and 12.3% higher year-on-year.  If we look at approvals over the past 12 months there has been a record high 233,180 approvals which is 17.3% higher year on year.
<a href="/images/2015/12/2/Chart-2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-2.jpg" alt="">
In October 2015, there were 9,435 houses and 10,218 units approved for construction nationally.  House approvals are -2.1% lower over the month and -2.3% lower year-on-year.  The more ‘lumpy’ unit approvals have increased by 10.1% over the month and are 30.2% higher year-on-year.  The data highlights the rising prevalence of unit approvals and this is particularly reflected if we look at the annual approvals.  For the first time ever there have been more units approved (117,072) over the past year than houses (116,111).
<a href="/images/2015/12/2/Chart-3.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-3.jpg" alt="">
With the rising prevalence of unit construction there has also been a record high proportion of high-rise approvals over the past year.  Looking at unit approvals over the past year, 25.5% of approvals were for townhouses, 9.1% were for low-rise (less than four storeys) and 65.4% were for high-rise (four storeys or more).  
To put the rise in high-rise into context, a year ago 56.5% of unit approvals were high-rise, five years ago the figure was 38.1% and a decade ago high-rise accounted for 36.9% of unit approvals.  Clearly densification and demand for inner city living is driving the rising demand for high-rise units.  
It’s also important to note that over recent years, Chinese and Indians have overtaken New Zealanders and those from the United Kingdom as our largest sources of migrants.  While New Zealanders and those from the United Kingdom often prefer houses like most Australians, Chinese and Indians are much more accustomed to living in smaller homes and in much higher density environments.  This is another driver of the growing prevalence of high-rise approvals.
<a href="/images/2015/12/2/Chart-4.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-4.jpg" alt="">
Turning to approvals in the capital cities, there were 17,236 capital city dwelling approvals in October which was 15.9% higher over the month and 16.9% higher year-on-year. There were 6,691 houses and 10,545 units approved for construction over the month.  House approvals fell by -1.8% over the month to be -6.6% lower year-on-year while unit approvals increased 30.8% over the month and were 39.2% higher year-on-year.
<a href="/images/2015/12/2/Chart-5.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2015/12/2/Chart-5.jpg" alt="">
Across the individual capital cities, house approvals generally fell over the month however, they have for the most part been trending higher of late but are lower relative to a year ago.  Over the month there were 1,373 approvals in Sydney, 2,244 in Melbourne, 945 in Brisbane, 1,410 in Perth, 540 in Adelaide, 77 in Hobart, 43 in Darwin and 59 in Canberra.  Year-on-year the changes in approvals have been recorded at -3.8% in Sydney, +2.4% in Melbourne, -6.8% in Brisbane, -23.9% in Perth, +24.4% in Adelaide, +6.9% in Hobart, -30.6% in Darwin and -45.9% in Canberra.
<a href="/images/2015/12/2/Chart-6.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-6.jpg" alt="">
While housing approvals may be showing early signs of slowing across the capital cities, the same can’t be said for unit approvals which in most cities remain at or close to record highs.  Across the capital cities there were 3,630 approvals in Sydney, 3,640 in Melbourne, 1,671 in Brisbane, 677 in Perth, 561 in Adelaide, 6 in Hobart, 215 in Darwin and 145 in Canberra.  The year-on-year changes in approvals have been recorded at +73.7% in Sydney, +32.6% in Melbourne, +37.4% in Brisbane, -10.8% in Perth, +18.4% in Adelaide, -80.6% in Hobart, +83.8% in Darwin and +0.7% in Canberra.
Based on the data it seems that the demand from developers to seek approvals for units, particularly high rise approvals, is continuing to climb.  Countering this is the slowing in detached housing demand.  As mentioned earlier, the biggest sources of migration to Australia are more comfortable with high-rise development and this coupled with the fact it is relatively more affordable than detached houses seems to be driving the demand. 
The challenge from here with value growth now slowing is how many of these approvals will be delivered to the market.  We already have concerns surrounding potential settlement risk for projects already under construction given that banks have recently changed lending requirements to investor.  Keep in mind that unit stock is much more likely to be purchased by investors than detached houses.
Although there has been a slight easing of approvals over recent months they remain at near record highs.  Of course population growth is winding down, particularly overseas migration, which should result in an ongoing improvement in housing supply relative to housing demand.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.
</body></html>

ckusher-ujnxiKuFQs

Dwelling approvals remain at near record high levels thanks to high-rise approvals: Cameron Kusher

<html><body>
Dwelling approvals are historically close to record levels according to CoreLogic RP Data, who found Melbourne leading the nation in the number of approvals.
The CoreLogic RP Data Housing Market and Economic Update for August 2015 found Sydney follows Melbourne, followed by Perth and Brisbane.
 
<a href="/images/2015/08/28/Screen%20Shot%202015-08-28%20at%206.10.02%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/28/Screen%20Shot%202015-08-28%20at%206.10.02%20PM.png" alt="">
</body></html>

Dwelling Approvals

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Dwelling Approvals

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News