Gold Coast-based developer <a href="https://www.apartments.com.au/developers/ignite-projects">Ignite Projects</a> has lodged a Development Application for a landmark $120 million precinct set to transform the southern gateway of the much-loved Spit.

Positioned at the most prominent entry point to the iconic peninsula, the project has been designed with a strong focus on architecture, public space, heritage and connectivity, delivering a revitalised parkland setting that invites locals and visitors to engage with the Broadwater.

Central to The Isles proposal is a significantly upgraded public realm, including landscaped open space, a new waterfront café, and a family-friendly park featuring a naval-themed playground, open lawns and improved pedestrian connections.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="de83a270-6091-4b26-bed0-86f9248e7f9e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%201.jpg?VersionId=vt79HlCOwV9F7eLQe9.Z3bv9JGLMaSP2" />

The design retains and celebrates key elements of the site’s history. The training mast from the vacant and degraded naval cadet building, which forms part of a former Navy minesweeper, will be preserved. The existing Navy Memorial will be relocated and upgraded in collaboration with the RSL, allowing it to be publicly accessible for the first time in years. 
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Heritage-listed Humphreys Boat Shed remnants will remain and be incorporated into the landscape, while the site’s established Norfolk Pines will be retained, reinforcing the area’s character and sense of place. The enhanced parkland will ultimately create a long-term community asset at the entry to The Spit. 
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The Development Application (DA) lodged with Gold Coast City Council includes 28 waterfront apartments across three levels, ranging in size from 145sqm to 383sqm, designed as a feature landmark within the precinct and complement the public domain.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="bbf94e00-b56a-47fb-a15d-3d17b0b1ec76" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%203.jpg?VersionId=A0vmBNE_KohYJo1EoZcmF5IVW4tT5aDo" /> 
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Ignite Projects Director Josh Foote said the project as a whole had been carefully shaped to deliver a meaningful outcome for the wider community, not just future residents. 
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“This is about more than delivering opulent apartments – it’s about creating a welcoming and memorable gateway to The Spit that people can enjoy every day,” Mr Foote said. 
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“We’ve worked hard to ensure the public realm is a central part of the project, from the landscaped parklands and family-friendly spaces through to the preservation and celebration of important local heritage.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="443bbde5-8221-45f8-a549-dad2623df20c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%204.jpg?VersionId=iUl6nc.sHkjMdo_1RigwbwUz_celHJ3H" /> 
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Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, The Isles adopts a considered subtropical approach, with the building form shaped to maximise natural light, cross ventilation and views to the Broadwater and surrounding parklands. 
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Architect Rafael Contreras said the design responded directly to its unique coastal setting. 
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“Rather than a typical built form, the architecture has been shaped by performance and experience – from optimising outlook and privacy to creating a strong connection to landscape and climate,” Mr Contreras said. 
&nbsp; 
“A central landscaped courtyard allows light, air and greenery to permeate the building, while the articulated façade introduces movement and rhythm inspired by the Broadwater.

“The Isles will create a place where people can gather, relax and connect with the water, while also delivering a refined residential product that responds to its unique setting.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="1089570d-1120-4302-9900-fb9f75c75c26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%205.jpg?VersionId=pl9qmKZNbaL3A7XjmD7sjhLwmXaqzzLZ" /> 
&nbsp; 
The DA relates to the residential and public realm components, with a proposed boutique marina to be progressed as part of a future stage, subject to separate approvals. 
&nbsp; 
The Isles is being delivered under The Spit Master Plan, a collaborative vision to create a new residential, tourism, leisure, natural environment and cultural heritage hub on the iconic and much-loved peninsula.&nbsp; 
&nbsp; 
Ignite Projects has an established track record delivering premium residential projects across the Gold Coast, including The Monaco at Main Beach and Cabana at Palm Beach. 
&nbsp; 
Sales for The Isles are expected to commence in coming months from an on-site display suite, with construction targeted to begin later this year, subject to approvals.

Joel Robinson

Ignite Projects unveils exciting details of landmark gateway precinct for the Spit

The Federal Government’s sweeping changes to negative gearing and capital gains tax could trigger an unintended consequence: a surge of investor demand into the new and off the plan apartment sector.

While Treasurer Jim Chalmers has framed the reforms as a way to improve housing affordability and rebalance the tax system, the carve-outs for newly built housing are already positioning off the plan apartments as one of the few remaining tax-effective property investment plays.

Under the changes handed down in the Federal Budget, investors purchasing established properties after budget night will no longer be able to access negative gearing benefits. The Government will also replace the long-standing 50 per cent capital gains tax discount with a new inflation-indexation model and introduce a minimum 30 per cent tax on gains from July 2027.

However, there is a major exemption.

Investors buying new builds, including off the plan apartments, will still be eligible for negative gearing and will be able to choose between retaining the current 50 per cent CGT discount or adopting the new indexed model.

That distinction is expected to reshape investor behaviour almost immediately.

For years, established housing has dominated investor purchases because of its perceived lower risk, immediate rental returns and stronger historical capital growth. But with the tax advantages now heavily skewed toward new housing supply, the economics are changing rapidly.

The Federal Government has been explicit about its intent.

“The housing market and tax system are broken,” Chalmers said ahead of the Budget, arguing that existing concessions were disproportionately rewarding speculation rather than supporting housing supply.

The Government says the reforms are designed to encourage investment into new housing rather than established stock, a move aimed at increasing supply during a prolonged housing shortage.

According to the official Budget papers, limiting negative gearing to newly built homes is intended to “better align tax incentives with housing supply objectives.”

For the apartment development sector, particularly the off the plan market, the changes could become one of the strongest investor tailwinds in years.

Developers across Sydney, Melbourne and Brisbane have spent the past two years battling elevated construction costs, higher interest rates and subdued investor confidence. Many projects have struggled to secure sufficient pre-sales to commence construction, particularly in markets heavily reliant on investor demand.

The Budget changes may now alter that equation.

Investors seeking tax-effective property exposure will increasingly find themselves funnelled toward newly built apartments simply because established dwellings no longer offer the same benefits.

Commonwealth Bank described the reforms as one of the most significant shifts to residential property investment settings in decades, noting that the package is centred around “limiting negative gearing for residential property to new builds” while replacing the existing CGT framework.

That could have profound implications for the apartment sector.

Off the plan apartments already hold several advantages for investors. Purchasers typically secure a property at today’s price while settlement occurs years later, allowing time for capital growth and reducing the upfront capital burden. Brand-new apartments also generally attract depreciation benefits, lower maintenance costs, and stronger appeal to renters seeking modern amenity.

Now, they may also become one of the only residential property types still offering the full suite of historical tax advantages.

Industry analysts expect investor demand to increasingly migrate toward projects that can clearly demonstrate strong rental demand, transport connectivity and long-term supply constraints.

The shift is likely to be particularly pronounced in apartment markets already underpinned by structural undersupply, including inner Brisbane, the Gold Coast, parts of Sydney’s Lower North Shore and select Melbourne precincts where new apartment commencements have collapsed over recent years.

The reforms also arrive at a time when apartment supply nationally remains critically constrained.

Australia is already struggling to meet the Federal Government’s target of delivering 1.2 million new homes over five years. Construction feasibility pressures have delayed or shelved thousands of apartments across the country, particularly as building costs remain elevated and financing conditions remain tight.

Critics of the Budget changes argue the reforms could reduce overall investor participation in the housing market and place upward pressure on rents by discouraging investment in established housing.

Some economists estimate the measures could reduce housing supply over the longer term if overall investor appetite weakens.

However, the Government is betting that redirecting investor capital into new housing supply will offset those concerns.

“To continue to incentivise construction of new housing, investors building new residential properties will be able to choose either the 50 per cent CGT discount or the new arrangements,” the Budget papers stated.

That wording has been closely watched by the development industry because it effectively positions new apartments as the preferred investment class within residential property.

For off the plan developers, the reforms could become a powerful sales tool.

Projects that have increasingly relied on owner-occupier demand may once again attract investors seeking to preserve the tax advantages still attached to newly built housing before the July 2027 changes take effect.

The reforms are also expected to sharpen the divide between established and new housing markets.

Rather than a broad investor retreat from property altogether, many analysts expect a redistribution of capital toward sectors still supported by Government incentives.

That could create stronger demand for apartment projects in key urban growth corridors and transit-oriented precincts where population growth, migration and rental shortages remain elevated.

The policy direction also aligns with the Government’s broader push toward increasing housing density in established urban areas.

Across Sydney, Brisbane and Melbourne, planning reforms are increasingly encouraging higher-density apartment development around transport infrastructure and activity centres. By maintaining tax incentives for new housing, the Federal Government is effectively reinforcing that agenda from a taxation perspective.

For apartment developers who have spent years navigating subdued investor confidence, the changes may ultimately become the catalyst that reactivates parts of the off the plan market.

While the broader property sector is still digesting the long-term implications of the Budget, one thing is already becoming clear.

The era of investors buying established apartments and houses primarily for tax advantages may be ending.

But for off the plan apartments, the investment story may just be beginning.

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Investors to flood off the plan apartment market?

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

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

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

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

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

Goldfields sets the stage as Quartet Milton launches

Household Consumption

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EXPERT OBSERVER
Large falls in consumption-based spending post COVID-19 containment measures continued into May and across most industries (with some exceptions such as Construction), although the pace of decline looks to have stabilised.
Business payment inflows however have weakened further across most industries, and remain deeply negative in key parts of the economy (particularly Accommodation &amp; Food Services).
Consumption-based spending has stabilised in recent weeks, but is still down some 15% overall since the start of the year.
The rate of decline in spending has slowed in all states and territories, with the heaviest falls since the start of the year now in the ACT.
By industry sector, consumption spending over the year to date is down most in Administration &amp; Support Services, including Travel Agents (-88.9%), Accommodation &amp; Food Services (-56.0%) and Health Care &amp; Social Assistance (-40.3%).
Spending has grown in a handful of industries - Construction (28.3%), Utilities (7.2%) and Retail Trade (1.9%).
Some sub-industries have seen solid spending growth including Internet Publishing &amp; Broadcasting (39.9%), Construction Services (23.4%) and Gambling (22.4%). But some - Motion Picture &amp; Sound Recording Activities (-98.3%), Administration Services (-90.1%) and Other Transport (-88.2%) - are down heavily.
Business payment inflows into NAB merchants have also fallen sharply.
Business payment inflows into NAB merchants fell in May (-8.6%), after growing in the first 4 months of the year.
Inflows into Corporates were positive but have halved since April, and are falling for small, medium and large firms.
By industry, inflows are still falling most in Arts &amp; Recreation Services (particularly Amusement &amp; Other Activities and Sports &amp; Physical Recreation) and in Accommodation &amp; Food Services (particularly clubs), but at a slower rate. Inflows however rose sharply in Manufacturing (particularly in Pulp &amp; Paper Manufacturing).
ALAN OSTER is the NAB Group Chief Economist
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j.ballantyne1990-6AQqhLzZaK

Large falls in consumption based spending continue into May: NAB's Alan Oster

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NAB data shows dramatic falls in consumption-based spending and business payment inflows post COVID-19 containment measures, with the pace of decline continuing to accelerate quite rapidly across many industries.
Spending in the year to date has fallen heavily in all states and territories, with Victoria leading the way.
By industry sector, spending is down most in Administration &amp; Support Services, Accommodation &amp; Food Services and Transport, Postal &amp; Warehousing, with Construction the only sector recording growth.
A handful of sub-industries have seen spending growth including - Internet Publishing &amp; Broadcasting, Construction Services, Gambling Activities, Food Retailing and Building Cleaning &amp; Pest Control. Business payment inflows into NAB merchants have also fallen sharply.
Corporates continue to outperform (particularly compared to medium and small business) and inflows remain positive, but have fallen steeply in April.
By industry, the hit to inflows has been most apparent in the Accommodation &amp; Food Services (particularly Clubs, Pubs, Cafes, Restaurants &amp; Takeaway Food) and Arts &amp; Recreation Services (particularly Amusement &amp; Other Activities and Sports &amp; Physical Recreation) - sectors that have borne the brunt of forced business closures and social isolation measures.
Inflows are also down heavily in Mining.
Inflows are holding up best in Wholesale Trade - the only sector recording growth in inflows.
Other industries holding up comparatively well include Health Care &amp; Social Assistance and Professional, Scientific &amp; Technical Services, although payment incomes are well down on the previous month.
Big falls have also been recorded in parts of Retail including Clothing, Footwear &amp; Personal Accessories, Department Stores and Motor Vehicles. Only two sub-sectors reported positive gains in payment inflows - Specialised Food Retailing &amp; and Hardware, Building &amp; Garden Supplies.
 Overall, consumption spending has fallen 19.5% (not seasonally adjusted) since the start of the year. Spending over the year to date has fallen heavily in all states and territories. The steepest falls over the year to date are in VIC (-23.0%), followed by the ACT (-20.7%), WA (-20.5%) and NSW (-20.4%). Spending is currently holding up best in TAS (-14.9%) and the NT (-15.0%).
 During these extraordinary times we have taken the decision to publish aggregated customer datacategorised by industry segment with the view of helping to provide clarity around which segments of theeconomy have been most affected by the broader macroeconomic trends at play. NAB takes data privacy veryseriously. All customer transaction data has been aggregated and no individual’s data is specificallyidentified or analysed as part of this process. The data used in this report will not be sold or made publiclyavailable, but insights from the data will be shared with the Australian people.NAB data shows dramatic falls in consumption-based spending and business payment inflows post COVID-19containment measures, with the pace of decline continuing to accelerate quite rapidly across manyindustries.Spending in the year to date has fallen heavily in all states and territories, with Victoria leading the way. Byindustry sector, spending is down most in Administration &amp; Support Services, Accommodation &amp; FoodServices and Transport, Postal &amp; Warehousing, with Construction the only sector recording growth. Ahandful of sub-industries have seen spending growth including - Internet Publishing &amp; Broadcasting,Construction Services, Gambling Activities, Food Retailing and Building Cleaning &amp; Pest Control.Business payment inflows into NAB merchants have also fallen sharply. Corporates continue to outperform(particularly compared to medium and small business) and inflows remain positive, but have fallen steeply inApril. By industry, the hit to inflows has been most apparent in the Accommodation &amp; Food Services(particularly Clubs, Pubs, Cafes, Restaurants &amp; Takeaway Food) and Arts &amp; Recreation Services (particularlyAmusement &amp; Other Activities and Sports &amp; Physical Recreation) - sectors that have borne the brunt offorced business closures and social isolation measures. Inflows are also down heavily in Mining.Inflows are holding up best in Wholesale Trade - the only sector recording growth in inflows. Otherindustries holding up comparatively well include Health Care &amp; Social Assistance and Professional, Scientific&amp; Technical Services, although payment incomes are well down on the previous month.Big falls have also been recorded in parts of Retail including Clothing, Footwear &amp; Personal Accessories,Department Stores and Motor Vehicles. Only two sub-sectors reported positive gains in payment inflows -Specialised Food Retailing &amp; and Hardware, Building &amp; Garden Supplies
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Consumption spending down 20% due to COVID-19 measures: NAB

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The Reserve Bank (RBA) last week released the minutes of the Monetary Policy Meeting for February 2019.
One of the things that really stood out for me was the commentary relating to the housing market, specifically relating to the impact of falling prices. The following quote is taken straight from the minutes:
"From a longer-run perspective, members assessed that, following such large increases in housing prices, the effect of the recent price falls on overall economic activity was expected to be relatively small. However, members observed that if prices were to fall much further, consumption could be weaker than forecast, which would result in lower GDP growth, higher unemployment and lower inflation than forecast. From a financial stability perspective, tighter lending standards, an improving labour market and low interest rates were all likely to support households' capacity to service their debt. Few households were in negative equity positions despite the falls in housing prices, implying that banks' losses would be limited even if household financial stress were to become more widespread."
<a href="https://www.propertyobserver.com.au/images/2019/2/26/household%20consumption%201%20.png" target="_blank">Click here</a> to enlarge: 
<img src="https://www.urban.com.au/images/2019/2/26/household%20consumption%201%20.png" alt=""> 
While it would be great to know how much further the RBA believes dwelling values would have to fall to start affecting consumption, it is looking inevitable that dwelling values will fall further over the coming months. As the above chart shows, values have now declined from their peak across each of the five largest cities in Australia, values have also recorded a significant decline over recent years in Darwin, and a more recent monthly fall in Hobart. Many other regions, including regional areas of most states and territories have recorded falls in dwelling values, with values in Regional Qld and Regional WA sitting lower than their peak for more than a decade now. The decline in dwelling values doesn’t appear to be close to finding a floor yet. This is particularly the case in the two largest markets of Sydney in Melbourne. In fact, if anything the rate of decline in both of these cities has been accelerating over recent months.
 <img src="https://www.urban.com.au/images/2019/2/26/household%20consumption%202.png" alt="">
The concerns about the impact of a declining housing market on household consumption are well founded. Household consumption accounts for more than half of gross domestic product (GDP) so if consumption slows, it is very likely that economic growth will also slow. To-date household consumption has been steady however; consumption isn’t growing as it did before the financial crisis and it has slowed over recent years.
<img src="https://www.urban.com.au/images/2019/2/26/household%20consumption%203.png" alt=""> 
At the same time as consumption has underperformed, the household saving ratio has reduced over recent quarters, highlighting that households are saving less.  While the ratio has not fallen to the lows recorded during the 2000s it is clear that households are saving a lot less than they were initial post-GFC and this is despite inflation remaining consistently below 2%. To-date the reduction in saving has not provided a boost to household consumption and in fact, more regularly released retail trade data shows that expenditure at the shops has reduced which doesn’t bode well for consumption figures going forward.
<img src="https://www.urban.com.au/images/2019/2/26/household%20consumption%204.png" alt=""> 
 
Over the 2018 calendar year, retail trade increased by 2.8%. By comparison, compound annual growth in retail trade over the past decade has been recorded at 3.3%. NSW where dwelling values are recording the greatest declines has seen retail trade increase by 1.7% over the past year, the slowest annual rate of change since March 2012. Not only is NSW the largest and most expensive housing market, it also accounts for almost one-third of national retail trade. If trade continues to slow in the largest state, it is unlikely to bode well for household consumption going forward. Given the already declining housing market, which looks set to continue, slower household consumption, below target inflation, reduced household savings and slowing retail trade, it looks likely that household consumption growth will slow further over coming quarters. As the RBA states that could lead to slower economic growth and in-turn necessitate an interest rate cut. The RBA board next meets on the 5th March. Between then and now a raft of additional data will be released including: the CoreLogic Home Value Index, private sector credit data, building approvals data and a range of inputs for the National Accounts. Unfortunately, National Accounts will not be released until the day after the RBA board meeting however, they will have plenty of new information to assess. Will it be weak enough to necessitate a rate cut? Who knows, but with the RBA shifting to a more neutral interest rate outlook, a run of poor data could see the next RBA meeting become ‘live’ for a rate cut despite not having the full data from the National Accounts until the following day. Personally, I don’t think the RBA will be ready to cut official interest rates next month but with each data release I am more convinced a rate cut is looking more likely. In fact, labour force data which has been showing an ongoing decline in the unemployment rate is the only data release which is overly positive at the moment.
Cameron Kusher is a Research Analyst at CoreLogic.
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Consumption could slow with expectations of further housing value falls: Cameron Kusher

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<img src="https://counter.theconversation.edu.au/content/81084/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Household energy use is a significant contributor to global carbon emissions. International policy is firmly moving towards technology-rich, low- and near-zero-energy homes. That is, buildings designed to reduce the need for additional heating, cooling and lighting. They use efficient or renewable energy technology to reduce the remaining energy use.
But what about the experiences of people who live in homes of this standard? Are these homes comfortable, easy to operate, and affordable? Do people feel confident using so-called smart energy technology designed for low energy use? What support systems do we need to help people live in low-energy, low-carbon houses? 
We worked with other Australian and UK researchers to understand what it’s like to live in purpose-built low-energy housing. As part of this project, researchers from Sheffield Hallam University and the University of Salford in the UK visited South Australia to collect data from Lochiel Park Green Village, one of the world’s most valuable living laboratories of near-zero energy homes. 
Lochiel Park’s 103 homes were built in the mid-2000s to achieve a minimum of 7.5 energy efficiency stars. They’re purpose-built to be a comfortable temperature year-round, and are packed with a solar photovoltaic system, solar hot water, a live feedback display to show households their energy use, plus a range of water- and energy-efficient appliances and equipment. Combined, these systems reduce both annual and peak energy demand, and supply much of that energy at a net zero-carbon impact.
To reciprocate, we spent several weeks investigating similar examples of niche low-energy housing developments in the Midlands and the North of England. We listened to the stories of people living in low energy homes, who experience the difference on a daily basis, and from season to season. They help us look beyond the dollars saved or percentage of emissions reduced; for them the impact of low-energy homes is personal.
This research provides new insights into the relationship between people, energy technologies and low-carbon buildings. For example, one elderly householder told us that moving into a dry and warm low-energy home allowed their grandchildren to come and stay, completely changing their life, and the life of their family. 
Low-energy homes create a wide range of physical and mental changes. Several households spoke about health improvements from higher indoor air quality. Even the idea of living in a healthier and more environmentally sustainable home can prompt lifestyle changes – one woman in her mid-50s told us she gave up smoking after moving into her low-energy house because she felt her behaviour should match the building’s environmental design. She also shortened the length of her showers, reduced her food wastage, and lowered her transport use by visiting the supermarket less often.
Purpose-built low-energy homes also give economic empowerment to low-income households. One household told us that savings on energy bills let them afford annual family holidays, even overseas. This economic benefit matches our findings in other Australian examples.
As researchers, we might dismiss this as a macro-economic rebound effect, voiding many of the energy and environmental benefits. But to that household the result was a closer and stronger family unit, able to make the types of choices available to others in their community. The benefits in mental and physical wellbeing are real, and more important to that family than net carbon emission reductions.
Although international policy is firmly moving towards technology-rich, low-energy homes, our research shows that not all technology is user-friendly or easy to understand. For example, some households were frustrated by not knowing if their solar hot water system was efficiently using free solar energy, or just relying on gas or electric boosting. Design improvements with better user feedback will be critically important if we are to meet people’s real needs.
This research highlights the importance, in the transition to low-energy and low-carbon homes, of not forgetting the people themselves. Improving real quality of life should be the central focus of carbon-reducing housing policies.
<a href="https://theconversation.com/profiles/stephen-berry-7082" target="_blank">Stephen Berry</a> is research fellow, University of South Australia.
<a href="https://theconversation.com/profiles/david-michael-whaley-390397" target="_blank">David Michael Whaley</a> is research fellow in Sustainable Energy and Electrical Engineering, University of South Australia.
<a href="https://theconversation.com/profiles/trivess-moore-12580" target="_blank">Trivess Moore</a> is research fellow, RMIT University.
All are authors for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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