<a href="https://www.apartments.com.au/developers/draycon">Draycon Building</a> is nearing completion of Boutique Chevron Island, a 42-apartment development on the northern end of Chevron Island at 17–19 Parneno Street, with a limited-time offer of fully furnished apartments available.

Now more than 90 per cent complete, <a href="https://www.apartments.com.au/buildings/boutique-chevron-island-17-19-parneno-chevron-island-qld-4217">Boutique</a> has been shaped by one of the Gold Coast’s most tightly held island addresses, where riverfront outlooks and walkable access to Surfers Paradise converge.

For Draycon Building Managing Director Howard Dabit, the appeal of the site was immediate.

“I knew it was a good site as soon as I saw it,” Dabit said.

“The position and location on the north end of <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>, the way the river swirls around the site basically from the north to the east, it feels like the site is surrounded by the water. The height that we’ve got and the aspect looking north is beautiful. Eighty per cent of the apartments are looking north so they get that drenching sunlight coming in.”

[smartcode_project:default project_id=89709 project_image_fid=360922]

That northern orientation places the development within a stretch of Chevron Island defined by open river aspects and skyline views, while remaining embedded in the suburb’s established village setting.

Chevron Island has increasingly drawn owner-occupiers seeking centrality without the intensity of high-rise beachfront living. Positioned at the geographical centre of the Gold Coast, the island offers direct access to both the beach and key cultural infrastructure while retaining a neighbourhood-scale character.

Connected by bridge to Surfers Paradise, Chevron Island offers walkable access to beaches, riverfront parklands and a revitalised foreshore boulevard animated by walkers and cyclists throughout the day. The Pacific Ocean is only minutes away, reinforcing the suburb’s dual river-and-surf identity.

At the same time, Thomas Drive forms the spine of the island’s village life, delivering cafés, wine bars, casual dining and everyday services within easy reach. Independent grocers, wellness operators and neighbourhood retailers contribute to a community atmosphere that remains distinct from the vertical scale of the beachfront.

[smartcode_project:default project_id=89709 project_image_fid=360915]

In the opposite direction, the Green Bridge links directly to HOTA – Home of the Arts – placing galleries, performance venues and parklands within walking distance. Weekly markets and major exhibitions draw visitors from across the region, while residents return to a quieter residential pocket at day’s end.

Public transport, including nearby bus routes and the G:link light rail corridor along the coastal spine, strengthens connectivity north and south. Griffith University, the Gold Coast University Hospital precinct and established private schools such as The Southport School are all within a short drive.

Ongoing investment across Surfers Paradise, HOTA and the broader Southport corridor has elevated amenity while preserving Chevron Island’s comparatively low-rise residential character. It is this balance, walkable village atmosphere paired with metropolitan-scale infrastructure, that continues to differentiate the suburb from higher-density beachfront precincts.

Boutique comprises just 42 residences, designed to maximise river and skyline outlooks within this tightly held island setting.

Boutique Chevron Island is slated for completion in April 2026, with prices starting from $1,220,000.

[smartcode_project_cta:default project_id=89709]

Joel Robinson

Draycon Building’s Boutique Chevron Island places 42 residences at the heart of the Gold Coast

Sydney developer <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a> has secured planning approval for a $300 million residential development in Lindfield, marking the company’s second project on Sydney’s North Shore and its first on the Upper North Shore.

Located on Beaconsfield Parade and designed by DKO Architecture, the state significant development comprises three buildings of up to 10 storeys and will include 399 residences, including 59 affordable homes and 40 adaptable homes.

Residences will range in size from one, two and three bedrooms, with two-bedroom apartments accounting for over 60 per cent of the product make-up. Residents will have access to a broad suite of amenities, including a wellness area, indoor and outdoor recreational spaces, a pool, a gym, a community room and a golf simulator.

In line with Deicorp’s long-standing focus on creating transit-oriented communities, the project is located just 260 metres from the Lindfield Train Station, reinforcing its role in delivering well-connected housing close to established infrastructure, retail and local services.

The inclusion of affordable and adaptable housing supports greater diversity within the local market, while the mix of apartment types responds to demand from downsizers, young professionals and families seeking access to the Upper North Shore.

Deicorp Founder Fouad Deiri OAM said the approval represents an important milestone for both the company and the suburb

“This approval allows us to deliver well-designed homes in a location that is already supported by strong transport and community infrastructure," Deiri said.

"Our focus is on creating places that integrate into their surroundings and provide long-term value for residents, and the broader Lindfield community. Being within walking distance of the station ensures this project supports sustainable growth in the right locations."

Across its portfolio, Deicorp currently has 4,703 apartments under construction, playing a leading role in shaping connected, liveable communities across Sydney.

Its expanding portfolio of Metro-linked developments includes Tallawong Village, <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> in Five Dock, <a href="https://www.apartments.com.au/new-apartments/hyde-metropolitan-sydney-133-141-liverpool-street-sydney-nsw-2000">Hyde Metropolitan</a> in Sydney CBD, <a href="https://www.apartments.com.au/new-apartments/falcon-alexander-crows-nest-8-alexander-street-crows-nest-nsw-2065">Falcon &amp; Alexander</a> in Crows Nest and Showground Village, Castle Hill.

Deicorp purchased the Beaconsfield Paradise site last year. Construction is scheduled to commence in Q2 of 2026 and will be completed in 2029.

Deicorp expands portfolio to nearly 5,000 apartments with Lindfield project

In a joint venture with The Trump Organization, Australia developer Altus Property Group has announced plans to bring a Trump International Hotel &amp; Tower to the Gold Coast, marking the first Trump-branded project in Australia.

"Trump International Hotel &amp; Tower, Gold Coast is our first official project in Australia and reflects our unwavering commitment to delivering world-class luxury experiences in iconic locations around the world," Eric Trump, Executive Vice President of The Trump Organization, said.

"This development exemplifies the Trump brand’s dedication to quality, sophistication, and unmatched service, and we are thrilled to bring this vision to the vibrant Gold Coast community."

The 91-storey building, which will become the tallest in Australia at 335 metres, will feature a&nbsp;285-room luxury hotel bearing the trademark Trump logo. It will also include 272 luxury residential apartments, a three-level podium with an exclusive Beach Club, and over 3,400 sqm of premium commercial, retail, and dining space, revitalizing the central Surfers Paradise precinct.

“Trump International Hotel &amp; Tower, Gold Coast will be a truly unique offering in the Australian market, bringing the prestige and allure of a world-class luxury brand,"&nbsp;Altus founder and chief executive David Young said.

"Altus Property Group is proud of its track record in delivering landmark developments across Australia, and our expertise ensures this project will be an outstanding success."

Trump Hotel heads for the Gold Coast to become Australia's tallest building

More than a century after the Corrimal Coke Works first opened in 1912, the industrial landmark that helped shape the suburb is being reinterpreted as a walkable residential neighbourhood, with Stage One of <a href="https://www.apartments.com.au/new-apartments/the-works-stage-one-27-railway-street-corrimal-nsw-2518">The Works</a> now underway at 27 Railway Street.

For 102 years, the site was central to <a href="https://www.apartments.com.au/developments/corrimal-nsw-2518">Corrimal</a>’s economic and social identity before operations ceased in 2014. Rather than erasing that legacy, developer Legacy Property has embedded it into the masterplan, retaining and reinterpreting elements such as the iconic 1912 brick chimney and sections of the original C1 Coke Oven Battery, alongside the adaptive reuse of the former powerhouse building.

Stage One will introduce 181 apartments across low-rise buildings, offering predominantly two and three-bedroom residences with completion targeted for mid-2027. The scale and configuration reflect a deliberate focus on owner-occupiers, targeting those seeking a lower-maintenance home in a prime location within the northern suburbs of Wollongong.

[smartcode_project:default project_id=143415 project_image_fid=359833]

Apartments have been designed to maximise natural light and cross-ventilation, with floor-to-ceiling glazing extending living areas onto generous balconies. Engineered timber flooring, induction cooktops and 900mm ovens in larger residences support everyday functionality, while two interior palettes allow buyers to tailor finishes to their preferences. The material selection draws on a restrained coastal language, intended to connect homes to their surroundings rather than compete with them.

The Works forms part of a broader 18-hectare masterplan that will ultimately deliver around 550 dwellings, new parks, and a heritage precinct celebrating the site’s past. More than seven hectares are dedicated to open space, including Southern Park and a Village Green with community gardens and recreation areas. The creek corridor is being rehabilitated with 150,000 native plantings, restoring biodiversity to the site and softening landscape.

[smartcode_project:default project_id=143415 project_image_fid=359841]

Positioned adjacent to Corrimal Station and within walking distance of Corrimal Town Centre, the precinct places daily essentials, rail connections and local retail within easy reach. Wollongong CBD, including the hospital, university and entertainment venues, sits approximately 6.5 kilometres to the south.

For buyers more familiar with North Wollongong, Corrimal offers a different proposition: a well-established coastal suburb framed by beaches to the east and the escarpment to the west, with a strong sense of local identity shaped in part by the former Coke Works. The Works seeks to reinforce that identity by creating a connected, walkable neighbourhood between coast and escarpment, rather than a standalone apartment complex.

Sustainability underpins the development approach. The Works is targeting Wollongong’s first 5-Star Green Star-rated community, with water-sensitive urban design, recycled materials and energy-efficient buildings integrated across the masterplan. For residents, these measures provide not only environmental benefits but also reduced operational costs and future resilience.

[smartcode_project:default project_id=143415 project_image_fid=359842]

With construction commenced and display materials available to view, prospective buyers can now engage more directly with the project’s vision, reviewing floorplans, material selections and the broader masterplan in detail. For many local homeowners weighing a move, the opportunity to experience how heritage, landscape and contemporary design intersect may help bridge the gap between familiarity and the next chapter.

As Stage One progresses toward its mid-2027 completion, The Works represents a significant chapter in Corrimal’s evolution, transforming a site that once powered local industry into a walkable residential precinct designed for its next generation of residents.

[smartcode_project_cta:default project_id=143415]

Legacy Property’s The Works reimagines Corrimal’s century-old Coke Works

When it comes to developing in Melb​ourne's Bayside region, <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> knows exactly what buyers want.

With a longstanding presence in the area and a string of sell-out projects, Lowe Living consistently delivers developments that are as sought-after as their predecessors.

Their latest instalment is in <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a><a href="https://www.apartments.com.au/developments/hampton-east-vic-3188">&nbsp;East,</a> the same postcode where they have previously delivered Hampton Hill and Oceano. The developer-builder recently commenced construction on its newest project,&nbsp;<a href="https://www.apartments.com.au/new-apartments/marella-hampton-31-35-alicia-street-hampton-east-vic-3188">Marella</a>, a collection of 32 apartments just five minutes from the beach.

Site acquisition is paramount to success. Lowe Living rarely brings a building to market that isn’t within walking distance of essential amenities, whether it be the beach, a prominent retail strip, or a train station. Marella is no exception, located at its Alicia Street address, less than a kilometre from the retail heart of Hampton Street and Hampton Station.

[smartcode_project:default project_id=146197 project_image_fid=358495]

Equally important to Lowe Living is the architecture.

For Marella, they appointed <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, who explains that the architectural vision was to create a contemporary reinterpretation of the Californian bungalow, a style that’s iconic to Hampton’s heritage.

"By borrowing, abstracting, and reinterpreting elements of this quintessential style, such as strong datum lines, articulated columns, exposed structures, and roof tiles, our design strikes a balance between modernity and familiarity," says Cera Stribley.

"This approach ensures that the development is not only visually appealing but also contextually sensitive, resonating with Hampton's existing architectural landscape."

[smartcode_project:default project_id=146197 project_image_fid=358499]

The building features terracotta brick, soft cream masonry, and exposed metal detailing, giving it a tactile presence that is intended to weather gently over time.

Internally, the focus on lasting quality continues, with two and three-bedroom residences anchored by sculptural stone kitchen islands, natural light, and clearly defined transitions between living, dining, and outdoor spaces.

The layouts have been carefully designed. Open-plan zones extend to private balconies, with light-filled interiors and generous kitchen proportions, supported by Miele wall ovens, induction cooktops, and integrated fridge-freezers. These are not small apartments rebranded as luxury; they have been designed at scale, with ample storage, hotel-style entry access, and secure basement parking provided as standard.

[smartcode_project:default project_id=146197 project_image_fid=358492]

At the uppermost level, Marella’s Signature Collection penthouses offer city or bay views, large entertaining terraces (some with outdoor spas), and elevated finishes, including fully wrapped stone kitchen benches and a Liebherr wine fridge.

Flexible room arrangements allow for a fourth bedroom or secondary living space, sought-after by both empty nesters who want the space when family visits and families with older children.

[smartcode_project:default project_id=146197 project_image_fid=358498]

A residents’ lounge on the ground floor reinforces the project’s small-community feel. With a fireplace, private dining area, and adjoining terrace, it’s one of several shared spaces that balance amenity with privacy and scale.

Construction has commenced, with completion expected in early 2027.

[smartcode_project_cta:default project_id=146197]

Lowe Living continues Bayside legacy as Marella rises in Hampton

Income

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Home loan arrears are just beginning to creep a bit higher on weak income growth. So reports the Commonwealth Bank (ASX: CBA) in its trading update. 
<div class="separator"><a href="https://3.bp.blogspot.com/-Pmu1pNOxlig/WvI_Z6QG82I/AAAAAAAAp6k/BOUkDZcbQ1MFLXlP6aL2Pe5dtLBJFaXBwCLcBGAs/s1600/CBA.jpg"><img src="https://3.bp.blogspot.com/-Pmu1pNOxlig/WvI_Z6QG82I/AAAAAAAAp6k/BOUkDZcbQ1MFLXlP6aL2Pe5dtLBJFaXBwCLcBGAs/s640/CBA.jpg" width="640" height="374" data-original-height="505" data-original-width="863"></a></div>
<div> </div>
<div>
Source: ASX 
</div>
<div>
<div>The market was unhappy with the trimmed unaudited cash profit of $2.35 million. The result is 2.1 per cent lower than the unaudited figure for the prior year's corresponding period. </div>
<div> </div>
<div>Share price latest: down -3.4 per cent to $71, having bounced off the intraday lows at $70.80.</div>
<div> </div>
<div>Our latest report for funds and institutional investors <a href="https://www.livewiremarkets.com/wires/3-immediate-implications-of-tighter-lending-standards" target="_blank">Chemical Change</a> discusses the downside risks eventuating from a combination of trimmed lending volumes, a potential loss of market share, compressed margins, and an uptick in home loan arrears. </div>
<div> </div>
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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pwargent-M4siyDbqQY

Weak income growth triggering higher arrears: Pete Wargent

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GUEST OBSERVATION
In all Australia’s capital cities, average share-house rents in the inner suburbs (where <a href="https://theconversation.com/rapid-growth-is-widening-melbournes-social-and-economic-divide-117244" target="_blank">jobs are concentrated</a>) leave people without enough money for food and other basics, new research shows.
This research, for a forthcoming report by the authors, proves there is a rental housing crisis for people on Newstart (and other low-income earners) everywhere in Australia.
The analysis was based on Real Estate Institute of Australia (REIA) <a href="https://reia.asn.au/product-category/individual-data-purchase/" target="_blank">data</a>, using common indicators such as housing affordability and stress. Housing stress for people on low incomes is <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/3040-indicator#targetText=The%20'30'%20in%20the%2030,to%20be%20in%20housing%20stress." target="_blank">defined</a> as when rent costs more than 30% of their income.
For example, the dataset for Victoria (the third-most-expensive rental market and broadly representative of the nation) shows rent for a share house in Melbourne averages 70% of income for a single person receiving <a href="https://www.humanservices.gov.au/individuals/services/centrelink/newstart-allowance/how-much-you-can-get" target="_blank">Newstart</a> (A$277.50 per week) and <a href="https://www.humanservices.gov.au/individuals/services/centrelink/rent-assistance" target="_blank">Commonwealth Rent Assistance</a> (A$45.74 per week). This leaves people with A$98 a week to live on. That’s less than half the <a href="http://unsworks.unsw.edu.au/fapi/datastream/unsworks:46141/binaaacbcf3-915f-40bc-a70f-2052746ab643?view=true" target="_blank">A$216 a week</a> that experts calculate is a healthy base level of income for a single unemployed person.
After paying rent, people on Newstart have just A$14 a day to cover food, utilities and the costs of job seeking such as mobile phone plans and travel cards (<a href="https://www.ptv.vic.gov.au/tickets/fares/metropolitan-fares/" target="_blank">A$4.40 a day in Melbourne</a>).
<a href="https://images.theconversation.com/files/292976/original/file-20190918-187957-hzokjt.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/292976/original/file-20190918-187957-hzokjt.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author analysis based on REIV data, Author provided
While it was assumed rent for people on low incomes eats up much of their benefits, this analysis shows just how bad the situation has become in all capital cities. It is worst in Sydney. As the chart below shows, median weekly rent in Sydney is A$550, which when split between two renters amounts to A$275 each. This leaves a renter on Newstart with the princely sum of just A$48.24 a week – A$6.89 a day – to live on.
<a href="https://images.theconversation.com/files/293088/original/file-20190918-187991-14slgpp.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/293088/original/file-20190918-187991-14slgpp.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Affordable rent points compared to median rents in capital cities. Author analysis using REIV data, Author provided
What about living in cheaper areas?
Another worrying aspect of the data is it suggests high rents are compelling people on Newstart payments to relocate from inner cities to the outer suburbs and satellite towns with worse labour markets and higher transport costs. And even in these towns, the data paint a bleak picture.
In Victorian regional cities like Bendigo and Ballarat the rent for sharers exceeds the commonly accepted 30% benchmark for housing stress. Here they would be paying A$130 a week – almost half their Newstart payments. With Rent Assistance, that would leave them with A$192 – still A$24 less than the healthy benchmark.
There are only two regions in all of Australia where single unemployed people would have any hope of meeting rents. These are northern Tasmania and outer Hobart, where the <a href="https://www.rdatasmania.org.au/news/tasmania-ranks-high-in-youth-unemployment-hotspots/" target="_blank">youth unemployment rate is 16%</a>. You can add about another <a href="http://bilbo.economicoutlook.net/blog/?p=22954" target="_blank">10 points to the unemployment rate</a> to get a real sense of the challenges of getting jobs in these places.
<a href="https://images.theconversation.com/files/293089/original/file-20190918-187935-wq63n8.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/293089/original/file-20190918-187935-wq63n8.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Affordable rent points compared to median rents for regions. Author analysis using REIV data, Author provided
Benefit increases are essential
So what is affordable for people on Newstart? For single people receiving Newstart and <a href="https://www.humanservices.gov.au/individuals/services/centrelink/rent-assistance" target="_blank">Rent Assistance</a>, share-house rents would have to be A$87.
While the table below shows A$97, that would be the affordable rent if maximum Rent Assistance were paid. But it does not actually kick in until <a href="https://www.humanservices.gov.au/individuals/services/centrelink/rent-assistance/eligibility-payment-rates/how-much-you-can-get" target="_blank">weekly rent exceeds A$61</a>. So low-rent places do not attract as much of a subsidy from Rent Assistance as higher-rent properties.
This points to the need for Rent Assistance to kick in at a lower income point. It also needs to be increased to avoid housing stress.
<a href="https://images.theconversation.com/files/293091/original/file-20190918-187985-ykep1q.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/293091/original/file-20190918-187985-ykep1q.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Author provided
The federal government’s response to this kind of evidence always relies on an argument that Newstart is intended as a <a href="https://www.financeminister.gov.au/transcript/2019/07/22/abc-radio-%E2%80%93-am" target="_blank">“transitional” payment</a>. The unemployed are told they should “<a href="https://www.theguardian.com/australia-news/2019/jul/29/unfunded-empathy-scott-morrison-pushes-back-on-growing-calls-to-lift-newstart-rate" target="_blank">get a job</a>”.
But it is very clear this is not as easy as it sounds. That is because there are increasing numbers of people on Newstart <a href="https://www.theage.com.au/politics/federal/200-000-australians-with-a-disability-struggling-to-get-by-on-newstart-report-20190916-p52rt6" target="_blank">with disabilities</a> and <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2018-09-25/mature-workers-on-newstart/10195296" target="_blank">over 55 years old</a> – the majority of <a href="https://theconversation.com/are-most-people-on-the-newstart-unemployment-benefit-for-a-short-or-long-time-120826" target="_blank">long-term unemployed</a> are now mature-age job seekers.
There are also <a href="https://theconversation.com/these-job-snob-claims-dont-match-the-evidence-121429" target="_blank">far more applicants than job vacancies</a>. It’s worse in regional areas where there are fewer jobs to begin with.
Many welfare agencies are preparing submissions to a <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/Newstartrelatedpayments" target="_blank">Senate inquiry</a> into Newstart and related payments in time for the September 30 deadline. These submissions are expected to contain even more compelling analysis showing it is impossible to survive on Newstart.
The Australian Council of Social Service (<a href="https://www.acoss.org.au/about-us/" target="_blank">ACOSS</a>) and several other agencies are demanding that <a href="https://raisetherate.org.au/" target="_blank">Newstart be raised by at least A$75 a week</a>. Even this badly needed increase will not fully alleviate housing stress, which is the <a href="https://www.acoss.org.au/housing-homelessness/" target="_blank">main cause of homelessness among low-income people</a>.
Simone Casey, Research Associate, Future Social Service Institute, RMIT University
Liss Ralston, Urban Statistician, Centre for Urban Transitions, Swinburne University of Technology
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/city-share-house-rents-eat-up-most-of-newstart-leaving-less-than-100-a-week-to-live-on-123772" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

City share-house rents eat up most of Newstart, leaving less than $100 a week to live on

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<img src="https://counter.theconversation.edu.au/content/73841/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
As in many other countries, income inequality in Australia has grown over the past two decades.
At the same time, Australia is one of the most urbanised countries in the world, with more than 60 percent of the population concentrated in just six major cities. Incomes in these cities are very spatially segregated, with high and low earners concentrated in different suburbs. 
Do recent trends mean this joke is increasingly likely to be true?
In new research, I used census data to examine these patterns. Focusing on the incomes of men aged 25-54 in our six largest cities, I found that income inequality among men has grown substantially since 1991 – particularly during the 1990s. 
This has been associated with increases in the relative income gaps between different areas within the cities. The share of inequality associated with location has also increased over time – an indicator of increasing segregation. 
To the extent to which people draw on the resources of the people who live in their local area, this spatial segregation has potential implications for social cohesion and intergenerational inequality. There are also substantial differences across cities. Sydney was substantially more unequal than other cities over the whole period.
<h2>The census tells us the gap has widened</h2>
These results are based on detailed tabulations from the five censuses from 1991 to 2011. The focus on men aged 25-54 is partly for data availability reasons, but also permits a simpler focus on those income trends associated with wage growth and workforce-age income support payments. 
The research examines how incomes vary across the local areas in our six largest cities. These areas are defined using the Australian Bureau of Statistics “statistical local areas” (SLAs) designation. 
In Sydney and Melbourne, SLAs correspond closely to local government areas, while they are generally smaller areas in the other states. The income measure is the single census question on the person’s total income (before deducting taxes) – answered in categories. 
Statistical interpolation techniques are used to generate a smooth income distribution and to compensate for a change in the payments of income support between 1991 and 1996. More details can be found here.
The graph below shows trends in city-wide inequality since 1991. 
<a href="https://www.propertyobserver.com.au/images/2017/04/11/image-20170306-919-fd0169.png" target="_blank">Click to enlarge</a>
<h4><img src="https://www.urban.com.au/images/2017/04/11/image-20170306-919-fd0169.png" alt=""></h4>
<h4>
Figure 1: City-wide inequality. Author's calculations from ABS Census data
</h4>
In each city, male income inequality grew substantially during the 1990s. It flattened out after 2001 (generally increasing slightly up to 2006, then falling back a little after the global financial crisis). In all years, incomes were substantially more unequal in Sydney than the other cities, with this gap widening over the period. 
In part, this reflects the larger size of Sydney. However, Sydney is now only slightly larger than Melbourne. Most of the gap is likely due to the high wages in parts of the financial services industry centred in Sydney. 
Within the sub-regions of each city, inequality also increased, following a similar pattern. However, the growth in income inequality within local areas was less than the overall growth in inequality. Corresponding to this, the gap between the average incomes in each region also increased. 
This is indicated in the graph below, which shows a measure of between-region inequality – the extent to which the average incomes in each area differ. Using the “GE(1)” measure of inequality, this more than doubled between 1991 and 2001. It then increased slightly up to 2006 and fell back slightly after the GFC.
<a href="https://www.propertyobserver.com.au/images/2017/04/11/image-20170306-926-134dws8.png" target="_blank">Click to enlarge</a>
<h4><img src="https://www.urban.com.au/images/2017/04/11/image-20170306-926-134dws8.png" alt=""></h4>
<div class="enlarge_hint">
Figure 2: Between-SLA inequality. Author's calculations from ABS Census data
</div>
The overall combination of these trends is that the share of city-level inequality associated with location has grown over the period. For the GE(1) measure, this share increased from about 15% to 18%. That is, spatial segregation between rich and poor has increased over time.
<h2>Are we segregating ourselves?</h2>
One simpler way of describing the spatial concentration of incomes is to consider the situation of the top 10% of Sydney men – those with annual pre-tax incomes of $141,000 or more in 2011. 
What fraction of these rich men lived in the low-income areas of Sydney? If we define low-income areas as the SLAs with the lowest average incomes and containing 20% of the male working-age population, then we find that only 5% of rich men lived in these areas in 2011. 
So while it is true that some rich men live in the areas that have low average incomes (and maybe they might meet poor men), they are four times less likely to do so than the average man (5% vs 20%). And this segregation has increased over time. Back in 1991, 6.2% (rather than 5%) of rich men lived in these poor regions.
The other cities are also segregated, though not quite as much as Sydney. Looking at the top 10% of earners in each city in 2011, the percentage of these who were in poor local areas was 5.6% in Melbourne and Brisbane, 5.9% in Adelaide, and around 9% in Canberra and Perth.
<h2>Dark shades of inequality</h2>
This data also allows us to consider which areas are more segregated or mixed. This is mapped below for Sydney and Melbourne.
<a href="https://www.propertyobserver.com.au/images/2017/04/11/image-20170306-898-vhl1on.png" target="_blank">Click to enlarge</a>
<h4><img src="https://www.urban.com.au/images/2017/04/11/image-20170306-898-vhl1on.png" alt=""></h4>
<div class="enlarge_hint"> Figure 3a: Within-SLA inequality in Sydney. Author's calculations from ABS Census data
</div>
<div class="enlarge_hint"> </div>
<div class="enlarge_hint"><a href="https://www.propertyobserver.com.au/images/2017/04/11/image-20170306-914-1kme7i3.png" target="_blank">Click to enlarge</a></div>
<div class="enlarge_hint"> </div>
<div class="enlarge_hint"><img src="https://www.urban.com.au/images/2017/04/11/image-20170306-914-1kme7i3.png" alt=""></div>
<h4>
Figure 3b: Within-SLA inequality in Melbourne. Author's calculations from ABS Census data
</h4>
The darker shades indicate local areas with more within-area inequality – though for small regions such as this, it is more appropriate to use a word with more positive connotations such as “heterogenous” or just “mixed”. The more mixed areas are generally those with higher average incomes (plus some areas with high ethnic heterogeneity). 
This is driven by the fact that most regions include at least some men with low incomes, but high-income men are unlikely to live in the more homogeneous outer suburbs.
The concentration of high-paying employment and the poor transport linkages of Australia’s major cities undoubtedly play a large part in driving this.
Bruce Bradbury is associate professor, Social Policy Research Centre, UNSW and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/bruce-bradbury-6437" target="_blank">here</a>.
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What did the rich man say to the poor man? Why spatial inequality in Australia is no joke

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GUEST OBSERVER
Job growth has been on the surge for a while now. And much of that surge makes sense:
Although China is squeezing Australia's income, it has had much less of an impact on our production growth, and it's the latter which drives jobs.
Even better, within the overall economy, the sectoral make up has seen greater strength in service sectors, which by and large are the key job generating industries in the nation.
Finally, a combination of weak wage growth and good productivity gains has made workers a more competitive option for businesses as they decide between more workers and more machines.
That backdrop is one which is increasingly favourable for the nation’s CBD office markets. The strength in the national job numbers had held true for white collar employment as well, but it had been failing to fully translate into bums on seats in CBD offices. Yet latest data have shown that gap narrowing pretty fast. However, this is very much a Sydney story. The picture remains mixed outside the Premier State, with Melbourne doing fine but Brisbane and Adelaide both labouring, and Perth continuing on its downward spiral. In fact, outside of NSW itself, the most notable good news story is that a pause in public sector cutbacks has seen Canberra’s market steady of late, though even there the overall job numbers are continuing to fall.
The big office markets of Sydney – Sydney CBD and North Sydney – are at sixes and sevens. Or to be more specific, overall jobs in those markets have grown at rates in the range of 6-7% in the last 12 months. In case you are wondering, the last time that the CBD was at that speed was ahead of the Sydney Olympics. Cathy Freeman hadn’t done a victory lap when the pace of growth in CBD office demand was last this strong.
While Sydney’s performance ranks alongside Ben Johnson’s at the Seoul Olympics in 1988 – and for potentially some of the same artificial reasons – Melbourne’s job gains have been strengthening, but remain more believable than those north of the Murray. To be clear, it’s not that white collar job gains in Melbourne’s CBD are accelerating by that much, but they are now clearly ahead of this market’s longer term trend rate of growth (which, by the way, is the strongest of any bar that of Canberra).
Brisbane – in contrast – remains very much more subdued. Or, at least, that’s true of the CBD, with the Near City market much healthier. To be clear, this isn’t an office market that is going backwards. 2014-15 marked a return to growth in Brisbane’s CBD office demand, and 2015-16 seems to have cemented that return to growth. Yet most rebounds show an initial turn of speed, and that simply isn’t the case in Brisbane.
A fast fading resources boom has torn strips out of the performance of the Perth market. That pain will eventually end, but – despite some green shoots – there’s not going to be much joy generated any time soon. It’s on the back foot already, China is still slowing, miners remain under a lot of financial pressure, and big construction projects are essentially in a run off phase, with very few new projects to follow in their wake.
Unlike much of the rest of Australia, Adelaide isn’t benefiting from measured strength in the finance sector.
Moreover, with 2016-17 shaping up as one of weakness in business services, it may be a few years before this particular market finally gets back in gear.
Canberra’s time in purgatory seems set to end. 2016 is, after all, an election year, and such years often trigger promises that usher in a greater need to for public service. These forecasts point to a return to happier times for the capital’s office demand.
James Allnutt is a Deloitte Access Economics director specialising in <a href="https://www.deloitteaccesseconomics.com.au" target="_blank">demographic, forecasts of state economies, and property demand</a>. 
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Job growth surge spills into CBD markets: Deloitte Access Economics

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Tourism in Australia is forecast to grow over next three years as cheaper oil and a weaker Australian dollar ensures a healthy stream of visitors to the country, according to Deloitte Access Economics' latest outlook for the sector.
The latest Tourism and Hotel Market Outlook has seen Deloitte Access Economics again raise its forecasts for international visitation, with trips to grow by 5.4% and visitor nights by 5.3% per annum over the next three years.
Macro conditions remain favourable for international travel generally, and for Australian tourism specifically -- oil prices fell 40% and the Australian dollar dropped 11% for the 2015 calendar year.
Last year saw China join the million visitors a year club.
"The fact this occurred a year earlier than expected reinforces the extraordinary pace at which the number of visitors from China is growing. Average visitation growth in 2015 was faster over the preceding five years. At this rate, Australia’s first ever two million visitors a year market may be closer than we thought," Lachlan Smirl, Deloitte Access Economics partner, said.
“The forecast for China alone is for another 285,000 visitors per year by 2018 – equivalent to an extra 10 return A380 services every week. When each of those people spends an average $7,300 in our domestic economy, it really adds up. At current prices, we would need to ship 160 tonnes of iron ore to China to get the same trade gain as an extra Chinese tourist choosing to holiday in Australia. It’s a simplistic comparison, but you can see where the opportunity lies.”
Australia’s appeal as a tourism destination is not limited to China. Three-quarters of Australian source markets grew above their five-year trend, and one-fourth of markets grew at twice that pace.
The US was the main rebounder with 50,000 more visitors, or 9% in 2015.
“The US is starting to look more like an economy with business–as–usual levels of economic growth, which is good for household incomes and outbound travel, as well as growth for US trading partners,” said Smirl.
Around 8% of Australia’s workforce, or about 1 million people, are directly or indirectly engaged in the tourism sector. So the positive effects of growth in tourism will be widespread.
Meanwhile, Australians are increasingly keen on travel in all forms: domestic trips, international trips, even day trips are all well above trend growth. With expenditure in each of these categories up 6-7%, Australians are spending a larger share of their incomes on travel. Almost half of this extra spending was associated with leisure travel, the report said.
The impact of a lower Australian dollar hasn’t been as clear-cut as some would expect, explained Smirl: “We haven’t seen a sharp substitution from international to domestic holiday travel. Australians are seeking out cheaper destinations, holidaying for shorter periods, or in part absorbing the higher prices. The picture is more nuanced, but a return to Australian’s love interest with local holiday favourites is evidently upon us.
However, travel to Western Australian mining centres is the exception, falling sharply. The local FIFO index is down 27% from its peak in January 2013 and at the current rate, will be back to pre-boom levels in two to three years.
"The challenge for Perth, and Western Australia in general, is to facilitate leisure tourism. Major projects underway, including Elizabeth Quay and Perth Stadium, will help to enhance the visitor experience over time,” said Smirl.
Other key highlights from H2 2015 included: 
- Though not a major contributor of volume, business travel from a number of South East Asian markets, including Hong Kong, Indonesia, Malaysia and Singapore, was down 25%
- Tasmania topped the growth league table, with international visitor numbers growing 19%, boosted by a 40% increase from China
- Victoria saw the second fastest growth in international visitor arrivals – 11% evenly split between corporate and leisure travel
- Visitation to the Northern Territory slid backwards for holiday travel, and was flat overall for 2015. Flight reductions were a contributory factor, although low seat utilisation was also at play 
- In South Australia, Cricket World Cup visitation in the first half of the year offset reductions in international services from Air Asia X, leaving international visitation up only 0.5% 
- Gold Coast Airport overtook Adelaide as Australia’s 5th fifth busiest international airport, and has the potential to become a mini-transit hub for international passengers travelling with Air Asia X 
- Tropical North Queensland also benefitted from peaks in the school holiday travel. Melbourne families are rediscovering the region with passenger volumes between Tullamarine and Cairns up 16% last year.
The outlook
Despite increasing levels of global economic uncertainty, tourism is poised to growth because of macro drivers, according to Smirl.
International visitor numbers are forecast to grow above five-year trend pace, increasing at an annual rate of 5.4% per year to December 2018. Asia will be responsible for 60% of this growth, with China alone responsible for 26%. The outlook suggests mixed fortunes for Australia’s legacy markets – New Zealand will contribute 10% of the additional nights, while mainland Europe will provide just 4%.
“With domestic travel conditions improving, our forecasts for domestic travel have been upwardly revised. Overnight visitor numbers are now forecast to grow 3.3% per year to December 2018. This is acknowledging Australians are keen to spend more of their budget on travel in all forms,” Smirl said.
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