Builder-developer ALAND has drawn back the curtain on its first city-focused new apartment development.

The North Sydney development, <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-173-179-walker-street-north-sydney-nsw-2060">The Walden</a>, is the first time the company has ventured this close to the city, having previously completed thousands of apartments predominantly in Sydney's west, and more recently in Gosford.

<a href="https://www.apartments.com.au/developers/aland">ALAND</a> acquired the prime North Sydney site, spanning Walker and Hampden Streets just down the road from the Victoria Cross Metro station, for $240 million in June.

Now they've unveiled the new project, a mix of one-, two-, three- and four-bedroom apartments across a 30-level building designed by Rothelowman.

[smartcode_project:default project_id=134323 project_image_fid=6384]

The Walden will capitalise on the site’s front-row position on the eastern fringe of the <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> CBD, which offers uninterrupted Sydney Harbour views stretching from the Sydney Harbour Bridge all the way to Sydney Heads.

The main tower will be flanked by a small four-level amenity building known as The Pavilion, offering exclusive resident-only amenities including a dedicated concierge service, a sauna and private wellness studio, a gymnasium and fitness studio, a resort-style rooftop pool and sundeck.

There will also be a&nbsp;residents’ lounge, private dining and a wine cellar, and co-working facilities with an on-site meeting room and boardroom.

&nbsp;

&nbsp;

[smartcode_project:default project_id=134323 project_image_fid=6382]

ALAND Founder Andrew Hrsto said the company knew they could create something "iconic" with The Walden when they saw the site.

&nbsp;

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic – being the last development with a view offering this exceptional.

“We identified the attributes and quality of the site as being perfectly aligned for ALAND – and we feel that this off-market acquisition is a perfect opportunity to showcase our craftmanship and expertise through a truly unique offering."

[smartcode_project:default project_id=134323 project_image_fid=6399]

Hrsto pointed to ALAND’s longstanding development expertise as a significant benefit in delivering a positive outcome for The Walden.

“Being a fully integrated development and construction business with a highly experienced team, we have the benefit of in-house experts across the development spectrum, from acquisitions, design, planning, and construction, to sales, marketing, property management, through to building management.

“As one of Australia’s largest private development and construction groups, we’ve been in operation for 23 years, with a Gold Star iCIRT rating and a 100 per cent delivery success rate across numerous masterplanned and mixed-use projects – and we’re very much looking forward to bringing this expertise to The Walden and contributing to the ongoing revitalisation of North Sydney."

The Walden is the latest development in Sydney to have the 10-year Latent Defects Insurance policy by Resilience Insurance, protecting buyers from any structural or waterproofing-related issues for 10 years post-completion.&nbsp;

Demolition of existing structures on The Walden site has already commenced through specialist civil contractor Moits, with the aim of completing preparatory ground works by the end of 2025, ahead of construction commencement in early 2026.

[smartcode_project_cta:default project_id=134323]

Joel Robinson

ALAND unveils The Walden, North Sydney's latest luxury apartment development

<a href="https://www.apartments.com.au/developers/toga-group">TOGA</a> has opened sales for the final building in Macquarie Rise, its latest mixed-use development in Macquarie Park.

Since launching its <a href="https://www.apartments.com.au/new-apartments/macquarie-rise-122-herring-road-macquarie-park-nsw-2113">Macquarie Rise</a> in late 2023, TOGA has secured over 125 sales in the Herring Road development, to a range of purchasers, from first home buyers to investors and downsizers. Around 65 per cent of purchasers have been owner-occupiers.

TOGA has now launched a new release of one-, two-, and three-bedroom apartments in the final building, Saunders Rise. Many of the apartments feature multi-purpose rooms and offer views of the surrounding greenery. Also part of the release is a series of&nbsp;sub penthouses housed on the upper floors.

[smartcode_project:default project_id=89243 project_image_fid=242696]

&nbsp;

“We’re delighted with the ongoing strong interest in our Macquarie Rise development, which is testament to the need for premium housing in this much-loved Sydney suburb,"&nbsp;Allan Vidor AM, Managing Director at TOGA, said.

"We’re proud to be able to offer buyers a unique product that includes luxury amenities, spacious living areas and flexible layouts, designed to suit all kinds of buyers, from young professionals to families and investors.

“We have long been advocates of Macquarie Park, and once Macquarie Rise is complete, TOGA will have built 1,000 apartments in the area, delivering much needed homes within a thriving precinct. It’s great to see the area become renowned for high-quality apartments, proximity to amenities and green spaces."

TOGA, one of Australia’s few Gold Star iCIRT rated developers, is also handling construction of Macquarie Rise. They are on track to complete the building in 2027.

[smartcode_project:default project_id=89243 project_image_fid=310789]

Macquarie Rise boasts a prime location, placing residents within immediate reach of Macquarie Centre, Macquarie University, and the newly completed Macquarie University Metro, connecting to the Sydney CBD is just over 20 minutes.

&nbsp;

Macquarie Rise residents also have access to Club Rise, an exclusive, residents only lounge designed by luxury hotel designers Stack Studio, offering an abundance of work and break-out areas, a Pilates studio, a gym, and a karaoke room. As well as these premium amenities Macquarie Rise will also feature an impressive podium top 20m lap pool.

[smartcode_project:default project_id=89243 project_image_fid=242695]

“Offering luxury, spacious apartments in a vibrant and well-connected neighbourhood, it’s no surprise that Macquarie Rise remains popular with a range of buyers," said TOGA's General Manager of Sales, Anthony Falas.&nbsp;

"With interest rates tracking downwards, we expect the final apartments to continue to receive high levels of interest.”

Located at 122 Herring Road, Macquarie Park, the development will be delivered in partnership with Baptist Union NSW and Morling College with a value of over $400 million.

&nbsp;

[smartcode_project_cta:default project_id=89243]

TOGA launches final stage apartments in Macquarie Rise

Southern Cross Station anchors the western end of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a>’s CBD, connecting metropolitan and regional rail with tram and bus interchanges in one of the city’s busiest transport corridors.&nbsp;

Just metres away, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a>&nbsp;will place residents in the heart of the city, with immediate access to Spencer Street trams, a growing mix of retail, hospitality and cultural venues, and a neighbourhood evolving into a lively residential precinct.

Developed by <a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a>, the 68-level project integrates a sculptural glass tower with the heritage-listed Eliza Tinsley Building on a 2,765 sqm Bourke St site.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335425]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the development replaces a previously approved scheme for 813 apartments with a refined offering of just over 600 larger-format residences, responding to a growing owner-occupier demand for spacious city living.

The location sits within a dynamic pocket undergoing significant transformation. Marvel Stadium and the Docklands waterfront are less than 10 minutes away on foot, offering both sports and leisure attractions.&nbsp;

Bourke Street Mall, Queen Victoria Market, and the State Library are all within walking distance, while Flagstaff Gardens, Melbourne’s oldest park, provides a green escape just to the north.

&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335422]

Proximity to some of the city’s largest employers and education hubs, including the courts precinct, legal chambers, RMIT, and major hospitals, makes 640 Bourke Street an appealing residential address for professionals, families and students alike.

Education opportunities span all levels. Nearby, Haileybury City Campus offers private schooling just a short walk from 640 Bourke Street. Just beyond the CBD fringe, Carlton Gardens Primary School, one of Melbourne’s oldest state primary schools, and Docklands Primary School provide convenient government schooling options.

Higher education is equally accessible. RMIT University’s city campus spans multiple buildings just a few blocks away, while the University of Melbourne’s Parkville campus is easily reached via tram along Swanston or Elizabeth Streets.

Victoria University’s City Queen campus, focused on law and business, is also close by, positioning 640 Bourke Street within walking distance of three of Melbourne’s major tertiary institutions.

[smartcode_project:default project_id=509 project_image_fid=335426]

The neighbourhood’s retail tapestry continues to evolve into something distinctly local and walkable. Just steps away, Woolworths Metro on Bourke Street ensures that everyday essentials are easily within reach.&nbsp;

For larger shopping trips, Spencer Outlet Centre on Spencer Street and QV Melbourne on the opposite side of the CBD broaden the offering with supermarkets, fashion, dining and specialty stores.

The lane-to-lane vibe unfolds beautifully in nearby arcades and alleys. Hardware Lane, with its European-style red-brick paving and alfresco dining, pulses with jazzy evenings and casual lunches.

A few minutes north, Howey Place and Centre Place offer leafy, boutique-lined lanes where hidden cafés and niche retailers congregate under historic glass-covered cloisters.

Completing this tapestry is the newly opened Mecca “beauty playground” on Bourke Street. Spanning 4,000 sqm over three levels, the flagship blends immersive retail within an art-deco heritage setting.

&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335427]

This finely grained network of shops, eateries, arcades and service outlets defines the everyday lifestyle at 640 Bourke Street - further enriched by over 3,000 sqm of resident amenity including a Turkish-inspired pool, gym, co-working rooms and private cinemas.&nbsp;

Apartments are priced between&nbsp;$640,000 and $3.95 million. Off the plan stamp duty concessions available until October 2026. Prospective buyers can visit the on site display gallery which has&nbsp;fully built one, two, and three-bedroom apartments.

[smartcode_project_cta:default project_id=509]

640 Bourke Street: A heritage address at the heart of Melbourne

Lower North Shore development specialists&nbsp;<a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a>&nbsp;has topped out its new local apartment development,&nbsp;<a href="https://www.apartments.com.au/new-apartments/northcote-collective-naremburn-2-6-northcote-street-naremburn-nsw-2065">Northcote Collective</a>.&nbsp;

Located in the tightly held suburb of <a href="https://www.apartments.com.au/developments/naremburn-nsw-2065">Naremburn</a>, Northcote Collective is a collection of just 58 one-, two-, and three-bedroom apartments designed by award-winning architects Rothelowman.&nbsp;

The building is just a five to 10 minute walk from the heart of Crows Nest and the new&nbsp;St Leonards and Crows Nest Metro stations. Abadeen has also brought doorstep convenience, with a ground-floor retail offering on Northcote Street.

Northcote Collective is being delivered by&nbsp;<a href="https://www.apartments.com.au/builders/decode">Decode</a> — an iCIRT-rated construction company well regarded in the new development industry.

[smartcode_project:default project_id=114189 project_image_fid=272840]

“This is an important and exciting moment for Northcote Collective, and we’re proud to celebrate this milestone with our partners, consultants, and future residents,” said Justin Brown, Executive Chairman and Founder of Abadeen.&nbsp;

“From the outset, our vision was to create something truly special for Naremburn — homes that respect the character of the neighbourhood while elevating the standard of Lower North Shore living. With connectivity to transport, retail on the doorstep and a true village lifestyle, this milestone also comes at a perfect time when buyer confidence is returning to the market. I am incredibly proud of our team and of Decode for their dedication in helping us bring this vision to life.”

[smartcode_project:default project_id=114189 project_image_fid=272865]

The development is two-tiered, with two rooftops for residents. The taller building has an impressive rooftop pool, a rare inclusion in the new Sydney apartment market. The level, with panoramic views, also includes an entertaining terrace with barbecue facilities.

Local downsizers and young professionals are showing the strongest interest in the development, with recent improvements in the property market — supported by three rate cuts in 2025 — boosting borrowing power and buyer confidence.

Auction activity across Sydney surged by almost 30 per cent in recent weeks, with clearance rates above 70 per cent — signalling a renewed wave of buyer demand.

Northcote Collective will welcome buyers in 2026.

[smartcode_project_cta:default project_id=114189]

Abadeen tops out Northcote Collective in Naremburn

Sunshine Coast-based <a href="https://www.apartments.com.au/developers/devcon-property-group">Devcon Property Group</a> has acquired one of Maroochydore’s most prominent development sites for $12 million unlocking the potentialfor a mixed-use project in the Cotton Tree precinct.

&nbsp;

The 4,178 sqm site at 41–43 Aerodrome Road—well known locally as the former home to one of Australia’s last Sizzler restaurants—was sold via an off-market expressions of interest campaign by Colliers agents Nick Dowling and Baydn Dodds. More than 70 targeted buyer groups were approached, resulting in multiple competitive offers for the property.

Devcon Property Group Managing Director Michael Kain said the acquisition was a strategic move in line with the company’s focus on delivering high-quality projects in prime coastal locations.&nbsp;

“We’re excited about the possibilities this site, in one of the Sunshine Coast’s most iconic beachside &nbsp;communities, offers for a broad range of development outcomes,” Kain said.

“Its location, ocean view potential, and proximity to the Maroochydore CBD and beach make it an &nbsp;outstanding development prospect. Our plans are to refurbish the existing building and then review &nbsp;development options for the remainder of the site.”&nbsp;

<img alt="Aerodrome Rd site overlooking Beach (Large)" data-entity-type="file" data-entity-uuid="a29dc4ed-68c1-4bec-a4fc-283063dcde1e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Aerodrome%20Rd%20site%20overlooking%20Beach%20%28Large%29.jpg?VersionId=b0WxJWevmLoAfCP4YvGImZpR3rSCJJ9L" />

Colliers Special Projects Manager Baydn Dodds said the sale reflected the ongoing strength of the &nbsp;Sunshine Coast’s development site market, particularly for projects capable of achieving water views. &nbsp;

“Sites of this scale, in walkable beachside locations with ocean views, are tightly held and continue to attract significant interest from both local and national developers,” Baydn Dodds said. &nbsp;

“Holding a prominent position as the former home to one of Australia’s last Sizzler restaurants and more recently occupied by Rashays, the prime site is located just 150 metres from Maroochydore Beach.&nbsp;

“With stunning ocean view potential, located in one of the Sunshine Coast’s best known iconic &nbsp;beachside communities, within steps of shops, cafes and the beach it is no surprise that there was strong interest in the site. The transaction highlights the ongoing depth of demand for well-located &nbsp;mixed-use sites across the Sunshine Coast.”&nbsp;

Colliers Sunshine Coast Managing Director Nick Dowling said the transaction reinforced the &nbsp;Sunshine Coast’s status as one of Australia’s most active development markets.&nbsp;

“The combination of strong population growth, lifestyle appeal, and infrastructure investment is &nbsp;driving demand for quality development opportunities,” Nick Dowling said. &nbsp;

“The Sunshine Coast is one of only three markets nationally to record an increase in crane numbers, &nbsp;reflecting the strength of the region’s construction pipeline.&nbsp;

“Opportunities like this are rare and continue to generate strong buyer interest in the region.”&nbsp;

The Sunshine Coast development market is booming, with several high-profile developers like Cube Developments, Gardner Vaughan Group, and RCQ, planning developments in the region.

Devcon buys Sunshine Coast’s former Sizzler site for new apartment development

Job Growth

<html><body>
Western Sydney is set for a further construction boom, with two more projects getting the green light today through the NSW Government’s Planning System Acceleration Program. 
Planning approval has been given to a new recycling facility in Penrith and a major upgrade to a brick production facility in Horsley Park that, combined, will inject an additional $27.8 million into the economy and support more than 130 local jobs. 
Premier Gladys Berejiklian said Western Sydney has been a big winner in the first tranche of projects that have had their assessments fast-tracked to create jobs and investment in response to COVID-19.  
“Western Sydney is undergoing significant growth, which is why we’ve fast-tracked the assessment of projects in the region over the past three weeks to create opportunities for more than 16,000 local jobs and $1.8 billion in investment,” Ms Berejiklian said.
“The housing and construction industries will be vital to supporting our State’s economy through the pandemic and so we’re doing what we can to keep the industry moving.” 
The latest projects approved in Western Sydney include:
<ul>
<li>A $26 million upgrade to the 1960’s Austral Bricks facility at Horsley Park. The state-of-the-art facility will be one of the most technologically advanced of its kind in the world and produce enough bricks to build five homes every hour. The facility’s upgrade will support 60 construction jobs and 35 ongoing operational roles.</li>
<li>A new $1.8 million recycling and transfer facility in Penrith, operated by NSW Waste Recycling, that will support a significant increase to waste recycling in Western Sydney. The project will support 25 construction jobs and 12 operational roles once complete.</li>
</ul>
Planning and Public Spaces Minister Rob Stokes said the Planning System Acceleration Program was a vital lever in the State’s economic recovery. 
“We have re-prioritised projects in the State’s planning system so projects are assessed more quickly to keep people in jobs and the NSW economy moving during the COVID-19 pandemic,” Mr Stokes said. 
“We’ll have another tranche of shovel-ready projects ready to announce shortly, which will also have their assessments finalised within four weeks.” 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="340">
Project
</td>
<td valign="top" width="146">
Investment value
</td>
<td valign="top" width="79">
Jobs
</td>
</tr>
<tr>
<td valign="top" width="340">
Austral Bricks facility upgrade
</td>
<td valign="top" width="146">
$26 million
</td>
<td valign="top" width="79">
95
</td>
</tr>
<tr>
<td valign="top" width="340">
Penrith Resource Recovery Facility
</td>
<td valign="top" width="146">
$1.8 million
</td>
<td valign="top" width="79">
37
</td>
</tr>
<tr>
<td valign="top" width="340">
Bunnings Warehouse at Bringelly Business Park
</td>
<td valign="top" width="146">
$22 million
</td>
<td valign="top" width="79">
400
</td>
</tr>
<tr>
<td valign="top" width="340">
Mt Druitt CBD rezoning
</td>
<td valign="top" width="146">
$1.49 billion
</td>
<td valign="top" width="79">
15,000
</td>
</tr>
<tr>
<td valign="top" width="340">
Rezoning land at Glenlee to create a 60 hectare jobs hub
</td>
<td valign="top" width="146">
$94.2 million
</td>
<td valign="top" width="79">
188
</td>
</tr>
<tr>
<td valign="top" width="340">
Rezoning the Bankstown CBD to allow more retail, residential and public space
</td>
<td valign="top" width="146">
$166 million
</td>
<td valign="top" width="79">
332
</td>
</tr>
<tr>
<td valign="top" width="340">
TOTAL
</td>
<td valign="top" width="146">
$1.81 billion
</td>
<td valign="top" width="79">
16,052
</td>
</tr>
</tbody></table>
To be considered for accelerated assessment, a project must already be progressed in the planning system, deliver a public benefit, demonstrate an ability to create jobs during construction and once complete, and be able to commence construction or lodge a development application within six months. 
Western Sydney projects approved in Tranche 1 of the Planning System Acceleration Program include:
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j.ballantyne1990-6AQqhLzZaK

Construction boom fast-tracked for Western Sydney 

<html><body>
Today we have run with three charts - Australian dwelling completions, commencements and approvals. The point of this is to illustrate that the current rate cuts are not going to be a job creator for the Australian housing construction industry anytime soon. Naturally it may help other parts of the economy. But not housing construction. To be clear the process of building a property starts at the approval stage. Once approved, building construction commencements normally occur between 6 to 18 months after approvals. And then finally, completions normally occur 18 months to 3 years after approvals.
 
<img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/d0a5d23c-7109-4a61-9e45-e2a75ad4aee2.png">
<img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/c2e4fa2e-a581-4020-941d-0f5835b9a3e2.png">
<img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/69a3110b-3f74-4a58-843a-93ff0600815e.png">
Dwelling completions are only peaking now and so there are a whole bunch of projects that are on the verge of completion. Normally once a project is completed, workers move onto the next project. But as we can see on the commencements chart, there are now less commencements than completions. And so there is less work available, meaning more job losses are coming. To make matters worse, building approvals are still tracking south and are considerably lower than commencements. This means even more housing construction job losses are on the way over the course of 2020 and likely, 2021. This will happen despite the interest rate cuts, tax cuts and easier lending standards. As the building approvals illustrate, there has been no response as yet in the form of higher demand for new housing. The real jobs creation phase, where there are labourers and contractors on the ground, naturally happens at the commencements phase and gets slowly wound down as the building gets closer to completion. So with the fall off in building approvals, housing construction is going to be a detraction to GDP for many months to come. This must be quite the concern for the RBA and for the Federal Government for that matter. As you may have guessed, housing construction is not an insignificant proportion of total employment. The RBA places it at just under 6%. The last time this occurred was back in 2011 to 2013. However the country still had the mining boom as a major job creator at that time. For now, mining investment seems to have bottomed out and will moderately pick up over the next 12 to 24 months, therefore taking some of the slack. But no one is expecting a massive uplift in mining. There is of course infrastructure and that may help to an extent. Apparently for FY20 some $13 billion dollars has been estimated to be spent on Infrastructure which should at least keep climbing through to 2023. By comparison, there was some $42 billion dollars’ worth of dwellings approved over the 12 months to September 2019. Infrastructure better help with the offset. And perhaps with mining added, it will. The RBA is forecasting the unemployment rate to fall to 5% by 2021. But no-one really knows for sure. Let’s hope they are right. Otherwise Australian unemployment is going to keep rising in 2020 and that won’t be good for anyone.
LOUIS CHRISTOPHER is the CEO of SQM Research.
</body></html>

louischristopher-TWpYcZDLBK

Current rate cuts aren't going to be a job creator for housing construction: SQM's Louis Christopher

<html><body>
EXPERT OBSERVATION
The Aerotropolis Investor Summit is a positive move to encourage private sector investment into future jobs for Western Sydney.
The focus on the 10,000 hectare economic zone around Western Sydney Airport as the location for a massive growth in Western Sydney jobs is a good example of the outcomes of the City Deal between the three levels of government.
And the establishment of the Western Sydney Development Authority under Chief Coordinator Geoff Roberts will lead to faster decision making in turning plans into reality.
The range of jobs proposed is impressive covering aerospace, defence, manufacturing, healthcare, freight, logistics, agribusiness and education.
Clearly these jobs will be closer to the people of Western Sydney and help redress the jobs exodus from the West to the East in Sydney.
The proposed North South Rail Link will help Western Sydney residents have easy access to the jobs hub.
The potential expansion of the West Metro from Parramatta announced by the Premier, Gladys Berejiklian, at the Summit would link all three cities across metropolitan Sydney.
While the Investor Summit has focussed on the issue of jobs there also needs to be more discussion about the residential components of the third city, the Parkland City.
With the Western Sydney Airport having no curfew clearly housing will be located kilometres away from the airport and the economic zone.
Most commentators on cities prefer a mixed use approach to planning where jobs and residential co-locate to ensure a lively public domain.
Future planning will need to address this issue so that the Parkland City can be as successful as the Harbour City and the River City.
CHRIS JOHNSON is chief executive officer of property development industry group Urban Taskforce and can be <a href="https://www.urbantaskforce.com.au/?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">contacted here</a>.
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cjohnson-8xfqfuuCSq

Aerotropolis private investment critical for Western Sydney jobs: Chris Johnson

<html><body>
Expert observer
Melbourne has a serious problem. Most of its job growth is in the CBD, yet most of its <a href="http://www.abs.gov.au/ausstats/abs@.nsf/Previousproducts/3218.0Main%20Features252014-15?opendocument&amp;tabname=Summary&amp;prodno=3218.0&amp;issue=2014-15&amp;num=&amp;view=" target="_blank">population growth is at the far extremes</a> of the city. It’s the same in other big Australian cities, like <a href="https://theconversation.com/if-the-people-cant-get-to-their-jobs-bring-the-jobs-to-the-people-57567">Sydney</a>.
Getting people to work is becoming harder. Many people take more than an hour to commute each way. They could better spend this time with their families, or at work; commuting time is wasted time.
There are three ways we might tackle this:
<ul>
<li>change the planning rules to let more people live near the centre</li>
<li>improve the freeways and railways so that people can commute more quickly</li>
<li>promote job growth away from the CBD.</li>
</ul>
We almost certainly need to do all three.
The Victorian Planning Authority (<a href="https://vpa.vic.gov.au/" target="_blank">VPA</a>) has <a href="https://vpa.vic.gov.au/urban-renewal/national-employment-clusters/" target="_blank">identified</a> three places in the west of the city – Footscray, Sunshine and Werribee – where jobs should be developed. The Victorian government is on the cusp of making major decisions that could convert these potential employment hubs into actuality. There are three big development proposals before the government that could make a difference. It would be a pity if it missed these opportunities.
<h2>Change of tack is needed</h2>
At the moment the Victorian government’s main strategy is to improve the infrastructure. This is a very expensive solution.
In parallel, the Planning Authority has been working to improve population density by allowing more high-rise housing, particularly around main railway stations and tramlines. However, resistance from local residents has made it hard to increase density in the middle suburbs.
We have seen very little effort so far in Melbourne to create job opportunities within the city but away from the CBD. The planners have identified several potential employment hubs but have not figured out how to create jobs there. This has been a failure of state governments over recent decades.
The problem is most acute in the west of the city. On <a href="http://www.communityprofile.com.au/melbourneswest" target="_blank">current growth trends</a>, by 2030 there will be a shortage of 100,000 jobs in the west; that many extra people will have to commute out every day.
<h2>What’s on the drawing board?</h2>
At Footscray, the key decision is where to locate the <a href="http://www.westernhealth.org.au/AboutUs/News/Pages/A-new-beginning-for-Footscray-Hospital.aspx" target="_blank">new hospital</a>. The best opportunity for future employment would be to <a href="http://www.westernhealth.org.au/AboutUs/News/Documents/Media%20release%20-%20Footscray%20Hospital%20rebuild_7Dec17.pdf" target="_blank">put it next to Victoria University</a> to exploit co-investment and synergies between the two. This would accelerate Footscray’s emergence as a professional services hub.
The payoffs in terms of jobs will be much greater than if the hospital is built well away from the centre of Footscray, which is the other main option. The decision is a test of whether the government really intends to create a polycentric city or not.
At Werribee, the decision is whether to go ahead with the proposed <a href="http://www.heraldsun.com.au/news/victoria/future-melbourne/tech-giants-push-for-piece-of-30bn-super-city-in-east-werribee/news-story/51e77278242514b23567bf6b9e00050c" target="_blank">Australian Education City</a>. This is an ambitious proposal to develop a completely new technology city, mixing technology companies, universities, research laboratories and suitable housing. There would be significant public infrastructure needs to complement the private investment.
The big advantage for Melbourne would be that it gains a major new technology precinct. It is an important proposal for the west because the region has very few jobs in IT, computing and e-commerce.
The third big opportunity lies in the rail connection between Sunshine and the airport at Tullamarine. With Sunshine the hub for regional rail and well connected to the CBD, the proposed <a href="https://www.theage.com.au/national/victoria/sunshine-route-to-melbourne-airport-backed-by-rail-group-20171123-gzrqgl" target="_blank">airport link</a> adds a major new facility that Melbourne lacks. It would also transform Sunshine, making it an important focal point for hotels and other airport-oriented businesses.
While the state Labor government has proposed this alternative, the <a href="https://www.theage.com.au/national/victoria/melbourne-airport-rail-to-be-under-way-within-10-years-premier-says-20171122-gzqywe" target="_blank">post-2025 start date</a> makes it less valuable as a city-shaping investment.
To maintain the quality of life of its residents, Melbourne badly needs to create new poles of employment. The west of the city has <a href="http://www.abs.gov.au/ausstats/abs@.nsf/Previousproducts/3218.0Main%20Features252014-15?opendocument&amp;tabname=Summary&amp;prodno=3218.0&amp;issue=2014-15&amp;num=&amp;view=" target="_blank">some of the fastest population growth</a> in the nation. What is lacks is a commitment from government to growing jobs in the region and away from the CBD.
<img src="https://counter.theconversation.com/content/93067/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">The location of the Footscray hospital, the decision on the Australian Education City, and the timing of the airport rail link are once-in-a-generation choices. Let us hope the government makes decisions that will support dispersed job growth. Failure to do so will make Melbourne a much less attractive place to live in future.
<a href="https://theconversation.com/profiles/rodney-maddock-107543" target="_blank">Rodney Maddock</a>, Vice Chancellor's Fellow at Victoria University and Adjunct Professor of Economics, <a href="http://theconversation.com/institutions/monash-university-1065" target="_blank">Monash University</a>
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/our-growing-big-cities-need-new-centres-of-employment-heres-melbournes-chance-93067" target="_blank">original article</a>.
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New centres of employment are needed in our growing big cities

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Arrears on loans underlying Australian residential mortgage-backed securities (RMBS) transactions declined nationwide during the third quarter, in line with cyclical expectations, according to a recent report by S&amp;P Global Ratings.
Continued employment growth and low interest rates have kept arrears low in most parts of the country, but there are marked differences in the arrears levels of resource and non-resource states as well as metropolitan and nonmetropolitan areas, according to the report RMBS Performance Watch: Australia.
RMBS Performance Watch: Australia looks at mortgage arrears across the country, based on the Australian Bureau of Statistics Australian geographical standard classifications.
The 20 worst-performing regions in the country are predominantly in the metropolitan and nonmetropolitan areas of Western Australia and nonmetropolitan Queensland, reflecting the greater impact of the downturn in mining investment in these locations.
The areas with lower arrears are mostly in inner and outer Sydney.
This reflects the correlation between property prices and arrears performance for more seasoned loans, which benefit from the improved equity build up and enhanced refinancing prospects this affords.
Amortizing loans with high levels of seasoning in metropolitan areas are underpinning the solid arrears performance of loans underlying Australian RMBS transactions.
The performance of these loans and ones originated more recently could diverge if interest rates start to rise, however, testing the prudence of lending standards.
We expect arrears performance to remain relatively stable while employment conditions remain stable and unemployment is relatively low.
However, the currently high level of household debt has increased borrowers' sensitivity to future interest rate rises.
We believe this risk is more heightened for higher loan-to-value ratio loans.
This is because there is less equity built up in the underlying property and such borrowers' refinancing prospects are likely to be less favorable, particularly in an environment of tightening lending conditions.
Standard &amp; Poor's Performance Index (SPIN) measures the weighted-average arrears more than 30 days past due on residential mortgage loans in publicly and privately rated Australian RMBS transactions.
The value of loans underlying Australian RMBS transactions, including noncapital market issuance, was A$128.951 billion.
Click here to download the <a href="https://www.capitaliq.com/ciqdotnet/login-sso.aspx?contextType=external&amp;username=string&amp;enablePersistentLogin=true&amp;OverrideRetryLimit=0&amp;contextValue=%2Foam&amp;password=secure_string&amp;challenge_url=https%3A%2F%2Fwww.capitaliq.com%2Fciqdotnet%2Flogin-sso.aspx&amp;request_id=8585133767695543534&amp;authn_try_count=0&amp;locale=en_AU&amp;resource_url=https%253A%252F%252Fwww.capitaliq.com%252FCIQDotNet%252FLogin.aspx" target="_blank">full report.</a>
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jrobinson-rf4aSBido9

S&P says mortgage arrears stable thanks to positive job growth and low interest rates

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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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jchancellor-FAypfDUnLy

Job growth surge spills into CBD markets: Deloitte Access Economics

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Energy and resources minister Josh Frydenberg said recently that the latest employment figures show extremely strong job growth, the greatest Australia's had since 2006. Is that right?
With shakes in the global stock market and uncertainty abroad, politicians are understandably keen to reassure voters that Australia’s economic fundamentals are strong.
Employment data produced by the Australian Bureau of Statistics (ABS) is one way we can test Australia’s economic waters, and resources and energy minister Josh Frydenberg said recently that the latest employment figures show extremely strong job growth.
Is he right?
Checking the numbers
The ABS' December Labour Force survey release showed that over the course of 2015, total employment was up by 301,300 people (adjusted for regular seasonal fluctuations and rounded to closest 100 people). Of those 301,300 jobs, the majority (187,200) were full time.
In the last three months of 2015, growth compared to same time the previous year has fluctuated between 2.6% and 3%. That’s above the average annual growth in employment since 2000 of around 1.9%. In short, employment growth recently has been strong.
Is it the greatest level of job growth since 2006?
Table 1 of the release shows that this growth is indeed the strongest of any calendar year since 2006.
However, one could also look at changes over the 12 months to any month. Doing that, you could say, for example, that November 2010 with a figure of around 314,300 had a stronger level of job growth than the latest employment figure show. It was also stronger in November of 2015, when it was at about 344,900.
In other words, if you look only at changes for calendar years (between the beginning and the end of any given year), Frydenberg is right to say it’s the greatest level of job growth since 200
<a href="/images/2016/01/25/Screen%20Shot%202016-01-25%20at%209.55.00%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/25/Screen%20Shot%202016-01-25%20at%209.55.00%20AM.png" alt="" width="844" height="620">
That said, comparing the recent data to particular points in the past is less important than what the data tell us about the current trends in the labour market.
<h2>Trends</h2>
While the ABS devotes considerable resources to undertaking the survey, it is worth remembering that published employment growth is an estimate. The survey is only a sample of the population. The ABS reports on page 40 of its release that the standard error of monthly employment growth is 29,300 people, so, while employment growth recently has been strong, considerable uncertainty surrounds the numbers.
More generally, monthly movements in these data are volatile. For example, in December employment actually fell marginally, although this followed two months of strong growth and therefore was still a good outcome.
Due to this volatility in the monthly series, the ABS' trend series may provide a better guide about the extent to which recent growth is likely to persist in the future.
Over the last three months of 2015, growth in trend employment averaged around 30,300 people, compared to 43,000 based on the data adjusted only for regular seasonal fluctuations.
In other words, the data show us that the underlying trends in the job market recently have been pretty good.
Other, unofficial, data point to an improvement in the labour market. The December 2015 ANZ Job Advertisement Index showed growth compared to the same time in 2014 in their trend estimate at 11.4%, compared to around 10% in the middle of 2015.
<h2>The unemployment rate</h2>
The unemployment rate, which is also produced by the ABS in the labour force survey, has improved over the last three months. At <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0">5.8%</a>, it is down from 6.2%, where it had fluctuated around since mid 2014 (see Table 1 of the release). Similarly, the trend unemployment rate has also improved and in December reached 5.8%.
<a href="/images/2016/01/25/Screen%20Shot%202016-01-25%20at%209.59.59%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/25/Screen%20Shot%202016-01-25%20at%209.59.59%20AM.png" alt="" width="742" height="490">
Is 5.8% a good outcome for the unemployment rate? A simple benchmark is that average unemployment in Australia since 2000 is 5.5% – so it’s still currently a little above average.
Another way to judge the level of the unemployment rate is to look at developments in wages. If the unemployment rate was too low, growth in private sector wages would pick up. However, in the September quarter (which predates the recent drop in the unemployment rate) wages growth was soft.
To put Australian unemployment in a global context, the average unemployment rate of the Organisation for Economic Co-operation and Development (OECD) nations was 6.6% in November 2015. However, we need to caveat this comparison. Many countries, such as some in Europe, have unemployment rates that are, on average, higher than Australia’s, reflecting the different structure of their labour markets.
Australia’s unemployment rate has shifted down and that has persisted for three months, which gives greater confidence that it might not be temporary. However, given the volatility of these data and the uncertainty presently surrounding the outlook for the global economy it will be important to see whether these gains are maintained in coming months.
<h2>Verdict</h2>
Josh Frydenberg was right. Employment growth in 2015 was the strongest of any calendar year since 2006, although comparable growth also occurred over the 12 months to November 2010. It is also fair to say Australia has recently experienced strong jobs growth.
Review
This FactCheck is excellent in its comprehensive review and interpretation of the Labour Force Survey data. It is pointed out that labour market statistics, such as the unemployment rate and the number of people employed, are only estimates not the actual numbers in the population.
The statistics are based on the Labour Force Survey, which is a sample of 0.33% of the population about the employment status of everyone in the household aged 15 years and older. Because they are based on a sample of the population, the statistics have errors. In its monthly report the ABS publishes these “sampling errors” and clearly says that the estimate of the monthly change in the employment has a “95% confidence interval”. The media and the government rarely, if ever, report the range of estimates.
It is well known among economists that “you don’t trust one month’s figures” – the trend in labour force statistics is what’s important in understanding what’s going on in the labour market.
This FactCheck does a good job of explaining that the ABS “trend estimates” are much more reliable than the actual raw estimates. Again, the media (and politicians, when it suits them) tend to concentrate on the actual number, particularly whether it has risen or fallen. As the author also pointed out, the start and end date of the change usually makes a difference to the estimate of the change.
As the above states, although the minister’s assertion can be questioned somewhat by adopting a different start and end date, the overall conclusion that jobs growth is reasonably strong is correct. <a href="https://theconversation.com/profiles/tim-robinson-138270" rel="author" style="line-height: 1.3em;"></a>
 
Tim Robinson is research fellow, Melbourne Institute, University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/tim-robinson-138270" target="_blank">here</a>.
Phil Lewis is professor of economics, University of Canberra and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/phil-lewis-8714" target="_blank">here</a>.
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