Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Jobs Growth

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EXPERT OBSERVER
<div>
The Internet Vacancy Index fell by 0.9 per cent in May after decreasing by 0.5 per cent in April. The index is 5.8 per cent higher than a year ago and is still at levels last seen 6 years ago.
Engineering job vacancies rose by 23.7 per cent over the year to May – the strongest performing occupation across Australia. Science Professionals and Veterinarians vacancies are up by 23.5 per cent.
Job advertisements in Western Australia are at 3-year highs, up by 18.0 per cent over the year to May. And vacancies are up by 23.7 per cent in the state’s mining heartland – the Pilbara and Kimberley regions - at 4-year highs.
The job internet vacancies data is a leading indicator of the job market and therefore important for consumer-focussed stocks and companies such as SEEK.
</div>
<div class="x_WordSection2">
<h1>What does it all mean?</h1>
Telco giant Telstra’s announcement that it will reduce 8,000 employee and contractor positions will hog the headlines today. But one company’s struggles in a highly competitive global telecommunications market isn’t necessarily a true reflection of what is occurring more broadly across the evolving Aussie jobs market.
In fact it wasn’t long ago that Australia’s resources sector was in the doldrums following the end of the mining construction boom. Well there is light at the end of the tunnel for Western Australians.
Job vacancies in the West are leading the country and are at 3-year highs. And while Perth ads are the best in 2½ years, most ads are being advertised in our mining heartland, the Pilbara and Kimberley regions. Engineers, labourers and construction workers are in huge demand.
And it’s little wonder. Aussie mining giants BHP and Rio Tinto are hiring workers again after a period of balance sheet consolidation and asset divestment. Profits have rebounded to 3-year highs on the back of rising commodity prices and supply restraints. BHP has recently approved its $2.9 billion South Flank iron ore project with production commencing in 2021. And Rio Tinto plans to start developing its Koodaideri iron ore mine next year.
The mining giants will be building their new mines at a time when Hancock Prospecting is ramping-up its Roy Hill operation, also located in the Pilbara. Hancock has recently lobbed a $390 million bid for Atlas Iron amid increased mergers and acquisitions in the resources sector. 
And in a sign that Australia is employing more people in STEM-related industries, job vacancies have surged by 23.7 per cent and 23.5 per cent for Engineers, and Science Professionals and Veterinarians, respectively over the past year. 
The same can’t be said for Farm, Forestry and Garden Workers with job ads down by 19.6 per cent over the past year.
<h1>What do the figures show? </h1>
Skilled Vacancies
The Department of Jobs and Small Business Internet Vacancy Index fell by 0.9 per cent in May after decreasing by 0.5 per cent in April. The index is 5.8 per cent higher than a year ago and is still at levels last seen six years ago.
Job vacancies decreased in all eight occupational groups in May. The largest falls in vacancies were recorded for Sales Workers and Labourers (both down 1.5 per cent) for a second consecutive month. Technicians and Trades Workers, Clerical and Administrative Workers, and Community and Personal Service Workers also declined (all down 0.7 per cent). Smaller declines were experienced by Professionals (down 0.5 per cent), Managers, and Machinery Operators and Drivers (both down 0.2 per cent). 
Job vacancies fell in five of the states and territories in May: NSW (down 0.9 per cent); Victoria (down 0.3 per cent); Queensland (down 1.1 per cent); South Australia (down 0.2 per cent); Western Australia (up 0.8 per cent); Tasmania (up 0.8 per cent); Northern Territory (up 0.5 per cent); ACT (down 1.4 per cent).
Over the year to May, job vacancies have increased in six of eight occupational groups.The strongest gains were recorded by Professionals (up 11.3 per cent), Managers (up 10.0 per cent), and Technicians and Trades Workers (up 8.5 per cent). Also rising were Clerical and Administrative Workers (up 6.2 per cent), Community and Personal Service Workers (up 4.5 per cent) and Machinery Operators and Drivers (up 4.4 per cent) also rose. But job advertisements decreased for Sales Workers (down 7.3 per cent) and Labourers (down 5.6 per cent).
Job advertisements increased in five states and the two territories over the year to May. Western Australia recorded the strongest rise (up 18.0 per cent), followed by the Northern Territory (up 10.3 per cent) and Victoria (up 8.1 per cent). Tasmania (up 7.2 per cent) and NSW (up 5.3 per cent), ACT (up 3.6 per cent) and Queensland (up 0.4 per cent) all increased. The only fall was recorded in South Australia (down 1.7 per cent).
<h1>What is the importance of the economic data?</h1>
The Department of Jobs &amp; Small Business releases a monthly Internet Vacancy Index. The index is based on a count of online job advertisements newly lodged on three main job boards (SEEK, CareerOne and Australian JobSearch) during the month. The index is the only publicly available source of detailed data on online vacancies, including for around 350 occupations (at all skill levels), as well as for all states/territories and 37 regions.
<h1>What are the implications for interest rates and investors?</h1>
Australia’s employment market is evolving. Job creation has slowed from record highs in January and more part-time jobs are being added due to record female worker participation.
The composition of the workforce is changing, as are broader market influences. Today’s skilled internet job vacancies are near 6-year highs, complementing other leading job indicators such as the ANZ job ads index, which is at 7-year highs.
According to SEEK, skill shortages are emerging in the Mining and Energy, Science and Technology, Trades and Services, and Construction industries over the year to May. The tightening of the labour market should see eventual wage gains in these sectors, gradually boosting inflation.   
CommSec expects official interest rates to remain stable until early 2019.
Ryan Felsman is a senior economist at CommSec.
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jrobinson-rf4aSBido9

Job advertisements in Western Australia's Pilbara are at three year highs: CommSec

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<img src="https://counter.theconversation.com/content/82317/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Any downturn in the construction industry could trigger job losses to a range of sectors that support the building industry, such as planning, project management, real estate and property services. This threat reveals the risk of relying on building and construction to sustain the economy. 
Since before the global financial crisis, urban economies across the world have relied increasingly on the construction of housing, especially high rise urban apartments, to maintain economic activity. 
Construction has boomed in Australia, especially in Melbourne and Sydney. Migration from overseas and interstate, as well as international student numbers, have so far maintained sufficient demand for city apartments and suburban houses to keep the building boom going.
Nationally the number of jobs in construction has increased from 927,000 in May 2007 to 1,110,400 in May 2017, an increase of 183,400 jobs. Even now, the federal government expects that construction employment will increase by 10.9% in the five years to 2022. 
But this view is at odds with new data. A recent report by advisory firm BIS Oxford predicts that new dwellings construction will fall by 31%, from 230,000 to 160,000 dwellings in Australia, in the next three years. This prediction foreshadows a dramatic decline in construction employment. 
The other jobs construction creates
Construction activity creates employment across the economy. There are jobs in industries that provide input building materials – such as local quarries and forests, sawmills, concrete products manufacturers, steel makers and glass, plastic and metal products manufacturers. There are also jobs created for people working in import firms bringing in materials that might not be made locally, as well as for people who work to store materials and transport them from ports and factories to building sites. Construction generates jobs for people involved in the design and planning of buildings, also those involved in the financing and contracting of construction projects. 
Once the buildings exist, construction creates more jobs in marketing the properties, building inspections, buyers agents, mortgage brokers, real estate agents and the like. After the sale, more jobs are sustained in interior designer, selling furnishings and fittings and appliances, and providing internet connections and utilities. 
The wages earned and taxes paid by these workers then create jobs in other services industries. This includes everything from dentists and personal trainers to bank tellers and public servants. New populations create new demand for supermarkets and schools and hospitals that employ more people. 
The secondary circuit of capital
Following the ideas of French urban theorist Henri Lefebvre, geographer David Harvey famously explained a process called the “second circuit of capital” where building replaces manufacturing as the driver of growth. This secondary circuit soaks up the excess capital sloshing around the world that can’t be invested profitably in the primary circuit of (manufacturing) production. Buildings are built for the purpose of generating profits for developers and investors. 
In places like Melbourne, the secondary circuit has created so many jobs in construction and related industries, that these have become the key drivers of growth. All these jobs are at risk when construction activity stalls. 
David Harvey’s crucial insight was that once economies rely on construction to drive employment, then the entire economy becomes like a giant Ponzi scheme. The only way that employment in a host city can be maintained is to keep building more buildings. 
Harvey argues the principle purpose of building is to generate profit, which means that the building will stop if there are insufficient numbers of buyers, or insufficient buyers willing to pay a price that will generate profit.
If the developers can elect to build elsewhere, in places where returns are higher, the local construction-led system can collapse like a house of cards. The resulting crisis would not be confined to the construction sector but would resonate through all the activities contributing to building or benefiting from the taxes and charges generated by building. 
That pretty much means everybody. Once the cards fall over, not only do employment opportunities decline, but so do property values, as prices adjust to the new reality. 
Some economists recommend creating new infrastructure projects to provide work, to keep the construction sector and material suppliers in business. But they rarely consider the second order effects as the downturn in construction filters through the economy. Most economists would argue that dealing with these secondary effects is best left to market forces. 
This means that as the downturn filters through the economy, jobs will be lost quietly across a range of sectors. The sectors most obviously vulnerable in the event of a downturn in residential building activity will be those that rely on discretionary building-related spending – such as furniture and effects retailing, wholesaling and manufacturing. The impacts on affected households will be no less devastating than for direct building jobs.
<a href="https://theconversation.com/profiles/sally-weller-116519" target="_blank">Sally Weller</a> is Visiting Fellow, Australian Catholic University and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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jchancellor-FAypfDUnLy

The hollow promise of construction-led jobs and growth

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GUEST OBSERVER
Australian employment jumped a surprising 42,000 in May, sharply above market expectations for a 10,000 gain, lifting the annual pace from 1.7 percent to 2.0 percent.
This is the third month in a row of very strong jobs growth.
The gain was led by a 52,100 rise in full-time jobs following a decline last month, so the quality of jobs growth has improved but it can be volatile month to month. 
Reflecting the strength in jobs growth, the unemployment rate dropped to 5.5 percent when the market expected it to hold at 5.7 percent. This rate is the lowest in 4 years (since early 2013).
<a href="https://www.propertyobserver.com.au/images/2017/06/15/image003.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/15/image003.png" alt=""> 
The third month in a row of very strong jobs growth may reflect sample rotation issues, which have been a regular cause of consternation with the labour market statistics.
And the jobs data does have a tendency to run hot and cold so we are now due for a weak patch.
But the May jobs data also brings the annual rate of jobs growth more into line with leading indicators of jobs growth (job ads, vacancies and hiring intentions from the NAB survey), which continue to point to solid jobs growth ahead albeit they have exaggerated actual jobs growth since 2014. See the next chart. 
<a href="https://www.propertyobserver.com.au/images/2017/06/15/image004.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/15/image004.png" alt="">
 
Whatever it is, strong jobs growth provides welcome news after a run of soft data for GDP growth, consumer confidence, retail sales and housing related indicators. 
The only problem of course is that underemployment remains very high at 8.8 percent leaving labour underutilisation high at 14.4 percent, albeit down from a recent high of 14.8 percent in February and this will act as an ongoing constraint on both wages growth and consumer spending.
<a href="https://www.propertyobserver.com.au/images/2017/06/15/image012.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/15/image012.png" alt="">
Implications
The RBA no doubt breathed a sigh of relief with today’s jobs data showing unemployment falling to its lowest since early 2013. This will support the RBA in leaving interest rates on hold for now. Nevertheless with numerous other indicators remaining on the soft side – including overall economic growth, consumer spending, non-mining investment, indicators for housing construction and wages growth – our view remains that there is far more risk of another rate cut than a rate hike in the next 12 months. But to see a cut we will likely need to see a faltering in the jobs data.
It’s interesting to note that while the $A pushed up through $US0.76 on the back of the strong jobs data, the share market initially weakened a bit more on the news presumably not liking the idea of a higher $A or less chance of another RBA rate cut.
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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Relief for the RBA for now: Shane Oliver

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GUEST OBSERVER
In the second half of 2016 employment growth significantly overshot our preferred leading indicators.
So we were not surprised, in fact we had been expecting such a shift, that in the first three months of 2016 (slide 5), the ABS reported total employment rising an average of just 5.6k per month taking the annual pace down to around 2 percent yr from the Nov 2015 peak of 3.0 percent yr.
From a significant outperformance compared in our preferred near-term employment indicator, the Westpac Jobs Index (slide 6), employment growth quickly fell to be more in line with it.
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The June Labour Force Survey continued this softer 'trend' with a 7.9k rise in total employment. Westpac was forecasting +10k while the market was expecting +12k. Total employment has lifted 225.0k in the year (or 1.9%yr) and while full-time employment bounced back in the month (+38.4k) and part-time fell 30.6k, annual growth in part-time employment continues to outpace full-time employment (134.4k/3.7 percent yr vs. 90.6k/1.1 percent yr).
We believe that the shift to part-time employment is likely to be more about the sectors are expanding and contracting rather than any significant change to employment arrangements. It is a similar situation for employment by gender with female employment rising 136.2k in the year (2.5 percent yr) compared to the 88.8k (1.4 percentyr) rise in male employment.
It is possible that uncertainty around the Federal election may have held back the employment gains in July.
In addition, the ABS notes that the July outgoing rotational group for the sample has a higher than average attachment to the labour force. If the in group rolling is more average, this could lead to a softer employment print but not necessarily a higher unemployment rate.
So it may be tempting to forecast a soft employment gain, our Jobs Index continues to strengthen suggesting we are in store for a pick-up in employment. Westpac’s July forecast for +25k total employment has the annual rate easing back a touch to 1.8%yr. However, this is more about base effect than the start of a meaningfully softer trend. The participation rate rose 0.1ppt in May to 64.9. Westpac is forecasting the participation to be flat in June (slide 7). 
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Participation did rise through 2015, due in a large part, to rising participation in NSW and, in particular, by females. We have seen a very modest moderation so far in 2016 and the big question for 2016 is can NSW hold this overall higher rate of participation as males participation in that state continues to trend lower? (slide 8).
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Our July forecast for flat participation combined with a solid employment number should be enough to hold the unemployment rate at 5.8%. (slide 9)
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The March and April Labour Force Surveys revealed a cautionary sign in a sudden decline in hours worked but so far, this has not turned into similar downturn in employment (slide 10).
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While hours worked per person, particularly for full-time employees, has weakened in the last year it does appear that the worst as the slide in hours worked has not led a correction in employment. (slide 11).
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The ABS publishes their own measure of unemployment expectations and this lifted through Q1 which was a worry as this can point to a possible rise in unemployment (slide 12).
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However, the Q2 update reveals this as a temporary blip just as the Westpac–Melbourne Institute Unemployment Expectations Index suggested it would be (slide 13). 
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The Westpac–MI Index is pointing to the labour market improving in the near term at least in regards to the unemployment rate (slide 14).
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The Westpac–MI is also useful for gauging how much hours worked may be over/under shooting relative to expectations and thus point to turning points in hours worked momentum. (slide 15) (slide 16).
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Outside of NSW it seems we have passed an inflection point for growth in hours worked. 
Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a><a href="https://wibiq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2016/August/er20160517JulyPreview.pdf">.</a>
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Labour market improving in the near term: Justin Smirk

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<div>A strong +1.6 percent increase in job advertisements in June saw year-on-year vacancies rise very strongly by +11 percent to a total of 169,600, according to the Department of Employment.</div>
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<img src="/images/2016/07/21/Job%20Abs2.jpg" alt=""> <div>Source: Department of Employment</div>
 <div>Total vacancies are now at their highest level in four years, which bodes well for jobs growth picking up. </div>
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<div>Since the peak of the mining boom June 2012, the share of total vacancies located in Western Australia has declined from 15.6 percent to 7.8 percent. </div>
 <div>On the other hand there has been a huge surge in vacancies in New South Wales over the past three years, up by 37.4 percent in trend terms to a massive 91,400 (a record boom). </div>
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<div>Over the past year the percentage growth in vacancies has also been very strong in Victoria, Queensland, South Australia, Tasmania, and the ACT. </div>
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<div>In trend terms all eight occupation groups are strengthening, and over the year job advertisements were up in 33 of the 37 recorded regions. </div>
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<div>The decreases were seen in northern Queensland, Perth, and western Tasmania.</div>
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 <div>The index has its weaknesses, particularly since it doesn't differentiate between full time and part time gigs.</div>
 Nevertheless, all in all, this looks pretty good for jobs growth in the second half of 2016.</div>
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PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
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Job ads up to a four-year high: Pete Wargent

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Treasurer Scott Morrison noted only yesterday that "the rate of unemployment has been under 6 now for some months."
Not any more, based on the January figures released today.
But trend employment has continued to show strong growth, according to figures released by the Australian Bureau of Statistics (ABS) today. 
"The trend shows that around 302,000 more people were employed in January 2016 than in January 2015 and full-time employment growth was a bit stronger than part-time growth over the year, increasing by 169,800 people," General Manager of ABS' Macroeconomic Statistics Division, Bruce Hockman said.
The increase in employment has contributed to the trend employment to population ratio rising over the year from 60.7 per cent to 61.4 per cent, while the unemployment rate decreased over the year from 6.2 percent to 5.8 percent.
Over the past month, trend employment increased by 19,800 persons to 11,909,900 persons, which equates to a monthly growth rate of 0.17 per cent. 
This growth rate was slightly above the monthly average over the past 20 years (0.15 per cent), and continues the recent trend in relatively strong employment growth.  
The trend series smooth the more volatile seasonally adjusted estimates and provide the best measure of the underlying behaviour of the labour market.
The seasonally adjusted number of persons employed decreased by 7,900 in January 2016, while the number of persons unemployed increased by 30,200. 
The seasonally adjusted unemployment rate for January 2016 was 6.0 percent (up 0.2 percentage points) and the seasonally adjusted labour force participation rate was unchanged at 65.2 percent.
The ABS seasonally adjusted monthly hours worked in all jobs series increased by 10.9 million hours (0.7 per cent) to 1,656.0 million hours.
Westpac noted the rise in the unemployment rate to 6% may give the RBA a reason to pause and consider their assessment of the labour market. 
"In the most recent Statement on Monetary Policy they stated that the unemployment rate had fallen below 6% and was likely to stay there. 
"While one month is not a trend we would suggest that today’s print would make them a little less confident in that assessment," Westpac noted.
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Unemployment at 6 percent unexpectedly in early 2016

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GUEST OBSERVER
Today's Australian jobs numbers surprised a little to the downside, with a drop of -5k jobs in September (market had +10k), while the unemployment rate was steady and in line with expectations at 6.2%.
The unemployment rate has now been broadly steady between 6.0-6.4% for the past 16 months. The official labour market numbers are broadly in line with other surveys, including job advertisements, vacancies and hiring intentions, which have all shown a gradual improvement in labour demand since their trough in early 2014.
This gradual improvement is consistent with the RBA's own forecasts. We expect the RBA to be on hold in coming quarters.
Facts
Employment fell by -5.1k in September (market and HSBC expected +10k). Over the past six months, employment growth has averaged +15k a month. Annual employment growth was unchanged from August, at 2.0% y-o-y.
The participation rate fell by 0.1ppt to 64.9%. The recent trough in participation was 64.5% in October 2014.
The unemployment rate was unchanged at 6.2%, in line with expectations and also exactly where it was one year ago. The unemployment rate has been between 6.0% and 6.4% for the past 16 months, during which time the trend unemployment rate has been steady at 6.1-6.2%.
Total hours worked lifted by 0.7% in September, with annual growth rising to 2.5% y-o-y. This is the fastest pace of growth since the year to October 2011.
Implications
Although the monthly jobs print was weaker than expected (-5k), the unemployment rate is still continuing to track sideways, rather than rise. Looking through the month-to-month volatility, these numbers suggest continuation of the status quo. The labour market has stabilised but there is not quite enough momentum to get the unemployment rate to fall.
Given recent measurement challenges in the official numbers it is also important to put them in the context of the full range of jobs indicators (see charts below). These measures are showing a broad trend of gradual improvement in labour market conditions.
 Job advertisements rose in September, continuing the upward trend that has been apparent since early 2014. The ABS quarterly job vacancies survey shows a similar trend and continued to rise in Q3. Both of these surveys are showing gradual improvement, although the pace is slower than in previous cycles. 
The consumer sentiment survey has also recently shown a sharp fall in households' expectations of unemployment. This suggests that the labour market is not a key constraint on households' spending decisions. 
From the RBA's perspective, today's numbers are unlikely to be surprising. Along with other indicators, they confirm that the labour market is stabilising, consistent with the RBA's own forecast for a steady unemployment rate in coming quarters. 
 
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<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">Paul Bloxham</a> is chief economist (Australia and New Zealand) for HSBC. Daniel Smith is economist, HSBC.
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