A trio of Queensland property groups have unveiled plans for a $300 million mixed-use redevelopment of the former Noosa Bowls Club site, a proposal that would deliver more than 200 new homes in one of the Sunshine Coast's most supply-constrained markets.

Kilter Property, Frank Developments and Calile Malouf Investments are behind the plans for the 1.8-hectare site at <a href="https://www.apartments.com.au/new-apartments/99-noosa-drive-noosa-heads-qld-4567">99 Noosa Drive</a>, which would transform the long-vacant site into a new residential precinct featuring 208 apartments, retail, hospitality and public space.

The proposal comes as Noosa continues to grapple with housing affordability and a shortage of permanent accommodation, particularly for key workers. The site's location in Noosa Junction, close to shops, public transport and employment, aligns with the direction of Noosa Council's Housing Strategy, which encourages higher-density housing within established activity centres rather than continued urban expansion.

The draft plans include 48 affordable-by-design apartments and 48 rooming accommodation units aimed at key workers. Around 2,000 sqm of ground-floor retail and food and beverage space would activate the street frontage, alongside a new public town square and landscaped open space.

<img alt="Noosa" data-entity-type="file" data-entity-uuid="2dd02f53-1360-4e51-801e-bfd61a6c980e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-26%20at%208.44.34%E2%80%AFPM.png?VersionId=x1iNs3BSMN6Jy7YUwaBZMHRrrKX2hMpy" />

&nbsp;

Frank Developments Founder and Director Frank Licastro said the development would continue the company's focus on architecturally-led residential projects while addressing one of the region's biggest challenges.

"Not only will this project exude a sense of luxury, it will also enhance not only the built environment but also the surrounding community," Licastro said.

"Noosa's success relies on the people who live and work here. Providing well-designed accommodation for key workers is critical to supporting the local economy and ensuring the Shire can continue to thrive."

Kilter Property Co-Founder Huw Williams said the focus was on delivering additional permanent housing while creating a mixed-use destination that benefits both residents and the wider community.

"Our focus is on delivering a well-considered mixed-use project that provides more permanent housing options, supports local workers and businesses, and delivers an exceptional product for the local market," Williams said.

"The redevelopment vision aligns with the long-term evolution of Noosa Junction as a vibrant activity centre, creating a destination that enhances the area's character while delivering significant economic and community benefits."

Calile Malouf Investments, best known for its role in Brisbane's James Street precinct and The Calile Hotel, will bring its place-making experience to the project. The company recently commenced construction on The Calile Noosa hotel and says the residential development will complement its growing investment in the region.

CMI Director Cal Malouf said the aim was to create a walkable precinct combining housing, retail and hospitality while remaining true to Noosa's character.

"We see a similar opportunity in Noosa to deliver a vibrant, walkable destination that combines exceptional housing, hospitality and retail in one integrated project," Malouf said.

Brisbane-based Cavill Architects has been appointed to design the project.

Joel Robinson

Noosa Bowls Club to be redeveloped into mixed-use apartment precinct

One of Brisbane's last major riverfront redevelopment opportunities has taken a significant step forward, with Lendlease selected as the Queensland Government's preferred development partner for the former Visy site in South Brisbane.

The seven-hectare industrial site, positioned between South Bank and West End and 1.3 kilometres from the Brisbane CBD, will be transformed into a mixed-use precinct expected to deliver more than 4,000 new homes alongside extensive public open space and riverfront parkland.

The project is one of the largest urban renewal opportunities currently planned in Brisbane and is expected to play a key role in accommodating the city's growing population ahead of the 2032 Olympic and Paralympic Games.

Plans for the precinct include a network of riverfront promenades and boardwalks, new public plazas, parkland, amphitheatre-style gathering spaces and shared pedestrian and cycling links designed to reconnect the long-isolated site with the Brisbane River.

The Queensland Government is targeting delivery of the first homes and key public spaces before the 2032 Games, allowing the precinct to begin contributing new housing and public amenity well before the broader masterplan is complete.

The redevelopment is also expected to support more than 3,000 jobs across planning, construction and ongoing operations.

For Lendlease, the appointment adds another major urban regeneration project to its Queensland portfolio. The developer has operated in the state for more than 70 years and has delivered a number of large-scale mixed-use precincts in partnership with government.

Lendlease Development CEO Claire Johnston said the project represented one of Brisbane's most significant redevelopment opportunities.

"The transformation of the former Visy site represents a rare opportunity to reimagine one of Brisbane's most significant riverfront locations, deliver thousands of much-needed homes, and create long-term legacy," Johnston said.

"In partnership with the Queensland Government, we have the opportunity to create a new riverside destination that will help shape Brisbane's growth and how people experience the city for decades to come.

"This is exactly the type of large-scale, city-shaping development that will provide lasting benefits for Queensland, bringing together housing, jobs and world-class public spaces."

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the riverfront transformation would deliver a thriving new community precinct.

“The Crisafulli Government is delivering this golden opportunity to unlock a riverfront jewel for all Queenslanders,” Deputy Premier Bleijie said.

“This is a once-in-a-generation moment to reshape a significant slice of Brisbane and deliver lasting benefits – thousands of new homes, and public spaces for all Queenslanders to enjoy well beyond the 2032 Olympic and Paralympic Games – unlike Labor’s plan which would have delivered zero benefits and zero new homes.

“Queensland is well and truly open for business and through partnership with the private sector, we are accelerating delivery while ensuring strong housing, community and economic outcomes."

Early works on the precinct are expected to commence in April 2027.

Lendlease selected to deliver transformative South Brisbane riverfront precinct

Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year.

The developer plans to redevelop the 13,088 sqm WIN Grand megasite into <a href="https://www.apartments.com.au/new-apartments/crown-square-216-238-keira-street-wollongong-nsw-2500">Crown Square</a>, a new $500 million precinct with nearly 600 apartments. It also has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

First look: Level 33 upsizes Wollongong apartment towers

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada Australia</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada Australia's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada Australia as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada Australia files for trio of apartment towers in Campsie town centre</a>

Arada Australia entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada Australia doubles down in Campsie with 33-storey Metro-front tower plans

Labour

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GUEST OBSERVATION
Most Australians are spending more of their income on housing than they used to, but low-income households are being squeezed the hardest.
Many are in <a href="https://www.acoss.org.au/wp-content/uploads/2018/10/ACOSS_Poverty-in-Australia-Report_Web-Final.pdf" target="_blank">poverty</a>, and many more are suffering <a href="https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-in-retirement.pdf" target="_blank">financial stress</a>. A growing number of Australians are becoming <a href="https://blog.grattan.edu.au/2019/06/who-is-homeless-in-australia/" target="_blank">homeless</a>.
A decade ago the Rudd federal government established the National Rental Affordability Scheme – <a href="https://www.dss.gov.au/our-responsibilities/housing-support/programmes-services/national-rental-affordability-scheme" target="_blank">NRAS</a>. The scheme paid incentives to developers and community housing organisations that built new homes and rented them out for at least 20% below market rents for 10 years.
The Abbott government axed the scheme in 2014. Labor promised to reintroduce it if won the 2019 election. Now advocates of affordable housing are calling on the Morrison government to do the same.
But new research <a href="https://blog.grattan.edu.au/?p=1011&amp;preview=true" target="_blank">published by the Grattan Institute today</a> concludes they are wrong. The NRAS was expensive, inefficient and mainly helped those not in greatest need.
Other policies, such as building social housing and boosting Commonwealth Rent Assistance, would be better targeted and waste less money along the way.
Poor value for money
The <a href="https://www.dss.gov.au/our-responsibilities/housing-support/programs-services/national-rental-affordability-scheme/national-rental-affordability-scheme-nras-incentive-indexation" target="_blank">value of the NRAS subsidy</a> was set much higher than it needed to be.
NRAS developers still on the program receive about A$11,000 of public money per unit per year (the subsidy was set originally at A$8,000, but indexed).
The problem is, A$11,000 is much more money than the developers need to cover the cost of the rental discount.
In 2016 the value of the 20% rental discount was slightly less than A$4,000 a year in the typical suburb in which NRAS properties were built.
The leftover value of the subsidy – about A$7,000 a year – was essentially a windfall gain for developers.
We estimate it provided windfall gains to private developers of at least A$1 billion, or roughly one-third of the <a href="https://www.anao.gov.au/work/performance-audit/national-rental-affordability-scheme-administration-allocations" target="_blank">total cost</a> of the scheme.
Community housing providers also received windfall gains, although they would have reinvested the funds into more affordable housing or deeper rental discounts for tenants.
The scheme was also poor value for money because the subsidy didn’t vary depending on location or type of dwelling: the same subsidy was offered for a one-bedroom apartment or a three-bedroom home. Not surprisingly, the scheme ultimately <a href="https://www.dss.gov.au/sites/default/files/documents/07_2019/nras-quarterly-report-march-2019.pdf" target="_blank">funded</a> a lot of small, cheap-to-build units.
Not directed at those most in need
The eligibility criteria were far too loose.
Someone can qualify to live in one of the NRAS dwellings left on the scheme with an income of <a href="https://www.dss.gov.au/our-responsibilities/housing-support/programs-services/national-rental-affordability-scheme/national-rental-affordability-scheme-nras-household-income-indexation" target="_blank">up to A$50,000</a> – a good deal higher than the <a href="https://blog.grattan.edu.au/2019/04/how-much-does-the-typical-australian-earn-the-answer-might-surprise-you/" target="_blank">median income</a>.
A couple can qualify if their household income is below A$70,000.
It means about half of all households that rent can qualify to live in an NRAS subsidised home. Half of them would be ineligible for Commonwealth Rent Assistance because their incomes are too high.
Only <a href="https://www.dss.gov.au/sites/default/files/documents/06_2017/nras_tenant_demographic_report_as_at_30_april_2016.pdf" target="_blank">one-third</a> of the households living in an NRAS home at the scheme’s peak in 2016 had gross household incomes below A$30,000 a year, whereas one-third had incomes above A$50,000 a year.
No extra housing
There’s also little evidence the NRAS led to much more housing being built than otherwise.
Government subsidies don’t create extra housing if they crowd out housing that would have been built anyway. Crowding out is most likely when supply is already constrained, as it is in major Australian cities where land-use rules <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">prevent greater density</a> in established suburbs. International research suggests affordable housing <a href="https://www.sciencedirect.com/science/article/abs/pii/S0047272710000885" target="_blank">crowds out</a> private housing.
No useful stimulus
Nor was the NRAS a useful stimulus. It began in 2008 at the height of the global financial crisis, but most NRAS properties were <a href="https://www.dss.gov.au/sites/default/files/documents/07_2019/nras-quarterly-report-march-2019.pdf" target="_blank">only approved</a> between 2013 and 2015, by which time housing construction was <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf" target="_blank">already booming</a>.
<a href="https://www.anao.gov.au/work/performance-audit/administration-national-rental-affordability-scheme" target="_blank">Administrative difficulties</a> and a complex design made housing constructed through NRAS anything but timely.
Better alternatives
Instead of reinstating the NRAS, state and federal governments should focus on policies that will do the most (at least cost) to better house low-income Australians.
A Rudd-era policy the Morrison government should introduce is the <a href="http://www.nwhn.net.au/admin/file/content101/c6/social_housing_initiative_review.pdf" target="_blank">Social Housing Initiative</a>, which built 20,000 new social housing units and refurbished another 80,000 over two years at a cost of A$5.6 billion.
The economic hit was immediate: construction approvals spiked within 12 months of the announcement. A repeat today would provide a more effective boost to declining housing construction than a reinstated NRAS.
<a href="https://grattan.edu.au/report/commonwealth-orange-book-2019/" target="_blank">Boosting</a> Commonwealth Rent Assistance by 40%, and indexing it to changes in rents typically paid by people receiving income support, would be a fairer and more cost-effective way to help the much larger number of lower-income earners struggling with housing costs.
It <a href="https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-in-retirement.pdf" target="_blank">shouldn’t push up rents much</a> because only some of the extra assistance will be spent on housing.
The states should also <a href="https://theconversation.com/to-make-housing-more-affordable-this-is-what-state-governments-need-to-do-105050" target="_blank">fix planning rules</a> that prevent more homes being built in inner and middle-ring suburbs of our largest cities. It would help a bit to make housing cheaper to buy and rent. Reforming tenancy rules would make renting more secure.
There is a powerful case for governments to do more to help house low-income Australians. But unless we learn from past mistakes, we will wind up with another expensive housing policy that does little to help those who most need that support.<img src="https://counter.theconversation.com/content/122854/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Brendan Coates, Program Director, Household Finances, Grattan Institute.
Jessie Horder-Geraghty, Researcher, Grattan Institute.
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/rudds-rental-affordability-scheme-was-a-1-billion-gift-to-developers-abbott-was-right-to-axe-it-122854" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Kevin Rudd’s rental affordability scheme was a $1 billion gift to developers; Tony Abbott was right to axe it

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GUEST OBSERVER
Today’s modest increase in employment of 10.8k was pretty much in line with market expectations which were centred on a lift of 12.0k (CBA(f) +20k). 
The lift in jobs builds on the solid rise in employment over March and confirms that job creation is still taking place despite record low (and falling) wages growth. The pulse of jobs growth, however, has slowed since the beginning of the year after accelerating markedly in the December quarter. Digging below the surface shows that today’s employment report is softer than the headline numbers imply.
The trend: Cutting through the volatility shows that monthly jobs growth over the past four months has averaged just 6.5k. Normally such an outcome would be associated with an increase in the unemployment rate. But a downward trend in the participation rate has meant that the unemployment rate has actually come down over that period.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%203.31.14%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%203.31.14%20PM.png" alt="">
Unemployment: The unemployment rate was able to hold firm at 5.7 percent in April because the participation rate moved a touch lower. The trend unemployment rate, which smooths out the monthly volatility, continued to edge lower.
Hours worked: Growth in aggregate hours worked has eased over the past few months.
Total aggregate hours worked fell by 1.1 percent in April and took the annual change into negative territory (-0.5 percent) for the first time since May 2013. On the surface, this looks at odds with the annual change in the level of employment (+2.1 percent). But the disparity is explained by the big lift in part-time jobs over the past year. There have been twice as many part-time jobs (161k) created as full-time jobs (83.8k).
States: Across the States, there were job gains in NSW (+8.4k), Vic (+0.7k) and SA (5.7k). Employment was flat in WA and TAS while it fell in QLD (-6.6k). NSW and Vic have been driving national employment growth. Booming property markets in both Sydney and Melbourne have supported household consumption in NSW and Victoria, which is largely to the benefit of the services sector.
Leading indicators: The leading indicators of employment growth are painting a mixed picture at present. The vacancies series are pointing to only modest jobs growth, but the NAB business survey continues to suggest robust jobs growth.
The fall in hours worked looks concerning, but then the downward trend in the unemployment rate appears optically comforting. So there is something in the numbers for those looking at them with either an optimistic or pessimistic lens.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%203.35.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%203.35.11%20PM.png" alt="">
We would argue that the RBA is viewing the labour market through a realistic lens and their latest assessment that, “employment would continue to grow, but at a somewhat slower pace than had been evident over the previous year” looks about right.
RBA: Today’s figures on their own don’t really shift the dial from an RBA perspective for the June meeting. But when pieced together with yesterday’s very soft wages report it may be that the risks of a June cut are lifting a little. The capex report next week now takes on added importance for those picking the timing of another expected cut to the cash rate.
<div class="page" title="Page 1">
<div class="page" title="Page 1">
Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
</div>
</div>
 
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jchancellor-FAypfDUnLy

Headline labour force figures ok, but details reveal softness: CBA's Gareth Aird

<html><body>
GUEST OBSERVER
The emerging new trend for slightly softer participation is something we are watching closely. Also note that annual growth in total hours worked was negative this month.
There was not much excitement in the 10.8k rise in total employment in April as was enough to lift the annual pace to 2.1 percent/yr from 2.0 percent/yr and hold the unemployment rate flat at 5.72 percent.
On these two headline numbers there is not much to make you want to alter neither your trajectory for the Australian labour market nor how you think about the outlook for monetary policy.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%202.25.19%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%202.25.19%20PM.png" alt="">
However, there are still some key issues that come to light from the current survey. First is further confirmation that employment growth is concentrated in female and part-time employment.
In the year to April, part-time employment has grown 160.9k (4.5 percent/yr) while full-time employment has growth 83.8k (1.0 percent/yr). 
Given that full-time employment represents 69 percent of total employment that in the last year we have added twice as many part-time employees as full-time employees it really highlights the significant shift the economy is experiencing. Furthermore, female employment has grown 164.4k (3.1 percent/yr) in the year to April which is more than double the 80.3k gain (1.3 eprcent/yr) in male employment. As we have noted previously, this highlight the big shift in employment growth from the previously booming resources sectors to the more modestly growing services sectors as these sectors have a much higher proportion of female and part-time workers in their labour force.
<a href="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%202.25.52%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/18/Screen%20Shot%202016-05-19%20at%202.25.52%20PM.png" alt="">
The second key issue is that the participation rate was flat in April. From January 2014 there has been a trend rise in participation which has been driven mostly by a rise in female participation and in particular, a rise in female participation in NSW. However, participation appears to have peaked in the last quarter of 2015 averaging 64.1 percent, up from 65.0% in Q3, then moderate to 64.9 percent in the first quarter of 2016. Printing 64.9 percent in April is does look as if participation is holding around these new levels rather than drifting higher.
It is also worth noting that a return of a small trend decline in male participation has been key to this moderation. Female participation has been volatile of late but the trend appears to be holding the new higher level.   
There was one indicator that suggests we should be cautious about being too optimistic about the near term employment outlook. Total hours worked fell 1.1 percent in April, following a –1.1 percent print in March, to be down 0.5 percent in the year. Compare this to the 2.1 percent/yr gain in total employment. As we illustrate in our chart, a negative print from growth in hours worked has tended to, but not always, been consistent with either softer growth in total employment and/or marginally led a dip in total employment. That is it could be a potential signal for softer employment numbers sometime in the next few months.
ustin 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>.
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