Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

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.
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<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>
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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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