<a href="https://www.apartments.com.au/new-apartments/smith-by-valli-collingwood-224-228-smith-street-collingwood-vic-3066">Smith Collingwood</a> is a new boutique apartment development bringing a refined, design-led approach to one of Melbourne’s most established inner-city neighbourhoods.

Designed by <a href="https://www.apartments.com.au/architects/pandolfini-architects">Pandolfini Architects</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/lisa-buxton-interiors">Lisa Buxton</a>, Smith by Valli sits on iconic Smith Street and comprises just 22 residences tailored toward owner-occupiers seeking a more considered style of apartment living.

[smartcode_project:default project_id=140747 project_image_fid=367540]

The design of Smith focuses on a north-facing orientation across all residences, a relatively uncommon feature in dense inner-Melbourne settings. Each apartment has been planned to maximise natural light and outlook, alongside a material palette defined by warm tones, custom joinery, and a full suite of Gaggenau appliances.

The development comprises a mix of one, two, and three-bedroom apartments, with pricing currently ranging from just under $1 million to around $4.85 million for the premium penthouse-level residences, reflecting growing demand for luxury owner-occupier product in Melbourne’s inner urban market.

Residents will also have access to a private rooftop garden designed as an elevated retreat above the city, &nbsp;featuring curated landscaping, veggie boxes, intimate seating areas and spaces for relaxed gatherings. Sustainability has also been integrated into the project through a 7-star energy rating and two secure bicycle facilities for every residence.

[smartcode_project:default project_id=140747 project_image_fid=367529]

Smith by Valli sits in the heart of one of Melbourne’s most established retail and hospitality strips, within walking distance of venues such as Falco Bakery, Carnation Canteen and Alimentari, alongside parks and everyday services. With a Walk Score of 99, the location reinforces the project’s positioning toward buyers prioritising walkability and access over car dependency.

With only a limited number of residences, Smith reflects growing demand for smaller, highly curated apartment developments that prioritise design quality, liveability, and connection to neighbourhood character.

[smartcode_project_cta:default project_id=140747]

Joel Robinson

Smith by Valli delivers a refined collection of luxury residences to Melbourne’s inner north

<a href="https://www.urban.com.au/developers/far-east-consortium">Far East Consortium</a>’s 640 Bourke Street stands as a testament to&nbsp;<a href="https://www.urban.com.au/developments/melbourne-vic-3000">Melbourne</a>’s ability to bridge its storied past with a bold vision for the future.&nbsp;

Rising above the heritage-listed Eliza Tinsley building, the development reflects a broader shift toward adaptive reuse in the city, where historical assets are retained and reinterpreted as part of new residential development.

Designed by <a href="https://www.urban.com.au/architects/rothelowman">Rothelowman</a>, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> incorporates the Eliza Tinsley building as its foundation, housing a grand gallery and lobby space that serve as both a functional and symbolic centrepiece. The heritage façade informs the tower’s design, creating a connection between Melbourne’s past and its contemporary skyline.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=365684]

Above this historic base, the 68-storey tower will deliver just over 600 residences, a notable reduction from earlier schemes, reflecting a deliberate move toward larger-format apartments and a stronger owner-occupier focus.

Unlike traditional CBD developments that prioritised investor stock, 640 Bourke Street has been repositioned to respond to changing buyer expectations.

"The discussion was all around making 640 Bourke Street the best residence to live in, to be much more focused on the people in the building rather than people looking at the building," Marsland explained.&nbsp;

This shift is evident in the development’s interiors, which emphasise practical luxury with spacious layouts, high ceilings, and floor-to-ceiling windows framing sweeping views of Melbourne and Port Phillip Bay.&nbsp;

“What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Lauren Sheldon, Far East Consortium’s Director of Sales and Marketing, said.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=365687]

Rothelowman Associate Jun Chang added, "We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."&nbsp;

Amenities spanning more than 3,000 sqm across multiple levels further reinforce this focus on resident experience. These include a pool, gym, co-working areas, and a range of hospitality-inspired spaces such as a whisky lounge, library, and private dining rooms, many drawing reference from traditional bathhouses and Melbourne’s laneway culture.

"We wanted to make both the pool and the gym area to be absolutely destinational, and when you traverse across to these spaces, there is a gentle familiarity to the beautiful notions of the hammams and the Roman baths, a gentle nod to history," Chang noted.

At street level, the project contributes to the ongoing transformation of the western CBD, with upgrades to Langs Lane and the introduction of retail, hospitality, and gallery spaces designed to activate the precinct and strengthen its connection to the surrounding city fabric.

[smartcode_project:default project_id=509 project_image_fid=365689]

The location places residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market, and the Docklands waterfront, positioning the development within a rapidly evolving inner-city neighbourhood.

"We believe it's the best site left in the city of Melbourne," Craig Williams, Executive Director at Far East Consortium, said.&nbsp;

640 Bourke Street is Far East Consortium’s 14th building in Melbourne’s western CBD.

"A very elegant designed building. It's going to be a Melbourne statement for many, many years to come."

One-bedroom apartments are priced from around $640,000, with 640 Bourke Street targeting completion in 2029.

Renders shown are Artist's Impressions correct as of May 2026.

[smartcode_project_cta:default project_id=509]

Heritage-led design anchors Far East Consortium’s 640 Bourke St, Melbourne

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.

The sale equates to around $37,500 per sqm.

The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.

Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.

“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.

“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”

[smartcode_project:default project_id=146358 project_image_fid=323057]

The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.

Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.

When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.

“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.

“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”

[smartcode_project:default project_id=146358 project_image_fid=323055]

Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.

Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.

“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”

Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.

[smartcode_project:default project_id=146358 project_image_fid=323052]

The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.

Mould said the design intent was to balance that outlook with a sense of retreat.

“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”

The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.

[smartcode_project_cta:default project_id=146358]

MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.

Developer BIG Projects brought in the renowned Sydney-based design studio YSG Studio to craft the interiors for The Frederick, BIG Projects' new Mermaid Beach project and YSG Studio's first move into the multi-residential development space.

[smartcode_project:default project_id=110588 project_image_fid=5346]

It was a strategic move for BIG Projects to bring in a Sydney eye to the development.

“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of BIG Projects.

“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”

There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;

[smartcode_project:default project_id=110588 project_image_fid=5347]

Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."

“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.

"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”

A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.

[smartcode_project:default project_id=110588 project_image_fid=5360]

Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.

“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.

Architecture for the project was led by Plus Studio, with landscape design by LDG Landscape Architecture.

SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.

"They’ve reviewed a number of projects, however this one has stood out for its unique detailing and compelling design,"&nbsp;Clydsdale says.

Site demolition is slated for this month, with construction commencing soon after. BIG Projects is targeting a late 2027 completion.

[smartcode_project_cta:default project_id=110588]

Sydney’s YSG Studio makes Gold Coast multi-residential debut with BIG Projects at The Frederick

Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;

Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;

The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;

The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;

Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" />

Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;

Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;

The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;

ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;

Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;

<img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" />

For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;

“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.

"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.

“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."

Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.

"We are really looking forward to the market’s response,” he said.&nbsp;

ALTA Property to deliver $200 million Queens Road apartment tower

Labour

<html><body>
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

<html><body>
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>
</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.
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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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