<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Residential Construction

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Construction has begun on DUO, the joint venture of Frasers Property Australia and Sekisui House Australia.
The joint venture has appointed construction company, Brookfield Multiplex, to deliver DUO under a $290 million construction contract.
DUO is scheduled for completion in early 2018.
More than half of the 5.8 hectare Central Park precinct has already been delivered.
The start of construction of DUO’s two towers on Broadway kicks off the fifth stage in the construction program of this $2 billion master-planned community in Chippendale.
The pair of buildings will be located on the corner of Broadway and Abercrombie Streets at the award-winning Central Park development in Chippendale.
Designed by one the world’s most awarded architecture practices, Foster + Partners, DUO will be Foster + Partners’ second residential building in Australia.
For more information, <a href="https://www.centralparksydney.com/live/duo" target="_blank">click here</a>.
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jonathanchancellor-7SQnKwU6yx

Duo construction begins at Central Park, Chippendale

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The Australian Bureau of Statistics released construction work done data for the March 2016 quarter last week. 
The data set looks at the value of construction work completed over the quarter and is an input to the national accounts (GDP) data.
<a href="/images/2016/06/06/Chart-1-3-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/06/Chart-1-3-580x210.jpg" alt="">
Over the quarter, the value of construction work done was $47.928 billion which was down -5.5 percent over the quarter and -7.2 percent year-on-year.  In fact, the value of construction work done over the March 2016 quarter was the lowest since June 2011 and has been trending lower since the December 2012 quarter.
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<img src="/images/2016/06/06/Chart-2-2-580x208.jpg" alt="">
The decline in the value of work done is largely being driven by engineering construction which was bolstered until recent by the mining investment boom.  Over the quarter there was $24.9 billion worth of building work completed and $23.0 billion in engineering construction completed. 
It shows that following a recent boost from infrastructure investment, building construction is now the key driver.  The value of engineering construction work done peaked at $34.7 billion in the September 2012 quarter and has since fallen by -33.6 percent while building activity peaked at $25.2 billion in the December 2015 quarter and has fallen by -1.0%.  With construction work in both the building and engineering sectors falling it is difficult to see how construction work done won’t continue to decline over the coming months.  Even the largest residential housing construction boom on record has not been enough to offset the previous largest engineering construction investment boom on record.
<a href="/images/2016/06/06/Chart-3-2-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/06/Chart-3-2-580x210.jpg" alt="">
The building segment of construction work done consists of residential and non-residential construction (offices, retail shops, industrial properties).  The previous data showed building work has started to fall with the fall being driven by non-residential construction.  In fact residential construction work done is continuing to climb and is now at a record high $16.6 billion while non-residential is down -18.6 percent from its June 2010 peak.  While the largest residential construction boom in history continues to drive activity in that sector higher, it isn’t enough to offset the decline in the non-residential (and engineering construction) sector which is well below peak levels of activity.
<a href="/images/2016/06/06/Chart-4-1-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/06/Chart-4-1-580x207.jpg" alt="">
The residential construction component is further broken down into three components: houses, other residential (units) and alterations and additions, including conversions. Unit construction work done reached a record high of $6.8 billion on the back of the biggest unit construction boom on record. 
While unit construction activity continues to rise, the $7.7 billion in work done for houses is down -7.1 percent from its recent peak in March 2015 at $8.3 billion.  The value of alterations and additions completed was recorded at $2.0 billion over the quarter down -6.9 percent from its $2.1 billion peak over the September 2011 quarter.  It is anticipated work done for houses will continue to trend lower while unit work should trend higher over the next few quarters before starting to fall. 
Meanwhile, the direction of alterations and additions is unclear but there could be some scope for an increase over the coming quarters and years given how much equity some home owners have and the costs associated with moving home.
Residential construction has been a large contributor to economic growth over recent years however, it looks as if it is likely to start detracting from growth as construction activity moves through a peak. 
Housing construction activity has already been fading for a year while unit activity continues to rise however, we anticipate that it too will turn within the next 12 months. With the resources boom and concurrent infrastructure investment boom so important to Australia’s prosperity coming out of the financial crisis as it faded, building activity became extremely important, particularly residential construction activity. 
With the residential construction boom starting to fade we need the next economic driver to rise in order to offset the slowing in building activity. An increase in infrastructure investment would seem to be a prime candidate however, Governments may not be willing to invest the money. The next boom will seemingly need to come from somewhere else; potentially from the education, health and tourism sectors as the lower Australian dollar makes these sectors more globally competitive as well as increased consumption if households start to ease their rate of saving.
 
<div class="sharedaddy sd-sharing-enabled">
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>. </div>
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ckusher-ujnxiKuFQs

The value of construction work done for houses is falling with units likely to follow shortly: Cameron Kusher

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Construction costs in Australia put it the 14th most expensive out of 38 countries surveyed for the latest International Construction Market Survey from Turner &amp; Townsend, with national construction costs expected to rise 2.5 percent on average in 2016 compared to 2.9 percent globally.
Zurich took out first spot with Perth at 18, Melbourne at 20 and Brisbane at 22nd.
Gary Emmett, senior economist for Turner &amp; Townsend comments said since last year’s survey, Australia’s construction costs have only increased a few percent in contrast to other countries where markets are overheated. 
He said to ensure Australian prices stay at reasonable levels, the construction industry must think differently and look for cost savings within the supply chain where the biggest savings and innovation can be found including manufacturing production, design and logistics.
“The industry needs to collaborate with suppliers to look for savings as opposed to traditional adversarial relationships. The use of building information modelling (BIM) will help the industry collaborate to gather data and share plans throughout the lifecycle of an asset to find greater cost saving efficiencies,” he said.
"The costs across Australia’s four major markets show Brisbane increased by 4 per cent in the past 12 months, Sydney hit 3.5 per cent while Perth and Melbourne recorded cost increases of 1 per cent respectively.
“For example, Brisbane and Sydney’s apartment booms have led to the increase in costs in these states. Perth has remained relatively steady due to the mining boom finishing and Melbourne is now experiencing a flat period following a busy apartment boom.
“We are also witnessing increased tender competition which is driving down profit margins.  There is an opportunity now for the industry to look at different delivery and commercial models to improve productivity and margin on projects."
The International Construction Market Survey 2016 analyses input costs uch as labour and materials and charts the average construction cost per sq m for both commercial and residential projects. It can be found <a href="https://turnerandtownsend.cld.bz/icms-16" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Australia's construction costs remain stable

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<div class="column">GUEST OBSERVER </div>
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 The ‘baton pass’ from engineering to residential building is clear for all to see.</div>
<div class="column"> </div>
<div class="column">Engineering work continues to recede while home building has hit new highs. Interestingly the gap between building (residential and commercial) and engineering in terms of total work is the largest in almost for six years. The results are even more staggering when you consider that just over two years ago engineering work surpassed total building by more than $11 billion. The speed of the turnaround has shown up in the patchiness across the national economy and in effect highlights the difficulties faced by policymakers in trying to shore up growth.</div>
<div class="column"> </div>
<div class="column">Interestingly inflation in the building sector seems to be more subdued than in the past year. Granted the annual rate of construction inflation is the fastest in almost five years. But it is largely due to a couple of outsized inflation in the September and December quarters last year. In fact the more sedate 0.5 per cent March quarter inflation reading resonates with the modest consolidation taking place in the housing sector and adds to the lack of inflation across the broader economy. The lack of inflation in the rest of the economy is likely to keep the Reserve Bank focussed on supporting price growth. </div>
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The data is unlikely to alter the Reserve Banks thinking when it comes to rates.
The focus now turns to the March quarter business investment data released tomorrow. And while the Reserve Bank will be particularly interested in estimates of completed non-mining investment, there will be a much greater focus on future spending plans. In the March quarter the first estimate of investment in 2016/17 was just $82.57 billion (weakest result since 2007/08), and 19.5 per cent lower than the first estimate for 2015/16 – marking the largest fall for a first estimate reading in records going back 25 years.
While policymakers will continue to discuss the merits of another rate cut, it really comes down to the inflation outlook. CommSec expects a low inflation result over the June quarter should result in the central bank cutting the cash rate in August.
What do the figures show?
Construction Work
Construction work done fell by 2.6 percent in real (inflation-adjusted) terms in the March quarter after sliding by 2.9 percent in the December quarter. 
Work done is down by 6.7 percent on a year ago. Public sector construction work rose by 2.5 percent in the quarter while private sector activity fell by 3.7 percent. 
Construction work fell in five of the states and territories in the March quarter. Leading the falls was Northern Territory (down 10.2 percent), followed by Western Australia (down 9.3 percent), South Australia (down 3.2 percent), Queensland (down 2.9 percent) and Victoria (down 1 percent). Construction rose in NSW (up 2.6 percent), the ACT (up 2.3 percent) and Tasmania (up 1.9 percent).
Engineering work fell by 4.2 percent in the March quarter. Engineering construction is down by 13.7 percent on a year ago.
Commercial (non-residential) building fell by 5.5 percent in the March quarter to be down 7.2 percent over the year. 
Residential building rose by 1.5 percent in the March quarter and was up by 5.7 percent over the year. Alterations &amp; additions rose by 1.1 percent in the quarter while new residential work rose by 1.5 percent.
The measure of inflation in the construction sector (deflator) rose by 0.5 percent in the March quarter. The annual rate of construction inflation rose from 1.9 percent to 2.3 percent – matching the fastest annual growth rate in almost five years.
Engineering prices rose by 0.6 percent in the quarter (up 1.9 percent over the year) while building prices rose by 0.4 percent in the quarter (2.3 percent over the year).
What is the importance of the economic data?
The Bureau of Statistics releases quarterly estimates of Construction work done. The estimates are based on a survey and cover around 85 per cent of the construction work done in the period. Revised estimates will be released in coming months. The data is useful largely for historical purposes but the work yet to be done estimates provide an early warning signal of future activity. The residential work figures give a good early guide to the strength of residential investment in the national accounts. 
What are the implications for interest rates and investors?
There is plenty of work in the construction sector. But there are winners and losers across states and industry sectors. The Reserve Bank will not be overly concerned with the current trends in construction. Overall activity is correcting as expected and adjusting to the new realities. We expect the Reserve Bank to cut rates once again in August.
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<div class="column"><img src="/images/2016/05/25/Screen%20Shot%202016-05-25%20at%203.58.10%20PM.png" alt=""></div>
<div class="column">Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></div>
</div>
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Construction eases, home building at record highs: CommSec's Savanth Sebastian

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Most of our hidden housemates are harmless. But when it comes to termites, some can literally eat us out of house and home.
While termites' ability to damage our homes by eating wooden foundations is legendary, most species do not cause problems. Usually they are rarely seen, hidden away inside wood, underground or in their nests.
<h2>The importance of termites</h2>
Termites eat cellulose – the complex sugars that plants use to build leaves, stems and trunks. Cellulose is the most abundant organic compound on earth. To find wood and other cellulose sources, termites often construct miniature, private highways under the soil that can radiate more than 50 m from their nests.
Perhaps the most famous termite nests are those made by the magnetic termite, Amitermes meridionalis, in northern Australia. These nests are oriented in a north-south direction. Many other species build mounds of different shapes and sizes, while others nest in wood, underground in the soil, or in trees. 
The combined mass of termites on earth is estimated at 445 million tonnes, putting them in the top ten alongside cattle, krill, ants and humans.
Outside our homes, termites play a critical role as carbon recyclers and are considered keystone species in many tropical ecosystems, such as savannah habitats like those of northern Australia, Africa and South America. They use nutrient-rich saliva and gut excretions to build tunnels, which improves the quality of the soil. Alongside ants, there is evidence that termites increase crop yields.
When winged adult termites emerge from the nest they become a feast for many animals across the tropics.
<h2>Cockroach relatives</h2>
Termites evolved more than 140 million years ago from social cockroaches that burrowed deep into rotting wood. The closest living relatives of termites are cockroaches from the genus Cryptocercus, found only in isolated mountainous areas of China, Korea and North America.
Mum and dad Cryptocercus pair up and burrow into a large log that will be their home (and source of food) for life. Soon after meeting, the female lays a single clutch of 10 or so offspring, which they both feed and look after for around three years – about half the life of a typical Cryptocercus.
As termites evolved, their firstborn offspring began to look after the next clutch of siblings, freeing mum and dad to produce more sons and daughters. The older siblings stayed to build and defend the colony, and feed and look after the young.
The population of a termite colony these days can number in the millions. All the offspring derive from of a single reproductive pair (the queen and king).
Some species have evolved alternative systems. Colonies of the Australian termite Nasutitermes exitiosus often contain up to four unrelated pairs living together with their countless offspring in apparent harmony – a bit like a 1960s hippie commune.
In the Japanese termite Reticulitermes speratus, the king tends to outlive the queen. But the queen produces many half-clones of herself without any genetic input from the king (a form of virgin birth). These clones replace their dead mother, and all mate with the remaining king. In one colony, over 600 of these queen-clones have been found, making it the largest harem known in the animal kingdom.
<h2>One giant organism</h2>
The vast majority of termite offspring within a colony will never reproduce. Instead, these worker and soldier termites remain in a state of suspended development, never becoming adults. Soldier termites attack predators to ensure the survival of the colony and have evolved impressive jaws or snouts that spray toxic chemicals.
In some species like Neocapritermes taracua from South America, workers sacrifice themselves through the use of an “explosive backpack”. They do this by rupturing their skin, which allows normally harmless chemicals to mix and produced modified chemicals that are dangerous to any nearby predators.
All the efforts of the workers and soldiers go towards raising a small proportion of their brothers and sisters to adulthood, usually once a year. This select few will grow wings (all four of which are almost identical, hence the scientific name Isoptera meaning “equal wings”), pair up and promulgate the genes they share with their siblings back home.
<h2>Living with us</h2>
The dark, humid areas under the floor of many Australian houses provide the ideal environment for termites to emerge from the soil and create their covered highways up foundations to a mother lode of wooden frames.
In Australia, about a billion dollars is spent each year on termite control. House-eating termites are most common in the tropical north, although they are found throughout the continent. While there are more than 300 species of termite, only a handful are considered pests.
Most termites are deterred with chemicals and by replacing damaged wood with treated timber.
Their sophisticated social system is also their Achilles heel. Termite baits contain slow-acting chemicals that prevent termites from moulting or disrupt their nervous systems. Workers voraciously feed on the bait and take it back to the colony, where the poison is spread to the queen, king and their new offspring.
But as one colony is killed, another is often ready to take over. Termites have been around a long time and they are not likely to go away any time soon.
Nathan Lo is associate professor, School of Biological Sciences, University of Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/nathan-lo-248026" target="_blank">here</a>.
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Hidden housemates: the termites that eat our homes

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Apartments are being built at a record-breaking pace.
The table below, supplied by CoreLogic RP Data to the BusinessInsider website, contains the top 25 locations for expected apartment completions over the next 24 months.
Dominated by Australia’s most populous states, New South Wales, Victoria and Queensland, CoreLogic RP Data calculates that there’ll be 231,129 new apartments built over the period.
<a href="/images/2016/05/12/Corelogic-RP-data-top-25-locations-for-apartment-completions.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/12/Corelogic-RP-data-top-25-locations-for-apartment-completions.jpg" alt="">
With so much stock coming online at once there is increasing concern as to whether settlement valuations will actually meet the contract price of units in some of these locations.
Cameron Kusher, research analyst at CoreLogic RP Data, suggests that tighter restrictions on investor and overseas buyers from Australian banks could amplify settlement risks.
“Mortgage lenders have recently tightened their lending criteria, subsequently some people who have committed to off-the-plan units may not be able to borrow as much as they could at the time of signing the contract,” says Kusher.
“To compound the situation, three of the four largest banks have announced they will no longer be lending to overseas home buyers which may result in a larger number of contracts not progressing through to settlement, considering a larger proportion of off the plan unit sales are to overseas buyers.”
As a result of these factors and increased supply in some regions, Kusher believes there is a clear risk that some properties may be be worth less than the price they were purchased for off the plan.
{mijopolls 141}
 
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Australia's 25 apartment construction hotspot localities: CoreLogic RP Data

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The housing market in Coffs Harbour, far north New South Wales and Sydney is on the decline, according to valuation firm Herron Todd White.
HTW state east coast NSW is largely holding a steady trend in rental vacancy and the volume of house sales, but house sale volumes are beginning their fall in Sydney. 
New house construction is ramping up in Canberra.
<a href="/images/2016/05/09/Screen%20Shot%202016-05-09%20at%202.15.21%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/09/Screen%20Shot%202016-05-09%20at%202.15.21%20PM.png" alt="">
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Coffs Harbour, Sydney houses in price decline: HTW

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Stockland has reported positive results across its business.
Its CEO, Mark Steinert said all of its core businesses continue to make such strong contributions.
“We’ve maintained high sales volumes across our residential business.”
Stockland’s residential business secured 1,706 net deposits in the quarter, with new projects and new townhouse sales helping to generate 279 more sales than the corresponding period in FY15.
<a href="/images/2016/04/28/Screen%20Shot%202016-04-28%20at%2010.34.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/28/Screen%20Shot%202016-04-28%20at%2010.34.29%20AM.png" alt="">
Stockland is on track to achieve full year settlements slightly above its target range of 5,000 – 6,000 lots.
“In residential, we’ve seen strong market conditions continue in New South Wales; Queensland is strengthening, generating good demand and strong sales on our new projects; Victoria remains robust and we had a good response to the campaign we ran in Western Australia,” Mr Steinert said.
“Around 90 percent of our residential capital is now employed in projects where sales are underway, up from 60 percent two years ago.
"We’re progressing well with all of the new projects we’ve launched over the last six months.
"We are actively selling lots at Aura and Newport in south east Queensland; Altrove in north west Sydney and we will soon commence sales at Pallara, south west of Brisbane.”
For more information on Altrove, <a href="https://www.stockland.com.au/residential/nsw/altrove-living-at-altrove.aspx" target="_blank">click here</a>.
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Stockland lots selling well at Altrove in north west Sydney

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SPONSORED POST
The benefits of living in a sustainable home include a more attractive and healthier environment, and lower costs through savings on energy and water bills.
But encouraging sustainability in the residential building sector has presented challenges.
“The residential sector is in some ways more complex than any other sector in that there are an incredible number of private owners, a pretty average National Construction Code, and huge gaps in knowledge both of residents and house builders,” says Vice-Chair of the Board for the Living Future Institute of Australia, Stephen Choi.
“Housing in general – and particularly our existing homes – is one of the most important and to some extent, ‘untouched’ areas of the built environment when it comes to providing better places to live.”
Despite the barriers, Choi is encouraged by progress in areas such as the ‘fabric first’ approach, which aims to maximise the performance of the components that make up the building fabric itself. Passivhaus is an energy performance standard that uses this approach to set targets for the thermal performance of buildings, including homes.
About 30,000 buildings worldwide have been constructed to the Passivhaus standard. The standard encourages the use of insulation, passive solar design, making a property airtight to minimise unwanted heat loss or gain, and good indoor air quality provided by mechanical ventilation and heat recovery systems.
A home’s thermal performance has a major effect on its energy consumption.
About 40 percent of household energy is used for heating and cooling, according to the Australian Government’s Your Home website.
“This rate could be cut to almost zero in new housing through sound climate responsive design,” the website says.
Energy and water saving measures that reduce utility costs are popular in residential properties but beyond the cost savings it has been difficult to engage consumers’ interests in sustainable development, says Frasers Property Australia’s general manager of sustainability Paolo Bevilacqua.
As such, sustainability in residential developments has tended to focus on initiatives outside of individual apartments or houses.
The residential buildings at Central Park in Sydney share energy and air conditioning facilities rather than each building having its own facility, for
instance. This allows for a more efficient system overall. Residential developments are increasingly providing access to public transport, cycle paths and pedestrian footpaths to ensure residents aren’t restricted to travelling by car.
Some developments include fitness facilities, swimming pools and walking trails to promote residents’ health. Similarly, parks and gardens, including roof top and vertical gardens where space is limited, are becoming more common.
Bevilacqua says the green walls at One Central Park is one example of how green elements can be successfully introduced into an urban development.
“From a visual point of view it has benefits for people living in those buildings. It’s a beautiful outlook and improves air quality,” he says.
Better air purification, access to day light and lighting that works with people’s circadian rhythms are priorities gaining traction in residential developments as people begin to understand the impact on their health and wellbeing, Bevilacqua says.
For more information, download our eBook <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/52152-australia-aspires-to-global-green-leadership-the-living-building-challenge" target="_blank">here</a>. 
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What are the future trends in sustainable residential development?

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<div>It looks as though 2016 is shaping up to be a year within which the residential construction boom, which has mostly served the demands of foreign investors, begins to tail off.</div>
<div> </div>
<div>We should never read too much into the results of one month, of course, but reflecting trends that have already been reported by Housing Industry Association (HIA) finance for the purchase of new dwellings fell by more than 15 percent in February.</div>
<a href="/images/2016/04/13/A5.jpg" target="_blank">Click to enlarge</a>
<div class="separator"><img src="/images/2016/04/13/A5.jpg" alt=""></div>
<div class="separator"> </div>
<div>Although it is not yet much reflected in the rolling annual data below, finance for the construction of new dwellings also ticked back by -1.9 per cent in February.</div>
<div> </div>
<div>It may or may not be too early to call the peak on finance for dwelling construction after a very solid run through this cycle, but market releases suggest that building approvals are now on a downslope, and construction will probably follow suit in time too.</div>
<a href="/images/2016/04/13/A11.jpg" target="_blank">Click to enlarge</a> <img src="/images/2016/04/13/A11.jpg" alt="">
<div>Market shifting away from investors</div>
<div> </div>
<div>Figures showed investor lending steadying at around a seasonally adjusted $11.9 billion, which is still a historically high figure, but some way down from the August 2015 peak.</div>
<div> </div>
<div>A quick glance at the chart for loans outstanding shows how banks and lenders have shifted their focus in favour of home loans, a direct response to APRA's regulatory intervention.</div>
<a href="/images/2016/04/13/A6.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/13/A6.jpg" alt="">
 
<div>We know that there remain blurred lines between investor and home loans, but the February data shows that overall the balance has tilted back in favour of owner-occupier finance ($21 billion) over investment housing finance ($11.9 billion).</div>
<div> </div>
<div>Overall, 2016 looks likely to be a steadier year for property markets, as investors are limited in their borrowing capacity. It's worth remembering that owner-occupiers represent a greater share of the market, and as such have the potential to push prices up in the areas in which they are buying (think middle-ring suburbs, catchments for good schools, good transport links, appealing shopping and lifestyle locations). Investors should now begin to account for about one third of the market, which is much more in line with historical averages.</div>
<div> </div>
<div>With returns from fixed interest accounts so low and mortgage repayments much lower than they were, many in the home ownership sector will look to improve the value of their own homes, or look to acquire renovation projects.</div>
<div> </div>
<div>Indeed major renovations activity is now at long last trending up in all three of the most populous states, with Sydney leading the way by a margin. Renovation activity is presently less popular in Melbourne, with considerably more modern housing available following a strong decade of construction and dwelling supply.</div>
<a href="/images/2016/04/13/A10.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/13/A10.jpg" alt="">
 
<div>First homebuyers subdued</div>
<div> </div>
<div>While 2016 looks set to be the year of the homebuyer, much of the activity is being driven by refinancing and existing home-owning folk looking to trade up or down, rather than by new market entrants.</div>
<div> </div>
<div>Even if the ABS data is not quite complete or accurate, it seems fair to surmise that the share of dwellings financed by first homebuyers is tracking some way below the long run averages.</div>
<div class="separator"><a href="/images/2016/04/13/A9.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/13/A9.jpg" alt=""></div>
 The wrap 
<div>2016 therefore seems likely to be a year wherein markets are increasingly moved by homebuyers ahead of investors.</div>
<div> </div>
<div>It is worth reiterating here that in part due to high transaction costs, whether bought as a home or a pure investment, property works best as a long term play.</div>
<div> </div>
<div>The internet and financial media is largely - though, of course, not absolutely - a fusion of noise, short-termism, misinformation and guesswork when it comes to property market commentary. You only need to look back to 2012 for some classic examples of that. In my opinion there is very little value in comparing returns with the share market over a one or two year timeframe. Each asset class has its merits and place in a portfolio, but generally speaking property needs at least a ten year time horizon in order to justify the transaction costs.  The data yesterday confirmed that home loan activity levels - although not necessarily aggregate mortgage values - are rising solidly in Queensland, and this is readily visible in some of the family-friendly middle ring suburbs of Brisbane. Investor hubs are considerably patchier, and many of the resources regions are an absolute disaster zone.  A final point of interest for today is that markets had increasingly been lining up bets for an interest rate cut as soon as May, though I personally didn't like the odds of that happening.  I don't spend hours deliberating over monetary policy wording, but clearly the Reserve Bank (RBA) noted in its most recent decision release that "continued low inflation would allow scope for easier policy, should that be appropriate...". There are probably three things that would need to be in place for an interest rate cut, being a cooling of property investor lending (tentative tick), confirmation that hiring is weakening, and evidently confirmation of continued low inflation.  The Labour Force figures for March are due out on Thursday, and the market consensus sees a fairly moderate result as likely, with some clear risks to the unemployment rate reading, while the March inflation data is due out towards the end of the month. There's a bit of water to flow under the bridge between now and then, but a nice bump in key commodity prices overnight and an incredibly strong result from NAB's Business Survey really don't point towards a rate cut at this stage.  A cracking NAB survey showed a surge in business conditions at their highest level in fully eight years since 2008, and while the employment gauge jumped to a five year high. Business conditions are now showing a reading of +12, absolutely miles above the long run average of +5, and capacity utilisation has improved strongly (I do note here, though, that the outlook for mining remains dire).  The RBA has arguably been a reluctant cutter through this cycle, so I reckon that rules out a May cut. In fact, interest rates could be on hold for as far as the eye can see.  As ever, happy to be proven wrong on that, though.</div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
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