<p>Fresh off completing Pienza Neutral Bay, developer <a href="https://www.apartments.com.au/developers/central-element">Central Element</a> is preparing its next move in the coveted Lower North Shore suburb.&nbsp;</p>

<p>Central Element (CE) has lodged plans for an eight-storey apartment building at <a href="https://www.apartments.com.au/new-apartments/54-64-barry-street-neutral-bay-nsw-2089">54–64 Barry Street</a>, a 1,659 sqm site just south of Military Road and the Neutral Bay town centre.</p>

<p>The $52 million development will involve the demolition of four detached homes across four lots to deliver 45 apartments, including eight affordable housing units to be managed by Bridge Housing. The mix will comprise six one-bedroom apartments, 24 two-beds, and 15 three-beds. The apartments will sit above three basement levels with 62 car parking spaces and 50 bicycle spaces.</p>

<p><a href="https://www.apartments.com.au/architects/mhn-design-union">MHN Design Union</a> (MHNDU) has returned as architect following its work on Pienza, again shaping a mid-rise form with a clear street presence. The design features a lower four-storey podium element that responds to surrounding context, with upper levels recessed to reduce perceived bulk. Communal open space is proposed both at ground level and on the rooftop, the latter including an outdoor kitchen and swimming pool.</p>

<p>“The building has been designed with a lower four-storey element and with building materials commensurate with the character of the area,” Beam Planning noted in its submission to the North Sydney Council.</p>

<p><img alt="Barry Street, Neutral Bay Nsw 2089" data-entity-type="file" data-entity-uuid="3a28ab3a-b8ba-4476-81cd-e4a8bb84f3a7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Barry-Street-Neutral-Bay-1327x742.png?VersionId=hlgvxszAWXIHgHtdR5HiwIKiSli2lLZV" /></p>

<p>Bridge Housing will manage the affordable units for a period of 15 years, as required under the Housing SEPP’s incentive provisions.</p>

<p>MHNDU’s design report further highlights the site's strategic location just 250 metres from key bus stops and 1.3 kilometres from North Sydney CBD, positioning it for transit-accessible housing supply. In their planning justification, the design team emphasised the site’s compatibility with emerging local character and scale.</p>

<p>Central Element has a solid apartment pipeline spread all over Sydney. They recently completed&nbsp;Pienza, 37 apartments just 500 metres away from the new project, and are currently building Ethos Chatswood, Ballamac House in Coogee, and Bianca on the harbour in Drummoyne.</p>

<p>They have plans for future projects in Mosman, Bondi Beach, Greenwich, Lavender Bay, along with a tower on the edge of Hyde Park.</p>


Joel Robinson

First look: Central Element unveils second Neutral Bay apartment project

<p>Real estate investment fund Wentworth Wentworth Equities is soon to launch a "Los Angeles-inspired" residential, leisure and lifestyle precinct in Brisbane’s Hamilton riverside ahead of the predicted Olympic-led population explosion for the city.</p>

<p>Drawing its style inspiration and name from Los Angeles’ renowned The Grove, <a href="https://www.apartments.com.au/new-apartments/hamilton-grove-19-hercules-street-hamilton-qld-4007">Hamilton Grove</a> will feature three residential towers and a vibrant street-level public precinct with curated luxury lifestyle, retail and dining offerings.</p>

<p>The first of the three towers, to launch in March 2026, will comprise 61 apartments, in the same building as a premium hotel.<img alt="Hamilton Grove" data-entity-type="file" data-entity-uuid="d227fe61-8392-45b7-b386-9133f29a249f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-19%20at%209.10.56%E2%80%AFAM.png?VersionId=HTCV35HZ4h84jQCmHwhsdIPN0ctO5d7Z" /></p>

<p>Wentworth Equities Executive Chairman Sameh Ibrahim said the precinct will be unique in its appeal to both residents and the wider community.</p>

<p>“Hamilton is already one of Brisbane’s most sought-after riverside suburbs and for good reason,” Ibrahim said.</p>

<p>“Where else in the world can you walk out of your front door and have everything you could possibly need at your fingertips? The city is just around the corner, the airport is only ten minutes away, you have the river and green spaces right there and premium retail and dining on your doorstep."</p>

<p>Wentworth Equities acquired the 7637 sqm Hercules St site in 2014, when Ibrahim said he had a "very clear vision" for the precinct, but ultimately it wasn't the right time to develop. He said Hamilton was still very much an "emerging precinct."</p>

<p>“Since then, Hamilton and surrounding suburbs like Ascot and Albion have significantly grown and matured into a precinct that aligns with our vision for Hamilton Grove. Brisbane as a whole has so much to offer in the way of lifestyle appeal, but as it stands it is so widespread – you go to Howard Smith Wharves for fine dining, you go to James Street for shopping, you go to West End to walk along the river – but what if you could go to Hamilton Grove for everything?</p>

<p>“Our vision is a precinct that brings together the best of Brisbane into one central space abundant with culture, class and culinary experience – a place that a lucky few will get to call home, but the rest of Brisbane still get to explore and experience at their leisure.”</p>

<p><img alt="Hamilton Grove" data-entity-type="file" data-entity-uuid="46550990-8aeb-44d4-bb47-150cdca96529" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-19%20at%209.10.50%E2%80%AFAM.png?VersionId=bmCkApPKY_Bj3z02Q8vI7Kyo_caJXOnv" /></p>

<p>Experienced civil engineering contractor Mainland Civil has been appointed to commence early works for the project, adding Hamilton Grove to their extensive portfolio where it will join other iconic Brisbane developments including Queens Wharf, 300 George Street, Infinity Tower and 1 William Street.</p>

<p>Construction on Tower One is scheduled to commence in early 2026 with completion expected in late 2028.</p>

<p><strong>Fast Facts</strong><br />
<br />
• Three residential towers and a vibrant street-level public precinct with curated luxury lifestyle, retail and dining offerings.<br />
• Construction on Tower One is expected to commence in Quarter One 2026, with completion expected in late 2028.<br />
• 7,637 square metre site at 19 Hercules St, Hamilton (part of Economic Development Queensland’s 304 hectare Northshore Hamilton Priority Development Area).<br />
• 61 waterfront residences and skyhomes in the first tower, ranging from two to five bedrooms.<br />
• Hamiton Grove will be officially launched in March 2026.</p>


"LA-inspired" Hamilton Grove to launch on Brisbane riverside

<p>There’s a quiet patch of <a href="https://www.apartments.com.au/developments/hawthorn-vic-3122">Hawthorn</a>, between the bustle of Glenferrie Road and the curve of the Yarra, that rarely sees change, and even more rarely, new apartments. But that’s exactly where <a href="https://www.apartments.com.au/developers/pomeroy-pacific-quattro-corp">PQD</a> is planting Kooyongkoot: a deliberate, 18-residence answer to the question of what downsizers actually want.</p>

<p>“This is something this pocket of Hawthorn has never seen before,” says Fil Gacesa, head of sales at PQD. “<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a> will deliver just 18 large-scale apartments in the heart of Hawthorn. It is the true definition of resort-style living.”</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/59D7VxzltmM?si=1iCzRD7FRneKryfv" title="YouTube video player" width="560"></iframe></p>

<p>That scale is central to the story. It’s what allows for two dedicated lift cores, short corridors, and a generous lightcourt that draws natural ventilation and sunlight into every residence. It’s also what makes room for the sort of amenity usually confined to high-density towers: a fully equipped wellness centre with infrared and traditional saunas, yoga and pilates studio, cold therapy shower, and treatment room. There’s a golf simulator, car and dog wash stations, and extensive storage too, not bolted on, but baked in from the start.</p>

<p>But more than the checklist, it’s the design intent that carries weight. “This project has been many years in the making,” says Mark Pomeroy, Director of PQD. “Not just in planning, but in listening, to what our buyers and the local community are looking for”.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355289]</p>

<p>That listening shows up in the materials, oak floors, natural stone, V-ZUG appliances, and in how space is handled. Penthouses feature private rooftop terraces with pools. Terraces and garden residences embrace outdoor connection. Inside, the layouts skew large and open, geared for hosting, not just housing.</p>

<p>Architecturally, <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>’s approach is grounded. There’s no reaching for spectacle here. Instead, the building offers a sculptural calm, anchored by landscaping from Eckersley Garden Architecture.&nbsp;</p>

<p>“We wanted to create spaces that feel expansive, serene, and meaningfully connected to daily life,” said founding partner Chris Stribley elsewhere.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355304]</p>

<p>That sentiment, calm, connection, echoes in the location itself. Kooyongkoot sits just a short stroll from Central Gardens, Fairview Park, and the Rivoli Cinema. Tram lines and schools are close, but the street is tucked, quiet, and leaf-lined.&nbsp;</p>

<p>“Residents of Kooyongkoot will be a short stroll from Fairview Park, Central Gardens, and the Glenferrie Road retail strip," Gacesa notes, "but you're also cocooned in this peaceful pocket behind extensive landscaping by Eckersley Garden Architecture.”</p>

<p>Kooyongkoot is set for completion in late 2026.</p>

<p>[smartcode_project_cta:default project_id=102717]</p>


Staff Writer

The project that said no to compromise: Inside Kooyongkoot, Hawthorn

<p>When long-time Ivanhoe locals Graeme and Catherine, decided it was time to downsize, they weren’t necessarily in a rush.&nbsp;</p>

<p>Like many in their stage of life, they had started thinking about apartment living, but anticipated making the shift in two to three years.</p>

<p>That timeline changed when they visited <a href="https://www.urban.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe">Candela</a>, a new boutique development by <a href="https://www.urban.com.au/developers/salter-brothers">Salter Brothers</a>. The project ticked all the boxes they were looking for: location, quality design, and long-term lifestyle benefits, which prompted them to bring their decision forward.</p>

<p>“It was the right place at the right time,” they said. “We knew immediately it ticked all the boxes, and we didn’t want to wait.”</p>

<p>[smartcode_project:default project_id=342 project_image_fid=358855]</p>

<p>Their decision to downsize was driven by a combination of practical needs and lifestyle considerations. Their existing home, while much loved, had become increasingly difficult to maintain. It spanned multiple levels, included extensive front and back gardens, and was starting to show the wear that comes with age.&nbsp;</p>

<p>They were looking for a more manageable lifestyle, one with less upkeep and more freedom. A brand-new apartment with no maintenance requirements and the ability to simply “lock up and leave” gave them peace of mind and a greater sense of control over their future.</p>

<p>Financially, the purchase made sense as well. The available stamp duty savings, strong price-to-value offering, and timing of the settlement suited their plans, making the transition smoother and more cost-effective. The apartment's design and inclusions further supported their choice.</p>

<p>[smartcode_project:default project_id=342 project_image_fid=357493]</p>

<p>The layout was both functional and flexible: three bedrooms, a butler’s pantry, a separate laundry, and a large open-plan living area. It gave them the freedom to host a family, accommodate guests, or set up a home office. The expansive balcony and elevated views added to the appeal, providing a sense of openness and connection to the outdoors.</p>

<p>“It just had a really good flow,” Catherine noted, something they found lacking in many other apartments they’d considered, particularly in the established market.</p>

<p>Candela’s boutique scale was another deciding factor. With a smaller number of residences and a top-floor penthouse position, the couple felt the development offered the privacy and space they were looking for, without feeling isolated.</p>

<p>“We liked that it wasn’t a huge development. It felt well-balanced, modern but still with a sense of community, not overwhelming,” they said.</p>

<p>[smartcode_project:default project_id=342 project_image_fid=357508]</p>

<p>Equally important was the ability to remain in Ivanhoe, a suburb they know well and have deep roots in. After 46 years in the area, proximity to local parks, shops, and familiar faces mattered just as much as the apartment itself.</p>

<p>“We didn’t want to give up the community we’ve known for decades. Candela allowed us to upgrade our lifestyle while staying in the place we call home.”</p>

<p>With a Walk Score of 90, the village location supports a convenient, connected lifestyle. <a href="https://www.apartments.com.au/developments/ivanhoe-vic-3079">Ivanhoe</a> Station is just a eight-minute walk away, and the neighbourhood offers access to parks, cafes, restaurants, and schools along Upper Heidelberg Road, all within easy reach.</p>

<p>Beyond the apartment, the couple also saw value in the broader vision for Candela, one that integrates residential living with public spaces and local amenities.&nbsp;</p>

<p>The development introduces 58 new apartments as well as a mix of commercial and social spaces that integrate contemporary architecture with the suburb’s existing character.&nbsp;</p>

<p>At ground level, residents will find a charming café and a lifestyle wellness centre, perfect for unwinding and rejuvenating. Meanwhile, the rooftop garden offers a stunning vantage point for residents to enjoy breathtaking sunsets, host gatherings, or enjoy barbecues with family and friends. It's not just a place to live; it's a vibrant community where every moment is an opportunity to connect and create lasting memories.</p>

<p>[smartcode_project_cta:default project_id=342]</p>


Why Ivanhoe locals are choosing to downsize to Candela

<p>Mark and Roy Makari are expanding their presence in Sydney’s South West with a second major proposal for Leppington, this time envisioning a 900-dwelling mixed-use development just 850 metres from their previously lodged tower trio on Fifth Avenue.</p>

<p>Project management and construction management firm Creative Vision filed the plans for the&nbsp;multi-building project at <a href="https://www.apartments.com.au/new-apartments/230-rickard-road-leppington-nsw-2179">230 Rickard Road, Leppington</a>. The proposal seeks to establish a new focal point for the precinct through a high-density, transit-oriented development supported by diverse land uses.</p>

<p>According to the Scoping Report prepared for the Department of Planning, the scheme includes around 900 apartments across multiple towers, including 135 dwellings designated for affordable housing. A mix of market and subsidised apartments will be supported by ground-level activation through retail and office space, a childcare centre, and a hotel, forming a comprehensive urban precinct.</p>

<p><img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="34797362-f3dc-4d84-8235-2657fc5f3bde" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Plan.png?VersionId=Uzckrz9tUpDQl5lX1_WMhjnv16bsr8wG" /></p>

<p>The Design Report by <a href="https://www.apartments.com.au/architects/studiosc-0">Studio SC</a> notes that the project “intends to deliver a high-quality, high-density built form that supports the vision for the Leppington Town Centre, integrating mixed-use outcomes and public domain upgrades.” The development is expected to be delivered in stages, although a precise timeline is yet to be confirmed.</p>

<p>The project will be assessed through a future State Significant Development Application, with the Scoping Report indicating the team will seek design excellence via a competitive process or through an expert design review panel. Early massing diagrams suggest a series of mid- to high-rise buildings framing a central landscaped spine, with emphasis on pedestrian permeability and public space.</p>

<p>The planning documentation flags a strong sustainability agenda, stating that the development will “respond to the urban heat island effect, incorporate water sensitive urban design, and prioritise active transport”.</p>

<p><img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="369d7b54-1279-4cde-88ec-dcb215594414" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Podium_1.png?VersionId=QArL7B2kkLt63vl5xvL0FNV_ardAlez4" /></p>

<p>The proposal follows in the footsteps of the Makaris’ nearby Fifth Avenue site, where they’ve submitted plans for three towers comprising nearly 500 apartments, with 10 per cent dedicated to affordable housing. That project features commercial podiums, a childcare centre, and a new public park that would occupy more than a third of the site.</p>

<p>Both developments are situated within walking distance of Leppington Train Station and fall under strategic precinct plans promoting higher density housing. The town centre is undergoing substantial transformation, driven by state government planning reforms aimed at fast-tracking housing delivery.</p>

<p>Together, the two projects represent a combined ambition of nearly 1,400 new homes across just under two kilometres of central Leppington.</p>


First look: 900-home mixed-use precinct planned for Leppington

Retail Trade

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<div id="post-body-2519359441485115611" class="post-body entry-content">
<div>Given the weak state of other sectors of the economy, the Retail Trade figures for the month and the June quarter took on an added significance.</div>
<div> </div>
<div>In this context, especially given soft wages and slowing population growth, the June data was happily very good.</div>
<div> </div>
<div>In seasonally adjusted terms retail turnover was up by 0.7 per cent for the month leading to a strong annual result to June 2015 as charted below.</div>
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<div><a href="https://2.bp.blogspot.com/-rivhiKoFaUo/VcHqnRk1RpI/AAAAAAAAXXg/LMg9AYRe9MU/s1600/RT1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><a href="https://2.bp.blogspot.com/-rivhiKoFaUo/VcHqnRk1RpI/AAAAAAAAXXg/LMg9AYRe9MU/s1600/RT1.jpg"><img src="https://2.bp.blogspot.com/-rivhiKoFaUo/VcHqnRk1RpI/AAAAAAAAXXg/LMg9AYRe9MU/s640/RT1.jpg" width="640" height="272"></a></div>
<br><strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>At the state level the impact of Sydney's housing boom and to a lesser extent that of Melbourne is evident with retail turnover rising very strongly in New South Wales and Victoria.</div>
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<div><a href="https://4.bp.blogspot.com/-shpWGnWcZqo/VcHqoDxbUTI/AAAAAAAAXXw/BQGk6eE1D-Q/s1600/rt2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><a href="https://4.bp.blogspot.com/-shpWGnWcZqo/VcHqoDxbUTI/AAAAAAAAXXw/BQGk6eE1D-Q/s1600/rt2.jpg"><img src="https://4.bp.blogspot.com/-shpWGnWcZqo/VcHqoDxbUTI/AAAAAAAAXXw/BQGk6eE1D-Q/s640/rt2.jpg" width="640" height="270"></a></div>
<br><div>Perhaps more surprisingly, in turnover terms retail appears to have fired up a little elsewhere too, particularly in South Australia. </div>
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<div><a href="https://2.bp.blogspot.com/-KN4Bjh9HqmY/VcHqoHUFBvI/AAAAAAAAXXs/GoRQd1PsoJk/s1600/rt3.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><a href="https://2.bp.blogspot.com/-KN4Bjh9HqmY/VcHqoHUFBvI/AAAAAAAAXXs/GoRQd1PsoJk/s1600/rt3.jpg"><img src="https://2.bp.blogspot.com/-KN4Bjh9HqmY/VcHqoHUFBvI/AAAAAAAAXXs/GoRQd1PsoJk/s640/rt3.jpg" width="640" height="272"></a></div>
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<strong><span style="text-decoration: underline;">Industry groups</span></strong><br><div class="separator"> </div>
<div class="separator">It has been a relatively poor time for department stores retailing, perhaps reflective of increasing demand in the online shopping space.</div>
<div class="separator"> </div>
<div class="separator">The big winner over the past year has been household goods with retail turnover pumped up by the housing prices and construction boom.</div>
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<div class="separator"><a href="https://3.bp.blogspot.com/-GEggBGfpMgY/VcHqnWJRVaI/AAAAAAAAXXc/wTRwGxQsAHg/s1600/Rt5.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><a href="https://3.bp.blogspot.com/-GEggBGfpMgY/VcHqnWJRVaI/AAAAAAAAXXc/wTRwGxQsAHg/s1600/Rt5.jpg"><img src="https://3.bp.blogspot.com/-GEggBGfpMgY/VcHqnWJRVaI/AAAAAAAAXXc/wTRwGxQsAHg/s640/Rt5.jpg" width="640" height="270"></a></div>
<br><div>
<span><span>Cafés</span>, restaurants </span>and takeaway expenditure has also continued to rise relentlessly over the past year, a trend which has been ongoing over the past decade, another shift which feeds off increased apartment dwelling.</div>
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<div class="post-body entry-content"><a href="https://2.bp.blogspot.com/-YJLrK-Q2toQ/VcHqnU2X9ZI/AAAAAAAAXXk/X8z5SQvVElQ/s1600/Rt6.jpg" target="_blank">Click to enlarge</a></div>
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<br><div class="separator"><a href="https://2.bp.blogspot.com/-YJLrK-Q2toQ/VcHqnU2X9ZI/AAAAAAAAXXk/X8z5SQvVElQ/s1600/Rt6.jpg"><img src="https://2.bp.blogspot.com/-YJLrK-Q2toQ/VcHqnU2X9ZI/AAAAAAAAXXk/X8z5SQvVElQ/s640/Rt6.jpg" width="640" height="280"></a></div>
<br><strong><span style="text-decoration: underline;">National accounts for Q2</span></strong><br><br><div>With June being the last month of the second quarter we also got the turnover figures reported in volume terms, which threw out an excellent result.</div>
<br><div>Retail volumes doubled market expectations to be up by 0.8 per cent for the quarter and 3.6 per cent for the year. </div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-1ZDz1D5_n4Q/VcHqoYIc3SI/AAAAAAAAXX0/4srRCHtdALo/s1600/rt4.jpg" target="_blank">Click to enlarge</a></div>
<br><a href="https://1.bp.blogspot.com/-1ZDz1D5_n4Q/VcHqoYIc3SI/AAAAAAAAXX0/4srRCHtdALo/s1600/rt4.jpg"><img src="https://1.bp.blogspot.com/-1ZDz1D5_n4Q/VcHqoYIc3SI/AAAAAAAAXX0/4srRCHtdALo/s640/rt4.jpg" width="640" height="286"></a><br><br><div>I used to do a chart here on quarterly volumes at the state level, but to be frank it's a Sunday morning and believe it or not I actually have better things to do!</div>
<div> </div>
<div>Suffice to say that New South Wales (+4.6 per cent) and Victoria (+4.4 per cent) have been the retail trade linchpins over the year to June 2015.</div>
<br>This is a very notable result given that net exports (which have contributed significantly to GDP over the past year) will evidently not been doing so in the second quarter.<br><br>I looked at how Australia racked up a record trade deficit for the second quarter in a little more detail here.<br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><div> </div>
<div>Overall this was a really good result for retail trade in the second quarter.</div>
<div> </div>
<div>And although the retail trade data is not necessarily representative of all household consumption this suggests that GDP for the second quarter will be held up by the strong capital city economies.</div>
<div> </div>
<div>Lately various surveys have hinted at gradually improving business conditions and confidence - and jobs growth has been strong over the past year at +233,600, particularly so in Sydney.</div>
<div> </div>
<div>On the other hand capital expenditure surveys have pointed towards very weak business investment.</div>
<div>
<br>In that context, it is important that household consumption continues to produce sound results.</div>
<div> </div>
<div>The other contributor to a surprisingly upbeat GDP print in the first quarter (ex-inventories) was that of new housing, with the dwelling construction boom expected to continue over the next couple of years.</div>
<div> </div>
<div><a href="https://3.bp.blogspot.com/-y0n0iSGst2w/VW7aRC8nfwI/AAAAAAAAV1A/jrn7C21AbNY/s640/gdp6.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="https://3.bp.blogspot.com/-y0n0iSGst2w/VW7aRC8nfwI/AAAAAAAAV1A/jrn7C21AbNY/s640/gdp6.jpg" width="640" height="275"></div>
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<div>
<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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pwargent-M4siyDbqQY

Housing construction helps retail remain robust: Pete Wargent

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<p><span>A decent result for Retail Trade, which increased by 0.4% to a fresh high of $24.77 billion in November. Trend retail trade has increased nicely from $21.7 billion at the end of 2012 to $24.7 billion.</span></p>
<p><span>Over the past 18 months total industry retail turnover has declined only once, in July last year. </span></p>
<p><a href="/images/2016/01/12/RT1.jpg" target="_blank" style="line-height: 1.3em;">Click to enlarge</a></p>
<p><span><img src="/images/2016/01/12/RT1.jpg" alt=""> </span></p>
<p><span><span>Year-on-year retail turnover growth improved to 4.3%, which is well ahead of the 5 year average of 3.4%.</span></span></p>
<p> </p>
<p><a href="/images/2016/01/12/RT2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/01/12/RT2.jpg" alt=""></p>
<p><strong><span style="text-decoration: underline;">State versus state</span></strong></p>
<p><span style="line-height: 1.3em;">The long run data suggests that retail activity has largely followed house price growth, implying in turn that the economy probably needs dwelling prices to continue rising if household consumption is not to stall.</span></p>
<p><a href="/images/2016/01/12/RT3.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2016/01/12/RT3.jpg" alt=""></span></p>
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<div>Looking at the year-on-year figures suggests that retailers in New South Wales (+4.7 per cent) and Victoria (+6.0 per cent) have been the major beneficiaries of the "wealth effect" of rising house prices.</div>
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<div>Slower growth has been experienced in South Australia, Western Australia, and particularly the Northern Territory, as mining construction activity tails off.</div>
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<div><strong><span style="text-decoration: underline;">Industry groups</span></strong></div>
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<div>Over the long run much of the growth in retail turnover has been accounted for by consumables.<br><br>Although household goods retail has picked up strongly of late, department stores have struggled to main market share as online retail has taken hold.</div>
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<span>All industry groups have seen solid growth in retail turnover over the past year, with house price growth making its impact felt here too.</span><br><br><span>Household goods retail turnover has led the way for some time now, with an impressive 6.6 per cent growth over the year to November.</span><br><br><span>Perhaps surprisingly the slowest annual growth was seen in the food retailing space, while department stores saw turnover slip in the month of November.</span>
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<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><div>Overall, a reasonable result that was in line with expectations, but one which suggested that for retail turnover to keep picking up from this level either house prices need to keep rising, or the household savings ratio will need to decline. </div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Australian retail trade trending up nicely: Pete Wargent

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<div>Retail trade turnover missed expectations in rising by a seasonally adjusted 0.2 percent to $25.66 billion, although this was the first miss in four months and came off the back of a 0.5 percent gain in October. </div>
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<br><div>The annual rate of turnover growth has eased back to 3.3 percent, comfortably below the half decade average. </div>
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<div><strong><span style="text-decoration: underline;">Around the traps</span></strong></div>
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<div>There were decent gains in November in New South Wales and Victoria, but not much to write home about elsewhere. </div>
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<br><div>The Australian Capital Territory has long been the leader in annual retail turnover growth since the opening of the Canberra IKEA, with New South Wales slotting into second spot, but growth has stalled in Western Australia. </div>
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<br><div><strong><span style="text-decoration: underline;">Smashed avo rally over?</span></strong></div>
<br><div>The best performing sector this month was 'threads 'n' treads' - clothing and footwear - and the worst, surprisingly enough, was eating out!</div>
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<br><div>Still, I wouldn't read too much into one month of figures - the trend figures show a 14.21 per cent share of total retail accounted for by takeaway food and eating out. It's never been higher. </div>
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<div>A somewhat underwhelming result for retail trade this month, though when spending on services are included Commsec estimated that spending was galloping along at its fastest level since the financial crisis. </div>
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<div class="post-footer"><em><span>PETE WARGENT </span>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>. </em></div>
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Retail trade consolidates: Pete Wargent

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<p><span style="line-height: 1.3em;">The Retail Trade figures for March did a little better than expectations in rising by 0.4 percent in seasonally adjusted terms. </span></p>
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<br><div>Despite the reasonable monthly result, year-on-year growth has slowed to be a bit below the 5-year average. </div>
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<br><strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>The strong housing markets in Sydney and Melbourne have generally supported household consumption since 2013.</div>
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<br><div>At the state level retail turnover growth has been led through the cycle by New South Wales and Victoria, but now there is some evidence that other states are beginning to shine. </div>
<br><div>Since a new IKEA was opened in sleepy Canberra in November, the ACT has shot the lights out to lead annual retail turnover growth by a wide margin. </div>
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<br><div><strong><span style="text-decoration: underline;">Industry groups</span></strong></div>
<div> </div>
<div>The best industry performers in the month were clothing and footwear (+1.1 per cent) and food (posting +0.6 per cent rebound after some soft readings). </div>
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<img src="/images/2016/05/10/B7.jpg" alt=""><br><br><div>Year-on-year household goods remains the strongest performing industry. However, even here the annual rate of growth in household goods retail has cooled a little in sympathy with the cooling of house price growth.</div>
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<strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><div>Overall, the monthly result was solid enough. </div>
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<div>Given that March is also a quarter-end, the Q1 retail results in chain volume measures terms were also reported, with volumes being up by +0.5 per cent for the quarter and +2.4 per cent over the year to March. </div>
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<div>Assuming that wider household consumption does something similar - and adding this in to the positive net exports result for the first quarter - it seems reasonable to expect that the economy grew at a fair pace in Q1. </div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Retail solid if unspectacular: Pete Wargent

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<p>Seasonal adjustments for department store sales have delivered a bit of a wild ride in recent years, and this month's Retail Trade figures recorded a monster -6.2 percent decline for the sector in July. </p>
<p>It's not the first time we've seen a 'far out' reading for department store retail (last time the figures snapped back the following month) - but we'll have to wait until next month to see whether that happens again.</p>
<p>In any event, this contributed a flat result in seasonally adjusted terms, for just a +0.1 percent increase in trend terms.</p>
<p>Excluding the department stores reading retail turnover would have been up by +0.4 percent for the month, so we'll have to wait and see what next month brings. </p>
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<br><div>Year-on-year retail turnover growth has sagged over the past year to just +2.7 percent, to now sit well below the half decade average.</div>
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<br><strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>The powerhouse states New South Wales (-0.2 percent) and Victoria (-0.5 percent) unusually both recorded negative results in July, possibly because department stores have their head offices in Sydney and Melbourne, though nobody really seems to know if that's why.</div>
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<div>The only decent monthly results were seen in Queensland and South Australia.</div>
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<br><div>Over the past year the opening of a new IKEA in Canberra was the spark to create the strongest retail turnover growth in the Australian Capital Territory (ACT), while the southern states have fared relatively well over the year to July.<br><br>This month's surprise negative result knocked the quarterly and annual figures for NSW and Victoria quite hard.</div>
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<div>Note how demand in the the resources rich Northern Territory has fallen away in tandem with Western Australia, where iron ore and LNG construction projects have recently transitioned to production.</div>
<br><strong><span style="text-decoration: underline;">Department stores crunched</span></strong><br><br><div>Erm, and then there's this. Maybe everyone stopped shopping for a month and there's a rebound pending, or perhaps the timing of revenues being booked is a bit of a lottery.<br><br>Leaving aside the department stores outlier, it's become clear that the household goods boom that piggy-backed off rising house prices as now ended. </div>
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<br><div>Food retail turnover was also weak in dollar terms, in part reflective of soft food prices and intensified competition from low cost supermarkets such as Aldi.</div>
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<br>The best performing sector of the year has been clothing and footwear.<br><br>
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<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<div>A rubbish result! We won't know until next month whether department store retail turnover was an anomaly, but it was an inauspicious start to Q3 for retail trade!</div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Retail flat again (far out!) Pete Wargent

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<p>EXPERT OBSERVER</p>
<p>Department stores and clothing retailers are drawing on consumer behaviour and psychological research to compete with online shopping. <span class="attribution"><span class="source"><br></span></span></p>
<p>Bricks-and-mortar retail stores are under intense pressure from online competition. Feeling the most heat are clothes shops and department stores.</p>
<p>This year David Jones’s profit halved, to A$64 million. Myer declared a “disappointing” <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2018-09-12/myer-full-year-results-2018/10236074" target="_blank">A$486 million loss</a>. German giant Esprit, whose global sales have fallen 40% in four years, has shuttered <a href="https://www.ibisworld.com/industry-insider/analyst-insights/espirit-the-clothing-retailer-set-to-close-its-australian-stores/" target="_blank">its Australian operations</a>. The US-based Gap closed its <a href="https://www.news.com.au/finance/business/retail/gap-closes-final-australian-store-ending-its-disastrous-foray-down-under/news-story/c27860366c3c290e087339aaec3c8503" target="_blank">last Australian store</a> back in February. Other brands to have collapsed include Metalicus, Oroton, Marcs, David Lawrence and Pumpkin Patch.</p>
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<p><iframe style="border: none;" src="https://datawrapper.dwcdn.net/43k4k/1/" frameborder="0" width="100%" height="400"></iframe></p>
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<p>What to do?</p>
<p>One answer is to invest in and enhance those aspects of the shopping experience that online retailers just can’t provide.</p>
<p>To do so department stores and clothing retailers are drawing on consumer behaviour and psychological research to make themselves more appealing – sometimes without shoppers even consciously realising it.</p>
<p>Here are three of the most significant strategies.</p>
<h2>Home is where your heart is</h2>
<p>Shopping from home is comfortable. You can do it in your time. You feel no pressure to hurry up and buy something. You can do it in your pyjamas.</p>
<p>To compete against the home shopping experience, retailers are exploring how to make you feel more at home in their stores. Tactics involve evoking sensory familiarity through furnishings, lighting and even scents.</p>
<p>Men’s clothing retailer Rodd &amp; Gunn is taking the homeliness vibe to its logical extreme, with shop fit-outs that mimic an actual home.</p>
<p><img src="https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""><br><span class="caption">Rodd &amp; Gunn’s ‘experiential’ retail store in Chadstone, Melbourne.</span> <span class="attribution"><span class="source">Rodd and Gunn blog</span></span></p>
<p>The picture above shows Rodd &amp; Gunn’s “<a href="https://www.insideretail.com.au/news/stores-news/rodd-gunn-opens-experiential-chadstone-store-201810" target="_blank">experiential store</a>” in Chadstone, Melbourne. There’s a slanted wood-panelled ceiling to evoke a real house roof. In the centre of the shop floor is a “living room” space with sofa, armchairs and a coffee table. Artworks hang on the walls. It’s all intended to make you feel as relaxed (almost) as you would in your own home.</p>
<p>This approach reflects the research that shows how <a href="https://www.sciencedirect.com/science/article/pii/S096969891630577X" target="_blank">familiar design elements</a> help make shoppers feel comfortable. Colour and music choices apparently don’t make much difference, but layout and other sensory experiences do.</p>
<p>Familiar scents, for example, can affect your decision to go into a store, how long you stay and ultimately how much you spend. They are particularly effective when they <a href="https://www.sciencedirect.com/science/article/pii/S0969698916305483" target="_blank">complement</a> the brand, such as the faint smell of wood in a hardware store or a more herbal scent in a wellness store.</p>
<h2>You want space, but not too much</h2>
<p>What can make or break your experience in a shop is how the staff treat you. As <a href="https://www.researchgate.net/publication/282224094_The_Thin_Line_between_Love_and_Hate_of_Attention_The_Customer_Shopping_Experience" target="_blank">Sarah Alhouti and her colleagues</a> have put it, there’s a thin line between love and hate of attention.</p>
<p>An overly attentive salesperson can be perceived as desperate, pushy or aggressive and <a href="https://www.sciencedirect.com/science/article/abs/pii/S0148296304000372" target="_blank">drive you away</a>. Too little attention, on the other hand, can leave you feeling <a href="https://www.jstor.org/stable/pdf/2786426.pdf" target="_blank">ignored, unwanted and unworthy</a>, with the same result.</p>
<p>With the Goldilocks zone being different for different people, retailers are turning to technology to help get the attention levels right.</p>
<p>For example, Australia’s largest swimwear label, Seafolly, is trying out an <a href="http://www.ragtrader.com.au/news/seafolly-has-launched-a-magic-mirror" target="_blank">interactive mirror</a> in the fitting room of its Bondi Junction store in Sydney.</p>
<p><img src="https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""><br><span class="caption">The interactive mirror in Seafolly’s Bondi Junction store.</span> <span class="attribution"><span class="source">Seafolly</span></span></p>
<p>It allows the customer to message staff directly from the changing room for assistance only if, and when, they decide they need it.</p>
<h2>You’re so special</h2>
<p>Shopping online is highly convenient but it doesn’t necessarily make you feel special.</p>
<p>Some bricks-and-mortar retailers are positioning themselves at the premium end of the shopping market by appealing to the human desire to be pampered. It makes sense to invest in the “VIP experience”, because now every customer they get is very important.</p>
<p>Creating the VIP experience extends from personal greetings to champagne and caviar bars.</p>
<p>Department store <a href="https://www.smh.com.au/lifestyle/fashion/department-stores-are-promising-better-service-but-is-it-too-late-20181003-p507i8" target="_blank">David Jones</a> has embraced this trend as part of the A$200 million redevelopment of its Sydney premises.</p>
<p>Its revamped shoe floor – the largest shoe store in Australia – includes “shoe concierges” to greet and guide you and specialist shoe fitters recruited from around the world. And yes, there’s also a champagne bar.</p>
<p><img src="https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""><br><span class="caption">David Jones’ new ‘Level 7’ shoe floor in Sydney.</span> <span class="attribution"><span class="source">David Jones media release</span></span></p>
<p>Such experiences meet the desire for <a href="https://www.forbes.com/sites/njgoldston/2017/12/29/what-you-need-to-know-about-luxury-consumer-trends-for-2018/#2d19680921eb" target="_blank">a “luxe” experience</a> without the luxury price tag. Research has found that even the simple act of just being welcomed at the entrance of a store can influence how your <a href="https://www.sciencedirect.com/science/article/abs/pii/S0148296316304295">perceive service quality</a> as well as <a href="https://www.researchgate.net/publication/324159812_The_Social_Servicescape_A_Multidimensional_Operationalization" target="_blank">customer satisfaction and store loyalty</a>.</p>
<p>Whether such strategies can save bricks-and-mortar stores remains to be seen.</p>
<p>In the meantime, champagne anyone?<img src="https://counter.theconversation.com/content/107506/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;"></p>
<p><span><a href="https://theconversation.com/profiles/eloise-zoppos-579650" target="_blank">Eloise Zoppos</a>, Senior Research Consultant, <em><a href="http://theconversation.com/institutions/monash-university-1065" target="_blank">Monash University</a></em></span></p>
<p>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/brick-bait-three-tricks-up-retailers-sleeves-to-lure-you-back-to-physical-shops-107506" target="_blank">original article</a>.</p>
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j.ballantyne1990-6AQqhLzZaK

Brick-bait: the tricks up retailers' sleeves to lure shoppers back

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<p>Shopping centre giant Vicinity Centres has begun the search for a new chief executive with Angus McNaughton to retire at the end of this year.</p>
<p>The surprise announcement comes just under two years since Mr McNaughton stepped back into the top role in controversial circumstances following the merger that formed formed Vicinity.</p>
<p>"Including my time with Novion and its predecessor, CFS Retail Property Trust Group, I have been involved with this business for nearly 10 years," Mr McNaughton said in a company statement on Thursday.</p>
<p>"It has been a privilege to be part of Vicinity's transformation and, together with the board and executive team, to establish Vicinity's strategic direction.</p>
<p>"Vicinity is in a strong position and I am very confident in the highly competent executive team that we have built and their ability to drive the future growth of our business."</p>
<p>In August 2015, Mr McNaughton replaced Steven Sewell, who led Federation Centres when it merged with the larger Novion.</p>
<p>​But Mr Sewell's management styled irked the new board, which moved to axe its chief executive just two months after the the 2015 merger was formalised.</p>
<p>Mr McNaughton, who had stepped aside when the merger took place, was recalled and has led the growth of the renamed Vicinity, now an $11 billion property trust, since then.</p>
<p>The New Zealander has bedded down the amalgamation that created the second largest listed landlord of Australia retail property.</p>
<p>Among the highlights of his renewed tenure, Mr McNaughton has overseen a $660 million expansion of Chadstone shopping centre, now Australia's largest mall.</p>
<p>The mall is co-owned by Financial Review Rich Lister John Gandel, who is also Vicinity's largest shareholder and will be influential in the selection of the its next chief executive.</p>
<p>Among the challenges for Vicinity's next leader will be the rapidly changing retail environment that is forcing landlords to rework their massive shopping centres to re-engage shoppers enticed by the ease of online retailers such as Amazon  </p>
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Mall giant Vicinity's CEO to resign

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<p><img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1"></p>
<p>GUEST OBSERVER</p>
<p>City of Melbourne councillors voted recently to implement the 2016-20 Bicycle Plan.</p>
<p>This followed public consultations that included two phases of community engagement and the release of a draft plan last October. Features of the plan, which has a budget of around A$2 million a year over four years, include:</p>
<ul>
<li>
<p>upgrading busy cycling routes;</p>
</li>
<li>
<p>increasing bicycle parking;</p>
</li>
<li>
<p>improving end-of-trip facilities;</p>
</li>
<li>
<p>conducting safety campaigns; and</p>
</li>
<li>
<p>undertaking research.</p>
</li>
</ul>
<p>Most inner-Melbourne cyclists would likely welcome this renewed commitment to improving the cycling environment. It is important, though, to put this expenditure into perspective.</p>
<p>A A$2 million-per-year plan for the population of about 127,000 who live in the City of Melbourne (about A$16 per person) is a pittance compared to the 20-year, US$600 million Bicycle Plan 2030 in the US city of Portland, Oregon. With a population of about 619,000, the US$30 million-a-year average works out to more than US$48 per person. Portland is mooted as one of the most cycle-friendly cities in the world.</p>
<h2>Criticism of the plan</h2>
<p>Days before the Melbourne councillors voted on the plan, a Herald Sun editorial said:</p>
<p><span style="line-height: 1.3em;">"Melbourne City Council appears hellbent on turning the city into cyclist heaven … More likely this will soon turn the CBD into an economic wasteland as drivers take their business elsewhere as well as their shopping."</span></p>
<p>The assertion that installing cycling infrastructure in inner Melbourne will hurt the local economy defies the evidence from a plethora of case studies.</p>
<p>There are numerous international examples where local business-owners have over-estimated the proportion of their customers who travel by car. Consequently, they have considered parking as an overarching issue of primary concern.</p>
<p>They have often resisted anti-car, pro-active transport infrastructure changes – such as removing on-street parking and car lanes, and creating shared paths – on the premise that these will be bad for business.</p>
<p>But such changes have often resulted in increases in retail activity as well as jobs, land value and tourism.</p>
<h2>Economic impact of cycling infrastructure</h2>
<p>In Valencia Street, San Francisco, traffic lanes were slimmed to slow down cars and accommodate other road users. Nearly 40 percent of merchants reported increased sales. More than 60% reported an increase in the number of customers who ride bicycles.</p>
<p>New York implemented a raft of changes across the city including traffic calming, separated and protected bike lanes, and dedicated bicycle signals. These changes resulted in significant rises in retail sales, beating the Manhattan average for the same period and substantially outpacing performance on nearby unaltered streets.</p>
<p>The city’s Department of Transport later released a report presenting and explaining the robust methodology developed for evaluating the economic effects of these “Sustainable Streets” improvements. This report is available for use by other cities and public agencies.</p>
<p>In Bloor Street, Toronto, a study of merchants and patrons found only 10 percent of patrons drove to the area. A majority of merchants believed that a bike lane or widened footpath would increase business and that off-street parking lots would cover the reduction in on-street parking. These findings from Canada demonstrate that local business-owners don’t always oppose improvements in cycling infrastructure at the expense of cars.</p>
<p>There have even been case studies in the City of Melbourne itself revealing the benefits of sacrificing infrastructure for cars to make way for bicycles.</p>
<p>A study of Lygon Street, Carlton, found that while the average cyclist’s retail spending is only $16.20/hr compared to a car driver’s $27.00/hr, six bicycles can park in the space required for one car. Therefore, while one car space equates to $27.00/hr retail spending, six bicycle spaces equate to $97.20/hr.</p>
<p>That puts a new light on the claims by our Herald Sun editorial:</p>
<p><span style="line-height: 1.3em;">"Motorists will be dismayed to learn that doubling the number of bike racks on city streets will mean fewer carparking spaces … Councillors must surely be aware of the problems they are creating for the thousands of businesses long established in the city."</span></p>
<p>Previous evidence suggests that inner Melbourne businesses will prosper under a changing transport environment – and not “see their money spent against their business and personal interests”, as the Herald Sun suggests.</p>
<p>On the contrary, improvements in bicycle infrastructure are likely to have a positive economic impact in their own right. That’s before we even consider the other positive effects. Physical inactivity costs Australia $13.8 billion a year when the health impacts were last assessed in 2008. Traffic congestion was estimated to cost Australian capital cities $16.5 billion last year.</p>
<p>The City of Melbourne and advocacy groups should continue pursuing bicycle infrastructure improvements – even at the expense of cars – where feasible.</p>
<p><span class="fn author-name">Jerome N Rachele is r</span><span style="line-height: 1.3em;">esearch fellow in Social Epidemiology, Institute for Health and Ageing, Australian Catholic University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jerome-n-rachele-251972" target="_blank">here</a>.</span></p>
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