<p>Lower North Shore development specialists&nbsp;<a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a>&nbsp;has topped out its new local apartment development,&nbsp;<a href="https://www.apartments.com.au/new-apartments/northcote-collective-naremburn-2-6-northcote-street-naremburn-nsw-2065">Northcote Collective</a>.&nbsp;</p>

<p>Located in the tightly held suburb of <a href="https://www.apartments.com.au/developments/naremburn-nsw-2065">Naremburn</a>, Northcote Collective is a collection of just 58 one-, two-, and three-bedroom apartments designed by award-winning architects Rothelowman.&nbsp;</p>

<p>The building is just a five to 10 minute walk from the heart of Crows Nest and the new&nbsp;St Leonards and Crows Nest Metro stations. Abadeen has also brought doorstep convenience, with a ground-floor retail offering on Northcote Street.</p>

<p>Northcote Collective is being delivered by&nbsp;<a href="https://www.apartments.com.au/builders/decode">Decode</a> — an iCIRT-rated construction company well regarded in the new development industry.</p>

<p>[smartcode_project:default project_id=114189 project_image_fid=272840]</p>

<p>“This is an important and exciting moment for Northcote Collective, and we’re proud to celebrate this milestone with our partners, consultants, and future residents,” said Justin Brown, Executive Chairman and Founder of Abadeen.&nbsp;</p>

<p>“From the outset, our vision was to create something truly special for Naremburn — homes that respect the character of the neighbourhood while elevating the standard of Lower North Shore living. With connectivity to transport, retail on the doorstep and a true village lifestyle, this milestone also comes at a perfect time when buyer confidence is returning to the market. I am incredibly proud of our team and of Decode for their dedication in helping us bring this vision to life.”</p>

<p>[smartcode_project:default project_id=114189 project_image_fid=272865]</p>

<p>The development is two-tiered, with two rooftops for residents. The taller building has an impressive rooftop pool, a rare inclusion in the new Sydney apartment market. The level, with panoramic views, also includes an entertaining terrace with barbecue facilities.</p>

<p>Local downsizers and young professionals are showing the strongest interest in the development, with recent improvements in the property market — supported by three rate cuts in 2025 — boosting borrowing power and buyer confidence.</p>

<p>Auction activity across Sydney surged by almost 30 per cent in recent weeks, with clearance rates above 70 per cent — signalling a renewed wave of buyer demand.</p>

<p>Northcote Collective will welcome buyers in 2026.</p>

<p>[smartcode_project_cta:default project_id=114189]</p>


Joel Robinson

Abadeen tops out Northcote Collective in Naremburn

<p>Sunshine Coast-based <a href="https://www.apartments.com.au/developers/devcon-property-group">Devcon Property Group</a> has acquired one of Maroochydore’s most prominent development sites for $12 million unlocking the potentialfor a mixed-use project in the Cotton Tree precinct.</p>

<p>&nbsp;</p>

<p>The 4,178 sqm site at 41–43 Aerodrome Road—well known locally as the former home to one of Australia’s last Sizzler restaurants—was sold via an off-market expressions of interest campaign by Colliers agents Nick Dowling and Baydn Dodds. More than 70 targeted buyer groups were approached, resulting in multiple competitive offers for the property.</p>

<p>Devcon Property Group Managing Director Michael Kain said the acquisition was a strategic move in line with the company’s focus on delivering high-quality projects in prime coastal locations.&nbsp;</p>

<p>“We’re excited about the possibilities this site, in one of the Sunshine Coast’s most iconic beachside &nbsp;communities, offers for a broad range of development outcomes,” Kain said.</p>

<p>“Its location, ocean view potential, and proximity to the Maroochydore CBD and beach make it an &nbsp;outstanding development prospect. Our plans are to refurbish the existing building and then review &nbsp;development options for the remainder of the site.”&nbsp;</p>

<p><img alt="Aerodrome Rd site overlooking Beach (Large)" data-entity-type="file" data-entity-uuid="a29dc4ed-68c1-4bec-a4fc-283063dcde1e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Aerodrome%20Rd%20site%20overlooking%20Beach%20%28Large%29.jpg?VersionId=b0WxJWevmLoAfCP4YvGImZpR3rSCJJ9L" /></p>

<p>Colliers Special Projects Manager Baydn Dodds said the sale reflected the ongoing strength of the &nbsp;Sunshine Coast’s development site market, particularly for projects capable of achieving water views. &nbsp;</p>

<p>“Sites of this scale, in walkable beachside locations with ocean views, are tightly held and continue to attract significant interest from both local and national developers,” Baydn Dodds said. &nbsp;</p>

<p>“Holding a prominent position as the former home to one of Australia’s last Sizzler restaurants and more recently occupied by Rashays, the prime site is located just 150 metres from Maroochydore Beach.&nbsp;</p>

<p>“With stunning ocean view potential, located in one of the Sunshine Coast’s best known iconic &nbsp;beachside communities, within steps of shops, cafes and the beach it is no surprise that there was strong interest in the site. The transaction highlights the ongoing depth of demand for well-located &nbsp;mixed-use sites across the Sunshine Coast.”&nbsp;</p>

<p>Colliers Sunshine Coast Managing Director Nick Dowling said the transaction reinforced the &nbsp;Sunshine Coast’s status as one of Australia’s most active development markets.&nbsp;</p>

<p>“The combination of strong population growth, lifestyle appeal, and infrastructure investment is &nbsp;driving demand for quality development opportunities,” Nick Dowling said. &nbsp;</p>

<p>“The Sunshine Coast is one of only three markets nationally to record an increase in crane numbers, &nbsp;reflecting the strength of the region’s construction pipeline.&nbsp;</p>

<p>“Opportunities like this are rare and continue to generate strong buyer interest in the region.”&nbsp;</p>

<p>The Sunshine Coast development market is booming, with several high-profile developers like Cube Developments, Gardner Vaughan Group, and RCQ, planning developments in the region.</p>


Devcon buys Sunshine Coast’s former Sizzler site for new apartment development

<p>Sydney House, the residential redevelopment of the landmark City Tattersall building on Pitt Street in the Sydney CBD, will officially launch to the market this month.</p>

<p>The $800 million development, a joint venture between&nbsp;Singapore-listed <a href="https://www.apartments.com.au/developers/first-sponsor">First Sponsor</a>&nbsp;and leading Melbourne-based developer&nbsp;<a href="https://www.apartments.com.au/developers/icd-property">ICD Property</a>, will see a glass tower with 241 apartments and a 135-room hotel built above the restored heritage-listed podium.</p>

<p>[smartcode_project:default project_id=12428 project_image_fid=312145]</p>

<p>The apartments will offer&nbsp;rare northeast-facing views across the sparkling Sydney Harbour and Hyde Park, all positioned above a luxury hotel with exclusive access to premium amenities and five-star lifestyle services.</p>

<p>Internationally acclaimed architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/bvn-architecture">BVN Architecture</a>&nbsp;handled the design for the residential component and the interiors for the hotel, while&nbsp;<a href="https://www.apartments.com.au/architects/fjc-studio">FJC Studio</a>&nbsp;focused on the heritage podium.</p>

<p>[smartcode_project:default project_id=12428 project_image_fid=6670]</p>

<p>First Sponsor’s CEO, Neo Teck Pheng, together with ICD Property’s CEO, Matthew Khoo commented that the joint venture team was ecstatic to bring this extraordinary project to market as the first opportunity for those looking to secure their ultimate CBD luxury residence elevated by premium hotel amenities, including select premium services designed for effortless living.</p>

<p>“<a href="https://www.apartments.com.au/new-apartments/sydney-house-194-204-pitt-street-sydney-nsw-2000">Sydney House</a> will offer a sophisticated expression of modern CBD living, capturing panoramic vistas to Sydney’s most beloved icons, including the Sydney Harbour Bridge as well as Hyde Park out to the North and South Heads,” Khoo said.&nbsp;</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=12428 project_image_fid=312146]</p>

<p>Mr Neo expressed that the reinterpretation of the heritage podium levels will feature an elegant heritage bar and restaurant, along with luxurious hotel and function facilities, enhancing the experience for residents. The historical features will be reborn, ensuring that these grand, opulent spaces will once again be enjoyed, appreciated and celebrated by residents, Sydneysiders as well as interstate and international visitors alike.</p>

<p>Managing sales for the project, SRM Residential Partner Tim Rees said that the team has received an overwhelming response to date, largely from local downsizers and upgraders looking for the ultimate lifestyle purchase.&nbsp;</p>

<p>“Once completed in late 2027, Sydney House will be Sydney CBD’s newest icon blending modern architecture with historic grandeur located in one of the most prestigious enclaves of the CBD,” Rees said.&nbsp;</p>

<p>“Pitt Street is arguably the most significant street in all of Sydney. Just a stone’s throw from Circular Quay, Sydney Opera House, Hyde Park and Darling Harbour, Sydney House offers seamless connection with the CBD and beyond. Pitt Street Mall is literally across the road and there is an abundance of dining and cultural venues in close proximity. The outlook from Sydney House will be breathtaking with views of Hyde Park and Sydney’s famous iconic landmarks on offer.</p>

<p>“Following the trend of other global cities such as New York, London, Paris and Tokyo, luxury inner city apartment living with access to premium hotel amenities is the new ‘trophy home’ for wealthy downsizers or empty-nesters who aren’t looking to slow down, as they want to live in the heart of the action.”</p>

<p>[smartcode_project:default project_id=12428 project_image_fid=350624]</p>

<p>The project boasts a prime CBD location surrounded by the city’s most premium shopping centres including David Jones and Westfield Pitt Street as well as some of Sydney's best restaurants, bars,&nbsp;pubs, theatres, museums, art galleries, and parks.</p>

<p>Residents will be able to access the newly opened Sydney Metro Gadigal Station, located within a block from Sydney House. This station provides connectivity to Martin Place (one min), Barangaroo (three mins) and North Sydney (11 mins) as well as Chatswood and Macquarie University through to Castle Hill and Norwest. With services every four minutes during peak times, the Sydney Metro provides the ultimate convenience with 21 stations from Tallawong to Sydenham.</p>

<p>One of Sydney’s leading residential construction companies, particularly in premium off the plan luxury residences, Richard Crookes Constructions, will complete the project in late 2027.&nbsp;</p>

<p>Price guides at Sydney House include one-bedroom apartments from $1.5 million, two-bedroom apartments from $2.3 million and three-bedroom apartments from $5 million.</p>

<p>[smartcode_project_cta:default project_id=12428]</p>


Set to bring next level luxury to Sydney CBD’s prestige property market

Buyers set for first chance at Sydney House, Sydney CBD's newest landmark tower development

<p>Joint venture partners&nbsp;<a href="https://www.apartments.com.au/developers/amalgamated-property-group">Amalgamated Property Group</a>&nbsp;(APG)&nbsp;and&nbsp;<a href="https://www.apartments.com.au/developers/base-developments">Base Developments</a>&nbsp;have kicked off construction&nbsp;on its second Gold Coast apartment tower, Affinity Broadbeach, which is due for completion in early 2028.</p>

<p>More than 50 per cent of the 180 two- and three-bedroom apartments have sold, with buyers particularly impressed by&nbsp;the spacious and functional floor plans, close proximity to the beach, premium inclusions, and expansive resort-style amenities.</p>

<p>APG has just released a new limited collection of three-bedroom skyhomes with three living rooms and four bathrooms.</p>

<p>[smartcode_project:default project_id=107690 project_image_fid=323744]</p>

<p>Graham Potts, Principal and Founding Director Amalgamated Property Group, said the strong demand for <a href="https://www.apartments.com.au/new-apartments/affinity-broadbeach-40-46-chelsea-avenue-broadbeach-qld-4218">Affinity Broadbeach</a> highlights a genuine need for affordable luxury residential developments on the Gold Coast.&nbsp;</p>

<p>“It’s exciting to see construction kick off on this sought-after project which is set to create a new benchmark in luxe coastal living on the Gold Coast," Potts said.</p>

<p>"Buyers are attracted by the seamless blend of convenience and elegance that Affinity offers, together with the knowledge that our 20-years of industry experience ensures we continue to deliver homes to the same high standards our reputation has been built on."</p>

<p>Capital Construction Queensland, the inhouse construction arm of APG, is handling the building. Potts says having the internal build capability provides buyers with confidence in delivering a high-quality building, referencing Amaya Broadbeach which is nearing completion nearby.</p>

<p>[smartcode_project:default project_id=107690 project_image_fid=323199]</p>

<p>Carly Cottam, CEO of <a href="https://www.apartments.com.au/project-marketer/motiv">MOTIV</a> Group which is selling Affinity, says there's a clear undersupply of property across Southeast Queensland and an even greater shortage of well-designed, spacious residences.</p>

<p>"That’s why Affinity has attracted such strong demand," Cottam says.</p>

<p>"Every detail, from the intricate finishes to the intelligent spatial planning, has been crafted for the discerning owner-occupier. Beyond the residences, the amenity is designed as a true extension of the home."</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=107690 project_image_fid=6678]</p>

<p>Affinity’s superior amenities are resonating with buyers who are impressed by the range on offer, from the expansive outdoor heated pool, to the state-of-the-art gym, steam and sauna facilities, outdoor entertaining terraces, and a business centre.</p>

<p>"The offering reflects exactly what buyers are seeking when right-sizing or upgrading - spacious residences complemented by curated residential amenity, all within moments of the beach and vibrant retail and dining precincts,” Cottam added.</p>

<p>[smartcode_project:default project_id=107690 project_image_fid=6676]</p>

<p>Dennis Milin, Principal of Base Developments and Milin Builders, and Director of Capital Constructions Queensland, said the team is excited to deliver another collection of premium homes in the heart of Broadbeach.</p>

<p>"With more than three decades of proven success in construction and development, our award-winning portfolio across the ACT and NSW speaks for itself, now further demonstrated by the strong progress at Amaya Broadbeach on First Avenue in Queensland,"&nbsp;Milin said.</p>

<p>“In partnership with a highly regarded team of designers, engineers and trades, and supported by our experienced Gold Coast construction professionals, we remain committed to delivering projects defined by quality, timeless design and uncompromising standards."</p>

<p>Early works at Affinity are already advancing, with guide walls for shoring and bulk excavation underway.</p>

<p>[smartcode_project:default project_id=107690 project_image_fid=323196]</p>

<p>With a proven track record in large premium projects, APG has been developing residential and commercial property across Australia for more than 20 years. APG and Base Developments are the same duo behind the successful Amaya Broadbeach, currently under construction on First Avenue and due for completion in early 2026, as well as a number of other successful joint developments in Canberra, including Botanical in Turner, Kiara in Narrabundah, Ivy in Woden, and the three-tower Oaks precinct in Phillip.</p>

<p>APG is currently building The Eastbourne, 349 homes, a premium office building, and a retail and dining precinct at ANZAC Park East.</p>

<p>[smartcode_project_cta:default project_id=107690]</p>


Amalgamated Property Group and Base kick off construction at Affinity Broadbeach

<p>&nbsp;</p>

<p>A local Australian has spent a Lower North Shore record $15.1 million at <a href="https://www.apartments.com.au/new-apartments/elevate-hume-place-crows-nest-25-hume-street-crows-nest-nsw-2065">Elevate Hume Place</a>, the new TOD above the recently opened Crows Nest Metro Station.</p>

<p>The buyer amalgamated a penthouse and sub-penthouse to create the triplex apartment that will have five bedrooms, five bathrooms, a private rooftop pool, expansive terrace, and panoramic views of Sydney Harbour and skyline. The building is being created by burgeoning developer Third.i, alongside joint venture partner Phoenix Property Investors.</p>

<p>The buyer was drawn to Elevate’s unrivalled connectivity, situated directly above the&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a> Metro Station, and the vibrant lifestyle precinct that surrounds it. The Metro connects to the CBD in just seven minutes, and Chatswood in four.</p>

<p>[smartcode_project:default project_id=142550 project_image_fid=309367]</p>

<p>Designed by internationally acclaimed architects <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, Elevate draws inspiration from the ancient blue gum forests native to the area. The building is a Net Zero development, created in consultation with Indigenous communities and exceeding sustainability benchmarks. Interiors feature chevron-engineered timber flooring, natural stone benchtops, and premium Sub-Zero Wolf appliances, delivering timeless elegance and next-level comfort.</p>

<p>The exchange of the $15.1 million apartment, follows a recent $5 million sale, and over $30 million currently in expressions of interests. Interest in Elevate’s penthouse stock has surged, reflecting a strong appetite for ultra-luxury residences that combine design excellence with unmatched connectivity.</p>

<p>[smartcode_project:default project_id=142550 project_image_fid=309369]</p>

<p>“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group.&nbsp;</p>

<p>“These recent sales are a testament to the vision behind Elevate. It’s not just about luxury finishes or panoramic views, it’s about creating homes that are deeply connected to the city and the community. Buyers are responding to that. They want to live somewhere that offers more than just a postcode, they want culture, convenience, and long-term value. Elevate delivers all of that, and more.”</p>

<p>[smartcode_project:default project_id=142550 project_image_fid=297878]</p>

<p>As part of the Hume Place precinct, Elevate is transforming Crows Nest into Sydney’s most dynamic urban village. Elevate’s unique position directly above the metro, combined with its curated amenity offering, has made it a magnet for buyers seeking a future-proof investment and a vibrant urban lifestyle.</p>

<p>The next release at Elevate is expected later this year.</p>

<p>[smartcode_project_cta:default project_id=142550]</p>


“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group


Third.i & PPI set Lower North Shore apartment record with $15.1m sale at Elevate Hume Place penthouse amalgamation

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>
<div class="separator"> </div>
<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>
</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>
<div> </div>
<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>
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<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>
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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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<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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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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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>
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<p>upgrading busy cycling routes;</p>
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<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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