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

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

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

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

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

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

IN BRIEF

<ul>
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	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
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	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
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	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

Spending

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GUEST OBSERVER
Household spending can be divided into three broad categories, services, retail trade, and non-retail goods. Where households spend has implications for overall economic activity. 
For example, spending in labour intensive services sectors, such as health, or restaurants, will typically have a larger impact on overall economic and jobs growth than spending on some retail goods, such as furniture and clothes, which are largely imported. In this note we look at the broad long- term trends in the three expenditure categories. 
Retail trade share of household spending has stabilised
<a href="/images/2016/11/16/Screen%20Shot%202016-11-16%20at%208.31.34%20AM.png" target="_blank">Click to enlarge</a>
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The retail trade share of household spending was on a long term downward trend but looks to have stabilised. In the early 1980’s retail trade accounted for over 40% of household spending compared to 31% today. The main beneficiary has been the services sector. Households have increased their share of spending on services from around 50 percent in the early 1980’s to around 60 percent now. 
The long run decline in the retail trade share of household spending reflects the fall in prices of retail goods relative to other goods and services. In volume terms, the retail trade share of total household spending has stayed very close to 30 percent since the data began in the early 1980’s.
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However, for the last three years the retail trade share of household spending has been flat. With volumes also being broadly steady, this shows that that the discounting of retail goods relative to other goods and services has eased. 
Part of the stabilisation of retail prices relative to services is due to the depreciation in the Australian dollar. This has helped to lift import prices in Aussie dollar terms. However RBA research shows that this lift has not been as large as would have been expected given the size of the depreciation. Increased competition is limiting the pass through from imported prices to sales prices. 
It also reflects a sharp slowing in services inflation since late 2013. Services inflation has typically been higher than for inflation for goods. However, both are now running at an annual rate of just 1.5 percent over the year to September. Inflation of market based services, such as meals out and hair cuts, has slowed more sharply to an annual rate of just 0.9 percent over the year to September. 
The slowing in services inflation, and inflation more generally, reflects a number of factors. Firstly there is spare capacity in the economy, which can be seen in the high rate of labour market underutilisation. Secondly, increased competition globally and advances in technology have reduced the pricing power in many markets.
<a href="/images/2016/11/16/Screen%20Shot%202016-11-16%20at%208.34.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/16/Screen%20Shot%202016-11-16%20at%208.34.09%20AM.png" alt="">
 
In a recent speech, RBA Governor Lowe spoke about how reduced pricing power was not just effecting the manufacturing sector, but service sectors too. Thirdly, job security fears have been heightened since the GFC. This means that workers are less inclined to push for wage increases, in sectors where part- time work is replacing full-time permanent positions.
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But services share is still increasing 
The share of household spending on services has increased over time. Spending on purely discretionary services, such as restaurants, accommodation and recreation, accounts for around 15% of household outlays. This share has been broadly stable over time. Contrary to popular perception, the share of spending on “meals out” has declined over time, now accounting for 5.2 percent of spending compared to 6.2 percent 30 years ago. 
So the upward trend has been driven by an increasing share of spending on non-discretionary services, such as rent, health, education, transport and communications. These categories account for 45 percent of household spending, having increased from around 30 percent 30 years ago. The shift in spending reflects relatively stronger price increases for these services as well as a change in preferences towards these areas. 
For example:
Insurance and other financial services – growth in this category is running at 6.5 percent over the year to June. As a share of housing spending, insurance and other financial services now accounts for 9.2 percent, compared to 8.4 percent three years ago.
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Growth in this category has been driven by an increase in the volume of spending. Excluding price effects, the proportion of spending on this category has also increased by a similar magnitude.
Consumers have shown a higher degree of caution around employment prospects in recent years. As a result they may be taking on a greater degree of insurance to guard against the loss of income, a decline in health or loss of other assets. There are also a larger number of products on offer.
Spending on health services rose by almost 10% over the year to June. The share of household spending continues to increase, accounting for around 5% compared to 4% ten years ago. The increase has been driven by both relatively strong price increases as well as an increase in volume of spending. The ageing population has also boosted spending on health and this trend will continue. A higher proportion of the population now has (subsidised) private health insurance which has boosted the number of elective procedures.
Education has also grown at an above average pace, with spending up 5.8% over the year. Education accounts for 4.7% of household spending compared to 3.5% 10 years ago. The increase in the share of spending is due to relatively strong price increases and also a larger volume of spending on this category. For example, a greater proportion of people are finishing year 12 and undertaking further education.
One category of discretionary services spending which has increased over time is overseas travel. As a share of household outlays, expenditure on travel has increased from 2.5 percent in the early 1980’s to around 3.7 percent now. The share of spending on flights has fallen as the relative cost has declined.
However outlays on overseas accommodation and other travel costs has increased.
Spending on non-retail goods is falling
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<div class="column">The retail trade share of household spending has stabilised in recent years. And the services share continues to increase. This means the share of spending on non-retail goods has declined. </div>
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 In particular, the share of spending on vehicles and their maintenance has fallen by 1 percent point over the past three years. There has been a long run downtrend in spending on these categories with the share of households spending around currently 7 percent compared to a peak of 11 percent in the 1980s. This largely reflects price falls – the price deflator for vehicles has declined by 25% since late 2007, while the deflator for the maintenance of vehicles is 7 percent lower over the past three years. Vehicles are cheaper, more reliable and can be funded via mortgage redraws at a lower cost.</div>
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 Summary</div>
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 Changes in relative pricing, which have reduced the price of goods relative to services, have contributed to some very long run trends in household spending. Households have spent an increasing share on the consumption of services, while spending on retail and other goods has declined.</div>
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 However the good news for retailers is that their share of household spending has been stable in recent years. This reflects a lower Australian dollar, which has lifted the price of some retail goods. However it also reflects a fall in the price of other consumption goods, such as cars, and a slowing in services inflation.</div>
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 With plenty of spare capacity in the labour market, wages growth and non- tradeables inflation are likely to remain soft for many years. This means the relative price of services is likely to remain subdued. And the upward trend in the services share of household spending may flatten out. </div>
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Kristina Clifton is economist, Commonwealth Bank, and can be contacted <a href="https://www.commbank.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Trends in household spending: CBA's Kristina Clifton

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GUEST OBSERVER
Consumer confidence slipped 2.2 percent in March seeing it continue to lag behind business confidence which is a bit more upbeat.
Both consumer and business confidence are around their long term averages though.
<a href="/images/2016/03/9/image004.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/9/image004.png" alt="">
Source: NAB, Westpac/MI, AMP Capital
Interestingly, all the talk of a crash in the Australian property market looks to have led to a sharp fall in the proportion of Australian’s nominating real estate as the wisest place for savings. It fell from 23.4% in December to 14.7% in March. With interest in shares also falling slightly and superannuation remaining low this saw a renewed spike in interest in bank deposits and paying down debt.
<a href="/images/2016/03/9/image006.png" target="_blank">Click to enlarge</a>
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Source: Westpac/MI, AMP Capital
Housing finance fell a greater than expected 3.4% in January with both finance to investors and particularly owner occupiers falling. The loss of momentum in lending to investors tells us that the APRA measures continue to impact and would probably be welcome by them and the RBA. The slowing in lending to owner occupiers may be more of an issue, but it’s dangerous to read too much into one month’s data. Nevertheless it is consistent with slower growth in housing related debt this year which in turn will likely see slower gains in Sydney and Melbourne property prices compared to last year.
Today’s consumer confidence and housing finance data while soft is unlikely to be enough to prompt the RBA to act on its easing bias just yet.
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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Talk of a crash in the Australian property triggers sentiment shift to wiser investment places: Shane Oliver

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The NAB Online Retail Sales Index for the December 2015 quarter edition has estimated the Australian online retail market was worth $19.1bn in the 12 months to December 2015.
The survey noted month-on-month figures to December 2015 grew 2 percent, seasonally adjusted, driven in part by online sales growth on 2.5 percent. Australians spent an estimated $19.1 billion in retail online to December 2015. NAB report this level is equivalent to around 6.5% of the traditional bricks &amp; mortar retail sector.
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Australian online retail market worth $19.1bn in 2015: NAB

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GUEST OBSERVER
Retail sales were largely flat in December after rising for the prior four months. Aussie retailers have certainly faced their share of headwinds over the past year. And while it’s pretty clear that December was a soft month in terms of retail activity, the December quarter was essentially in line with longer-term averages.
What the result highlights is a momentum shift. Activity levels were strong at the start of the quarter but seem to have pulled back over the Christmas spending period. Interestingly the soft result was also mirrored in the Commonwealth Bank Business Sales Index (which measures all the debit and credit transactions that are processed across CBA eftpos terminals).
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The Reserve Bank has slightly downgraded growth forecasts in 2017 and 2018. However it is important to note that the forecast changes are downward tweaks rather substantial cuts.
And rather than any serious signs of panic or concern, the downward revisions effectively opened the door to another rate cut if it becomes necessary. 
Interestingly, the accompanying commentary certainly suggests that Board Members remain uncertain about the near term outlook for the domestic economy but the longer term prospects remain relatively sound.
Importantly the weaker near term growth story is really driven by the uncertainty in non-mining business investment. However given the rather more positive view on the longer term prospects – particularly the expectations for an ongoing slide in unemployment it is by no means assured that another interest rate cut is on the cards.
Two key concerns dominate central bank thinking. The first include how the rebalancing of the domestic economy (away from mining investment) is keeping pace. And the second is the uncertain impact of the recent financial turbulence – it has the potential to see businesses and households pullback in terms of activity. Interestingly the weakness in non-mining business investment is the one area that continues to occupy policymakers thoughts. A lift in business investment is the key to supporting growth and in providing an overall lift in jobs.
The policy stance is clearly slanted towards the potential for further rate cuts rather than rate hikes. Subdued global growth, a lower terms of trade, coupled with a lack of non-mining investment are some of the risks to domestic growth.
The Reserve Bank intimated on Tuesday that the economic outlook was improving while at the same time noting inflation was lower than expected. Clearly that gives the Reserve Bank scope to cut rates, if it was needed. But the Reserve Bank is not giving any indication that it intends to act on that ‘easing bias ’ any time soon. In fact we expect the Reserve Bank to keep rates on hold over the rest of 2016.
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What do the figures show?
Retail trade – December month
Retail trade was flat in December after rising for the prior four months.  In trend terms, retail trade grew by 0.3 per cent in December.
Non-food retailing fell by 0.5 per cent in December after rising by 0.5 per cent in November. Non-food retail spending is up 4.6 per cent on a year ago.
Sales by chain-store retailers and other large retailers rose by 0.4 per cent in December to be up 6.4 per cent over the year.
Sales rose in five of the eight states and territories, led by the ACT (up 2.5 per cent), Northern Territory (up 0.3 per cent), Queensland and South Australia (both up 0.2 per cent), and NSW (up 0.1 per cent). Sales fell the most in Western Australia and Tasmania (both down 0.6 per cent), and Victoria (down 0.1 per cent).
Strongest growth in the month was by “Liquor retailing” (up 1.3 per cent) followed by “Footwear and other personal accessory retailing” (up 1.2 per cent) and clothing (up 1 per cent).
The biggest drop in sales in the month was recorded by “Electrical, Electronic &amp; Gas Goods Retailing” (down 1.7  per cent) followed by “Other recreational good retailing” (down 1.5 per cent) and “Hardware, building and garden supplies retailing” (down 1 per cent).
“Newspaper and book retailing”  (down 2.6 per cent) and “Department stores”  (down 0.9 per cent).
Retail trade – December quarter
In real (inflation-adjusted) terms, retail trade rose by 0.6 percent in the December quarter – marginally below the decade average of 0.7 per cent. In real terms sales were up 2.5 percent on a year ago – below the decade average of 2.9 percent.
Strongest growth in the quarter was by “Electrical, Electronic &amp; Gas Goods Retailing” (up 5.4 per cent – the best result in a year), followed by “Other recreational good retailing” (up 4.2 percent – the best result in two years.) and “Department stores” (up 1.8 per cent).
The biggest drop in sales in the quarter was recorded by “Other retailing – stationery goods, flowers, antiques” (down 4.4 per cent), followed by “Footwear and other personal accessory retailing” (down 2.8 per cent – the weakest quarterly result in three years), and “Other specialised retailing” (down 2.6 per cent).
Retail inflation lifted by 0.7 per cent in the December quarter – the biggest quarterly rise in two years. Retail prices are up 1.6 per cent over the year. Prices of goods at “Footwear and other personal accessory retailing” rose by 3.1 per cent, with “Other retailing – stationery goods, flowers, antiques” up 2.2 per cent, and “Supermarkets &amp; grocery stores” up 1.2 per cent.
Key take-aways from the Reserve Bank report
Below are our key “take-aways” from the Reserve Bank’s latest quarterly reviews. The full Statement on Monetary Policy can be found <a href="https://www.rba.gov.au/publications/smp/2016/feb/" target="_blank">here</a>: 
Forecasts: The RBA expects annual economic growth 2-3 cent and underlying inflation around 2.00 percent over the next few months.
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Economic outlook: “Forecasts for GDP growth are little changed from those presented in the November statement. Year ended GDP growth is forecast to be 2ó–3ó per cent over the year to December 2016, and to increase to 3–4 per cent over the year to June 2018.”
Inflation forecasts: “The December quarter inflation outcome was broadly in line with expectations in the previous Statement. The forecast for underlying inflation is little changed. Underlying inflation is expected to remain low over the forecast period...”
Non-mining business investment: “The outlook is for non-mining business investment to remain subdued in the near term. The ABS capital expenditure survey of firms’ investment intentions and the low level of non-residential building approvals suggest that the profile of nonmining investment will be a bit weaker than earlier”.
Labour market: “Labour market conditions have improved by more than expected at the time of the November Statement. Employment growth was above average over 2015 and the unemployment rate was around ó percentage point lower in the December quarter than earlier anticipated.”
“While employment growth is expected to slow somewhat from the rapid pace seen in the December quarter, it is forecast to remain strong enough to reduce the unemployment rate further. The participation rate is likely to rise further over coming years as individuals are encouraged to enter the labour market as employment opportunities improve.”
Foreign buyers: “ Information from the Bank’s liaison suggests that foreign buyers tend to have longterm motivations for investment and may be relatively unconcerned about temporary fluctuations in housing price growth.”
What is the importance of the economic data?
The Bureau of Statistics’  Retail trade publication contains the most current readings on the performance of consumer spending. The ABS surveys 500 ‘larger businesses’ and 2,750 ‘smaller businesses’. Retail trade covers spending at a broad range of retail outlets but excludes both petrol and motor vehicle sales. A weak retail trade result may point to a slowing economy as well weighing on the share prices of listed retail stocks. But retail trade estimates can’t be assessed in isolation – it is important to look at the influences determining future trends in consumer spending, such as income, employment and confidence levels.
The Reserve Bank releases its Statement on Monetary Policy each quarter. The Statement is the Reserve Bank’s assessment of economic and financial conditions and also contains the latest inflation views. The Statement is crucial is assessing the short-term outlook for interest rates.
What are the implications for interest rates and investors?
The outlook for retailers remains positive. Lower petrol prices, firm confidence levels, strong home construction and rising employment all serve to boost spending levels. The only area that could instil some hesitancy in the average consumer is the weaker performance of the sharemarket.
The Reserve Bank will closely monitor developments in China and financial markets more generally. Encouragingly the Reserve Bank has plenty of firepower to provide stimulus to the economy. CommSec expects no change in the cash rate over the next year.
 
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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Spending stalls, RBA tips lower jobless rate: Savanth Sebastian

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GUEST OBSERVER
Retail sales posted a 0.5% rise in Oct, mid-way between the consensus forecast of 0.4% and Westpac’s 0.6% (although at 0.549%, closer to Westpac’s call in unrounded terms).That follows 0.4% gains in Aug and Sep.
Store categories recorded a mixed month with solid gains for basic food (+0.6% off a soft Sep), household goods (1.1% but still subdued given housing strength) and a decent bounce for department stores (+3.5% more than reversing the 1.6% drop in Sep. These were partially offset by a dip in cafes and restaurants (–0.6%) and basically flat results for clothing and ‘other retail’.
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The state results ranged high to low from NSW (+0.8% after a quiet Aug-Sep), to Vic &amp; Qld (0.5%, the former after solid gains in Aug-Sep, the latter after back to back declines), SA (+0.3% holding at insipid growth rates), and WA (flat, implying worsening per capita cuts in spending).
The monthly trend sales estimate suggests a slight improvement with annual growth lifting from a 3.6% annualised mid-year to around 3.9%yr currently. 
On a 3mth rolling basis however, annual sales growth is still softening from a peak of 4.6%yr in Q2 to 4% currently. On a broad store-type basis, the slowdown is coming from more moderate growth in household goods retail and a marginal softening in basic food, the contribution from other categories lifting a little. By state, it is mainly centred on NSW &amp; ACT, where strong sales growth had been driving about half of the gains nationally up until earlier this year.
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A significant wedge is starting to emerge between large and small retailers with the latter struggling again (sales down 0.4%yr). Growth is particularly strong for large non-food retailers (+8.9%yr).
October was a poor month for retailers' sales via online channels, with non seasonally adjusted sales up just 3.5%yr, the first time sales in this channel have dipped below non- online retail since the ABS started providing a split in 2013. Over that short period, online retail has typically grown at 51⁄2 times faster than total retail (i.e. 20%yr+).
All up the pace of sales growth remains sub-par, particularly given that retailers should be indirectly benefitting from the lower AUD's boost to Australia's tourism sector and a consistently more upbeat picture from private sector business surveys. Some of this likely reflects continued aggressive price competition in a range of sub-sectors (the monthly figures are nominal and thus include the impact of both volume and price changes). Recent reads from the Westpac-Melbourne Institute Consumer Sentiment survey point to a more positive tone particularly around Christmas spending plans. Dec-Jan may see some better retail results.
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Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Australian retail sales on the up: Westpac's Matthew Hassan

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GUEST OBSERVER
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The latest data on economy-wide spending is best described as encouraging. Spending rose in September but slightly slower than the July and August results. Spending was mixed across sectors and states. But the good news is that the annual rate of economy-wide spending remains above longer-term averages.
While spending was up in the Business services category, it can prove volatile so it will be important to see a follow-up lift in sales. The large Retail Stores category (33% of economy-wide sales) rose by 0.5% in trend terms to be up 7.7% over the year – well above the long-term average growth pace of 5.7%.
There are few reasons to prompt the Reserve Bank to cut rates again. The economy is growing, sales are up, business and consumer sentiment are above average and our largest trading partner, China, is rebalancing from an industrial focus to a consumer spending focus and with some degree of success.
What does the data show?
The Commonwealth Bank Business Sales Indicator (BSI), a measure of economy-wide spending, recorded moderate sales growth in September, although down from previous months. The BSI lifted by 0.3% in September, the slowest growth in 35 months and down from 0.5% gains in July and August. Annual growth of spending eased for the third month to 6.8%, but still above the decade- average of 5.1%.
The seasonally-adjusted measure of sales posted a solid 2.8% gain in September – the strongest growth since May 2013. And annual growth lifted from 5.7% to a 10-month high of 8.9%. 
The Commonwealth Bank BSI is obtained by tracking the value of credit and debit card transactions processed through Commonwealth Bank merchant facilities. And in line with the practice of the Bureau of Statistics with its retail trade data, seasonally adjusted and trend estimates of the BSI are obtained by applying statistical software. The seasonally adjusted and trend BSI results are derived from the same SEASABS statistical software. This allows analysis of the broader underlying trends that may be hidden in the raw data. 
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Across sectors, eight of the 19 industry sectors fell in trend terms in September. But encouragingly, spending in the volatile Business Services category rose by 5.3%. Also notably sales rose at Miscellaneous Stores (up 1.2%), Transportation (up 0.9%), Contracted Services (up 0.8%).
The large Retail Stores sector grew by 0.5% in September after rising between 0.6-0.7% per month over the previous seven months.
Among the weakest sectors in September were Airlines (down 3.6%); Government services (down 1.6%), and Utilities (down by 0.7%). Sales at Personal Service Providers, Service Providers and Mail Order/Telephone Order Providers all fell by 0.2%. 
In annual terms in September, five of the 19 industry sectors contracted including: Utilities, Mail Order/Telephone Order Providers, Automobile and Vehicle Sales and Airlines.
At the other end of the scale, sectors with strongest annual growth in September included: Hotels &amp; Motels; Miscellaneous Stores; Amusement &amp; Entertainment, Service Providers and Wholesale Distributors &amp; Manufacturers.
Sales rose in only four of the states and territories in September: Tasmania (up 1.0%), South Australia (up 0.5%), Western Australia (up 0.4%) and Queensland (up by less than 0.1%). Sales fell the most in Victoria (down 0.8%), ACT (down 0.7%), Northern Territory (down 0.5%) and NSW (down 0.1%).
In annual terms, three states and territories had sales below a year ago in September: Northern Territory (down 8.3%), NSW (down 4.7%) and Victoria (down 1.7%). At the other end of the scale, growth was strongest in Tasmania (up 9.1%) from the ACT and South Australia (up 8.4%), Western Australia (up 7.9%), and Queensland (up 5.9%).
What is the importance of the report?
The Commonwealth Bank releases its Business Sales Index around the 20th each month. The data provides a broader perspective of consumer spending. The Business Sales Indicator includes transactions made at traditional retail establishments such as supermarkets, clothing stores and cafes &amp; restaurants and as such is more comparable to the ABS Household Final Consumption Expenditure released on a quarterly basis. The Business Sales Indicator also covers businesses such as airlines, car dealers and utilities such as water and electricity companies as well as motels, business, professional and government services and wholesalers.
What are the implications for interest rates and investors?
The latest data adds to our view that the Reserve Bank will leave official rates unchanged in coming months. 
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Craig James is chief economist, CommSec and Savanth Sebastian is economist, CommSec. Both can be contacted <a href="https://www.commsec.com.au" target="_blank">here</a>.
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