<p>The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.</p>

<p>Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.</p>

<p>The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.</p>

<p>The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.</p>

<p>Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.</p>

<p>The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.</p>

<p>The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.</p>

<p>Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.</p>

<p>Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.</p>

<p data-end="345" data-start="110">The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.</p>

<p data-end="689" data-start="347">Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.</p>

<p data-end="689" data-start="347">Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.</p>


Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

<p>Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.</p>

<p>The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.</p>

<p>The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.</p>

<p>The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" /></p>

<p>SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.</p>

<p>“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" /></p>

<p>The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.</p>

<p>Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" /></p>

<p>“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.</p>

<p>The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.</p>

<p>The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.</p>

<p>Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a></em></p>


First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.</p>

<p>The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.</p>

<p>The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.</p>

<p>SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”</p>

<p>The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" /></p>

<p>The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.</p>

<p>A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.</p>

<p>Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" /></p>

<p>The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.</p>

<p>Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.</p>

<p>The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.</p>


First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

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<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.</p>

<p data-end="950" data-start="653">Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.</p>

<p data-end="1522" data-start="1309">The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.</p>

<p data-end="1945" data-start="1716">The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.</p>
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<p>[smartcode_project_cta:default project_id=112661]</p>


SIERA kicks off construction at Northcliffe tower Exhale

Wages Growth

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<p>GUEST OBSERVER</p>
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<div class="column">Wage growth is holding near 2 percent and it clearly is a win-win situation. Lower growth of wages has encouraged employers to take on more staff. And while low nominal growth of wages is positive for employers, wages are still growing at a faster pace than prices – positive for consumers.</div>
<div class="column"> </div>
<div class="column">In fact inflation is just 1.3 percent and wages are growing at a 1.9 percent annual pace (although dragged down by the Mining sector). It is clear that real wage gains are still boosting consumer purchasing power.</div>
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<div class="column"><a href="/images/2016/11/17/Screen%20Shot%202016-11-17%20at%208.10.29%20AM.png" target="_blank">Click to enlarge</a></div>
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<img src="/images/2016/11/17/Screen%20Shot%202016-11-17%20at%208.10.29%20AM.png" alt=""><br>The Reserve Bank Governor appears an even more reluctant rate-cutter than the former Governor. Simply, Philip Lowe believes that there is no value in just cut, cut, cutting. The Reserve Bank believes that the economy will continue to grow faster than the ‘speed limit’ and that will serve to lift inflation. And despite the headlines, the Reserve Bank Governor is encouraged by the more prudent behaviour of consumers. There are no warnings on debt, just the conventional wisdom that higher debt means higher risks. </div>
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<p>What do the figures show?</p>
<p>Wage price index</p>
The wage price index rose by 0.4 percent in the September quarter after a 0.5 percent rise in the June quarter. Annual wage growth eased at a record (18-year) low of 1.9 percent (2 percent in original terms) although influenced by just 1 percent growth in mining wages.<br><p>Private sector wages rose by 0.4 percent in the quarter while public sector wages rose by 0.6 percent. Annual growth of private sector wages eased to a record low of 2.0 percent in the quarter. Annual growth of public sector wages was 2.3 percent.</p>
<p>Including bonuses, wages rose by 0.6 percent in original terms in the September quarter to be up 1.7 percent on a year ago.</p>
<p>Private sector wages including bonuses rose by 0.6 percent in the quarter to be up 1.6 percent on a year ago. Public sector wages including bonuses rose by 0.9 percent in the quarter and by 2.3 percent over the year.</p>
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<div class="column">Industries with fastest annual wage growth: Health care &amp; social assistance (up 2.4 percent); Electricity, gas, water and waste services, Education &amp; training and Accommodation &amp; food services (all up 2.3 percent).</div>
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<div class="column">Industries with slowest annual wage growth: Mining (up 1.0 percent); Administrative &amp; support services (up 1.2 percent); Professional, scientific &amp; technical services (up 1.6 percent).<br><p><a href="/images/2016/11/17/Screen%20Shot%202016-11-17%20at%208.11.58%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/17/Screen%20Shot%202016-11-17%20at%208.11.58%20AM.png" alt=""></p>
<p>  Annual wage growth across States &amp; Territories:</p>
<p>NSW, 2.1 percent; Victoria, 2.0 percent; Queensland, 1.9 percent; South Australia, 2.3 percent; Western Australia, 1.7 percent; Tasmania, 2.2 percent; Northern Territory, 2.2 percent; and ACT, 1.9 percent.</p>
<p>New vehicle sales:</p>
According to the Australian Bureau of Statistics (ABS) new vehicle sales fell by 2.4 per cent in October after a 2.4 percent rise in September. Passenger car sales fell by 2.3 percent, while sales of sports utility vehicles fell by 1.2 percent and sales of “other” vehicles (includes utilities, panel vans, cab chassis, goods carrying vans, rigid trucks, prime movers, non-freight carrying trucks, and buses) fell by 4.7 percent.</div>
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<br>Across states/territories in September: NSW (-1.0 percent); Victoria (-1.3 percent); Queensland (-2.8 percent); South Australia (-9.1 percent); Western Australia (-4.2 percent); Tasmania (-2.6 percent); Northern Territory (- 10.9 percent); ACT (-4.4 percent).</div>
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<div class="column">New vehicles sales were up by 1.2 percent over the year. Passenger car sales in October were down by 4.6 percent over the year while SUVs sales were up by 6.9 percent and “other vehicles” were up by 2.7 percent.<br><p>In rolling annual terms, 1,178,688 new vehicles were sold over the year to October. Sales of SUVs (440,060) hit record highs in annual terms, while annual sales of “other” vehicles stood at a record high of 248,710. Sales of passenger vehicles fell to a 20-year low of 489,918 in the year to October.</p>
<p>What is the importance of the economic data?</p>
The Wage Price Index has been compiled since September quarter 1997 and measures quarterly changes in wage and salary costs for employees. The index is based on a representative sample of employees, and includes measures of non-wage costs including superannuation, payroll tax, public holiday and workers compensation. The Wage Price Index is useful in measuring wage pressures in the economy. While strong growth in wages would boost domestic spending, it could also serve to lift employer costs and prices and add to economy-wide inflationary pressures. The wage price index is a measure of hourly pay rates (excluding bonuses).<br><p>The Australian Bureau of Statistics provides seasonally adjusted and trend estimates of industry data. The Federal Chamber of Automotive Industries releases estimates of new vehicle sales on the third business day of the month. The figures highlight the strength of consumer spending as well as conditions facing auto &amp; components companies.</p>
<p><a href="/images/2016/11/17/Screen%20Shot%202016-11-17%20at%208.13.04%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/17/Screen%20Shot%202016-11-17%20at%208.13.04%20AM.png" alt=""></p>
<p>What are the implications for interest rates and investors?</p>
Wages continue to outpace prices. Add in the strong flow of dividends from companies, lower interest rates, cheaper petrol and higher home prices and there is plenty of latent spending power to boost sales at retailers.</div>
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<div class="column">The Reserve Bank Governor has laid out clearly why rates don’t need to go lower. The economy is expected to grow above its ‘potential’ rate, inflation is tipped to lift to the Reserve Bank target band and lower rates could encourage excessive borrowing. </div>
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<p><em>Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</em></p>
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jchancellor-FAypfDUnLy

Upbeat Reserve Bank, wages ahead of prices: CommSec's Craig James

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<p>GUEST OBSERVER</p>
<p>The June quarter Wage Price Index rose 0.5 percent quarter on quarter or 2.1 percent year on year. This was as expected and leaves wages growth at a record low for the Wage Price Index (which dates back to 1997).</p>
<p>Private sector wages are up 2 percent yoy and public sector wages are up 2.4 percent yoy.</p>
<p>By industry, wages growth ranges from just 1.3 percent yoy in the mining sector (the big surprise is that it’s not negative!) to a high of 2.5 percent yoy in the utilities and health care sectors.</p>
<p>By state, wages growth ranges from 1.8 percent yoy in WA to 2.2 percent yoy in NSW and SA.</p>
<p><a href="/images/2016/08/17/image006.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/08/17/image006.png" alt=""></p>
<p><span>Source: ABS, AMP Capital</span></p>
<p>Ultra-low wages growth reflects ongoing spare capacity in the labour market (with unemployment and underemployment at 14.2%) and low corporate revenue growth which is flowing through to low budgets for wages growth. </p>
<p>Continuing record low wages growth means ongoing downwards pressure on inflation as it contains cost pressures for businesses. As such it adds to the risk that inflation will stay below the RBA’s target range for longer than the RBA is currently projecting. </p>
<p>Low nominal wages growth also means ongoing softness in growth in household income which in turn limits consumer spending. Fortunately, real wages are rising because inflation is even weaker, but they are only rising by 0.5 percent yoy and its likely that nominal growth has a greater impact on how households feel.</p>
<p>The continuing weakness in wages growth and the risks it poses to inflation are consistent with our assessment that the RBA will cut interest rates again this year, but probably not until November when we see the cash rate being cut by another 0.25 percent taking it to 1.25 percent.</p>
<p><em><span><a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a></span> 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.</em></p>
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Wages growth drives expectation for one more RBA rate cut: Shane Oliver

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<div class="column"><span style="line-height: 1.3em;">GUEST OBSERVER</span></div>
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<p>The Wide Bay region in Queensland has the highest regional unemployment rate in the nation with the jobless rate averaging 10.5% over the year to October.</p>
<p>Regions with lowest jobless rates: Sydney’s Northern Beaches had a jobless rate of 2.5% in the year to October – the lowest in the nation.</p>
<p>Mining regions suffer: Jobless rates in the Hunter Valley and Mackay have broadly doubled in the past 2-3 years.</p>
<p>The Australian Bureau of Statistics provides regional job market data each month. The good news is that over 90 regions are covered by the statistics. The bad news is that the data is not adjusted for seasonal variations and not provided in an easily digestible format.</p>
<p>CommSec has assessed the average unemployment rates over the twelve months to October and presented tables showing the 15 regions with the highest unemployment rates and the 15 regions with the lowest unemployment rates.</p>
<p>NSW regions dominate both lists – the regions of high and low unemployment. NSW leads the state and territory economic performance rankings but job markets clearly differ markedly across the state.</p>
<p>When assessing national and state economic performance, the variations in performance across regions tend to be downplayed. But while the data may be harder to get and analyse, policymakers need to be mindful of the regions facing the most challenging conditions. Regional Queensland is doing it tough – especially in the north. And mining regions are suffering.</p>
<p>Interestingly, Tasmanian regions don’t feature in either of the lists of high and low jobless rates. Across Tasmanian regions, unemployment was between 6.1- 7.5% over the past year.<span style="line-height: 1.3em;"> </span></p>
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<p><span>High unemployment regions</span></p>
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<p>The region with the highest jobless rate over the past year was Wide Bay with a 10.5% jobless rate over the past year. The good news is that unemployment was recorded at 6.2 per cent in October, below the short-term average and the 15-year average of 8.7%.</p>
<p>The downturn in the coal industry has clearly affected the job market in the Hunter Valley. Over the past year the jobless rate averaged 10.2% – well above the 5.8% average over the past 15 years.<br>The Hunter Valley also has the highest variation between the short and longer term jobless rate – 4.4 percentage points (pp) between the 12-month average jobless rate and 15-year average. Next highest is Murray, NSW (3.5pp); Mackay, Qld (3.1pp); and South-east South Australia (3.1pp).</p>
<p>Other regions with high unemployment are Richmond Tweed, NSW (9.8%), Mandurah, WA (9.1%) and Murray, NSW (9.0%).</p>
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<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">Low unemployment regions</span></p>
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<p>The region with the lowest jobless rate over the past year was Sydney’s Northern Beaches at 2.5%. That is probably not overly remarkable as the jobless rate has averaged 3.0 per cent over the past 15 years.</p>
<p><br>Five other Sydney regions are also on the list of the regions with the lowest jobless rates in the nation.<br><br>Victoria has two entries on the list of low jobless rates: Warrnambool &amp; South West (2.9%) and Melbourne – Inner South (4.5%).<br>Ballarat has the lowest variation between the short and longer term jobless rate. The 12-month average jobless rate is 2.1pp below the 15-year average. Next best is Warrnambool and South West (-1.9pp); and Sydney – South West (-1.4pp).<br><br>What is the importance of the economic data?</p>
<p>The Australian Bureau of Statistics (ABS) provides detailed labour market figures one week after releasing ‘top level’ statistics of employment &amp; unemployment levels across states and territories. The detailed data is useful in identifying broader underlying trends and instructive about the health of the economy.</p>
<p>What are the implications for interest rates and investors?</p>
<p>There are good reasons for the Reserve Bank to maintain an easing bias. While the economy is improving, too many parts of Australia and still struggling with relative high jobless rates – 78 of 99 regions have short-term average jobless rates above longer-term averages. Mining areas are doing it especially tough.</p>
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<div class="column"><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></div>
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