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What do you reckon given below? I don't believe Islabikes are an option in Australia, I saw a suggestion they don't comply with Australian standards. I like the look of the ByK E-350, which amazingly has 18 inch wheels despite being designed for 4-6 year olds, so as well as being light and hopefully more enjoyable, I reckon it will last my daughter longer than a 12 inch saving money in the long run.
http://www.bykbikes.com/kids-bike-range/e350-kids-bike.html
My daughter is nearly 4 but short for her age, maybe 95cm if she'd ever let us measure her properly. I got her a Specialized Hotwalk balance bike when she was 3 but she doesn't like how it falls over when she tries to turn around in a tight space. She's since tried a couple of 12 inch pedal bikes from Spesh and Malvern Star and was pedalling within minutes with the stabilisers fitted. She was able to ride a 16 inch as well, but the bars were adjusted back extremely and she didn't find it as comfortable.
Cheers.
Vitus from CRC.