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Consumer sentiment has picked up but remains weak, Westpac says, tipping fears about unemployment levels and continued problems in Europe to cause more headaches for the local economy.

The Westpac Melbourne Institute Index of Consumer Sentiment has recorded its second monthly jump, lifting by 0.4% this month to 97.2 points, from 96.9 in September. The result means there are more pessimists than optimists, and takes the annual fall to 16.9%.
The survey of 1,200 people conducted last week follows a better-than-expected National Australia Bank business survey yesterday, giving rise to hopes the economy is lifting itself out of a funk.
But Westpac senior economist Matthew Hassan says we're far from out of the woods.
"One of the things that has happened in the past few months is consumers are more concerned about their jobs than they were," Hassan says.
"There's an underlying sense that the labour market is not in as great shape as it was."
Hassan says unemployment has already risen faster than anticipated and will likely continue to rise to 5.7% by the middle of next year.
"And what's important is not just the move but the way it's being perceived by consumers," Hassan says, pointing to a survey showing a sharp spike in unemployment expectations and the changes in behaviour that usually come hand-in-hand with job insecurity.
Hassan is also not tipping an end to the European debt crisis, meaning a continuation of the volatility that has prompted dramatic movements in our equity markets and local currency.
"Given the jump we saw in September, to hang onto that gain is better than expected," Hassan says, saying Slovakia's decision to vote against a plan to help stem the European debt crisis this morning suggests that the situation is "getting worse, not better".
Westpac expects a rate cut in either November or December to have a strong ripple effect across the mortgage belt given the official cash rate is high at 4.75%.
The survey showed that the index measuring family finances was up 2.3% for the year, but the family finance index lifted 3%.
In bad news for some retailers, the percentage of people saying it was a good time to buy a major household item fell 5.6%.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/economy/20111012-consumer-sentiment-edges-up-but-employment-worries-remain">SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Consumer sentiment edges up but employment worries remain

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Residential property investment is set to pick up after a disappointing few years, according to a report compiled by QBE Lenders Mortgage Insurance in conjunction with BIS Shrapnel, with Western Australia tipped as the state to record the biggest growth.
The report comes just a few days after separate research from Deutsche Bank noted the amount of investment in residential property has declined over the past year, partly due to the increase in maintenance costs and flattening prices.
The QBE report states the return of investment dollars will be associated with growth in the mining sectors – mostly located on the west coast.
“The return of more substantial investment in the resources and mining sectors is expected to lead to accelerating economic growth, which is projected to drive greater employment and income growth,” the report notes.
According to data from the Australian Bureau of Statistics, the value of loans to investors jumped by 15% in 2009-10. However, through 2010-11 the value dropped by 8% as sentiment fell in conjunction with higher borrowing costs, “as well as creating wider affordability constraints and causing dwelling prices to fall”.
But the QBE report states demand will increase as rates remain stable over the next year, <a href="https://www.propertyobserver.com.au/residential/housing-prices-to-increase-by-about-20-in-perth-and-sydney-by-2014-qbe-lmi-report/2011101151878" target="_blank">with growth in investor activity to pick up in most states.</a>
Loans have fallen in the Northern Territory, Western Australia and Queensland by 30%, 28% and 22% respectively, but QMI says all are in for a “greater rebound” in the value of residential investment loans.
“Underlying demand is expected to benefit, as these states attract higher net inflows of migrants from interstate and overseas due to greater job creation and income levels.”
At the same time, however, dwelling supply has contracted over the past three years in Queensland and Western Australia, “which is expected to translate into a rising efficiency of dwellings over the next three years to June 2014”.
This is also predicted to occur in the Northern Territory as demand outpaces completions and as a result, “these cities consequently offer the best potential for capital growth”.
“Western Australia is forecast to lead the upturn in investor demand, with Queensland lagging due to the relatively weaker state of its local economy before it emerges during the second half in 2012.”
Investor activity is set to improve in 2011-12 in New South Wales as well, with QBE noting that after a post-GFC downturn, real house prices are still below peak 2004 levels, “providing scope for future price growth”.
The report also notes solid rental growth should come due to tight vacancy rates. But investors are out of luck when it comes to Melbourne. The report notes that the value of investor loans is likely to fall away in 2011-12 in Victoria, the only state to grow 3% in 2010-11. 
The report forecasts only a minimal amount of price growth in Melbourne due to constrained affordability and the forecast of rising interest rates to 2014.
“The current high level of residential construction activity in Melbourne will result in a significant addition of new rental stock, relieving vacancy rates and placing downward pressure on rents,” the report says.
Oversupply in Adelaide, Hobart and Canberra will also mean growth is subdued in those cities over the next three years.
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Investor interest to pick up in WA and Queensland: QBE LMI 

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{yoogallery src=[images/stories/october12villa]}
This 15th-century villa near Montepulciano, Italy comprises 4,330 square metres of space spread across three floors. It includes six bedrooms and five bathrooms, three living rooms and a chapel. 
On 2.4 hectares of land, the grounds include immaculate gardens and a swimming pool, and the villa comes with a further 30 hectares of vineyard and olive-producing land.
It is being marketed by <a href="https://www.kwnyc.com/index.cfm?page=details&amp;id=14702" target="_blank">Keller Williams </a>agent Richard Tayar with price hopes of  €38 million ($52 million).
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Italian villa for  €38 million

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Hopes the Australian economy might be snapping out of its funk have been boosted by the better-than-expected National Australia Bank business survey for September, which shows conditions and confidence shrugging off months of weakness.

"While overall conditions remained fairly soft in September, the pickup in activity implies a shift in momentum towards a more expansionary economy, compared to an economy that had previously appeared to be losing traction," the bank says.
NAB attributes the lift in business confidence, particularly in manufacturing, to the sharp fall in the Australian dollar and speculation of a rate cut or two, but says the survey also highlights a "structural" shift towards "mining and service-based industries, and away from traditional manufacturing and discretionary retailing."
It adds the survey "signal[s] caution about the likelihood of monetary policy being loosened in the near term, although the odds of a rate cut are clearly highly following the slowing in global growth and financial market volatility."
The bank says while near-term activity remains soft, it expects a "medium-term rebound in the Australian economy", with gross domestic product growth of 1.9% this year, and 4.1% in 2012, with core inflation at 2.5% over next year 12 months.
"As such, we expect the RBA will need to lift rates by late 2012. However, in the near term, the RBA is more dovish and there is now a 50/50 chance of a reduction in the cash rate in coming months if inflation remains subdued and domestic demand and the labour market weakens further."
NAB says the survey, released this morning, shows that the "variation in business conditions across sectors has become increasingly pronounced since late 2009." It says this divergence "indicates that the Australian economy is undergoing a structural transformation towards mining and service-based industries, and away from traditional manufacturing and discretionary retailing."
Business conditions improved in all industries except personal and recreational services, which remained at strong levels.
While manufacturing conditions lifted over the month, that sector – alongside construction, retail and wholesale – remain at "depressed levels," the bank says. "
Business conditions lifted 5 points, from -3 to +2 index points, after two months of declines but remain lower than the long-term average. Meanwhile, trading conditions lifted 8 points to +5, profitability edged up 4 points to -2, and employment rose 3 points to +3.
Business confidence lifted 7 point to -2 – a result dubbed a "much better outcome than what could have been envisaged given the heightened uncertainty and volatility enveloping the global economy at present."
The largest pick up in confidence was in manufacturing, followed by finance/ property/ business, transport &amp; utilities and retail. The weakest confidence levels were recorded in wholesale (-13) followed by construction (-9).
The survey also showed that labour costs eased, after two months of solid gains.
The survey follows the release of ANZ jobs data yesterday, which showed the number of job ads published during September fell for a third consecutive month.
This article originally appeared on<a href="https://www.smartcompany.com.au/economy/20111011-business-survey-suggests-economy-might-be-stabilising-signal-caution-at-likelihood-of-rate-cut-nab" target="_blank"> SmartCompany</a>.
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Business survey suggests economy might be stabilising, signal caution at likelihood of rate cut: NAB 

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Another month, another set of ugly collapse figures – the number of corporate insolvencies reached their second-highest level in August since records started in the late 1980s, according to the Australian Securities and Investments Commission.

The new figures show that 1,049 companies entered external administration in August 2011, up 14% from 921 in July, and 20% higher from 870 in August 2010.
The numbers, released last week, also show there were 1,531 insolvency appointments in August – an increase from 1,248 in July, and 1,289 in August 2010.
Cliff Sanderson, of company liquidator Dissolve, says the August monthly figures mean there have been six monthly highs so far in 2011 – and the Australian Taxation Office is largely behind the increase.
"At the basis of a lot of them is the ATO," Sanderson says.
"While the petitions they lodge in court are up a bit but not a lot, the ATO's actions cause a lot of directors to move. And as they would – they're often the last to get paid."
Sanderson says while ASIC doesn't break the numbers down into sectors, Dissolve is seeing lots of activity from small retailers and tradies such as builders and plumbers who have about five to 10 employees.
He says while calls to Dissolve in September were lower than in August, the insolvency records won't stop unless the ATO decides to soften its stance against struggling companies.
"I predict moderate further increase throughout the rest of year, but this is largely dependent on the ATO," Sanderson says.
"The ATO put away their pen a few years ago and if they get the same instruction, the numbers will turn around, but it's a fake turnaround."
"If the ATO continues to plough through its backlog, the numbers will increase."
State-by-state, Sanderson says Tasmania and Western Australia are "looking bad," collapses in New South Wales have reached a plateau, Victoria is up a bit, and calls from Queensland are on the up.
"Based on indicators over the last couple of months, the effects of the floods are starting to come through," Sanderson says.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/economy/20111010-insolvencies-hit-second-highest-level-in-history-in-august">SmartCompany</a>.
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Insolvencies hit second-highest level in history in August

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{yoogallery src=[images/stories/october11hulkhogan]}
Mid-1990s WWF star Terry Bollea - known to all and sundry as Hulk Hogan - has more than cut the asking price for his Florida mansion by more than half. Hogan initially put the five-bedroom, eight-bathroom property onto the market with price hopes of US$25 million in 2006. Finding no buyers, he removed it from the market until 2009, when it was listed with price hopes of US$ 13.9 million. In February 2010 Hogan wanted US$10. 9 million, and now the reality star is willing to settle for US$8.85 million. 
Hogan bought the property in 1992 for $2 million, and it featured in the reality show Hogan Knows Best.
The property is on a hill and overlooks the Intercoastal Waterway to the Gulf of Mexico. It comprises 1,580 square metres of living space, a dock with two boat lifts, and of course, a massive gym. It also includes a four-room guest apartment. The property is being marketed by Martha Thorn of <a target="_blank" href="https://www.coldwellbanker.com/property?propertyId=209219123&amp;mode=detail&amp;brandType=CB">Coldwell Baker Real Estate</a>.
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Hulk Hogan wrestles his asking price down to size

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A new research note from Deutsche Bank has expressed a number of concerns about the Australian housing market, and has forecast an 18.4% decline in housing starts during the 2012 financial year, based on an assumption interest rates will fall by 50 basis points.

The note come just as the International Monetary Fund has released its own report, claiming that despite the enviable status of the Australian economy it is under threat from a housing market that could be as much as 15% over valued.
DB analyst Emily Behncke wrote in the note that if the RBA cuts interest rates by 50 basis points over the next year, and the world economy does not fall back into recession, housing starts may fall 18.4% in the 2012 financial year.
The news comes as the construction industry is continuing to suffer, with many SMEs collapsing as work dries up.
Behncke highlights that Brickworks, Boral and CSR have all downgraded their forecasts for housing starts by about 10%, and that housing prices remained most flat in the year to June 2011, and that the average median house price is seven times the average family income, although this has fallen slightly from last year.
"We believe our forecasts are at the lower end of the consensus range based on a combination of forecasts, (BIS, HIA), which forecast an average rate of 145,100 and 162,700 in 2011-12 and 2012-13 respectively."
"Hence, DB forecasts for 2011-12, and 2012-13 dwelling starts are -12.3% and -14.1% respectively below average forecasts by BIS and HIA."
There will also be a shift in the types of houses developed. There will be an increase in the number of multi-level apartment buildings, with construction already taking up 38% of total building starts, despite the historical average set at 30%.
There is also a shift from investors and first home buyers to upgraders, who will move up to bigger and better homes, the note states. The value of loans from investors has fallen 8.1% in the past year.
"Given first home buyers have also withdrawn from the market – currently at 15.2% of housing finance – the only strong sector is the move-up buyer."
"Annualised move-up buyers have increased 1.9% month-on-month and 15.1% year-on-year in July 2011."
The note explains the after tax cost of maintaining investment properties based on current median house prices on average rents was 2.3% of the purchase price in the June quarter, equivalent to 2006 levels.
"We note the investment property equation is most expensive in Victoria (2.6%) in June 2011. As a result, we are not surprised that investor finance figures show a reduction to investor participation of -1.1% month-on-month and -8.1% year-on-year in July 2011."
And while the note observes housing prices haven't actually fallen, they could do so over the next year. But it also suggests that the RBA may cut interest rates by 25 basis points in the first quarter of 2012, which would potentially offset any falls.
"Affordability declined for all states in comparison to the historical average basis in QJ11 (however, improved marginally in three states on a quarter-by-quarter basis)."
"Cash rate has risen 175 basis points since September 2009. Given our expectation the cash rate will decline 50 basis points in the next 12 months, we would expect affordability to improve."
It also notes that as long as clearance rates remain above 50%, prices are excepted to remain stable.
This article originally appeared on <a href="https://www.smartcompany.com.au/finance/20111010-deutsche-bank-report-predicts-housing-starts-to-fall-18-4-in-2012" target="_blank">SmartCompany</a>.
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Housing starts to fall 18.4% in 2012: Deutsche Bank

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{yoogallery src=[images/stories/october10castle]}
Begun in the ninth century, this Medieval castle in Turin, Italy, is on 35,000 square metres of period gardens and includes 30 bedrooms and 47 bathrooms. It includes a Romanic chapel from about 850AD and a courtyard with the evocatively named Fountain of Mysteries.
King Arduino, of the Bishop of Ivrea and the Holy Roman Emperor Otto I have all at one point owned the castle.
It was restored in 1800 by architect Alfredo D’Andrade, and further restoration works were undertaken in the 1990s. It has been listed for sale through <a href="https://www.sothebysrealty.com/eng/sales/detail/180-l-682-4000014710/extraordinary-medieval-castle-torino-pi-10018" target="_blank">Sotheby's International</a> agents Dinetta Spinola and Gianluca Puracchio with price hopes of €45 million. But that could look like spare change compared with the electricity bill - all 30 bedrooms have air-conditioning, and the castle is heated throughout.
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Italian Medieval castle listed for €45 million

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12/30 Mater Street, Collingwood, VIC, 3066
<img style="border-style: initial; border-color: initial;" src="/images/stories/materst.jpg">
This two-bedroom, two-bathroom apartment comes with a car space and storage cage and is tenanted until the end of March at $502 per week. Belinda Lindsay of <a href="https://www.collinssimms.com.au/?pagecall=property&amp;propertyID=1854668" title="Collins Simms" target="_blank">Collins Simms</a> sold it at auction on Saturday, October 8 for $570,000. It had pre-auction price hopes of $490,000 plus. Lindsay says bidding was intense, with five potential bidders and three active bidders on the day. The sale price reflects a gross rental yield of 4.6%, higher than the indicative gross rental yield of 4.3% for Collingwood units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. 
For more on gross rental yields and prices in Collingwood, see the <a href="/news">RP Data suburb page.</a>
For more investment prospects that went to auction this past weekend, see pages 2 and 3.
 
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3/16 Morven Street, Yarraville, VIC, 3013
<img style="border-style: initial; border-color: initial;" src="/images/stories/morvenst.jpg">
This three-bedroom townhouse opposite parklands is currently tenanted at $474 per week to tenants whose lease expires in February, though <a href="https://www.sweeneyestateagents.com.au/profile.php?clientid=sweencp&amp;cat=sales&amp;propertyid=3714044" target="_blank">Sweeney Estate Agents'</a> Dean Johnson says the tenants would be willing to leave earlier if needed. Johnson is marketing the property with price hopes of $549,000 plus. The property was passed in at auction on Saturday, October 8 on a single bid of $520,000. The property's reserve is $549,000. If it sells for $549,000 it would reflect a gross rental yield of 4.5%, far higher than the indicative gross rental yield for Yarraville of 3.3%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. 
For more infomation about yields and prices in Yarraville, see the <a href="/news">RP Data suburb page.</a>
 
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4/ 30 Elm Street, Hawthorn, VIC, 3122
<img src="/images/stories/elmst.jpg"> 
This two-bedroom Hawthorn unit has been leased to the same tenant for more than six years. The tenant is on a month-to month lease at $320 per week and is keen to stay in the property. <a href="https://www.structuredco.com.au/sales" target="_blank">Structured Property</a> agent John Rombotis says that rent is under market value, and it could be rented for between $370 and $380 per week. Rombotis is marketing the property with price hopes of $420,000 plus. At its current rent, that would reflect a yield of 4%, about the same as the indicative gross rental yield for Hawthorn units of 4.1%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The property went to auction on Saturday, October 8 at 11.30am. 
For more on yields and prices in Hawthorn, see the <a href="/news">RP Data suburb page</a>.
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Weekend yield watch: Collingwood sale secures yield of 4.6%

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Replacing negative gearing with a new land tax as recommended in the Henry tax review is one idea to come out of the second day of the Tax Forum.
Property bodies, academics and welfare groups traded blows on whether tax concessions for property investment helps to boost housing supply, skews investments in property and costs the government more than it delivers.
Former ANZ chief economist Saul Eslake, now with the Grattan Institute, says Australia’s negative gearing system is the world’s most generous.
“When you talk to foreigners about this you have to explain what negative gearing is,” Eslake told the forum.
Responding to commentary that negative gearing helps housing supply and puts downward pressure on rents Eslake said most people who use negative gearing buy established housing, not new supply.
“The problem is with 1.7 million taxpayers doing it, that’s why both sides of politics were in a race to rule it out after the Henry review,” he says.?
“And you can only achieve reform of this nature with bipartisan support.”?
Nicola Ballenden from of the Brotherhood of St Laurence said the charity supports the recommendations in the Henry review in equalising the tax treatment of investment income.?
“And in that absence ... we should talk about limiting it,” she says, describing the practice as inequitable in two ways – people on lower incomes are not only unable to use the tax concessions but they have further competition for housing.
Shane Goodwin of the Housing Industry Association said removing negative gearing “doesn’t necessarily improve the way we treat other forms of investment".?
“Before we start tackling things like negative gearing and capital gains tax, we need to fix the supply constraints,” Goodwin says.
He also says negative gearing adds to new housing supply, is largely illiquid, comes with large transactions costs and receives similar treatment to other forms of investment.
“If we going to remove negative gearing, it can’t be in isolation,” Goodwin says.
Judith Sloan of National Seniors Australia cautioned against “Pollyanna” solutions and warned that changing the taxation of property investments would provide complications for investors, who by and large are not rich and who have made their investments in good faith based on parameters set at the time".
“There would be very significant consequences for people who have average incomes and are trying to make arrangements for their retirements,” Sloan says.?
Eleri Morgan-Thomas from Mission Australia saysthe charity is seeing “long-term structural problems with the rental market” notwithstanding the recent flattening of prices and expects supply to continue to be a problem.
Pointing to revenue foregone from negative gearing Morgan-Thomas proposed a public/private partnership where some of the income foregone in income tax is put into a social investment bond.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/tax/20111006-tax-forum-push-to-replace-negative-gearing-with-land-tax">SmartCompany</a>.
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Tax Forum: Push to replace negative gearing with land tax

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

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Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

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While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
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Cassidy Knowlton

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