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Vailele, one of Sydney's most tightly held riverfront homes, has been listed for sale by the Salter family.
The historic sandstone home in Woolwich has only had five owners since its 1892 construction. It last traded for $3 million, when it was 1993's top price on the North Shore water's edge, and before that in 1979 when bought by abattoir owner Trevor Wadland for $375,000.
It is long remembered as the location of scenes from the Network Ten mini-series, Return to Eden, the 1983 television drama starring Rebecca Gilling, James Reyne and Wendy Hughes.
Steeped in history, the three storey home once hosted Scottish novelist Robert Louis Stevenson as its guest, who lived out some of his later days in the garden cottage while based at Samoa.
Stevenson even gifted two of the heritage palm trees that sit in the garden.
Ken Jacobs at Christie's International is seeking around $24 million to $26 million for the home which he says offers the most magnificent example of late 19th century sandstone architecture.
Under its slate roof there's original fireplaces, ornate ceiling roses and stained glass windows along with intricate turned timber posts on the marble tiled verandahs still intact after its two year restoration.
The home's named derives from the Samoan term for 'running water.'  An original sandstone water bubbler and heritage-listed sandstone well have been revived, the latter irrigating the grounds. 
The peninsula's most recent trophy home saw was earlier this year when the actor Cate Blanchett and her playwright husband Andrew Upton have sold Bulwarra.
The historic 1877-built residence - restored and extended on its 3642 sqm Hunters Hill block - was sold by Christie’s International.
Vailele has eight bedrooms, seven bathrooms, a study, an elegant music room. 
There's an entire floor dedicated to high-tech entertaining, including a home theatre.
Its heritage billiard room comes with cedar-panelled walls, domed ceiling and a bar.
It comes with a 10 car garage at the cul-de-sac location, a 3084 sq m estate on the corner of Gale Street and The Point Road.
With climbing roses, lavender, frangipanis and a vegetable patch, the grounds come with an infinity pool and spa, with lit terraces, verandahs, and a gazebo. 
This article first appeared in the Sunday Telegraph.
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Woolwich trophy home, Vailele's rare return to market

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The glamour Geelong AFL couple, Jimmy Bartel and his wife Nadia and son Aston, the new Essendon captain Dyson Heppell, St Kilda star Leigh Montagna and the Western Bulldogs midfielder Mitch Wallis were all sideline spectators in the weekend Albert Park auction crowd.
They, along with 300 others on <a href="https://www.realestate.com.au/sold/property-house-vic-albert+park-124620682" target="_blank">Park Street</a> (above), saw three bidders compete for the big-ticket four-bedroom Victorian home.
Marshall White agent Oliver Bruce asked for an opening bid of $3.5 million but was immediately met with a $4 million offer from the eventual buyer. 
It soared about $700,000 over reserve selling at $4.735 million. Bruce told the Herald Sun that the house was “the most inspected property” he’d ever marketed.
It traded in 2013 at $2.31 million, before its rear extension and renovation.
Melbourne had the cheapest and dearest reported weekend auction sales.
A four bedroom, <a href="https://www.realestate.com.au/property-house-vic-malvern-124595406" target="_blank">three level Malvern</a> home (below) sold for $5,075,000. The opening bid was $100,000 over the $4.3 million reserve.
<img src="https://www.urban.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%208.28.56%20AM.png" alt="">
The Spring Road property, with views to the Dandenong ranges, comes with a home theatre, wine cellar, and lift access to the six car garage.
The property was marketed through RT Edgar as the latest offering from home builders R &amp; K Developers.
A two bedroom <a href="https://www.realestate.com.au/property-apartment-vic-mernda-124510094" target="_blank">apartment at Mernda</a>, which has been a $310 a week rental in the City of Whittlesea suburb, fetched $245,000.
<img src="https://www.urban.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%208.29.59%20AM.png" alt="">
Offered through Ray White, the Rowell Drive unit fetched less than its $295,000 off the plan price.
The auction price guidance had been $240,000 to $260,000 for the 70 sqm ground floor apartment that was completed in 2012.  
Sydney had the highest bid property, but the <a href="https://www.domain.com.au/124-126-paddington-street-paddington-nsw-2021-2013355286" target="_blank">combined Paddington terraces </a> (below) did not sell, passed in at $8.1 million.
<img src="https://www.urban.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%208.31.29%20AM.png" alt="">
Set on 394 sq m on Paddington Street, there are 520 sqms of interior living space.
At Longueville, there was a $5,050,000 sale of the 1898 Federation <a href="https://www.realestate.com.au/sold/property-house-nsw-longueville-124603454" target="_blank">four-bedroom home, Nirvana</a>, (below) owned by the late obstetrician and gynaecologist Rod Macdonald and his widow Robin.
<img src="https://www.urban.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%208.32.24%20AM.png" alt="">
The home sat on almost 1600 sq m on Mary Street. 
Back in Melbourne, <a href="https://www.realestate.com.au/sold/property-house-vic-toorak-124539974" target="_blank">the Toorak home</a> of late socialite Lady Susan Renouf (below) sold in a post-auction negotiations for around its quoted price of $5 million.
Across the capital cities, the number of properties taken to auction increased dramatically, with 3,232 auctions held, according to CoreLogic’s latest report.
 <img src="https://www.urban.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%208.34.03%20AM.png" alt="">
It was significantly higher than over the same weekend in previous years, with auction volumes generally reaching their seasonal peaks around March.
"The record highs for the number of auctions were confined to the Sydney and Melbourne markets, where auction numbers were the highest on record for the month of February," Kevin Brogan at CoreLogic noted.
Despite the high auction numbers for February, the combined capital city clearance rate also reached a new record high over the year to date.
Some 78 per cent of auctions recorded a positive result, which is higher than the 71 per cent last year, across its lower volume of 2,700 auctions.
"Overall activity has increased week-on- week, with volumes increasing across all the capital cities, with clearance rates also rising in most capital cities with the exception of Canberra and Perth, where clearance rates fell over the week," Kevin Brogan said.
Melbourne's clearance rate rose to 80.1 per cent, up from 75.7 per cent last weekend and remaining above the clearance rate for the city one year ago of 74.8 per cent.
Melbourne saw a substantial increase in volumes, with 1,613 auctions held, higher than the 1,091 held last week and also higher than a year ago when there were 1,347 Melbourne auctions.
Of the 9 individual Melbourne sub-regions, the strongest performer, in terms of clearance rate was the Outer East region where 87 per cent of  auctions were successful.
Sydney’s preliminary auction clearance rate increased to 81.5 per cent.
Last week, Sydney’s clearance rate was 80.6 per cent, while one year ago results sat at 72.1 per cent.
This week volumes were higher, up to 1,169 from 856 last week and also higher than what was seen over the same week last year with 919 Sydney homes.
The Inner West sub-region of Sydney has shown the strongest performance with 90.2 per cent of the 61 reported results selling.
There were 174 Brisbane homes taken to auction, with 99 results reported so far showing a preliminary clearance rate at 63.3 per cent, up from 47.1 per cent last week and higher than one year ago, when 57.4 per cent of the 179 properties taken to auction were successful.
Brisbane's priciest was when the restored home, <a href="https://www.propertyobserver.com.au/%20http:/www.realestate.com.au/property-apartment-qld-ascot-124074438%20" target="_blank">Arden at Ascot</a> (below) sold for $3.55 million through Ray White. The unrenovated 1913 home cost $2.25 million in 2006, then it was expanded to its 1460 sqm offering with an $800,000 purchase of a neighbouring 400 sqm block in 2013.
<img src="https://www.urban.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%208.35.24%20AM.png" alt="">
Adelaide saw a preliminary clearance rate of 76.3 percent, with 80 reported results across a total of 121 scheduled auctions.
In comparison, over the previous week Adelaide’s clearance rate was 65.8 percent and 64 percent one year ago.
There were 46 Perth auctions this week, with a preliminary clearance rate of 21.4 percent. Last week, 31.0 percent of the 42 auctions held were successful.
Across Canberra a total of 100 auctions were held this week, compared to 92 last week and 75 at the same time last year.
Canberra’s preliminary clearance rate of 77.3 percent is lower than the prior 80.2 percent result.
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AFL stars line up as spectators at Albert Park auction  

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<img src="https://counter.theconversation.edu.au/content/73355/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">GUEST OBSERVER
The two central banks that matter most for Australians - the Reserve Bank of Australia (RBA) and the US Federal Reserve (the Fed) - released minutes from their latest meetings this week. And although there were not a lot of surprises, there was a fair bit of detail about what we can expect on interest rates going forward.
The Federal Open Market Committee’s (FOMC) main message was unmistakable -expect interest rate rises, and expect them sooner rather than later:
Many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon if incoming information on the labor market and inflation was in line with or stronger than their current expectations or if the risks of overshooting the committee’s maximum-employment and inflation objectives increased.
and that they:
continued to see only a modest risk of a scenario in which the unemployment rate would substantially undershoot its longer-run normal level and inflation pressures would increase significantly.
This is exactly what markets have been expecting, and it seems clear that the balance of risks is no longer that the labour market is too weak or inflation too low, but that the Fed might wait too long to continue its path of rate rises.
The really big unknown is how the Fed goes about unwinding a good chunk of its balance sheet, which involves US$2.64 trillion (with a “T”) of treasury bonds that were purchased as part of its effort to stimulate the economy in the wake of the financial crisis. The Fed also holds around US$1.75 trillion of mortgage-backed securities (“MBSs”).
The natural way to unwind this is by not reinvesting those funds when the securities mature. The Fed gets its money back and doesn’t purchase new treasuries or MBSs.
But it’s more complicated than that. New post-crisis capital rules require commercial banks to keep a large amount of reserves sitting at the Fed. This is now around US$2 trillion. The Fed has to match this liability with assets, like treasuries.
Nobody knows, but my guess is that the Fed shifts MBSs to treasuries over time, but has to keep a large asset side of the balance sheet. This suggests that maybe the whole balance sheet unwinding problem may not be as significant an issue as first thought. But this is genuinely unchartered territory.
At home, the RBA minutes confirmed the ongoing dilemma governor Philip Lowe faces. Like his predecessor, Glenn Stevens, Lowe is trying to manage: unemployment, the Aussie dollar exchange rate, business investment, overall growth, inflation and housing price stability all at the same time, but with only one instrument: the cash rate.
To see this, just look at the opening sentences of the long section of the RBA minutes titled “Considerations for Monetary Policy”. They read as follows:
In considering the stance of monetary policy, members viewed the near-term prospects for global growth as being more positive, although recognised the risks from policy uncertainty in the medium term… Domestically, the economy was continuing its transition following the end of the mining investment boom… Non-mining business investment was also expected to gain some momentum…
Conditions in housing markets varied considerably across the country… Inflation outcomes for the December quarter were much as had been expected and there had been very little change to the forecast for inflation…Labour cost pressures were expected to build gradually from their current low levels…
Wow. That’s a whole lot of targets to try and hit with a single (non-magic, non-silver) bullet. No wonder Dr Lowe has now taken to giving speeches that essentially plead businesses to invest.
It hasn’t quite gotten to “there’s never been a better time to be a business in Australia”. But close. It may, however, be that it’s never been a tougher time to be a governor of the RBA.
Richard Holden is professor of Economics and PLuS Alliance Fellow, UNSW and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>.
 
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There’s never been a tougher time to be a central banker

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GUEST OBSERVER
Supporters and critics alike agree that Donald Trump says many contradictory things, and that's part of the problem.
Most Australian property investors are confused. They have no idea how his presidency will affect their investments.
Well, I frequently get asked about Trump, and I have some answers for you. The Chinese investors we work with ask us often about the new U.S. President — and other events in the 89 countries where we offer listings for them to purchase. 
Here, I share our three most important insights on managing real estate investments in the era of President Trump.
Buy dependable value
Trump's White House has been described by its own allies as "chaotic" and as suffering from "obvious dysfunctionality." The United States is torn between those who ferociously support him and those who are just as vociferous in their rejection of everything he stands for.
Some of this turmoil is making its way to Australia. Cory Bernardi and Pauline Hanson are among those who have announced they hope to reorient Australian politics and society in a more populist fashion. Many promise to resist.
Politics is in ferment, and politics does affect the economy. A Parliament in turmoil can't pass economic reforms, infrastructure plans or jobs bills.
In this environment, a smart property investor will look for assets with enduring value. Now is not the time to speculate on quick capital gains.
Be strategic and play it safe with a long-term investment in suburbs that have good access to transit, shopping and quality schools. If you negatively gear, try to keep your negative cash flow well within manageable territory — in case the worst happens, like losing your job or facing unexpected, large expenses.
Find opportunities amidst the confusion
We all hope President Trump doesn't start a trade war (or any other kind of war). If he does create market turmoil, however, smart investors will look for opportunities among the confusion.
Warren Buffett's famous advice applies here: be greedy when others are fearful and fearful when others are greedy.
Remember, Trump can serve as President for only four years, or eight if he is reelected. And, as we have seen with the last several Prime Ministers, even Australian politicians come and go.
The Commonwealth, on the other hand, is a prosperous country with a swelling population that is relatively enlightened, innovative and industrious. Whatever the short-term vicissitudes, it is impossible to imagine this country being poorer or smaller in 10 years.
If the current political disputes hurt confidence and undermine the market, that is your moment. Seek to find buying opportunities whose price has suffered, but which look likely to revert to trend in the medium term.
Look to Asia
Ours has been branded the China Century for a good reason. China already has the world's largest total population, the world's biggest middle class and the world's most numerous ultra-high-net-worth demographic.
Chinese are the biggest property investors in Australia, the USA, Canada, the UK, New Zealand, Thailand, Singapore, Hong Kong, Japan and many other countries.
Australia exports more to China than to any other country. China is our largest source of international students, our most valuable tourism market, a major source of foreign direct investment and our largest agricultural goods market. 
If you work in the property industry, then you need a China strategy. If you invest in property, then you need to understand how Chinese buying trends affect your investment.
These are my three tips for succeeding at property investment during this unpredictable moment in time.
Gavin Norris is head of Australia for Juwai.com, the No. 1 Chinese international property portal and can be contacted <a href="https://www.juwai.com" target="_blank">here</a>.
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What does Donald Trump mean for your property investments? Gavin Norris

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Opening Statement to the House of Representatives Standing Committee on Economics by Philip Lowe, Governor, Reserve Bank.
Thank you for the opportunity to appear today to explain how we see the Australian economy as well as to discuss some of the work we have been doing at the Reserve Bank.
At the equivalent hearing a year ago, the tone of the global economy was pretty sombre. We had seen turbulence in Chinese financial markets. Commodity and equity prices were declining. Some overseas central banks had pushed their interest rates into negative territory. And global growth forecasts were being lowered again.
Twelve months on, the global economy looks to be on a firmer footing. In China, the growth target for 2016 was achieved despite the nervousness early in the year. In the United States, growth has strengthened and the economy is operating at close to full employment. And in Europe, the recovery is continuing, although it has a fair way to go in some countries. The Federal Reserve increased interest rates in December and further rises are expected this year. Elsewhere in the major economies there is no longer an expectation of further monetary easing, although some central banks are still continuing to expand their balance sheets. 
Commodity prices have moved higher. Long-term bond yields have also increased and most investors are no longer paying governments to look after their money for 10 years. Headline inflation has risen in most countries, and is much closer to target than it has been for some years. And forecasts for global growth have been revised up over recent months. This is the first time this has happened for quite a few years.
So, overall it is a more positive picture. That is the good news. There are, though, still a number of significant risks on the horizon.
In China, the growth target was achieved last year partly through a further build-up in debt especially to finance infrastructure investment and property development. This strategy was clearly helpful in the short run and it supported commodity prices, and Australia has benefited from that. But it runs counter to the Chinese authorities' goal of addressing the high levels of debt and getting domestic finances on a more stable footing. 
So we can't be sure about the longer-run implications. Recently, the Chinese authorities have taken some steps to tighten things up a bit. They have also been managing a depreciation of their currency against the US dollar and increased capital outflows as Chinese citizens send funds abroad. It's a difficult balancing act.
Turning to the United States, we can't be confident about how things will play out. It is possible that the new administration's policies could boost US and global growth. More infrastructure investment, tax reform and deregulation could all work to that end. On the other hand, if there were to be a retreat from the open international trading system, that would be damaging to the global economy, including to us here in Australia. We have much to lose if this were to occur. It is too early to tell which way things will go. Like others, we are in ‘wait and see’ mode.
In Europe, while there have been no major problems for some time, there are still a number of faultlines. Some of these could be put under pressure in the year ahead, in many cases depending on the outcomes of elections.
So there are still a number of risks in the global economy, although they no longer seem tilted to the downside. There are reasonable scenarios in which global growth picks up further and other scenarios in which it disappoints again.
I would now like to turn to the domestic economy.
A year ago, we were expecting the Australian economy to grow by around 2½–3 per cent in 2016. We haven't yet received the final figures for the year, but the outcome is likely to be lower, at around 2 per cent. The September quarter was surprisingly weak, largely reflecting temporary factors. We are not expecting a repeat of this for the December quarter, with most of the available indictors suggesting a return to reasonable growth in the quarter.
Looking forward, we still expect the Australian economy to grow by around 3 per cent this year and next. For most of the time since 2012 we have been facing headwinds from declining mining investment and falling commodity prices. Then, around the middle of last year, the headwind from falling commodity prices turned into a gentle tailwind as commodity prices lifted. And the headwind from falling mining investment should blow itself out before too long as mining investment returns to more normal levels. We will also benefit over the next few years from large increases in production of liquefied natural gas.
Economic conditions continue to vary significantly across the country. They are weaker in those parts of the country adjusting to the lower levels of mining investment and they are stronger elsewhere. Nationally, measures of business conditions have picked up noticeably recently. For some time we have been waiting for a lift in non-mining business investment. It has been a long time coming. Encouragingly, in New South Wales and Victoria we have now seen a reasonable pick-up in investment. However, we are yet to see this in most other states, where the unwinding of the mining investment boom continues to affect the overall business climate. With the decline in mining investment coming to an end, we hope to see a broader pick-up over time.
One area that we are watching closely is the cycle in residential construction activity, as the upswing has helped support the economy over recent years. The rate of new building approvals has slowed, but there is a large amount of work still in the pipeline, particularly for apartments, so we still expect some further growth in this part of the economy this year. There has, however, been some tightening in conditions for property developers in some markets.
In the broader housing market, the picture remains quite complicated. There is not a single story across the country. In parts of the country that have been adjusting to the downswing in mining investment or where there have been big increases in supply of apartments, housing prices have declined. In other parts, where the economy has been stronger and the supply-side has had trouble keeping up with strong population growth, housing prices are still rising quickly. In most areas, growth in rents is low. And recently we have seen a pick-up in growth in credit to investors, which needs to be watched carefully.
In terms of consumer prices, a year ago we had expected the inflation rate to remain above 2 per cent. It has turned out to be lower than this last year, at around 1½ per cent. Wage growth has been quite subdued, reflecting spare capacity in the labour market and the adjustment to the unwinding of the mining investment boom. We anticipate the subdued outcomes to continue for a while yet. Increased competition in retailing is also having an effect on prices, as is the low rate of increase in rents.
We do not expect the rate of inflation to fall further. Our judgement is that there are reasonable prospects for inflation to rise towards the middle of the target over time. The recent improvement in the global economy provides some extra assurance on this front. Headline inflation is expected to be back above 2 per cent later this year, boosted by higher prices for petrol and tobacco. The pick-up in underlying inflation is expected to be more gradual.
Since we appeared before this Committee last September, the Reserve Bank Board has kept the cash rate unchanged at 1.5 per cent.
At its recent meetings the Board has been paying close attention to the outlook for inflation as well as two other issues: trends in household borrowing and in the labour market.
One of the ways in which monetary policy works is to make it easier for people to borrow and spend. But there is a balance to be struck. Too much borrowing today can create problems for tomorrow, because debt does have to be repaid. At the moment, most households with borrowings do seem to be coping pretty well. But the current high level of debt, combined with low nominal income growth, is affecting the appetite of households to spend, and we are seeing some evidence of this in the consumption figures. The balance that is required is to support spending in the economy today while avoiding creating fragilities in household balance sheets that could cause problems for the economy later on. This is also something we need to watch carefully.
Trends in the labour market are also important. As in the housing market, the picture in the labour market varies significantly around the country. Overall, the unemployment rate has been steady now for a little over a year at around 5¾ per cent. In a historical context this would have been considered a good outcome, although, today, a sustainably lower unemployment rate should be possible in Australia. The other aspect of the labour market that is worth noting is the continuing trend towards part-time employment. Over the past year, all the growth in employment is accounted for by part-time jobs. There is a structural element to this, but it is also partly cyclical. We expect that the unemployment rate will remain around its current level for a while yet.
The Reserve Bank Board continues to balance these various issues within the framework of our flexible medium-term inflation target, which aims to achieve an average rate of inflation over time of 2 point something. Our judgement is that the current setting of the cash rate is consistent with both this and achieving sustainable growth in our economy. We will continue to review that judgement at future meetings.
I would like to turn to some other aspects of the work we do at the Reserve Bank.
In the area of payments, the Reserve Bank is continuing to work with industry on the development of the new payments infrastructure that will allow us all to move money around and make electronic payments more easily. The Bank is building part of the infrastructure that stands at the centre of this new system that will allow funds to be exchanged instantaneously so that customers can have very quick access to their funds. Our work is on schedule and is now being used in industry testing. Financial institutions are also working hard on their internal systems so that customers can take advantage of the new system. Developments look to be on track to allow the first payments to be made through this new system towards the end of the year.
A related focus of the Payments System Board is the important role that new technologies can play in promoting efficiency and competition. In recent meetings the Board has discussed the opportunities that distributed ledger technology could offer in the payments system and in financial market infrastructures. And it is also interested in the potential for fintech to deliver improved customer experiences. The Board is therefore taking a keen interest in the work being done by the Australian Payments Council on digital identity and customers' access to their banking and payments data.
I hope that you have all come across the new $5 banknote, which was issued by the Bank from early September last year. The note was well received by the community. You might also have noticed that last Friday we released the design for the new $10 banknote. Like the new $5, the new $10 will have world-leading security features, including the clear top-to-bottom window and a rolling colour effect that changes as the banknote is tilted. It will also have two raised bumps to assist people with vision impairment. Just like the current $10 note, the new note will feature two of Australia's most famous writers, Dame Mary Gilmore and Banjo Paterson. The printing presses are busy printing the new notes and they will be issued from September this year. We are also finalising the design of the new $50 banknote, which we plan to issue next year.
One other matter that I would like to bring to your attention is that we are in the process of commissioning an external review of the efficiency of our operations. We want to make sure that we are continuously improving as an organisation and we are seeking outside assistance to identify opportunities for improvement. The review will be focused primarily on operational and administrative matters and not on our policy frameworks. It will commence within the next month and I will be in a position to share the key conclusions with the Committee when we meet later in the year.
Finally, at previous hearings members of the Committee asked about the number of women at senior levels of the Reserve Bank. I am pleased to be able to report that we have made further progress here. Of the three assistant governors responsible for monetary and financial policies at the Reserve Bank, two are women. And women run over a third of the departments in the Bank, including those responsible for the Bank's economic analysis function and for the implementation of monetary policy. So it's quite a big change from days gone by when almost all of these important positions were held by men. 
I want to highlight these changes in the hope that they might provide some inspiration to women who are thinking of studying economics, finance and business. There are fantastic career opportunities out there and it would be great to see more women studying these disciplines, and perhaps considering a career at Australia's central bank. We are currently working on some initiatives to encourage this, at both the school and university level.
 
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Most households with borrowings seem to be coping pretty well: RBA's Philip Lowe

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John Lancken, whose film work has secured two Oscars, has his Killarney Heights home listed with $2.2 million hopes.
The five-bedroom house is on the market for the first time in 16 years.
It was bought shortly after receiving his first Academy Award in the US for the development of the digital recording systems used for soundtracks for major feature film releases.
Lancken says the only noise heard from the property the kookaburras.
The house has a northeast aspect, walls of glass, views over Garigal National Park from its 778 sqm holding.
Lancken paid $883,750 for the home in 2001.
The home goes to auction on March 11 through Raine &amp; Horne Forestville - Frenchs Forest agents Melinda Dunn and Sam Pfafflin.
John won the Academy Award for the development of the first digital recording systems that were used to record soundtracks for major feature film releases.
He has worked on films including The Matrix, Heat and The Firm starring Tom Cruise.
This article first appeared in the Sunday Telegraph.
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Oscar winner John Lancken lists Killarney Heights home

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We are going to read a lot about apartment oversupply this year.
The Reserve Bank of Australia has already kicked off the discussion warning of the consequences of a flood of new apartments hitting the market.
The central bank pointed out that residential approvals have been almost 50 per cent higher across Australia than their long-term average during the past two years.
The RBA pointed out there are risks involved with the high level of activity in apartment construction.
It went on to pinpoint a geographic concentration "particularly in inner-city Melbourne and Brisbane". Significantly Sydney wasn't mentioned.
But this is not to say we are free of concerns.
Indeed oversupply of units in some Sydney inner city suburbs represents the greatest risk for invesors, according to the latest update from the valuation firm, Herron Todd White.
It has already detected a number of valuations for new units upon settlement not meeting their off the plan prices. 
It is particularly happening with suburbs with concentrated new stock along with a distinct difference in value between the new and original older style unit prices. 
HTW says this is more commonly in some second tier suburbs in western Sydney and additionally in some pockets of the northern suburbs. 
While mostly occurring for overseas buyers, it could trigger difficulties for locals obtaining finance.
There is also the concern that rentals might fall short of yielding enough to service mortgage repayments.
The valuers nominated areas with the lowest predicted growth for the inner city fringes where they envisage there may be an oversupply of new units.
They suggested developments that have been completed simply to cash in on demand could fall short in quality and "therefore won't have appeal to either owner occupiers and potential tenants." 
Middle ring suburbs HTW believe are at risk of oversupply or heavily investor led include Wentworth Point, Carlingford, Epping, Olympic Park, Macquarie Park and Parramatta.
"The supply of new units in these areas is well above long-term averages."
The RBA discussion pointed out that detecting oversupply was not simple noting an approved apartment takes around three times to complete as a detached house.
It noted the average completion time for an apartment was around six quarters.
It added that the lag between the decision to approve a higher-density dwelling and its completion "means that the impact on the supply of housing, including prices and vacancy rates, may be less predictable than in the past".
It advised the Australian residential pipeline was equivalent to 12 per cent of GDP, and dwellings yet to be completed accounted for 2.5 per cent of the country's total supply of housing.
The RBA warned developers might not be able to respond in time to signs of over-supply and waning house prices, "so a general oversupply is more likely to build up".
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Reserve Bank warns of flood of new apartments

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<img src="https://counter.theconversation.edu.au/content/69775/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Australia’s global cities are a very large part of the nation’s economic success, but they are also generating significantly unequal incomes. 
Our recent research found that as Australian cities have grown, their income inequality has increased.
Cities provide many social and cultural opportunities and allow large numbers of people to stay connected. But bigger is better only if we can make it better for everyone.
We propose a solution: rather than concentrate activity around a single city centre, we need to develop multiple centres of activity – polycentric cities.
How are city size and incomes related?
Large cities, particularly global cities, are great sources of wealth and income generation. Their impacts on inequality, though, are less positive.
Much recent research has focused on measuring the relationship between city size and income and wealth generation. Various studies show that as cities increase in size, income and wealth grow “superlinearly”. This means that if the city size grows by 10 percent, income and wealth generation grow by more than 10%.
The benefits of large cities to the economy overall are well recognised. The most significant economic engines of many countries are one or two of the largest cities – think New York for the US, London for the UK, Sydney and Melbourne for Australia.
Large cities may be where growth and wealth are concentrated. And, by inference, average quality of life is improved. But the uneven distribution of wealth among residents is of concern.
A reasonable question might be whether cities, which many regard as humankind’s greatest invention, are machines for concentrating wealth inequitably. Is there any relationship between city size and income distribution?
We investigated this relationship across the entire spectrum of Australian cities. Using income distribution data from the 2011 Census across all the 101 significant urban areas, or “cities”, we did find a superlinear relationship. That is, overall, as city populations increased, total income did increase by more than the rate of population growth.
Bigger is better for the rich
We also analysed the proportion of households in different income bands. This analysis showed that while income growth increased as Australian cities got larger, this was concentrated in the upper income categories.
The Australian Bureau of Statistics defines ten income categories, ranging from lowest to highest incomes per capita, with people counts in each category. We found that incomes of poor and middle-income categories grow in proportion with city size, or more slowly. Those of the higher-income categories grow disproportionately faster.
Every citizen should be concerned about this trend. If total incomes and the incomes of top earners grow faster than city size, but not those of lower income earners, then most of the income that makes bigger cities richer is only going to the top earners.
Why do cities concentrate wealth?
This is probably not a surprising finding. Large cities attract many economic activities, particularly those in financial services, that can generate very large incomes. However, it highlights an issue that has received increasing attention in recent years – the significant increases in inequality in many Western economies.
While our research was largely a data-driven exercise, it does help us think about what might be some of the sources of inequality in our cities and the geography of that inequality. What policy response might help to counter this characteristic of increased city size?
The agglomeration and spillover effects of clustering related businesses, particularly finance and business service and “knowledge workers”, is well recognised, but these beneficial effects are indeed highly concentrated. An extensive global review of agglomeration in 2014 noted that “agglomeration economies do not spill over much space”.
How do we spread the benefits?
As big cities like Sydney and Melbourne expand, it will be very important to establish and support clusters of activity away from the principal city centre. Polycentric cities are more likely to achieve more equitable access to higher-paying jobs.
Additionally, it will be important to establish spatial policies that support a mix of higher, middle and lower-income jobs in business districts to prevent the agglomeration of the super-rich in pockets of the city.
This has implications for establishing housing market stability (encouraging a good spatial mix of all housing types in the vicinity) and efficient commuting (middle-income or poorer people not needing to travel long distances for work).
This has been a strategic planning objective for decades. Yet only now, in Sydney’s case, does the city’s economic geography have the potential to be significantly rebalanced. One example would be the development of a new airport in western Sydney.
Proximity to the airport is likely to stimulate investment in other economic activities. Population demand itself combined with the development of the “second city” of Parramatta, which is now capitalising on its geographic centrality, and will become more pronounced as the west develops.
The development of a “third city” centred on the airport, but building on a network of existing centres, has the potential to significantly change the distribution, accessibility and types of employment across the city.
Housing policy has a critical role to play
If we want to tackle inequality in our cities, housing is a very good place to start.
As city housing markets become more expensive, households on lower and moderate incomes spend an increasing proportion of their incomes on housing. The number of locations where they can live in the city becomes smaller, especially when certain pockets show agglomerations of super-rich.
The costs of housing mean the amount of spare income those on moderate and low incomes can invest in themselves and their children to improve their employment prospects (what economists call investing in human capital) becomes smaller. The educational outcomes for their children are often poor. Also, because of rising transport costs, the number of potential jobs they can access gets smaller.
This is why developing polycentricity is so critical.
To reduce inequalities in cities, it is also important that we spread affordable housing out across the city. Proposed inclusionary zoning provisions in the new Sydney District Plans, while modest, are a good first step.
Whether such measures will be sufficient to counter the inherent tendency for income inequality to increase non-linearly as city size grows remains to be seen.
Economic processes will take their own course: generally the larger the agglomeration, the higher the probability of further growth. However, recognising and reducing spatial inequality and changing the economic geography of the city should be planning’s role.
And finally, there is the question of city size distributions, and focusing on the growth of regional and smaller cities, instead of putting every cent of focus on our biggest cities. These are, clearly, very long-term goals in the current environment.
 
<a href="https://theconversation.com/profiles/somwrita-sarkar-320241" target="_blank"></a>
<a href="https://theconversation.com/profiles/somwrita-sarkar-320241" target="_blank">SOMWRITA SARKAR </a>is senior lecturer in Design and Computation, University of Sydney  
<a href="https://theconversation.com/profiles/somwrita-sarkar-320241" target="_blank"></a>
<a href="https://donate.theconversation.com/au?utm_source=theconversation.com&amp;utm_medium=website&amp;utm_campaign=friend_of_the_conversation_badge" target="_blank">PETER PHIBBS </a>is chair of Urban Planning and Policy, University of Sydney.
<a href="https://theconversation.com/profiles/somwrita-sarkar-320241" target="_blank"></a>
<a href="https://theconversation.com/profiles/roderick-simpson-320302" target="_blank">RODERICK SIMPSON</a> is associate professor of Urban Design, University of Sydney.
<a href="https://theconversation.com/profiles/somwrita-sarkar-320241" target="_blank"></a>
All are authors for The Conversation.
<a href="https://theconversation.com/profiles/somwrita-sarkar-320241" target="_blank"> </a>
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Our big cities are engines of inequality, so how do we fix that?

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GUEST OBSERVER 
The latest business investment report was certainly a mixed bag.
A sizeable drop in actual quarterly investment and expectations of future investment for 2016/17 and 2017/18 were weaker than a year ago. However the focus should be on the breakdown of investment, which was largely due to an ongoing slide in mining investment. In fact investment in the non-mining space rose by 1.9 percent in the December quarter. The improvement in commodity prices may help to soften the weakness in mining activity.
In addition investment rose in five of the eight states and territories, with the weakness more dominated in Queensland and Western Australia. In contrast the Northern Territory, ACT, and Tasmania recorded a double digit lift December quarter investment.
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More importantly the near term shift in expected investment plans was also encouraging. The fifth estimate for investment in 2016/17 came in at $112.6 billion, up 4.6 percent on the fourth estimate and up almost 22 percent in the past nine months.
Encouragingly the lift in investment plans over the last couple of quarters, suggests that a shift in momentum is taking place. Certainly the lift in business conditions in recent months may be supportive of a lift in investment plans – especially in light of the surge in commodity prices and improvement in the global economy. No doubt the rebalancing across the economy is also being supported by the weaker Australian dollar – an outcome that should garner further traction in coming quarters. But as we have seen in the past, business may plan for future investment but then mothball projects if the economic landscape doesn’t improve.
Business spending looks like continuing to be a weight on Australia’s economic growth performance in the medium term. The Reserve Bank could cut rates again, but it is far from certain that this would have a measurable impact in further lifting business spending. The Reserve Bank is more forward-looking and is likely to maintain its neutral bias on a more upbeat medium term growth outlook. 
As highlighted yesterday by the wage price index, wage growth at present is modest. Wages are still growing, and out-pacing inflation. The “average worker” has an extra $1,711 in the pocket compared with a year ago, equating to almost an extra $33 week. Real wage growth exists, while higher home prices, subdued petrol prices and lower borrowing costs are also supporting spending power.
While modest real wage growth causes consumers to price-check more often, the modest growth in earnings restrains the wage bill of employers, leaving them inclined to maintain or boost employment – as indeed has been happening. Modest wage growth is one reason why the unemployment rate in at 26-month lows in trend terms.
Overall policymakers will keep a close eye on how business investment evolves over the coming year. The forward looking indicators suggest activity levels are lifting and we believe that interest rates are likely to remain unchanged.
What do the figures show?
Private business investment 
Overall: Business investment (spending on buildings and equipment) fell by 2.1 per cent in the December quarter after falling by 3.3 per cent in the September quarter. Spending on buildings fell by 4.1 per cent in the quarter while spending on equipment rose by 0.4 per cent. Investment is down 15.5 per cent over the year with buildings down by 25.5 per cent while equipment was up by 1.5 per cent.
Sectors: Mining investment fell by 9.3 per cent in the December quarter (tenth straight decline), while manufacturing spending rose by 3.2 per cent, spending by “other selected industries” rose by 1.8 per cent.
States: In seasonally adjusted terms investment fell in five of the eight states and territories in the December quarter. Investment rose the most in the Northern Territory (up 16.1 per cent), followed by the ACT (up 11.1 per cent), Tasmania (up 10.8 per cent), NSW (up 2.3 per cent), Victoria (up 2.0 per cent). Investment fell the most in Queensland (down 6.1 per cent) followed by Western Australia (down 3.7 per cent), and South Australia (down 2.9 per cent).
Prices: The overall deflator for investment goods rose by 0.3 per cent in the December quarter after falling by 0.2 per cent in the September. The cost of buildings and structures rose by 1.1 per cent while the cost of equipment fell by 0.7 per cent. Over the year, the cost of investment goods fell by 0.7 per cent – the largest fall in just shy of 5 years. The cost of buildings rose by 1.1 per cent while the cost of investment equipment fell by 3.4 per cent.
Forecasts: The fifth estimate for investment in 2016/17 is $112.55 billion, down 9 per cent on the fifth estimate for investment made for the previous (2015/16) financial year. However the investment expectation is up 4.6 percent on the fourth estimate made for the current 2016/17 financial year.
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The first estimate of investment in 2017/18 is $80.625 billion and is 3.9 per cent lower than the first estimate for 2016/17 – the smallest decline for a first estimate reading in five years.
Average Weekly Earnings:
Average weekly ordinary time earnings rose by 1.1 per cent in the six months to November 2016 to be 2.2 per cent higher than a year ago. Male wages rose by 1.8 per cent over the year while female wages rose by 3.2 per cent. 
Average weekly total earnings rose by 2.2 per cent over the year.
The average wage in November 2016 was $79,737.
Wages rose most over the year in Arts and Recreation services (up 5.8 per cent), Information, Media and Telecommunications (up 5 per cent), and Electricity, Gas, Water and Waste services (up 5.4 per cent).
Wages were weakest over the past year in Manufacturing (down 1.5 per cent), Retail trade (up 0.6 per cent), Public Administration &amp; Safety (up 1.5 per cent) and Finance &amp; Insurance (up 1.7 per cent).
Across states &amp; territories, we have calculated average annual wages as follows: NSW $79,862, Victoria $78,005, Queensland $77,069, South Australia $75,192, Western Australia $88,566, Tasmania $69,945, Northern Territory $85,202 and ACT $90,844.
The highest average wage can still be found in the Mining sector at $133,765 per year. Next highest is Finance &amp; insurance services ($95,706) followed by Information media &amp; telecommunications ($95,082), and Professional, scientific &amp; technical services ($92,851).
The lowest average wage is obtained by workers in the Accommodation and food services sector ($57,632), followed by Retail trade ($58,963), “Other services” ($63,554) and Administrative and Support Services ($67,844).
What is the importance of the economic data?
“Private New Capital Expenditure and Expected Expenditure” is released quarterly by the Bureau of Statistics. The figures show both actual and expected spending by businesses on tangible assets such as new buildings, machinery and office equipment. The figures are obtained after sampling 8,000 private business units.
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The ABS publishes the Average Weekly Earnings (AWE) series on a six-monthly basis. While the Wage Cost Index allows analysis of wage movements from quarter-to-quarter, the AWE series is best seen as a measure of actual dollar figures for wages. But average weekly earnings figures can be distorted by changes such as the relative growth of high-paid to low-paid jobs and the cashing out of bonuses in ordinary earnings.
What are the implications for interest rates and investors?
The great unwinding of mining investment continues although the lift in commodity prices may result in more of a soft landing in coming quarters.
The latest data confirms that wages are only growing modestly. In broad terms, wages are modestly ahead of prices, with the simple conclusion that inflationary pressures are contained. The Reserve Bank should be in no rush to move interest rates in any direction. 
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>.
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Subdued business investment: Savanth Sebastian

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A two bedroom apartment in a historic Melbourne CBD building has been listed by Daniel Wilson and his wife Leah, owners of Huxtaburger.
Their third-floor unit has two bedrooms, two bathrooms and a study nook.
There is lift access to a basement car park.
Kay &amp; Burton agent Tom Staughton suggests a price guide between $1 million and $1.1 million.
The 14/2 Exhibition Street offering goes to March 4 auction.
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Huxtaburger owners list historic Melbourne apartment

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.

[smartcode_project:default project_id=135094 project_image_fid=356540]

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.

[smartcode_project:default project_id=150787 project_image_fid=366230]

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.

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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.

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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.

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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.

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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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Jonathan Chancellor

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