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Australia’s long run of “home ownership for all” appears to have ended. 
Smashed avocado aside, young people are now much less likely than their parents to ever own their own home. Almost one-third of the nation rents, mainly from private landlords. 
Governments have gradually shifted the focus of welfare away from public housing and towards subsidising housing in the private rental market. At last count, around 1.3 million households were receiving government rental assistance – that’s around one in five Australian households receiving on average A$128 per fortnight. 
As the private rental sector expands and the cost of housing rises, it is important to acknowledge that the effects of unaffordable housing cascade into other areas of life, in particular, mental health. 
Our research has found unaffordable housing has a negative effect on mental health. And it’s worse for private renters than those with a mortgage. When lower-income private renters’ housing becomes unaffordable, their mental health worsens. This doesn’t seem to happen for people on similar incomes paying a mortgage. 
It’s different in the UK. Our cross-national comparison conducted before austerity measures were taken in the UK suggested more generous benefits and conditions may have protected their lower-income private renters from the mental health effects experienced by their counterparts in Australia. 
While this work highlights the potential protective effect of affordable housing, recent changes in the UK as a result of austerity measures may have taken the Brits backwards. 
<h2>A ‘natural experiment’</h2>
A recently published analysis tracked the effect of a national reduction to government-provided rent assistance in the UK. 
In April 2011, austerity measures in the UK resulted in a reduction of the rental housing assistance payment. This meant that incomes for rent assistance recipients fell, on average, by approximately £1,220 (A$2,000) per year. Some people experienced much smaller declines, but many witnessed much larger reductions in their housing benefit. 
Although not without methodological challenges, the research found reduced government support to meet housing costs has a negative impact on people’s mental health. The policy caused a measureable population-wide increase in depressive symptoms, with around 26,000 people experiencing symptoms for the first time.
<h2>Lessons for Australia</h2>
Affordable housing is an effective health intervention. Australia has some of the world’s least affordable housing, and while we debate the solutions to this (such as removing negative gearing), government assistance to meet housing costs protects many people from poor mental health, and possibly, depression. 
As World Medical Association president Professor Michael Marmot argues, housing is a form of preventative health care. The one in five Australian households relying on government assistance to pay their rent are currently receiving this form of preventative health care. 
Households that receive private rent assistance gain more than just shelter. Rent assistance may allow people to live nearer to good schools, buy healthier food for their kids, and provide some residential stability. It also protects their mental health. 
Cuts to private rent assistance may do the opposite: pushing people away from good schools, leaving them without adequate food, and exposing them to housing insecurity. As the UK work shows, even slight changes to policy can have major (and often unintended) effects, particularly for mental health. The most economically vulnerable are likely to be disproportionately affected. 
As we enter an era of substantial reassessment of the structure of welfare in Australia, this UK research highlights the importance of harnessing natural experiments to systematically test the outcomes of broad policy change, and develop evidence on which to build better health into the future. 
While Australia’s cohort of private renters grows and housing affordability stress escalates, we need to ensure that health, well-being and productivity are supported. We need to address the structural factors that contribute to our housing affordability crisis. We also need to support people who are disadvantaged by it. We shouldn’t underestimate the importance of getting housing right.
Rebecca Bentley is associate professor, Centre for Health Equity, Melbourne School of Population and Global Health, University of Melbourne and can be contacted <a href="https://theconversation.com/profiles/rebecca-bentley-173502" target="_blank">here</a>.
Aaron Reeves is associate professorial research fellow in Poverty and Inequality, London School of Economics and Political Science and can be contacted <a href="https://theconversation.com/profiles/aaron-reeves-298453" target="_blank">here</a>.
Emma Baker is associate professor, School of Architecture and Built Environment, University of Adelaide and can be contacted <a href="https://theconversation.com/profiles/emma-baker-172081" target="_blank">here</a>.
All are authors for The Conversation.
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Housing: the hidden health intervention

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The ongoing uncertainty over the future of the Hazelwood power station in Victoria’s Latrobe Valley has raised the prospect that the ageing generator will be shut down in the near future. 
The power station has a nameplate capacity of 1.6 gigawatts, which represents 22 percent of the coal-fired generation capacity in Victoria, and 6% of the total coal-fired capacity in Victoria, Queensland and New South Wales combined (South Australia no longer has an operating coal-fired power station).
Coal-fired power stations provide the bulk of the “baseload” electricity requirements in the National Electricity Market (NEM). Baseload refers to generation that meets the minimum demand, and from an economic point of view this is best delivered by generation that produces constant, reliable output. Brown coal provides the cheapest baseload power – or at least, it does if we’re prepared to ignore factors such as the long-term costs of climate change.
So if Hazelwood departs the market, as one of the cheapest generators in the NEM, it seems logical that electricity prices will increase. The extent of that increase will depend on what takes up the slack. So what can we expect to happen?
<h2>On the decline</h2>
Until 2007, average electricity demand in the NEM had increased every year since the grid was first built. But after that demand started to fall. The reasons are varied, including increasing takeup of rooftop solar panels, improved efficiency of lighting and appliances, and reductions in industrial demand. 
Looking at July (when baseload electricity demand is typically at its highest), the average demand has fallen from 25.4GW in July 2007 to 22.9GW in July 2016, a reduction of 2.5GW. 
But there has also been significant retirement of coal-fired generation capacity in Australia since 2010, driven partly by the retirement of old power plants, and partly by the costs associated with the carbon price, which ran from 2012 to 2014. 
The retirees include Morwell and Anglesea in Victoria (0.2GW), Playford B and Northern in South Australia (0.8GW), and most significantly Redbank, Wallerawang and Munmorah in New South Wales (2.5 GW). This adds up to a total of 3.5GW of coal-fired capacity shut down this decade.
This means that more capacity has been retired than the baseload demand has decreased. So in theory, the retirement of another baseload power station at Hazelwood would result in even more tightening of the balance between supply and demand. 
But if we look at the current average capacity factors of the remaining coal-fired power stations we can see that many of the larger ones, in NSW in particular, are running at very modest capacities. For example, Liddell has been running at 43% of its total capacity for the past 12 months, and Eraring at 59%. Across the NEM the average is 65%. 
Now, of course some of this generation is used when the demand increases during particularly hot or cold weather, but most of this “peaking” demand is supplied by hydro and gas. So while baseload is not the only way to meet demand in the energy system, there nevertheless seems to be plenty of baseload available.
Why are coal-fired stations running at such low levels? One reason is that while demand has been falling, there has also been an extra 4GW of wind power capacity added to the grid. Meanwhile, several new plants were commissioned in the years leading up to the peak in demand, with the expectation that demand would continue to rise. These plants include Callide C, Millmerran and Kogan Creek, which add up to 2.7GW.
If Hazelwood shuts down, it would be reasonable to expect that the remaining coal-fired generators in the grid will take up the slack. The generators in Victoria are running at relatively high capacity factors, so we might expect that NSW generators will increase their output. The interconnector between Victoria and NSW currently sends Victorian electricity into NSW, but it can reverse that flow if required.
One reason why Victorian power stations are running at higher capacities is because they are cheaper to run. ACIL Tasman figures from 2010 show short-run marginal cost (the cost to run a power station in addition to fixed costs) in Victoria is around A$2-5 per megawatt hour, compared with A$12-17 per MWh in NSW.
Predicting what will happen to electricity prices in the future is harder than picking the winner of the Melbourne Cup, so making an exact price forecast is tricky. But if the hole left by Hazelwood’s retirement is filled by the excess capacity in NSW, then all things being equal the impacts on the overall costs of running the system would be modest.
Still, the NEM is very complex. Generators (especially in Victoria) are privately owned and will adjust their market strategies to take advantage of the tightening of supply. Meanwhile, the growing market share of renewables, the potential for electricity demand to begin rising once again, and the possibility of further coal closures, all mean that the full impact of the retreat of coal-fired power is yet to be seen.
Roger Dargaville is deputy director, Melbourne Energy Institute, University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/roger-dargaville-1832" target="_blank">here</a>.
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Hazelwood’s closure won’t affect power prices as much as you might think

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The solution to Sydney’s affordable housing problems is contained in the existing legislation and recommendations of the Affordable Housing Taskforce as outlined on the Department of Planning’s website.
The Affordable Housing Taskforce report to the Coalition Government in 2012 clearly stated that the private sector will not enter the affordable housing market without incentives (Action 5).
The Affordable Housing Taskforce report said ‘These incentives have been particularly attractive where the bonus represents significant value’(Cl 4.12). 
The Taskforce report supported the principle of the Affordable Rental Housing State Environmental Planning Policy (SEPP) as a good way to generate affordable housing.
The Urban Taskforce, representing property developers, has presented to the NSW Government a clear strategy to produce 40,000 affordable homes over a 10 year period by slightly changing the NSW Government’s current incentive in the Affordable Rental Housing SEPP.
The current Affordable Rental Housing SEPP is based on rental housing being for a period of 10 years through ‘a restriction on the occupation certificate against the title of the property’ (Cl17) and the Urban Taskforce proposal uses exactly the same definition.
Since the Affordable Rental Housing SEPP was introduced a relatively small number of affordable homes have been produced because the incentives have been too low. With a lifting in the incentives thousands of affordable housing homes can be built in metropolitan Sydney.
The Coalition Government’s Taskforce raised concerns that inclusionary zoning would only work where land value was high. ‘Inclusionary zone policies have been shown to work most effectively in high value land locations and have limited application in lower cost markets.’ (Cl 4.14). The Urban Taskforce approach is an incentive that is adjusted to all suburbs irrespective of land value.
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It seems that the approach now preferred by the Greater Sydney Commission is to force inclusionary zoning as a tax on new housing development. While this may work where land value is high, like Vaucluse, it is unlikely that the suburbs that really need affordable housing will benefit.
The Urban Taskforce is keen to work with the NSW Government to generate thousands of new affordable homes across Sydney. To simply force a new tax on the development industry in Sydney will act as a disincentive on the private sector to provide homes. By default it will be the NSW Government who will need to provide massive numbers of affordable homes.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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Affordable housing solution for Sydney is contained in Planning Department Policies: Chris Johnson

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GUEST OBSERVER
The ABS quarterly survey “Building Activity” provides detail on the non-residential building sector. Here we reassess conditions and prospects for the sector.
Hereafter ‘building’ refers to ‘non-residential building’.
<a href="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%201.52.08%20PM.png" target="_blank">Click to enlarge</a> <img src="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%201.52.08%20PM.png" alt="">
In summary, private building activity weakened over the first half of 2016, puncturing a five year upswing. Our assessment remains that the near-term decline in private activity will be relatively modest, a view supported by the recent improvement in approvals and commencements.
By contrast, total building activity (which includes public works) is likely to be resilient. Notably, the public sector has loosened the purse strings, committing to much needed social infrastructure. Public building approvals and commencements have lifted sharply from their lows.
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State by state, conditions are varied and more nuanced than a mining / non-mining divide, as discussed below.
Activity: Real private building activity has weakened in 2016, falling by 4.2% in Q1, followed by a flat Q2. That follows a 31% expansion in the five years to end 2015, including a 7.8% increase in 2015. The level of activity in the Q4 2015 was 4.6% above the previous peak of end 2008, ahead of the GFC impacts.
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Public works in 2016 are in the beginnings of an upswing. Activity rebounded by 6.1% in Q1 and rose a further 11.9% in Q2. Prior to this, activity declined through 2011 to 2015, unwinding the 2009 fiscal stimulus package.
Total real building work was flat over the first half of 2016, with a 2.2% fall in March reversed by a 2.4% June, to be broadly unchanged from a year ago (+0.6%).
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Total commencements strengthened in 2015/16, increasing by 14% to $33.6bn, a rise of $4.1bn, largely reversing the 16% decline in 2014/15. In the June quarter, commencements were $8.5bn, in line with the annual pace.
The public sector led the way in 2015/16, with commencements up 41% to $8.8bn, (+$2.6bn), with rebounds in health, education and strength in social buildings more generally. This has public commencements at their highest level since 2011/12.
Private commencements also rose in 2015/16, +7%, following a 16% fall the year prior, centred on: retail; entertainment &amp;recreation; and accommodation.
The pipeline of work outstanding peaked at a relatively high level in mid-2014, at $27bn in total ($21bn for the private sector). The pipeline was progressively reduced, moderating to $19bn by the end of 2015 ($14bn private). Over the past half year, the overall pipeline of work stabilised, edging up to $20bn, while that for private projects edged lower, down to $13bn. 
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Commencements and approvals 
Private sector commencements were valued at $24.9bn in 2015/16, an increase of 7% on the year prior, +$1.6bn, partially reversing the 16% decline in 2014/15. The rebound was centred on: retail, +$0.9bn; entertainment &amp; recreation, +$0.7bn; and accommodation, $0.6bn.
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Private commercial building commencements (centred on retail and offices) have improved following a sharp fall in 2014/15. In 2015/16, commencements for the segment were valued at $11.0bn, +10% on the year before. That is below the 2013/14 outcome of $13.0bn and the earlier peak of $15.7bn in 2007/08. 
For retail, while consumer spending has been lacklustre at the national level, commencements are elevated supported by increased competition. In the office segment, commencements have stabilised at a low level, +6% in 2015/16, after falling sharply in 2014/15, down 39%. The outlook for offices is heavily influenced by the mining / non-mining growth divide.
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An area of strength is ‘social infrastructure’. Within this segment upswings are evident in accommodation (including hotels and student apartments) and aged care facilities, as well as strength in entertainment &amp; recreation, and a rebound in education. In 2015/16, commencements for social infrastructure rebounded by 9%, to $9.8bn, only 5% below the historic high of 2013/14 and up from $5.8bn in 2007/08. The segment now accounts for 40% of total private commencements. 
The more timely building approvals data, which is available to August, confirm that we are likely past the low point in this cycle. 
Private building approvals for the 12 months to August are 3% above those for the year before, reflecting gains in social infrastructure, +8%, and industrial, +17%. However, private building approvals remain 10% below the recent peak, which was for the year to February 2014.
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State-by-state 
Building conditions across the states are quite varied and the outlook is more divergent than is implied by a simple mining / non-mining growth divide. 
As at the national level, the importance of social infrastructure projects, a lift in public investment, and resilience in the retail sector add nuances to the state-by-state picture.
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The value of building work nationally grew by 2.3% over the year to the June quarter 2016, +$0.2bn (although in real terms, work was broadly flat, up 0.6%). By state, the value of building work made solid gains in NSW and Qld, as well as Tasmania, with largely offsetting falls in Victoria, WA and South Australia. 
Commencements strengthened in 2015/16, up $4.2bn nationally, a move that was centred on gains in Qld , as well as a strengthening of public works in the smaller states.
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In Qld, commencements rebounded partially in 2015/16, up $1.9bn, following a sharp fall in 2014/15. It was private social infrastructure, as well as public works, that led Qld commencements higher in 2015/16, including: accommodation, aged care facilities, education, and entertainment &amp; recreation. 
Public building commencements in the smaller states and in the territories jumped to $2.7bn in 2015/16, up $1.6bn on 2014/15. A partial rebound in NSW public commencements, +$0.7bn, was another mover in 2015/16. 
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On a state by state basis, current conditions and the near-term building outlook are, in summary: 
In NSW: real building work grew by 7% over the past year. This lift in activity was supported by reducing what was a sizeable pipeline of work outstanding. Near-term, the value of activity is vulnerable to a pull-back from current elevated levels, which are around 20% above commencements. Beyond that, the outlook is positive, reflecting the sound fundamentals for the state and expansionary state fiscal policy. 
In Victoria: real building work declined by 6% over the past year, partially reversing the upswing of the previous couple of years. An emerging stabilisation in activity is likely in coming quarters, ahead of an improvement, supported by the recent strengthening of commencements and approvals, and underpinned by positive fundamentals. 
In Qld: real building work rebounded over the past year, up 12%, following the softer tone evident since 2011 which was associated with the winding down of the mining investment boom. As noted above, commencements bounced back in 2015/16, up on private social infrastructure and public works. The modest lift in the work pipeline will be supportive of activity near-term. Further out, key will be whether some sizeable tourism projects receive the go ahead in response to rising demand, including from international visitors. 
In WA: real building work trended lower over the past year, down 7%, extending the downturn which emerged from the start of 2012 associated with the turning of the mining investment cycle. Conditions are likely to remain subdued as the state continues to feel the impacts from the mining investment downturn, notwithstanding stronger commencements in the June quarter, centred on retail.
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In South Australia: building work weakened over the past two years, including a 9% fall in the year to June 2016, as work on the Royal Adelaide Hospital was progressively completed. Conditions are set to turnaround in coming quarters, led by the public sector, with work progressing on the $0.23bn University of South Australia’s Health Innovation centre and the $0.2bn Adelaide University Medical and Nursing school. 
In Tasmania: building work has begun to recover, led by the public sector. This follows four years of subdued conditions which emerged after the impacts of the Federal government’s fiscal stimulus package of 2009/10. The value of building work for the 2015/16 financial year as a whole was 14% above the level of the year prior. There is further upside, supported by the now relatively sizeable work pipeline, which stands at $0.68bn currently, up from around $0.25bn a year earlier. The $0.7bn Royal Hobart hospital redevelopment is the largest project under construction and work on this has a good deal to run. 
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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Private building activity weakened over first half of 2016: Westpac's Andrew Hanlan

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Housing credit growth firm but business credit growth is slowing.
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The 5.4 percent rise in total credit over the year is low by historic standards. But Australia’s stock of private debt is still growing faster than nominal GDP which means overall leverage in the economy is rising. 
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The increase in leverage is being driven mainly by the household sector. And the debt is going into bricks and mortar. 
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Housing credit has been expanding by around 0.5 percent a month over the past six months. But the annual growth rate has been falling over that period. The stock of housing credit was growing at 6.4 percent/pa in September. It looks like it will stabilise around this level over the near term.  
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Despite the annual growth rate of housing credit cooling, the pace of growth is still well above national income growth. This means that the household debt- to-income ratio is rising. It is currently at a record high and puts Australia in the top tier of household indebtedness globally. As the RBA noted in its October Financial Stability Review, “household indebtedness continues to drift up and, with incomes growing more slowly than in the previous decade, households may not be able to rely on income growth to make their debt easier to service.” 
Credit to owner-occupiers grew by 0.5 percent in September and is up 7.3 percent through the year. The stock of debt to investors rose by a slightly higher 0.6 percent over the month and annual growth lifted a little to 4.8 percent. Investor credit growth 55 has been accelerating month on month for the past six months which is consistent with other indicators of activity in the housing market. The lift in investor-related credit shows that the May and August rate cuts had a stimulatory impact on the housing market.
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Business credit growth has been limp over the past five months after accelerating earlier in the year. The trend in business credit is a little concerning because it suggests that non-mining private capex is likely to be soft over the near term. Fortunately public capex is starting to lift after falling as a share of GDP for most of the past six years. This will need to continue to support aggregate demand if private investment is going to remain soft.
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The “deleveraging” in other personal credit continues. Personal credit is down 1.3 percent over the year and reflects the lack of appetite for consumer debt outside of housing. 
Broad money was flat over September and stands 5.8 percent higher through the year. 
Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
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Housing credit growth firm, business credit growth slowing: Gareth Aird

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Standard &amp; Poor's has placed 25 second tier Australian banks, insurers and buildings societies on negative watch as it becomes concerned about rising household debt and property values.
The change in ratings comes as the agency adjusted its assessment of Australia's economic risk trends from stable to negative. 
While S&amp;P said that growth in debt and property prices would likely moderate, there was a one in three chance that the strong growth would continue, leading to increased risks of a sharp correction that would hurt lenders. 
Among the largest institutions impacted are AMP Bank, Bank of Queensland, Bendigo and Adelaide Bank, Macquarie whose current ratings were placed on negative outlook.
Several other building societies and regional lenders such as Cuscal and CUA also had their ratings outlook revised to negative.  
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<div>The ratings outlooks of the major banks had already been placed on negative outlook because of the action taken on the AAA Australian sovereign rating.</div>
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<div>S&amp;P said that private sector debt as a percentage of GDP had grown to 139 per cent  to 118 per cent in 2012, an average increase of 5.2 per cent while property prices had increased by 5.3 per cent, after adjusting for inflation.   </div>
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"Strong growth in private sector debt (to about 139 per cent of GDP in June 2016 from 118 per cent in 2012, or an annual average increase of 5.2 percentage points) coupled with an increase in property prices nationally (average inflation-adjusted increase for the past four years was 5.3 per cent nationally) are driving the potential increase in imbalances in the economy, in our view.
"Consequently, we believe the risks of a sharp correction in property prices could increase and if that were to occur, credit losses incurred by all financial institutions operating in Australia are likely to be significantly greater; with about two-thirds of banks' lending assets secured by residential home loans--the impact of such a scenario on financial institutions would be amplified by the Australian economy's external weaknesses, in particular its persistent current account deficits and high level of external debt."
The impact of any sharp drop in property prices would be greater on banks, because more than 60 per cent of their loans were for residential property, it said.
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One in three chance of strong growth triggering sharp correction in property: S&P

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Sydney's Paddington had its own dilapidated terrace auction offering. 
The <a href="https://www.realestate.com.au/property-terrace-nsw-paddington-123733818" target="_blank">45 Iris Street</a> offering sold for $1.19 million - $190,000 more than it was purchased for just eight months ago.
The uninhabitable two bedroom terrace had three bidders with it sold to an investor who will implement the recently obtained $600,000 development approval.
The terrace had been the home of the late artist Christina Coombes who had bought it in 1965 for £3200.
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Derelict Paddington terrace fetches $190,000 more

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<img src="https://counter.theconversation.edu.au/content/67053/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Many of the iconic coastal villages of Australia have a close association with professional fishing. In New South Wales, towns up and down the coast historically supported fishing fleets which supplied the seafood needs of locals, Sydney and the broader state community. 
But the NSW fishing industry has changed significantly in the past 30 years, in response to a range of environmental and community concerns. People are more worried about the number of fish, habitat impacts, and how access to fish should be allocated.
There have been changes and restrictions on licences and fishing gear, quotas for some species and fisheries, and a substantial reduction in fishing areas through the expansion of marine parks and the creation of recreational fishing havens (where all professional fishing is banned). The number of current fishing licences in NSW is just a quarter of what it was during the industry’s peak in the 1970s and ‘80s. 
<a href="/images/2016/10/31/image-20161018-12416-tqff2c.png" target="_blank">Click to enlarge</a>
<h2><img src="/images/2016/10/31/image-20161018-12416-tqff2c.png" alt=""></h2>
Estimated NSW fishing licence holders 1881-2016 Wilkinson, 2013, Wilkinson, 1997 and NSW Department of Primary Industries
The industry is currently going through more management changes and an expansion of existing marine reserves into Commonwealth waters.
There will be more challenges in the future. As populations grow, there will be more competition for resources, and pressure from recreational fishers to close more of the ocean to professional fishing. Similar campaigns in Queensland and Victoria have prompted changes to the professional fishing industry, with unknown impacts on local communities. This has led to serious concerns about the ongoing viability of the industry in some regional centres. 
<h2>How much is fishing worth?</h2>
We recently carried out a two-year assessment of the ways professional fishing contributes to the social and economic lives of NSW coastal communities. We assessed how the industry contributes to seven key dimensions of community well-being. 
We traversed the NSW coast speaking to the breadth of the community, through interviews and surveys. We found that the industry remains a vital ingredient for maintaining the economic, social and cultural richness of coastal communities. 
In particular our approach highlighted the importance of considering both social and economic factors, and the interdependence between sectors, when judging the value of professional fishing to communities. 
The economic assessment revealed that the industry contributes more than A$436 million in revenue annually to the NSW economy and accounts for about 3,290 full-time jobs. This includes the fishers, service industries, sales and marketing.
This is a significant increase over previous estimates of the industry’s value, which did not include the “flow on” economic impacts to other businesses that rely on the fishing industry. These contributions are especially valued in smaller, regional communities where fishing still plays a central role in local economies.
For instance, Kari Esplin, secretary of the Eden Chamber of Commerce and a local business owner, told us:
Economically I see the fishing industry as a baseline in our community … it’s something that’s been there for a hundred years providing a steady economic benefit to the town and the region … It also has the benefit of being a sustainable fishery, not only from the point of view of its fishing practices, but also from a family point of view. So it’s the type of business that can be handed down through families if they choose, which builds a sense of tradition in the town, and also gives those families a feeling of self-worth that they’re a second, third or even fifth generation family business.
Looking beyond economic data gave us an insight into role the industry plays in other areas of community life. Professional fishers, for example, regularly participate in search and rescue. 
Seafood is central to many cultural celebrations such as Christmas and the Lunar New Year. And fishing and long standing fishing families are part of the cultural heritage of many communities.
<h2>Seafood tourism</h2>
The research also revealed sometimes hidden or unrecognised relationships between different sectors. In particular, professional fishing and tourism support and sustain each other in NSW coastal communities. 
We found that 89% of NSW residents expect to eat local seafood when they visit the coast and 64 percent indicated they would be interested in watching professional fishers at work while on holidays. 
Grahame Lewis, the Nelson Bay Co-Op manager, told us:
People love watching – they come down and watch the boats unload, they see what sort of fish are coming in, they see it getting wheeled over to the shops and they know there’s stuff going in there from the local fishermen. It’s a drawcard really. People love going to seaside ports and just watching – not only here but everywhere along the coast.
Recreational fishers were much more likely to be interested in both buying fish from local professional fishers and watching professional fishing. This seems at odds with the messages of conflict between recreational and professional fishers commonly seen in public debate. Likewise 78% of recreational fishers across the state prefer bait caught by NSW professional fishers.
Professional fishing is also economically and culturally important in many coastal Indigenous communities. Indigenous fishers have a long history in the industry. Fishing still plays an important role in providing income, employment, a nutritious food source, independence and pride. This extends into the broader Indigenous community with fishers sharing a proportion of the catch and important cultural knowledge with kin. 
Efforts to improve the environmental sustainability of the industry have been largely successful, and this is continuing to improve. Studies like ours give us an insight into how we can also ensure the economic and social sustainability of the industry, given its integral role in many coastal communities. 
Nearly all (94 percent) of NSW coastal residents believe the fishing industry should be maintained in NSW. Our research gives us insights into how we can achieve this. And what we stand to lose if we don’t get it right.
Michelle Voyer is postdoctoral research fellow, University of Wollongong and can be contacted <a href="https://theconversation.com/profiles/michelle-voyer-81106" target="_blank">here</a>.
Alistair McIlgorm is professor of Marine Economics, University of Wollongong and can be contacted <a href="https://theconversation.com/profiles/alistair-mcilgorm-121881" target="_blank">here</a>.
Kate Barclay is associate professor, University of Technology Sydney and can be contacted <a href="https://theconversation.com/profiles/kate-barclay-3530" target="_blank">here</a>.
All are authors for The Conversation.
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Fishing is worth more than jobs and profits to Australia’s coastal towns

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The most expensive house to sell at weekend auction in Melbourne was a derelict four bedroom heritage home in Hawthorn for $2.815 million.
It was roofless! Decaying over the past decade, then nearly <a href="https://www.realestate.com.au/sold/property-house-vic-hawthorn-123697414" target="_blank">destroyed by fire two years ago</a>.
Most Melbourne agents - and their vendors and buyers - took the weekend off for the spring racing carnival.
But Marshall White agent Duane Wolowiec saw the opportunity to run a lengthier five week marketing campaign for his tricky listing that gave prospective buyers extra time to become convinced it was a punt they'd be prepared to take on.
The top sale at Hawthorn was a 1000 sq m offering on the Lisson Grove estate which since the 1870s had been regarded as one Hawthorn's most fashionable avenues given the lovely Victorian homes set in large gardens.
Number 65 was one of four single storey villas built between 1884 and 1886 by the Troon family featuring a symmetrical façade with double bay windows.
"We have five young families bidding" Duane Wolowiec said. 
"There are strict heritage restoration conditions including the need to install slate roofing," he said.
Most buyers thought the restoration would cost at least $1.5 million, he added. Hawthorn's median house price currently sits at a record $1.85 million, according to CoreLogic.
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Roofless house fetches $2.8 million

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<img src="https://counter.theconversation.edu.au/content/67834/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
In it’s latest report, the Australian Securities &amp; Investments Commission (ASIC) found the big four banks sold products to some customers through their adviser network, with a fee for ongoing advice, but the advice was never given. 
None of this came to light until the banks were asked by ASIC to look at adviser compensation, following the introduction of the Future of Financial Advice (FOFA) legislation in 2013. 
No wonder the banks were wary of their practices being investigated. Not only has it come to light that many customers (176,000 at the last count) were being charged for services they were not receiving but, in many cases, the banks didn’t have the data they needed to find out whether customers had been dudded or not. 
And ASIC is pretty sure why such systemic issues emerge at regular intervals, stating:
Cultural factors in the banking and financial services institutions covered by this report may have contributed to the systemic failures we observed. 
The ASIC report details the reason for the cultural failings it observed in the wealth management businesses of the major banks:
Some advice licensees prioritised advice revenue and fee generation over ensuring that they delivered the required services.
ASIC found that the IT systems in wealth management in the major banks were stone-aged at best. The banks appear to have no idea what they don’t know, but are all working to identify how many more customers need to be compensated. 
ASIC also found that some banks failed to keep complete or accurate records to enable compliance to be analysed. And in some cases, authorised representatives had taken customers’ files with them when they left the firms, making it impossible to check whether or not advice was given.
It appears that every time a question is asked of the big banks, another example of bad behaviour is unearthed.
In the recent questioning of bank CEOs by the House Economics Committee, questions were raised with all CEOs about systemic issues. The answers were generally evasive and short on specifics. 
For example, when talking about a different but related, financial planning scandal, Andrew Thorburn, NAB CEO, said:
“We did a review and we had an independent party come and do that review with us, and we concluded and we stand by that, that it was not a systemic issue.”
What Mr Thorburn and other CEOs neglected to mention was that the banks had, as revealed in ASIC’s report, all already been in the middle of deep discussions about so-called “fee-for-services failures” . The regulator wrote:
Of particular concern is that many of the banking and financial services institutions covered by this review publicly state that their core values include being customer focused, “doing what is right” for customers, and acting with integrity. We encourage the institutions reviewed in this report to consider how their culture may have supported these systemic failures, and why their stated commitment to providing excellent service to customers is not translating into good outcomes for customers in the many instances we identified in this report.
At long last, ASIC has highlighted cultural issues across the industry that the boards and management of the largest banks have long refused to acknowledge. 
The regulator has done its job and found compelling evidence that the culture of the banks is rotten. 
It’s over to the politicians now.
Pat McConnell is honorary fellow, Macquarie University Applied Finance Centre, Macquarie University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/pat-mcconnell-13137" target="_blank">here</a>.
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ASIC report highlights a deep culture problem in Australia’s banks

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Joel Robinson

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.

The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.

The challenge for investors is that suitable product is becoming harder to find.

For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.

Today, the development pipeline looks very different.

Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.

The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.

&nbsp;

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.

The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.

[smartcode_project:default project_id=112194 project_image_fid=808]

For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.

One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.

[smartcode_project:default project_id=149098 project_image_fid=330594]

Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.

The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.

Parkdrive Apartments, Chermside

Priced from: $749,000

The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.

The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.

For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.

Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

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]

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.

Jonathan Chancellor

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