<html><body>
The Melbourne restaurateur Joe Mammone has listed his Prahran townhouse with $1.7 million hopes.
He owns two of Melbourne Italian fine dining establishents, Sarti and Il Bacaro.
The <a href="https://www.realestate.com.au/property-townhouse-vic-prahran-123773346" target="_blank">three-bedroom 2000-built home</a> features a living space leading to a balcony with views of the city.
The home is part of a complex of 10 townhouses designed by architecture firm McBride Charles Ryan whch won the Multi-Residential Architecture Award at the Australian Institute of Architects Victorian Chapter Awards in 2001.
Mammone has since gutted and renovated the interior including installing an Italian-made Snaidero kitchen.
He has bought a similar property nearby in Prahran and is pursuing another townhouse development with a friend.
</body></html>

jchancellor-FAypfDUnLy

Italian Snaidero kitchen in Prahran offering

<html><body>
An app that eases property tax management has been shortlisted as a finalist in the Optus MyBusiness Awards in the Fintech Business of the Year category.  
Abakus Apps, founded in 2015 by Brenton Tidow, was launched July 2016 and is designed to help users self-manage their investments, tax returns and get an estimate of their tax position at any time during the financial year..  
Brenton Tidow, Abakus Apps founder said as an active property investor, Abakus Apps was created from the frustration of handling 'pesky' expense receipts relating to investments and he wanted to develop a unique and intuitive tool that uncomplicated property tax.
“The MyBusiness Awards are well-known as one of the most prestigious national awards programs that celebrate some of Australia’s best and most innovative businesses and individuals," he said.
"To be a finalist is a massive achievement for me personally, as I’ve bootstrapped the business myself and I’m involved in every aspect of its operations."
Abakus Apps is a subscription, cloud-based app with a monthly fee of $5.99 for an unlimited number of properties (paid through the iTunes Store or the Google Play Store).
</body></html>

Property 101: Abakus Apps announced 2016 MyBusiness Awards Finalist for property tax software

<html><body>
<img src="https://counter.theconversation.edu.au/content/67301/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
In the ongoing debate about the transparency of Australia’s big banks, the idea of rate tracker mortgages has been gaining traction.
This is a mortgage that is tied to the cash rate set by the central bank (in Australia, the Reserve Bank of Australia), with an additional fixed margin set by the lender (usually a bank).
The rate follows the ups and downs of the cash rate, similar to what already occurs in short term lending markets like the bank bill swap rate (the rate at which banks lend each other money), says Professor Milind Sathye, from the University of Canberra.
When it comes to applying this same idea to mortgages, customers have more certainty because they know when the Reserve Bank moves rates, their rate will also move in line with this, Sathye says. The risk lies in the parameters banks may put around these types of loans, with additional fees or a floor rate.
Even though Australia’s big four banks haven’t been too keen on the idea, Sathye says this type of mortgage would provide a solution to the problem of trust in the banks. In addition he says it would force banks to be more efficient, to contain their costs given that the margin charged on top of the tracker mortgage rate remains fixed.
To hear the interview in full, <a href="https://theconversation.com/business-briefing-rate-tracker-mortgages-67301?utm_medium=email&amp;utm_campaign=Latest%20from%20The%20Conversation%20for%20October%2021%202016%20-%205848&amp;utm_content=Latest%20from%20The%20Conversation%20for%20October%2021%202016%20-%205848+CID_a60bde7b4e4b7f336fde84dac19833b2&amp;utm_source=campaign_monitor&amp;utm_term=Business%20Briefing%20rate%20tracker%20mortgages" target="_blank">click here</a>.
Jenni Henderson is editor, Business and Economy, The Conversation and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here</a>.
Milind Sathye is professor of Accounting, Banking and Finance, University of Canberra and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/milind-sathye-4408" target="_blank">here</a>.
</body></html>

Rate tracker mortgages could provide some certainty for customers

<html><body>
<img src="https://counter.theconversation.edu.au/content/67229/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The mining industry will still be important to WA’s economy in the future and new growth is unlikely to come from other industries like tourism and agriculture, new research has found.
A growing, and ageing, population is likely to drive continued jobs growth in the health and social services sector, and in education and training. 
Our report not only highlights what industries might provide the most employment in the future but also what form that employment will take. We found work will be more precarious and with reduced hours.
In the latest state cabinet reshuffle, WA Premier Colin Barnett indicated that changes in ministry portfolios were aimed at supporting economic diversification outside the resources sector. The spotlight has been on the tourism industry as a potential new growth sector as the mining sector slows, with the premier himself taking on the role of tourism minister. 
But the government might need to rethink these policy priorities to support the creation of secure work, in a wider range of industries.
<h2>The future industrial landscape in WA</h2>
Despite a fall in iron ore prices, the mining industry continues to maintain its dominance in the WA economy, contributing about 37% of the gross value added to the economy in 2015. By contrast, the agriculture, retail, and accommodation and food services sectors in WA contributed little or no growth in value in 2014-15. 
Although more jobs were created in the hospitality sector in 2014-15, employment in agriculture and retail fell over the same period. Two sectors that have delivered growth in both economic value and employment in 2014-15 are health care and social services, and arts and recreation. 
Growth in industry value added to the economy and employment in WA, 2014-15 (%)
<a href="/images/2016/10/21/image-20161018-16145-zey8ai.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/21/image-20161018-16145-zey8ai.jpg" alt="">
<h4>Author provided</h4>
Employment in health care and social assistance in particular has expanded as a share of the state’s total employment, from 9.5% to 12% between 2010 and 2015. This is not surprising given the growing demands placed on WA’s health care system from an ageing population.
The industrial landscape in WA seems to have changed little despite the slowdown of the resources sector, which begs the question, which of the state’s industry sectors are likely to step up in the future? 
There are some signs that investment in energy production, especially LNG, is starting to deliver positive employment returns, but the contribution of high-tech manufacturing to the state’s economic future is less clear, despite the state’s great strengths in science, research and innovation. 
<h2>The future of the workforce in WA</h2>
West Australians now face a future characterised by weaker labour market demand, rising precariousness and reduced work hours. Western Australia’s unemployment rate has traditionally remained well below the national rate, but for the first time since 2006, the state’s unemployment rate exceeded the national average.
Unemployment rate in WA versus Australia, 2006 to 2016 (%)
<a href="/images/2016/10/21/image-20161018-16176-psw2yr.jpg" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/10/21/image-20161018-16176-psw2yr.jpg" alt=""></h4>
<h4>Author provided</h4>
Underemployment has risen more rapidly in Western Australia than in other states and territories, from 6% in 2011 to 10% in 2016. The share of WA employees on casual contracts has also been on an upward trajectory in recent years.
This signals career pathways are likely to be less straightforward in the future. It may be that more and more West Australians can expect to hold multiple jobs to make up preferred work hours, and multiple job turnovers and career shifts before retirement. 
During the peak of the mining boom, the gap between the rich and the poor grew, with low-income households falling behind other households in WA at a faster rate than the rest of Australia. With the slowdown of the resources sector, there has been a fall in overall income inequality in WA. 
However, there remains a persistent gap between the rich and the poor in terms of wealth. The richest 20% of WA households still hold around two-thirds of the state’s aggregate household net wealth. 
Share of household net wealth by quaintile: Western Australia, 2013-14
<a href="/images/2016/10/21/image-20161018-16156-3zp1uo.jpg" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/10/21/image-20161018-16156-3zp1uo.jpg" alt=""></h4>
<h4>Author provided</h4>
The poorest 20 percent of households hold a mere 0.8 percent of the state’s total household net wealth by value. The ideal of closing the gap between rich and poor remains out of reach despite the end of prolonged economic bonanza that has mostly benefited the rich.
<h2>Planning for the future</h2>
Much has been made of growing economic diversification and support for non-resource sectors. However, our research questions whether industries (such as agriculture, food and tourism) are of a sufficient scale to continue the state’s economic growth.
In relation to the labour market, Western Australia’s future appears to be one marked by reduced work hours and a greater risk of job insecurity.
Clearly there needs to be a focus on designing policy settings that create secure work for the state’s working age population. This may also require a shift in labour market expectations towards more flexible career pathways in a number of industries.
 
Alan Duncan is director, Bankwest Curtin Economics Centre and Bankwest Research Chair in Economic Policy, Curtin University and can be contacted <a href="https://theconversation.com/profiles/alan-duncan-100759" target="_blank">here</a>.
Rachel Ong is deputy director, Bankwest Curtin Economics Centre, Curtin University and can be contacted <a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">here</a>.
Yashar Tarverdi is research fellow, Curtin University and can be contacted <a href="https://theconversation.com/profiles/yashar-tarverdi-309797" target="_blank">here</a>.
All are authors for The Conversation.
 
</body></html>

Western Australia’s economic future remains uncertain after the mining boom: study

<html><body>
GUEST OBSERVER
With house prices surging across Australia in the past year, the demand for properties in the market has become increasingly competitive.
Knowing the best ways to sell a house can make all the difference between a successful sale and struggling to sell for months on end. Many people assume renovations are necessary to increase the sale price of houses, but that isn’t the case. 
1. Home presentation is a huge factor when selling a home
It might sound quite obvious, but home presentation has a huge influence when it comes to selling a house. Sometimes good photography or editing is not enough. If buyers inspect the property and find things to fix, they will reduce the price where possible. Always maximise space to create a larger look and feel – less is more in this case. Make sure to remove any rugs, floor or door mats as this will enhance the perception of floor space size in photos. Premium presentation is key and your photographer and real estate agent will love you for it, as there won’t be any extra work to do.
2. Professional looking photography or re-touching is essential
If you don’t have any professional looking photography or haven’t done any retouching, you are already behind. Most homes (small to medium or large) usually only require 8-14 photos. Ensure the main selling feature areas are on display including the front exterior of home, the main or best bathroom, master bedroom, kitchen, lounge or living area, dining room, and outside balcony or view.
It isn’t necessary to show the buyers too much or everything the home has to offer, but even simply just an overview of the property to entice them to visit it. However, agents differ and may market properties differently. Some may prefer a full day shoot and shoot every single bit of the house in case they need to supply images to interstate or overseas clients or investors. Also keep in mind that rooms can look different based on the height of photos, so it is better to take a wide selection of images to choose from. This is especially important in areas such as bedrooms, kitchen, dining room and balcony view areas.
3. Have detailed floor plans
Floor plans continue to be a growing trend in real estate and have been very popular within Melbourne and Sydney for years. 1 in 5 buyers would ignore a property listing completely if it didn’t include a floor plan – showing how important it is to include it in all property marketing. It allows buyers to measure the space, visualise the flow of the rooms, how they fit in relation to other rooms and picture their furniture inside the home. Sellers can draw floor plans themselves. All that is required is grid paper, tape measure and some patience!
Another useful tip is combining photos and floor plans together through an online interactive floor plan. Symbols on the plan indicate the angle the photo was taken from, enabling buyers to easily navigate through a property by clicking on each photo and having a better understanding of the layout. Floor plans are also handy for potential investors and gives your listing a competitive advantage over other sellers who don’t have one.
4. Take aerial photos
 Aerial photos are a unique tool to showcase a property in one glance within the context of its neighbourhood and surrounding hot spots, such as local attractions and shopping centres. It gives buyers perspective. A property’s size can be determined in square metres, but cannot be interpreted until the property is seen in its entirety.
The quality of an aerial is directly related to its effectiveness. Be aware of aerials with clouds, flat or dull colours, horizons that aren’t level, too much reflection off ground surfaces and images that aren’t in focus. Hiring professionals to do aerial editing is a great and cost-efficient way to make images more eye-catching and stand out from the rest.
5. Use professional copywriting
A listing is taken to the next level with professional copy. Grammatically correct, well-written text will clearly articulate the benefits and features of the home and attract more buyers. Ideally, the copy should be no longer than a paragraph, with 150 words or so. In some cases, not everything can be shown about a property in photos. If a listing has a unique history or a fascinating architectural element that cannot be displayed well in a photo, professional copywriting will creatively explain the home’s special features to potential buyers and increase buyer interest in the property.
Brad Filliponi is co-founder and director of digital photo editing service, BoxBrownie.com and can be contacted <a href="https://boxbrownie.com" target="_blank">here</a>.
</body></html>

The five tips you need to know to sell your property for more

<html><body>
GUEST OBSERVER
As national property prices continue to climb in most capital cities – by more than nine percent in Melbourne and Sydney – we encourage buyers and sellers to get serious about the property valuation process as seasonal transactions gather pace.
The Spring season historically attracts a flurry of activity. As prices increase alongside competition, sellers need to be confident in the true value of a property to attract appropriate buyers, while buyers need to ensure emotions are not driving purchasing decisions and risking finances.
Here are the seven dangers of overvaluing property that buyers and sellers must be aware of:
Potential to miss out on initial buyer interest
If a seller’s asking price is too high, in most instances a property will sit on the market, while more appropriately priced properties are sold. As a result, a seller may drop their asking price but in doing so, risks losing the initial round of buyer interest - often strong when a new property is listed.
Remember, the longer a property is on the market, the more difficult it can be to stimulate interest. The cost to advertise a property for an extended period can also compromise gains made from a sale.
Over-confident agents can over-promise on price
Sellers need to be confident in their choice of real estate agent, as agents have been known to overvalue a property to win business. While this is not characteristic of most agents, I encourage sellers to request and check an agent’s sales history, and compare this with median sales prices of properties sold in the area.
Sellers should always consider a valuation from more than one real estate or valuation agent, and I advise buyers to do the same before making an offer, as this will assist in sales negotiations.
Websites such as realestate.com.au also provide sales prices of recently sold properties nationally.
Lender valuation doesn’t always match market price Most banks or lenders independently value a property before granting a loan. Buyers need to be mindful that the value set by lenders is often lower than the market value, usually to protect the lender from potential risks should the buyer struggle to meet loan repayments.
If there is a difference on price, this may jeopardise the loan approval process and require the buyer to pay a larger deposit. When applying for finance, I encourage buyers to save a 20 percent deposit rather than 10 per cent to act as a financial buffer.
Emotional purchases can hurt pockets
Certain buyer demographics, such as owner-occupiers, are known to place a higher price on a property when emotions are involved. Buying a property is a major life investment, but too often I see buyers stretching their finances to secure their dream home. With more than two-thirds of owner-occupied mortgages now held by duel income households, and over 700,000 households at risk of mortgage stress, buyers need to be serious about paying within their means.
Investors not immune to defaults 
Housing loans to Australian investors totaled more than $11.8 billion in July, and the 30-plus day delinquency rate for prime residential mortgage backed securities is reportedly rising.
While there is no need to ring alarm bells, less sophisticated investors risk biting off more than they can chew at a time when interest rates are at record lows. As a general rule, I suggest investors have more than 30 percent in equity before releasing this to purchase another property. Any investor, novice or seasoned, should also engage the help of a trusted property mentor and financial advisor before making investment decisions.
Seasonal competition alters prices 
Buyers purchasing property in highly sought after locations and in popular periods such as Spring should expect prices to increase above their market value – especially properties sold at auction, where prices can climb by tens or even hundreds ofthousands. Sellers equally need to be mindful that buyer competition, trendy locations and investor hotspots can come and go. Just because a property is sought after at the time of auction or sales campaign does not mean the property will be valued at the same amount in 12 months’ time. 
Renovations don’t always offer immediate gains
It is not uncommon for property investors to purchase older properties and make cosmetic and structural improvements in the hope of making quick capital gains. While owner-occupiers may undertake renovations to maximise a future sale, short term investors risk losing time and money if they over-estimate a property’s post-renovation value. Before buying, I recommend investors obtain quotes from at least three qualified trades companies to compare costs – once a building inspection is completed – and obtain market intelligence on properties sold in the area to ensure sales history aligns with expectations.
Buyers and sellers need to do their homework to ensure they are confident on the market value of a property, as well as the future demand of property in the location being considered. When completing a suburb profile, buyers should always remember to investigate an area’s historical and projected population growth, established and planned infrastructure, percentage of tenants and owner occupiers, vacancy rates, and median income demographics.
Tim Godden is national director of investor buying service Seekology and can be contacted <a href="https://seekology.com.au" target="_blank">here</a>.
 
</body></html>

The 7 dangers of overvaluing property this spring: Tim Godden

<html><body>
Speech from APRA Chairman Wayne Byres before before Senate Economics Legislation Committee, Canberra
Earlier this week, APRA published an information paper on risk culture - a topic that we have given greater attention to over the past few years. The paper focusses, amongst other things, on how Boards of regulated institutions have gone about the task of assessing the risk culture within their organisations, given the introduction of specific prudential requirements in this area from January 2015.
Assessing risk culture is no easy task. But, as the global financial crisis showed, if an organisation has a poor attitude to risk-taking and risk management, it can ultimately threaten an institution’s financial viability. So one of our key messages is the need for continued investment of time and attention by senior leaders on this issue.
Just as regulated institutions will refine and improve their own practices, we will continue to refine our approach and methodologies for making assessments of risk culture within regulated institutions. We will also, in particular, be looking more closely at the influence of remuneration arrangements on that culture.
As the Committee knows well, there have been some serious allegations of inappropriate and unfair treatment of life insurance claimants by The Colonial Mutual Life Assurance Society Limited, trading as CommInsure. While ASIC has been dealing with the specific customer cases, APRA takes an interest in what these cases tell us about the strength of an institution’s governance, risk management and risk culture.
Our work with CommInsure has targeted two main issues. First, APRA has engaged with the Board and senior management of CommInsure to gain assurance over the robustness and completeness of the independent reviews commissioned to investigate the allegations, and ensure to stakeholder and community expectations are considered through this process. We have also met with the whistleblower who brought the issues to light, and are considering whether the whistleblowing provisions in the Life Insurance Act designed to prevent the identification and victimisation of whistleblowers have been adhered to.
Earlier this year, APRA also wrote to the Boards of all active life insurers, as well as to a selection of superannuation trustees, seeking information on the effectiveness of their governance and oversight mechanisms for matters such as claims handling, benefit definitions, rejected claims and customer complaints. Based on the responses received, we issued a report last week identifying areas in which insurers and trustees can improve their management of life insurance claims.
APRA and ASIC have been working closely on all of these matters, which remain ongoing.
Finally, our supervisory work on housing lending standards continues. Given the environment of heightened risks, our objective has been to reinforce sound lending standards, particularly in relation to the manner in which lenders assess the capacity of borrowers to service their loans. Over the past year, we believe the industry has appreciably improved its lending standards. But risks within the housing and residential development markets remain elevated. We are therefore giving thought to how best to have improved standards firmly embedded into industry practice, such that they are not eroded away again over time.
</body></html>

Risks within the housing and residential development markets remain elevated: Wayne Byres

<html><body>
<img src="https://counter.theconversation.edu.au/content/63880/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Despite a relatively healthy supply-side picture for the general housing market, the expected trickle down of housing opportunities to low-income households in Australia has failed to materialise.
The UK Department for Communities and Local Government boasted this year of a seven-year high in construction starting on new houses; in the 12 months to December 2015, there were a little over 143,500 housing starts. With a population of 54.3 million, the English housing sector is adding one new dwelling for every 380 persons. 
Over the same period there were 231,411 housing approvals in Australia. With a population of 23.5 million in 2014, the Australian housing sector is adding one new dwelling for every 102 persons.
The supply of new housing has matched Australian population growth in recent times. The figure below profiles growth of the housing stock between 2006 and 2014, and compares it to population growth over the same period Australia-wide, as well as across the state capitals, Canberra and Darwin. 
Growth in the national housing stock has kept pace with population growth for almost a decade.
However, the picture differs across state and territory capitals. In Perth and Sydney, increases in the housing stock are insufficient to match the increase in these state capitals’ populations. But there are different patterns underlying this common outcome.
In Perth, population growth was exceptionally strong. It was faster than any other city: its population soared (by 2014) to more than 28% above 2006 levels. Such rapid growth would stretch the capacity of most housing construction sectors, even in the absence of any supply-side impediments. 
Sydney’s population growth (at 14%) is below the average across all cities (17%). Despite this relatively low increase in its population, housing supply failed to produce a matching increase in the housing stock. 
<h2>A housing system under pressure</h2>
The balance between growth in population and expansion in housing stock through new housing supply is thought to be relevant to an understanding of housing affordability pressures. New housing construction that matches population growth should ease price and rent pressures, where all else is equal. 
Although most new housing is built and sold in the higher price ranges and therefore purchased by higher-income groups, the housing they vacate will fall in price. It therefore becomes accessible to middle-income groups. And, as they shift upmarket, the housing they move out of falls in price and becomes accessible to lower-income households. 
Eventually, this filtering process opens up new opportunities for the homeless.
Housing affordability is generally thought to be worsening, especially for low-income households. Homelessness numbers remain stubbornly high. And official figures for June 2015 reveal there were 154,000 households on state housing authority waiting lists for public housing.
It is likely that the length of these waiting lists underestimates the need for public housing. We have modelled the income rules determining eligibility for public housing, and estimate that there are nearly 900,000 households satisfying these income eligibility criteria. 
More than two-thirds of these households (650,000) contain one or more persons who:
<ul>
<li>
are aged 65 and over; 
</li>
<li>
have a long-term health condition or disability; or
</li>
<li>
have children aged under 15.
</li>
</ul>
These are people who value the security of tenure that has typically been offered by public housing, but who are unlikely to be able to buy their own homes. There are nearly 1 million individuals in these households – a group that is currently ill-served by Australia’s housing system. 
<h2>Housing solutions through private-public partnerships</h2>
The need for new housing solutions for these low-income groups is clearly a pressing requirement. However, raising the capital funding to expand public or social housing to meet their housing needs seems improbable. 
Secure leasing is a private-public partnership option that offers a rent premium to those private landlords willing to offer long-term leases to those satisfying the income tests for public housing. They would also be either of pension age, disabled or caring for children. 
In the unregulated Australian rental housing market, leases are almost always short term. This gives landlords the option to realise investments in the near term. Hence, a long-term lease proposal requires Australian governments to offer landlords a rent premium to compensate them for the money sacrificed when they enter into a long-term arrangement.
Consider a reform scenario in which landlords are given an incentive to offer five-year secure leases to households eligible for public housing who are now living in the private rental sector, with rent increases capped at increases in the consumer price index over the secure lease period.
We estimate that, over five years, the budgetary cost to the government to house these 650,000 households in secure lease arrangements is A$13.4 billion.
The uneven distribution of these households across states and territories means the program’s cost varies across the five most-populous states. Our estimates are $4.7 billion in New South Wales, $3 billion in Victoria, $2.5 billion in Queensland, $1 billion in South Australia, and $1.8 billion in Western Australia – with the remainder borne by Tasmania and the territories. 
This cost is much more affordable than the capital funding required to expand the social housing stock through the construction of new social housing dwellings.
The Australian tax system currently provides indirect support for the supply of private rental housing through tax concessions such as negative gearing and capital gains tax discounts. Is it now time to harness some of the private investment stimulated by these concessions to help improve the supply of affordable and secure housing opportunities for low-income households.
Gavin Wood is professor of housing, RMIT University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gavin-wood-113723" target="_blank">here</a>.
Rachel Ong is deputy director, Bankwest Curtin Economics Centre, Curtin University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">here</a>.
</body></html>

Can the private rental sector provide a secure, affordable housing solution?

<html><body>
GUEST OBSERVER
The SMSF Association strongly endorses the Federal Government’s decision to legislate to improve the professional standards of financial advisors.
Improving the educational and ethical standards of financial advisors has been a long-term policy of the organisation, especially as it relates to the $622 billion self-managed super fund (SMSF) sector.
The Minister for Revenue and Financial Services, Kelly O’Dwyer, announced that the Government will enact legislation tomandate professional standards for financial advisors, including a code of ethics and compulsory education requirements for all new and established advisors.
Having financial advisors who meet rigorous standards and have completed relevant education courses is crucial to ensuring consumers receive the best quality financial advice.
This is especially important with the increasing demand for financial advice from the baby boomer generation who are approaching or entering retirement.
We look forward to working with the new independent standards setting body to develop improved educational standards for the financial advice industry. 
A priority for the Association will be to ensure that advisors providing advice to SMSF trustees have the requisite educational qualifications to do so. 
The new standards will begin on 1 January 2019 and the final transition deadline will be 1 January 2024 for existing advisors to meet the new degree-equivalent educational status.
This timeframe will give the industry sufficient time toadjust to the new regime. But all advisors should not lose focus on their own ongoing professional obligations to their clients to keep improving and developing their advice capabilities.
Jordan George is head of policy, SMSF Association and can be contacted <a href="https://www.smsfassociation.com" target="_blank">here</a>.
</body></html>

Move to lift professional standards of financial advisors backed: SMSF Association

<html><body><div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 1">
<div class="section">GUEST OBSERVER</div>
<div class="section"> </div>
<div class="section">The ABS quarterly survey “Engineering Construction Activity” provides an update of the infrastructure sector, including details on commencements and the work pipeline. Here we provide an overview of the sector.</div>
<div class="section">
<div class="layoutArea">
<div class="column">
Activity: Infrastructure construction work is in the midst of a downturn, from record highs, as the mining boom transitions from the investment stage to the output phase.
<a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.06.55%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.06.55%20AM.png" alt="">
Total real infrastructure activity contracted by almost 10 percent in the June quarter 2016, to be 26 percent below the level of a year ago. That was the fourth year of contraction and follows a fall of 9 percent in the year to June 2015, as well as declines of 3 percent in each of the two years prior to this.
Weakness is increasingly centred on the oil &amp; gas sector, as projects in WA and the NT near completion. Work on other mining projects and mining related projects appears to be stabilising, at a low level, as is work in Qld.
Private non-mining infrastructure activity has strengthened, increasing by 13.5 percent over the past year, centred on NSW and Victoria.
<a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.08.05%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.08.05%20AM.png" alt="">
Public works are trending higher, up from the low of September 2014. Over the past year, public works rose by 16 percent, with further upside near-term.
Commencements: In the June quarter, some $17.0bn worth of projects began work. This adds to the likelihood that the low point for commencements is behind us. For the 2015/16 year, commencements totalled $65.8bn. That is an increase of 8.8 percent on the 2014/15 outcome of $60.5bn. This represents a modest bounce, with commencements still well below the $118bn in 2012/13.
<a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.09.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.09.02%20AM.png" alt="">
The turnaround in commencements is being led by the public sector. In 2015/16, public commencements were $32.8bn. That is up $6.2bn on the year prior, centred on roads, rail, and telecommunications.
Private commencements stabilised in 2015/16, at $33.1bn, following $33.9bn in 2014/15, down from $88bn in 2012/13.
Work pipeline: Significant progress has been made in reducing the sizeable work pipeline. The pipeline now stands at $71bn, down from $77bn a year ago and moderating from a peak of $169bn in September 2012.
<a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.10.13%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.10.13%20AM.png" alt="">
Prospects are for a further decline in infrastructure activity as work on key gas projects is completed and given the absence of new mega projects. Public works will provide a partial offset as state governments boost spending on major transport projects. Notably, the value of total work done in Q2, at $22bn, would need to fall by around 20 percent to be in line with the current level of commencements. 
Activity: overview
In the June quarter 2016, the value of infrastructure activity declined by a further 9 percent. Over the past year, activity contracted by almost 24%, following a 10% decline over the previous year.
In dollar terms, the value of work fell by $2.16bn in the quarter, with a $2.28bn fall in private sector activity swamping a $115mn rise in public works. Over the year, activity is down by $6.75bn.
<a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.11.31%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.11.31%20AM.png" alt="">
Private mining
Construction work on oil &amp; gas projects continues to moderate, down $2.55bn in the period, as projects are progressively completed. That brings the decline over the past year to $5.1bn.
Work on other mining projects and mining related projects was relatively stable in the June quarter, declining by only 1%, with a minimal dollar impact. However, over the past year, there was a fall of 50 percent, a decline of $3.2bn. This was as work on pipelines and harbours wound down, as well as a moderation in construction work on coal and iron ore projects.
By way of context to the mining investment downturn, infrastructure work peaked at about $21bn in Q4 2013, is currently around $9.5bn and would fall towards $4bn to be in line with the current level of commencements. On this figuring, close to 70 percent of the downturn in the value of mining infrastructure activity is behind us. (These are Westpac estimates.)
Private non-mining
Private non-resource projects cover roads &amp; bridges, utilities (water supply, sewerage, electricity), telecommunications, and recreation.
Activity in the private non-mining segment strengthened further in the June quarter, increasing by 6.6 percent, a rise of around $300mn. Annual growth lifted to 13.5 percent, up almost $600mn on the level of a year ago. The lift in activity was evident in electricity generation (Victoria) and in sewerage &amp; drainage (NSW).
In the case of NSW, we suspect that there are some positive spill-over effects from the housing boom, boosting the need for infrastructure to service new residential areas. The durability of the lift in private non- mining infrastructure activity remains uncertain. Commencements are yet to establish a clear upward trend.
<a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.12.35%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.12.35%20AM.png" alt="">
Public infrastructure, upturn
The public infrastructure cycle has turned, led higher by a commitment by the state governments to spend more on key transport projects. The public sector now accounts for 1/3rd of total infrastructure activity. Public infrastructure activity grew by a further 1.6 percent in the June quarter, the 6th increase in the past seven quarters. Public works were valued at $7.25bn in the June quarter, $1.0bn above that of a year earlier, a rise of 16 percent.
<a href="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.13.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/Screen%20Shot%202016-10-20%20at%208.13.34%20AM.png" alt="">
There is further upside to activity near-term. Construction work, at $7.25bn, is still running below commencements, which were around $9bn in both March and June. Moreover, the work pipeline has climbed to $19.7bn, up from $12.2bn at the end of 2014, to be above the previous peak of 2010, of $18.7bn.
The upswing in public infrastructure is a nationwide trend. The work pipeline has expanded over the past one to two years in all states. NSW is leading the way, with a work pipeline now at $8.5bn, a near 100% increase on $4.3bn at the start of 2015, to now account for 43 percent of the national work pipeline. As to the $1.0bn increase in public works nationally over the past year, 40% was due to progress on projects in NSW. 
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>. 
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Infrastructure construction work in midst of downturn: Westpac's Andrew Hanlan

<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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News