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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.
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jchancellor-FAypfDUnLy

Italian Snaidero kitchen in Prahran offering

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

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<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>.
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Rate tracker mortgages could provide some certainty for customers

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<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 (%)
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<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
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<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.
 
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Western Australia’s economic future remains uncertain after the mining boom: study

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

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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>.
 
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The 7 dangers of overvaluing property this spring: Tim Godden

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

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<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>
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are aged 65 and over; 
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have a long-term health condition or disability; or
</li>
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have children aged under 15.
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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>.
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Can the private rental sector provide a secure, affordable housing solution?

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

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<div class="section">GUEST OBSERVER</div>
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<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>
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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.
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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.
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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.
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<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.
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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.
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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.
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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.
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<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>. 
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Infrastructure construction work in midst of downturn: Westpac's Andrew Hanlan

Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

&nbsp;

FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Jonathan Chancellor

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