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ASIC has cancelled the Australian Financial Services (AFS) licence of Western Australian-based Macro All State Investments &amp; Securities Limited (Macro).
In general, the Macro AFS licence allowed Macro to:
<ol>
<li>provide general financial product advice;</li>
<li>deal in a financial product, issue or vary a financial product;</li>
<li>apply for, acquire, dispose of financial products on another's behalf;</li>
<li>operate a managed investment scheme, and</li>
<li>provide a Custodian or Depository service.</li>
</ol>
The directors of Macro included Ms Desiree Veronica Macpherson. 
ASIC obtained various ex parte interim orders in the Perth Federal Court on 21 July 2016 in part restraining Ms Macpherson and various companies that she was a director of, including Macro, from providing financial services advice, dealing in financial products, promoting financial products and otherwise carrying on a financial services business (see: <a href="https://asic.gov.au/about-asic/media-centre/find-a-media-release/2016-releases/16-258mr-asic-obtains-court-travel-restraint-and-asset-preservation-orders-against-west-australian-property-developer-and-macro-realty-group-of-companies/" title="16-258MR ASIC obtains court travel restraint and asset preservation orders against West Australian property developer and Macro Realty Group of companies">16-258MR</a>).
Section 915B(3)(d) of the Corporations Act 2001 states ASIC may suspend or cancel an AFS licence held by a body corporate by giving written notice to the body, if the body lodges with ASIC an application for ASIC to do so, which is accompanied by any documents required by regulations.
ASIC's investigation is continuing into the activities of Ms Macpherson and various companies of which she has been a director.
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ASIC cancels Desiree Macpherson's Macro financial advisory licence 

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GUEST OBSERVER
Planning on listing your property on Airbnb? Here are a few things to consider before you do. 
1. Location of your property and potential demographic of your guests
Guests usually plan to stay close to the centre of activity and culture they would like to experience. For example if your property is near a stadium, there’s a high chance your guests may be attending sports events. Think about the biggest demographic of sports attendees and ask yourself the extent of behaviour you would tolerate in your property. 
2. De-risk your home against bad apples
You can request a security deposit prior to the guest’s arrival. Be wary of Instant Bookings, as this does not give you the opportunity to review the guest before they book in their stay. As a final precaution, have your guests sign a contract before they arrive. This can clearly lay out the check-in and check-out dates and times, rules of conduct, deposit refund or any other concerns you may have. While it may put off some guests, those who have nothing to hide should have no problems with signing it. 
3. Make sure your home is safe for occupation
When leasing out your property, it is your property manager's role to ensure the safety of the premises are kept. If you're putting up an Airbnb listing, this responsibility falls on you. You'll need to check that the smoke alarms are working and that heaters (if any) have been serviced in the last 2 years. Make sure that all doors and locks work smoothly in the event that evacuation is necessary. 
While Airbnb does not conduct any routine inspections on the safety of your property, it's a simple favour you are doing your guest that may save their life. 
4. Check your home insurance coverage for accidents or damage
You’ll need to fully insure your home against the risk of irresponsible guests causing major damage, as seeking damage compensation from Airbnb is difficult. Read the fine print of Airbnb’s Host Guarantee, and don’t assume it will protect you fully. It also does not cover a refusal to vacate.
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5. Long term Airbnb stays could turn your guest into a legal tenant
According to Consumer Affairs Victoria, if your Airbnb guest resides in your property for more than 90 days, they legally gain the rights as a tenant. This means that in the unlikely event that they refuse to vacate after that period, you will need to follow the same eviction procedure through VCAT as a landlord would, costing you significant time and money. 
6. Airbnb income is taxable
Airbnb provides a good source of cash flow for owner occupiers who are still paying off their mortgage. Bear in mind that your Airbnb income is classified as a taxable gain, as the ATO will have your information on hand already. Depending on the length of time you’ve resided at your property, and the length of time you’ve hosted part of your property on Airbnb, you may be liable to pay a portion of capital gains tax. 
7. Your ratings and reviews are your “open for inspections” 
To maximise the occupancy rate of your property, it’s essential that you maintain a high rating by providing your guests with a great experience, so that they are happy to leave a positive review. We would recommend to maintain at least 4.5 stars to remain competitive. Keep your property clean and restocked after each stay. Be honest in your description of your listing, as you’ll be rated for accuracy. 
8. Guests look for a trustworthy host, not just a room
Beautiful photographs, a friendly host profile photo and personal statement will build trust immediately. When there’s nothing hide, there’s nothing to be afraid of. Remember that, while you are risking your property, your guests risk themselves. They are looking for someone credible whom they are comfortable staying with. 
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Must-knows for new Airbnb hosts: Secret Agent

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GUEST OBSERVER
The New South Wales Government is finally biting the bullet on rewriting the Building Professionals Act, the law governing the way buildings in the state are certified and deemed to be fire safe.
The decision follows the fatal 2012 Bankstown fire in an apartment block which had a litany of certification problems and a subsequent government review of the building certification process.
A young woman who was forced to leap from a window on the burning fifth storey of the Euro Terrace apartments died, with another young woman badly injured. When the NSW Deputy Coroner investigated the circumstances of the death he found significant failings in the current regulation of fire protection equipment and systems.
The building was 10 centimetres short of the 25-metre height where sprinklers become mandatory in units. The Deputy Coroner said sprinklers in the unit would have given the two women time to be rescued.
The inquest heard evidence that fire safety problems with the building had been identified in 2010 but nothing substantial had been done to improve it by the time of the fire.
The government then commissioned the review by former Treasury Secretary Michael Lambert who found practices for ensuring apartment fire safety were “totally ineffectual” and had led to the approval of unsafe buildings.
The government is finally acting on his report from last October, which was highly critical of the way in which commercial and apartment buildings in NSW are certified and deemed to be fire safe.
One of the changes recommended is more frequent audits and checks against building owners choosing and paying for their own certifiers.
This is long overdue. These arrangements create a conflict of interest. Allowing owners to choose and remunerate their certifier has the potential for abuse. Certifiers may choose to look the other way when the building owned by a developer who is paying them regularly has a fault which needs rectification.
There is also the issue of the skills of the certifiers. There is an absence of required qualifications and accreditation of people carrying out critical life-saving fire protection work which must be addressed. There needs to be regulation surrounding the accreditation of people working in the fire protection industry.
The owners of apartment buildings must be aware they have a role to play in keeping their building fire safe. They must be educated around the need to maintain and comply with fire standards.
This means ensuring their buildings have effective fire maintenance schemes with detection systems and other fire safety installations, such as extinguishers, hoses, exit lights and fire doors well maintained and up-to-date. Access to fire escapes must be clear at all times, with appropriate evacuation signage directing residents to exits.
Managing agents are accountable for the buildings they oversee, ensuring that fire safety standards are upheld and the fire risk assessment needs to be periodically reviewed.
Each year a qualified person such as a fire engineer or building surveyor must inspect the fire safety measures and provide a Fire Safety Installation Certificate to the owners. The annual Fire Safety Statement must be provided to the council and the NSW Fire Brigades, and must be prominently displayed in the strata building.
There are a number of older buildings which may not currently be subject to these requirements. However, many of these buildings will be subject to a development consent, construction certificate or fire safety order at a future date which may incorporate these requirements.
It is up to owners and managing agents to ascertain what is required. For older buildings that have not had a Fire Safety Schedule, a fire safety consultant can be engaged to conduct an audit on the building, to report on what is there and to suggest upgraded fire safety measures.
There is now greater emphasis on the records and evidence required by building owners to demonstrate regulatory compliance.
The New South Wales government says it will pursue more than 70 suggested changes. We look forward to their implementation.
Matthew Wrigley is managing director and licensee in charge of Perpetual Strata Management and can be contacted <a href="https://perpetualstrata.com.au" target="_blank">here</a>.
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Property 101: Building certification under the blowtorch

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<img src="https://counter.theconversation.edu.au/content/66828/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
When Tim Dunlop, from the Centre for Advancing Journalism at the University of Melbourne, started to research the future of work, his economist friends pointed to all the research showing there will still be jobs.
A few years later and Dunlop isn’t so sure. His book, “Why the Future is Workless”, unpicks the research into everything from machines learning to do our jobs to the idea of governments paying us all a universal basic income.
Dunlop outlines three possible scenarios off the back of all this evidence but he is most convinced that the economy, as we know it, will change dramatically. Costs will be lower, machines that learn will be able to do the jobs we do now, and, if we get the politics right, people will be free to pursue any endeavour they want to.
Rather than fear this future, Dunlop suggests there may be value in embracing it.
To listen to the interview in full, <a href="https://theconversation.com/business-briefing-why-the-future-is-workless-66828?utm_medium=email&amp;utm_campaign=Latest%20from%20The%20Conversation%20for%20October%2012%202016%20-%205783&amp;utm_content=Latest%20from%20The%20Conversation%20for%20October%2012%202016%20-%205783+CID_7a3e515085065110fe029595ff9c68e4&amp;utm_source=campaign_monitor&amp;utm_term=Business%20Briefing%20why%20the%20future%20is%20workless" target="_blank">click here</a>.
Jenni Henderson is Melbourne editor, Business and Economy, The Conversation, and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here</a>.
Tim Dunlop is subject convenor, Centre for Advancing Journalism, University of Melbourne and author for The Conversation. He can be contacted<a href="https://theconversation.com/profiles/tim-dunlop-206944" target="_blank"> here</a>.
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Why the future is workless

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GUEST OBSERVER 
Expensive housing and high household debt leave Australian housing vulnerable. But without a recession or much higher interest rates a property crash is unlikely.
However, the surging supply of apartments and the continuing strength of the Sydney and Melbourne property markets pose an increasing risk. Average dwelling prices in these cities are likely to see another cyclical 5-10 percent price downswing around 2018, with unit prices in oversupplied areas likely to decline 15-20 percent.
The combination of high house prices, huge gains in Sydney and Melbourne, low rental yields and a coming surge in the supply of apartments mean property investors need to be careful. Best to focus on undersupplied, less loved parts of the property market. 
Housing matters a lot in Australia. Having a house on a quarter acre block is part of the "Aussie dream". Housing is a popular investment destination. And the housing cycle is a key component of the economic cycle and closely connected to interest rate movements.
But in the last 15 years or so it has taken on a darker side as a surge in house prices that started in the late 1990s has led to poor affordability and gone hand in hand with surging household debt. Reflecting this, predictions of an imminent property crash bringing down the Australian economy have been repeated ad nauseam since 2003.
This note looks at the risks of a property crash, particularly given the rising supply of units, implications from the property cycle for economic growth and how investors should view it.
High house prices and high debt
The big picture view on Australian residential property is well known. First, Australian housing is expensive. According to the 2016 Demographia Housing Affordability Survey the median multiple of house prices in cities over 1 million people to household income is 6.4 times in Australia versus 3.7 in the US and 4.6 in the UK. In Sydney it’s 12.2 times and in Melbourne it’s 9.7 times.
The ratios of house price to incomes &amp; rents are at the high end of OECD countries and have been since 2003.
Second, the surge in home prices has gone hand in hand with a surge in household debt, which has taken Australia’s household debt to income ratio from the low end of OECD countries 25 years ago to now around the top. This can be seen in the next chart which shows the deviation in the house price to income ratio against its long term average for Australia against the ratio of household debt to income. The shift to overvaluation and high debt mostly occurred over the 1995-2005 period. 
<a href="/images/2016/10/13/Screen%20Shot%202016-10-13%20at%209.09.15%20AM.png" target="_blank">Click to enlarge</a>
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How did it come to this?
While it’s common to look for scapegoats to blame for high home prices and debt the basic driver looks to be a combination of the shift from high to low interest rates over the last 20-30 years which has boosted borrowing and buying power and the inadequacy of a supply response (thanks to tight development controls, restrictive land release and lagging infrastructure) to suppress the resultant rise in the ratio of prices to incomes.
The following chart shows a cumulative shortfall of over 100,000 dwellings relative to underlying demand had built up by 2014. 
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A home price crash remains unlikely
The surge in prices and debt has led many to conclude a crash is imminent. But we have heard that lots of times over the last 10-15 years. Several considerations suggest a crash is unlikely.
First, we have not seen a generalised oversupply and at the current rate we won’t go into oversupply until around 2017-18.
Second, despite talk of mortgage stress the reality is that debt interest payments relative to income are around 2004 levels.
Third, Australia has still not seen anything like the deterioration in lending standards seen in other countries prior to the GFC. In fact in recent years there has been a decline in low-doc loans and a reduction in loans with high loan to valuation ratios. 
<a href="/images/2016/10/13/Screen%20Shot%202016-10-13%20at%209.12.51%20AM.png" target="_blank">Click to enlarge</a>
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Finally, it is dangerous to generalise. While property prices have surged 60 percent and 40 percent over the last four years in Sydney and Melbourne, they have fallen in Perth to 2007 levels and have seen only moderate growth in the other capital cities.
But the risks on the unit supply front are a concern
To see a property crash - say a 20% plus average price fall - we probably need to see one or more of the following:
A recession – much higher unemployment could clearly cause debt servicing problems. This looks unlikely though.
A surge in interest rates – but rate hikes are unlikely until 2018 and the RBA knows households are more sensitive to higher rates so it’s very unlikely rates will reach past highs. 
However, the risks on the supply front are clearly rising in relation to apartments where approvals to build more apartments are running at more than double normal levels. 
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Due to the rising supply of units, vacancy rates are trending up &amp; rents are stalling, making property investment less attractive.
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Outlook 
Nationwide price falls are unlikely until the RBA starts to raise interest rates again and this is unlikely before 2018 at which point we are likely to see a 5% or so pullback in property prices as was seen in the 2009 &amp; 2011 down cycles. Anything worse would likely require much higher interest rates or recession both of which are unlikely. However, it’s dangerous to generalise: 
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Sydney and Melbourne having seen the biggest gains are more at risk and so could fall 5-10% around 2018. 
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Price growth is likely to remain negative in Perth and Darwin as the mining boom continues to unwind but this should start to abate next year. 
The other capitals are likely to see continued moderate growth and a less severe down cycle in or around 2018. 
But units are at much greater risk given surging supply and this could see unit prices in parts of Sydney and Melbourne fall by 15-20% as investor interest fades as rents fall. 
The property cycle and the economy 
Slowing momentum in building approvals points to a slowdown in the dwelling construction cycle ahead. While this might be delayed into 2017 as the huge pipeline of work yet to be done is worked through, slowing dwelling investment combined with a slowing wealth affect from rising home prices mean that contribution to growth from the housing sector is likely to slow. However, as this is likely to coincide with a fading in the detraction from growth due to falling mining investment and commodity prices it’s unlikely to drive a slowing in the economy. 
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However, a likely decline in rents (as the supply of units hits) will constraint inflation helping keep interest rates low for longer. 
Implications for investors 
There are several implications for investors: 
Firstly, over the very long term residential property adjusted for costs has provided a similar return to Australian shares.
Its low correlation with shares, lower volatility but lower liquidity makes it a good portfolio diversifier with shares. So there is clearly a role for property in investors’ portfolios. 
<a href="/images/2016/10/13/Screen%20Shot%202016-10-13%20at%209.23.09%20AM.png" target="_blank">Click to enlarge</a>
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Secondly, there remains a case to be cautious regarding housing as an investment destination for now. It is expensive on all metrics and offers very low income (rental) yields compared to other growth assets. This means a housing investor is more dependent on capital growth. 
Thirdly, these comments relate to housing in aggregate and right now it’s dangerous to generalise. Apartments in parts of Sydney &amp; Melbourne are probably least attractive but for those who want to look around there are pockets of value. 
Finally, investors need to allow for the fact that they likely already have a high exposure to Australian housing. As a share of household wealth its nearly 60%. Once allowance is made for exposure via Australian shares it’s even higher. 
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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The Australian housing market - Shane Oliver on the surging unit supply, the economy and what it all means for investors

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GUEST OBSERVER
The NSW Liberal-National Coalition government has just passed new laws to sell the state’s Land Registry to private interests.
Prosper is bitterly opposed to this sale and has spoken out against it repeatedly.
This is a core government function: “Each state and territory has a central register of all land in the state which shows the owner of the land. The land title is the official record.”
Land holding in Australia is a legally enforceable contract between individuals and government – usually described as The Crown to emphasise its ultimate sovereignty. Holders commit to use the land, to pay taxes due and submit to the authority of the elected government.
Accurately registering who owns which parcel of land matters – for individual financial protection, and for counter-parties like banks lending against the asset. Making titles more risky will impose staggering costs on the victims of fraud and misappropriation – and the banks.
Under Australia’s globally-admired Torrens Title system, government guarantees title against fraud and abuse without limitation. This will no longer apply if the register is sold to the highest bidder and privately provided. Consider the legal argy-bargy that will be certain to arise over any recording error by the private provider.
We are not the only opponents of this sell-off.
The UK recently offered its poor tax system as an excuse to attempt a similar selloff. UK land valuers obliged the conservative government to withdraw the idea, pointing out it would allow a private entity to adjudicate on the conflicting interests of sellers, buyers, lenders and neighbours.
What if the neo-conservatives actually wanted to hide who owns the land? As it is in the Scotland where despite strenuous efforts that began with the Registration Act of 1617 and accompanying Register of Sasines, the owners of only 26% of the land in Scotland have ever been identified. Ever.
Consider the implications of unrecorded title. It would exempt owners from public scrutiny, land tax, capital gains tax and the many pesky land use rules lesser mortals are subject to.
The risks and costs of, say, adverse possession pale in comparison to the profound personal benefits such a change would deliver to wealthy landholders able to hire some bovver boys to defend their interests.
The first baby step would be to de-nationalise the land registry – to put wealthy landowners on the road to the creation of allodial title.
David Collyer is campaign manager at Prosper Australia and can be contacted <a href="https://www.prosper.org.au" target="_blank">here</a>.
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Why the privatisation of the NSW land registry should be opposed: Prosper's David Collyer

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GUEST OBSERVER
Yesterday's announcement by NSW Minister for Planning, Rob Stokes, that new planning rules to expedite the approval process for medium density housing across NSW is good news. 
The release of a draft policy and Medium Density Housing Code today will encourage greater choice for home buyers looking for alternatives to freestanding homes and apartments.
Increasingly homeowners are looking towards the middle ground for their housing needs and this means townhouses, terraces and dual occupancies. 
The Medium Density Design Guide will facilitate a higher standard of housing design and ensure development is both appropriate and consistent with community expectations. 
The Design Guide will provide a consistent set of rules for anyone designing these types of low rise homes, making it easier for the building designer and builders. 
Most importantly enabling this form of housing to be ‘approved’ as Complying Development will open up a faster approval pathway than the development application which takes months and usually results in a design being approved by council with few, or no, changes.
The pressure on land prices and housing supply in Sydney means a new generation of homebuyers could have a much larger choice of housing types in the future, if this Code and the changes to the approval process can be supported by councils, industry and the community. 
The design guide will promote better quality medium density housing to be built, in the same way that the apartment design code released many years ago now has improved the design of high rise apartments.
We hope that councils will recognise that medium density housing is a desirable form of housing in Sydney but only accounts for 10 percent of all approvals granted. For medium density houses to be approved as complying development they must meet the specific design standards set out in the design guide, which will ensure the size and scale of low rise development fits into the established streetscapes.
HIA looks forward to reviewing the full details of the new draft planning rules and working with the Department of Planning and Environment to implement these changes.
David Bare is HIA executive director, NSW, and can be contacted <a href="https://hia.com.au/about/Contact.aspx?contactustab=Media" target="_blank">here</a>.
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New planning rules can make a real difference in approval times

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The prestige market as a whole is currently dominated by a lack of supply, which is most keenly felt in traditional blue ribbon prestige areas such as the eastern suburbs and lower north shore, according to the latest report by Herron Todd White.
As a result, transaction numbers remain somewhat subdued, although strong buyer demand for this limited available stock level is translating into bullish prices being achieved in some instances.
Herron Todd White noted that the prestige market shows signs of strong price growth.
"With an overall strengthening in the prestige dwelling market combined with limited stock levels, the prestige apartment market has shown recent signs of strong price growth primarily driven by the empty nester buyers, who previously struggled to realise adequate selling prices as a flow on from the impact of the GFC," said the report.
"While the prestige market is not stimulated as strongly by the impact of interest rate fluctuations, we do consider that savvy participants closely watch the performance of global and local markets and remain concerned about the under performing and fluctuating equities market and moderate performance of the local economy.
"Should stock levels increase, we consider that buoyant market conditions currently enjoyed in the prestige space may weaken."
Prestige residential property in Sydney is generally considered to represent properties greater than $3 million.
Prestige homes are scattered throughout the greater Sydney metropolitan area, with the highest concentrations in the eastern suburbs and eastern beaches, inner city and inner east, inner west and the lower and upper north shores.
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Sydney prestige prices may weaken with rise in stock: HTW 

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League legend Steve Mortimer has put a $930,000 asking price on his Rushcutters Bay investment property.
It was listed for recent auction with plans to put the profits into his shuffleboard business.
The <a href="https://www.realcommercial.com.au/property-retail-nsw-rushcutters+bay-502112754">2/84-90 McLachlan Ave</a> McLachlan Cafe premises are leased with a net income of $56,600 per annum.
The former Bulldogs bought the ground floor property in 2010 for $760,000.
About $900,000 had been given in pre-auction price guidance.
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League legend Steve Mortimer's $930,000 Rushcutters Bay cafe offering

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SPONSORED POST
Yield is one of the key factors in deciding whether or not to invest in a commercial property. And it is also one of the most confusing for people to understand.
Knowing what type of yield is being talked about, and how it was calculated, will make you a much more informed investor. Unless you know the difference, you won’t be comparing apples with apples.
Basically when it comes to yield there are two types: gross yield and net yield.
Gross yield is everything before expenses. It is calculated as a percentage based on the property’s cost or market value divided by the income generated by the property.
Net yield is everything after expenses. It takes into account all the fees and expenses associated with owning a property. As such, it is a far more accurate way of calculating actual yield. It is also much harder to calculate as most costs are variable.
However factoring in everything you can, and making educated guesses about the things you can’t, will give you a much clearer sense of what the likely yield will be.
What should be included in net yield?
The costs associated with owning a commercial property include annual and one off fees such as taxes, ongoing costs such as insurance and rates, and variable costs such as maintenance and vacancy costs.
Net yield should include fees and expenses such as stamp duty, land tax, strata levies and any legal costs.
Ongoing costs include water rates, council taxes, property management fees and insurance costs. However, a lot of commercial leases pass these costs on to the tenant. You can exclude any costs that are likely to be borne by the tenant.
Variable costs include maintenance and repairs as well as the cost of vacancy.
Commercial properties can take longer to find tenants than residential ones. It makes sense to factor this in to your calculations. For example, you may want to assume that your property will be untenanted for a month so you would deduct one month’s worth of rent from your income.
Calculating net yield
To calculate net yield, you need to deduct all the expenses (ongoing costs + cost of vacancy) from the annual rental income (weekly rent x 52). You then divide that number by the property’s purchase price and times it by 100. This will give you the percentage yield.
Net yield = (weekly rental x 52) – costs / property value x 100
For example, if you buy a property for $750,000 with an annual rental income of $78,000  ($1,500 a week) and yearly costs of $12,000, you would get a net yield of 8.8%.
In this example, the costs include $5500 of ongoing costs and $6500 for one month unrented.
Obviously this is just an example. You will need to review each property on its own merits.
But understanding how the net yield has been calculated (what it includes and excludes) will help you make a more informed decision when investing in a commercial property.
For more information, <a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=18755997&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">click here</a>.
ABOUT REALCOMMERCIAL.COM.AU: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
 
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Net yield & gross yield – what’s the difference?

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

Joel Robinson

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

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

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

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

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

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

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

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

Jonathan Chancellor

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