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GUEST OBSERVER
Having been a lawyer looking after farmers and graziers for almost 40 years, I have focused on the future of family farms all my professional life – indeed, my practice and those of the other lawyers in our Agribusiness team depends upon it.
The issues facing agriculture in Australia are well known – droughts, floods, fire, depressed prices, labour shortages, too much debt, government interference (tree clearing and live export bans to name but two), declining terms of trade, the high Australian dollar, the average age of our primary producers etc etc.
As a general observation, while undoubtedly the average age of our primary producers is high, the next generation are well placed to capitalise on the world's increasing need for protein and Asia's growing prosperity – they are technologically savvy and have access to resources, training etc (that their forebears could only look upon with envy) to ensure that the farms of the future will be sustainable both financially and environmentally.
I was asked a few years ago what I thought was the biggest issue facing primary producers and my considered response was "lack of communication". Farmers and graziers are, by their very nature, stoics – they have to be to cope with the myriad of challenges thrown at them. They know how to "tighten their belts" in bad times and battle through.
Producers though, in my experience, largely do not communicate about issues worrying them – droughts, debts, relationship issues, mental illness etc. These issues and the lack of communication particularly come to the forefront when we are addressing succession planning for family partnerships. My view, until recently, was that such partnerships have limited lives as the next generation takes up the "family farm".
My view though has changed and I was intrigued to read an article in Beef Central some time ago about two Mallee grain growers and their venture into "collaborative farming".
These two farmers started with a blank canvas and designed the ideal farm for their area. They worked with no preconceptions or restrictions and focused only on what mix of land, plant and labour would be required to create the most efficient and profitable farming business for their area.
They have combined their assets and skill base with a corporate focus that has enabled them to achieve a high level of scale, efficiency, profitability and flexibility that simply would not have been possible if they had remained as individual farming units.
Irrespective of what industry or profession you are in, it is an ever competitive and challenging business environment out there, and we all (lawyers included) have to look at ways to drive efficiencies, reduce costs and to ensure the business models are sustainable.
At Thynne + Macartney, for example, many of our lawyers now work remotely, reducing our need for high cost premises and allowing us to consolidate on a smaller floor plate. We also recognise the different strengths of our people and although we are still a legal partnership, we have moved to a corporate management model.
Having been raised in Mitchell on a property consisting of any number of 160 acre blocks carved up after World War 1 for soldier settlements, and in a wool growing era where adjoining properties all had their own woolsheds and supporting infrastructure, I can see opportunities for our farmers and graziers in "collaborative farming".
The basic idea is that you look to others in your or related industries and put yourselves into businesses where you add the most value and be more profitable. A breeder operation, for example, can form a business partnership with the operators of a backgrounding block (and in turn, the operators of a fattening block / feedlot) where resources (whether it be land, manpower, plant, livestock or whatever) can be applied to best advantage to make the combined operation more flexible and profitable than the individual operations could ever hope to be.
As has been said before, "it's not rocket science".
One of the Mallee farmers, John Gladigau, is said to have identified seven core principles for "collaborative farming":
Be strategic – Start off with a blank piece of paper and design your future.
Differentiate between agribusiness and real estate – Most farmers and graziers run two enterprises: a real estate business and an operations business – both have to get a return. Arguably some of our large operators in the beef industry are grappling with this issue.
Use resources efficiently (machinery, labour and infrastructure).
Create cells and replicate them, ie a scalable unit as the most efficient mix of land, machinery, infrastructure etc.
Create an environment of "win-win"– Win-win relationships need to be built between all of the stakeholders throughout the businesses.
Engage specialist services – The days of being a master of all trades (if they ever existed) are well and truly over. Recognise your limitations. There are areas where you need to bring in others because of their different skill set.
An independent voice is needed – Recognise that personalities, especially in a collaborative business where families are brought together, can destroy the business. The one essential element is to have an independent voice. Look at the corporate world where it is common to have an independent chair / directors on the board.
How then do we establish a "collaborative farm"? The key issue here is that "there is no model, there are no rules". You need to create a business that works for you and your partners. Having said that, the basic template is to set up a new company, put the various properties together, lease the properties and plant and sell your livestock to that new entity. There are legitimate steps that can be taken to minimise transactional costs, ie stamp duty, livestock transaction levies and income tax on any such restructure.
In summary, I am convinced more than ever that "the family farm has a future". The crucial issue here though is that the form of the family farm in future may well be more complex. It is of course a complex environment in which we all live and operate.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Bill Loughnan is partner,  Thynne &amp; Macartney and can be contacted <a href="https://www.thymac.com.au/" target="_blank">here</a>.
 
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jchancellor-FAypfDUnLy

Collaborative farming – the future for family farms?

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Woolworths plans to shut 30 stores, including 17 supermarkets in Australia and six in New Zealand.
It was announced as part of a Woolworths restructuring into a new operating model that sees 500 fewer jobs, and the slowing of its store roll-out.
It involves closing underperforming outlets by the new chief executive Brad Banducci, who started in the role in February.
These 17 stores are all expected to shut before the end of the current financial year. They have not been identified from their 960 store tally, but have an average six years remaining on their lease. Under community pressure Woolworths reportedly advised that it Bundaberg region stores will not be closing.   
Woolworths also said that it has identified five Big W stores that are likely to close in the next three years based on current trading performance.
A further 34 stores across its broad portfolio are rated as underperforming.
Woolworths said there was "currently significant uncertainty around whether we would renew the lease at the end of the lease term".
These include 15 supermarkets in Australia and five metro stores.
There are also 20 development sites were the build will be delayed or not proceeded with.
He said sales per square metre and 'Return On Funds Employed' would be introduced as long-term executive performance indicators of how stores were performing under a new operating model.
Banducci had been managing director of Woolworths Food Group with 25 years in retail, including 15 years consulting to some of the world’s leading retailers, as well as private equity experience in retail.
He had had five years with Woolworths, including his role in leading the growth of Woolworths Liquor Group. During this time he was instrumental in the development of Dan Murphy’s.
The announcement comes as the German supermarket Aldi is estimated to now hold a double-digit percentage share of the Australian grocery sector.
Australian Competition and Consumer Commission chairman Rod Sims believes Aldi to now have “close to north of 10 percent of the market now”, according to Fairfax Media.
Sims believes this has knocked the dynamic duo of Coles and Woolworths down to a combined 70% share, whereas the two held closer to a 75% share a few years ago.
Aldi has over 400 stores across the country, employing over 9000 staff with sales in 2013 at just under $5 billion, up $2.86 billion from 2010.
Woolworths will open 45 stores over the next few years.
It typically closes around eight stores each year.
 
 
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17 Woolworths stores to close in Australia with another 15 under threat

Sydney&#39;s high profile TV executive, David Leckie and his charity cheerleader wife, Skye, have listed their Centennial Park home, Lactura.

The grand two storey home has played host to numerous private soirees.

Hidden behind its Lang Road hedging, there&#39;s the grand open plan living interiors along with the rear Hamptons style entertaining areas.

<img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2016/07/25/2_gq90kp.jpg" />

The giants of the Sydney social scene apparently want more than $11 million at its August 13 auction.

The McGrath estate agents Dominique Ogilvie and Ben Collier&nbsp;will need more than $12 million for it to claim the suburb record set by the young IT entreprenuer Mike Cannon-Brookes last year.

David says he loves his Southern Highlands farm and that&#39;s why they are downsizing in Sydney.

[smartcode_project:default project_id=7317 project_image_fid=79239]

Skye, who has just returned from holidaying at Capri and London, is now on the lookout for a chic apartment.

She rose to prominence in the late 80&#39;s as the group public relations officer for retailer David Jones. Skye has been a devoted charity fundraiser helping raise millions over the years especially as the Gold Dinner ambassador for Sydney&#39;s Children Hospital Foundation.

<img alt="" src="https://www.urban.com.au/images/2016/07/25/1469077529881.png" />

The couple have owned on Lang Road since 1998 when David was chief executive of the Nine Network under Kerry Packer.

He recently finished up his consultancy at Kerry Stokes&#39; Channel 7 with hopes of keeping busy after admitting having an enduring passion for the industry where he regularly triumphed in the nightly ratings.

They paid $2.5 million for the four bedroom home on its corner 1031 sqm block. Leckie recalled last week, in something of an unseemly reference in the Fairfax press, that he had bought the house without telling his wife.

<img alt="" src="https://www.urban.com.au/images/2016/07/25/1469077765195.png" />

The 1910 residence now comes with five bedrooms, three bathrooms, gourmet kitchen and a grand formal lounge and dining room with marble fireplaces.

The Will Dangar designed gardens surround the Hamptons style outdoor entertaining area which&nbsp;features a heated pool.

Their is a pool house with guest studio and tiered TV room where Leckie watched the evening news and sports from when he ruled the networks.

As one of their sons prepares to finish school, the couple don&#39;t need such a large home.

They are looking towards the harbourside suburbs as they consider several apartments.

[smartcode_project:default project_id=93137 project_image_fid=162061]

They retain their Robertson retreat Mulberry Farm which comes with a&nbsp;Richard Rowe-designed home.

&quot;The farm is really important to me and that&#39;s why I&#39;m selling this place to downsize,&quot; he told The Australian.

&quot;I&#39;ve learnt a lot about farming and I&#39;m looking at a couple of thousand acres now.

&quot;If there&#39;s nothing out there for me, I&#39;m more than happy being a farmer.&quot;

This article was first published in the Daily Telegraph.

Skye and David Leckie list Centennial Park home Lactura

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The property developer/hotelier Sam Arnaout has bought the prized Sweetwater, Hunter Valley vineyard estate.
His Mediterranean-style weekender had been listed at around $12 million by Duncan and Lyn Hardie through Alan Jurd, of Jurd’s Real Estate.
The 48 hectare Pokolbin property came with initial hopes of $30 million, but it was halved earlier this year to $15 million, and then reduced again to $12 million after April auction.
Arnaout, who heads up Iris Capital which entered the hotel industry in 1995, has a whole-floor penthouse in the Bennelong apartment complex which was bought from Margaret Maloney, the widow of the hotelier Cyril Maloney.
Sweetwater was more than a decade under construction.
Sweetwater, a world class winery located in the rolling hills of the Hunter Valley, was marketed as the most significant country vineyard estate in Australia.
Producing Cabernet Sauvignon and Shiraz on 16 hectares, there is also a cellar door and an olive grove.
The vineyard is one of the state’s oldest, having been first planted in 1829 by the pastoralist Richard Jones.
Winemaker Brian McGuigan advised on the layout of its more recent vines. 
The district’s highest previous vineyard sale was the $9.2 million paid in 2006 for the Rothbury Estate by vintner Michael Hope.
Loggerheads, the trophy Pokolbin vineyard estate last sold in 2008, remains listed with wonderful provenance being the former home of the late Len Evans and before that the Tyrrell family.
Robin and Judy Crawford secured the village-like residential homestead with three adjoining pavilions from Len Evan's widow, Trish Evans.. 
The seven bedroom, six bathroom homestead is Australian country-style in design, with European influences, extensively refurbished by the architect Michael Suttor.
It is now surrounded by Paul Bangay garden, with orchard and vegetable garden.
The 87 hectare is listed through Alan Jurd from Jurd's Real Estate who secured its 2008 sale.
Evans planted Shiraz and Gammay in the vineyard.
This article was first published in the Sunday Telegraph.
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Sweetwater, Hunter Valley vineyard estate sold

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The NSW Griffith-based winemaker Casella Family Brands has secured a McLaren Vale vineyard.
Their South Australia wine country purchase cost around $12.4 million.
It secured about 162ha across the Hawthorn Ridge and Reedy Creek vineyards, that were part-owned by interests associated with Paul Buttery.
Knight Frank negotiated the sale.
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Casella buys McLaren Vale vineyard

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Avery Green, the quizzical Thornbury cottage was sold by the RMIT associate professor of architecture and design Pia Ednie-Brown for a stellar $972,000 at weekend auction.
Renovated and extended last year, Jellis Craig had the two-bedroom 1895 house on 228 sqm offered with price hopes of $870,000-plus.
The bidding on <a href="https://www.realestate.com.au/property-house-vic-thornbury-123009990" target="_blank">6 Martin Street</a> began at $850,000 and it was sold to the opening bidders after being announced on the market at $970,000.
Pia Ednie-Brown says she came to know her home of six years “as a person,” even more so as she renovated.
There's now an inside garden next to the kitchen sink, inspired by the wintergardens of the Victorian era. That upside-down picket fence wont be everyone's idea as a ceiling feature in the kitchen. But inspectees loved the tidy backyard with round concrete pavers. 
The property cost $345,000 in 2006, when last listed with $330,000 plus hopes. 
“My hope is that fostering a sense of personal relationship with the buildings we inhabit will also encourage deeper awareness, care and respect for our environments,” Ms Ednie-Brown said on averygreen.org.
"A house becomes part of a family whether ‘owned' or rented – by moving in you enter into a relationship with it," she said.
Avery's Victorian elegance is sprinkled with 1950's art deco and lavished with a contemporary twist, the marketing advised.
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Upside down picket fence interiors sells Thornbury cottage

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ING Direct has cut its lowest variable rate home loan for owner-occupiers by 15 basis points. ING’s Orange Advantage loan has been reduced to 3.79 percent, effective today.
They are for owner-occupier loans with a minimum LVR of 80 percent. Fixed rate changes include a rate of 3.69 percent available for a three-year fixed term.
For more information, <a href="https://www.ingdirect.com.au" target="_blank">click here</a>.
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ING drops variable rate to record low 3.79 percent

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REINSW and the Law Society of NSW have created a new edition of the Contract for Sale and Purchase of Land 2016 to comply with new legislation.
The new version highlights a law which was brought in on 1 July 2016, affecting foreign residents purchasing a property over $2 million.
Under the new law, vendors selling a property for over $2 million will need to apply for a clearance certificate to avoid the purchaser withholding 10 percent tax from the purchase price.  
It also affects companies buying a property, if any of the owners are a foreign resident. Find out more <a href="https://www.reinsw.com.au/imis15_prod/Web/Posts/Latest_News/201603/New_withholding_tax_regime.aspx?WebsiteKey=fc035f62-aa1d-4485-9a5d-f9989cc37ba9" target="_blank">here</a>.
As a result, to deal with this new law the REINSW and Law Society of NSW have updated the Contract for Sale of Land and Purchase of Land. This new edition is not available as a paper copy but can be purchased in digital form by visiting the <a href="https://www.lawsociety.com.au/ECOS/index.htm" target="_blank">ECOS </a>website.
The new 2016 edition of the contract has prompts and clauses to deal with the new withholding tax law, and also includes a warning about the new <a href="https://www.reinsw.com.au/imis15_prod/Web/Hot_topics/Swimming_Pools/Web/Posts/Topics/Swimming_Pools.aspx?hkey=0ca667d3-d548-451b-a6a0-64a0e782a0ce" target="_blank">swimming pool compliance</a>. Find out about the main changes <a href="https://www.lawsociety.com.au/cs/groups/public/documents/internetcontent/907643.pdf" target="_blank">here</a>.  
Barry Johnston, Principal of Balmoral Partners said: “REINSW CEO Tim McKibbin has spent a lot of time time lobbying the government to make sure the legislation is workable.
“The new contract reflects this - so it is best practice to make sure you are using the latest contract because it is there to protect us.”
To find out more about the Contract for Sale and Purchase of Land 2016, watch the webinar with Barry and Gary Newton, Partner in TressCox Lawyers, <a href="https://www.youtube.com/watch?v=-hxgbBC4M5Q" target="_blank">here</a>. 
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Property 101: The new NSW contract for sale

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Melbourne's median weekend house price was $860,000 with prices between $280,000 at Broadmeadows and $3.755 million at Albert Park. 
Apartments had a $600,000 median with prices between $255,000 at Broadmeadows and $1.533 million at Bentleigh.
Sydney's weekend medians were $1.35 million for houses and around $900,000 for apartments. The cheapest offering was $465,000 for a two bedroom Westmead unit with the dearest result being $3.05 million at Mona Vale.
The next highest was $2.8 million post auction in Woollahra. 
Trevor Sykes, the veteran Pierpont finance columnist, had knocked back $2.72 million when his Woollahra period home was auctioned through Debbie Donnelley of Phillips Pantzer Donnelley who secured bidding from just the two parties. The $2.8 million was paid post-auction by the underbidder for the <a href="https://www.realestate.com.au/property-house-nsw-woollahra-122992870" target="_blank">three bedroom, two bathroom house with cellar</a> (above). 
Skyes, once editor of the now defunct The Bulletin magazine, and wife, Daya had owned the Bathurst Street home on a 322 sqm corner block since 2001 when it cost $1.33 million.
Some 1,295 auctions were held across the capital cities, with 1,076 reported results so far. CoreLogic had the preliminary clearance rate of 70 percent - the same compared with last week’s result which showed 70 per cent of the 1,391 capital city auctions cleared.
"Melbourne and Sydney are once again showing the strongest clearance rates of 72 percent and 75 percent respectively," CoreLogic's Kevin Brogan noted.
"Both Sydney and Melbourne recorded a lower number of auctions this week when compared to last week.
"At the same time last year, the number of auctions held was still substantially higher at 2,143 with a success rate of 74 percent."
There were 918 Melbourne auctions held at the same time last year compared to the 550 on the weekend. 
Sydney was host to 448 auctions this week, and much like Melbourne, auction volumes in Sydney this week are substantially lower than one year ago, when 906 auctions were held across the city.  
Brisbane was next busiest, and its volumes were comparable to last year. There were 135 Brisbane auctions, compared to last week’s 120 auctions and 163 auctions last year. The preliminary clearance rate was 53 percent this week, up from 47 percent last week. At the same time last year 54 percent of Brisbane auctions were successful.   
But one Brisbane auction did not proceed as the two bedroom cottage with waterfront views at Victoria Point was badly burnt just hours before going to auction on Saturday.
LJ Hooker Birkdale agent Debbie Ward called the absentee owner with the news <a href="https://www.realestate.com.au/property-house-qld-victoria+point-122998470" target="_blank">4 Colburn Avenue</a> was gutted (pictured below).
<img src="/images/2016/07/25/Screen%20Shot%202016-07-25%20at%209.03.19%20AM.png" alt="">
She made the phone call about 10.40am just ahead of the scheduled 1pm auction at 1pm which was cancelled.
The Gold Coast’s preliminary results show a clearance rate of 62 percent across 21 reported auctions, but all the action has been private treaty sales that have all given the prestige market some momentum.
A $15.5 million sale has been secured for a home on the Isle of Capri.
The sale of <a href="/expert-insights/buying/15-5-million-gold-coast-trophy-home-sale-highest-since-gfc">57-59 The Corso to Chinese buyers</a> is the highest price achieved on the Gold Coast since 2009 (below). 
<img src="/images/2016/07/25/700_capri.jpg" alt="">
The two-level semi-Balinese style mansion was first was marketed three years ago as having a replacement cost in excess of $20 million.
Meanwhile after selling his Cronin Island home, Summer House for $11 million (reported on the New Daily last week), the entrepreneur David Baird and wife Marion have snapped up another Surfers Paradise home. 
They have spent $7 million property on Commodore Drive for a five bedroom, six bathroom home on 1124 sqm.
It has a floor area of more than 800 sqm, spread over four levels.
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Reduced Sydney and Melbourne auctions continue to underpin market strength

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GUEST OBSERVER
The minutes of the July monetary policy meeting of the Reserve Bank Board confirmed the importance of next week’s June Quarter inflation report.
The key sentences in the concluding paragraph of the “Considerations for Monetary Policy” section state: “The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy. This information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.”
So the minutes clearly leave the door open for another rate cut in August.
But this will depend upon the June quarter inflation report’s estimate of underlying inflation. The upper bound below which a rate cut can be expected is likely to be 0.5%.
Westpac’s forecast for underlying inflation in the quarter is 0.35 percent (up slightly on our preliminary estimate of 0.30 percent) which would support the need for another move given that core inflation would only have risen by 0.55 percent over the course of the first half of 2016, raising a genuine question mark as to whether even the Bank’s current 1.5 percent/yr mid-point forecast for December 2016 could be achieved. A lower result for 2016 would also place their 2.0 percent forecast for 2017 (the bottom of the 2-3 percent target range) in jeopardy.
What are the risks to our forecast and what is the level of June quarter inflation above which the Bank would keep rates on hold?
The tone of the minutes indicates that the Bank may be leaning toward another rate cut and may have a bit more flexibility on the inflation result than we had expected.
It is useful to note the Bank’s own expectation for the print.
In the Statement on Monetary Policy in May, it forecast underlying inflation would print 1.5 percent for the year to June. With nearly 1.0 percent already being reached in the first 3 quarters, we can conclude that the Bank is expecting a 0.5 percent print for underlying inflation in the June quarter. That result would therefore be interpreted by the Bank as being in line with its overall inflation outlook, which is for underlying inflation to print 1.5 percent for calendar 2016 and 2.0 percent for calendar 2017.
The result would provide support for its forecast changes in May and indicate that it had not overreacted to the very low print of the March quarter.
Recall that the May forecasts assumed “market pricing” on interest rates, which incorporated a fully priced second rate cut by early 2017.
I think it is therefore reasonable to conclude that a 0.5 percent print for underlying inflation, although representing a sharp jump from March’s 0.2 percent print would be consistent with a follow up rate cut at the August meeting.
Another way to look at it is that 0.5 percent would still represent an annualised “run rate” of 2.0 percent which is still at the bottom of the 2-3 percent target band.
In the May Statement on Monetary Policy, the Bank noted “Although some temporary factors contributed to the low result, the data indicate that there has been broad based weakness in domestic cost pressures, reflecting low wage growth, heightened retail competition, softer conditions in rental and housing construction markets and declines in the cost of industry inputs such as fuel and utilities.”
Theoretically the pass through from the fall in the AUD should be an offset to these pressures, but there has been only limited evidence of that effect and the fall in the AUD is starting to fade with the currency being broadly stable over the last 12 months – clearly margin squeeze has had a considerable influence on limiting the pass through from AUD depreciation.
Our forecasts for the June quarter expect these trends to be sustained. Lower than expected results across the spectrum of components are consistent, in particular, with low wage pressures and margin squeeze. That stood out in the March quarter result.
Clothing and footwear; processed food; household contents and services and holidays are likely to continue to capture the low wages and retail margin squeeze effects in the June quarter. We have made allowance for those factors in our forecasts.
However, by far the most important driver of the outcome for underlying inflation is likely to be housing.
Because rent and housing construction costs are not volatile and/or impacted by significant one off factors, they are almost always included in the 70 percent of items which make up the trimmed mean – the key measure of underlying inflation. With a total of 15.4 percent in the overall CPI (construction costs, 8.7 percent; and rents, 6.7 percent) these two components represent an effective 22 percent of the trimmed mean – by far the highest weighting of any component.
In recent quarters we have seen a collapse in housing pressures, particularly outside of Sydney and Melbourne.
In the December quarter last year, growth in construction costs slowed from 1.1 percent the year before to 0.1 percent; in the March quarter, we saw a continuation of that weakness, printing 0.2 percent from 0.9 percent the year before.
The slowdown in rents has been more gradual. The December quarter slowed to 0.2 percent from 0.5 percent a year ago and slowed further still in the March quarter to 0.1 percent from 0.4 percent a year earlier.
Housing pressures in the June quarter will be critical for underlying inflation. In our preliminary estimates, we assumed 0.1 percent for rents and 0.2 percent for housing construction. In our final estimate, we have cautiously lifted these estimates to 0.2% and 0.3% respectively, pushing the underlying measure up to 0.35 percent – still comfortably in the “rate cut” zone.
If the underlying result printed above 0.5 percent due to housing, then one combination would be both rents and construction costs printing at 0.6 percent or above. These results would defy a clear slowing trend in rents, and indicate a possible but unlikely sharp recovery in construction costs and builders’ margins. While entirely possible (e.g. construction costs/ margins lifted from 0.9 percent to 1.5 percent between March and June last year), particularly following the lift in house prices (rather than specifically construction costs) in April/May in Sydney and Melbourne, we think the outcome would be unlikely.
Arguably, an unanticipated “spike” in housing costs and rents that offsets the wages/margins forces that have structurally driven down inflation pressures would be an unwelcome outcome for the Bank.
In the event of an upside surprise in the Inflation Report that was largely attributed to a spike in housing costs, the Bank is likely to be more flexible with its ultimate rate decision, but a print above 0.5% would still make it very difficult to justify a cut.
In that event, markets would readily switch their focus to a November cut, expecting some correction to the housing “spike”.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Housing pressures in the June quarter will be critical for underlying inflation:  Westpac's Bill Evans

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Joel Robinson

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.

Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for <a href="https://www.apartments.com.au/new-apartments/cove-on-ourimbah-40-56-ourimbah-road-mosman-nsw-2088">Cove on Ourimbah</a>, a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.

The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.

Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.

<img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" />

Doroch Architects said the building had been designed to reinforce Mosman's established character.

"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.

The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.

The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.

The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.

&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a>

&nbsp;

Jonathan Chancellor

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