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GUEST OBSERVER
There is a simplistic thought pattern that rising property markets are good and falling markets are bad.
Supporting the point, transaction volumes historically increase in rising markets and decrease in falling markets. These fluctuations in volumes are sentiment based as much as they are practical decisions by the respective buyers and sellers. Rising markets feel good whilst falling markets don’t. Whilst there may be more winners in a rising market and vice versa, it is not a universal principal. 
When you understand how a rising market can actually work against your best interests and a falling market can be used to your advantage, the property market takes on a whole new persona.
Depending on what your goal and objective for trading real estate is, you will be better positioned to act decisively or remain patient when you are conscious of the winners and losers in all market conditions.
First homebuyers – rising and/or fully priced markets benefit those at the top and disadvantage those look to enter the market. First home buyers find the level of entry difficult in booming markets and are best served looking to enter the market when real estate is flat. Many people think that first home buyers are permanently locked out of the market which is an overstatement. There is no doubt that current conditions are difficult in Sydney for them, but an opportune time will come again. Indeed it was first home buyers that created the post GFC boom as they took advantage of declining prices (and Government grants). First home buyers who were brave enough to venture into the market in 2008 are now on the property ladder and climbing. 
Upgraders – if you own a property and intend to sell it to purchase another one in the same market, you are more likely to sell in a rising market. But you are quite possibly better off upgrading in a falling market. If you sell a $1 million home and intend on upgrading to a $2 million home, a 10% rise in the market will provide an extra $100,000 on the sale but take $200,000 more on the purchase.  Conversely, a 10% market decline on the same transaction wipes $100,000 off the sale but a whopping $200,000 off the purchase. 
When you consider that a lot of fees and services such as stamp duty (&amp; agent’s fees) are based on percentages, the lower the price the better when upgrading.
Transitioning into a different market – if you are selling out of a booming Sydney market to buy into a sleepy sea side village with flat to declining property prices, you win on both sides of the ledger. You sell high and buy low. The Perth market for example is severely depressed at the moment. If you were to sell in Perth and move into Sydney or Melbourne, you will sell low and buy high. As important as it is to sell at the right time, if you are transitioning into a different market, picking the right time to buy is equally important.
Negative geared investors – creating a deliberate weekly loss to gain some tax advantages may seem like a sound and plausible strategy whilst prices are rising. When prices are flat or declining, the investor loses twice – a weekly loss plus declining asset value. Investors who are negatively geared need a market that rises faster than the accumulated losses through the negative gearing, to stay in front on the investment. Sharing a profit with the tax man is preferable to keeping a loss to yourself. Many property investors have lost sight of this one. If you get yourself into a position where you are positively geared, capital growth is yours to keep rather than compensation for carrying a weekly loss over a number of years.
Investors – it is possible for investors to benefit in both flat markets and booming markets. The key is to transact accordingly. There are two types of investors, incoming and outgoing. Savvy investors know there is a right time to enter a property market and equally an appropriate time to exit. 
A crude yet timeless real estate cliché such as ‘when rates are high it’s time to buy and when rates are low it’s time to go’ are worth keeping in mind. This should not be your sole guiding light but it is worth keeping in mind. Sure, every expert says ‘sell high, buy low’ but how many actually act on this advice? Prices are currently high in Sydney and low in Perth. How many investors are brave enough to buy in Perth at present? Yet in 2011/12 when interest rates were much higher and the mining boom was ticking along, Perth was fully priced and Sydney was in a severe lull. Sure, hindsight is 20/20, but so is research coupled with long term planning. 
Last time sellers – if first home buyers are the losers of a boom, then last time sellers are the recipients and vice versa in both instances. From a demographic perspective, there are a lot of last time sellers coming through the system in the next 15 years as baby boomers sell down their assets to fund their retirement. The family home will be increasingly sold down by baby boomers whom are looking to unlock equity and move into smaller more manageable properties in lifestyle locations. 
Baby boomers in Perth feel hard done by given the market has crashed there whilst last time sellers in Sydney feel as though they have won lotto. Particularly if they selling up to leave town. Just as first home buyers could be well advised to hold off on purchasing at present, last time sellers should give considered thought to exiting the market whilst times are good. We may not be in the midst of a full boom as we were in 2015, but is anyone going to really suggesting that house prices are currently anything but high?
Knowing what you now know, you may decide to act ahead of time or delay transacting until the market environment suits your agenda. There are winners and losers in all markets. If you plan intelligently and sensibly, you increase the chances of being on the right side of the ledger.
Peter O’Malley is author of Real Estate Uncovered and can be contacted <a href="https://realestateuncovered.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

The winners and losers in rising and falling markets: Peter O’Malley

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GUEST OBSERVER
Having cut its cash rate by 25bp last month, in response to the very low Q1 CPI print, we see the RBA on hold this month.
Although inflation is below the 2-3 percent target, strong local growth is expected to gradually lift inflation back to target over time 
Our central case is for a further 25bp cut in August; however, the RBA will have a keen eye on the Fed, as a further large fall in the AUD could obviate the need for another cut 
The Fed and the AUD 
The key local development over the past month has been the upside surprise to Q1 GDP, which grew by a stronger-than-expected 3.1 percent y-o-y. However, most of the surprise was to exports, with growth in domestic demand remaining only modest and local income growth quite weak. 
In short, although the RBA could consider revising up its growth forecasts as a result of the Q1 GDP print, the composition of the growth means that the outlook for low inflation is likely to remain unchanged. 
However, we do think that the stronger GDP combined with the signs of continued modest improvement in the labour market are likely to keep the RBA from considering a cut in June or July. Indeed, given that the driving factor for the 3 May 25bp cut was the surprisingly weak Q1 CPI print, and that the meeting’s minutes revealed that the RBA board was hesitant about that cut, we think the RBA will need to see the Q2 CPI before it would consider a further cut. 
Our central case is for the RBA to cut its cash rate by a further 25bp to 1.50 percent in August, following the Q2 CPI print (we expect the trimmed mean to be around 0.4-0.5% q-o-q), and for the central bank to hold steady at 1.50% over subsequent quarters.
 However, as always, there are risks to this forecast. A key factor in play at the moment is the Federal Reserve. An improving US economy and more hawkish commentary from Fed officials mean that the market is now pricing in a 55 percent likelihood of a Fed hike by July (HSBC’s economists expect a 25bp Fed hike in September). 
A key result of the more hawkish Fed has been a depreciation of the AUD, which has fallen from USD0.78 in mid-April to around USD0.72 recently. At same time, commodity prices have held up, particularly supported by higher iron ore prices. 
If the Fed does lift its policy rate in coming months and this pushed the AUD lower, it could discourage the RBA from cutting. In addition, local housing prices are, once again, rising, which could make the RBA more reluctant to cut further. We see the RBA on hold in June and July, and have a cut pencilled in for August, after the Q2 CPI. However, the risk to this view is that the RBA delivers less, not more, in our view.
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The June meeting is likely to be uneventful
The key development since the RBA’s last meeting has been the upside surprise to the Q1 GDP numbers. GDP rose by a stronger-than-expected 1.1 percent in the first quarter and was 3.1 percent higher y-o-y (Chart 1). However, the upside surprise mainly came from exports, while domestic demand and local income growth remained too weak to lift inflation. The consumption deflator – which is the measure of consumer price inflation in the GDP numbers – was particularly weak, falling -0.1 percent q-o-q and up only 1.2 percent y-o-y. This helps to explain why underlying inflation fell to a more than two-decade low in the first quarter, despite the strong GDP growth.
The range of other domestic indicators has generally shown solid growth. Building approvals were stronger than expected, prolonging the housing construction boom, and the retail numbers for April were solid (3.6 percent y-o-y). Jobs growth was as expected in April (2.1 percent y-o-y) and the unemployment rate was steady at 5.7 percent. Our labour market index, which aggregates a collection of timely jobs market indicators, suggests continued modest improvement in labour market conditions (Chart 2).
In sum, although inflation is too low, and the case could be made for a further cut, an immediate cut seems unlikely. Keep in mind that the RBA has a ‘flexible’ inflation-targeting regime, which allows the CPI to be outside the band for periods of time, without requiring an immediate response. The RBA’s own forecasts have underlying inflation remaining below the bottom edge of the target band until mid-2018 (Chart 3). The key question the RBA will now be asking, month-to-month, is whether developments over the past month make it more or less likely that inflation heads back to target over that time horizon.
In this document HSBC may comment on the potential economic impact dependent on the outcome of the UK Referendum. HSBC is not taking a political position and this document and the information contained herein are not intended to promote or procure, or otherwise be in connection with promoting or procuring, a particular outcome in relation to the question asked in the UK Referendum.
 
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What the Fed could mean for the RBA
A key development that could affect the local inflation outlook and the RBA’s willingness to cut further is the recent shift in policy rate expectations of the Federal Reserve. The main channel through which this impacts the RBA is the effect it could have on the AUD.
The AUD has already fallen from a peak of USD0.78 in mid-April to around USD0.72 recently (Chart 4). At same time, commodity prices have held up, particularly supported by higher iron ore prices, which has driven the commodity price index to an seven-month high in AUD terms. The fall in the AUD should help to support growth, particularly as growth is being more driven by services exports, which are exchange-rate sensitive. The lower AUD should also help to lift inflation.
Watching what the Federal Reserve does in coming months has a bearing on the RBA’s outlook largely through its likely effect on the AUD.
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<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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RBA on hold, with a keen eye on the Fed: HSBC's Paul Bloxham

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The NSW Fair Trading department will not be appealing the judgement by the magistrate of Blacktown Local Court that dismissed all charges against BresicWhitney Estate Agents Pty Ltd for falsely understating the estimated selling prices when marketing properties in 2014.
After a considerably delayed trial, the dismissal came on a technicality concerning the term ‘employee’ in the Property Stock and Business Agents Act 2002 (the Act).
In this case the ‘operating’ arm of the business was the licence holder and undertook the business of a real estate agent.
A subsidiary company ‘employed’ the employees.
As a result the court found the ‘employees’ who made the statements about price, which were less than the estimated selling price in the agency agreement, were not technically employed by the licensed agent.
"This is not the policy intent of the provisions and in his findings the Magistrate acknowledged the likelihood that the business was structured in a way that would insulate it to some degree against liability in the event of such matters," a department spokesperson advised.
While the prosecution was taken under the old laws, the Government is now committed to legislative repair.
"Consumers can be assured any legal loopholes will be closed," the spokesperson advised.
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No appeal in BresicWhitney underquoting case

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GUEST OBSERVER
In March, China (including Hong Kong) passed New Zealand as Australia’s largest source of tourists. And that gap widened in April. Over the past year 1.35 million Chinese visited our shores. This is the new boom – the tourism boom – and again it is driven by China. 
Tourism Research Australia found that international visitors spent $36.6 billion in 2015 with China spending $8.3 billion or almost $8,000 per person. Spending was up by 18 per cent on a year earlier – the strongest growth in 14 years. And the latest data on tourist arrivals suggests that the spending by international visitors continues to lift, providing valuable momentum for the economy.
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 It has been a stellar week for the economy. Data has showed the economy growing at the fastest pace in 31⁄2 years; building approvals hit fresh record highs; car sales are at record highs; and tourist arrivals hit fresh record highs. The economy is firing on all cylinders. Clearly any suggestion that rate cuts are needed to lift a sagging economy is very much misplaced. The Reserve Bank cut rates in May – and still may cut rates again – on the premise that the economy can record even faster growth without sparking higher inflation.
What do the figures show?
Overseas arrivals &amp; departures
Tourist arrivals rose by 1.2 percent to record highs in April. Tourist departures fell 3.4 percent in April from record highs. Arrivals are up 11.6 percent on the year with departures up 2.2 percent.  
Tourists from greater China (China and Hong Kong) totalled 119,800 in April (mainland China 100,900, Hong Kong, 18,900), ahead of New Zealand (110,300).  
Tourist arrivals from mainland China and Hong Kong rose to a record 1,350,000 over the past year (up 21.6 per cent over the year) ahead of tourists from New Zealand (1,313,400 visitors over the past year).  
Over the past year, net permanent and long-term arrivals to Australia totalled 270,230 – the lowest level in nine years (May 2007).  
Over the year to April, 33,500 Aussies visited Pakistan, up 33.5 per cent on the 25,200 visitors in the year to April 2015. Also 329,000 Aussies visited Japan over the past year, up 26.6 per cent over the year.  
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New Car Sales
According to the Federal Chamber of Automotive Industries there were 96,672 new cars sold in May. Over the year to May a record 1,172,402 new cars were sold. Annual growth of 4.3 percent is the strongest in 31 months.  
In May alone, passenger car sales fell by 5.8 per cent on a year ago to 38,222; sports utility vehicles (SUV) sales rose 11.4 per cent to 36,230; light truck sales rose 10.6 per cent to 19,373 and heavy truck sales rose 5.9 per cent to 2,847.    
Sales across states in May 2016 on May 2015: NSW (+6.0 per cent); Victoria (+3.5 per cent), Queensland (+1.3 percent), South Australia (+9.6 percent), Western Australia (-5.0 percent), Tasmania (+4.3 percent), ACT (+8.9 percent) and Northern Territory (+3.1 percent).  
Car affordability  
New vehicle sales are rising because car affordability stands at record highs. The CommSec car affordability measure shows that someone on the average wage has to work 23.8 weeks to buy a new Ford Falcon auto sedan. That is around 2 weeks fewer than two years ago. And five years ago, the same worker would have had to work an extra seven weeks to buy the same car.
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Performance of Services
The Performance of Services index rose by 1.8 points to 51.5 in May. A reading above 50 suggests expansion of the services sector.  
The Australian Industry Group noted: “Of the five activity sub-indexes in the Australian PSI®, sales (51.7 points) and stocks (51.2 points) lifted into positive territory in May while new orders (55.3 points) continued its expansion. Deliveries (49.1 points) and employment (49.1 points) were both stable to slightly negative.”  
Four of the nine services sub sectors were stable or expanded in May. What is the importance of the economic data?  
The Australian Bureau of Statistics releases data on overseas arrivals and departures each month – an indicator of the health of the tourism sector. The figures are also useful in understanding spending trends and tracking migrant numbers – an indicator with widespread implications for employment, housing and spending.  
The Federal Chamber of Automotive Industries releases estimates of car sales on the third business day of the month. The figures highlight the strength of consumer spending as well as conditions facing auto &amp; components companies.  
The Australian Industry Group compile the Performance of Services Index (PMI) each month. The Australian PSI is the Australian equivalent of the US ISM services gauge. The PSI is one of the timeliest economic indicators released in Australia. The PSI is useful not just in showing how the services sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.  
What are the implications for interest rates and investors?
In 2015 an estimated 120 million Chinese travelled overseas. Australia’s share was just over a million tourists. So there is scope for significant growth but it will require more transport and accommodation capacity being put in place.  
Another month, another record high for the car industry. New vehicle sales hit new highs in the year to May and it is clear that a key reason for the strength is the fact that cars have never been more affordable.  
The Reserve Bank policymakers will find it harder to cut rates in coming months. That doesn’t mean that it’s impossible, rather the Reserve Bank will need to be more active explaining the change.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
 
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Chinese tourism boom, record car sales: CommSec's Craig James

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Construction costs in Australia put it the 14th most expensive out of 38 countries surveyed for the latest International Construction Market Survey from Turner &amp; Townsend, with national construction costs expected to rise 2.5 percent on average in 2016 compared to 2.9 percent globally.
Zurich took out first spot with Perth at 18, Melbourne at 20 and Brisbane at 22nd.
Gary Emmett, senior economist for Turner &amp; Townsend comments said since last year’s survey, Australia’s construction costs have only increased a few percent in contrast to other countries where markets are overheated. 
He said to ensure Australian prices stay at reasonable levels, the construction industry must think differently and look for cost savings within the supply chain where the biggest savings and innovation can be found including manufacturing production, design and logistics.
“The industry needs to collaborate with suppliers to look for savings as opposed to traditional adversarial relationships. The use of building information modelling (BIM) will help the industry collaborate to gather data and share plans throughout the lifecycle of an asset to find greater cost saving efficiencies,” he said.
"The costs across Australia’s four major markets show Brisbane increased by 4 per cent in the past 12 months, Sydney hit 3.5 per cent while Perth and Melbourne recorded cost increases of 1 per cent respectively.
“For example, Brisbane and Sydney’s apartment booms have led to the increase in costs in these states. Perth has remained relatively steady due to the mining boom finishing and Melbourne is now experiencing a flat period following a busy apartment boom.
“We are also witnessing increased tender competition which is driving down profit margins.  There is an opportunity now for the industry to look at different delivery and commercial models to improve productivity and margin on projects."
The International Construction Market Survey 2016 analyses input costs uch as labour and materials and charts the average construction cost per sq m for both commercial and residential projects. It can be found <a href="https://turnerandtownsend.cld.bz/icms-16" target="_blank">here</a>.
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Australia's construction costs remain stable

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Residex has presented the statistics summary for April looking at rental markets across Australia.
It suggests rents dipped in Sydney for houses over the past year.
The big annual rental falls for houses and units continues to be in Perth and Darwin.
Table 1: April 2016 Summary 
Houses
<a href="/images/2016/06/03/Screen%20Shot%202016-06-03%20at%201.00.17%20PM.png" target="_blank">Click to enlarge</a>
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Units 
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Source: Residex
 
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Residex pinpoints rents dipping in Sydney

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Australia was potentially on the cusp of a "dramatic and destabilising" end to the housing boom because of the apartments building boom, the Organisation for Economic Co-operation and Development has suggested.
In its latest assessment of the threats to the economy, the Paris-based think tank went into few details, but added jitters over the federal election policy are adding to risks.
Analysis of the OECD's latest report by the Australian Financial Review commented that the OECD had paradoxically simultaneously noted that risks of a property boom appeared to be receding which provided leeway for even more official interest rate cuts.
"Domestically, the unwinding of housing market tensions to date may presage dramatic and destabilising developments, rather than herald a soft landing," it said.
The warning is accompanied by graphs showing dwelling approvals retreating from a peak and house prices levelling out. 
Australia’s entire economy was vulnerable to the continued commodity price plunge too, the OECD warned.
Suggesting that the strong economic growth of the first three months of the year will not be maintained, the OECD forecast growth for Australia of 2.6 per cent this year, down from the 3.1 per cent over the year to March.
“Australia’s exposure to commodity-market developments, par­ticularly those linked to the Chinese economy, remains an important source of uncertainty and risk,” the OECD says in its latest economic outlook.
“The unwinding of tensions in the housing market to date may presage dramatic and destabilising developments, rather than herald a soft landing,” it advised.
The OECD's two-page analysis calls for “close vigilance” of the heavily leveraged housing market and suggests Labor’s negative gearing proposal had created uncertainty.
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OECD warns of dramatic end to housing boom

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GUEST OBSERVER
Vestbuild specialise in developing homes with spaces that feel big, versatile and flexible - spaces that can be repurposed for daily/seasonal needs. 
We believe in squeezing use out of every square inch of space. 
While smaller designs are becoming more popular, compact homes have been built in Melbourne since the late 1800s: for example, you will have seen the Victorian terrace housing and cottages in the north Melbourne suburbs and in Fitzroy and Albert Park. 
The small two-three bedroom home was introduced to the inner suburbs of large Australian cities by the UK in the 1850s when huge swathes were built to accommodate the Victorian Gold Rush population boom.
Building was halted by an economic depression in the early 1890s and when it restarted again in the early 1900s, the demand was for larger houses to accommodate a much smaller population.
It makes sense then that, facing another population boom coupled with the key issue of affordable housing, Vestbuild is committed to continuing the tradition of creating housing in Australia based on what the market requires. 
Another factor shaping our housing needs is the unprecedented aging of our population. 
Vestbuild understands this. 
We understand that the Baby Boom Generation that’s driven change throughout their lives now want new housing models that meet their needs. 
We’ve learned is that Generation Y are looking for the same thing: accessory dwelling units in walkable, urban neighbourhoods.
This need is reshaping the traditional concept of suburban single family living who are moving away from the traditional large lot/large houses that have dominated the Australian property market for the past 20 years. 
Vestbuild has answered this with our intuitive designs that are efficient, appealing and financially viable.
Deniz Sivasli is managing director, Vestbuild and can be contacted <a href="https://www.vestbuild.com" target="_blank">here</a>. 
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Vestbuild's modern take on the Victorian Workers Cottage circa 1850's priced from $299,900 in Doreen

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The Bendel family secured $520,000 for their bold and bright 1950s Potts Point studio apartment investment. 
Its colour scheme was inspired by Mighty Mouse, the animated super hero.
It was the work of industrial designer Nicholas Gurney whose Brougham Street project was shortlisted with a commendation at the Australian Interior Design Awards in 2013.
The top floor 27 sqm space, that comes with views of the city skyline and the Harbour Bridge, last traded $406,000 in June 2013.
It sold through Richardson &amp; Wrench.
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Potts Point mighty mouse studio sells at $520,000

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Coastal management in Australia is subject to competing interests and challenges. These range from land use and strategic planning issues to ecosystems preservation. Local councils are at the coalface as both key decision-makers and the first point of contact for communities.
Exacerbating these day-to-day challenges for councils are risks to property. A quantitative assessment undertaken by the then-Department of Climate Change in 2009 identified impacts of sea-level rise as a serious threat to property.
In New South Wales, under scenarios of a 1.1-metre sea-level rise, risks of damage or inundation to residential housing alone affected tens of thousands of properties, potentially costing millions of dollars. The NSW 2009 sea-level rise policy (now repealed) saw coastal councils considering this future risk when developing coastal zone management plans.
These metrics, while important, say little of the wide-ranging benefits of a freely accessible coast. Going to the beach is a fundamental part of Australian identity; it’s a “special place” for Australians.
Local councils are most exposed to the issues and challenges of a changing coastline in which there are many interests. Councils are often the first decision-makers for local development, asset management and land-use and strategic planning. Increased coastal erosion, storm events, more frequent and severe flooding impacts and higher tides can and will make these regular functions of councils more complicated.
In this context, the tabling of the NSW Coastal Management Bill on May 3 marks the formalisation of Stage 2 of the most significant law reform to coastal management since the 1970s. The NSW state government says that, by better integrating coastal management with land-use planning, the legislation offers:
 a modern, coherent coastal management framework that is responsive to current needs and future challenges.
<h2>Property rights hold sway</h2>
Despite a prominent focus on property values when it comes to coastal management issues, including climate adaptation, evidence is emerging that residents are attached to their property for more than financial reasons.
Private property interests often take priority as councils attempt to balance competing interests. An example of this is ongoing litigation over a sandbag wall on Belongil Beach in Byron Bay.
After a series of severe coastal storms in the 1970s, Byron Shire Council adopted a policy of “planned retreat<a href="https://www.theaustralian.com.au/archive/news/byron-bay-mayor-jan-barham-vows-no-retreat-on-beach-barriers/story-e6frg6o6-1225778397737">”</a>. The location of this small northern NSW community on the most easterly point of Australia means it is already exposed to coastal hazards. These will become more frequent and more severe under future climate scenarios.
The planned retreat policy set requirements for the future relocation of private property. Local property owners, particularly those with beachfront property, have vehemently opposed the use of the policy to prevent coastal property protection.
In May 2009, a particularly severe coastal storm caused significant damage to private residential property and the beach. Beachfront property owners (the Vaughans) sought to reinstate council-approved sandbag protection works on their property. This sandbag wall had collapsed during the storm.
The Vaughans sued the council and the council sued the Vaughans. This particular matter settled in February 2010 and the failed sandbag wall has been reinstated.
More recently, council plans to install a permanent rock wall at the same location ran into fierce opposition from the community, for whom the public amenity of the beach is critical, and legal challenges.
This example highlights some critical aspects of coastal management:
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private property rights are deeply entrenched in Australian culture and legal systems
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climate adaptation is easier when it comes to future development
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recourse to litigation in protecting your property is much easier if you can afford it.
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Climate adaptation planning, including planned retreat, can be more easily implemented for future development. There are excellent examples of local government in NSW providing landowners with a range of development options.
<h2>NSW reforms weigh future risks</h2>
Much of the coast of Australia, however, is already developed. The residential development includes affordable housing options. To balance competing interests along the coast, all members of coastal communities must be considered.
To this end, the NSW bill, if passed, would lead to a new Coastal Management Act, a new Coastal Management State Environmental Planning Policy and a coastal management manual. Together these advance a more forward-thinking coastal management response. This has a central focus on ecologically sustainable development that can better balance both the management of coastal hazards and the integrity of the coast.
Local councils will be responsible for implementing these new legal requirements. Under Part 3 of the Coastal Management Bill, councils will be required to monitor coastal hazards and to give effect to coastal management plans. It would appear this includes future sea-level rise.
As has been advocated in numerous policy reports, the councils can’t do this alone. They need assistance from the federal government as well as the state.
Tayanah O'Donnell is research fellow, University of Canberra and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/tayanah-odonnell-122914" target="_blank">here</a>.
</body></html>

Coastal law shift from property rights to climate adaptation is a landmark reform

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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