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GUEST OBSERVER
Are you looking to buy property off the plan? Buying a property is likely to be one of the largest purchases you will ever make so making sure you buy the right property is really important.
Buying a property on your own can be extremely difficult and stressful and you might not have access to all the correct data and latest information available. How do you know that this property will be a solid investment? Is your data correct? Which suburb should you be investing in for capital growth? 
To help take the stress and complications out of buying a property, it is important that you seek the help and guidance of property specialists such as iBuyNew who are experts in this field. However, you should not just go with the first company you come across – it is essential that you thoroughly research the company as well to ensure that they are reputable, trustworthy and have your best interests at heart. 
There are plenty of cowboys out there who only care about lining their own pockets and can be quite pushy with their sales techniques. You can rest assured that our property consultants are not like this and we also work with reputable developers to give you peace of mind that your property is of the highest quality.  
SO, WHY SHOULD YOU BUY PROPERTY WITH IBUYNEW?
When it comes to buying property off the plan, iBuyNew isn’t your average real estate agent.
We pride ourselves on our exceptional customer service alongside our extensive range of high quality projects, allowing you to review, compare and make an informed decision all under one roof utilising one of our professional property consultants.
As mentioned previously, buying a property on your own can be a challenging and stressful experience. This is because you might not have access to the correct data or even have access to the most up to date research. Buying a property can also be costly and making sure you have the right advice when you’re making such a large purchase as a property is extremely important. There’s nothing worse than paying a substantial amount of money for a property that will drain your pockets rather than line them.
WHY CHOOSE IBUYNEW?
There are a number of reasons as to why you should buy a property with iBuyNew. HERE ARE OUR TOP 7 REASONS: 
<ol>
<li>INDEPENDENT AND IMPARTIAL ADVICE - We offer independent and impartial advice and our consultants are paid a flat fee irrespective of whether you’re spending $300,000 or a million dollars. Many other real estate agents are paid a commission, so the more you spend, the more they gain.</li>
<li>ACCESS TO THOUSANDS OF PROPERTIES – No one else in Australia has access to the properties we have. We have the largest variety of off the plan apartments across Sydney, Melbourne and Brisbane. This gives you an extensive choice of properties to view and compare and we have offices in Sydney, Melbourne and Brisbane where you can come in and speak to our Property Consultants face to face.</li>
<li>ACTIVELY SEEKING NEW PROJECTS - We’re always on the lookout for exciting new properties and developments and developers are coming to us before they’ve even launched to the market. If you want to be in first you really should be talking to us. The earlier you get in, the greater choice of apartments you have and you might even have the opportunity to choose your preferred colour scheme and finishes.</li>
<li>FLEXIBLE - We’re small enough to be flexible and make sure that we look after you, but big enough to be respected in the marketplace. We realise that every client is different so we can tailor the right property to suit your needs and requirements.</li>
<li>VARIETY OF BACKGROUNDS - Our property consultants come from very different backgrounds including financial planning, accounting and mortgage broking. This allows us to provide you with extra advice on building that property portfolio you’re looking for, especially if you are a first time buyer or investor.</li>
<li>WE ARE PROPERTY CONSULTANTS - One thing that makes us really different from other real estate agents is that we’re not real estate agents, we’re Property Consultants. We’re here to hold your hand all the way through the journey, from the time that you’re looking at a property, through to exchange, over to settlement and beyond. Once you have been assigned to a Property Consultant they will work with you every step of the way to meet your end goals and even help you with your future property purchases.</li>
<li>WE DON’T JUST SELL YOU A PROPERTY – we actually tailor the experience for your needs. We make sure that what you’re looking for is what we are able to offer you and if we can’t we’ll let you know that we can’t help and point you in the right direction of someone that can.</li>
</ol>
We have hundreds and hundreds of clients who are very happy with us so if you want to find out more about what the service is like from iBuyNew, then let us know and we will be happy to pass on more information to you.
Technology investment company Disruptive Investment Group Limited has decided to increase its stake in off-the-plan property marketplace iBuyNew.com.au to 100% for $5.9 million. Read the full story <a href="/news/disruptive-investment-group-to-increase-stake-to-100-in-property-marketplace-ibuynew-com-au">here</a>. 
Mark Mendel is founder and chief executive officer of iBuyNew and can be contacted <a href="https://www.ibuynew.com.au/">here</a>.
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jchancellor-FAypfDUnLy

Why buy new? iBuyNew.com.au's Mark Mendel

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GUEST OBSERVER
Investors have had a tough start to 2016. Financial markets are extremely volatile and many are wondering what investment strategy to pursue.
There are a huge number of approaches used to decide the best time to buy and sell financial assets, such as shares, bonds, commodities, and currencies. This activity is variously referred to using terms such as “active management” and “market timing”.
Hindsight can be a fine thing for the investor or asset manager. But what they need to know is how they can best assess in advance whether an active management technique is going to add value or not. Small gains in performance can result in large amounts of wealth being created given the large amount of money under management.
There have been numerous advances in this area by researchers recently, which may help investors to make decisions with more confidence, especially in the current environment of uncertainty.
The first thing to consider is whether the returns generated over the historical test period are statistically significantly different to zero. Just because an approach generates an impressive average return does not guarantee that it passes the statistical significance test. Large average returns may be driven by a small number of extremely good daily or monthly returns, which are not representative of the usual return.
Traditional statistical significance tests can often give misleading results but new improved methods are very robust. Related to this is the sequence of returns. It is important to investigate this because an approach that generates superior returns overall – but has long periods of sub-standard returns – will be hard to stick with in reality.
Risk is another important consideration. Simply finding that a strategy has generated historical returns is not sufficient as a risky strategy needs to generate larger returns if it is to appeal to the average investor who is risk averse. The risk-adjusted returns of a technique therefore need to be determined. Sharpe ratios are commonly used in this area but recently developed approaches, which overcome some of their limitations, have been shown to be superior.
Testing large numbers of approaches in historical data raises the possibility that one technique will show promise by chance. Indeed, we know of one paper that found over a certain time period the best predictor of movements in the S&amp;P 500 index was butter production in Bangladesh! It is therefore important to account for “data snooping bias” using an appropriate statistical technique before concluding whether an active management approach does in fact produce historical superior returns beyond what might be expected by chance.
Some approaches work well in certain periods but poorly in others. It is therefore important to investigate the historical performance in periods such as bull and bear markets and recessions and expansions. While consistent historical performance over these periods does not guarantee future success, a finding of sub-standard performance in one of these historical settings could be indicative of poor performance in these periods in the future.
It is also important to conduct style analysis to get an appreciation of what influences the returns of an active management approach. Addressing questions such as “do the equities in the portfolio tend to do better when oil prices or the exchange rate are going up or down?” provides some intuition which can be used to determine the likely performance going forward.
This type of analysis can be extended to determine the proportion of historical out-performance that is driven by the assets that are in the portfolio or decisions around when to buy and sell the various components of the portfolio.
Transaction costs are often a large determinant of the returns an investor receives. An investment approach that requires frequent rebalancing will incur larger transactions costs than a more passive approach, and the types of assets that are chosen will also influence the level of transaction costs.
A logical way to quantify the performance of a strategy is to document the level of “break-even” transaction costs, that is level that transaction costs would have to be at before the profits disappeared. If these are much larger than reasonable estimates of actual transaction costs it is clear the strategy’s historical returns are greater than its transaction costs.
Conducting out-of-sample tests is another important approach. Refining a technique on a subset of available data and then testing its performance on remaining data can add confidence around whether it has the potential to add value going forward.
While there is never complete certainty that the superior returns of an active management approach in the past will be repeated in the future, the approaches we have discussed give an asset manager or individual the best chance of identifying techniques with robust returns.
 
Ben Marshall is MSA Charitable Trust professor in Finance, Massey University and can be contacted <a href="https://theconversation.com/profiles/ben-marshall-238925" target="_blank">here</a>.
Nhut (Nick) Hoang Nguyen is associate professor, School of Economics and Finance , Massey University and can be contacted <a href="https://theconversation.com/profiles/nhut-nick-hoang-nguyen-238929" target="_blank">here</a>.
Nuttawat Visaltanachoti is professor in Finance, School of Economics and Finance , Massey University and can be contacted <a href="https://theconversation.com/profiles/nuttawat-visaltanachoti-238930" target="_blank">here</a>.
All are authors for The Conversation.
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What it takes to invest in volatile sharemarkets

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ANZ Banking Group will take a more cautious approach towards property borrowers' expenses from April.
ANZ is the final big bank to toughen rules on living expenses, in response to APRA concerns that banks have issued loans too easily.
Its note to mortgage brokers, ANZ said it would change the way living expenses were calculating home loan totals.
What the more prudent bank views as a "minimum" living expense will depend on the borrower's income, the number of dependants they have, and whether the application is for a joint or individual loan.
The changes, to take effect from April 4, Fairfax Media reported.
Mortgage brokers were advised on common scenarios, such as a hypothetical couple with two children wanting to buy a $500,000 investment property.
The slide pack says that due to the bank changing its estimate of such a couple's minimum living expenses, the maximum amount they could borrow would fall more than $50,000.
ANZ will also tighten assessments of overtime pay, bonuses and commissions. 
It will also lower its interest rate "buffer" – a rate that tests how borrowers would cope if interest rates rose.
"We regularly review our retail credit policies to ensure that lending remains prudent and aligned with risk appetite in light of the competitive, economic and regulatory environment," an ANZ spokesman said.
"For our customers, these changes are designed to ensure that we continue to assess any application for credit in a prudent way in view of their individual circumstances."
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ANZ tightens lending rules for borrowers

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Private equity giant The Carlyle Group is one of the parties circling the theme park, marina, bowling centre and gym owner, Ardent Leisure. 
The Australian Financial Review's Street Talk column revealed that Carlyle's dealmakers are keeping a close eye on Ardent which fits the break-up and turnaround aspects of the private equity playbook. 
Ardent announced plans to offload its $110 million-odd d'Albora Marinas division last week, promising to direct funds for its Main Event bowling and entertainment centres. 
Ardent Leisure put its <a href="https://www.ardentleisure.com/our-brands/dalbora-marinas/" target="_blank">d’Albora Marinas business</a> up for sale last week, moving to shore up its balance sheet and focus on its Main Event family entertainment division.
d’Albora Marinas comprises seven high profile  marinas, including three in Sydney Harbour, two adjacent to the Melbourne CBD and a further two at the popular leisure destinations of Nelson Bay and Akuna Bay, north of Sydney. These locations represent over 1,300 berths, substantial water and land leases with development opportunities. 
d’Albora Marinas, the largest marina group in Australia, saw interim revenues fall 2.3 per cent in the company’s most recent results, with earnings before interest, tax, depreciation and amortisation sliding 8.6 per cent to $4.6 million over the six months through December.
Ardent said the sale of the marinas will “assist in accelerating the pace and development” of the Main Event business in the US, as the company bumped up the number of new centres it plans to open in the 2017 financial year to 11, up from a previously planned 8, bringing the total number of centres to 38 locations across 12 states.
“These decisions follow a period of review over the last six months and position the group as a premium family recreation and entertainment company,” chairman Neil Balnaves said.
“Deborah Thomas and the management team have commenced the process for the sale of d’Albora Marinas and the remainder of these initiatives will be implemented as a priority over the next 12 months,” Mr Balnaves said.
“In due course it is expected that, with the growth of the US assets outweighing that of the Australian businesses, the balance of the group’s assets and revenues will become more weighted to the US,” he said. 
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Ardent Leisure's marinas for sale

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Those promised Chinese buyers are very often a mirage as businessman, commentator and former Federal Opposition leader, John Hewson has found with his Southern Highlands listing, Invergowrie.
His Tudor-style Exeter estate was recently promoted directly into the supposed vast Bejing buying pool in what proved a pointless marketing exercise.
It is now up to Mick Maloney, the longstanding local Richardson &amp; Wrench agent, who has listed the trophy estate listed for April 16 auction.
It built in the 1930s for the BHP industrialist Sir Cecil Hoskins, with an extensive 2009 refurbishment to the seven bedroom house that comes with library, ballroom, studies and billiard room.
The nine hectare grounds have Paul Sorensen gardens with tennis court, bocce pit, swimming pool, croquet lawn, orchard, vegetable gardens, a Japanese garden with waterfall, aviary and three guest houses.
Designed by architect Geoffrey Loveridge, Invergowie replaced Headlands, which had been owned by the Yates seed family.
Before that the Badgery family had what remains the landmark feature of the village of Exeter.
Hewson and his wife, Jessica Wilson have the trophy home listed with $7.5 million expectations
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Former Federal Opposition leader John Hewson lists Invergowrie

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<img src="/images/2016/03/30/Holdencapital_banner.jpg" alt="" width="646" height="136">
SPONSORED POST
This is a question faced by many developers as they find themselves inevitably stepping up to larger projects and the consequential demand on their equity resources. The answers are complex and can vary depending on many variables but let’s take a look at what each option offers
Firstly, lets be clear on the differences between debt and equity. Debt comes in many forms but essentially, it comprises funds that are lent at a proscribed interest rate which in a project scenario are usually but not always, capitalized as a cost of the project. Debt is typically but again not always, secured by a registered charge over the security property together with sponsor guarantees and in the final wash up, the lender’s repayment of capital, interest and fees take priority over those of the sponsor when apportioning the proceeds of sale. Clearly it is important to negotiate the best possible terms when committing to a debt position but at the end of the day, the golden rule tends to apply, he who has the gold, makes the rules.
Equity on the other hand is usually defined as the capital contribution provided by the sponsor of the project and any related parties. Equity can take the form of cash, services provided and any improvement in value derived from the revaluation of an asset as a consequence of a rezoning or similar.
Sponsor structures can take many different forms but for the purposes of this article we will treat partnerships the same as single traders (as do lenders), while Joint Ventures provide a structured arrangement enabling parties with differing skills and or capabilities to come together to undertake a project and share in the resulting profits. 
The manner in which debt and equity can be sourced and applied is almost limitless but lets take a look at the typical options available to a developer and consider the benefits.
The Debt Options:
Firstly, you need to be aware that the state of the market will often determine what is actually available. Simplistically, in a rising market, access to both debt and equity is typically more readily available and pricing is competitive. Traditional debt providers such as the banks and major funds chasing market share, will consider higher Loan to Cost/Value ratios, more competitive terms such as lower presale requirements and keenly priced interest margins and fees.
Alternatives such as mezzanine funding also become more prevalent in rising markets with participants providing funds to top up the capital stack in a project. Typically filling the gap between senior debt at say 75-80 percent up to 90-95 percent of the total project cost, the cost of Mezzanine can range from 20-25 percent p.a. but as the market gets hotter and depending on the level of risk, pricing can fall to as little as 14 percent.
While these funds may seem attractive, they are often accompanied by very tight and restrictive terms, which can result in the sponsor losing control of the project to the advantage of the mezzanine lender. Sponsors need to be aware that a Mezzanine partner is really just another lender albeit with more to lose that the senior debt provider and when the going gets tough, you potentially have two masters to satisfy rather than just one and neither is likely to have the same agenda as you.
A key point to remember is that in a rising market Mezzanine Lenders are attracted to a share of the upside and negotiate accordingly. In a falling market they will seek to cap their exposure and prioritise their returns at your expense. Conversely, you as the developer are looking to maximise the blue sky in the project or protect your downside as the case maybe.
“Stretch senior” debt is another option that is usually seen in stronger markets with some specialist lenders prepared to exceed the usual Major bank construction loan LCR’s of between 70-80 percent by lending up to 90 percent+ of LCR in return for a margin that reflects the associated risk, which might be some 3-4% above that charged by the banks, depending on their assessment of the project and sponsor risks.
In a falling or credit constrained market as we are currently experiencing, the traditional lenders tighten their terms and we see LCR’s firm to between 65-75% and the application of stricter presale requirements, typically with a minimum of 100% debt cover as a condition precedent. 
Joint Ventures:
The attraction of Joint Ventures is that they provide a multitude of structures that can be tailored to the developers needs and typically provide access to capital and expanded skill sets in return for a share of both the profit and the risk.
Like debt, Joint Venture funds are easier to secure in a rising market but even more importantly than with debt, the secret here is to find the right partner. While negotiating the right terms and a soundly drafted JV Agreement are critical (we will deal with this in a future article), the most important consideration is finding a partner who not only has complementary skills and capabilities to work with their own but also has the same goals and values in terms of their decision-making processes. This is a more challenging exercise that selecting the right debt or mezzanine partner but has the potential to be far more rewarding. 
The classic JV structure where the parties are equal in their contributions and profit entitlements are rare with most comprising of a party with the ideas/opportunities and the other with the capital and resources to make it happen or a similar permutation. As a result, in a rising market Joint Venture partners with capital are attracted by an increased share of the upside and negotiate accordingly, while in a falling market they will seek to cap their exposure and prioritise their returns at the expense of their partner or the lender. Conversely, the initiating developer is also self motivated and looking to give away as little as possible in their project which usually results in an increased downside in the event that they do not perform their obligations and for newcomers this inevitably ends in tears as they over estimate their own capabilities.
So, the question as regards more debt as opposed to equity is not simply one of cost. More importantly it is one of understanding your capabilities to deliver and being able to deal with the consequences if unforeseen forces result in a less than optimum outcome.
In the case of “more debt”, the developer needs to be aware that losing control to the lenders has a proportionally higher risk in terms of the financial consequences both in terms of the project and their personal fortunes. On the other hand the Joint Venture can reduce the downside risks from a capital exposure perspective but comes at the cost of having to give away a substantial portion of the projected profit.
So, there is no right or wrong answer here, the key question an under capitalized developer needs to ask themselves is what option best fits my situation, what is the downside if events outside my control mean that the project fails and can I live with the consequences of my decision?
 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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Risk and Reward – Does more debt solve your problems or do you need a JV Partner? HoldenCAPITAL

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The Royal Children’s Hospital secured $663,000 after Henley and Villawood Properties offered an auction property proceeds towards the hospital’s Good Friday Appeal.
<a href="https://www.youtube.com/watch?v=2-dDdw7D1Ek" target="_blank">The property</a> was at Villawood Properties’ Trillium community in Mickleham.
There was spirited bidding for the home at the no reserve auction where all proceeds were donated to the hospital.
This Easter marked the Good Friday Appeal's 86th year of contribution to the Royal Children's Hospital.
The Henley home that sold to the Elsikmani family brings to approximately $4.4 million the amount raised for the hospital through this initiative since Villawood Properties’ involvement began seven years ago. 
At over 48 squares, this property featured four bedrooms, three bathrooms, and living areas and outdoor alfresco - all appointed with the highest quality of fixtures and fittings.
The Trillium community has a residents only facility Club Trillium which features a fully equipped gym, heated 25 metre lap pool, tennis courts, community gardens as well as a function room. 
The Royal Children’s Hospital secured $646,000 last year after Henley and Villawood Properties offered an auction property proceeds towards the hospital’s Good Friday Appeal.
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Villawood and Henley combine to raise funds for the Royal Children's Hospital Good Friday appeal

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GUEST OBSERVER
Sydney buyers looking for a freestanding home are starting to be frozen out with the infiltration of apartments, and property experts are widely talking about unit prices dropping due to oversupply - but is this the only issue? This is just one problem but many others are being ignored. 
Exceptional market conditions in Sydney meant that apartments were significantly more affordable than houses for many buyers – last year especially – and as a result, many development applications were submitted for new apartment high rises. As a result, Sydney took over from Melbourne as the leading capital for apartment development and in July alone last year, the City of Sydney received more than 2,400 development applications, in what was quoted as a record high.
By 2018, the City of Sydney expects 8,000 new dwellings to be completed, while Green Square is expected to house more than 54,000 people by 2030<a name="x__ftnref3" href="https://outlook.office.com/OWA/?realm=propertyobserver.com.au#x__ftn3" title="">[3]</a>. Looking north of the bridge, St Leonards will have more than 500 new apartments by 2020.
“here’s an apartment boom but where is the foundation? If we look at supply and demand a year ago, apartments were in demand mainly because of the investor boom and many owner-occupiers were priced out of purchasing a family home. What I want to know is are we building the right course for the right horse?
Think about housing diversity five years ago and look at where we are heading by 2020, we’ll have a remarkable number of apartments by then. The size and scale of this issue is much bigger than we even realise and there’s a real lack of research around the implications on infrastructure, mental health and other future ramifications. 
This year, it’s been estimated that almost 45,000 apartments will be completed and settled in Sydney, Melbourne and Brisbane, with an additional 53,000 due for completion in 2017.
We are reverse engineering the supply and demand process and changing the behaviours of people as a result.
We are forcing buyers into considering apartments because the reality is that they have very little other option in a semi-affordable price range. We are starting to see some ill-effects from an oversupply of apartments such as rents falling for the first time in three years, as well as vacancy rates rising. A number of reports show that this is already happening but this is not the only issue. There are also huge socioeconomic issues that will arise from this boom.
A report on housing demand from NSW Planning and Environment predicted that Sydney will have an extra 1.6 million people by 2031, and more than 664,000 homes will be needed. It claims that the rise in single-person and couple-only households as well as an ageing population is driving the need for smaller dwellings. This report also revealed how the government would create housing diversity, which included studio flats (self-contained studio apartments that are established with a main house), smaller lot sizes (standard minimum lot size for high and low density areas), townhouses and terraces, and manor homes (four separately titled units within the same building). 
Although I acknowledge the findings in the report, I still believe that a lot of these apartments are being built to feed the investor boom as opposed to a spike in people looking for low maintenance properties. How are freestanding, detached homes not part of a housing diversity plan? We need to have more dialogue on this and think of more creative ways to build more townhouses or single house dwellings for a similar price as apartments – in a way that doesn’t skimp on build quality. Increasing population is a problem for everyone. Let’s not just build tower blocks at extortionate prices, let’s build dwellings that Australians are happy to come home to.
Five solutions for housing diversity that meets demand:
1. Increase ‘stepping stone’ homes. Currently, there is a very small pool of stepping stone properties available for buyers. I don’t understand how we expect people to go straight from a unit into a four-bedroom home if things continue on the same trajectory. Town planners really need to focus on building a bridge for buyers from their first property to their second property because the type of supply is not readily there. Terrace houses take up a lot of space and that’s why they’re not being built as much – but they’re a good example of a stepping stone property.
Likewise, if you look at people downsizing, which many baby boomers are in the midst of doing or considering, they might want something in between their four-to-five-bedroom family home and an apartment. Generally, at the end of the day, younger people live in tower blocks. After the kids have flown the nest, downsizers are usually only open to moving into a 16th floor shoebox with shared walls when it also comes with something as spectacular as harbour views.
Sydney’s Leppington is planning to introduce a contemporary equivalent to the Paddington and Surry Hills terrace-style houses as part of its redevelopment masterplan and I think this is a great example of forward thinking. Sure, the suburb is very much a blank canvas so they have the luxury of planning really thoughtfully and building for the future, but there’s no reason why other suburbs can’t plan for the future – they just have to be more creative about it.
2. An in-depth, socioeconomic study. 
A number of studies have been carried out to determine the happiness of people living in high rise apartment blocks, with one study in the UK revealing some alarming results, including that apartment living can increase your susceptibility to stress and your risk of developing mental health issues, and could even cause a relationship break-up. Furthermore, the study revealed that there are serious concerns for children brought up in apartments; children can suffer from hyperactivity, hostility and juvenile delinquency as a result. Not enough socioeconomic studies have gone into this on a local level and it’s absolutely something we need to explore.
Size is one thing but we also need to consider the emotional impact of living high up in the air. I understand the economics of the situation but I don’t think enough research goes into it. Yes, there’s demand but I think we should start building dwellings that people want to live in – not just because it’s the only option, price-wise. We have a responsibility for future generations to preserve the integrity and ambience of certain areas, and need to take a step back and look logically at this because the mental wellbeing of our community is also very important.
3. More emphasis on planning for the future of our city. 
You can’t just rezone an area for fun. While it’s true that people work longer hours, are information rich and have fewer children, that can’t be translated directly into them wanting smaller dwellings. Residents of family-centric areas are getting together to oppose the rezoning of their suburbs, and we saw just one example of this in the inner-west suburb of Hurlstone Park earlier this year. 
You have to ask why units are being built in family-belt areas to create more diversity from a demographic point of view. People often move to these suburbs for a more peaceful or quieter life, so why are some councils now trying to entice youth into the area? Most young people want to live in a vibrant suburb with all the trimmings, which makes living away from inner-city areas less appealing to them. I think the Federal Government is putting pressure on the NSW State Government to meet various quotas which trickles down to the councils and that’s how we arrived here – building for today but not for tomorrow. 
4. Assess implications on surrounding infrastructure. 
I applaud the government for getting the big ticket items right such as public transport and widening of motorways, but they need to work further on local transport and roads, as well as schools, shops and other infrastructure essential for these new high-density communities. What new apartment developments are going to do is put a lot of stress on small intersections and I’m not sure if we are looking at the full impact on society. Are we still surveying roads and measuring traffic flow like we used to in soon-to-be affected intersections every morning and afternoon? If we’re not, we certainly should be. 
5. Incorporating vertical forests into more developments. 
My concern with apartments is how the lack of greenery negatively impacts residents’ wellbeing. It’s been scientifically proven that green is a calming colour and nature is a calming influence and I think it’s crucial for apartment blocks. Large-scale, inner-city urban renewal projects are really thinking creatively about how they can incorporate plant life. Central Park in Chippendale is a great example, with vertical gardens and surrounding parkland, and developments at Green Square as well as Barangaroo are also focused on incorporating greenery. The developers aren’t doing it just because it looks good, they’re doing it because it’s essential to keeping residents happy.
DOUGLAS DRISCOLL is CEO of real estate agency <a href="https://www.starrpartners.com.au/" target="_blank">Starr Partners</a>.
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The damaging ramifications of the apartment boom: Douglas Driscoll

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Australia's major banks were still shy of lending in the off the plan Gold Coast development space with all the major viable projects on the Gold Coast facing challenges when it came to funding.
"The big banks are still very wary of the Gold Coast," PPB Advisory's Garry McLean told the Australian Financial Review.
"They have been here before and have been hurt by settlement failures, but in saying that, there are actually some very good opportunities there."
Australia's major banks were burnt during the financial crisis when hundreds of investors refused to settle on off-the-plan purchases.
Urbis was currently monitoring 26 Gold Coast projects which could be launched within the next six to nine months that would bring 2500 apartments to the market.
It has been suggested at the current Gold Coast sales rate, that this number represented about 18 months' supply.
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There has been a flurry of property developers back for another run, but this time with their offspring in charge, the paper noting developers such as Jim Raptis and Con Nikiforides.
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It is Con's sons William, John and James who are about to start construction on a development called The Park at Mermaid Beach. 
Patriarch Jim Raptis's son Evan Raptis has a company called Emandar, which has been developing low-rise apartment towers throughout the Gold Coast.
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Banks still nervous about off the plan at the Gold Coast

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GUEST OBSERVER
Some say that economics is “the dismal science” and perhaps this is because many economic theories do not seem to work in practice.
One contemporary example is negative interest rates, where instead of interest being added to their savings, individuals find that value is lost.
Negative rates have been introduced by some central banks worldwide. In theory doing so should both devalue their currency, making their exports cheaper and imports more expensive, and at the same time encourage consumer spending. It should also boost lending by financial institutions, as the value of capital being held by both individuals and banks is ever decreasing.
Sadly this theory when put into practice has been found wanting. The Bank of Japan introduced a negative interest rate of minus 0.1 percent in January 2016 and the yen subsequently increased in value compared to its competitor currencies. Indeed in 2016 the yen is the best performing G10 currency against the US$.
Similarly the Swiss National Bank flagged a negative interest rate of minus 0.25 percent to be introduced in January 2015, but the inflow of funds into the Swiss franc continued and the rate was finally reduced on its introduction to minus 0.75 percent, with the aim of discouraging capital inflows. However despite these moves the Swiss National Bank continued to accumulate foreign exchange reserves into the second half of 2015.
The European Central Bank (ECB) further increased its negative interest to minus 0.4 percent, on bank deposits held at the ECB in mid March 2016, as it attempted to manipulate downward the value of the Euro. The impact of this was undermined somewhat by allowing the European banks to borrow from their central bank at the same minus rate, depending on how much they lend to businesses and consumers. An initial dip in the value of the Euro when the minus 0.4 percent was announced was then followed by a sharp rise, as the implications of the whole package became clearer.
The aim of this is to lower the cost of borrowing for both consumers and corporations, as the banks borrow money from the ECB at no cost to them. This is intended to help stave of the threat of deflation in the eurozone by stimulating investment and consumption.
Recently published research from the Bank for International Settlement (BIS) found that in some cases savings accounts had been insulated from the impact of negative interest rates and that some mortgage rates in Switzerland had “perversely increased”. The conclusion from the BIS was then,“if negative interest rates do not feed into lower lending rates for households and firms, they largely lose their rationale”.
The Governor of the Bank of England has argued that if central bank policies are structured in ways that shield retail bank customers from minus interest rates, then they are unlikely to do much to stimulate domestic demand. Instead the main effect will be on exchange rates and this will result in the provoking of currency wars, as central banks attempt to out do each other in negative interest. Negative interest rates are intended to boost domestic demand by forcing banks to lend money out and encouraging consumers to both borrow and spend.
<h2>Consumer behaviour is unpredictable</h2>
Once again the “dismal science” comes up against the unpredictable behaviour of individuals and organisations, when they enter the territory of negative interest rates.
Take Japan in February 2016. One month on from the Bank of Japan’s decision to unleash negative interest rates, applications to join the loyalty clubs of Japanese department stores such as Mitsukoshi, Daimaru and Takashimaya were 100-200 percent higher than in the same month of 2015. The explanation is that these loyalty clubs offer a 5 to 8 percent annual bonus to their members, a far better return than any Japanese bank can offer, even if it encourages them to spend their money where they have their account(s).
So will negative interest rates continue to be used as a weapon from the central bank armoury, or will the unpredictable behaviour of consumers and investors undermine the intentions of the central banks?
If the weapon of negative interest rates does not work as expected on currency values or domestic consumption and investment, what else is there left to deploy to prevent deflation and a further slow down in economic actively? Economics indeed truly is dismal science.
Steve Worthington is adjunct professor, Swinburne University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/steve-worthington-138" target="_blank">here</a>.
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Negative interest rates – are there any positives?

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Jonathan Chancellor

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