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Suggestions that young and naïve investors are rushing to set up self-managed super funds have been debunked by figures from the Australian Taxation Office.
Graeme Colley, director of technical and professional standards at SMSF Professionals' Association of Australia (SPAA), told SmartCompany that despite an increase in <a href="https://www.smartcompany.com.au/finance/superannuation/35704-younger-generation-interest-in-smsf-on-the-rise">popularity with the younger generation</a>, the latest statistics show SMSFs are still very much the heartland of the wealthy and the mature.
“From what we see, it’s still the 50 plus category,” says Colley.
The September ATO figures show the greatest proportion of SMSFs are funds of between $200,000 and $2 million. The number of funds within this range has risen from 63.9% in 2009-10, to 65.7% in 2012-13.
In contrast, funds under $150,000 have been in a decline over this four-period from 20.5% to 17.2%.
Colley says there has been unfounded media speculation young people were rushing into setting up SMSFs.
“What the industry didn’t want to see happen was people brashly going into SMSFs without seeing if it was the right option for them. But we are not seeing that from these figures,” says Colley.
Colley says while the popularity of SMSFs is certainly on the increase, there has been a “steady as she goes” approach to SMSF investment.
“It’s more of a ‘look before you leap’ situation, we don’t want a runaway freight train,” he says.
Colley believes there has recently been a considerable focus given to the education and training of SMSF managers, in the wake of <a href="https://www.smartcompany.com.au/legal/politics/44700-fofa-changes-scrapped-by-senators-as-financial-planners-plead-for-certainty" target="_blank">changes to the financial planning industry.</a>
He says the ATO statistics also put to bed the myth that SMSFs with low balances have an "unhealthy" concentration of their assets in residential property.
“That doesn’t seem to be the case. Funds with property investment seem to be in the $300,000-$400,000 plus range. It is a common sense investment, rather than people with massive mortgages.”
"The notion that SMSFs are piling into residential property with their ears pinned back is simply not supported by the ATO figures,” says Colley.
The SPAA expects another 20,000 SMSF will be created in 2015.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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SMSFs still the heartland of the mature and wealthy 

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<a href="https://www.smartcompany.com.au/growth/economy/35550-scandinavian-fashion-brand-cos-to-open-in-australia">Scandinavian brand COS</a> opened its flagship store on Friday to long lines in Melbourne; proving Aussie consumers are still hungry to be served up fast fashion from the big overseas players.
On Friday afternoon at the flagship store in Melbourne’s newly refurbished The Strand arcade, a line of eager shoppers waited patiently as staff served customers inside at full capacity.
The brand, short for Collection of Style, sits under the H&amp;M Group umbrella, which <a href="https://www.smartcompany.com.au/marketing/sales/41400-h-m-set-for-australian-roll-out-as-its-first-local-store-launches-tomorrow">launched in Australia</a> in April to incredible demand. COS is at a higher price point to sister brand H&amp;M and appeals largely to a work-wear market with its simplistic Scandinavian design aesthetic.
Retail Doctor Group director Brian Walker told SmartCompany COS is a “very on trend” brand in the fast fashion category.
“There’s definitely an appetite here for it,” says Walker.
Walker says the strong launch of the brand illustrates the “social buzz” created by a big retail opening, pushed along by a strong social media campaign.
“There’s no doubt we always love something new in the retail mix,” says Walker, who believes the hype will “die down” as the brand settles into the retail landscape.
“It will find its place, like Zara and Topshop, as they all do,” says Walker.
Walker says brands such Witchery and Country Road will not be too threatened by the arrival of an international brand in the higher price point category.
“It is a broad category, so competition can actually be very healthy,” says Walker.
Walker is tipping another big year for Australian fashion retail: “At the end of the day, 2015 will be at least as big as 2014.”
He says the flood of international retailers to Aussie shores will not be slowing down, with brands like River Island and Sephora set to open next year.
“The other side of it though is that it is a finite market, we will definitely see some closures domestically,” he says.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Long lines at COS opening proves appetite for overseas fashion brands remains

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The financial planning industry has been thrown into turmoil and the Abbott government has been dealt another blow, after a group of rebel senators last night banded together to disallow the government’s changes to the Freedom of Financial Advice regime.
The group, which calls itself the ‘Coalition of Common Sense’, was led by Labor senator Sam Dastyari and independent senator Nick Xenophon, and included defecting Palmer United Palmer senator Jacqui Lambie and Motoring Enthusiasts Party senator Ricky Muir.
They joined together to disallow the Abbott government’s proposed changes to the previous Labor government's FoFA laws, which had been <a href="https://www.smartcompany.com.au/finance/42838-palmer-deal-means-watered-down-future-of-financial-advice-reforms-will-proceed" target="_blank">watered down by a deal struck with Clive Palmer in July</a>.
The effect will be a return to Labor’s 2012 laws.
Lambie and Muir revealed they were not comfortable with the deal cut by Palmer, believing it diluted reforms needed to the industry. Lambie and Muir both said they were further convinced after hearing from victims of the Timbercorp financial scandal.
In a speech, Lambie said she regretted obliging to the July deal. “Sometimes when you make a wrong, you have to go back in there and make it right. And that's exactly what I'm doing now,” she said.
The ‘Coalition of Common Sense’ has not ruled out banding together to vote on other issues, indicating the Abbott government may face further difficulties when dealings with the senate.
<a href="https://www.smartcompany.com.au/legal/politics/41230-government-puts-future-of-financial-advice-reforms-on-ice" target="_blank">The FoFA reforms</a> were introduced by the former Labor government and were designed to protect consumers from financial planning fraud.
The laws originally set out to ban advisers from commissioning for financial advice, requiring them to ask clients whether they wish to continue receiving their service every two years and to act in the best interests of their clients.
In July, the Abbott government moved to water down what it termed the “burdensome” reforms and announced many of the changes would be made by regulation not legislation. But regulation can be cancelled by a disallowance motion through parliament.
The disallowance has left the financial planning industry uncertain about the future of laws governing financial advice.
To revert back to Labor’s laws, financial planners will face a number of strict new laws when dealing with clients. These include:
<ul>
<li>Customers will have to ‘opt in’ to receiving ongoing advice, with financial advisers having to obtain written consent every two years;</li>
<li>Stronger laws around the disclosure of fees;</li>
<li>Advisers will have to act under a broad ‘best interest duty’ towards their clients, considering all aspects of their best interest; and</li>
<li>An end to ‘grandfathering’, which allowed advisers to continue to receive commissions from existing clients.</li>
</ul>
John Brogden, chief executive of the Financial Services Council, said in a statement the consequences will be far-reaching.
“Overturning the FoFA regulations at the eleventh hour will do more harm than good,” Brogden said.
“The industry has been working under the current FoFA arrangements since 1 July. To turn around and just throw them out is irresponsible.”
Paul Stark, head of financial services operations at Crowe Horwath,said Crowe Horwath has been supportive of FoFA reforms to improve the industry but the continued uncertainty through the parliamentary process was frustrating.
“It makes it hard to plan with uncertainty,” says Stark. “It also takes resources and time.”
Stark says most of the impact will be at an operational level. He gave the example of Crowe Horwath’s fee disclosure statements, which he said were built when the Labour government’s reforms came into place and then subsequently changed in July.
“We built a process, and then we had to redefine it, now we have to go back and revisit and reintegrate those process we’d set up 12 months ago,” he says.
Stark says in his experience, most clients do not value fee disclosure documents or opt-in measures.
“Does it really impact the clients? It hasn’t, in any material way, in my experience,” he says.
Stark says he wants more certainty and for the issue to be brought to a final close.
“We would like for it to be brought to a conclusion and get on with what we need to do to continue to improve the industry,” he says.
This article first appeared on SmartCompany.
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Senate scraps FoFA changes as financial planners plead for certainty

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Self-managed super fund trustees are being put off from seeking financial advice by the slew of <a href="https://www.smartcompany.com.au/finance/44332-public-register-for-dodgy-financial-planners-aims-to-clean-up-industry">recent scandals in the financial planning sector</a>, according to taxpayer advocate group Taxpayers Australia.
Reece Agland, superannuation products and services manager at Taxpayers Australia, said the organisation has considerable anecdotal evidence to suggest trustees are being spooked by recent events, such as the Commonwealth Bank scandal.
“Talking with our member and SMSF clients, they are saying they are scared to go to a financial planner now because of all bad news and they are concerned they’ll receive bad advice,” says Agland.
Susie Salmon, head of superannuation and SMSF financial services at Crowe Horwath, said while she has not seen any evidence of this herself, SMSF trustees are generally more cautious than others with their super.
“SMSF trustees are more wary than other superannuants. They want to make sure they know how their investments are going,” says Salmon.
She says trustees are also more concerned with their independence, and the recent scandals have shown some financial planning institutions have a lack of independence.
Agland says a lack of trust in financial advice may lead trustees to miss out on investment opportunities or products. He says trustees must seek as much knowledge as they can to ensure the health of their SMSF.
“Even if [trustees] are scared to go to a financial planner, they should educate themselves to make better decisions.”
Meanwhile, the fears follow good news for Australian super, as a global superannuation index this week announced Australia as the number two global superannuation system.
The Mercer World Pension Index places Aussie super just behind Denmark in an annual survey of 25 superannuation systems, due in large part to our superannuation guarantee.
Salmon agrees the super guarantee and forced contributions have landed the country such a high ranking.
“The number one reason why we are so big and will become much larger is because we are forced,” she says, pointing out Australia is the only county in the world to institute such involuntary contributions.
“I’d expect we’d be number one soon. We are seen as one of the leaders in superannuation. They [the rest of the world] always look towards the Australian market.”
She also says Australians feel more invested in their super than other countries because the money is “our own personal” money instead of the government’s.
Salmon says because of their strong interest in controlling their own investment, SMSF trustees are key contributors to the strength of the Australian superannuation system.
Graeme Colley, director of technical and professional standards at the SMSF Professionals' Association of Australia, said he agrees the SMSF sector is a major factor behind the ranking, given SMSFs are the fastest growing segment of Australian super and the funds, on average, hold about $1 million each.
“They are contributing, not only by the amount they’ve got in the funds, but from an investment point of view, they are certainly doing their part,” says Colley.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Will financial scandals push SMSFs to go it alone?

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Australian fast food franchise Pie Face has quietly closed six of its seven stores in New York City.
After <a href="https://www.smartcompany.com.au/growth/economy/26195-pie-face-linked-to-casino-billionaire-as-us-expansion-continues" target="_blank">its seemingly successful expansion into the US in 2012</a>, local NYC news website <a href="https://www.dnainfo.com/new-york/20141016/union-square/pie-face-suddenly-closes-nearly-all-its-nyc-locations" target="_blank">DNAinfo New York is reporting</a> Pie Face has suddenly shut its Union Square, Chelsea, Murray Hill and Midtown stores leaving only a paper sign saying catering is still available at its Hell's Kitchen outlet.
New York customers have contacted the Pie Face New York arm on Twitter saying they are disappointed with the closure, but Pie face has not responded.
“I hate when businesses shut down overnight without notice. It's like a screw you to the customers. @PieFaceUSA - I'm looking at you,” said one Tweeter.
In 2012, the pie chain received a massive boost in popularity when it was featured on the American TV show Late Show with David Letterman after its first New York store opened up around the corner from Letterman’s studio.
American-born Pie Face chief Wayne Homschek, who worked as a Wall St banker before starting the chain in Australia in 2003, <a href="https://www.smartcompany.com.au/growth/economy/26533-pie-face-chief-tells---why-a-casino-billionaire-invested--15-million-in-my-company" target="_blank">accepted a $15 million investment</a> from casino mogul Steven Wynn in 2012.
In more recent years, the franchise attempted to expand into India and New Zealand without much obvious traction, and has announced it will look to move into South Korea and the Philippines.
Pie Face has also moved into the South Australian market, stocking its pies in On the Run convenience stores – the SA version of 7-Eleven.
Jason Gehrke from the Franchise Advisory Council said the closures would be a setback to Pie Face’s international presence.
“The closure in NYC is a huge blow to the company and the prestige of the brand in the US, and is also a huge blow to the local partners who invested in the chain,” says Gehrke.
“Not only will there be a difficulty to get back into the market, they will have to completely rethink their US strategy and may need time to regroup before consider going back.”
SmartCompany contacted Pie Face, but did not receive a response prior to publication.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Pie Face quietly closes up New York shops

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Any move to scrap negative gearing would affect Australia’s “mum and dad” investors, according to research that shows 70% of those claiming the rebate earn less than $80,000.
With <a href="https://www.smartcompany.com.au/finance/42835-negative-gearing-could-be-putting-the-financial-system-at-risk-murray-inquiry" target="_blank">calls to scrap the tax</a> never far from public debate, the research shows the property tax break is not just for the wealthy, as often assumed.
<a href="https://www.smartcompany.com.au/finance/investment/34310-should-negative-gearing-be-scrapped-experts-weigh-in" target="_blank">Negative gearing</a> allows investors to claim full tax deductions for interest costs and other property expenses when the investment is less than the cost of owning and managing the investment.
Statistics from the Australian Tax Office, provided by the Property Council of Australia, show 883,325 of the 1.266 million taxpayers claiming benefits from negative gearing earned under $80,000 in 2011-12.
Job classifications from the ATO show the majority of those are teachers, nurses, clerical and emergency workers and salespeople.
Nick Proud, executive director of the Residential Development Council, told SmartCompany many would also be small business owners or sole traders, but it is difficult to determine given the ATO’s classification by industry.
The statistics also show 73% of the Australians accessing negative gearing only own one property and a further 18% own two.
“The majority of these people are not property barons,” says Proud.
“They are average mums and dads, people who don’t want to leave it up to the government to look after their retirement.”
Proud says these investors are providing homes for people not far below their own earning capacity.
He says any action to remove negative gearing from the tax books will result in a slowing up in the interest in rentals, with rental numbers declining and an upwards pressure placed on rents.
He also says investors claim around $16 billion in other rental deductions for property maintenance through their negative geared properties.
“That flow-through to economy would happen straight way and we would see a significant decline in jobs,” says Proud.
Proud also says there would be a significant effect on the demand on public housing, with Australian Bureau of Statistics data showing a huge reduction in building approvals for such accommodation in recent years.
Brian Chant, managing director of Property Asset Planning, agrees scrapping negative gearing would have a detrimental effect on rent prices, job creation and public housing demand.
He tells SmartCompany negative gearing legislation has been in place from 1996 for good reason.
“Negative gearing is a fantastic opportunity for everyone, in any wage or income bracket,” says Chant.
“People love getting into property and what easier way to reduce your income tax.”
But Taxpayers Australia’s head of taxation, Mark Chapman, tells SmartCompany it may not be worth those in lower income brackets getting into negative gearing investments.
“I wonder whether so many people in those lower income thresholds misunderstand the extent of tax brackets,” says Chapman.
He says often these lower income earners hear “wonderful things about negative gearing”, but they don’t necessarily fully understand paying tax at a lower rate also means earning at a lower rate.
“If people in those income brackets go into property investment because they want to be property investors and have commercial judgement fine, but if they look at it as a means of saving tax, ultimately they will be disappointed.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Who really claims negative gearing? ATO stats reveal it's not just a strategy for the wealthy

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Troubled businessman Nathan Tinkler has lost his chance to secure an $80 million purchase of Peabody Energy’s Wilkie Creek mine in Queensland, after he missed several payment deadlines.
<a href="https://www.smartcompany.com.au/growth/41939-tinkler-back-in-the-game-after-queensland-coal-mine-purchase">Touted as his comeback</a> into the coal game, Tinkler had paid a $5 million non-refundable payment on the mine through his company Bentley Resources.
The former billionaire, who is now based in Singapore, <a href="https://www.smartcompany.com.au/finance/42732-fears-over-tinkler-s-coal-comeback-as-a-key-payment-goes-up-in-smoke">missed a payment deadline in June</a> and a closing payment deadline of 31 July, which was further extended by Peabody.
But the energy giant is now fed up and moving on, releasing a statement last week saying it has terminated the sale and purchase agreement with Bentley Resources and is now looking at alternatives for the sale of the mine.
The Wilkie Creek mine closed last year, axing 120 jobs. Peabody blamed the carbon tax and other cost increases for making it unprofitable as coal prices fell last year.
Tinkler had originally said the sale was worth $150 million, but that is understood to have included the funds necessary to bring the mine back into operation.
Peabody revealed the transaction was worth $70 million, with the addition of about $10 million for a rail contract debt.
Tinkler, who had made and lost his fortune through speculative plays in the coal industry, previously told The Australian the Wilkie Creek deal would be funded via his own equity and with support from investment bank Jefferies and its associated private equity firm Leucadia.
The move is the latest twist in Tinkler’s run of bad luck, after retail magnate <a href="https://www.smartcompany.com.au/finance/43396-gerry-harvey-calls-in-the-farm-on-nathan-tinkler" target="_blank">Gerry Harvey called in his debt</a> on Tinkler’s beloved thoroughbred horse farm, <a href="https://www.smartcompany.com.au/finance/wealth-management/42041-tinkler-finally-forced-to-sell-his-horse-racing-empire" target="_blank">Patinack Farm</a>.
The former Hunter Valley electrician confirmed in <a href="https://www.smartcompany.com.au/finance/wealth-management/42041-tinkler-finally-forced-to-sell-his-horse-racing-empire" target="_blank">May he would let go of the farm</a>, announcing to the media he would sell the asset to a consortium of local and overseas parties from the Middle East on a “walk in, walk out” basis for an undisclosed sum.
However, in June, Harvey Norman’s top boss revealed to Fairfax Tinkler had borrowed money from him to establish his presence in the racing industry and thus he had a caveat over the sale.
Tinkler had suggested the sale of Patinack Farm would fund the acquisition of Wilkie Creek.
Tinkler declined to comment when contacted by SmartCompany.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Time’s up for Tinkler as Peabody pulls comeback mine deal after missed payments

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The Sydney and Melbourne property markets have sailed through their first big auction test at the weekend, as the start of spring saw a wave of properties hit the auction block.
More than 2,000 homes went to auction last week, with an impressive 1,179 of those properties selling under the hammer, according to RP Data.
The national clearance hit 72.2%, up from <a href="https://www.smartcompany.com.au/finance/investment/43422-auction-numbers-up-as-sydney-continues-to-lead-the-way">last week’s solid rate of 66.7%.</a>
“If you wanted to script the lead up to spring, you couldn’t have written it better than what happened at the weekend,” RP Data Victorian housing market specialist Robert Larocca said.
Australia’s two biggest auction markets led the way, with Sydney scoring a remarkable 81.1% clearance on its 769 auctions.
“Exceeding the 80% mark is a clear indication of a very strong auction market,” says Larocca.
“Vendors selling their homes within the next two months will be very happy to see that.”
Larocca says Melbourne also stood up to the test this weekend after a flat few months during winter, with a clearance of 71% on 888 auctions.
“Melbourne has now had three weeks of clearance rates above 70%, that’s a good indication of the strength of the market,” he says.
Adelaide also had a strong 66.1% clearance off the back of 86 auctions, while Brisbane and Perth again struggled with a clearance rate of 47% and 46.2% respectively.
Larocca says the market is closely following last year’s progression at this stage and is still highly dependent on the Reserve Bank of Australia’s historically low interest rates, with any move by the RBA to raise rates potentially taking the heat out of the market.
But he says all current indicators show things are certainly warming up for spring.
“Those that are looking to buy in spring will find there is an increased choice, but many will find the bidding is much more competitive than two months ago,” says Larocca.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Auction market sails through first big test of spring

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Self-managed superannuation fund experts have hit back at claims SMSFs are getting a tax-free ride through franking credits and tax exemptions, saying these tax minimising tools are available to all super funds.
As reported by <a href="https://www.afr.com/p/national/how_almost_smsfs_avoided_tax_bOEp84dAnoopreCGMKkE0J">Fairfax</a>, statistics from the Australian Tax Office show almost 300,000 SMSFs were able to eliminate or minimise tax on their super and net $2.5 billion in franking credits in 2011-12.
In that year, 424,360 self-managed funds generated gross taxable income of $32.9 billion, but $15 billion of that was entirely exempt from income tax because the funds were in the pension phase, according to Fairfax.
But two SMSF experts have said those claims are largely sensationalised and trustees were working within tax rules that have been in place for a long time.
“This is nothing new,” says Kathy Evans, principal of superannuation and SMSF at Crowe Horwath.
“[SMSF trustees] are just working with rules, and they are no different to other structures that help taxpayers minimise their tax.”
Because SMSFs invest in shares, they are credited the tax paid by the companies they invest in the form of franking credits. They are essentially subsidised on their 30% tax rate by the company, because otherwise the ATO would receive two lots of tax on the same investment.
But Graeme Colley, director of technical and professional standards at the SMSF Professionals’ Association of Australia, says most of the large super funds also invest in shares and are also entitled to these franking credits.
“If you a shareholder – it doesn’t matter who you are… you are entitled to them,” says Colley.
Colley says there are no further tax exemptions offered to SMSFs that are not also offered to other super funds.
“There are no words in the legislation that say, ‘this is how SMSFs get taxed and this is how the big funds get taxed’. They’re all taxpayers,” he says.
Evans says these tax rules have been in place since the 1990s and SMSF trustees are just working within the rules to get the most of out their retirement funds.
She says suggestions SMSFs are purely for the wealthy are inaccurate, and she sees many trustees who could not be classified in that category.
“These people have worked hard all their life, they’ve paid their tax and have got plans in place to assist with their retirement. They are working within the legislation,” says Evans.
Both Colley and Evans say calls to get rid of franking credits or to change the dividend imputation system of taxation should be viewed with caution.
“It may become a disincentive. If they mess with the rules, people will lose interest and I don’t think that’s a good thing,” says Evans.
“We need more people saving for their retirement.”
Colley says if you change legislation for SMSFs, then it will need to be reconsidered across the board.
“Picking on one set of taxpayers is unfair,” he says.
This article first appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
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SMSFs don't get a free tax ride, experts say

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Australia’s property market had a solid weekend at auction, despite the clearance rate taking <a href="https://www.smartcompany.com.au/finance/investment/43308-auction-numbers-swells-as-spring-approaches">a slight dip from last week</a>.
The national market achieved a 66.7% clearance rate on the 1,675 auctions held across the county at the weekend, down from 68.4% of 1,544 auctions the week before, according to RP Data.
Sydney again outshone the other capital cities with a robust 76.2% clearance as 632 homes went under the hammer.
RP Data Victorian housing market specialist Robert Larocca said Sydney is continuing to be a strong market in more ways than one.
“Sydney is continuing to set a whole range of records,” says Larocca.
Larocca says Sydney has seen the biggest rise in the number of homes sold at auction compared to the same time last year, at 63%.
But he notes this trend towards auction is true of all the capital cities, with particularly strong results also recorded in Tasmania, with a 56% rise in auction volumes, and Adelaide, with a 48% lift in homes sold at auction. 
Larocca says although Tasmania’s relatively lower figures should be taken into account, vendors are still trending strongly towards the auction sales method in the state and finding good results.
This week, Melbourne had a solid clearance of 64.1% off 749 auctions, while Brisbane continued to struggle with a 52.1% off 134 auctions.
Larocca shrugged off comments made by Jeremy Lawson, a former senior economist at the Reserve Bank of Australia, this week that suggested the housing market was overvalued by at least 30%.
Larocca says, in Melbourne, values still haven’t reached the peaks of 2010 and transactions numbers overall were down from figures seen in 2007.
However, he says the points Lawson makes about the impact of the economy on the property market are sound.
“Australia is an island geographically, not economically,” he says.
“Employment figures and the economy as a whole has to have an impact on prices.”
Yet Larocca says evidence currently points to the market’s strength.
“On the eve of spring, the market is looking very sound,” says Larocca.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Auction volumes on the rise as Sydney continues to lead the way

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]

Joel Robinson

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.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

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Kirsten Robb

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