<html><body>
Australia’s baby boomers and retirees will have a little less to worry about this Christmas, as Australia’s superannuation funds are on track to achieve their highest returns since the global financial crisis.
According to research released yesterday from independent agency SuperRatings, superannuation funds had solid returns in October. The agency predicts when the November and December results are added in, the average Australian superannuation balance will have grown 14.1% over the calendar year.
Balanced funds gained, on average, 1.8% in October. Since July, superannuation funds have risen on average 6.9%, and since October 2012 have risen 16.9%.
The big driver of this is shares, with both Australian and international share markets enjoying a bull run in recent months.
But returns across all asset classes were positive in October – even cash options returned 0.2%.
Last year, superannuation returns on balanced funds rose an average of 11.7%. That was an <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/30460-what-the-big-mac-index-says-about-the-aussie-dollar-five-things-you-need-to-know-about-the-economy">unusually good year</a>. Superannuation balances declined 1.9% in 2011, rose 4.6% in 2010, and 12.9% in 2009 after falling 19.7% in 2008.
Over the past 10 years, superannuation funds have returned 7% per annum on average – just less than half of this year’s expected figure.
The past few years have been a rollercoaster ride for investors, with the bull market of the early 2000s spectacularly crashing in 2008. But SuperRatings founder Jeff Bresnahan says superannuation investors still ended up ahead.
“Australian superannuation funds have continued to deliver returns of 7% per annum, some 4% above prevailing inflation,” he says. “For members who have some time until retirement, this history of longer term performance should provide comfort that fund’s continue to meet their long term objectives.
“For members nearing retirement, however … the actual risk achieved in the lead up to retirement takes on greater significance. The most important planning decision for older members is to ensure that their strategy reflects both their goals and capacity to bear risk.”
A hypothetical $100,000 balance invested in a balanced fund in 2003 would now be worth $195,265, a 95% gain over 10 years. It would have risen rapidly until 2007, before starkly declining to just $124,627 in 2009 before making up the lost ground and then some in the years to 2013.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
</body></html>

mrobin-TVRYiru7si

For second year running super funds will break post-GFC record: SuperRatings

<html><body>
While iron ore, coal, gold and natural gas have been Australia’s biggest commodities for the past decade, industry experts say the exporting landscape is evolving, with new industries coming to the fore.
Food manufacturing, oil and gas extraction, beer manufacturing, education services and legal services have been ranked by IBISWorld analysts as Australia’s best chances to support the nation’s economy in the next few years.
In 2013-14, Australia is expected to generate $317.6 billion in export revenue and IBISWorld industry analyst Sebastian Chia told SmartCompany in a statement macroeconomic factors will favour exporters in the next five years.
“It’s mainly been driven by the growth of the Asia Pacific region and the demand for our food products and our education services which are viewed as higher quality goods in the region,” he says.
As the value of the dollar softens, Australian exports are expected to become increasingly price competitive against the currencies of Australia’s major trading partners.
Businesses in the food manufacturing sector are positioned well for the next five years, as Australia’s high food standards are attractive to foreign markets.
IBISWorld figures show revenue for Australia’s baby food manufacturing industry is forecast to grow by 2.9% per year over the next five years to reach $206.7 million. The dairy industry is also expected to grow, with revenue anticipated to grow by 2.1% to reach $12.8 billion.
The demand from south-east Asian markets is likely to be behind the dairy sector’s growth, with this a likely motivating factor in the current <a href="https://www.smartcompany.com.au/growth/economy/34058-bidding-war-emerges-between-saputo-and-bega-over-warrnambool-cheese-and-butter">bidding war for the Warrnambool Cheese and Butter Factory</a>.
Chia says overseas companies have twigged that Australia is in a favourable geographic position to Asia.
“They’ve realised we have an advantage in this sector because we’re so close to these countries where the middle class is booming and there is a great demand for our food services.”
Dairy Australia industry analyst John Droppert previously told SmartCompany dairy processors with exporting links are leading the market.
“At the moment there is tremendous growth in south-east Asia and this year the export story is very strong. There have been a few tough years for many of the key exporters, but there have been supply shortages in China this year and there have been exits among the smaller producers there, which is driving up commodity prices to levels we haven’t seen very often.”
The Australian education services sector, like the food sector, is considered to be of high quality in the Asian markets, and the sector is predicted by IBISWorld to grow at 3.7% over the coming years.
“International students are a major market for this sector, accounting for 24.9% of total enrolments this year,” IBISWorld general manager Karen Dobie said in a statement.
“Following annual growth of 7% prior to 2009, industry growth has cooled off somewhat because of the high Australian dollar, but the anticipated decline of the dollar in the next five years will boost enrolments from foreign students once again.”
While the education and food industries are already attracting demand from overseas, whether or not Australian beer companies are successful overseas is yet to be told.
Chia says beer manufacturers are expected to place an increased focus on exports, as sales in the local market have declined over the past five years.
“Faced with that stagnant or falling demand, particularly for the traditional brands, they’re looking to export markets for growth,” he says.
“They see there being more growth by going overseas. It’s too early to tell whether or not they’ll be successful, but brands like VB are seen as quintessentially Australian and people will pay a premium.”
Chia says one way businesses can succeed in <a href="https://www.smartcompany.com.au/leadership/strategy/31265-exporting-made-easy-a-guide-for-small-business-exporting-to-asia">expanding overseas</a> is to consider merging with a brand in that market.
“Looking at the legal services sector, this is a good case and point, there have been a lot of mergers recently which have seen business start to align themselves to different regions like the UK, US and Asia,” he says.
“A lot of that has been to take advantage of the push into the Asia Pacific region.”
This article first appeared on <a target="_blank" href="https://SmartCompany.com.au">SmartCompany</a>.
</body></html>

Australia’s top five exporting opportunities revealed

<html><body>
The growth in Australian average wages has slowed, in some sectors to the lowest rate since 2000, as the mining boom tapers off and the new government puts the squeeze on public servants.
According to the RBA’s Statement on Monetary Policy released yesterday, wages in the June quarter rose 0.7%, bringing yearly wage growth to 2.9%.
This is 0.75% below the average annual growth over the past decade, and while it’s been led by declines in mining and the public service, the slowdown has been broad based.
“Over the year to the June quarter, wage growth was below its decade average in all industries and the dispersion in wage growth across industries was at its lowest level since at least 1998,” the RBA <a href="https://www.rba.gov.au/publications/smp/2013/nov/pdf/price-wage-dev.pdf">said in its report</a>.
“Wage growth in the mining industry has slowed particularly sharply since the beginning of the year, consistent with the decline in the demand for labour in that industry.
“Wage growth in the business services sector (which accounts for around one-fifth of total employment) has also declined markedly, in part reflecting the decline in mining-related demand for business services, and has accounted for a large part of the slowing in aggregate wage growth over the past year.”
Wage growth slowed in all Australian states over the year. In New South Wales, Queensland and Tasmania, wage growth is the slowest it’s been since the early 2000s.
James Morley, a macroeconomist at the University of New South Wales, says slowing wage growth feeds into the RBA’s views about likely future inflation, and makes them less likely to raise interest rates.
But on its own, this isn’t necessarily good news for business, he said.
“Over the past decade, <a href="https://www.smartcompany.com.au/growth/economy/33195-meet-australia-s-most-cashed-up-people-wa-miners-win-the-wage-lottery">wages have grown faster than inflation</a>. You would expect that in a growing economy where workers are becoming more productive.
“The basic economic theory is that wage growth is related to productivity growth. So when you see declining wages, you could worry that it would reflect declining productivity growth, which isn’t good for anyone.
“That means real wages going up isn’t always a bad thing,” he says.
“But if it reflects inflation rather than productivity growth, that is a bad thing.”

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
 
</body></html>

Wage growth slows to lowest rate in decade: Why interest rates could stay low

<html><body>
More than a quarter of those aged 17 to 24 in Australia are not in full-time work or full-time study, according to a Council of Australian Governments (COAG) report released today.
In some states, like Queensland, South Australia and Tasmania, that figure edged closer to one in three. And among young people from disadvantaged backgrounds, that figure was above 40%.
The findings, gleaned from a report on education outcomes across Australia’s states and territories, reveal a difficult transition from school to employment.
The number of young people in full-time work or employment has declined 1.2% since COAG last looked at the issue in the relative boom-times of 2006. Even then, however, the figures showed 26.1% of young people in that age bracket were not in full-time work or education. Now 27.3% of Australia’s young people fit into this category, which the report states puts them at a greater risk of an insecure future.
The falling labour force participation by young people was partially offset in COAG’s figures by a rise in young people in full-time education. The proportion of 17 to 24 year olds engaged in full-time study increased from 28.6% in 2006 to 32% in 2011.
<a target="_blank" href="https://theconversation.com/coag-education-reports-show-early-childhood-and-year-12-are-key-19611">Speaking to The Conversation,</a> Greg Craven, deputy chairman of the COAG reform council and vice-chancellor at Australian Catholic University, said this was of concern.
“What happens to young people when they leave school is crucial to how we meet the future demands of our economy – and to the quality of their lives,” he said, crediting the worsening situation, in part, with the lingering effects of the global financial crisis.
The Australian Chamber of Commerce and Industry said the release highlights “the immediate need for a concerted effort by both state and national governments to boost youth employment and put skills development integrated with work for young Australians back on the national agenda”.
The employer body pointed to the <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/33180-Stop-cutting-apprenticeships,-industry-groups-tell-politicians">removal of government incentives around apprenticeships</a> as having caused a drop in apprenticeship numbers. “The apprenticeship has been neglected by government and needs to be revived so we do not create a lost generation of Australians who missed out on opportunities to develop skills that enable them to secure sustainable employment.”
Young unemployment is regularly higher than Australia’s overall unemployment rate. According to the <a target="_blank" href="https://www.theaustralian.com.au/national-affairs/high-rate-of-youth-unemployment-will-hurt-future-productivity/story-fn717l4s-1226733071548">Australian Bureau of Statistics figures</a>, which measure the number of young people 15 to 19 years old who are not studying and are actively looking for work, 25.5% of young people are unemployed. Total unemployment in Australia is 5.7%.
The issue of youth unemployment came up in the recent federal election campaign. The then-government considered forcing young job seekers into <a target="_blank" href="https://www.smh.com.au/national/alp-eyes-youth-dole-boot-camps-20130727-2qrmk">army-style youth boot camps</a> before giving them the dole, while the Liberal-National coalition went to the election with <a target="_blank" href="https://www.dailytelegraph.com.au/tony-abbotts-message-clean-up-your-acts-or-do-without-dole/story-e6freuy9-1226589493861">a policy</a> to suspend dole payments for those under 30 if unskilled work is available in their area.

<hr>
This article first appeared on <a target="_parent" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
 
</body></html>

Youth unemployment stats: one in four young Australians not in full-time work or study

<html><body>
Six small far-north Queensland-based steel manufacturers have come upon a novel solution to compete with the larger companies that dominate construction, mining and infrastructure in their area.
Recently, number of large projects in the area have gone to overseas companies to meet their steel capacity, despite this adding to the regulatory and management risk of projects. But currently, the six companies that formed joint venture Australian Steel Fabricators do not have the capacity to bid for the state's largest projects.
So, in Townsville yesterday, Industrial Laser Cutting, Total Fabricators, APG, Fitzroy Steel, Thomas Steel Fabricators, and Cairns Steel Fabricators announced a new joint venture, that'll see the six companies join together to bid and deliver major infrastructure projects in far-north Queensland.
“We've got major projects that are happening in our backyard, but are getting manufactured either overseas, or from some of the bigger southern companies,” Australian Steel Fabricators director Marcel McLeod said.
“We want to compete in that marketplace, so that's why we've come together.”
Coming up with the solution wasn't easy. The companies involved in the venture compete the rest of the time.
It took eight months from first approach to yesterday's launch. McLeod said a lot of the effort pre-launch went into building the relationship between the leaders of the firms, many of whom hadn't had much to do with each other before.
“We'd crossed paths at conferences and the like, but the relationship had to be built, and is still being built.”
A lot of time went into choosing the companies that would be involved in the joint venture.
“There's always a mindset that you are competitors. But when you're focused on the goal, and on the vision, the conversation itself is quite easy to have.
“In the past, there have been other attempts to get something happening along these lines, but that competitiveness... stepped in, and it didn't eventuate. We're one of the first companies to do this in this industry, and it does take a special group of people. You need common values, common goals and common interests.”
The way the joint venture will work is through having a director of each of the representative companies on the board, with an independent chairman. Australian Steel Fabricators will tender bids for major projects, but if it wins one, the parent companies best able to deliver the service will then form a new joint-venture specifically for that project. This is intended to resolve situations where not all the companies involved can commit to working on a particular project.
“We want to show companies it can be done,” McLeod says. “Competitors can come together for a larger cause.”

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

Six small Queensland steel manufacturers band together to compete for major projects

<html><body>
Australia’s wealthiest suburbs have been revealed.
According to a new Australian Bureau of Statistics publication, residents of Toorak in Melbourne’s inner-east made an average total income of $150,548 each from wages and salaries, investments, businesses, and superannuation.
Toorak was followed by three Sydney suburbs. Mosman residents were on $142,773 a pop, Double Bay/Bellevue Hill’s wage-earners took home $141,544 on average, while residents of Hunters Hill/Woolwich sat on $138,007.
Rounding out the top five wealthiest suburbs was Cottesloe in western Perth, where residents made $125,441 on average.
The report also broke down average incomes by state, finding that residents of the Australian Capital Territory had the highest incomes in Australia, with an average of $61,608 per annum.
This was followed by Western Australia where average incomes stood at $58,291, followed by the Northern Territory, with $54,794, with New South Wales close behind on $54,110 and Victorian residents on $51,398.
Residents of Queensland on average made $49,853, South Australians made $47,853, while Tasmanians made $44,018 on average.
Residents in Australia’s cities tended to record substantially higher incomes than those in regional Australia.
If metropolitan areas are stripped out, the highest-paid regional workers were those in the mining centres of Karratha and Port Hedland in Western Australia, who earned $86,826 and $86,079 on average.
Between 2005-6 and 2010-11, average incomes in Australia grew 4.9%.
Western Australia and the Northern Territory recorded the highest levels of income growth, with 6.7% and 5.3% growth respectively.
Incomes in Queensland and South Australia were just above the national average, both growing 5% per annum over the period.
Residents of the Australian Capital Territory and Tasmania saw their income grow at levels just below the national average – 4.8% per year and 4.7% per year on average.
 
<hr>
 This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
<img style="float: left;" alt="jc-insight" height="210" width="150" src="/images/stories/2013/10/30/jc-insight.jpg">PROPERTY INSIGHTS
<a href="https://www.propertyobserver.com.au/residential/income-correlates-to-prestige-house-price-with-mining-towns-the-major-abs-blow-ins/2013102965985?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=jonathanchancellor'spropertyinsights" title="Income correlates to prestige house price, with mining towns the major ABS blow-ins">Income correlates to prestige house price, with mining towns the major ABS blow-ins</a>
"The enduring global financial crisis fallout means many of these well-heeled residents aren’t actually any the wealthier from house price gains given the top end property market still hasn’t recovered."
</body></html>

Toorak tops list of country's wealthiest suburbs

<html><body>
This month’s widespread bushfires in New South Wales are likely to end up costing all Australians more in insurance premiums, an expert has warned.
Mark Sherris, a professor of Actuarial Studies at UNSW’s Australian School of Business, said that insurance premiums for homes and businesses have been rising steadily across all Australia over the past few years, and tend to rise even more in areas prone to disaster.
“Businesses and houses in bushfire-prone areas will see an increase in premiums because of this, as has been the case in previous disasters,” he says.
“Insurance companies take losses in times of disasters like this. Some will be covered by their reinsurance, but quite a bit will go towards reducing their profitability. That tends to encourage them to look at their premiums across their business, especially with high-risk areas.”
Even areas not directly at risk have seen higher premiums, because insurance companies try to average losses among all policyholders.
But insurers can differ widely in how they assess risk, which means savvy small businesses can avoid large premium increases by shopping around for the best deal, Sherris adds.
“There are always other alternatives you can look at, through comparison sites or by trying to book a policy online, for example.
“Also, it’s worth looking at the excess on the policy. Often you can limit your costs by agreeing to bear small claims, where you bear the first part of the loss, and then the insurers come in only after a certain point. That can make insurance much cheaper. So it might be worth re-examining your excess.”
Insurance rates in Australia have tended to increase by 5-10%, a figure well above the rate of inflation. In disaster-prone areas, some homeowners and businesses see increases of 30% per year, as happened recently to places burnt down in the Tasmanian bushfires.
Insurers have received around 900 claims to a value of more than $100 million in losses due to the bushfires sweeping across NSW, according to the Insurance Council of Australia. Many more claims are expected.
“Bushfires are a regular event in Australia major fires in the past producing significant losses of property,” Sherris says. “Although floods in recent years and other natural disasters, such as the Newcastle earthquake in 1989 and the Sydney Hailstorms in 1999 have been more substantial in terms of losses, bushfires are regular natural disaster events in Australia.”

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
</body></html>

NSW bushfires will result in insurance premium rise

<html><body>
“I ‘heart’ the Grattan Institute,” Peter Verwer told the room.
At a forum in Melbourne on Thursday night, the CEO of the Property Council of Australia said the Institute was thought-provoking and open to discussion. “But that’s where the good news ends.”
The forum was an opportunity to discuss the findings of <a href="https://www.smartcompany.com.au/finance/tax/34232-government-policies-favour-wealthy-property-owners">this week’s Grattan Institute report</a>, which found that many government policies did little to make housing more affordable for those who do not already own home.
The Institute invited along the body most likely to be critical of such a view. The match-up did not disappoint. Verwer and the report’s author, Grattan Institute Cities Program director Jane-Frances Kelly, clashed over many of the report’s key findings.
Verwer, who jokingly claimed he was at the forum representing “the dark side of the force”, took issue with the report’s claim that homeowners received a $36 billion subsidy from the government.
“That figure is a load of cobblers,” Verwer said. “The report moves from talking of theoretical taxes, then calls them subsidies, then outlays. There are no subsidies. But that line is fed to the media.”
Kelly, however, defended adding up the “generosity of the taxpayer”.
“The numbers are on government budget papers,” she said. “Sure they’re theoretical, but they are counted in the economic accounts.”
Both Verwer and Kelly agreed the tax system surrounding housing was badly designed, and both said the lack of housing supply was a crucial issue keeping home ownership out of the reach of many.
“The relationship between housing supply, economic growth and population grown has been moving out of sync,” Verwer said.
The warring duo also agreed that taxes like stamp duty made little sense, and discouraged people from selling up and moving homes to dwellings more in tune with their needs.
However, they clashed on the issue of negative gearing.
Kelly said that the policy, which allows investors to offset the loan repayments not covered by a rental income against their taxable income, acted to increase the demand for housing stock, pushing prices up, creating a “zero sum game” with taxpayers and those outside the housing market being the losers.
Verwer strongly disagreed, saying that negative gearing, while doing little to create new housing stock, did create new rental stock.
“The earnings from rent are not desirable,” he said. Faced with yields of around 4%, he argued, small and medium-sized investors needed negative gearing to make the ownership of rental stock desirable.
The tax break was used by small investors, he said, claiming that just 10% of those using negative gearing to minimise their tax earn more than $180,000 a year. Because of that deduction, there were 1.8 million homes available relatively cheaply for rent that would otherwise not be available.
“It’s not a monumental benefit anyway,” he said. “On the Grattan Institute’s numbers, it works out to $25 a week in most cases.
“Frankly, it’s the deal of the century [for the government]. If you didn’t have negative gearing, you’d have to invent it.”
But Kelly questioned whether having a high proportion of the population renting was a good thing.
For the past few decades, she said, home ownership had hovered around 70%. It’s only 68.5% overall now, she said, but the figure had plummeted among those under 45 and those on low incomes.
Today, a quarter of Australians rent. The median age of renters is 37.
Despite this, she said, there persisted an attitude that renters were layabouts and vagrants.
“The thought of renting as only a transitional thing is out-dated. People are renting further into their lifetime, and there are more children in rental households.”
Despite this, she said renters here have few rights, with Australia having some of the shortest lease terms in the world and the shortest mandated notice periods.
“Kids benefit from stability,” Kelly said. “And we restrict how much renters can have a sense of creating a home. Things like hanging up pictures, or having pets, are often not allowed.
“That’s the effect of this capital gains culture. We treat tenants almost as an accident of people using that investment instrument. But renters want to be treated with respect. They’re not just an income stream for real people living elsewhere.”

<hr>
This article first appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
 
</body></html>

The Property Council strikes back: negative gearing not just for the wealthy council claims

<html><body>
It’s been just over a year since Airbnb <a target="_blank" href="https://www.propertyobserver.com.au/https://www.smartcompany.com.au/growth/growth-strategy/airbnb-to-launch-australian-site-as-ashton-kutcher-buys-in/201106012776">first started operating in Australia</a>, and already it has generated $214 million in economic activity throughout Sydney from 30,480 guests, according to a BIS Shrapnel study released today.
The economic forecaster teamed up with Airbnb to scrutinise the impact of a year’s worth of visitors to Sydney.
<a target="_blank" href="https://www.smartcompany.com.au/technology/31943-taking-part-in-the-sharing-economy">Airbnb is an online marketplace</a> that connects people who have a spare room or empty house with those seeking a place to stay. One of the surprising things to come out of the study was that tourists who used Airbnb were far from cheap students unable to afford the standard hotel rate.
Instead, people who used Airbnb, an online marketplace that lets homeowners ‘rent out’ their room for a few nights to tourists, tended to be affluent, with 77% holding a university qualification and 75% coming from another country.
They weren’t young either. The average age of Airbnb users was 42, and 42% were visiting Sydney for the first time.
One of the effects of Airbnb’s growth has been a large tourist spend outside the areas where it’s traditionally goes to.
Four in five stayed outside the local tourist areas, and 98% of hosts suggested their guests visit local cafes, restaurants, bars and shops.
“Airbnb is helping more people see Sydney in a whole new light, by visiting new suburbs they may have never seen before," Airbnb Asia-Pacific Regional Director Ole Ruch said.
This is driving the tourist dollar to places it doesn’t traditionally go, an effect that’s strengthened by the high spend of the average Airbnb user.
According to BIS Shrapnel, Airbnb guests spend, on average, $1822 over the course of their trip, compared to the average tourist spend of $1071.
The major winners from Airbnb, apart from the hosts, were cafes, restaurants and bars, BIS Shrapnel economist Kurt Lemke said.
“Almost 30% of every dollar spent went towards those sorts of businesses.
“Following that, retail was the second largest winner – gaining a quarter of the total spend.”
Overall, the percentage of visitors to Sydney using Airbnb was very, very small. But comparing to other major cities that have had Airbnb for a number of years, such as Paris, the economic impact was far larger.
“The economic impact of Airbnb in Paris was ten-fold that of Sydney, and Sydney’s twice the size of Paris,” Lemke said. “We’re operating from a very low base here. There’s still a lot of room to grow.”

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

Airbnb generated $214 million in economic activity in first year: BIS Shrapnel

<html><body>
The Australian dollar hit a four-month high of $US0.9539 overnight, as the US debt ceiling approaches and credit ratings agency Fitch puts the US on a negative watch warning.
Tomorrow, the United States is scheduled to breach its debts ceiling, which would force the US Treasury to default on its debt.
This would have a dampening effect on the value of the US dollar, which would make the Australian dollar more expensive by comparison, UNSW economist James Morley said.
“An exchange rate back above 97 US cents for the Australian dollar is in theory possible – indeed, if there is a default, it is quite easy to imagine that the Aussie and greenback would hit parity once again.”
Since the start of September, the Australian dollar has appreciated nearly 6% against the greenback. A lot of this could be thanks to American policy, Morley says.
“We were in a situation where financial market expectations about Australian interest rates were the biggest driver of the Australian dollar, which had fallen about 20% off its peak last year.
“Now, however, US monetary policy is driving its rise again.”
But it’s not the only factor. The RBA has had an influence too.
“The RBA had been in an easing cycle, but expectations have shifted away from any further cuts,” Morley says. “The data out of China is stronger than expected, and the RBA is making sounds that they’re not going to ignore big increases in house prices if the economy is weak. They don’t want to fuel an asset-price boom.”
This morning, Fitch warned the US could lose its top-grade AAA credit rating.
"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a US default," Fitch said in a statement.
Morley says the ratings agency is reflecting the “very obvious”, but any move towards a downgrade by it is consequential, as it affects the borrowing costs for the US government.
Overnight, House Speaker and Republican Jon Boehner tried twice to get government funding bills through the lower house, but both bills failed to get enough support to pass.
White House spokesman <a rel="nofollow" href="https://www.reuters.com/article/2013/10/15/us-usa-fiscal-whitehouse-idUSBRE99E0PH20131015">Jay Carney said</a> while progress was being made, “we’re far from a deal at this point”.
An American default would have catastrophic global consequences, but Morley is expecting a deal at the last minute.
“There’s not a lot of incentive for Obama to negotiate at this point, as he’s not going to pay a political cost for what the public sees as a responsibility of Congress. The Republicans don’t want this on their hands, so they’ll leave it until the last moment to back down.”
The Australian dollar pulled back slightly this morning – at 11am, it was buying $US0.95.
<iframe src="https://cf.datawrapper.de/pxC7J/1/" frameborder="0" allowtransparency="true" allowfullscreen="allowfullscreen" webkitallowfullscreen="webkitallowfullscreen" mozallowfullscreen="mozallowfullscreen" oallowfullscreen="oallowfullscreen" msallowfullscreen="msallowfullscreen" width="450" height="300"></iframe>
 
<hr>
 
 
This article first appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
</body></html>

Dollar hits four-month high as Fitch puts USA on downgrade warning

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Joel Robinson

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

[smartcode_project:default project_id=139989 project_image_fid=350986]

The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

[smartcode_project:default project_id=139989 project_image_fid=359152]

The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

[smartcode_project:default project_id=134800 project_image_fid=370647]

The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

[smartcode_project:default project_id=134800 project_image_fid=372541]

The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

[smartcode_project:default project_id=134800 project_image_fid=351535]

Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

[smartcode_project:default project_id=135247 project_image_fid=262183]

Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

[smartcode_project_cta:default project_id=135247]

Myriam Robin

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News