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GUEST OBSERVER
Wesfarmers’ decision to close or rebrand up to 167 of its 284 Target and Target Country stores should not come as too much of a surprise.
The once popular store has been ailing for years, outmanoeuvred by its successful and popular <a href="https://www.wesfarmers.com.au/our-businesses/kmart-group" target="_blank">sister business</a>, Kmart.
Up to 75 Target and Target Country stores will be closed, with the balance being converted to Kmart stores.
Its decline is due to a combination of poor market positioning, confusing product strategies, a declining middle class consumer market and too much similarity with Kmart. The impacts of COVID-19 are just the icing on the cake.
<h2>Spiralling sales and profit</h2>
Wesfarmers acquired both retail chains when it took over the Coles Group in 2007. At the time Target looked the stronger business, and Wesfarmers <a href="https://www.reuters.com/article/us-wesfarmers-coles/wesfarmers-plans-coles-investment-restructuring-idUSSYD11087920070816?sp=true" target="_blank">considered selling all or part of Kmart</a>, or converting stores to the Target brand.
Just as well it decided to invest in Kmart instead.
Since 2012, Target’s profits and sales have deteriorated with Target realising its first <a href="https://www.wesfarmers.com.au/docs/default-source/reports/2016-annual-report.pdf?sfvrsn=4" target="_blank">loss of A$195 million in 2016</a>.
How Target has performed since then has been obscured by Wesfarmers combining the business into a <a href="https://www.wesfarmers.com.au/docs/default-source/asx-announcements/2018-annual-report.pdf?sfvrsn=0" target="_blank">Department Stores Division</a> including Kmart and Kmart Tyre and Auto Service. Target’s results were thus no longer reported separately.
But Wesfarmers’ <a href="https://www.wesfarmers.com.au/docs/default-source/asx-announcements/2019-annual-report.pdf?sfvrsn=0" target="_blank">2019 annual report</a> noted its trading performance highlighted “the need for ongoing repositioning to further elevate quality and style, expand its digital capabilities, and differentiate the business from Kmart and other competitors”.
<h2>High couture and cheap kettles</h2>
One way Target confused shoppers was to offer collaborations with high-end fashion designers like Missoni, Stella McCartney, Dion Lee and <a href="https://insideretail.com.au/news/targets-next-designer-partnership-revealed-201511" target="_blank">Dannii Minogue</a>, alongside $2 kids’ tops and <a href="http://www.target-catalogue.com/target-catalogue-february-2015-back-to-school/" target="_blank">cheap kitchenware</a>.
The move frustrated customers unable to secure designer pieces and disenfranchised “value-seeking” customers. Many voted with their wallets, moving to Kmart.
Wesfarmers’ <a href="https://insideretail.com.au/news/wesfarmers-to-reposition-target-cuts-head-office-roles-201908" target="_blank">plans to differentiate Target</a> from Kmart involved focusing on higher quality apparel, soft homewares and toys to compete against more specialty and middle market offerings.
But the middle market is a challenging sector. It is now dominated by “fast fashion” players offering on-trend clothing and home furnishing. The pressures have led to the collapse of other middle market chains.
Wesfarmers was very aware of the risks associated with this strategy.
Its 2017 <a href="https://www.wesfarmers.com.au/docs/default-source/default-document-library/2017-annual-report.pdf?sfvrsn=0" target="_blank">annual report</a> stated:
“Target’s strategy has been reset and the business is now focused on progressing changes to the operating model to better position the business to grow earnings into the future. This journey will be undertaken in an increasingly competitive apparel and general merchandise environment”.
<h2>Death of department stores</h2>
The attempted shift in focus to a middle market department store only created more problems.
Department stores worldwide have faced challenging times in recent years. The past year alone has seen department store icons including Barney’s, Debenhams and JCPenney <a href="https://www.forbes.com/sites/laurendebter/2020/05/14/jcpenney-bankruptcy-protection-coronavirus/#5c84870521c8" target="_blank">file for bankruptcy or close for good</a>. Closer to home, Harris Scarfe <a href="https://www.afr.com/companies/retail/fallen-icon-the-undoing-of-harris-scarfe-20200109-p53q7j" target="_blank">went into receivership</a> in December 2019, while Myer and David Jones <a href="https://10daily.com.au/news/australia/a190829aclgz/david-jones-to-shrink-stores-as-profits-fall-20190830" target="_blank">have looked to consolidate stores</a>.
Department stores face many challenges from competition and changing consumer behaviour. However, a broader challenge is a <a href="https://www.oecd.org/social/under-pressure-the-squeezed-middle-class-689afed1-en.htm" target="_blank">declining middle class</a> that has been the cornerstone of the sector’s customer base.
Target’s strategy to move further into the middle market was always doomed for limited success.
<h2>Pandemic impacts</h2>
Adding to department store woes is the COVID-19 pandemic.
Already reeling from a <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-02-06/retail-sales-december/11937224" target="_blank">weak Christmas period</a> and the effects of the bushfires, retailers were hoping for a return to spending. Instead, they have been faced with store closures and possibly permanent shifts in consumer behaviour.
While some retailers have simply tried to survive the lockdowns, others are <a href="https://insideretail.com.au/news/ive-spoken-to-dozens-of-retail-execs-in-the-last-two-weeks-heres-what-i-learned-202004" target="_blank">re-evaluating their future</a>. For Wesfarmers, this means shifting focus from the struggling Target to the more popular and profitable Kmart.
But though the pandemic has undoubtedly had an unprecedented and substantial impact on the retail industry, in some cases it only accelerating outcomes already on the cards.
So Target is unlikely to be the last retailer to undergo radical surgery. Retailers like the <a href="https://www.smh.com.au/business/companies/hype-dc-platypus-owner-to-shut-stores-after-big-leap-in-online-sales-20200427-p54ni0" target="_blank">Accent Group</a> and <a href="https://insideretail.com.au/news/pas-group-may-shutter-underperforming-stores-in-restructure-202004" target="_blank">PAS Group</a> have flagged similar plans.
Expect further announcements as retailers evaluate how to survive.<img src="https://counter.theconversation.com/content/139205/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/jason-pallant-8729" target="_blank">Jason Pallant</a>, Lecturer of Marketing, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767" target="_blank">Swinburne University of Technology</a> and <a href="https://theconversation.com/profiles/gary-mortimer-1322" target="_blank">Gary Mortimer</a>, Professor of Marketing and Consumer Behaviour, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/dont-blame-covid-19-targets-decline-is-part-of-a-deeper-trend-139205" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Don’t blame COVID-19: Target’s decline is part of a deeper trend

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GUEST OBSERVATION
It’s sad times for public universities as they fight for their survival. Most are reeling from a severe financial hit due to the loss of international students.
Universities are <a href="https://www.universitiesaustralia.edu.au/media-item/investment-in-university-research-an-investment-in-covid-19-recovery" target="_blank">estimated to lose</a> around A$3-4.6 billion in revenue from international student fees in 2020 alone, and more in 2021.
The government has locked universities out of JobKeeper – its COVID-19 wage subsidy scheme – despite the fact the sector is <a href="https://www.universitiesaustralia.edu.au/media-item/investment-in-university-research-an-investment-in-covid-19-recovery" target="_blank">projected to lose around 21,000 jobs</a>, of which 7,000 are estimated to be research-related.
International onshore <a href="https://www.propertyobserver.com.au/https://docs.education.gov.au/node/53363" target="_blank">student revenue</a> was, as a share of all universities’ revenue, 26.2% on average in 2018, just shy of A$9 billion. For some universities, the dependency on international students is even greater, at around 30-40%.
Many in the government criticise universities for relying so heavily on international students for revenue. For instance, <a href="https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansards/e82a8a20-f72d-41d5-90fb-806930fffbba/&amp;sid=0178" target="_blank">Senator James Paterson recently</a> told the Senate:
Over the last few decades our universities have bet big on the international-student dollar. Their institutions have boomed from what has been a very lucrative business, but they have become badly overexposed […] Universities argue they have pursued this market by necessity. They argue insufficient government funding pushed them down this path. It’s a convenient story that attempts to absolve universities of responsibility for the decisions they have made, and it is a false one.
But such views are false. And they ignore the history of international students from Asia studying in our universities.
<h2>A history of international education</h2>
In 1923, Sydney University accepted its first Chinese overseas student, N.Y. Shah from Wuhan, who was studying to become a teacher back in China.
From the 1950s, children of Chinese diaspora parents from countries such as Indonesia, Singapore, Malaysia and Hong Kong began to arrive in Australia to study.
This rarely mentioned cohort of private overseas students studied alongside students supported by the well-known Colombo Plan – an intergovernmental effort to strengthen economic and social development of member countries in the Asia-Pacific region.
In fact, so prominent was the Colombo Plan’s efforts in bringing students to study in Australia, it is still incorrectly believed to be the first major source of overseas students.
Historian <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/10314610708601233" target="_blank">Lyndon Megarrity estimates</a> the Colombo Plan brought less than one-fifth of overseas students to Australia in the 1950s and 1960s. The vast majority came as private overseas students.
They went to Australian schools, sat for university matriculation and for those who passed, proceeded to university either funded by the generous Commonwealth scholarship scheme or by paying substantially subsidised university fees, just like Australian citizens.
By 1966, archival research shows private overseas students constituted 8.9% of full-time university enrolments and their numbers were growing. Immigration restrictions were also loosened to mean citizenship was available to private overseas students who had lived in Australia for at least five years.
Most met the conditions after attending two years of high school and the three year minimum for a degree.
While some stayed, of those I interviewed for a UNSW survey of overseas students who studied at the university in the 1950s and 1960s, it seems most returned to their home countries where an Australian university degree promised excellent career prospects.
There was obviously something about Australian education and society that appealed to our Asian neighbours, and pulled them to Australia where they lived for five years and more.
<h2>An unofficial government policy</h2>
In 1990 the Australian government introduced full fees for all international students. John Dawkins, the then Minister for Employment, Education and Training, saw an opportunity to establish university education as an export industry.
The year 1990 is significant because the Australian government was in the process of implementing the Dawkins reforms which reorganised the once diversified public higher education sector into a single national system.
The aim of the Dawkins reforms was to encourage more Australian school leavers to attend university and, on graduation, become part of a highly-skilled and educated national workforce.
To help fund this vastly expanded system and rein in costs, the government introduced HECS. Students could postpone subsidised and interest-free fees until their salary reached a certain level when they would repay the loan through the taxation system.
International student fees at this stage were not a significant source of university income. But they became so from the early 2000s after a decade of reduced government funding and a significant expansion of local student numbers.
Since government funding no longer covered the full costs of expensive research or the strong growth in domestic students, universities had to find funds from elsewhere.
It can be said that international student fees have become an unofficial part of the funding policy of consecutive federal governments.
Government actions and inactions that led to such a reliance on international fee income have created a system that challenges a belief many of us hold dear – public universities should be able to draw on public funds for their operations.
Where in 1989 universities derived more than 80% of their operating costs from the public purse, now it is estimated to be less than 40% – a figure well below the OECD average for public investment in tertiary education.
<h2>Where to from here</h2>
Since the 2000s, the shortfall has been largely made up by international student fees which have enabled universities to punch above their weight. On a population parity basis we have <a href="https://www.dreducation.com/top-500-world-class-universities-rankings" target="_blank">more universities </a> in the world’s top 500 (by some metrics) than Canada, the United Kingdom and United States.
And 2018 figures show we have some of the highest participation rates of school leavers in the world, at least 30% higher than is the case in the United Kingdom. 
Our universities also contribute enormously to national research and development – international student fees help sustain this. The <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8111.0" target="_blank">Australian Bureau of Statistics</a> confirmed this week more than half of the A$12 billion universities invest in research each year comes from a pool of funds that relies on international student fees.
International students, however, should not simply be measured by the fees they pay. Evidence shows while here, students contribute to the well-being of Australians by fuelling economic growth and prosperity that provides jobs for Australians.
University doctoral students and postdoctoral fellows are a large component of Australia’s research and development workforce. International students make up <a href="https://www.science.org.au/covid19/research-workforce" target="_blank">37% of this vital group</a>, working on important projects like breeding drought resilient crops, developing cures for diseases like COVID-19, and world-leading efficient solar and plastic recycling technology.
Some international students remain in Australia as our largest single source of skilled migrants. Others return to their home country to become leaders in business, politics and cultural industries with a respect and appreciation of Australian culture. We should nurture this good will, not trash it.
This essay is based on an episode of the University of Technology Sydney podcast series “<a href="https://www.uts.edu.au/partners-and-community/initiatives/impact-studios/projects/new-social-contract-podcast" target="_blank">The New Social Contract</a>”. The audio series examines how the relationship between universities, the state and the public might be reshaped as we live through this global pandemic.
The next article linked to the podcast will look at universities and the climate.
<a href="https://player.whooshkaa.com/episode?id=649529" target="_blank">Context of the Crisis</a> was made by <a href="https://www.uts.edu.au/partners-and-community/initiatives/impact-studios/about-us" target="_blank">Impact Studios</a> at the University of Technology, Sydney - an audio production house combining academic research and audio storytelling.<img src="https://counter.theconversation.com/content/138796/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/julia-horne-16152" target="_blank">Julia Horne</a>, University Historian and Principal Research Fellow, History, <a href="https://theconversation.com/institutions/university-of-sydney-841" target="_blank">University of Sydney</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-universities-came-to-rely-on-international-students-138796" target="_blank">original article</a>.
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How universities came to rely on international students 

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Receivers have been appointed to IPO Wealth Holdings, a Mayfair 101 entity.
The receivers were appointed on May 22 after <a href="https://www.mayfair101.com/post/ipo-wealth-fund-update" target="_blank">IPO Wealth Holdings</a> missed two repayments totalling almost $3 million.
The payments were due a week earlier, according to the fund's trustee, Vasco.
“We have received no communication from the borrower as to why these payments were not made despite a number of attempts to contact them,” Vasco said in an update to investors.
But Mayfair have advised its considered it "a premature and imprudent measure by Vasco given the current economic conditions imposed by COVID-19, and one that is likely to result in the unfortunate and unnecessary destruction of value for investors in the IPO Wealth Fund."
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It advised Vasco Trustees Limited appointed receivers without the consultation of the investment manager, IPO Wealth Pty Ltd, and no attempts were made to understand the steps that are currently being undertaken by the Mayfair 101 Group to protect its investors and portfolio companies."
"No attempts were made by Vasco to contact the Group in the week leading up to the appointment of receivers. Furthermore, no response was received to an email sent to Vasco’s managing director, Craig Dunstan, on Wednesday 20 May 2020 advising that the Group was working on initiatives with its various advisers regarding restructuring to improve liquidity for the benefit of the fund’s investors."
It advised the group "has been working with top-tier restructuring experts and its panel of advisers to assist with the preservation of value for the benefit of the group’s investors.
"It is therefore immensely disappointing that the IPO Wealth Fund’s trustee has made this decision and compounded the already significant detrimental impact of ASIC’s actions on the Group and its many loyal investors.:
IPO Wealth Holdings Pty Ltd and its subsidiaries are cooperating with the receivers as required, it advised.
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Company searches show IPO Wealth Holdings’ sole director is James Mawhinney, Mayfair 101’s founder.
The receivership is the latest issue for Mayfair 101, which has suspended contracted property purchases for its proposed tourism project in North Queensland.
The investment group Mayfair 101 had mooted a $1.6 billion spend on the Cassowary Coast over the next 15 years after the group's initial purchase of the Dunk Island Resort.
The Australian Securities and Investments Commission has recently alleged misleading advertising for Mayfair Platinum products.
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The AFR reported the IPO Wealth fund started in 2017.
It makes a loan to another Mayfair entity which in turn made investments in portfolio companies.
 
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Receivers appointed by fund trustee to IPO Wealth Holdings, a Mayfair 101 entity

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The cheapest sale across the capital cities was $295,000 when a one bedroom Maidstone apartment was sold.

The 46/17 Eucalyptus Drive apartment (pictured above), eight kms north west of Melbourne's CBD, had previously sold at $355,000 in 2011.

It has been listed with a $320,000 to $350,000 price guide.

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The dearest weekend sale was a three-bedroom house on Florida Road in Palm Beach sold under the hammer for $4.35 million, beating the reserve by $350,000.

The Ray White agents had nine contracts out before the auction with four registered bidders on the day.

<img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/25/brighton%20east.jpg">

Melbourne's top sale was $2,415,000 for the five bedroom home at 4 Mayors Crescent, Brighton East (pictured above).

There were 234 auctions scheduled in Sydney on Saturday.

Domain Group had recorded a preliminary clearance rate of 66 per cent from 168 reported results.

There were 102 auctions scheduled in Melbourne on Saturday.

Domain Group had Melbourne recorded a 70 per cent preliminary clearance rate of per cent from 72 reported results.

<a href="https://www.propertyobserver.com.au/images/2020/5/25/corelogic%201.jpg" target="_blank">Click here </a>to enlarge:

<img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/25/corelogic%201.jpg">

Source: CoreLogic

Latest <a href="https://www.realestate.com.au/auction-results/" rel="noopener noreferrer" target="_blank">realestate.com.au auction data</a> from 145 published results shows New South Wales had a clearance rate of 66 percent for the week to date, while Victoria’s preliminary clearance rate stands at 71 percent.

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The NSW clearance rate has been at 66 percent in recent weeks, up from about 40 percent across most of April.

Victoria had 139 scheduled auctions for the week, with the results from 78 published results.

Queensland's 41 results reflected a 59 percent success rate.

Just 26 results in the ACT saw a 73 percent clearance rate.

<a href="https://www.propertyobserver.com.au/images/2020/5/25/corelogic%202.png" target="_blank">Click here</a> to enlarge: 

 <img alt="" src="https://www.urban.com.au/images/2020/5/25/corelogic%202.png">

Source: CoreLogic
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$60,000 loss taken on Melbourne apartment, as weekend auction results improve 

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An innovative new app, Break Your Lease, created by an Australian entrepreneur and software developer was launched internationally on May 22, 2020.
The app has gained immediate world-wide attention, being one of only a few to appear on the ‘Feature’ section in the App Store.
Developed by Richard Saville, Break Your Lease, offers users a unique opportunity to easily leave their commercial or residential leases, by finding suitable and instant replacements.
The app is changing the property game, filling a sizeable gap in the market and creating an industry where users can now break a lease globally. 
Mr Saville said the app will offer people who are struggling to pay their leases an ‘easy out’ and the ability to forgo the costly process of breaking a lease.  
“The app will be of great benefit to people looking to leave their lease, as well as those seeking a new one quickly, and landlords who won’t need to contend with broken leases,” said Mr Saville.
The launch of the app is particularly timely due to the rising unemployment figures resulting from COVID-19, which are putting increased strain on peoples’ ability to pay their leases. 
Mr Saville’s idea for the practical, user-friendly app came last year and he’s taken Break Your Lease from conceptualisation to a launchable product.  
Users will be able to register a lease they want to leave, free for the first month after the app’s launch, with registrations listed after this time costing $40 for residential leases, and $70 for commercial leases. 
The app will launch on the Australian and New Zealand app store this week and available in the US and UK in June.
In August the app will expand to include services for other types of leases including cars, bikes, jet skis, boats etc.  
Due to the originality of the concept Mr Saville has secured a world-wide patent for the app.
The app has been available since May 22, 2020. 
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App launched helping tenants break a lease with no implications

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The Minister for Industrial Relations Christian Porter has reportedly intervened to ensure the workplace safety watchdog dumped strict rules on social distancing in lifts.
Porter feared long and costly bottlenecks would occur in office towers as the country goes back to work.
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It is claimed the revised Safe Work Australia guidelines were released were safe, but practical.
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Porter said he had raised the issue with the agency, but it was a matter for Safe Work to rule on, Nine Entertainment's AFR reported.
"Ultimately it is a matter for Safe Work Australia to determine the appropriate guidance to provide to industry. Neither the government, nor I as minister, can change that guidance."
<div class="_1bH_l" data-experiment-target="relatedStory">"I’m advised that the chief health officers from all states and territories reported that they were comfortable with the updated advice."</div>
The agency reversed its guidelines on Wednesday.
Workers in lifts should still maintain their distance and avoid touching other people in lifts, a Safe Work Australia spokeswoman said on Thursday.
"If a lift is full based on the advised passenger limits, workers should wait for the next lift," she said.
"If they need to cough or sneeze during a lift journey they must do so into their arm or a clean tissue. They should wash their hands, or where this is not possible, use appropriate hand sanitiser, after exiting the lift, particularly if they touched lift buttons, rails or doors, and not attend work if they are unwell."
It has been previously reported physical distancing rules could force workers in Australia Square Tower to wait as long as three hours to get up and down the landmark building at the start and end of the day, as the 1.5-metre requirement allows no more than two people in its lifts at the same time.
 
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Safe Work Australia dumps 1.5m social distancing for office lifts

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Sydney house prices could fall by as much as 15 per cent next year, while Melbourne could see a 17 per cent drop, according to an HSBC analysis.
Australian house prices could tumble 12 per cent in 2021, as a U-shaped recovery and COVID-19-related policies take their toll, Paul Bloxham, chief economist at HSBC, suggests.
However this year, the gains already accumulated before the pandemic will offset the decline in prices expected in the second half.
Nationally, prices could end 6 per cent higher, with Sydney up as much as 9 per cent and Melbourne as much as 7 per cent higher.
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Bloxham predicts stalled migration and rising unemployment were likely to drive housing oversupply.
However Bloxham said low interest rates would work to make the housing market attractive to borrowers.
<div>The overall impact, Mr Bloxham said, was that national housing prices will fall between 2 per cent and 12 per cent in the 2021 financial year.</div>
The drop could even be deeper if the economic recovery was an “L” or “W” shape.
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Next year Sydney prices could fall between 5 per cent to 15 per cent, with Melbourne dropping by 7 per cent to 17 per cent.
The analysis was by HSBC's chief economist, Paul Bloxham, and colleague Daniel Smith.
"Forecasting housing prices is difficult at the best of times, but at the moment it is particularly challenging," they wrote.
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<div id="adspot-320x360_320x120_320x50_300x250_300x50-pos2-mobile"> "We expect larger declines in housing prices in Sydney and Melbourne than in Australia's other cities, given greater reliance in these cities on migration and foreign students, which have stalled as a result of border closures."</div>
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Sydney house prices could fall by 15 per cent, and Melbourne 17 per cent drop next year: HSBC

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More than a dozen lenders are offering cash incentives for home owners willing to move their business to a new lender, with Suncorp Bank, Reduce Home Loans and 86 400 the latest, according to RateCity.
Suncorp Bank is now offering up to $3,000 to refinancers, plus an additional $1,000 for people working in essential services roles, such as doctors, nurses, teachers and police officers.
A total of 13 banks currently have cashbacks on offer, including three of the big four banks – CBA, Westpac and ANZ.
<img src="https://www.urban.com.au/images/2020/5/21/RATECITY%201.JPG" alt="">
RateCity.com.au crunched the numbers based on someone refinancing their loan with $400,000 remaining to see whether they would be ahead or behind after picking a cashback special over one of the lowest rates in the market. 
<img src="https://www.urban.com.au/images/2020/5/21/RATECITY%202.JPG" alt="">
Sally Tindall, research director at RateCity.com.au, said while low rate loans were usually more cost effective, the tide was turning as the bigger banks chase after new customers more aggressively.
“Cashback specials are nothing new. They’ve been used for years as a clever marketing tool to grab people’s attention. What’s changed is the banks are starting to offer cashback on loans that also have competitive rates,” she said.
“Someone who refinances every couple of years to a competitively priced loan could potentially come out on top by taking up a cashback special."
“However, over the long term it’s a completely different story. A low rate is almost certainly going to trump a one-off perk over 10 or 20 years – often by tens of thousands of dollars."
“While the promise of cold hard cash is hugely attractive for anyone juggling the bills, people who put the money back into their mortgage will see even bigger savings as it will reduce their interest charges every single day," she concluded.
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Three of the Big Four banks now offering home loan cash backs

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There are 472 capital city auctions being tracked by CoreLogic this week, increasing on the 417 auctions last week.
CoreLogic data shows that while volumes are up over the week, auction activity remains significantly lower than what we would usually see, with 2,055 auctions held over the same week one year ago.
<img src="https://www.urban.com.au/images/2020/5/21/CL%20MAY%2021.JPG" alt="">
Sydney is expected to be the busiest auction market for yet another week, with 245 homes scheduled to go under the hammer this week, up on the 194 auctions last week.
There are 123 Melbourne homes scheduled for auction this week, down by only 4 auctions on last week’s final numbers.
Auction activity remains subdued across the smaller cities, with Brisbane &amp; Perth the only capital cities set to see an increase in volumes, with activity across Canberra expected to remain steady over the week and quite a bit lower in Adelaide.
Tasmania has just 2 auctions scheduled this week.
<img src="https://www.urban.com.au/images/2020/5/21/30%20birch.JPG" alt="">
An example of Sydney's auction volume is <a href="https://www.realestate.com.au/property-house-nsw-birchgrove-133456446" target="_blank">30 Rose Street, Birchgrove</a> (pictured above).
The three bedroom one bathroom townhouse sits on a 208 sqm block.
It comes with an auction price guide of $2,000,000 - $2,200,000.
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Auction volumes rising again as clearance rates stabilise

Doomsday house price forecasts are highly questionable: REIA's Adrian Kelly

Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Staff reporter

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