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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

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

Joel Robinson

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.

The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.

The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.

<img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" />

Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.

Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.

The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.

"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.

"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.

"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."

Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

Staff reporter

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