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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

<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

Staff reporter

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