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The 2014 property market kicked off powerfully, with clearance rates on the weekend in Melbourne and Sydney reaching the record-breaking heights recorded in spring last year.
Listing numbers started low for the first week of the season, but are predicted to pick up in the coming weeks.
Sydney recorded a clearance rate of 80.3%, while 73.6% of houses in Melbourne sold, according to Australian Property Monitors.
The numbers show a continuing of the confidence which typified the market in 2013.
APM senior economist Andrew Wilson told said the real strength of the market will be seen in the next few weeks when listing numbers skyrocket.
“As expected listing numbers were a little low, but there were some interesting trends in terms of where the market finished last year and where it started this year, there was a great similarity between the two,” he says.
“You expect the market to pick up where it left off last year. If anything I’d say Melbourne’s trend was down slightly, so it looks like it may have peaked in November.”
In Sydney, 95 properties were up for grabs over the weekend, while in Melbourne there were 72.
“There will be very big numbers in Sydney over the next two to three weeks,” Wilson says.
“In Sydney there will be about 30% more auctions than this time last year and in Melbourne it will be up around 20%. This reflects the confidence in the market and perhaps there are buyers who purchased properties in spring last year now putting their houses on the market.”
House prices boomed in 2013 and over the weekend the median value of homes for sale had increased significantly.
This time last year Sydney recorded a median auction house price of $585,000, while over the weekend that price has lifted to $825,000.
Melbourne had a similar story, with the median price of houses sold this weekend up more than $100,000 on 2013, increasing from $456,500 to $563,000.
The increase isn’t surprising considering data from RP Data-Rismark published last month revealed capital city house prices rose by almost 10% in 2013, the strongest growth in four years.
In Sydney the growth rate reached 14.5%, in Perth prices jumped 9.9% and in Melbourne they were up 8.5%.
Thanks to the price rises many first home buyers have been locked out of the market, although Wilson predicts they will eventually trickle back into the market.
“Looking at the median house price from this time last year, the average was up by about 20%... There are now some big barriers for first home buyers,” Wilson says.
“In Sydney and Melbourne there is no grant for established properties anymore… there is a longer wait in the queue and with the wavering economy and jobs growth moderating over the past year, that impacts upon people in their early career and consequently first home buyers.”
In 2014 <a target="_blank" href="https://www.smartcompany.com.au/finance/investment/35385-brisbane-to-boom-house-price-growth-to-slow-property-trends-for-2014">Brisbane has been tipped as a new property hot spot</a> and experts say this weekend’s clearance rate of 54.55%, according to APM, doesn’t accurately reflect the market.
“It doesn’t have the auctions culture that Melbourne and Sydney do, with lots of properties sold through private sale and the auction season differing from Melbourne and Sydney,” Wilson says.
“The mood is positive for Brisbane and it’s generating an investor buzz. The budget market in Brisbane will be the last to pick up, particularly in the outer northern suburbs of Brisbane because there is still an oversupply there.”
However, Wilson says the middle-market is up and running.
“Brisbane has strong yields, potential for capital growth and a rising rental market.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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Auction season kicks off: Melbourne and Sydney still strong, but Brisbane’s got buzz

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Property company The GPT Group has enlisted Popup Brands to reach the growing market of retailers looking for short-term commercial spaces.
The move is a sign of increasing acceptance of pop-up shops by landlords and commercial real estate agents, as they begin to embrace short-term leases to fill spaces.
Popup Brands is an online marketplace for listing and finding pop-up spaces, which can be leased for hours, days, weeks or months.
Popup Brands founder Marianella Watman said in a statement Popup Brands allows retailers to book spaces directly with landlords, without going through a middleman.
“This was tough for tenants until now, because there was no single place to look for short-term space so finding the right space for their brand took lots of legwork,” she says.
“Popups are a great way to provide shoppers with a constant flow of new experiences and offers. We also see the potential for big savings on traditional casual leasing expenses like brochures and print advertising.”
Founder of Instant Retail and Pop Up Shops Melbourne, Scott Williams, said landlords and commercial real estate agents are starting to realise pop-ups are a “win-win”.
“It means they get someone in their property again and there’s always the potential the person going in there could become a long-term tenant,” he says.
“The advantage to them is that the shop is open again. If it’s been vacant for a while they tend to fade into the background and it’s not noticed. If someone’s in there, the lights are on and people come and go, the neighbourhood notices it again and interest is sparked.”
Williams says commercial real estate agents are realising finding short-term occupants can quell the anxieties of landlords.
“Some of the commercial agents are seeing the potential in this because they can be under pressure from landlords to get a tenant in and having a pop-up shop is seen as being proactive in trying to find a tenant, plus some rent comes in,” he says.
Pop-up stores first began when Japanese fashion label Comme des Garçons opened a pop-up shop in 2004 in Berlin. Since then they’ve been growing in popularity around the globe and have the capacity to generate a buzz amongst consumers.
In November last year online marketplace <a target="_blank" href="https://www.smartcompany.com.au/marketing/796-online-sales/34766-etsy-launches-sydney-pop-up-shop">Etsy launched a pop-up shop</a> in Sydney in time for Christmas.
Williams says pop-up shops can be used by online retailers to offer a temporary permanent presence, but also have a variety of other purposes.
“They’re not just about holding sales, they’re also about testing the location, a demographic, trialing a new product or even the presentation of a shop,” he says.
“They’re appealing because retailers can do them at a low cost and fairly low commitment.”
Williams says how long the shop stays open depends on the motivation of the retailers.
“For quick sales the shop could be there for a few days to a week, but if they’re testing a location or product it may stay for a month or three months to get a feel for what they’re doing,” he says.
“If it’s longer than three months, I don’t consider it a pop-up shop anymore.”
Williams says pop-ups shops are likely to continue to grow in popularity.
“They’re becoming more mainstream for anyone wanting to do a sale, for online businesses, start-ups and just people wanting to test the waters of a market,” he says.
“A Sydney shopping centre has actually set aside space for a rotating pop-up shop section.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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Property group looks to pop-up retail tenants as short-term fix

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In 2013 the property market had a bumper season. House prices in major cities rose substantially, investors bolstered the Sydney market to new heights and clearance rates in Melbourne and Sydney returned to three-year highs.
The median house price in Sydney rose by 15.1% to $793,000 and in Melbourne the median price jumped 8.6% to $569,000, according to Australian Property Monitors (APM).
With house prices through the roof and predictions first home buyers are being locked out of the market by the skyrocketing values, 2014 is set to be an interesting year in property.
APM chief economist Andrew Wilson gave us his five predictions for 2014.
1. House price growth to slow
Sydney and Melbourne were the hot markets in 2013, but this is set to change in 2014.
Wilson says house price growth peaked in Melbourne and Sydney in the December quarter last year.
“Sydney reached record-level price growth rates, the best in 10 years, and was overall very high by historical standards, but economic headwinds are blowing against medium-term growth in house prices now,” he says.
“The lower dollar will impact inflation, wage growth has slowed and this will impact living standards.”
Wilson says the level of growth reached in 2013 will be difficult to sustain.
“Markets will start well, there is still a lot of energy in the market, but this will moderate and we’re looking at likely growth rates of about half of what was achieved in 2013 in Melbourne and Sydney,” he says.
“There is more pessimism than optimism about the New South Wales and Victorian economies. The Sydney market will also have issues to do with affordability because of low income growth.”
2. Brisbane and Perth – the new hotspots
While Melbourne and Sydney slow, Brisbane is tipped to bang.
“The Brisbane market is still in catch-up mode, but the Queensland economy is ramping up with regional centres recording growth. There will be an increase in job seekers in Queensland too, as they shift from Melbourne and Sydney where the jobless rate is higher,” Wilson says.
“Investors will be more interested in Brisbane real estate because of its potential for high yields and prospects of high capital growth.”
Wilson says the Adelaide market is resilient, despite there being issues with its local economy.
“It doesn’t have that volatility in the housing market, so modest growth of about 3% is expected. Canberra is a similar story with jobs being shed in the public service, so house price growth of around 3% to 5% is expected in 2014.
Hobart is starting to show some improvement in its property sector, so modest house price growth can be expected.
Wilson says Perth is tipped to perform well, continuing its strong run in the property sector with growth between 6% and 8% for 2014 predicted.
3. Clearance rates to moderate
The cause and effect between clearance rates and house price growth was observed in 2013, with strong clearance rates reflecting higher prices.
Wilson says one of the early signals of the market starting to moderate will be clearance rates falling back from high percentages in Melbourne and Sydney.
“I expect to see that as a forward indicator of moderating buyer activity. This will be apparent in the June quarter, rather than March and it will be interesting to see if they can be maintained in Sydney,” he says.
“Clearance rates started to fall away in November-December last year, but there was a lot of stock going into the market. With record levels of properties auctioned, this could have easily caused clearance rates to fall slightly, so we’ll see how it pans out over March.”
4. Suburbs to watch
Sydney’s prestige market had lagged behind the rest in 2013, but it’s expected to pick up pace in 2014.
“It started to pick up toward the end of the year and it will take advantage of that increased confidence,” Wilson says.
“Sydney’s northern shore and eastern suburbs will do well. Growth levels were modest in 2013 and there is room to grow there. If we see strong results from the sharemarket, the prestige market will keep bubbling along.”
In Melbourne, the expensive areas of the eastern suburbs were the best performers of 2013.
“The eastern suburbs have been the star performers of 2013, but there are questions as to whether they’ve reached affordability barriers,” he says.
“They still have some upsides like Sydney’s premium markets, but generally there will be a moderation of price growth. Declining numbers of first home buyers is also likely to impact the outer eastern suburbs.”
5. Owner-occupier versus investors
Each city has its own property market characteristics and in 2013 investors dominated the Sydney market, while owner-occupiers were more prevalent in Melbourne.
“In NSW there were record numbers of investors recorded by the Australian Bureau of Statistics,” Wilson says.
“But we have to be mindful of overshooting the rental market in Sydney and I question if there’s enough demand. We’re already seeing rents flat lining and vacancy rates start to rise.”
Wilson says this will put pressure on investors looking for cash flow.
“The only hook will be prices growth, but I think investors will start to look at Brisbane instead, and possibly Adelaide to a lesser extent.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
 
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Andrew Wilson's five property predictions for 2014

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Mobile payments company Square, founded by Twitter co-founder Jack Dorsey, is rumoured to be coming to Australia, potentially providing small businesses with an easy in-store payment solution.
Speculation started circulating earlier this month after a photo was posted on Twitter of Dorsey and Communications Minister Malcolm Turnbull, accompanied by the message “disruptive innovation soon to come to Aus”.
Since then sources have confirmed to The Australian Financial Review preparations have begun to launch the business down under.
The technology has been a success in the United States and should it enter the Australian market is expected to disrupt the banks and provide businesses with a cheaper and simpler solution to electronic payments.
Square allows businesses to accept electronic payments on their iPhones, iPads or Android devices through the attachment of a card reader.
It’s also created the Square Wallet, an app which allows people to pay at some US retailers by simply saying their name.
Pin Payments head of business development Chris Dahl told SmartCompany new players coming into the market help to drive innovation.
“It’s a good thing for Australian tech companies and also for Australian businesses. From our experience helping small and medium-sized businesses get online and start transacting quickly, this is effectively what Square will be able to do in the retail space,” he says.
“We help online business and Square is a clear alternative for the retail space. We think it’s great and we’ve been following its progress.”
Dahl says there are local competitors to Square such as Kounta, but more competition in the space is a good thing.
“Anything which helps businesses to not have to liaise with the banks is a good thing,” he says.
“Before solutions like Pin Payments, or in retail companies like Square, businesses had to go to one of the banks, approach their merchant team and explain the business. The bank would generally ask for a business plan and a transactional history and the process can take weeks to months.”
Dahl says online businesses frequently approach them after waiting months to set up a payment system with a bank.
“Banks are big organisations and for small-to-medium-sized businesses where they might not have a business plan completely fleshed out or have a transactional history, players like Pin and Square are filling that void,” he says.
In the past two years <a href="https://www.smartcompany.com.au/growth/economy/33127-the-future-of-payment-technology-new-systems-which-could-help-your-business">payment systems have started to develop rapidly</a>, as Australian businesses have pushed for innovation in the space.
In 2013 Pin Payments launched, Braintree came to Australia and PayPal launched new technology allowing businesses to accept payments via mobile phone and letting consumers order and pay on the go.
Speaking to the Australian Payments Clearing Association in 2012, Reserve Bank of Australia governor Glenn Stevens said elements of Australia’s payments infrastructure are “a bit dated”.
“It is very clear that both individuals and businesses are demanding greater immediacy and greater accessibility in all facets of their day-to-day activities,” Stevens said.
“This includes payments.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
 
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Square set to come to Australia, small retailers set to gain

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The slower sectors of Australia’s two speed economy are set to have a boost from the lower Australian dollar and rising wealth thanks to a strengthening property market and strong share price growth, according to a new report.
Despite 2013 being the worst year since the global financial crisis for retailers, tourism businesses, utilities companies and manufacturing firms, the Deloitte Access Economics December quarter Business Outlook report suggests these sectors will start to rebound in 2014.
But while some businesses are set to improve, a possible “construction cliff” and general market caution are predicted to threaten economic growth this year.
“Resource-related construction has peaked, and its fall from heady heights will hurt an Australian economy where businesses are already facing soft revenues and stagnant profits,” the report says.
“Add in continuing caution from corporates and families and the potential for modest federal government cutbacks to address a Budget black hole, and that backdrop for business should keep overall Australian economic growth a bit below trend through to late 2015.”
The budget deficit made headlines in 2013 and this is unlikely to change in 2014, with Deloitte Access Economics saying both sides of politics have contributed to the problem.
“A budget crisis? What a surprise. After all, both sides of politics promised they could sign on to vast new spending at the same time as they carried out a rapid surge back to surplus,” the report says.
“But don’t get lost in ‘who’s to blame?’ arguments. Both sides are, having spent a temporary boom on permanent promises. The focus needs to be on sensible repair. More effort should be on expenses, where the bulk of Canberra’s bodies are buried.”
Spending cuts of $25 billion a year are required to return the budget to surplus, according to the report.
“At around $25 billion a year, the new federal government doesn't have a mandate for the scale of cuts required to return the budget to health and the opposition (like the current government before it) is already succumbing to the temptation to oppose even sensible savings,” it says.
Deloitte Access Economics says it’s likely to take at least five years to reach surplus, while economic growth won’t return to above its trend rate of 3% until 2016.
The official interest rate is tipped to stay low in 2014, as jobs growth remains weak, but in 2015 it will start to climb higher.
“The global crisis led to an extraordinary response, with central banks opening the taps on cheap money. But 2014 will be the year in which money becomes less cheap, first with less money being ‘printed’, and then in 2015 as interest rates rise,” the report says.
Jobs growth in Australia is said to be “crawling” thanks to the weak economy and rapid pace of baby boomer retirement.
In 2014 this is expected to remain the same, as the construction cliff and Australian dollar remains at “job killing levels”.
Unemployment rates are expected to be limited though, as the retirement of baby boomers will keep unemployment from rising much above 6%.
Over the next five years the major source of economic growth is predicted to be resource exports, as liquefied natural gas, iron ore and coal projects are completed. But the decline in business investment will continue to slow economic growth.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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Property market strengthening but warnings of a possible "construction cliff": Deloitte Access Economics

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Western Australia has once again topped the states when it comes to driving the nation’s economic growth, despite the downturn in the mining boom.
The Northern Territory has <a target="_parent" href="https://www.smartcompany.com.au/finance/34215-wa-continues-to-lead-but-the-rest-of-australia-is-catching-up-state-of-the-states-report">leap-frogged the Australian Capital Territory</a> into second place, according to the latest CommSec State of the States report, further demonstrating the strength of the mining states.
Queensland and the ACT tied in third place, while New South Wales and Victoria also tied in fourth.
A significant gap then separates these states and South Australia, while Tasmania continues to lag behind the rest of the nation.
While WA is still on top, it came out first in only one of the eight criteria, compared to five categories in April 2012. However, it did manage to come second in a further six categories.
CommSec economist Savanth Sebastian told SmartCompany overall the resources states are strengthening.
“WA was front and centre in terms of growth. The income flow is now filtering through the economy and retail spending was particularly strong,” he says.
“The Northern Territory and Queensland were healthy in terms of business investment and this has been supported by lower interest rates, fostering a turnaround in the economies of these states.”
The NT’s main strengths include construction work, retail trade and dwelling starts, however it came in last place in the housing finance category.
“The resource states will dominate going forward in terms of an income boom. The mining boom isn’t tapering to the extent that it was once thought and even though it will taper the property boom will support the economy,” Sebastian says.
The ACT slipped to third place because of a loss of momentum in business investment, however it continues to perform well in the population growth criteria.
Sebastian says the biggest driver of the 2014 growth story will be the housing sector.
“Victoria remains about six to nine months behind what we’re seeing in NSW in the property market,” he says.
Tasmania came in last on all indicators, except housing finance where it placed sixth.
Sebastian says its main weakness is a stagnant population and a high unemployment rate, although all hope is not lost.
“In Tasmania the weaker currency will be beneficial in a broader sense. When you see a lift in housing activity, particularly when housing affordability is strong in the region, it can support a turnaround, so we could see some other sectors start to get some support,” he says.
CommSec predicts in 2014 growth in all states and territories should start to lift as consumers and businesses show a sustained level of optimism.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
 
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Resource states still fueling economic growth, while Tasmania continues to lag

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Online retail spending growth is slowing, as sales in the past month increased by only 0.3%, according to the latest NAB figures.
The low growth rate for the past three month is likely to have been caused by the lower Australian dollar, but experts suggest it’s only a “blip” in the broader scheme of online retail growth.
The NAB Online Retail Sales Index for October 2013 reveals online sales have increased by only 16% to $14.4 billion for the past 12 months, notably lower than the 26% year-on-year growth rate recorded this time last year.
Since this time last year, NAB figures reveal the value of online sales has increased by $2 billion.
The past three months have been particularly poor for online sales growth, with sales growth from traditional bricks-and-mortar retailers exceeding online retailers in October, recording rates of 0.5% and 0.3% respectively.
Growth of 0.3% was also recorded in September and in August NAB figures show online retail sales actually contracted by 0.2%
Retail Oasis director Nerida Jenkins told SmartCompany the slowdown in growth in the past few months has been influenced by the lower exchange rate.
“According to the RBA daily exchange rates, the dollar dropped below 90 in the first month of the last quarter, so the level of sensitivity around that currency drop kicked off the level of conservatism in online sales,” she says.
“Daily deals, fashion and electronic goods fared worst in this period, showing the more discretionary retail goods and international retailers were most affected by the lower exchange rate.”
Spend on international online retail goods contracted by 0.5% in October.
As the growth in online spending dips, so is the value of purchases consumers are making.
NAB analysis found 90% of all transactions made in the past year were for products under $100, with less than 3% of transactions to the value of $250 and just 0.2% of purchases were over $1000.
The average value of an online purchase has dropped from $64 in January 2010 to $41 in October 2013.
NAB chief economist Alan Oster said in a statement more people are looking to purchase low-cost goods online.
“Retailers are cutting prices to build sales volume, changes to shipping arrangements and a significant increase in people purchasing low-cost media products like eBooks, movies and music online are factors driving the lower transaction sizes,” he says.
“While areas like homes, appliances and fashion have seen declines in the average transaction size, the groceries and liquor, and personal and recreational goods sectors have experienced an upward trend since early 2010.”
NAB analysis also reveals domestic retailers now make up the dominant force in the online retail scape, accounting for 73% of businesses, up from around 50% three years ago.
Jenkins says online spend should pick up again in the next few months.
“People have started to settle into the lower exchange rate now. Consumer behaviour toward online is now maturing, but it’s not at an end,” she says.
“It will continue to grow in double digit figures, although perhaps at slower rates. Forces like the exchange rate and taxes will continue to act as short-term stimulants and detractors, but will not have much impact in the long term.”
This year online retailers have been pushing for the <a target="_blank" href="https://www.smartcompany.com.au/finance/tax/34727-gst-threshold-for-online-shopping-how-australia-stacks-up-compared-to-the-world">GST levy on overseas online goods to be lowered</a> from $1000 to $20.
Based on NAB’s retail figures, should the GST threshold be lowered to $25, this would yield revenue of $309 million.
Jenkins says this amount will not be enough to cover the administration costs.
“The level of administration to collect the tax will be higher,” she says.
National Online Retailers Association chief executive Paul Greenberg toldSmartCompany retailers need to “stop holding their breath about the GST and stop using it as a smokescreen for not innovating”.
“As an industry we’ve been waiting for some act of God which will give us some relief by levelling the playing field or a lower Australian dollar, but we’re deluding ourselves,” he says.
“We should stick to the three key pillars improving the technology of our business, looking at global opportunities and being customer-centric.”

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This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Experts suggest online sales slowdown is only a "blip"

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Australian retail turnover increased 0.5% in October, following a rise of 0.9% in September, according to the latest Australian Bureau of Statistics figures.
Turnover in the cafes, restaurants and takeaway food category recorded the biggest rise, jumping 1.2% for the month.
Food retailing in general increased 0.5%, while clothing, footwear and personal accessory retailing was also up 0.6%.
These gains were partially offset by a 0.3% fall in department store spending.
On a state basis, Tasmania and the Australian Capital Territory recorded the biggest gains, jumping 1.3% and 1.4% respectively.

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This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany</a>.
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Retail spending lifts in October

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The high clearance rates and double-digit house price growth being experienced in the property market is expected to moderate in the next few months, as experts say the market is unable to sustain momentum.
The final weekend of spring saw the highest number of property listings for the year to date, but clearance rates in Melbourne and Sydney were below the season’s strong average.
According to RP Data figures, 74.7% of houses sold over the weekend in Sydney, while Melbourne recorded a clearance rate of 69.2%.
There were more than 3400 homes up for grabs, with most of these located in Melbourne and Sydney.
Australian Property Monitors senior economist Andrew Wilson said it had been a record-breaking spring, but he doesn’t expect the momentum to be carried forward to 2014.
“We’ve had some extraordinary results throughout spring… it shows there has been a surge in sellers into the market to take advantage of the best-selling conditions in three to four years,” he says.
“I wouldn’t be surprised to see the clearance rates drop down a bit, as in the next few weeks there will be increased competition between sellers, so reserves might moderate a bit and there could be weaker price growth.”
In the last weeks of the year Sydney is expected to have around 1700 auctions and Melbourne will see up to 2700.
Wilson says people are making sure they settle before the end of the year when the market drops off until February.
“Clearance rates have flattened a little bit in recent weeks, but it’s been nothing dramatic in terms of decline… buyers have been spoilt for choice,” he says.
“While there is no real sign of creaking under the massive load, the tests do still remain. The question is, are there enough buyers to soak up properties at the rates we’ve seen this year? We should expect some moderation in clearance rates.”
While Sydney and Melbourne have performed strongly this year, the markets in Perth and Tasmania remain weak.
Over the weekend, 30.8% of houses sold in Tasmania, while 42.9% of homes in Perth were successfully shifted. In Brisbane homebuyers were deterred by heavy rain, seeing it record a clearance rate of 44.2%.
In Sydney and Melbourne, the current average time on the market for a house is 26 and 34 days respectively, according to RP Data.
Wilson says in 2014, high unemployment rates and broader economic concerns could hamper the property market.
“The economy is still mixed. Where the property market goes from the middle of next year will depend on where the economy goes,” he says.
“A lot of this year has been spent playing catch up and the Melbourne market is now just about back to where it was three years ago. We’ll have a solid start to the year, but Sydney can’t sustain the double figures prices growth of this year.”
According to APM, the most expensive property sold over the weekend was a four bedroom house in Port Melbourne which went for $5.175 million.
The cheapest property in Melbourne, a three bedroom unit in Seaford, sold for $247,000.
Across the year, the strongest performing Melbourne suburbs have been the outer and inner east, while in Sydney the inner west, south and north shore suburbs have done best.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
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Experts say property market is unable to sustain momentum

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Australians are set to work longer than they want to, often well into their 80s.
That’s the finding of a study released yesterday that predicts most baby boomers won’t have enough money for retirement.
The study, by Suncorp Superannuation, found a gap between when Australians would like to retire and when they will be able to afford to, with many still in the workforce a decade longer than they’d like.
The number of Australians working past the age of 55 has more than doubled in the past decade and Suncorp predicts in the next 10 years there will be a 52% increase in the number of people aged over 65 in the workforce.
In the next decade, 2.6 million Australians will need to work their entire lives out of financial necessity.
The research comes as this morning it was revealed an 80-year employee of Goldman Sachs, Alfred Feld, has died at age 98.
Feld had worked at Goldman Sachs for more than half of the firm’s history, starting in the mail room and then progressing to a stockbroker. As of 2008, Feld was still working three days a week and had managed money for three generations of some of America’s richest families.
In light of the greying of the working population, the Association of Superannuation Funds of Australia chief executive Pauline Vamos is pushing for Australians to take steps to boost their retirement savings.
“Making small changes can have a big impact on a person’s superannuation account balance in retirement,” Vamos said in a statement.
“Spending one hour today to look at ways to boost your super savings could save you hours of time working past the age you want to retire in the future.”
The ASFA recommends people consolidate their accounts, finding their lost super, make contact with their fund to ensure you’re getting the best possible service and simply save more.
The ASFA says there are billions of dollars in unclaimed super which can aid Australians in their retirement.
“If you have had more than one job, chances are you also have more than one super account. Moving all your super into one account can help you save on fees and will also make managing your super easier,” the ASFA says.
According to the Australian Bureau of Statistics, in the past decade the number of people working in their 70s, 80s and 90s has increased from 59,000 to 102,000 and this number is expected to continue to rise.
The Suncorp survey found 20% of baby boomers expect they’ll be working past the age of 75, while the majority want to retire between the ages of 55 and 70.
Almost 25% of Gen Y and Gen X respondents think they will be working into their twilight years.
Suncorp found overall only 3% of Australians wanted to retire after age 75, while in reality at least 23% of people will have to work into their 80s.
The chief executive of the Self-Managed Super Fund Professionals Association of Australia, Andrea Slattery, told SmartCompany SMSF holders need to ensure they seek specialised advice in order to get the best returns from their super.
“You need to then match the advice you’re given with what you want your future lifestyle to be and your objectives for retirement,” she says.
“It’s important to consider your investment strategy and see your investments as a way in which you prepare for your retirements.”
Slattery says understanding your investments is also crucial to achieving the best returns.
“You need to be aware of the risk and the performance returns of each investment. It’s really important for people to get specialised SMSF advice and for people to make an informed decision about the ways in which they want to save for retirement.”

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
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Australians could be forced to work into their 80s: How to get more from your superannuation

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

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Joel Robinson

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

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

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

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

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

Central Element is seeking approval for a significant residential redevelopment in Lavender Bay, lodging plans for a dual-tower apartment project that would deliver 163 new homes on a prominent site at the northern gateway to Milsons Point.

The Sydney-based builder-developer has lodged a concurrent rezoning proposal and State Significant Development Application for <a href="https://www.apartments.com.au/new-apartments/64-66-lavender-street-lavender-bay-nsw-2060">64-66 Lavender Street and 3-7 Middlemiss Street</a>, a 2,305 sqm amalgamated site currently occupied by a collection of ageing residential flat buildings.

Designed by SJB, the proposal would replace the existing 32 apartments with two residential towers rising 23 and 32 storeys, comprising 163 apartments including affordable housing managed by a community housing provider. The project forms part of the NSW Government's Housing Delivery Authority program and has been progressing through a fast-tracked state planning pathway since being endorsed for further assessment in 2025.

The proposal is one of the most significant redevelopment opportunities currently under consideration on Sydney's lower north shore, sitting between the high-density towers of Milsons Point and the lower-scale heritage fabric of Lavender Bay.

<img alt="Lavender Bay" data-entity-type="file" data-entity-uuid="93ecf0ee-487d-4292-afc4-0bc9579475d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.30.48%E2%80%AFAM.png?VersionId=PunU2ipMaTxiJcJ8NdMyUlWA7d98eNUb" />

The planning proposal seeks a substantial uplift from the current 12 metre height limit, which would only allow for a four-storey building, however the submission argues a scheme within these limits would not be&nbsp;economically feasible given the complexity of site amalgamation and would fail to maximise housing delivery on land located within walking distance of major transport infrastructure.

SJB said the design evolved significantly following discussions with the Department of Planning, Housing and Infrastructure and independent design review processes.&nbsp;Rather than pursuing a single larger tower, the architects adopted a two-tower approach aimed at reducing perceived bulk, preserving view corridors and creating greater permeability at ground level.

The northern tower would rise 23 storeys and contain 81 apartments, while the southern tower would reach 32 storeys and accommodate 82 apartments. Five basement levels would provide 174 car spaces, 181 bicycle spaces and 10 motorcycle spaces.

"The proposal for 3–7 Middlemiss Street and 64–66 Lavender Street is driven by a clear ambition to complete the Middlemiss Peninsula, delivering the final piece of a carefully evolving urban precinct," SJB noted in its design report.

"Positioned at the threshold between Lavender Bay and the North Sydney CBD, the development is envisioned as a unifying element—one that completes the skyline composition while providing a considered and harmonious transition between the peninsula’s established character and the intensity of the CBD beyond.

"Collectively, the development aspires to create a landmark that is generous, inclusive, and deeply connected to its setting, one that enhances the skyline, strengthens the public realm, and contributes to a more equitable and sustainable urban future."

Communal spaces would be distributed across multiple levels, including landscaped podium gardens, swimming pool facilities, barbecue areas and rooftop-style retreat spaces designed for residents. The proposal delivers more than 1,500 sqm of communal open space and nearly 400 sqm of indoor communal facilities.

<img alt="Central Element" data-entity-type="file" data-entity-uuid="0671c276-6dd8-4cfc-97b0-134a45d2c8cf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.30.17%E2%80%AFAM.png?VersionId=90D7lRaCTMTsFx92tIBrHlZcuaV_a4cw" />

A major focus of the planning assessment has been the project's relationship with surrounding public open spaces.

Clark Park, Bradfield Park and Wendy Whiteley's Secret Garden are among the lower north shore's most valued public landscapes, and overshadowing impacts have been closely examined through the design process. Central Element is proposing to also create a new public plaza and pocket park as part of the development.

Central Element has been developing across Sydney since 2010.

They have recently completed their Chatswood tower, Ethos Chatswood, as well as their luxury redevelopment of Coogee's landmark Ballamac House. They are currently selling Pearl Bondi, just seven high-end homes, while future plans include a tower on Hyde Park, and a boutique project in Neutral Bay.

Yolanda Redrup

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