<html><body>
The automotive, manufacturing, printing and retail sectors are being impacted most severely by tough economic conditions, according to some of Australia’s leading lenders.
A Grant Thornton survey of business finance lenders from 22 financial institutions Australia-wide revealed prolonged slow growth in Australia, outside of mining, was the primary difficulty impacting businesses.
Some 84% of respondents identified slow growth as having the most impact on businesses, while 77% also reported the slowdown in China’s growth as a key factor and 69% said businesses were being hurt by the Australian dollar exchange rate.
Grant Thornton national head of recovery and reorganisation Matt Byrnes said manufacturing and automotive businesses are under pressure from high cost bases and the challenge of tapping into export markets.
“We always encourage businesses in these sectors to have an export arm, as well as a local market, but the high Australian dollar has made exporting difficult,” he says.
“We’re also going to see a continuing of tough times for printing. I think the volume of printing is falling in a real sense and the cost to compete in that industry is also becoming higher.”
Byrnes says in retail it’s the top-end retailers which are doing it tough, as well as the single stores on high streets.
“We’re seeing a lot of stress thanks to high property values,” he says.
Retailers such as <a href="https://www.smartcompany.com.au/growth/32260-lisa-ho-folds--as-administrators-are-unable-to-find-a-buyer-for-the-iconic-brand">Lisa Ho</a> and <a href="https://www.smartcompany.com.au/growth/economy/32958-family-owned-menswear-business-founded-in-1936-collapses-with--6-million-turnover">Blowes Menswear</a> have collapsed this year.
Of the respondents, 30% expected default levels to increase in the next 12 months, and 23% expected corporate failures to increase. Sixty-three per cent of lenders expected the number of insolvencies to remain the same.
As a whole, the report revealed banks are more likely to work with businesses to try and overcome financial difficulties, than initiate formal insolvency.
The respondents said the key to success in difficult trading conditions is good management.
Ninety-one per cent of respondents said the highest contribution to financial distress was poor management decisions and 86% found poor financial controls also contributed to the failure of a business.
Byrnes says a strong management team ensures the right structures are in place within a business, employees are in the right roles and makes sure financial reports are given to management in a timely, regular manner.
“In many businesses which are struggling, they do not have these characteristics. Poor management and poor systems leads to poor decisions,” he says.
Other major reasons for businesses encountering financial distress included issues managing working capital, decline in revenues, an inappropriate business model and rising costs.
More than 50% of respondents’ borrowers had attempted to solve their business’s financial woes by implementing cost cutting programmes and reducing staff costs. But Byrnes says this isn’t necessarily the best strategy.
“The default position is to look internally and cut costs, and we’re not saying they shouldn’t, but there are opportunities out there for businesses. If they’re too internally focused they may miss out on these opportunities,” he says.
“For example in manufacturing, there are lots of opportunities for businesses to consolidate. The market is under pressure, but there are good businesses still operating, while others won’t survive.”
Other strategies which weren’t often considered included making more wholesales changes such as realignment of strategy, focusing on sales and marketing and implementing diversification or outsourcing strategies.
For businesses needing to source new debt or refinance existing debt, don’t expect it to be any easier in 2014.
The report revealed 63% of lenders thought the availability of debt would not change in the next year.
“In respect to access to equity finance there was an expectation in parts of the market that this will free up,” Byrnes says.
“But the view of the lender group is there will be no real change and it’s been tough to access finance over the past 12 months.”

<hr>
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
</body></html>

yredrup-o4Anfe78KF

Automotive, manufacturing, printing and retail sectors burdened by debt: Grant Thornton report

<html><body>
The Fair Work Ombudsman is writing to 7,000 fast food businesses across Australia, in the next step of its three-year crackdown on the hospitality sector.
The aim of the campaign is to educate fast food businesses about their legal obligations toward their employees and will be backed-up by a random audit of 300 businesses early next year.
Fair Work Ombudsman Natalie James told SmartCompany it’s targeting the fast food industry because it employs a large number of people and includes many small and medium-sized businesses.
She says the sector has also generated a significant number of complaints from workers.
“About 300 fast food businesses in metropolitan and regional locations will be selected for audit in January, and during the audit phase Fair Work Inspectors will check employers are paying workers the correct rates of pay, penalty rates and loading and overtime rates, as well as complying with record-keeping and pay slip obligations.”
A free webinar for employers in the industry will be held at 3pm AEDT on Tuesday, November 19, 2013.
The <a href="https://extranet.deewr.gov.au/ccmsv8/CiLiteKnowledgeDetailsFrameset.htm?KNOWLEDGE_REF=216297&amp;TYPE=X&amp;ID=8767190189517383988889912894&amp;DOCUMENT_REF=387652&amp;DOCUMENT_TITLE=Fast%20Food%20Industry%20Award%202010&amp;DOCUMENT_CODE=MA000003">fast food industry award</a> was created in 2010 and includes information such as how many hours employees can work, loading rates for work outside of the ‘normal hours’, and how often employees have to be paid.
There are also links to record-keeping and pay slip templates, best practice guides and fact sheets.
As part of the three-year campaign, the FWO has also cracked down on accommodation providers, pubs, taverns and bars and cafes, restaurants and caterers.
“In the first wave, 750 accommodation providers, pubs, taverns and bars were audited in 2012, and hundreds of cafes, restaurants and caterers across Australia are being audited now as part of the second wave,” James says.
The results of this first round of audits are due for release in the coming weeks.
Workplace law expert Peter Vitale told SmartCompany it’s not a surprise the fast food sector is being targeted.
“The sector is dominated by small business, many employees are young and sometimes they don’t have English as a first language, and I think the most significant aspect is they operate in a world where their peak business periods are those where they’re required to pay penalty rates,” he says.
“Historically, one of the most common underpayment issues is the failure to properly pay penalty rates.”
Vitale says it’s difficult to gauge the effectiveness of FWO education campaigns.
“The results, if you like, are judged based on a reduction in prosecutions, but there are only a certain number of prosecutions each year. But it’s an important part of the ombudsman’s function to continue to do this and to continue to assist employers to understanding their obligations,” he says.
Ombudsman James says education is a key part of the FWO’s role.
“It’s our job to educate and help businesses – particularly small businesses that don’t have the benefits of in-house HR staff – about how to comply with workplace laws, and that’s what we’ll be doing throughout this campaign, we’ll be working with these employers to help them get it right,” she says.
In January the operators of a <a href="https://www.smartcompany.com.au/people/industrial-relations/29867-fair-work-ombudsman-exposes-adelaide-sham-contractors-pretzel-logic">fast food pretzel outlet were fined a total of $36,630</a> for sham contracting.
Also in January, the FWO found a <a href="https://www.smartcompany.com.au/growth/economy/29781-three-month-probation-without-pay-uncovered-as-fwo-issues-stinging-hospitality-industry-report">generally high-level of non-compliance</a> within the hospitality industry following an audit in three states. One of the revelations included a number of businesses trying to hire employees on probation for three month periods without pay.
Vitale says the fast food industry award isn’t any more complex than any other industry awards.
“They’re all, to some extent, difficult instruments to expect SME owners to understand comprehensibly. I think the FWO, the government and the industry associations recognise this is an area where employers need some help to understand their obligations.”

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
</body></html>

Fair Work Ombudsman to audit fast food sector in hospitality industry crackdown

<html><body>
Retail sales have lifted more than analysts’ expectations in September, as Australian Bureau of Statistics figures reveal turnover increased 0.8%, seasonally adjusted, for the quarter.
Turnover in department stores increased 2.8% and the clothing, footwear and personal accessory category rose 2.5%.
On a state-by-state basis, Victoria and New South Wales both recorded increases of 1%, while Western Australia declined by 0.5%.

<hr>
This article first appeared on <a href="https://www.smartcompany.com.au" target="_parent">SmartCompany</a>.
</body></html>

Retail sales up in September

<html><body>
Sydney auction listings have hit their highest point in four years, with RP Data figures showing almost 77% of the 1,090 houses on the market selling under the hammer over the weekend.
A total of 1,642 auctions were scheduled in capital cities across Australia over the weekend.
In Melbourne only 192 properties were up for grabs, as Victorians enjoyed a long weekend ahead of Tuesday’s Melbourne Cup.
As well as clearance rates, it seems house prices are also on the up, with Australian Bureau of Statistics figures released this morning showing across the eight capital cities prices increased 1.9% for the quarter.
Since last year, house prices have jumped 7.6% Australia-wide.
Sydney is performing best, with house prices rising 3.6% for the September quarter. Melbourne, Brisbane and Hobart also saw significant gains of 1.9%, 1.2% and 1.4% increases respectively.
 
<hr>
 
 
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
</body></html>

Four-year high for auction listings in Sydney

<html><body>
Western Australia has once again outdone the other states and territories in terms of economic strength, but it may be one of its last stints on top as the mining boom comes to an end.
WA is leading the way in terms of retail trade and is the second strongest economy when it comes to growth and business investment, according to CommSec’s State of the States report.
But CommSec chief economist Craig James said WA may not be leading the states and territories for much longer.
“I don’t think any state or territory stays at the top forever, it’s just like no sports team does either,” he says.
“There is a maturation of the growth and there are different growth drivers. Mining investment has lessened and that’s taken some momentum away,” he says.
In April last year <a target="_blank" href="https://www.smartcompany.com.au/finance/25475-western-australia-first--daylight-second-in-latest--state-of-the-states--report">WA was leading the way in five out of the eight categories</a> examined by CommSec – economic growth, construction work, unemployment, retail trade and equipment investment. It also came second in the population growth category.
Now, it leads just one category, although it ranked second on another five of the indicators.
“The actual strength in Western Australia is not the mining sector, but retail spending as we’re seeing a pickup in terms of the housing sector, and that’s being replicated through in terms of job growth and also retail sales,” James said when presenting the results.
In terms of the other states and territories, the Australian Capital Territory came in second for the second quarter in a row and there is now little separation between the Northern Territory, Queensland, New South Wales and Victoria, which ranked in that order.
South Australia and Tasmania are trailing significantly.
ACT
The second best performer in the economy, the ACT’s strength is in the housing sector, dwelling starts, population growth and housing finance.
It is also ranked the third strongest on business investment and fourth in terms of economic growth.
In terms of employment, the ACT’s unemployment rate of 4.1% is lower than the other states and territories. However, it’s significantly up on its decade average of 3.4%.
Northern Territory
The Northern Territory has come in third on the rankings, but it has lost ground in dwelling starts, population growth and business investment.
It continues to lead the states and territories in the economic growth category, with its economic activity 42% above its decade-average.
Queensland
Queensland is “the big mover” this quarter, according to James.
Queensland and NSW are now in equal fourth, as the sunshine state’s main growth driver has come from improvements in business investment.
Despite this, it is still lagging in terms of housing pickup.
“Queensland has momentum on its side, but it’s still lacking in terms of population growth. Dwelling starts are also picking up and business investment is strong, so this provides momentum to the economy,” James said.
NSW
The key strength of the NSW economy is its jobs market, while it lags in terms of economic growth.
NSW’s trend unemployment rate is higher than a lot of the nation at 5.5%. However, this is significantly lower than its decade average of 9%.
Victoria
Victoria is not far behind NSW and Queensland, and is currently being supported by the housing sector recovery.
It’s also performing well in terms of its jobs market, but the construction sector is negatively impacting the economy, with Victoria ranking seventh of eighth.
South Australia
A big gap exists between South Australia and Victoria, with its best performance a middle-ranking in the construction category. It ranked second last in most of the categories.
Tasmania
Tasmania was by far the worst performing state. While most states had a clear weakness, Tasmania’s was listed on the report as “various”.
Placing last on all eight economic indicators, stagnant population growth has reduced activity in the housing sector, as well as commercial and engineering construction and business investment.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

WA continues to lead, but the rest of Australia is catching up: State of the States report

<html><body>
A bidding war is heating up for Australia’s oldest listed milk processor, as Canadian company Saputo and local company Bega Cheese compete to take over the Warrnambool Cheese and Butter Factory.
Yesterday Canadian dairy company Saputo made a bid of $390 million for the factory, offering $7 cash per share for WCB.
The new deal comes after last month the WCB board urged shareholders to reject Bega’s $319 million offer, saying the move was “highly opportunistic”, given improving market conditions.
In contrast to the board’s reaction to Bega, WCB chief executive David Lord is urging shareholders to accept the offer from Saputo.
It’s not the first time other businesses have expressed interest in the 125-year-old business. In 2010 WCB rejected an acquisition proposal from Murray-Goulburn Co-operative.
The company has a strong history, having already overcome major obstacles to continue to prosper.
In 1913 the entire factory burnt down and in 1929 it was hit with another disastrous fire which destroyed most of the buildings and all its records.
Since then the business has gone from strength to strength. In 1935 it established an affiliation with Kraft, in 1956 both entities purchased the Sungold milk business and in 2002 it established a sales office in Japan.
Last week it also upgraded its earnings outlook, with the business now expected to make a profit of between $47 million and $52 million, approximately double the previous estimate.
WCB has been listed on the ASX since 2004 and is currently trading at $7.18 – up 100% from the beginning of the year.
But what makes this business so appealing to Saputo and Bega? IBISWorld senior industry analyst Emily Witham said the promise lies in WCB’s established exporting networks.
“Exports for dairy processors in particular make up a large component of their business at the moment and it’s likely to continue to do so. The exporting market is huge in cheese, skim milk and milk powder, particularly as the popularity for these products grow throughout Asia,” she says.
“That’s been one of the main aspects of the takeover; it will allow a business like Saputo to get a foot in the Asian market, which is a big area for growth.”
Dairy Australia industry analyst John Droppert agreed, saying that dairy processors with exporting links are currently leading the market.
“Historically it’s been a balancing between exporting opportunities and a profitable business at home to balance out the fluctuations,” he says.
“At the moment there is tremendous growth in South East Asia and this year the export story is very strong. There have been a few tough years for many of the key exporters, but there have been supply shortages in China this year and there have been exits among the smaller producers there, which is driving up commodity prices to levels we haven’t seen very often.”
According to IBISWorld, 40% of the cheese produced by WCB is exported to Japan, Korea, the United States, Europe and South East Asia.
The majority of the whey protein concentrate it produces is also exported to Japan and the US, while its butter and milk powder products are also exported through these destinations and the Middle East, China, Russia and South America.
The Warrnambool Cheese and Butter Factory also won the top exporter award in 2012 at the Governor of Victoria Export Awards.
But Droppert says it’s not just its exporting division which is attractive to Bega and Saputo.
“A successful dairy processor must have a good supply base and relations with farmers. It’s easy for farmers to switch between processors,” he says.
“It also needs efficient processing and good connections with the markets.”
The ongoing strength of the business is, however, likely to be driven by its exporting division.
“IBISWorld has found the big drivers in Asia is the westernisation of diets including a lot more lactose-based products, the growing population and the rise of middle income earners,” Witham says.
Witham says Asia’s dairy producing capabilities aren’t sufficient to meet the growing demand.
“Warrnambool has set themselves up to penetrate the market successfully and it produces a wide range of products designed for a niche market which aren’t sold at a significant premium,” she says.
“They’re sold at a mid-tier level, but are of a high quality.”
 
<hr>
 This article originally appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
</body></html>

What’s behind the Warrnambool Cheese and Butter Factory bidding war?

<html><body>
The Reserve Bank’s decision yesterday to keep the official cash rate on hold at 2.5% has been greeted as largely unsurprising, but the bigger question remains – have the rate cuts reached their end?
Rates have now been on hold for two consecutive months at the <a href="https://www.smartcompany.com.au/economy/057785-breaking-news-rba-keeps-interest-rate-unchanged-at-2-5">record-low level of 2.5%.</a>
The announcement came yesterday as positive economic news was also received in the form of retail sales numbers, manufacturing data and property prices.
For the first time since June 2011, the Australian Industry Group’s Performance of Manufacturing Index rose above the contraction marker of 50 points to 51.7, indicating growth in the sector.
Retail sales rose 0.4% during August, new home sales rose by 3.4%, and home prices also increased by 1.6% across the country.
These economic indicators are positive, but JP Morgan chief economist Stephen Walters says it’s not time to celebrate yet.
“The latest run of data has been good, but let’s see what the employment figures are,” he says.
“If unemployment increases as expected, this could temper the confidence of business and consumers a bit.”
Walters says the chances of the RBA cutting rates are reduced; however his original forecast of another cut before the end of the year remains the same.
“The recovery from the end of the mining boom is still not going well and you’re going to get a low inflation number on the 23rd of this month,” he says.
“If we get into next year and there are signs of house prices and construction still going up, then they may not move at all. So if there’s a cut, it will be near term rather than next year.”
HIA chief economist Harley Dale also said not to rule out the possibility of another cut.
“We’ve been in this situation before, where it looks as though the Reserve Bank has finished cutting, but that hasn’t turned out to be the case,” he says.
“It’s always been economic outcomes which drive the situation and we’re still looking at a domestic economy where we may not see the necessary rebalancing in the fallout from the mining boom.”
Dale says regardless of whether or not rates are cut, a rise in the interest rate is unlikely until 2015.
“There is some chatter starting to build in some quarters about the rate being on hold for the next six to nine months, but on the balance of what we know at the moment, there is sub-trend economic growth, residential recovery is still well short of where it needs to be and commercial construction won’t fill the void of resources-related projects,” he says.
“It’s hard to see what would warrant a return to higher interest rates next year and I think this would be a dangerous outcome.”
Reserve Bank governor Glenn Stevens said yesterday in a statement global financial conditions remain accommodative.
“The easing in monetary policy since late 2011 has supported interest-sensitive spending and asset values. The effects of these decisions are still coming through and will be for a while yet,” he says.
“The pace of borrowing has remained relatively subdued to date, though recently there have been signs of increased demand for finance by households.”

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

Has the Reserve Bank reached the end of the rate-cut road?

<html><body>
Reduced super contributions caps for people over 50 have resulted in self-managed superannuation fund contributions falling by almost 25% in the 2012-13 financial year, according to new research.
In the past year, average contributions fell $12,300 from $47,500 to $35,200, a study by SMSF fund administrator Multiport found.
The report found the decline was most likely the result of the reduction in the concessional contribution cap, with a cap of $25,000 applying to members of all ages during the 2013 financial year, rather than just those under 50.
In the past three financial years SMSF holders over 60 years old could make a concessional contribution of $50,000 to their fund.
In the 2013-14 financial year the cap will be increased and people over 60 will be able to contribute $35,000.
“With the increase in Super Guarantee to 9.25% and the increased concessional cap of $35,000 applying to the over 60s from July 1, 2013, a small lift is expected in the contribution levels for the 2014 financial year,” the Multiport report states.
But SMSF Professionals Association of Australia chief executive Andrea Slattery said it’s not just the changes in concessional caps which are influencing the amount people contribute.
“Our research confirms people have contributed less because they were concerned by the government’s constant tinkering with super and they had less confidence in the super system for the long term.
“People are not confident in the decisions which were being made around super,” she says.
Both major parties have recently committed to a <a href="https://www.smartcompany.com.au/superannuation/056797-small-business-tax-experts-remain-unconvinced-over-canberra-s-five-year-superannuation-freeze">freeze in superannuation changes</a> for five years.
Labor has said it would make no major changes, while the Coalition committed to making no detrimental changes.
Slattery says the freeze will give Australians greater confidence in planning for their futures.
The Multiport survey of 1950 of its clients also found SMSFs are starting to favour higher risk investment options.
“A significant amount of cash holdings moved into the fixed interest sector early in the financial year, with the cash down almost 2.7% and fixed interest up 2.6%,” AMP SMSF administration head of technical services Philip La Greca said in a statement.
La Greca says the changes in these investments were influenced by the reduction in official interest rates and improving sentiment about future movements.
“The allocation to Australian shares was up 0.8% to 37.5%, slightly higher than expected from normal growth in the market. This was mostly driven by the significant weighting that direct Australian shareholders have in the top 20 stocks, which outperformed the All Ordinaries,” he says.
Slattery says SPAA research also indicates more people are investing in property and equity.
“SMSF trustees are professionally advised as well as more engaged, and that engagement means they’re making decisions that are for their benefit in retirement and SMSF trustees do perform quite well,” she says.
 
<hr>
This article was originally published on <a target="_blank" href="https://www.smartcompany.com.au/?">SmartCompany.</a>
 
</body></html>

Reduced super contribution caps for people over 50 has led to 25% fall in SMSF contributions

<html><body>
Two businesses have been caught out by the Australian Communications and Media Authority for breaching the do not call register, with businesses warned by the regulator for being “sloppy”.
Investigations by ACMA revealed telecommunications provider Teleus and holiday accommodation deals promoter Flexi Marketing Solutions made calls to numbers on the register.
Both Teleus and Flexi Marketing have accepted enforceable undertakings from the communications watchdog, which stipulates the companies keep comprehensive records of all telemarketing calls they, or call centres, make.
Flexi Marketing has also undertaken to include a term in all future contracts with call centres requiring that they comply with the Do Not Call Register Act.
ACMA investigations manager Julia Cornwell-McKean said that by accepting these undertakings it shows the companies are going to actively ensure they no longer call the disallowed numbers.
“When we get offered an enforceable undertaking it’s up to a business to decide what they wish to offer.”
“In the case of these businesses, they’ve guaranteed to ensure no more calls will be made to people on the do not call register and they will keep comprehensive records. This is really important because they’re going to make the records available to the ACMA whenever we want them to check they’re compliant,” she says.
Almost nine million people have signed up to the act since it came into effect in 2007. In the past year, approximately one million more people have joined the list.
Within this time, ACMA has <a href="https://www.smartcompany.com.au/advertising-and-marketing/053592-call-centre-which-operates-do-not-call-register-cops-110-000-fine-for-breaching-the-register-2">investigated more than 50 businesses</a>, issued 26 formal warnings, accepted 24 enforceable undertakings and issued 13 infringement notices.
Cornwell-McKean says in the past year the watchdog has received 20,000 complaints, but generally most businesses are compliant.
“Of the ones we warn, very few end up as the subject of an investigation.”
“It’s not a new law now, but I think in these cases we’re talking about sloppiness, rather than a lack of awareness. These businesses weren’t watching things as closely as they ought to be and this is also a common thing across the Spam Act,” she says.
In April this year the register sign-up time was <a href="https://www.smartcompany.com.au/advertising-and-marketing/055145-do-not-call-register-extended-for-eight-years-despite-complaints-about-inaccuracies">extended for another eight years</a>, despite complaints about inaccuracies.
Cornwell-McKean says businesses need to actively ensure they are using the most up-to-date lists, as they’re updated every 30 days, or risk reputational damage.
“If you don’t make the calls yourself, make sure you also have control over the third party that does. Make sure you know what they’re doing and can access the calls they mark and maybe even audit them.”
This articel originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

Flexi Marketing Solutions, the holiday accommodation deals promoter caught breaching the do not call register

<html><body>
Weekend clearance rates have soared above 80% in Sydney for the first time in more than three years, as analysts say the market is continuing to outperform Melbourne.
Low interest rates have continued to attract buyers to the market, with Australian Property Monitors’ figures showing clearance rates in Sydney reached 81% on Saturday.
While Sydney is tracking around 20% higher than this time last year, Melbourne is also up around 10%, with clearance rates on Saturday hitting 63.4%.
Australian Property Monitors chief economist Andrew Wilson told said the Melbourne property market has historically been stronger than Sydney’s.
“This year Sydney has been tracking consistently higher than Melbourne, but when you look at the markets over a number of years, Melbourne would usually have higher clearance rates when the market is in the same stage.
“Melbourne has been a stronger market than Sydney generally, so this shows the strength of the Sydney market at the moment. The Melbourne market would be described as solid,” he says.
Wilson says there are a number of reasons why Sydney has had a stronger recovery, but overall both markets are tracking well.
“Unemployment is currently higher in Melbourne than Sydney and there have also been concerns [about] the manufacturing sector in Melbourne. These factors can have a dampening effect,” he says.
This time last year, Sydney recorded a clearance rate of 56%, while Melbourne was slightly higher at 57.4%.
Wilson says despite this weekend’s strong results, listing numbers are still weak because of the winter school holiday period.
“The quieter July market means listings were about 300 on the weekend. This is slightly higher than last year’s numbers and it’s a trend that has been improving in recent weeks, so there is no surprise we got over 80% in Sydney,” he says.
Earlier this year listings were often as many as 700 dwellings each week, with busy weeks in Melbourne exceeding 1000 homes and units.
Dr Wilson says the results this year have been consistent and this weekend’s rates show the “continuing positivity in the local market”, as a result of low interest rates.
Despite the improved market, Dr Wilson says there are still no signs of improvement in Sydney’s prestige sector.
“We still had no signs on the weekend of any lift in sales over $2 million.
“In Sydney, this is seen with homes in the Lower North Shore and the Eastern suburbs, it’s still the missing factor in Sydney, but properties in the $1 million to $1.5 million range are well sought after and selling well,” he says.
Loan data released last week from the Australian Bureau of Statistics also reflects improvements in the market, with the figures showing the number of dwelling commitments for the purchase of new dwellings was up 3.6% in May.
The percentage of first home buyers also increased, rising from 14.3% in April to 14.6% in May.
According to Australian Property Monitors, the most expensive property in Sydney over the weekend went for $2.35 million and was a four bedroom home in Randwick, while the cheapest was a two bedroom property in Wamberal which sold for $320,000.
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au/">Smart Company</a>.
</body></html>

Sydney's 20% auction success rate bounce doubles Melbourne's 10% fillip

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

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.

[smartcode_project_cta:default project_id=150017]

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. 
&nbsp; 
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>. 
&nbsp; 
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. 
&nbsp; 
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] 
&nbsp; 
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. 
&nbsp; 
“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.” 
&nbsp; 
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. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“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; 
&nbsp; 
“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] 
&nbsp; 
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>

&nbsp;

&nbsp;

&nbsp;

Yolanda Redrup

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News