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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.”

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This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
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Automotive, manufacturing, printing and retail sectors burdened by debt: Grant Thornton report

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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.”

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This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
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Fair Work Ombudsman to audit fast food sector in hospitality industry crackdown

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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%.

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This article first appeared on <a href="https://www.smartcompany.com.au" target="_parent">SmartCompany</a>.
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Retail sales up in September

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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.
 
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This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
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Four-year high for auction listings in Sydney

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

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

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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.”

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This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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Has the Reserve Bank reached the end of the rate-cut road?

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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.
 
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This article was originally published on <a target="_blank" href="https://www.smartcompany.com.au/?">SmartCompany.</a>
 
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Reduced super contribution caps for people over 50 has led to 25% fall in SMSF contributions

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

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

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Joel Robinson

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.

Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for <a href="https://www.apartments.com.au/new-apartments/cove-on-ourimbah-40-56-ourimbah-road-mosman-nsw-2088">Cove on Ourimbah</a>, a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.

The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.

Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.

<img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" />

Doroch Architects said the building had been designed to reinforce Mosman's established character.

"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.

The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.

The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.

The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.

&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a>

&nbsp;

Yolanda Redrup

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