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A Sydney-based air conditioning installation and servicing company has collapsed, with millions of dollars of debt accumulated following the failure of the now collapsed builder Reed Construction.
Advanced AirCon offers premium air conditioning system solutions to the residential and commercial market and it represents brands such as Actron, Mitsubishi and Panasonic.
The business, which provides services including design, sales, installation, commissioning and servicing, ran into trouble when Reed Construction collapsed in mid-2012 with debts on $182.1 million.
When <a target="_blank" href="https://www.smartcompany.com.au/construction-and-engineering/050237-reed-constructions-goes-under-leaving-500-small-businesses-looking-down-the-gun-barrel-of-liquidation-2">Reed Construction collapsed</a>, Brian Parker from the Construction, Forestry, Mining and Energy Union said up to 500 Australian small businesses working as subcontractors were "looking down the gun barrel of falling into liquidation".
"We have a substantial amount of workers with these subcontractors who will be put on the dole queues," Parker said.
In July 2012, it was revealed trade creditors and subcontractors were owed $78.7 million.
David Iannuzzi and Murray Godfrey from RMG Partners Business Solutions were appointed as administrators to Advanced AirCon last week, with Godfrey saying the business encountered cashflow problems, partly as a result of Reed Construction's collapse.
"It's also had difficulties with securing funding from banks and other construction companies. The business has been caught between a rock and a hard place.
"It's been battling paying taxes for some time and the Australian Taxation Office became quite insistent about being paid," Godfrey says.
RMG Partners Business Solutions insolvency manager Adam Lysle said the total amount of debt is yet to be determined; however, early investigations have revealed creditors are owed a couple of million dollars, "depending on how the tax office qualify the final debt".
"There are some unlodged returns out there the Tax Office still needs to consider.
"There are other creditors, although the Tax Office has been the most aggressive," Lysle says.
In March, a winding up application for Advanced AirCon was filed in the New South Wales Federal Court by the NSW Workers Compensation Nominal Insurer (trading as NSW WorkCover Scheme).
Advanced AirCon later met the requirements of NSW WorkCover and it dropped the order, but it was quickly picked up by the ATO.
In April, the deputy commissioner of taxation became the "substituted plaintiff", taking over the winding up order.
Lysle says Advanced AirCon has been "belted over the head" by the ATO.
At this stage there are 30 employees with Advanced AirCon and these employees will be retained for the "foreseeable future", but the directors will be seeking new work.
Godfrey says the administrators are looking to establish licence agreements which will allow most of the contracts to be completed and retention money recovered with the completion of the projects.
"We've spoken with the head contractors and they have been positive to date. The main issue is with getting subcontractors and employees paid.
"The interesting situation is there are no secured creditors and no major banks involved. There are some smaller suppliers and they have provided support for the process moving forward," Godfrey says.
The first meeting of creditors is set to be held on June 27 and Godfrey says creditors will be updated further at this meeting.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Air-conditioning company collapses in latest fallout from Reed Construction folding

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The Australian construction market is the most adversarial in the world, with high costs placing Sydney as one of the five most expensive cities in the world to build commercial, multi-unit high rises and hotels.
In global firm AECOM's annual collection of data from more than 10,000 construction projects around the world, Sydney ranked in the top five most expensive cities for each category of development because of market conditions, including high labour costs.
The results found innovation and collaborative delivery on construction projects is needed to reduce costs and make construction more affordable.
The report also suggested the residential property market, which has recently been improving across Australia, particularly in Melbourne and Sydney, could "take up the slack" felt in the economy with the end of the resources boom.
The recovery of the housing market has been particularly evident in the apartment sector, with the report finding the rate of approvals for apartments is "well above its 20-year average".
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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Sydney among world's most expensive cities for construction costs

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A 116-year-old Queensland golf course which, at its financial height turned over $20 million a year, has collapsed, with the business and premises now up for sale.
The Ipswich Golf Club was founded in 1897 by a group of local residents and was the first golf club in the area.
The 18-hole golf course was recently redesigned by Australian golfing champion Wayne Grady.
On April 19, 2013 the club went into administration, with Peter Lucas from PA Lucas and Co appointed as the administrator.
The firm is now calling for expressions of interest for the club, with an advertisement placed in today’s Australian Financial Review.
Assets of the business include club freehold ownership of golf course land and buildings, 58 electronic gaming machines, large clubhouse facilities including bistro, catering and function rooms, 400 golf members and full onsite green keeping staff and equipment.
The long-established golf club has gone through a number of changes in its history and in 2007 was considered a “community centre, open every day and evening”.
In the 1980s the club made the majority of its turnover through its drink sales at the bar but throughout the mid-1980s and early 1990s it struggled to make a profit.
In 1992 the club made an operating loss of $19,295 due to “costs associated with the drought” and “a significant capital debt”, according to the club’s website. Later that year the club introduced gaming machines and 1993, the club made an operating profit for the first time in seven years.
By 2007 the golf club generated a turnover of $20 million.
In a description of the club’s history on its website, Ipswich Golf Club says most of the $20 million in turnover was returned to the customers through the poker machines, but it was also making a cash turnover of $5 million per year.
Australian Golf Industry Association figures released in May indicate the amount of golf being played by Australians this financial year is rising, up by 5.8% in the first ten months of the financial year.
Despite these figures, the latest IBISWorld report into sports and recreation facilities operation in Australia found golf’s popularity has declined substantially since 2002.
The report found interest in the sport was at its lowest in a decade and the lack of interest was attributed to no significant international tournaments being played in Australia.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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Ipswich golf club with Wayne Grady-designed course put into administration and up for sale

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American bulk-goods chain Costco has received the green light to go ahead with the opening of its first Queensland store, as the company prepares for further <a target="_blank" href="https://www.smartcompany.com.au/retail/054635-costco-confirms-australian-expansion-as-big-box-retail-continues-to-thrive-2">expansion around Australia</a>.

The Queensland government yesterday approved the multi-million dollar Costco development at North Lakes, despite resistance from shopping centre rival Westfield.
The decision follows a report commissioned by the state government into the retailer.
The Australian reported this morning the report by consultancy Foresight Partners found only 40% of Costco’s range was carried by major supermarkets and even less by smaller convenience stores, indicating it would not threaten the <a target="_blank" href="https://www.theaustralian.com.au/news/an-independent-report-has-supported-the-expansion-of-retail-giant-costco-into-queensland/story-e6frg6n6-1226631879906" rel="nofollow">existence of small grocers</a>.
Foresight Partners was contacted for comment this morning, but no reply was received prior to publication.
Costco Australia managing director Patrick Noone said the construction of the centre would create about 350 local retail jobs and 160 construction jobs.
“Costco will bring a new element of competition and retail to the market. We’re also a trade player, so we’ll bring a new level of competition for small business and restaurants too,” Noone says.
Queensland deputy premier and minister for state development Jeff Seeney signed off on the development and said in a statement he’d considered the proposal carefully.
“I did not rush this decision, and I took the time necessary to make sure I was making the right decision for the community and the state.”
“The development will provide new business opportunities in the north Brisbane-Moreton Bay regions and contribute to growing and stimulating the construction industry,” he says.
Seeney said he believes Costco will be good for Queensland.
“I formed the view that this development contributes to the future economic well-being of Queensland, in particular the fast growing south-east region,” he says.
“We need to ensure that applications such as this do not get bogged down in protracted legal proceedings.”
Noone says while development is a bonus for Queensland shoppers, he understands Westfield’s opposition to the store opening.
“Everyone has a right to question the planning laws, it’s just something we work through with the local authorities, and it’s part of the democratic process which we’re happy to be a part of,” he says.
Chief executive of the Retail Doctor Group Brian Walker said Australian consumers have been very supportive of Costco’s arrival.
“Costco perform extremely well in our country. The Melbourne store was one of the best openings in its history worldwide. They’re really the next generation of supermarket. We can expect 15-20 stores in the next five years,” he says.
Walker says current economic conditions have influenced Australians appetite for Costco, especially as it operates on a membership-fee basis.
“A cautious consumer is focused on value. Consumers are currently migrating to Costco and what they do well is there is including an element of the surprise, a super bargain.”
Costco first opened in Australia in 2009 with its Melbourne store. Later this year stores are also opening in the Melbourne suburb of Ringwood and another in Sydney.
Noone says the discount grocer is also looking to open a store in Adelaide.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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US bulk-goods chain Costco plans to open in Queensland next year

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New Zealand merino wool adventure-wear brand Icebreaker opened its first Australian store last night in Melbourne’s Chadstone shopping centre.
While it’s the first Australian store for the brand, it entered the Australian market in 1999 through a distributor and in 2003 established its own brand here and has since been stocked in 210 retail stockists.
The opening of an Australian brand comes as brands such as North Face, Kathmandu and Rebel have continued to enjoy strong success even during tough times for retailers.
But founder James Moon says businesses should rethink the way they view physical stores – and start offering a “deeper range” of products, but with fewer brands.
“To compete, stores need to be offer a deeper range of products, but fewer brands so they can be seen as experts. They must also be competing on customer service. But, they can use their customer data-base established in-store to grow the online business,” he says.
“Consumer expectations have been reset. That’s a fact of life. But success depends upon the core principles of the business and the quality of the product you create. The more unique the product is you create, the less likely you are to have to discount.”
It took three years for Icebreaker to make its first profit of NZ$800, but now the store is turning over more than $NZ200 million.
Moon says Icebreaker intends to expand further in Australia by increasing its investment here.
“We will be growing the wholesale and the online business here and really trying to get all of the channels to integrate around making it more fun and easy for Australian customers to explore Icebreaker.
“It’s a really important long-term pathway for us,” he says.
Icebreaker first entered the Australian market through a distributor. Chief executive of the Retail Doctor Group, Brian Walker, says the business established a presence in the country first without the risk of a bricks-and-mortar investment.
“By going through a distributor, you get to understand the local market without having to go through the logistical challenges. Without opening in the market, you get to see what sells and what doesn’t; what consumers like and don’t like.”
However, while going through a distributor helps you to research a new market, Walker says there are disadvantages to doing so.
“Going through a distributor tends to adds costs and reduces margins typically,” he says.
“There has become a real question mark over time as to the role of distributors. Now, brands could just offer their products online into the Australian market and this would give the same benefits of consumer research and data,” he says.
Walker expects Icebreaker’s expansion in Australia will be successful, but it’ll face “pretty strong competition”.
“North Face, Kathmandu, Rebel and enthusiast stores like Paddy Palin have all done good business in that outdoor adventure-wear, so there is certainly customers who really enjoy this, there is a demand for these products,” he says.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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NZ adventure brand Icebreaker launches first Australian store in Melbourne's Chadstone

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Bankruptcies are at their lowest level in 17 years, new quarterly figures reveal, but rather than signalling improving economic conditions, experts believe it's become harder for businesses to chase debtors.

The numbers released yesterday by the Insolvency and Trustee Service of Australia indicated the national number of new bankruptcies fell 13.9% to 4774 – the lowest number for the quarter since March 1996.
Total personal insolvencies also declined by 11.11% to 7214 compared with this time last year. The largest decline of personal insolvencies was in Tasmania, where 17.96% fewer people declared insolvency.
Insolvency experts offered varying opinions why the insolvency figures were reduced, with some believing the increase in court filing fees for creditors makes chasing debtors too expensive, and others believing the process of tracking down an individual person is too difficult.
Business recovery and insolvency lawyer with Lawler Draper and Dillon, Hugh Milne, said some lawyers are now recommending some creditors not pursue debtors because of the high court costs.
"I spoke to some other lawyers recently and there has been an increase in fees to wind up a company, which is proving to be an issue. People are now thinking twice about going to the next stage of the process," he says.
The <a href="https://www.fedcourt.gov.au/forms-and-fees/court-fees/fees" rel="nofollow">cost of Federal Court filing fees</a> increased from $1983 to $4375 for listed companies on January 1 this year.
McKean Park Lawyers insolvency lawyer David Brett said the process of chasing debtors has become more expensive, but said businesses also find it a challenge to locate individual debtors.
"The costs in the courts have increased, but not outrageously so. It's just getting harder and harder to track down individual debtors."
"You ring up an estate agent trying to find a forwarding address and you're unlikely to get it because people are afraid they're going to be sued," he says.
Brett says there is also a distinction between chasing a company and an individual over debts.
"You have to differentiate between a personal debtor and a company. In relation to an individual, there are a few more processes you need to go through and this makes the process quite costly.
"With a person, before you can start chasing them for debts you have to get a court order; whereas to wind up a company there just needs to be a debt of $2000."
"With a person, it needs to be a debt of $5000 and you need a court order," he says.
"I spoke to some other lawyers recently and there has been an increase in fees to wind up a company, which is proving to be an issue. People are now thinking twice about going to the next stage of the process," he says.
The <a href="https://www.fedcourt.gov.au/forms-and-fees/court-fees/fees" rel="nofollow">cost of Federal Court filing fees</a> increased from $1983 to $4375 for listed companies on January 1 this year.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank" rel="nofollow">SmartCompany</a>.
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Bankruptcies down to 1996 levels: Insolvency and Trustee Service of Australia 

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The Westpac Index of Consumer Sentiment dropped by 5.1% in April, despite rises over the past two months and some recent positive economic news.
The move is a surprise, considering the <a href="/news">Reserve Bank decided to keep interest rates on hold at 3%</a> during last week’s meeting.
Over the previous two months consumer sentiment had risen by 9.9% and while economists believed sentiment the momentum would have slowed, a fall of this nature wasn’t expected.
Westpac senior economist Matthew Hassan said there had previously been signs of a cyclical recovery in consumer sentiment.
“The drop of 5.1% was quite surprising. Economic factors such as retail sales and job numbers in the past month had been positive and there was also just a slightly better vibe,” he said.
“Clearly there were also negatives, but given how things were tracking in sectors like the property market, we didn’t think we’d see such a decline.”
Hassan said the result shows “consumers are fragile” and the ongoing recovery is “shaky”.
“There has been more speculation about the potential for interest rates to rise, if this is the case it indicates sentiment is influenced by interest rates, which is something the Reserve Bank should be aware of,” he says.
All five sub-indexes were also down. The outlook for family finances over the next year fell 0.2%, while the outlook for economic conditions over the next 12 months dropped 4.5%.
The outlook for conditions over the next five years dropped 8.3%.
The largest decreases in consumer sentiment were from households earning an income of between $40,000 and $60,000 and from those who are renting a property.
Consumer sentiment among people earning between $40,000 and $60,000 dropped by 17.3% this month. This income bracket is the only one to have recorded an overall decline in sentiment since this time last year.
Westpac chief economist Bill Evans said in a statement consumers could be concerned over a potential rise in interest rates, with the index tracking views on ‘time to buy a dwelling’ down 11.4%.
“Rising house prices can have a mixed impact on assessments on 'time to buy' with the potential for capital gains acting as a positive, but reduced affordability for potential first home buyers acting as a negative.”
“However, the sharp decline in April may be further evidence around the fragility of the consumer and its nervousness around any suggestions of rising interest rates,” Evans says.
The RBA is due to meet on May 7 and Evans does not expect there will be a change in interest rates – but there may be a move later this year.
“The Board retains an easing bias but the tone of various communications from the Board suggests it is comfortable to remain on hold. Westpac is forecasting that growth in the Australian economy in both 2013 and 2014 will be around 2.5%, well below potential of around 3.25%.
“With inflation firmly under control that suggests that there is a need for the economy to get more stimulus. Accordingly, we expect that rates will come down further in 2013,” Evans says.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Westpac index records 5.1% drop in consumer sentiment

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A regional family-owned construction company in New South Wales responsible for redeveloping regional hospitals across Australia has collapsed, placing 180 jobs at risk.
On Monday afternoon, National Buildplan temporarily ceased work on its projects as administrators Martin Green and Peter Krejci of insolvency firm BRI Ferrier were appointed.
Initial investigations by the administrators have revealed many of the company's 50 active projects have been unprofitable, with four major projects taken on by National Buildplan resulting in substantial financial losses for the company.
A statement on National Buildplan's website says the company was placed in administration after "recent strategies to restructure the company and secure additional funding" were unsuccessful.
In an interview with ABC Radio yesterday, Krejci said the losses from the unprofitable projects are in the millions.
Krejci also said the company, which originally started in the regional New South Wales town of <a href="/news">Armidale</a>, employs 180 people and so far 110 jobs will be lost.
He said 70 employees will stay on to "ensure we maximise the value we get for those contracts" already in existence.
He said the unprofitable projects caused the firm to seek extra funding from its bank, but the bank decided not to extend the funding.
In November last year, National Buildplan and Watpac Construction secured a $65 million contract to expand the <a href="/news">Port Macquarie</a> Base Hospital.
The company also won an $8 million contract for works on the <a href="/news">Dubbo</a> Base Hospital and has a variety of other projects across regional New South Wales, Western Australia and Queensland.
There have also been reports of the company owing sub-contractors thousands of dollars. Krejci said sub-contractors in government projects will likely receive their money.
"The good news for a lot of the sub-contractors are those contracts would need to be continued with and whether the government decides to continue with the company under administration or find another builder, my understanding is it's the government's policy to ensure a lot of these sub-contractors are paid," he says.
The past year has seen a <a href="https://www.smartcompany.com.au/construction-and-engineering/054290-construction-company-collapses-owing-18-million-as-insolvency-figures-show-industry-in-for-more-pain" target="_blank">high number of collapses</a> within the construction industry and, in late January, the NSW Government inquiry into the industry listed 44 recommendations in an attempt to curb insolvencies.
These recommendations included establishing a new regulatory body, requiring contractors to set up and administer project trust accounts and strengthening the security of payment legislation.
Fairfax Media has reported National Buildplan made $152.41 million in revenue last financial year, but only made a net profit of $1.09 million.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Jobs at risk following collapse of NSW construction company

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The controversy surrounding Gold Coast-based funds management firm LM Investment Management has continued, with administrators revealing the business lent its founder, Peter Drake, a loan worth $17 million.
The company has already been accused of <a href="https://www.smartcompany.com.au/financial-services-and-insurance/054792-queensland-fund-management-business-collapses-following-damning-four-corners-report" target="_blank">breaching Corporations Law</a> by ABC's Four Corners. The collapse has meant investors face <a target="_blank" href="https://www.propertyobserver.com.au/developments/irregularities-suspected-in-lmim-s-maddison-estate-mortgage-fund-reports/2013040160117?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=latestnews">exposures worth more than $740 million in total</a>.
In its first report on the investment company, administrators from FTI Consulting said the firm had lent a total of $301 million to Drake and his companies, and had raised $740 million from retail investors. The loans were made from the LM Managed Performance Fund.
In total, LMIM loaned six parties millions of dollars, according to the report:
<ul>
<li>
Peter Drake – $17 million
</li>
<li>
LM Administration – $200,000
</li>
<li>
LM Capalaba – $18 million
</li>
<li>
Maddison Estate – $249 million
</li>
<li>
Australian International Investment Services – $15.7 million
</li>
<li>
Aalto Apartments – $1.7 million
</li>
</ul>
The administrators are currently reviewing all the loans, but say the most significant project under review is the Maddison Estate Development, which was lent $249 million. This was the main vehicle of the company's LM Managed Performance Fund.
An FTI Consulting spokesperson told SmartCompany investigations into the loans remain ongoing.
"There are various issues around the regulatory status of MPF [Managed Performance Fund] that have been raised by ASIC," the administrators say in the report.
"In particular, MPF has to date been operating as an unregulated fund outside of the Corporations Act."
The $740 million in LMIM assets is in the form of cash, foreign currency, direct real property, commercial loans secured by first or second mortgages and listed shares.
The company was founded by Drake in 1997 and on March 19 this year administrators John Park and Ginette Muller were appointed.
The first meeting of creditors was held yesterday afternoon in Broadbeach and the administrators announced they are seeking an extension of the standard 30-day period allowed before a second meeting.
Administrators told creditors they have petitioned for a 90-day extension due to complex company structures, as they need more time to complete their initial investigations.
The administrators also intend to apply to the Queensland Supreme Court on April 12 to take control of the LM Managed Performance Fund as its receivers, due to concerns over the legality of its operations.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Administrator investigates $17 million loan to LM Investment Management founder

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The property market is continuing to <a target="_blank" href="https://www.smartcompany.com.au/property/054444-hope-rises-for-property-market-on-yet-more-solid-auction-sales">grow in strength</a>, as Melbourne and Sydney recorded another weekend of positive results on the back of low interest rates and an improving economy.
Sydney recorded its fourth weekend of clearance rates above 70%, with 75% of the 450 houses up for grabs sold at auction on Saturday and Sunday, according to Australia Property Monitors figures.
Melbourne, the auction capital of Australia, also continued to perform well, with the Real Estate Institute of Victoria reporting a clearance rate of 69% for the 806 auctions listed.
APM senior economist Andrew Wilson told SmartCompany the prestige market in Sydney is just starting to respond after an extended slow period – and described the year so far as being "exceptional".
"Certainly the trend is consistent over the year so far, averaging about 70% for clearance rates, the highest since the beginning of 2010.
"Next weekend is one of the biggest weekends for auctions for the year and the scene is set for a very big day of sales if the current trend is upheld. There is no reason for the trend not to be, as the market appears to be strengthening," he says.
Over the weekend, APM reported seven properties selling in Sydney with values over $2 million.
The most expensive house sold at auction in Sydney, a four-bedroom home in <a target="_blank" href="/news">Vaucluse</a>, went for $3.35 million, but it was beaten for the title of top auction result by a Lavender Bay property which went for $5.6 million following negotiations after it was passed in.
Wilson says, overall, Sydney's bayside and inner city suburbs continued to do best, with these areas having clearance rates of about 80% and the eastern suburbs having a rate of 89%.
Next weekend, over 700 properties are expected to be auctioned in Sydney. Over 1,200 auctions are expected in Melbourne, which the REIV says is likely to be the fifth highest on record.
Wilson says Melbourne, like Sydney, is seeing a greater spread of activity.
"Similar to Sydney, we're seeing a bit more of a spread. The middle ring, north eastern and eastern suburbs of Melbourne had clearance rates of around 70%.
"We're reasonably confident these trends will continue, with <a target="_blank" href="https://www.smartcompany.com.au/property/054665-low-interest-rates-strengthen-overall-property-market-but-resistance-remains-rba">low interest rates fuelling increased demand</a> and confidence in the market place," he says.
In Victoria, the REIV reports the total value of residential sales at auction is at $1.8 billion, compared to $1.5 billion this time last year. The value of private sales is also estimated to have risen from $3.9 billion to $4.5 billion.
Melbourne's top five sales were all above $2 million.
However, while the property market flourishes in Melbourne and Sydney, it continues to struggle in Canberra.
RP Data estimates sales of houses and units were down 20% on the five year average in 2012 and down 13% from 2011.
Wilson says the local economy has impacted the market in Canberra.
"I do believe the main driver in a smaller market like Canberra is what's happening in the local economy. A rise in unemployment and job losses in the public sector does trickle into the property market," he says.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
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Auction boom continues in Sydney and Melbourne

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

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

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

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

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

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