<p><a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.</p>

<p>Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.</p>

<p>Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.</p>

<p>Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.</p>

<p>"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.</p>

<p>"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370898]</p>

<p>For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.</p>

<p>Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;</p>

<p>All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.</p>

<p>Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.</p>

<p>"It's a place to choose your pace and live gracefully, seaside'," Sander says.</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370900]</p>

<p>The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;</p>

<p>Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.</p>

<p>"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;</p>

<p>"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370897]</p>

<p>Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;</p>

<p>Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.</p>

<p>The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;</p>

<p>"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;</p>

<p>Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370899]</p>

<p>Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.</p>

<p>Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.</p>

<p>[smartcode_project_cta:default project_id=150499]</p>


Joel Robinson

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

<p>Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.</p>

<p>Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.</p>

<p>The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.</p>

<p>The challenge for investors is that suitable product is becoming harder to find.</p>

<p>For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.</p>

<p>Today, the development pipeline looks very different.</p>

<p>Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.</p>

<p>That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.</p>

<p>At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.</p>

<p>We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.</p>

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

<p data-end="1140" data-start="844">Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.</p>

<p data-end="1140" data-start="844">The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.</p>

<p data-end="1140" data-start="844">&nbsp;</p>

<p data-end="1140" data-start="844">[smartcode_project:default project_id=150017 project_image_fid=370964]</p>

<p data-end="1140" data-start="844">Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.</p>

<p data-end="1140" data-start="844">True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.</p>

<h2><strong>Corallo, Palm Beach</strong></h2>

<p><strong>Priced from: $841,500</strong></p>

<p>Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.</p>

<p>The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.</p>

<p>[smartcode_project:default project_id=112194 project_image_fid=808]</p>

<p>For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.</p>

<h2><strong>Corner House, Stones Corner</strong></h2>

<h2><b>Priced from: $880,000</b></h2>

<p>One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.</p>

<p>One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.</p>

<p>[smartcode_project:default project_id=149098 project_image_fid=330594]</p>

<p>Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.</p>

<p>The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.</p>

<p><strong>Parkdrive Apartments, Chermside</strong></p>

<p><strong>Priced from: $749,000</strong></p>

<p>The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.</p>

<p>The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.</p>

<p>[smartcode_project:default project_id=152125 project_image_fid=363782]</p>

<p>Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.</p>

<p>For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.</p>


Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

<p>A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.</p>

<p>The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=364156]</p>

<p>Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.</p>

<p>“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.</p>

<p>That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.</p>

<p>The absence of holiday letting within the building has also resonated strongly with purchasers.</p>

<p>“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366491]</p>

<p>The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.</p>

<p>“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.</p>

<p>“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366486]</p>

<p>Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.</p>

<p>Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.</p>

<p>A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.</p>

<p>The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.</p>

<p>&nbsp;</p>

<p>To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.</p>

<p>[smartcode_project_cta:default project_id=150454]</p>


Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

<p>Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.</p>

<p>The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.</p>

<p>The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371009]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.</p>

<p>The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.</p>

<p>Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371016]</p>

<p>Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.</p>

<p>Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371017]</p>

<p>Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.</p>

<p>The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371025]</p>

<p>Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.</p>

<p>The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.</p>

<p><sup>*Conditions apply in relation to the deposit match offer.</sup></p>

<p>[smartcode_project_cta:default project_id=139552]</p>


Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

<p data-end="181" data-start="0">Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.</p>

<p data-end="484" data-start="183">From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.</p>

<p data-end="657" data-start="486">Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.</p>

<p data-end="806" data-start="659">Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.</p>

<p data-end="871" data-start="808">“We know the buyer profile exceptionally well,” Abolakian says.</p>

<p data-end="1097" data-start="873">“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”</p>

<p data-end="1169" data-start="1099">That buyer has historically been overwhelmingly owner-occupier driven.</p>

<p data-end="1434" data-start="1171">Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.</p>

<p data-end="1533" data-start="1436">“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.</p>

<p data-end="1665" data-start="1535">“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”</p>

<p data-end="1721" data-start="1667">That philosophy extends well beyond apartment layouts.</p>

<p data-end="1966" data-start="1723">From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.</p>

<p data-end="2051" data-start="1968">“There was probably a period where having an approved project in market was enough,” he says.</p>

<p data-end="2154" data-start="2053">“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”</p>

<p data-end="2386" data-start="2156">“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”</p>

<p data-end="2386" data-start="2156">[smartcode_project:default project_id=110379 project_image_fid=311393]</p>

<p data-end="2549" data-start="2388">The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.</p>

<p data-end="2678" data-start="2551">For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.</p>

<p data-end="2757" data-start="2680">“People buying now often aren’t moving in for several years,” Abolakian says.</p>

<p data-end="2949" data-start="2759">“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”</p>

<p data-end="3219" data-start="3163">That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.</p>

<p data-end="3219" data-start="3163">[smartcode_project:default project_id=149594 project_image_fid=362634]</p>

<p data-end="3454" data-start="3221">While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.</p>

<p data-end="3546" data-start="3456">“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”</p>

<p data-end="3919" data-start="3669">That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.</p>

<p data-end="4005" data-start="3921">“It’s about creating something that feels special without being excessive,” he says.</p>

<p data-end="4112" data-start="4007">“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”</p>

<p data-end="4112" data-start="4007"><img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" /></p>

<p data-end="4243" data-start="4114">The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.</p>

<p data-end="5230" data-start="5149">“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.</p>

<p data-end="5392" data-start="5232">“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”</p>

<p data-end="5674" data-start="5394">Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.</p>

<p data-end="5723" data-start="5676">“There are definitely people waiting,” he says.</p>

<p data-end="5902" data-start="5725">“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”</p>

<p style="text-align:start">Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.</p>

<p style="text-align:start">Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.</p>


Why Hyecorp continues to back Sydney's Lower North Shore apartment market

Property Investors

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<p><span style="line-height: 1.3em;">GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">As housing prices steadily grow in value, first time property investors are looking beyond first home ownership and are instead purchasing with a view to grow their portfolio. </span><span style="line-height: 1.3em;"> </span></p>
<p>The ‘Australian dream’ as we know it is evolving. Coming of age for many young people now means looking to investments and finding security in future personal wealth, rather than short term experiences.</p>
<p>According to a study from Mortgage Choice, first homebuyers are now purchasing their first home as an investment property, with close to a third of investments being first time property purchases.</p>
<p>For the younger market, there are a few reasons that these buyers are looking to investing in property, instead of occupying property.</p>
<p><strong>You can’t have your cake and eat it too</strong></p>
<p>Lifestyle factors motivate young buyers to invest instead of buy. If they are renting in a desirable, trendy location, it is likely they cannot afford to purchase a property there. <span style="line-height: 1.3em;"> </span></p>
<p>Savvy first homebuyers are looking to invest in a suburb further out and use the rental income of an investment property to boost their pocket and pay off a relatively smaller mortgage.</p>
<p>Sacrificing a ‘live in CBD lifestyle’ is now a consideration as outer suburbs such as Noble Park and Box Hill bring viable rental yields, making investment feasible, as well as encouraging younger buyers into the market.<span style="line-height: 1.3em;"> </span></p>
<p><strong>All bets down</strong></p>
<p>Educated young investors look to purchase properties in suburbs that are speculated to be growing and eventually more valuable. </p>
<p>Remembering that this demographic has grown up with anecdotes from older relatives – where property prices have tripled in their lifetime – these young investors are looking for a low-entry point before prices extend beyond their reach.</p>
<p>Young buyers also look to areas that are rapidly gentrifying, eventually evolving into highly desirable areas. Suburbs such as Brunswick, Yarraville and Sunshine are fast being held in high demand for first homebuyers.</p>
<p>Buyers in this demographic are putting their bets on up and coming areas, with an expectation that the either the property will gather mass capital gains, or the area will improve on lifestyle factors through gentrification and be desirable to occupy in future.</p>
<p><strong>Generational shift</strong></p>
<p>Studies demonstrate Gen X’s and Y’s are more comfortable with living with their parents for longer, and as the Australian demographic diversifies, so too do purchasing behaviours. </p>
<p>The lure of a financial boost from an investment, combined with cultural influences makes living at home more feasible for this generation.</p>
<p>In fact, more than half of Australians aged 18-24 still live with their parents. Rather than key this up to generational apathy, it is about understanding the influences behind and financial motivations that drive changes in the market.</p>
<p>For instance, the influx of refugees to Australia’s shores in the late 1970s through to the early 1990s has now produced a generation of first homebuyers that have been ingrained with the value of fiscal security for the future. Faced with the insecurity of their parents’ past experiences, first to second generation Australians are now in the life-stage of purchasing their own home. </p>
<p><em>Julian Augustini is director of Hodges Real Estate and can be contacted <a href="https://www.hodges.com.au/julianaugustini/" target="_blank">here</a>.</em></p>
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mick.cee-iDmgDDAmu8

The rise of the junior investor: Julian Augustini

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<p><span>Property investors have enjoyed a remarkable period of generational lows for interest rates, Melbourne buyers advocate Richard Wakelin says.</span></p>
<p><span>"One that will not remain indefinitely," he told <em>The Australian Financial Review</em>.</span></p>
<p><span>He suggests the recent move to raise rates was delivered with plenty of guidance from regulators that investor growth must slow to avoid trouble later on.</span></p>
<p><span>"Yet some participants' sense of entitlement is so ingrained that even a small and well-explained tweak up in rates causes apoplexy.</span></p>
<p><span>"I'm not uncomfortable that rates are now higher for investors than for home buyers. </span></p>
<p><span>"Traditionally, it was always the case that investors paid more than home owners because, all things being equal, an investor is the higher risk. </span></p>
<p><span>"If you're in financial trouble you'll make more of an effort to hang on to the family home than your investment property."</span></p>
<p><span>Richard Wakelin says one of the biggest risks in a property market sitting atop strong sustained capital growth "was a loss of discernment."</span></p>
<p><span>"Good judgment is put to one side and every property looks like a winner.</span></p>
<p><span>"A rising tide lifts all boats, and all that. It is a time when we see the brazen spruikers and con artists emerge, pushing up prices for junk assets.</span></p>
<p><span>"It only takes a mild softening in the wider market for the value of these peripheral properties to collapse, causing financial havoc for many families."</span></p>
<p><span><em>RICHARD WAKELIN is the director and founder of </em><a href="https://wakelin.com.au/" target="_blank"><span><em>Wakelin Property Advisory</em></span></a><em>.</em></span></p>
<p><span><em>Richard is hosting a webinar on how to prepare to sell your home or investment property this spring at 8pm Wednesday, August 12. You can sign up </em><a href="https://wakelin.com.au/webinar" target="_blank"><span><em>here</em></span></a><em>.</em></span></p>
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jchancellor-FAypfDUnLy

Investor growth must slow to avoid trouble later on: Richard Wakelin

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<p>A Melbourne private investor has paid $300,000 over reserve for a leased property with five year options at a rental of $74,618 per annum net.</p>
<p>Sold at auction for $1.346 million the property, 1 Newham Grove, Ormond, <span style="line-height: 1.3em;">is 665 square metres with a 37 metre frontage. </span></p>
<p>Teska Carson's Andrew Thorburn said the property had been used as<span style="line-height: 1.3em;"> a gym for over 25 years.</span></p>
<p>"Ormond has become a sought after suburb with a level of demand that has seen the median house price exceed the $1.1 million mark - 10% higher than last year and rising - and it would not surprise to see commercial property values reflect that sort of growth,’’ Mr Thorburn said.</p>
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<p> </p>
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jonathanchancellor-7SQnKwU6yx

$300k over reserve paid for Ormond gym

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<div>The latest <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/3401.0/" target="_blank">Overseas Arrivals and Departures</a> data for the month of June 2015 confirmed that population growth in Australia will be once again be slower in this calendar year.<br><br>As I argued a year ago, by the third quarter of 2014 it had become evident that the assumption reported widely in the media that the population of Australia would boom by around 2.4 million persons over the next six years was too high - much too high, in fact!<br><br><div class="separator"><a href="https://1.bp.blogspot.com/-ZK9-CCXjNWs/VcWS2tAESjI/AAAAAAAAXd0/LM0ux2QIp00/s1600/A1.jpg"><img src="https://1.bp.blogspot.com/-ZK9-CCXjNWs/VcWS2tAESjI/AAAAAAAAXd0/LM0ux2QIp00/s400/A1.jpg" width="400" height="65"></a></div>
<div class="separator"><a href="https://4.bp.blogspot.com/-MuwjFKRKYYA/VcWS2ljUtxI/AAAAAAAAXd4/r3tiw5jf7cE/s1600/A2.jpg"><img src="https://4.bp.blogspot.com/-MuwjFKRKYYA/VcWS2ljUtxI/AAAAAAAAXd4/r3tiw5jf7cE/s400/A2.jpg" width="400" height="110"></a></div>
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</div>
<div>In the event population growth slowed considerably to be up by an estimated +330,200 in 2014, and population growth will be slower again in 2015.<br><br>Over the longer term we might indeed expect to see much stronger levels of population growth return for the reasons I have already explored, but for the foreseeable future lower population growth will be the new norm.<br><br>Let's take a look at the implications of the latest figures in three parts.<br><br>
</div>
<p><strong><span style="text-decoration: underline;">Part (i) - Slowing immigration nationally</span></strong><br><br></p>
<div>The number of long term arrivals into Australia has slowed further over the past year, and consequently net long term migration has pulled back to +292,000 on a rolling annual basis, sliding from a recent peak of more than +400,000.</div>
<div> </div>
<div>This suggests that population growth in 2015 will likely slow further perhaps to around +300,000 persons from +330,200 in 2014.</div>
<p><a href="https://2.bp.blogspot.com/-l47JN3T3sRc/VcWZDBPOGOI/AAAAAAAAXeM/e9Bki5YjSO8/s1600/A3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><a href="https://2.bp.blogspot.com/-l47JN3T3sRc/VcWZDBPOGOI/AAAAAAAAXeM/e9Bki5YjSO8/s1600/A3.jpg"><img src="https://2.bp.blogspot.com/-l47JN3T3sRc/VcWZDBPOGOI/AAAAAAAAXeM/e9Bki5YjSO8/s640/A3.jpg" width="640" height="284"></a></div>
<div class="separator"> </div>
<div class="separator">One of several key potential drivers of this trend has been the sharp reduction in the number of permanent settlers from New Zealand.</div>
<div class="separator"> </div>
<div class="separator">Meanwhile the number of permanent settler Brits has slowed to a mere trickle - just 470 settlers in June hailed from the United Kingdom, the lowest monthly figure across the full 25 years of available data.</div>
<div class="separator"> </div>
<div class="separator">Kiwi citizens can move freely between Australia and "home" and as such are theoretically far more sensitive to shifts in labour market conditions.</div>
<div class="separator"> </div>
<div class="separator">And while spare capacity in the labour market has being rising over the past three years in Australia, it had been tightening for some time in New Zealand.</div>
<div class="separator"> </div>
<div class="separator">With mining construction activity now slowing sharply in Australia - and Christchurch in New Zealand seeing a high volume of reconstruction activity - it is perhaps unsurprising that fewer New Zealanders are making the trans-Tasman trip on a permanent footing (although a record 1.27 million still came to Australian shores on a short-term basis over the past year).</div>
<div class="separator"> </div>
<div class="separator">On the other hand the number of settlers from countries such as China and India continues to slowly but surely break new heights.</div>
<div class="separator"> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-3t9V6rJXEx4/VcVDUvK0AdI/AAAAAAAAXco/XFqtxZxRjsE/s1600/Arr6.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><a href="https://3.bp.blogspot.com/-3t9V6rJXEx4/VcVDUvK0AdI/AAAAAAAAXco/XFqtxZxRjsE/s1600/Arr6.jpg"><img src="https://3.bp.blogspot.com/-3t9V6rJXEx4/VcVDUvK0AdI/AAAAAAAAXco/XFqtxZxRjsE/s640/Arr6.jpg" width="640" height="278"></a></div>
<div class="separator"> </div>
<div class="separator">Indeed, the overwhelming majority of settlers in Australia now hail from Asia, with the middle east the only other region or continent presently in a confirmed uptrend.</div>
<div class="separator"> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-h6P7CisOE5w/VcVDUyRlWmI/AAAAAAAAXck/EIlxWS9olsY/s1600/Arr7.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><a href="https://3.bp.blogspot.com/-h6P7CisOE5w/VcVDUyRlWmI/AAAAAAAAXck/EIlxWS9olsY/s1600/Arr7.jpg"><img src="https://3.bp.blogspot.com/-h6P7CisOE5w/VcVDUyRlWmI/AAAAAAAAXck/EIlxWS9olsY/s640/Arr7.jpg" width="640" height="282"></a></div>
<div class="separator"> </div>
<p><strong><span style="text-decoration: underline;">Part (ii) - Record visitors to Australia</span></strong></p>
<div class="separator"> </div>
<div>There is a flip side to the softer pace of growth in Australia's economy, and that is that falling interest rates and a correspondingly weakening currency have encouraged the tourism sector to attract a record number of short term arrivals Down Under. </div>
<div> </div>
<div>This year the rolling annual number of short term arrivals blasted past 7 million for the first time to a record 7.12 million in the 2015 financial year (denoted by the blue line below).</div>
<p><a href="https://4.bp.blogspot.com/-ZSVe0fqeMkA/VcVDTzyHU8I/AAAAAAAAXcM/3J4ENKKyCxk/s1600/Arr2.jpg" target="_blank">Click to enlarge </a></p>
<div class="separator"><a href="https://4.bp.blogspot.com/-ZSVe0fqeMkA/VcVDTzyHU8I/AAAAAAAAXcM/3J4ENKKyCxk/s1600/Arr2.jpg"><img src="https://4.bp.blogspot.com/-ZSVe0fqeMkA/VcVDTzyHU8I/AAAAAAAAXcM/3J4ENKKyCxk/s640/Arr2.jpg" width="640" height="280"></a></div>
<p><span style="line-height: 1.3em;">While the corresponding drag on overseas travel by Australians has only been fairly gradual to date (denoted by the red line above), the weaker dollar also means that over time comparatively fewer Aussies will be inclined to make overseas trips, which in turn will act as a further boost for the domestic economy. </span></p>
<div>I holidayed on the Sunshine Coast myself in the past week, and it is quite evident that more Aussies are inclined to hang out in locations such as Noosa over the winter than has been the case in recent years.<br><br>After all, travelling overseas is not <em>quite</em> as much fun as when the dollar was at sky high levels just a few years ago!</div>
<div> </div>
<div>Accordingly the ratio of short term departures to short term arrivals has steadily been trending down for the past two years.</div>
<p><a href="https://4.bp.blogspot.com/-7dS7i5xs8Fc/VcVDTx-uYTI/AAAAAAAAXcQ/kB4tYIqk8kg/s1600/Arr3.jpg" target="_blank">Click to enlarge</a> </p>
<div class="separator"><a href="https://4.bp.blogspot.com/-7dS7i5xs8Fc/VcVDTx-uYTI/AAAAAAAAXcQ/kB4tYIqk8kg/s1600/Arr3.jpg"><img src="https://4.bp.blogspot.com/-7dS7i5xs8Fc/VcVDTx-uYTI/AAAAAAAAXcQ/kB4tYIqk8kg/s640/Arr3.jpg" width="640" height="280"></a></div>
<p><span style="line-height: 1.3em;">One trend which is definitely </span><strong style="line-height: 1.3em;"><span style="text-decoration: underline;">not</span></strong><span style="line-height: 1.3em;"> slowing down is the number of Chinese visitors to Australia with more than 1.25 million visitors from China, Taiwan and Hong Kong over the past 12 months, with the latest figures showing no signs of this emerging mega-trend easing off.</span></p>
<div>A record 563,800 Americans have also enjoyed the dramatic shift in the exchange rate over the past year.</div>
<p><a href="https://4.bp.blogspot.com/-HcD37dvFQYY/VcVDUnbykGI/AAAAAAAAXcg/2RkrnpmPbWg/s1600/Arr4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><a href="https://4.bp.blogspot.com/-HcD37dvFQYY/VcVDUnbykGI/AAAAAAAAXcg/2RkrnpmPbWg/s1600/Arr4.jpg"><img src="https://4.bp.blogspot.com/-HcD37dvFQYY/VcVDUnbykGI/AAAAAAAAXcg/2RkrnpmPbWg/s640/Arr4.jpg" width="640" height="276"></a></div>
<p><span style="line-height: 1.3em;">Furthermore there has been an explosion in the number of foreign students in Australia - also largely hailing from Asia - another trend which has in part been driven by exchange rate movements. </span></p>
<div><a href="https://3.bp.blogspot.com/-4h5vgAvj_7I/VcVDVj9-pdI/AAAAAAAAXc0/JuJ1O1YC4k0/s1600/arr5.jpg" target="_blank">Click to enlarge</a></div>
<div><span style="line-height: 1.3em;"> </span></div>
<div class="separator"><a href="https://3.bp.blogspot.com/-4h5vgAvj_7I/VcVDVj9-pdI/AAAAAAAAXc0/JuJ1O1YC4k0/s1600/arr5.jpg"><img src="https://3.bp.blogspot.com/-4h5vgAvj_7I/VcVDVj9-pdI/AAAAAAAAXc0/JuJ1O1YC4k0/s640/arr5.jpg" width="640" height="280"></a></div>
<p><span style="line-height: 1.3em;">This is an emerging demographic trend which will impact Sydney and Melbourne most keenly.</span><span style="line-height: 1.3em;"> </span></p>
<div class="separator">The full impact of the depreciation of Australia's currency has yet to flow through to this data and we will certainly now see further short visitor records broken in the year ahead.</div>
<p><strong><span style="text-decoration: underline;">Part (iii) - 3 implications of lower population growth</span></strong></p>
<p><span style="line-height: 1.3em;">So what are the impacts of slower population growth in Australia, which could continue for the foreseeable future? </span></p>
<div>There will be many impacts, of course, but here are just three of the most prominent observations.</div>
<div> </div>
<div>Firstly, and most obviously, slower population growth will equate to lower demand for goods and services, which in turn over time should result in <strong><span style="text-decoration: underline;">lower economic and employment growth.</span></strong><br><br>Over the next few years there will be a lower than expected requirement for investment in building offices, warehouses, housing, machinery, plant and equipment. </div>
<p><span style="line-height: 1.3em;">Secondly, with employment growth having tracked at an estimated 2.1% or 243,600 new jobs over the past year - which is considerably faster than the estimated rate of population growth of just 1.4 per cent - the Reserve Bank now </span><a href="https://www.rba.gov.au/publications/smp/2015/aug/html/index" target="_blank" style="line-height: 1.3em;">believes</a><span style="line-height: 1.3em;"> that the </span><strong style="line-height: 1.3em;"><span style="text-decoration: underline;">unemployment rate has likely peaked</span></strong><span style="line-height: 1.3em;"> for this cycle. </span></p>
<div>Previously it had been forecast that the unemployment rate would continue rising to around 6.5 per cent, but now the unemployment rate is seen as more likely to be falling again from 2017. The darker blue shaded areas represent the Reserve's 70 per cent confidence interval.</div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-5Lzmr6uP8M0/VcV_OAii7xI/AAAAAAAAXdc/zeFRKGyrS9o/s1600/UE.jpg" target="_blank">Click to enlarge</a></div>
<div>
<br><div class="separator"><a href="https://1.bp.blogspot.com/-5Lzmr6uP8M0/VcV_OAii7xI/AAAAAAAAXdc/zeFRKGyrS9o/s1600/UE.jpg"><img src="https://1.bp.blogspot.com/-5Lzmr6uP8M0/VcV_OAii7xI/AAAAAAAAXdc/zeFRKGyrS9o/s400/UE.jpg" width="400" height="387"></a></div>
</div>
<div>However, there are many regions in Australia where unemployment is still elevated or rising, particularly in resources-influenced regions and in South Australia where the trend rate of unemployment has hit 7.9 per cent and rising.</div>
<div> </div>
<div>Thirdly, with the mining investment supernova now set to implode in spectacular style, the strong rates of immigration which benefited the resources areas of regional Western Australia and regional Queensland have now ebbed away.</div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-UAU8Pw52o-w/VZsC3PaTSPI/AAAAAAAAWtQ/Ip5KWRT_itE/s640/eng2.jpg" target="_blank">Click to enlarge</a></div>
<div>
<br><img src="https://2.bp.blogspot.com/-UAU8Pw52o-w/VZsC3PaTSPI/AAAAAAAAWtQ/Ip5KWRT_itE/s640/eng2.jpg" width="640" height="274"><br><br>Accordingly <strong><span style="text-decoration: underline;">population growth has become more capital city focused</span></strong>.<br><br>The most recently available data showed that Greater Melbourne and Greater Sydney alone accounted for all but half of Australia's total population growth, while Greater Brisbane and Greater Perth accounted combined for close to nearly a quarter of the total.<br><br>Regional population growth on the other hand has in aggregate been been slow and slowing.<br><br>As for whether the mining boom will have a second wind? Highly unlikely: that's not the way that commodity cycles typically tend to work.<br><br>The Reserve Bank's Commodity Index was once again smoked by another 5 per cent on a monthly average basis in SDR terms in July to be a punishing 20.2 per cent lower over the past year.<br><br>Ouch.<br><br>In Aussie dollar terms the decline has been a somewhat less dramatic 8.5 per cent year-on-year, but nevertheless Australia's terms of trade (TOT) remain well above their long run average (and TOT booms have historically tended to over-shoot on the downside too).</div>
<p><a href="https://1.bp.blogspot.com/-Ilkpx3lP19k/VcV_OG-p3zI/AAAAAAAAXdk/KEkm_g7X5W8/s1600/Commods1.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://1.bp.blogspot.com/-Ilkpx3lP19k/VcV_OG-p3zI/AAAAAAAAXdk/KEkm_g7X5W8/s1600/Commods1.jpg"><img src="https://1.bp.blogspot.com/-Ilkpx3lP19k/VcV_OG-p3zI/AAAAAAAAXdk/KEkm_g7X5W8/s640/Commods1.jpg" width="640" height="278"></a><br><br></p>
<div>Note that it's not just iron ore and coal prices which have been hammered as demand from China and elsewhere has slowed in the face of a glut of supply.<br><br>Oil, aluminium, copper and gold have all hit half decade lows in recent times, while the price of silver has tracked little better.</div>
<div>
<br>Slightly bizarrely - given that coal prices are well below the project's notional break even point - the Adani Carmichael Mine is one possible exception to the accelerating decline in mining investment.<br><br>Some folk with the power to exert material influence evidently has the government's ear relating to this essentially unviable mega-project.<br><br>Generally speaking, however, mining production is ramping up, there is heavy downward pressure on commodity prices, and ever fewer material projects have been passing viability.</div>
<div>
<br>Going forward population growth in Australia will follow the employment growth, which has been heavily focused on Sydney and Melbourne, and to a somewhat lesser extent Brisbane and the Gold Coast.</div>
<div>
<br>Indeed, over the past year more than 80 per cent of employment growth has been found in New South Wales and Victoria, and overwhelmingly in Sydney and Melbourne. </div>
<div> </div>
<div>With the Western Australian economy slowing and net interstate migration going into reverse gear, population growth will is likely to be heavily focused on the three largest capital cities - a trend which will only be exacerbated by the nascent explosion in foreign students.<br><br>The Reserve Bank added its own outlook for the housing market in the latest SOMP:<br><br><em>"Supply constraints, particularly in Sydney, may limit the extent to which new dwelling investment can satisfy growing demand, which raises the possibility that housing prices will grow more quickly than forecast. </em><br><em><br></em><em>Also, housing prices outside Sydney and Melbourne are little changed over the past year or so and may not yet have responded fully to the very low levels of interest rates."</em>
</div>
<div><em> </em></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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