<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.

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.

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.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"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.

"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."

[smartcode_project:default project_id=150499 project_image_fid=370898]

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.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

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.

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.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

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;

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.

"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;

"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."

[smartcode_project:default project_id=150499 project_image_fid=370897]

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;

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.

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;

"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;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

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.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Joel Robinson

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

Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

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.

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.

The challenge for investors is that suitable product is becoming harder to find.

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.

Today, the development pipeline looks very different.

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.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

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.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.

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.

&nbsp;

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

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.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.

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.

[smartcode_project:default project_id=112194 project_image_fid=808]

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.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

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.

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.

[smartcode_project:default project_id=149098 project_image_fid=330594]

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.

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.

Parkdrive Apartments, Chermside

Priced from: $749,000

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.

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.

[smartcode_project:default project_id=152125 project_image_fid=363782]

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.

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.

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

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.

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.

[smartcode_project:default project_id=150454 project_image_fid=364156]

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.

“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.

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.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“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.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“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.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

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.

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.

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.

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.

&nbsp;

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.

[smartcode_project_cta:default project_id=150454]

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

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.

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.

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.

[smartcode_project:default project_id=139552 project_image_fid=371009]

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.

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.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

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.

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.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

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.

[smartcode_project:default project_id=139552 project_image_fid=371025]

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.

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.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

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

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.

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.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

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.

“We know the buyer profile exceptionally well,” Abolakian says.

“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.”

That buyer has historically been overwhelmingly owner-occupier driven.

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.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

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.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“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.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“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.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

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.

“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.”

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.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<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" />

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.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“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.”

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.

“There are definitely people waiting,” he says.

“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.”

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.

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.

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

Residential Property

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The 26 year Bondi hoarders saga may finally be coming to an end, again, as a June 9 date has been set for it's new auction.
The great escape continued after the home at <a href="https://www.realestate.com.au/property-house-nsw-bondi-118903099" target="_blank">19 Boonara Avenue</a> skipped auction as the NWS Sheriff's Office couldn't proceed with the auction set for May 19.
A possible $2 million sale is on the cards for its prime location and 550 sqm land parcel.
The property was set for sale in February last year but owner Mary Bobolas and her daughters Elena and Liana came up with the $180,000 to pay Waverly Council’s cleaning and legal bills just hours before the auction.
This time they're not expected to be so lucky, as they need to come up with $160,000 in the next eight days to save the home.
In November the council’s solicitors wrote to the Bobolas family asking for settlement of the outstanding money to avoid the sale of the property but no received no reply.
The NSW Sheriff’s Office has commissioned Raine &amp; Horne Double Bay’s Ric Serrao to sell the property so that clean-up costs can be recovered on behalf of the council.
The listing shows rubbish flowing out of the door onto the houses frontage despite a 10 truck clear up in July last year.
Bidders hoping to secure the property will take on the responsibility on the clean-up costs of the rubbish left on the land.
When it was listed in 2015, 63 contracts had been handed out. Last month it was in the 30s.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Bondi hoarders auction rescheduled for June 9

<html><body>
GUEST OBSERVER
Dwelling approvals rose by 3.0 percent in April. The value of all building soared by 18.3 percent – the biggest monthly rise in four years. Building was at record highs in trend terms.
Net foreign debt rose by $9.1 billion to a record $1027.8 billion as at the end of the March quarter.
Net exports (exports less imports) will provide a solid 1.1 percentage-point contribution to economic growth in the March quarter. The CBA Group estimates that the economy grew by 1.1 percent in the March quarter to be up 3.2 percent over the year. If the data is confirmed tomorrow it would show the economy growing at the fastest annual rate in 2½ years.
Lending up: Private sector credit (lending) rose by 0.5 per cent in April to stand 6.7 per cent higher than a year ago – the strongest growth in seven years.
The approvals data has implications for banks, building and building material companies. The balance of payments data has implications for trade-exposed businesses and companies vulnerable to changes in the Aussie dollar. 
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.12.18%20PM.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.12.18%20PM.png" alt="">
What does it all mean?
Did the Reserve Bank get it wrong? Or do policymakers just have a new-found belief that the economy can go faster without generating higher inflation?
Certainly all of today’s economic readings were strong: credit (lending) growth at 7-year highs; biggest lift in building work in four years; record value of building approvals; record exports; and a solid export contribution to economic growth. Overall, the Australian economy may have grown at the fastest pace in 2½ years in the March quarter. We will know tomorrow. But we tip 1.1 per cent economic growth in the quarter to be up 3.2 per cent over the year. Economic growth over the past three quarters may have run at a 3.7 per cent annual rate.
The gloomsters may point to Australia’s record foreign debt and high current account deficit. The more positive observers will point out that debt servicing is not far from the best levels in over 30 years.
Foreign debt is an issue for global investors. But the half a cent lift in the Aussie dollar after today’s data suggests that investors understand the somewhat unique Australian situation.
What do the figures show? 
Building Approvals:
Dwelling approvals rose by 3.0 per cent in April after a 2.9 per cent gain in March. Over the past year 235,025 new homes were approved, up from March but still down on the record 239,507 approvals in the year to October 2015.
House approvals fell by 1.9 per cent in April (private sector fell by 2.3 per cent). Meanwhile ‘lumpy’ apartment approvals rose by 8.1 per cent in April after rising by 2.4 per cent in March. Private sector apartment approvals rose by 8.7 per cent in April.
Dwelling approvals in April were up by 0.7 per cent on a year ago with house approvals down by 8.9 per cent while apartments are up by 11.5 per cent.
Across states and territories in April: NSW approvals rose by 10.4 per cent; Victoria fell by 2.7 per cent; Queensland rose by 6.8 per cent; South Australia rose by 13.8 per cent; Western Australia fell by 0.6 per cent; Tasmania rose by 14.0 per cent. In trend terms, approvals fell by 15.2 per cent in the Northern Territory and rose by 6.7 per cent in the ACT.
The value of all commercial and residential building approvals rose by 18.3 per cent in April (biggest rise in 4 years) after falling by 4.3 per cent in March. Residential approvals rose by 8.4 per cent with new building up by 7.2 per cent while alterations &amp; additions soared by 18.7 per cent. Commercial building rose by 47.3 per cent in April to be up 32.4 per cent over the year.
Balance of Payments
The broadest measure of Australia's external position - the current account – improved in the March quarter (smaller deficit), with the deficit narrowing from $22.6 billion to $20.8 billion. 
The balance of goods and services was in deficit by $8.1 billion after a $10.9 billion deficit in the December quarter. Exports rose by 4.4 per cent in real terms while imports fell by 0.8 per cent.
At the end of the March quarter, net foreign equity was $15.7 billion – essentially Australians own more assets overseas than foreign investors own here in Australia. But the positive net foreign equity position weakened from $57.89 billion in the December quarter.
The trade sector (exports less imports) will provide a 1.1 percentage point contribution to economic growth in the March quarter.
Terms of trade (ratio of export to import prices) fell by 1.9 per cent to 78.7 in the March quarter – lowest level in 10 years. The terms of trade for goods fell by 2.8 per cent but the terms of trade for services rose by 1.0 per cent.
Net foreign debt rose by $9.1 billion to a record $1,027.8 billion as at the end of the March quarter.
The debt servicing ratio (net income on foreign debt to goods and services credits) improved from a near 4-year high of 8.2 per cent to 8.1 per cent in the March quarter.
The current account deficit to GDP ratio eased from a near 6-year high of 5.5 per cent to 5.1 per cent in the March quarter.
The net foreign debt to GDP ratio rose from 63.8 per cent to a record high of 64.3 per cent in the March quarter.
Government Finances
Government consumption spending rose by 0.9 per cent in the March quarter after a 0.6 per cent increase in the December quarter. Total public investment rose by 0.7 per cent in the March quarter after rising by 5.8 per cent in the December quarter. Overall, spending by the government sector rose by 0.8 per cent in the March quarter after lifting by 1.5 per cent in the December quarter.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.15.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.15.32%20PM.png" alt="">
Private sector credit
Private sector credit (lending) rose by 0.5 percent in April after a 0.4 percent gain in March. Annual credit growth rose from 6.4 percent to 6.7 percent – equalling the fastest annual pace in 7 years. 
Housing credit grew by 0.4 percent in April after a 0.5 percent gain in March. Housing credit is up 7.0 percent on a year ago. 
Owner occupier housing credit rose by 0.5 percent in April to stand 7.3 percent higher than a year ago – the fastest annual growth since September 2010.
Investor housing finance lifted 0.3 percent in April to stand 6.5 percent higher over the year – the slowest growth in 31 months.
Personal credit was down 0.1 per cent in April after falling by 0.3 per cent in March. Personal credit was down 0.9 per cent over the year – just up from the slowest annual rate in almost 4 years.
Business credit rose by 0.8 per cent in April to record highs. Business credit is 7.4 per cent higher than a year ago – the fastest growth rate in seven years.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.17.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.17.32%20PM.png" alt="">
What is the importance of the economic data?
The Bureau of Statistics' monthly Building Approvals release contains figures on local council approvals to build residential structures such as homes and units as well as commercial premises such as offices and shops. Approval is one of the first stages of the construction ‘pipeline’ and is thus a key leading indicator of future activity. An increase in approvals would point to stronger future activity for construction-related companies.
The quarterly Balance of Payments figures have few short-term effects on financial markets. The importance of the data is merely to highlight Australia’s trading position with the rest of the world as well as the contribution of foreign trade (exports less imports) to the latest estimates of economic growth.
Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive.
What are the implications for interest rates and investors?
Today’s data will give the Reserve Bank policymakers some extra time to assess the next move. It is hard to fault the latest data readings with most parts of the economy now pointing north. Ordinarily data similar to that released today would cause analysts to tip rate hikes, rather than rate cuts. But at present deflation and disinflation are upper most in policymaker minds – here and abroad.
 It is almost as if some analysts had forgotten that the mining construction boom had progressed to the mining production boom. Exports hit record highs in the March quarter and further gains lie ahead.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.20.01%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.20.01%20PM.png" alt="">
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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Record exports, building, business loans: CommSec's Craig James

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The HIA New Home Sales Report, a survey of Australia’s largest volume builders, shows that total new home sales declined in April following a strong rise in March, said the Housing Industry Association.
Total seasonally-adjusted new home sales declined by 4.7 percent in April 2016.
The decline in total sales was reflected in both detached house sales (-3.0 percent) and sales of ‘multi-units’ (-10.8 percent).
<a href="/images/2016/05/30/Screen%20Shot%202016-05-30%20at%2010.58.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/30/Screen%20Shot%202016-05-30%20at%2010.58.39%20AM.png" alt="">
The monthly decline in detached house sales was widespread, with four out of the five mainland states recording reduced sales in April.
Victoria bucked the trend – monthly sales of detached houses increased by 14.3 percent due to broad-based strength in large volume builder activity in the state during the month.
“The trend in new home sales reiterates that the peak for the cycle has passed, but the descent we’re now observing is very mild,” HIA economist, Diwa Hopkins said.
“This signals the potential for very healthy home construction activity throughout 2016, much as we have been anticipating.
“This overall trajectory of total new home sales is consistent with our long-held expectations for new home building activity.
“Our forecasts reflect an expectation that a modest decline in new home building in 2016 will be largely driven by a decline in multi-unit construction, following the successive record levels that occurred in 2015 and 2014.”
In the month of April 2016 detached house sales declined in four of the five mainland states: Western Australia (-19.8 percent); New South Wales (-8.1 percent); Queensland (-7.8 percent) and South Australia (-1.3 percent). Only in Victoria did detached house sales increase (+14.3 percent). 
 
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Victoria sees more new home construction, but nation in decline: HIA

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Over in the west the big property news was West Coast Eagles star Nic Naitanui spending $3 million on a Mount Lawley home.
The star ruckman secured a five bedroom, four bathroom 2008 Zorzi-built house with home cinema. It was listed with high<a href="https://reiwa.com.au/52-queens-crescent-mount-lawley-3636535/" target="_blank"> </a>$3 million hopes mid-last year, selling earlier this year by private treaty.
His redundant Swan View home, which cost $1,285,000 in 2012, had been put up for rent.
Last month he sought $900 a week, which has been adjusted now to $800 a week.
Perth's weekend auction success rate sank to 20 percent, according to CoreLogic RP Data.
The median price for a home in Mount Lawley is $999,000, according to CoreLogic RP Data.
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West Coast Eagles star Nic Naitanui spends $3 million

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The pending Federal election could present opportunities for astute home buyers and investors, according to Real Estate Buyers Agents Association of Australia (REBAA) president Rich Harvey.
He believes it is likely there could be a lot less competition at auctions and open inspections in coming months as historically people tended to sit on their hands in the lead-up to elections.
"The lowest point consumer confidence had been in the last couple of years was the 2014 budget when the Roy Morgan index plunged below 100 (average is 113)," he said.
“Looking at the most recent consumer confidence report from Roy Morgan, you can see the stark changes that happen among Australians around both budgets and elections,” he said.
“While the metric did rebound to regular levels after some time, it shows the resounding impact that budgets have on our consumer base. With tax breaks, higher fees, and restrictions on spending, it's no wonder people feel less confident as new measures are announced.
"In the event cold feet turned out to be a widespread phenomenon in coming months, buyers would be wise to get in “while the going was slow” and take advantage of consumer uncertainty.
“The Reserve Bank figures show that housing credit has remained stable over the first few months of the year, after some rocket-powered increases in lending throughout 2015. This suggests that market activity has already slowed down, and pre-budget or pre-election nerves might see this escalate.
“With promises coming from all corners of the political arena and less stability until the votes are counted, a quieting could be on the cards. While none of us have a crystal ball, it make sense that if there are fewer people in the property market, property hunters will have a better than average chance of picking up an excellent deal."
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Federal election an investment opportunity

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Capital city rents had a 0.1 percent increase in April, according to the CoreLogic April monthly rent review.
According to CoreLogic RP Data five of the eight capital cities saw a modest rise in rents over the past twelve months, with Sydney up 1.4 percent, Melbourne 1.7 percent, Adelaide 0.5 percent, Hobart 1.1 percent and Canberra 2.5 percent
CoreLogic RP Data research analyst Cameron Kusher said a weakness in the rental market will persist over the year and rents will continue to fall over the coming months. 
"The annual change in rental rates continues to be at its slowest pace since before 1996," he said. 
“Factors contributing to a slowing in rental growth include falling real wages, excess rental supply in certain areas and lower rates of population growth - all of which have impacted on demand for rental accommodation. With dwelling approvals at recent record highs and construction activity set to peak over the next 24 months, accompanied by many new properties still to settle, we anticipate that the weak rental market  conditions will persist with rental growth continuing to slow and, or, fall in most capital cities.
“Based on current market conditions, landlords won’t be in a position to lift rental rates and may actually need to reduce rents in order to keep their tenants. We see renters as holding a stronger negotiation position and where they now have the potential to upgrade into higher grades of accommodation for a similar, or lower rents."
 
“At the same time last year, rental rates increased by 1.7 percent which indicates a sharp slowdown in rental growth over the past year.
"With rental rates increasing in some cities in April, rates in Sydney, Adelaide and Hobart are at record highs. In all remaining cities, rental rates are now below their highs with the declines recorded respectively in: -0.1 percent in Melbourne, -0.8 percent in Brisbane, -13.7 percent in Perth, -17.3 percent in Darwin and -5.4 percent in Canberra. "
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Sydney, Adelaide and Hobart April rents at record highs: CoreLogic RP Data

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A recent survey by Finder.com.au has revealed that some buyers indicated they would offer up to 25 percent less than the asking price for a property that had presented badly, further solidifying the importance of property presentation.
These results are really no surprise to us. Over the years we have seen unstyled or poorly presented properties have very little interest, only to sell over reserve following a spruce up by a professional stylist.
In a tough market place, property presentation can really make or break a sale.
Top tips for preparing your home or investment for sale include:
1. Improve your street appeal by tidying the gardens, repairing any fences or guttering, adding a fresh coat of paint and making sure to have a definitive pathway to the front door.
2. Declutter by removing excess furniture and personal items – too many items such as photo frames and figurines can make a property feel small and cramped and will distract buyers from focusing on the property itself.
3. Conceal day-to-day items such as laundry, piles of paperwork, dishes, keys and garbage or remove completely from the property for open for inspections.
4. Set up the property well in advance by opening all curtains and blinds, turning on heating or air conditioning, opening balcony doors and windows, and turning on lights and lamps – this will make the property feel light and airy.
5. Finishing touches create good first impressions – adding a bunch of flowers, bright scatter cushions and colourful throws along with burning a scented candle will make buyers feel welcome.
 
Justine Stedman is director and principal stylist of Vault Interiors and can be contacted <a href="https://www.vaultinteriors.com.au" target="_blank">here</a>.
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Poor presentation costs Aussies up to 25 percent on auction day

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
When politicians talk about tax and fairness, it’s easy for them to point out undeserved loopholes benefiting the wealthy, or multinational companies. But the elephant in the room is the difference between those who own and those who rent (or have recently bought and have huge mortgages) the house they live in.
The tax advantages of housing offend against justice on every count: they place financial stresses on the poor, they are unequal, and the increase in price is not deserved.
Owner-occupied houses are exempt from income and capital gains tax, and from social welfare means tests. Negative gearing gives investment properties a tax advantage, which is exacerbated by discounts on rates of capital gains tax. Rent assistance given to those on social security (currently a maximum of A$130 per week) is not sufficient to compensate for the difference.
The high price of housing is created by tax inequalities and by supply and demand imbalances created by government failure. At the same time, the government has encouraged banks to borrow hundreds of billions offshore to fund greater mortgage debt – pushing prices higher. Foreign depositors are faced with a low 10% withholding tax (reduced from 15%), and have not been subject to adequate money laundering controls.
And there is not much social benefit in higher house prices to counteract the costs to non-homeowners. Higher prices have not led to a significant increase in supply over time; people do not spend the increase, nor use it much to fund their retirement.
<h2>Defining ‘justice’</h2>
The word justice is used so widely, it needs some definition. While “fairness” is applied more widely, justice can be used to incorporate four sometimes conflicting objectives. Justice seeks, as much as possible to:
<ul>
<li>Contribute to economic equality</li>
<li>Give each person their just deserts</li>
<li>Meet people’s essential needs</li>
<li>Allow for personal liberty by not interfering in people’s lives.</li>
</ul>
Such a model of justice can be used to evaluate tax systems.
For those concerned that justice comes at a cost to efficiency and economic growth – there is considerable evidence to show that the relationship, where it exists, is positive. Giving people their just deserts provides the material incentives so beloved of economists. Evidence from a broad group of countries shows little overall relationship between income inequality and rates of growth and investment. Fairer taxes lead to greater compliance with tax laws. Research has found a significant increase in Australian tax morale between 1981 and 1995, which was explained by reforms that people saw as making the system more just.
<h2>Clouded by politics</h2>
Amid the ongoing debate about tax reform during the last year, many had hoped for some meaningful changes in the coming federal budget.
Instead, the current debate on the tax system, and more recently negative gearing, is concerned with perceptions of political acceptability.
This was also typified by the dismissal of any change to the taxation of housing in the Re:think tax discussion paper:
“Given the central importance of the home for Australian families, there is a strong consensus that it would not be appropriate to tax either the imputed rent on owner-occupied housing or capital gains derived from it.”
“Strong consensus”, whatever that means, is not a good reason if it involves injustice. The argument works the other way: given the central importance of the home, and its place in income and assets, it is essential for housing to be included in our tax and welfare systems. Let’s be the land of the fair go, even if we have to give up some personal advantages.
<h2>Reform options</h2>
Addressing the issue is complicated politically in that around 70% of voters own their houses, and a significant minority have borrowed heavily to get into the market in recent times. If prices drop, they will suffer through no fault of their own, as would the banking industry. With more than two million shareholders, banks are also strong politically.
The Henry tax review did, however, recommend a transition from stamp duties to a land tax, a significant increase in rental assistance and the removal (albeit with a high threshold) of the exemption of owner occupied homes from the means test for pensions.
The greater efficiency, and justice, of land taxes means that they have fairly widespread support from informed commentators. Taxes on property currently raise A$29 billion annually for the states and another A$14 billion for local governments in Australia. If land accounts for 50% of the value of residential housing, the additional revenue would be of the order of A$75 billion. Another A$40 billion might be possible if commercial land was also be included.
Removing capital gains discounts and taxing imputed rents should also be considered. <a href="https://www.tandfonline.com/doi/abs/10.1080/10511482.1994.9521152?journalCode=rhpd20#.VyAWCmR96X0">Research released in 1994</a> found the latter would be both efficient and more equitable in Australia. The advantage of this is that such a system allows for the tax deductibility of mortgage repayments, so would provide compensation for the minority that had recently bought into the housing market. A higher withholding tax on international deposits would also reduce the availability of funds to push up assets, and encourage local businesses by removing some of the artificial support for the currency.
Housing accounts for more than 60% of the value of total assets held by Australians. Translated into imputed rent it amounts to about A$150 billion annually, or 20% of the gross personal income of those who own their homes. If taxed at marginal rates of tax, imputed rents would add about a third to current personal tax of A$190 billion annually.
Anthony Asher is associate professor, UNSW Australia, and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/anthony-asher-247115" target="_blank">here</a>.
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The way Australia taxes housing is manifestly unfair

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Australia’s first Living Building Challenge design competition will be the first in the world to focus on a retail centre: Frasers Property Australia’s Brickworks retail project in Melbourne’s Burwood East.
The Brickworks Living Building Challenge design competition, run by the Living Future Institute of Australia with Principal Partner Frasers Property Australia, aims to explore the boundaries of sustainable design within the retail environment and redefine ‘best practice’ for the sector.
It is calling for designers, professionals, environmental experts, students and others to submit ideas for the retail centre, which Frasers Property Australia will develop within a wider masterplan for the site in the near future.
For more information, download our eBook <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/52152-australia-aspires-to-global-green-leadership-the-living-building-challenge" target="_blank">here</a>.
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Australia’s first Living Building Challenge design competition 

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The Year of the Monkey offers great opportunities for Chinese investors who are looking to buy property in Australia. 
The benefits to investing in Australia’s housing market include the country’s healthy and comfortable lifestyle, the property market’s relative stability, and regulations that protect investors’ ownership rights. 
Australian rental properties often deliver yields in the range of 3 percent to 5 percent, plus the potential for strong capital gains over the long term. 
Housing values in Australia’s major capitals have been rising over the past few years, driven by low interest rates and high investor demand. 
Simply <a href="/images/2016/chinese_ebook/Chinese_ebook.pdf" target="_blank" title="eBook">click here</a> to get your Chinese language copy of Property Observer's ebook Buying property in Australia: A guide for Chinese investors. 
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