Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Savings

<html><body>
EXPERT OBSERVER
The significant increase in short-term wholesale interest rates and associated volatility has been a key topic of debate in markets throughout 2018.
Initially linked to higher borrowing costs in the US, a further spike in only Australian rates as the June quarter drew to a close saw participants' focus shift to domestic drivers of this pricing activity.
There are many market factors that have played a part in the surge in short-term interest rates. All are worthy of discussion, but in this instance we focus on the real economy's effect. Specifically, the broad-based deceleration in deposit growth.
While we believe that there is insufficient evidence to label the decline in deposit growth as the prime catalyst for higher short-term interest rates, deposit growth's persistent underperformance is critical to our view that the abnormally large market spreads present will, by and large, be sustained.
Put simply, if (in dollar terms) retail deposits increase at a lesser rate than credit, then Australian lenders’ reliance on wholesale funding must increase. This looks likely over the remainder of 2018 and 2019 if, as we anticipate, national and household income growth remain soft, led by weak wages growth; a downturn in employment growth; and the terms of trade.
Consumer saving and investing decisions are unlikely to provide a meaningful boost to deposit growth absent a shock because consumers already favour deposits (and super) over other asset types.
For superannuation deposits, weak income growth is not the only headwind. Over the past year, households' capacity to make voluntary contributions to super has been further reduced, limiting the flow of new fund inflows.
A falling allocation to domestic cash (in favour of offshore investment opportunities) amongst the industry has further restricted the flow of new deposits to Australian banks and other depository institutions. 
With the Australian economy expected to register growth at or below trend in 2018/ 2019 as global growth remains near its post-GFC peak, Australian investors' appetite for offshore assets is likely to persist.
The final point of note is the significant tightening of lending standards underway. This policy shift, yet again, is a negative for households' ability to accrue deposits. Specifically, those switching from interest only to principal and interest face a much higher total monthly payment.
Meanwhile, those who remain on interest–only terms will pay a higher interest rate now, and the majority will still inevitably have to move to principal and interest later to pay down the loan.
The longer that interest only terms are relied upon, the more rapid the required paydown becomes over the remainder of the 30-year term, unless a borrower is successful in refinancing the loan with another counterparty.
Elliot Clarke is a Senior Economist at Westpac
Andrew Hanlan is a Senior Economist at Westpac
Simon Murray is an Economist at Westpac
</body></html>

j.ballantyne1990-6AQqhLzZaK

Lending standards are dramatically tightening: Westpac

<html><body>
GUEST OBSERVER
Aussies are missing out on savings of up to $3,184 a year by shunning online lenders in favour of the big banks according to financial comparison site Mozo.com.au.
A nationally representative survey conducted by Mozo found Aussies are less likely to apply for a home loan online than other financial products despite the huge savings on offer.
“Our research shows while more than half of consumers are comfortable taking out car insurance, credit cards and personal loans online, just 27 per cent would consider doing the same for a home loan,” says Mozo Director Kirsty Lamont.
“Surprisingly, less than half of consumers would consider getting a home loan with an online lender despite the majority saying the main drawcards of signing up with an online lender are cheaper interest rates and lower fees.”
Mozo compared 504 home loans from 89 providers to identify Australia’s best value home loans for its annual Mozo Experts Choice Home Loan Awards, and found that nearly two thirds of the best value home loans on the market are from online lenders.
“We found that online lenders are on average 0.70% cheaper than the Big 4 banks for a typical loan of $350,000 over 25 years. When you look at the room for savings, it’s well worth looking beyond the traditional bricks and mortar lenders.”
Mozo found the biggest barrier to Aussies getting a home loan online is their lack of familiarity with online lenders, with 56 per cent saying they simply don’t know enough about them.
“Unfamiliarity with online lenders is stopping borrowers from accessing better home loan deals,” says Lamont. “Many online lenders are able to pass on significant cost savings to consumers because they have fewer overheads than traditional banks.”
<a href="https://www.propertyobserver.com.au/images/2017/05/24/MOZO%202.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/24/MOZO%202.png" width="700" height="343">
The research shows more males than females would consider applying for a home loan online, while females were more likely not to borrow from an online lender because they didn’t know enough about them.
Of those who said they would apply for a home loan online, half are between the ages of 25 and 44, which indicates that Gen X and Y are more comfortable applying for a home loan online than other generations.
In addition to lack of familiarity, 43 per cent of consumers say they avoid shopping online for a home loan because they’d prefer to discuss their needs face to face with a mortgage expert.
“Seeking expert advice from a third party might be a valuable service in navigating the mortgage application maze but this could come at a steep price if borrowers neglect to do independent research beforehand,” says Lamont.
“Many borrowers who go through a bank or mortgage broker often don’t get to see the full spectrum of offers available and may be unsure of what rates are available elsewhere, especially in the online space.”
Online lenders iMortgage, loans.com.au and UBank were among the major winners in this year’s Mozo Experts Choice Awards, while Homestar was named the Non-Bank Home Lender of the Year after raking in mentions across five home loan categories.
<a href="https://www.propertyobserver.com.au/images/2017/05/24/MOZO%20-3.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/24/MOZO%20-3.png" width="700" height="417">
Kirsty Lamont is the director of <a href="https://mozo.com.au" target="_blank">Mozo.com.au</a>
</body></html>

elalademann0606-LAMLni4EAX

Borrowers lose over $3,000 in annual savings by shunning online lenders: Kirsty Lamont

<html><body>
GUEST OBSERVER
The premise of superannuation relies on trust in the system and trust in the government to protect Australia’s primary savings vehicle. Stability of legislation and consistency of policy. This is why we strongly support enshrining the objectives of superannuation in law, and why we are so adamant that the objectives must strive for dignified and secure retirement. Also, consumers need to be able to trust that the advice they receive from their advisors is accurate and in their best interest.
Today I want to focus on three main points.
First, I will briefly reflect on our significant achievements as an Association since establishment in 2003. Second, I will discuss ‘professionalism’ and last, I will touch on the tremendous opportunities that we have at this time.
Fourteen years ago, very few understood the SMSF sector, let alone its role in our nation’s future prosperity. Its survival was hanging in the balance and desperately in need of a ‘leader’.
It is now the largest sector in the superannuation industry. Since those dark days in 2003 when SMSFs were under real threat, the sector has had six-fold growth in funds under management and more than doubled in the number of funds. These are phenomenal statistics and something which each of you should be immensely proud. It is your doing.
Predictions by Rice Warner in fifteen years’ time have SMSFs continuing to be a standout leader in Australian superannuation doubling again in size and numbers.
As a direct result of the SMSF Association’s contribution to that growth:
ˇ      There is public recognition of the SMSF specialist and the SMSF profession. Others tried and failed, but we continue to grow.
ˇ      Career pathways from high school to PhDs exist through the Association’s specialisation programs and we now have our first graduates from the University post-graduate SMSF specialist programs.
ˇ      Our strong advocacy programs have improved access to superannuation and advice. We punch well above our weight.
Today, SMSFs are now integral to our superannuation system and national prosperity. They are too big to ignore.
The growth, and the importance of SMSFs and their communities can be tracked directly to your Association and your input.
Despite at time significant headwinds, we have never wavered from our Vision “to enable Australians to take greater control of their own destiny through a sustainable SMSF community”.
Our Mission has always been to ‘lead the professionalism, integrity and sustainability of the SMSF sector’. These enabled us to navigate the constantly changing environment in which we exist professionally.
There is no better example of this than last year’s far-reaching changes to superannuation in the May Budget.
Our strong advocacy ensured that concessional and non-concessional caps were not further reduced.
We maximised the benefits of the new rules, particularly for women, and SMSFs are now the best placed to adjust to new laws such as the $1.6 million transfer balance cap and flexible contribution rules.
And this leads to my second point.
The word “profession”, at its core, it’s an indicator of trust and expertise.
A ‘professional’ is someone who is independently qualified by a recognised body, governed by a code of ethics, committed to excellence, integrity, professional development and the promotion of the public good within their expert domain.
While we have advocated strongly and you have personally committed as a professional, we have left it to others and government to determine what our profession really looks like. Too often in the past, parts of our industry preferred to pull back towards the lowest common denominator instead of making the tough decisions to move forward into a new professional era.
Often fear, costs and efficient systems design were reasons for the focus on products instead of people and the building of a profession.
It is time to take control.
Research shows trustees number one motivation for being an SMSF trustee is control.
Our members are early adopters. But now as role models you must demand your peers and others in your supply chain join in the journey. Help them commit to their learning journey and membership.
I challenge you now to take control of your profession. I challenge you to be a leader.
It is your responsibility to continue building the profession by bringing everyone in the supply chain into your professional community, whether it be at the entry administration level or the elite strategic advice level. You should maximise and leverage opportunities at every level of your business.
Don’t settle for mediocrity because it is safe or what the government sets a baseline for you – be the cornerstone in creating your future profession. Take a good honest look at the opportunities before you.
You need to want co-regulation. Create a professional legacy for others to follow.
Raising competency and knowledge is not easy, nor is it quick, but it is necessary. To create trust, you, as advisors, accountants, auditors and administrators, must maintain standards expected and demanded of professionals.
It is absolutely necessary. To think otherwise is delusional. Truly professional advice will create trust with your clients. It will help them make better decisions.
It will lead to a better outcome for you and the SMSF industry.
It will set you apart in a crowded market.
To my last point, the future is in our hands and the opportunities held within that future are enormous.
Your clients have never been in greater need of your trusted professional advice.
As I mentioned, last year’s budget changes have provided the SMSF sector with unexpected but significant advantages, which if understood, can add such significant value to your clients. There has never been a better time to engage and build trust and confidence.
I know that due to the complexity of SMSFs, you as advisors will have opportunities to add meaningful value well into the future.
Technology and digital innovation will create new tools to assist those who commit to their own future professional development and help them stand out.
I also believe future advice will be part technology and part human. If you look to the US market you see the growing need for advice in retirement implementing a hybrid advice solution.
You and your peers are absolutely necessary to the SMSF industry, but the future will not again tolerate a product story.
You can be leaders.
In fifteen years’ time, just imagine what the industry will look like to efficiently advise, service and invest in the predicted $1.2T of funds under management in SMSFs. 
We must all continue to demonstrate that SMSFs can be a vehicle for people to take control of their destiny.
Others in our super sector are threatened by the power of SMSFs.
They continue to oppose us.
Others claim to be run for the benefit of members. SMSFs are run BY the members.
As your representative Association, we will continue to engender integrity and trust for consumers and government in this sector. It is critically important that we maintain and further develop a highly competent, well-regulated, competitive SMSF sector.
I am confident you will meet these challenges and opportunities in all their different forms. You have done so in the past and will continue to so, knowing 1.1m people have already placed their faith in us and knowing that this figure will also double.
We cannot let the future SMSF Trustees down.
John F. Kennedy said in 1962 about why it matters to go to the moon: "We choose now, not because it is easy but because it is hard…..this challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win.”
We are ‘flying to the moon’ to achieve our future as professionals who are trusted by Australians.
I have trust in you.
I know you will accept this challenge and I know you will win.
Be proud of where we sit as an industry but be vigilant to ensure the SMSF industry fulfils its potential and its place in the Australian economy.
Andrea Slattery is managing director and chief executive officer, SMSF Association, and can be contacted <a href="https://www.smsfassociation.com" target="_blank">here</a>.
This is an excerpt of the speech given to the 2017 SMSF Association National Conference.
 
</body></html>

jchancellor-FAypfDUnLy

SMSFs integral to our superannuation system: Andrea Slattery

<html><body>
GUEST OBSERVER
Governments and private companies could save millions of dollars and drastically reduce their carbon footprint with a simple adjustment to the way they use air conditioning.
Air conditioning systems were generally fixed at what is considered to be an optimal 22 degrees based on an arbitrary standard which took no account of outside temperatures and employee comfort levels. It turns out that we heat and cool the built environment to a fixed 22 degrees. Why? Because it is the thermal comfort level of a forty four year old man which was determined by the Americans in the 1950s. I kid you not. This is an arbitrary point that makes little sense and which costs governments and industry millions of dollars a year to say nothing of the impact on the environment. In 2008 the United Nations, as a publicity stunt at its New York headquarters, adopted a temperature range of 19-25 degrees. A month later the UN estimated the savings at one hundred thousand US dollars. In Australia some 40 percent of our energy is consumed in the built environment and a large amount of that energy is used in heating and cooling. The question is why wouldn’t you adopt some flexibility with regard to your air-con temperature settings? If we did this in Australia in office buildings and shopping centres, it would save a hundred million dollars and three hundred thousand tonnes of carbon emissions per year and it would not cost a cent. Now let’s run that out through all the other property in the country including residential and then run that out around the world and we are talking billions of dollars and millions of tonnes every year. Irrespective of the dollar savings, it was incumbent upon governments and industry to make that adjustment as part of their social responsibility.
For more information, <a href="https://www.savills.com.au/research/australian-research/life-out-of-balance.aspx" target="_blank">click here</a>.
Tony Crabb is national head of research, Savills Australia and can be contacted <a href="https://www.savills.com.au" target="_blank">here</a>.
</body></html>

Air conditioning at 19 to 25 degrees would save millions of dollars: Tony Crabb

<html><body>
GUEST OBSERVER
Australians know that adequate savings can help provide for a rainy day, help a family put down a deposit on a home, or ensure a comfortable retirement.
Debt also offers a way for households to make purchases that would otherwise be impossible and to achieve a higher current standard of living. Debt invested into an asset that will also grow in real value and is able to be serviced without placing too much ﬁnancial pressure on a household, is generally considered to be good debt.
The key is balance. Since the 2008 financial crisis, Australians have actually decreased their propensity to take on debt and have increased their savings. But debt rates still remain uncomfortably high and there is evidence that this savings discipline is beginning to fade. Have we grown too comfortable with debt?
<h2>Saving more, but more indebted</h2>
Bankwest Curtin Economics Centre’s second ‘Focus on the States’ report, <a href="https://business.curtin.edu.au/local/docs/BCEC_Beyond_Our_Means_Report.pdf" target="_blank">Beyond our Means? Household Savings a Debt in Australia</a> finds Australians have more debt and are more comfortable with it.
While household savings portfolios have seen an increase of 54% in real terms since 2005, household debt has risen by 51% in the same period. Many households are able to access and service this debt, with higher debts associated with higher incomes. On average, Australia’s estimated 9.1 million households have savings in the form of ﬁnancial assets of $340,900 and debts of $148,700.
However, there is a gulf between those at the top of the distribution and those at the bottom. The inequality in the distributions of household savings and debt are considerably worse than the much talked about inequality in incomes.
The average household disposable income of the top 20% of savers is less than four times those in the lowest savings quintile. However, their savings at an average of almost $1.3 million is 200 times the bottom 20%. This top quintile may receive one-third of all income, but they own three quarters of the total value of savings in the form of ﬁnancial assets.
 
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/85216/width668/image-20150616-5810-145cq3d.JPG" alt="">
Average household savings by savings quintile, Australia 2015 (mean $‘000)
The trifecta of debts, low (or no) savings and low incomes presents many low economic resource families with an unenviable challenge to maintain an acceptable quality of life for themselves and their families on a day-to-day basis.
Since the global financial crisis, the household savings rate have risen, with households exhibiting discipline in their expenditure at a time when the economic outlook was uncertain. In an economic downturn income can decline quickly while reining in spending can be more diﬃcult, for both households and governments. Debts can quickly get out of hand and become unmanageable in this situation.
<h2>Becoming used to debt</h2>
While Australian households have decreased their propensity to take on debt and have increased their savings in the post-GFC period, household debt still remains three times higher now than what it was 20 years ago. Australians are now more comfortable with debt and currently hold debt equal to 1.5 years of income, whereas in the past they had only debt equivalent to six months of annual income.
The share of debt associated with investment property loans has tripled from one-tenth to three-tenths between 1990 and 2015.
Unlike previous generations accustomed to more rigid ﬁnancial products, current households can access a greater number of ﬁnancial products, which have arguably become more complex and more ﬂexible.
This flexibility delivers beneﬁts, but with complexity comes risk and it is important to promote good ﬁnancial decisions and encourage a longer term outlook. <a href="https://theconversation.com/your-home-as-an-atm-home-equity-a-risky-welfare-tool-22000">Mortgage equity withdrawal has become a popular tool</a> to derive a higher current standard of living by using the family home as collateral.
More households now use these schemes to smooth consumption or relieve short-term ﬁnancial pressures. But this may have contributed to the average mortgage debt as a proportion of property values almost tripling over the last 25 years, rising from 10% to 28% since 1990.
 
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/85219/width668/image-20150616-5832-ijpxwv.JPG" alt="">Ratio of housing debt to housing assets, June 1990 to December 2014
 
Another issue is the use of superannuation savings to pay down mortgage balances, leading retirees to rely more on the pension.
So are we living beyond our means? With household debt to income ratios three times higher now than a quarter of a century ago, household debt up by over 50% in real terms over the last decade and the debt of those approaching retirement (55-64 year olds) up 64% in real terms, it would seem on the face of it to be true.
However, the reality is more nuanced. Household savings are growing faster than income and 8.5 cents in every dollar is being saved, and there is now $2 trillion tucked away in superannuation, while riskier investments are making way for more a more conservative approach. This is far better than we were 10 years ago, but with a note of caution that savings are again on the decline.
 
Alan Duncan is Director, Bankwest Curtin Economics Centre and Bankwest Research Chair in Economic Policy at Curtin University. You can follow him on Twitter <a href="https://twitter.com/bankwestcurtin" target="_blank">here</a>.
Rebecca Cassells is Adjunct Associate Professor, Bankwest Curtin Economics Centre at Curtin University. She can be contacted <a href="https://business.curtin.edu.au/research/centres-institutions/bankwest-curtin-economics-centre/staff.cfm/Rebecca.Cassells" target="_blank">here</a>.
</body></html>

Savings

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Savings

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News