<html><body>
Australian employers are still suffering under some of the world's most expensive retail rents, according to the latest figures released by CBRE, but local business may be in for a reprieve if the European debt crisis begins to take hold.

Local retailers have been suffering under higher rents for some time, only pressured further by the arrival prominent international stores. But Premier Retail chief Mark McInnes described at his annual general meeting yesterday how he's able to negotiate some discounts.
The former David Jones chief described how he's able to play hard ball and focus on internet sales in order to gain some much-needed discounts.
"Portmans in Canberra Centre is the most obvious example," he said. "We're doing $800,000 in that store – it's a terrific store for us – but we're paying $400,000 in rent and we're basically breaking even."
"We said to the landlord, "well, we're going to shut. We'll put an ad in theCanberra Times saying 'Go to Portmans.com.au and if you don't want to go online, Go to Belconnen'."
"And our rent reduced 30%."
The story is an unusual reprieve in a country where retail rents are among the highest in the world, and landlords are keen on maintaining their returns. According to the latest CBRE report, Sydney was the third most expensive city at $US1,224 per square feet every year, while Melbourne and Brisbane followed in 8th and 9th place.
Retailers have been calling for landlords to lower their rents for some time, with even prominent chains such as Baker's Delight complaining that prices are too high.
As retail experts point out, the spending environment isn't getting any better, either – the mid-year budget outlook released yesterday shows GDP will reach just 3.25% over the next two years, down from 4% and 3.75%.
With the current spending environment set to remain for quite awhile, retailers are fearful landlords will continue to demand the same amount of money.
But Simon Fonteyn of Lease Info says this may not be the case, especially if the European debt crisis spreads to Australia. "It's a complicated situation," he says.
"The critical period will be over the next three months. If things go well, then slower GDP growth may not be as significant," he says.
Fonteyn notes the GDP forecasts, and agrees that spending is subdued, but says it is difficult to predict how landlords will react over the next few years given the current turmoil in the market.
"One thing to bear in mind is that structural adjustments occur when leases come up for renewal. There is an adjustment process that changes when tenants are struggling and signing leases," he says.
"The other issue at the moment is that you're having a bit of a situation in Australia where there is a stratification of the retail market. Some sectors are doing well, and others such as middle market fashion and accessories are doing very poorly."
On the other hand, he says, some areas such as take away food, coffee and cafes are doing very well, and retailers may expect some sort of rental increase over the next couple of years in those sectors.
"The fortress centres with strong demographics have waiting lists. The bigger landlords are playing as hard as ever, because they have demand that exceeds supply."
"GDP is not the best indicator of how retailers are going to fare. Something that could be as impactful is if we had a drop in interest rates, which looks likely now."
Another issue is the European crisis, Fonteyn says, with the effects able to spread to Australia. If retail spending continues to fall, he says that could have the effect of keeping international pressure out of the market.
More international shops have been finding their way to Australia recently, and in some cases, this is pushing up rents.
"Maybe if the market is perceived to be cooling a bit, the internationals might not get as excited about coming here, and it could have the effect of dampening international competition."
This article originally appeared on<a href="https://www.smartcompany.com.au/" target="_blank"> SmartCompany</a>.
 
 
 
</body></html>

cknowlton-QnEa6ntUYP

How to get a discount on your retail rent, Mark McInnes style

<html><body>
Retail veteran Gerry Harvey has downplayed the prospects for a retail recovery, saying at the Harvey Norman annual general meeting yesterday there is nothing to suggest the environment will get any better soon.

"I don't see any light at the end of the tunnel," he said yesterday. "There is zero light. There is nothing to suggest it will get better."
Harvey described local operations as ''treading water'' due to indifferent consumer spending and massive price deflation,
The later has led the company to reposition its shelf space away from electronic goods, which have suffered the largest falls in price.
Harvey used the example of a 32-inch colour TV advertised recently for $299. ''We were selling those things for $699 a year ago," he said.
''The whole market is in a state of extreme change at the moment so we've had to look at our business and say you can't solve this problem with TV sales because we'll have to sell three times as many to make up the difference."
"We're making more sales of everything, but it's all cheaper," he said.
Harvey Norman recently posted a 20% fall in first-quarter profits and a 3.8% decline in 2012 first-quarter sales.
The retailer launched an online store this month in a bid to respond to the rise of cheaper online competitors.
''I think this Christmas will be okay, but this is the first time that I can remember where I haven't said this Christmas will be the best Christmas ever," Harvey said.
His comments contrasted with the more upbeat sentiments of Premier Investments chairman Soloman Lew at his company's annual general meeting, also yesterday.
Premier owns several fashion outlets including Just Jeans, Portmans, and Dotti, as well as stationery store Smiggle.
Despite describing the retail environment as "extremely challenging", Lew pointed to a rise in retail trade last month.
''Trade in October improved on the trend we saw in August and September,'' he said. ''In addition, November is on track."
Lew said that if current conditions held and the group had a satisfactory Christmas, Premier's Just Group fashion holding expected 2012 earnings before tax and interest to $95 million, up from $80 million.
Nonetheless, the company relied on growth in its Peter Alexander and Smiggle stores to offset losses elsewhere.
Premier retail chief Mark McInnes said "we've opened up to 30 Peter Alexander and Smiggle stores in the last two months, and they are our growth assets with high gross margin and great product differentiation."
"In our core apparel brands, where we are making a loss or we are marginal or break-even, we are not renewing leases and we are closing based on the rental review."
McInnes said the company looked to Asia for growth.
"On our doorstep there are countries like South Korea, Japan, China, and Singapore – and those populations, when you add them all together, are ...  hundreds of millions of people."
These were sentiments shared by Harvey Norman.
Managing director Katie Page told Business Day the company's "biggest ray of sunshine is Asia."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
 
 
</body></html>

Why Gerry Harvey is so down on the retail sector

<html><body>
A return of first-home buyers to the market will revitalise the housing markets in all capitals except Melbourne in 2012, according to Angie Zigomanis, senior manager of residential property at BIS Shrapnel.
Zigomanis <a target="_blank" href="https://www.propertyobserver.com.au/residential/first-home-buyers-to-drive-2012-housing-price-recovery-bis-shrapnel-s-angie-zigomanis/2011112252494/Page-1">says there are about 130,000 potential first-home buyers nationwide in any given year</a>. He says government incentives such as the first-home buyer’s boost and stamp duty concessions encourage potential first-home buyers to accelerate their decision to enter the market but does not create more demand from this market segment.
He notes after government incentives end the number of first-home buyers entering the market decreases as the segment normalises back to its underlying level.
About 190,000 first-home buyers entered the market in 2009 as a result of this accelerated demand, and Zigomanis says that the slowdown in this market segment in 2010 and 2011 was a result of first-home buyer interest returning to its underlying level.
He points to <a target="_blank" href="/news">figures showing that first-home buyer lending enquiries have started to pick up</a> as part of a trend that he says will cause prices to rise in all capitals except Melbourne in 2012 as a result of this interest “trickling up” across all market sectors.
“First-home buyers represent a key driver of the residential market, underpinning demand for entry-level dwellings, which in turn creates increased demand across the market,” Zigomanis says.
However, he expects Melbourne prices to remain largely flat in 2012, as supply is set to outpace demand in the Victorian capital as a number of large residential projects are completed next year.
</body></html>

First-home buyers will drive housing recovery in all markets but Melbourne next year: BIS Shrapnel's Angie Zigomanis

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
{yoogallery src=[images/stories/november30makepeace]}
Cashed-up holidaymakers who were hoping to spend their summer break on Makepeace Island will have to make other plans – Sir Richard Branson’s $16,890-a-night Noosa getaway was fully booked over Christmas and New Year’s and is busy over the summer period.
Branson opened his private retreat to the luxury holiday market <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/sir-richard-bransons-noosa-getaway-for-hire-%E2%80%93-for-%2417000-a-night/2011071150769" target="_blank">earlier this year</a>, and spokeswoman Kirsty Aitken says it has proved popular with well-heeled travellers.
“The interest we have had after just four months of opening has been overwhelming, and we are thrilled with the bookings we have received,” she says.
Aitken says many of the island’s visitors have been well-known names who choose to holiday there to escape the pressures of fame.
“Our clients often book the island because of its seclusion and to meet their desire in most cases not to have their celebrity known,” she says.
Branson, along with Virgin Blue executives Brett Godfrey and former colleague Rob Sherrard, bought the heart-shaped island for $2.86 million in 2007. It rents for between $7,900 per night for up to eight guests during the off season to $16,890 per night for up to 22 guests during busy periods.
There is a main house, three two-bedroom villas and a four-bedroom guest house. It has a boathouse, lagoon pool and a 15-person spa.
Guests travel to and from the island by riverboat, and it contains a host of facilities, such as an outdoor cinema and a full-sized tennis court, to keep them occupied.
When he announced that Makepeace island would be available to rent, Branson said: "When neither Brett nor myself are visiting Makepeace, we will make the island and its facilities available for others to enjoy the tranquillity of what is a very special place.”
One can assume the Virgin chairman will be spending more time on his island the next time he is in Australia.
 
</body></html>

Sir Richard Branson's Noosa getaway, Makepeace Island, booked out for summer in the tropics

<html><body>
{yoogallery src=[images/stories/november30goodwill]}
The California house where friends budding writers Matt Damon and Ben Affleck lived when they were writing the Academy Award-winning screenplay for the 1997 movie Good Will Hunting is up for sale. 
The four-bedroom, 19th-century house has fallen into disrepair and is need of renovation. Its listing information says it is "Hansel and Gretel-inspired", and it has views over LA from its hilltop position. 
Damon and Affleck lived in the house as part of a string of residences when they were young and broke relative unknowns. It is being marketed by <a target="_blank" href="https://www.kwlosfeliz.com/">Keller Williams Los Feliz </a>agent Michael Locke with price hopes of US$779,000. It has been on the market for almost 200 days and had its price hopes cut by US$50,000 earlier this month.
</body></html>

House where Matt Damon and Ben Affleck wrote Good Will Hunting for sale

<html><body>
<table width="447" cellpadding="0" cellspacing="0" border="1"></table>
<table width="447" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="114">
Suburb
</td>
<td valign="bottom" width="85">
Postcode
</td>
<td valign="bottom" nowrap width="247">
Median sale price for houses
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
CHARNWOOD
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$385,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
NGUNNAWAL
</td>
<td valign="bottom" width="85">
2913
</td>
<td valign="bottom" nowrap width="247">
$425,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
HIGGINS
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$427,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
RICHARDSON
</td>
<td valign="bottom" width="85">
2905
</td>
<td valign="bottom" nowrap width="247">
$430,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
MACGREGOR
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$431,250
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
HOLT
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$439,990
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
LATHAM
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$442,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
SCULLIN
</td>
<td valign="bottom" width="85">
2614
</td>
<td valign="bottom" nowrap width="247">
$455,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
CALWELL
</td>
<td valign="bottom" width="85">
2905
</td>
<td valign="bottom" nowrap width="247">
$458,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
GILMORE
</td>
<td valign="bottom" width="85">
2905
</td>
<td valign="bottom" nowrap width="247">
$465,000
</td>
</tr>
</tbody></table>
 
Source: RP Data
 
 
 
</body></html>

Top 10 cheapest suburbs in Canberra for houses: RP Data

<html><body>
Many would-be vendors whose properties have been on the market for more than three years are still unwilling to offer deep discounts to entice buyers, notes SQM Research in its latest list of the properties that have been on the market the longest.
"With only one significant discount – number five on the list, which is 290 Viveash Road, Swan View, WA (a property which has also been a regular on our top 10 most discounted properties), the remainder of the homes in this top ten have not been excessively discounted – considering you would assume their vendors may be becoming increasingly eager to sell," notes SQM director Louis Christopher.
<a target="_blank" href="/news">Houses are currently taking an average of 56 days to sell</a>, according to RP Data.
SQM's list coincides with a recent report by PRDnationwide that shows that in the Queensland suburbs with the largest drop in residential sales over the six months to June this year, house prices did not fall much. In other words, <a target="_blank" href="https://www.propertyobserver.com.au/auctions/queensland-vendors-prefer-not-to-sell-at-all-rather-than-sell-at-a-deep-discount/2011112152454">vendors appeared intent on holding onto their properties </a>rather than selling in suburbs where prices were declining.
Christopher says that many of the properties' owners may be investors who have the luxury of time.
"Potentially some of these homes may be investment properties and if so, their owners may not need to vacate the property hastily or may not have committed elsewhere, so whether their home sells today, tomorrow or next year could potentially be of minor consequence," he says. 
However, he suggests that vendors may simply be unwilling to meet the market.
"Alternatively, there is always the possibility that these homes are cases which SQM Research has often referred to as 'stubborn Vendors' – owners who refuse to take any less than a certain amount of money for their property, regardless of the current market position because they are extremely reluctant to lose any money," Christopher says.
"The irony of this, of course, is that the longer their home is advertised the more likely they may have to discount it as house hunters are becoming increasingly cluey about market value and homes that have begun to go 'stale'.
"More often than not, when individuals see a home that has been advertised for an extensive period of time, they are either going to catch onto the fact that it may be overpriced or begin to think that there is something wrong with the property," he says.
<h2 style="font-size: 18px; line-height: 21px;">1</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007103693">11 Ottiwell Street, Woorim, Queensland, 4507</a> (pictured)
On the market since: April 19, 2008
Initial asking price: $560,000
Current asking price: $499,000
Reduction: 11%
Days on market: 1,311
Last Sold For: $125,000 
Date of Last Sale: April 12, 2001
 
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007685342" target="_blank">5090 Tasman Highway, Buckland, Tasmania, 7190</a>
On the market since: May 18, 2008
Initial asking price: $250,000
Current asking price: $195,000
Reduction: 22%
Days on market: 1,283
Last Sold For: $68,500
Date of Last Sale: May 30, 2003
 
 
3
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007854879" target="_blank">19 Wellington Street, Oatlands, Tasmania, 7120</a>
On the market since: May 22, 2008
Initial asking price: $260,000
Current asking price: $205,000
Reduction: 21%
Days on market: 1,279
Last Sold For: $145,000
Date of Last Sale: November 22, 2003
 
 
<h2 style="font-size: 18px; line-height: 21px;">4</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007162731" target="_blank">1403 Magenta Drive, Magenta, NSW, 2261</a>
On the market since: May 22, 2008
Initial asking price: $600,000
Current asking price: $535,000
Reduction: 11%
Days on market: 1,276
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" target="_blank">290 Viveash Road, Swan View, WA, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2.29 million
Current asking price: $1.45 million
Reduction: 37%
Days on market: 1,264
 
<h2 style="font-size: 18px; line-height: 21px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2006717702" target="_blank">30 Charles Street, Triabunna, Tasmania, 7190</a>
On the market since: June 22, 2008
Initial asking price: $235,000
Current asking price: $195,000
Reduction: 17%
Days on market: 1,248
Last Sold For: $173,000
Date of Last Sale: November 15, 2005
 
 
<h2 style="font-size: 18px; line-height: 21px;">7</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2006781491">22 Beach Street, White Beach, Tasmania, 7184</a>
On the market since: July 1, 2008
Initial asking price: $250,000
Current asking price: $195,000
Reduction: 22%
Days on market: 1,239
 
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007358900" target="_blank">186 Beenak Road, Gembrook, Victoria, 3783</a>
On the market since: September 5, 2008
Initial asking price: $1.025 million
Current asking price: $850,000
Reduction: 17%
Days on market: 1,171
 
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008048160" target="_blank">90 Franklin Parade, Encounter Bay, SA, 5211</a>
On the market since: December 1, 2008
Initial asking price: $1.55 million
Current asking price: $1.39 million
Reduction: 10%
Days on market: 1,085
Last Sold For: $675,000
Date of Last Sale: August 23, 2005
 
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007601490" target="_blank">28 Julia Street, Swansea, Tasmania, 7190</a>
On the market since: February 2, 2009
Initial asking price: $240,000
Current asking price: $215,000
Reduction: 10%
Days on market: 1,019
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
SQM Research also offers a list of the <a href="https://www.sqmresearch.com.au/top100bargains.php" title="SQM Research" target="_blank">Top 100 Biggest Bargains in Australia </a>for sale.
</body></html>

The longest 10: Three years on the market, and not budging much on price

<html><body>
The final weekend of the spring property selling season has come and gone, and experts are underwhelmed as sales remained broadly in the line with the trend set in the first half of the year despite a slew of new listings hitting the market.

Most believe any improvement will not be seen until February or March, but also warn the European debt crisis could prolong the current trend if credit remains tight and banks roll back on home lending.
"That is the big danger for us," says SQM Research managing director Louis Christopher. "The threat to the housing market is that banks may severely ration their home lending."
Clearance rates in both Melbourne and Sydney remained around 50% over the past weekend, despite the number of listings increasing by several hundred.
APM economist Andrew Wilson says the result is indicative of the past season, with home buyers mostly waiting until they could get the best deal possible.
"Melbourne has certainly bumbled along the bottom of the market, and there's no real sign of a pick up there. We've been slightly more optimistic about Sydney, but we've had such a mixed news period that it's been extremely hard."
Wilson says the fear of another recession and the ongoing debt crisis in Europe has kept buyers away, and that fear will continue into the next year.
"We're starting to look like we'll get some headwinds next year, but financial markets are looking at another restriction of credit, and that will be a big change if that occurs."
"The potential in Europe is that the debt crisis worsens and the housing market is tightened. And that's not good news. The upcoming budget outlook has talk surrounding it of reduced tax receipts for the government, and that's more negative news."
While Wilson says while the season certainly hasn't been bad, the lack of sales in proportion to the higher number of listings is disappointing.
"It's still a pretty good picture, and we've had a reasonable, yet subdued, spring. It's just the national financial situation at the moment which has put us on watch."
According to the Real Estate Institute of Victoria, Melbourne recorded a clearance rate of 53%, with a total of 899 auctions. Chief executive Enzo Raimondo said the result shows how "evenly balanced" the market is.
Sydney recorded a 54.9% result, with Adelaide recording 16.7%.
Christopher says despite the macroeconomic situation, the market is ready for a recovery in 2012.
"We've had a rate cut, we'll see if that helps. That movement could certainly stimulate the market next year."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/property/20111128-property-experts-rate-spring-selling-season-as-disappointing-warn-europe-debt-crisis-could-harm-recovery">SmartCompany</a>.
 
 
 
</body></html>

Property experts rate spring selling season as disappointing, warn Europe debt crisis could harm recovery

<html><body>
Home ownership is the cornerstone of the great Australian dream, as it can provide financial and emotional security for households and typically represents their largest lifetime investment.
Housing investment also plays a vital role within the economy, as it can influence the pace of general economic growth, while providing an important fiscal and monetary policy nexus between governments and households.
The residential building market comprises the construction of new single-unit (detached) housing (principally built by firms in the industry), new multi-unit apartments and townhouses, and alterations and additions to existing dwellings (i.e. home improvements). The value of total work done on residential buildings was about $49.3 billion in 2011-12, which represents flat growth over the past five years (0% per annum), while the value of work done on new single-unit housing construction has contracted by an average 1.5% per annum to currently total $26.8 billion (down 1.5% on the previous year). The number of single-unit housing commencements totals about 97,000 in 2011-12, down by 13.5% on the recent cyclical peak at 112,141 units in 2009-10.
The industry generates about 75% of its annual revenue from building work on new single-unit housing, about 7.5% from the construction of apartments and townhouses, 15% from alterations, additions and repairs to existing dwellings (i.e. home improvements) and the balance from speculative property sales (about 2.5%).
Total House Construction industry revenue is about $30.3 billion in 2011-12, down 2.3% from the previous year and representing a decline by 1.5% per annum over the past five years (matching the trends in total investment). Industry value added currently totals $8.33 billion, or 0.7% of Australia's GDP.
Housing investment trends were subdued during the mid- to late 2000s by the combined influence of weaker general economic conditions, deteriorating affordability and the tightening lending arrangements associated with the global financial crisis and the collapse of the US subprime mortgage market. The underlying demand for new housing has been supported by accelerated net population growth, which has exceeded 400,000 people annually over recent years.
House building activity in southern Queensland and northern Victoria was interrupted by the devastating floods of January 2011. The initial impact of the floods resulted in delayed work on current construction projects caused by flood damage to partly constructed housing and materials, and the diversion of skilled tradespeople to work in the severely affected areas where they could help homeowners.
Early in the next five years, the reconstruction work following the floods, coupled with strong underlying demand for new housing, will support further cyclical expansion in the industry's performance ahead of a minor correction in the longer term. The industry is forecast to maintain cyclical revenue growth averaging 3.5% per annum over the five years through 2016-17 to reach a record $36 billion, matching the pace of GDP growth (3.4% per annum).
Total direct employment by this industry is about 90,000 people in 2011-12, although the industry has a heavy reliance on a subcontracted labour force. The total industry workforce currently numbers about 300,000 to 350,000 full-time equivalent people. Wage costs absorb about 15% of annual industry revenue, while payments to subcontractors and employment agencies and for professional and technical services absorb about 35% of industry revenue.
The industry comprises about 35,000 establishments and is characterised by its many small to medium-size contractors, which operate in relatively narrow regional markets. The four largest contractors generate less than 10% of annual industry revenue and construct about 10% of annual commencements. Australia's leading homebuilders include BGC (Australia), Mirvac Group, Dale Alcock Homes, Henley Arch, AV Jennings, Metricon Homes and Devine Limited, each accounting for about 1.0% to 2.5% of the annual industry revenue and housing starts.
Industry outlook
Pent-up demand for new housing stemming from the recent surge in Australia's population, coupled with solid general economic performance, will underpin record housing construction activity over the next few years. However, a minor cyclical correction in demand conditions is expected late in the period as housing affordability deteriorates and some of the current demand is satisfied.
Divergent trends will appear in the housing market over the next five years. Investment is currently constrained by the price of entry into the housing market, by high levels of household debt and steadily rising mortgage interest rates. In addition, the lending practices of mortgage initiators tightened in the aftermath of the subprime market fallout in the United States and the global financial crisis. On the other hand, Australia weathered the global economic storm better than most countries. Households continue to have a capacity to take on debt, household savings are climbing and there has been an unprecedented surge of population, which puts upward pressure on housing demand. IBISWorld forecasts renewed cyclical growth in new housing construction with record levels of housing starts and investment.
Housing Construction industry revenue is forecast to average growth of 3.5% per annum over the five years through 2016-17, matching the investment trend in the single-unit housing market, and the projected pace of Australia's GDP growth (3.4% per annum). Annual industry revenue is forecast to average $35.5 billion per annum over the five years through 2016-17, or 10.6% above the average of $32.1 billion per annum for the previous five years through 2011-12. The number of single-unit housing commencements will climb by an average 2.5% per annum over the next five years.
Australia has high pent-up underlying demand for accommodation, particularly among first home buyers, stemming mainly from the unprecedented growth in the resident population over recent years (natural and immigration), which has fuelled rental yields and property values and lifted the underlying demand for new housing construction. The effect of escalating land values and material prices will cause housing demand to swing towards the construction of multi-unit apartments and townhouses, particularly for first home buyers and empty nesters who seek the lifestyles of inner-urban locations.
Investment by first home buyers in single-unit housing will be concentrated in new housing subdivisions in the outer fringes of metropolitan areas, and all the state governments have moved to open up land for residential development.
Reconstruction after the floods
The industry will continue to derive additional impetus from the reconstruction of housing in southern Queensland and northern Victoria in the aftermath of the 2011 floods. The total value of housing construction, repairs and renovations will be $4.0 and $5.0 billion, which includes about $2.2 billion for the reconstruction of single-unit houses (spread over the three and half years to 2015) and about $1.4 billion on renovations and repairs undertaken by this industry.
The reconstruction experience of New Orleans in the United States, following Hurricane Katrina in 2005, suggests delays in new construction activity will stem from a combination of disputed insurance payouts, bureaucratic red tape (e.g. building approvals on flood zone and relief payments), bottlenecks due to shortages in materials and skilled labour, and changed zoning and building codes in response to floods.
Tradespeople will be attracted to the flood-affected regions by higher contract rates, which will have a knock-on effect for the rest of the country. In the near term, the more remote regions of northern Victoria and central Queensland will face escalating construction costs and delays due to materials shortages.
Profit performance
The industry's profit performance is forecast to continue to strengthen considerably over the next five years, and is likely to be strongest for the larger-scale builders that combine construction with land development activities (particularly lifestyle community developments) and those servicing the reconstruction effort.
Industry gross operating surplus is forecast to climb by an average 6.0% per annum over the five years through 2016-17, increasing to about a 15% share of industry revenue, up from 12.5% currently. The improved profitability is expected to support growth in industry value added averaging 4.0% per annum over the next five years, and industry wage costs are projected to grow by 2.5% per annum, reflecting the growth in direct employment (1.5% per annum) and higher real wage rates, as demand conditions tighten in the skilled labour market (particularly in Western Australia and Queensland).
Housing investment rebounds
The pent-up underlying demand for owned and rental accommodation, fuelled by population growth exceeding 400,000 per annum since the late 2000s, and the stabilisation of mortgage interest rates, points to the substantial upswing in total housing investment over the next few years. Improved general economic conditions should support housing investment trends and GDP is projected to climb by 3.5% to 4.0% per annum over the next three years to 2014-15, generating similar growth in household income.
Although housing affordability conditions remain generally unfavourable, with particularly high serviced land values, the First Home Owner Grant still applies (distributed by state and territory governments) and most states also provide generous subsidies for newly constructed dwellings, regional housing incentives and stamp duty relief.
The value of new single-unit housing construction will climb by 7.0% to 8.0% per annum over the two years to 2013-14, maintaining solid growth of 3.0% to 4.0% per annum over the next two years to total a record $33.5 billion by 2015-16. The number of single-unit housing starts will climb commensurately with accelerated growth in the short term, eventually reaching a cyclical peak at 115,250 dwelling units in 2015-16, or about 19% above its current cyclical trough (and about 3.0% above the previous cyclical peak in 2009-10).
The upswing of investment will cause industry revenue to surge by 7.3% per annum over the next two years, before moderating through the mid-term, reaching a record $37.5 billion by 2015-16 (23.8% above its current level). This performance will fuel robust growth in operating profit and will lift direct employment by 8,500 people over four years (about 2.0% per annum) to peak at 97,000 people in 36,250 establishments. The total industry workforce, including subcontracted labour, will climb to about 400,000 people.
Demand moderates
The industry's prospects are expected to moderate in the longer term as investment into single-unit housing falls 5.2% to settle at $31.8 billion in 2016-17. This turning point corresponds with the typical four- to five-year cycle in housing demand. It also partly reflects the expected tightening of investment finances following several years of strong economic expansion, and the stock of existing homes approaching the underlying requirement. The upward pressure on mortgage interest rates is expected to gather momentum in the mid-term, as government looks to fund the recent deficit increases (increasing the demand for cash), which will push up bond rates on international markets.
Industry revenue is forecast to contract by 4.0% to $36 billion in 2016-17, as the level of new single-unit housing starts falls by over 5,000 to 110,000 dwelling units. The industry will continue to derive solid demand from the home improvements market and the aligned multi-unit apartment market.
Key success factors
<ul>
<li>
Development of a symbiotic relationship with another industry: Close linkages with financial institutions enable adequate funding of activity.</li>
<li>
Membership of an industry organisation: To be eligible for insurance, operators must have membership with the Housing Industry Association or the Master Builders Association.</li>
<li>
Access to highly skilled workforce: It is essential that industry participants have access to a pool of skilled subcontractors or skilled employees, as this industry is prone to cyclical shortfalls in skilled labour.</li>
<li>
Having contacts within key markets: Businesses must have significant promotion of different types of houses at various display centres.</li>
<li>
Ability to expand and curtail operations rapidly in line with market demand: The ability to read the building cycles and to position operations according to likely outcomes is important.</li>
<li>
Access to the necessary amount of land and type of property: The larger-scale players in this market typically develop and promote residential subdivisions, and thereby profit from both construction and property development activities.</li>
</ul>
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
Photograph by Tim Gould
</body></html>

Building solid foundations: Insights into the housing industry

<html><body>
Despite the inclement weather, a South Yarra unit that had not been sold in 30 years attracted fierce bidding at its weekend auction. 
"With rain pouring down outside a large crowd crammed into the lounge room of 6/50 Marne Street, South Yarra as 5 bidders fought it out," says Mark Armstrong of <a href="https://www.propertytycoon.com.au/" target="_blank">Property Tycoon</a>. 
"The bidders were mainly retirees looking to downsize in a blue-chip location and a number of large bids including a $40,000 jump in the closing stages was not enough to convince the vendor to place the property on the market," he says. 
"The bidding stopped at $1.825 million and the vendors dug their heels in and passed the property in. The vendors were aware of two facts: 1) The last comparable sale in the block sold for $1.9 million and 2) properties like this very rarely lose value regardless of the market conditions. 
"Their punt proved to be correct as shortly after the auction the highest bidder purchased the property for $1.9 million."
<img src="/images/stories/marne.jpg">
Sale price:  Sold $1.9 million
Agent quote: $1.6 million plus
% above agent quote: 15.97%
Bidders: Five
Last sold: No sale on record
Average tip: $1,764,794
% Correct tips: 4.44%
<a target="_blank" href="https://www.propertytycoon.com.au/">Property Tycoon</a> allows punters to guess auction results with no outlay.
 
 
 
</body></html>

South Yarra $1.9 million weekend auction tipping result

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]

Joel Robinson

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

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

[smartcode_project_cta:default project_id=4896]

Cassidy Knowlton

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News