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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
You can no longer smell the yeast, but something sure is brewing at the old CUB site in the inner-Melbourne suburb of Carlton.
Since developer Grocon moved in with its heavy machinery and grand ideas, the birthplace of Carlton Draught has become a mecca for sustainable design.
<img src="/images/stories/delta.jpg">
By 2014 Delta (pictured above), the world’s tallest totally timber and totally sustainable building, will take pride of place next the puzzle-like Pixel building (pictured below), which last month picked up the sustainability prize at last month’s Australian Institute of Architects Awards Victoria.
<img src="/images/stories/pixel.jpg">
Pixel includes a system that uses methane emitted from black (toilet) waste to heat water, has an insulating roof garden with wind turbines, enjoys 100% daylight penetration, and claims to not only be carbon-neutral but able to eventually generate enough power to sell back to the grid.
When US Secretary of State Hillary Clinton visited Australia last November she referred to Pixel as a building “Australians – and frankly Americans and others –will be studying as an example,” and even plans to use it as model for new US embassies around the world.
But arguably the biggest vote of confidence came from the Green Building Council of Australia, which awarded the building a perfect score of 105 under its green star rating tool, making it the most sustainable building in the country, and among the most eco-friendly in the world.
This places Pixel well above what the council requires for a six-star rating – its highest prize, which in industry circles translates to “world leadership in construction and design”.
<img src="/images/stories/conventioncentre.jpg">
Australia currently has 43 six-star projects, including the world’s greenest convention centre, the Melbourne Convention and Exhibition Centre (pictured above), and Darling Quarter (pictured below) on Sydney Harbour’s revamped foreshore, which is due to open in September.
<img src="/images/stories/darlingquarter.jpg">
Darling Quarter, which will house 6000 Commonwealth Bank employees, owes its six-star rating to a design that will save 2,500 tonnes of carbon and reduce water consumption by 92%.
 
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The green star certainly is rising - and according to GBCA chief executive Romilly Madew, “11% of Australia’s CBD office space currently has some form of green star certification”.
“That’s because tenants and owners know that green buildings outperform non-green buildings in terms of comfort and productivity,” Madew says.
“What’s more, the property and construction industry can expect higher rents because tenants will pay more to secure lower long-term operating costs.
“Because they are built for high energy and water efficiency they are much cheaper to operate – they consume 26% less energy and generate 33% less greenhouse gas emissions.”
Madew supports a price on carbon, but doesn’t believe it will affect the fast-increasing take-up of Green Building Council of Australia accreditation.
“Green star has already transformed the Australian market to such an extent that it is now a standard consideration in the commercial office sector,” Madew says.
Although it is a voluntary scheme, some developers like Grocon have set their own minimum green-star standards.
“Two years ago our CEO, Daniel Grollo, stated that we would never again build a building that has less than five green stars,” says David Waldren, Grocon’s CUB site general manager.
“We have followed through with that vision, for example with the AXA building and Media House in the Docklands, and we are working very hard to establish six stars as our minimum standard,” he says.
<img src="/images/stories/legion.jpg">
That’s the plan at least for two new Grocon projects: Delta, which will use the same design team as Pixel, and Legion House (pictured above) in Sydney’s CBD, which will use Pixel’s engineers.
“Both projects share Pixel thinking in terms of very high energy-efficiency systems, a focus on water conservation and a holistic approach to the design process,” Waldren says.
“Legion House will be delivered as a high-quality office environment that does not draw any energy from the grid.”
Grocon has not been shy with its push for a low-carbon – and indeed carbon-neutral – design and construction industry.
This month CEO Daniel Grollo threw his support behind the Gillard government’s carbon tax by signing Grocon up to the Businesses for a Clean Economy group, which at the time of writing included 217 companies.
Grollo said in statement: “Personally I’m in favour of a cost on carbon. As I look forward in Australia, I see us at the threshold of some fantastic times, and I get disillusioned when I see some critical decisions that need to be made for our future getting bogged down in politics.”
Madew agrees that the carbon tax will be an important driver of innovation in the industry.
“A price on pollution is one of the most efficient and cost-effective ways for Australia to meet its international carbon reduction targets, while at the same time boosting investment in green technologies, potentially leading to a global competitive advantage.”
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cknowlton-QnEa6ntUYP

It's becoming easier to be green, as more embrace sustainable commercial design

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33 William Street, Williamstown, VIC, 3016
Two streets from the water, this four-bedroom, two bathroom house in the Melbourne suburb of Williamstown offers light and airy living. It has a solar-heated pool and outdoor entertaining area, and it includes the state-of-the-art fittings and gadgets buyers in this price point expect. It is being sold by <a target="_blank" title="Compton &amp; Green" href="https://www.comptongreen.com.au/index-tess1.php?ItemNo=1128&amp;QF=2&amp;searchtype=ressale&amp;propertyid=3521045">Compton &amp; Green</a> agents Adrian Butera and Susie O'Neill, with price hopes of $2 million plus. The property goes to auction on Saturday, July 23 at 11am. 
 
 
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Open living in Williamstown

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61/67 Carabella Street, Kirribilli, NSW, 2061
<img src="/images/stories/formjuly20nsw.jpg">
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 <div></div>
<div>Within walking distance of Sydney's foreshore and offering harbour views, this two-bedroom, one-bathroom apartment sold at auction on Saturday, July 23 for $930,000. <a target="_blank" title="Sydney Boutique Property" href="https://www.sydneyboutique.com.au/pol/property/search.asp?f_PropertyID=1701015&amp;f_AgentID=4331&amp;xsl=4331&amp;f_st=1">Sydney Boutique Property </a>agents Tom Scarpignato and Chris Delaney marketed the property with $860,000 plus hopes, and the current tenant pays $945 a week and wants to stay. This represents a yield of 5.28%, considerably higher than the indicative gross rental yield for units in Kirribilli of 4.9%, according to RP Data. The light-filled property includes one car space and a sunny balcony.  </div>
For more on rental yields, average prices and other information about this suburb, visit the <a target="_blank" title="Kirribilli" href="/news">suburb page of Kirribilli.</a> 
For other investment possibilities that went to auction at the weekend, see pages 2 and 3.
 
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4 Lancewood Walk, South Morang, VIC, 3752
<img src="/images/stories/lancewood.jpg">
This three-bedroom, two-bathroom townhouse in the northern Melbourne suburb of South Morang is situated opposite parklands. It went to auction by <a target="_blank" title="Ray White Bundoora" href="https://www.raywhitebundoora.com.au/buying/search/detail.aspx?id=RWB1579&amp;wlid=0a6427b8-ae5c-4152-996f-d0f5768c9b5f">Ray White Bundoora</a> agent Joe Torzillo on Saturday, July 23 at 10.30am and was passed in. It is still on the market, with hopes of $310,000 plus. According to RP Data, median asking rent for houses in South Morang is $360 and indicative gross rental yield is 4.5%.  
For more on rental yields, average prices and other information about this suburb, visit the <a target="_blank" title="South Morang" href="/news">suburb page of South Morang</a>.
 
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32 Boustead Circuit, Kambah, ACT, 2902
<img src="/images/stories/bousted.jpg">
On an 851-square-metre block in the family-friendly suburb of Kambah, this three-bedroom, one-bathroom house will likely appeal to tenants, as it is within walking disatance of shops and transport and is close to prestigious schools. It was sold by <a target="_blank" title="McGrath Gungahlin" href="https://www.mcgrath.com.au/131463/?searchID=7735615">McGrath Gungahlin</a> agents Greg Ward and Nathan Harford at auction on Saturday, July 23 for $402,500, above the pre-sale price hopes of $395,000 plus. Median asking rent for houses in Kambah is $460 per week and indicative gross yield is 5% in the area, according to RP Data.  
For more on rental yields, average prices and other information about this suburb, visit the <a target="_blank" title="Kambah" href="/news">suburb page of Kambah</a>.
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Yields of 5.28% in Kirribilli

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Queensland property franchise Go Gecko has been placed into voluntary administration, with chief executive Geoff Doyle reportedly being replaced by Noel Scully.

A spokesman for administrators Vincents Chartered Accountants has confirmed the company is now in voluntary administration, although the appointment relates only to company-owned stores – the franchisees are unaffected.
Scully was contacted this morning by Property Observer, but no reply was available prior to publication.
While no official reason for the collapse has been provided, it is believed the downturn in the Queensland property market is responsible. Scully has told the Courier-Mail that difficult business conditions led to the decision, also confirming that two company-owned locations may close.
He also said there were a number of reasons behind Doyle leaving his position.
More than 40 franchisees were informed of the decision at a meeting on Tuesday, where they were reportedly also informed that Scully would be replacing Doyle.
However, one franchise contacted by Property Observer this morning was not aware that an administrator had been appointed.
The spokesman for Vincents has said a review of the business will now be underway.
Go Gecko, which was founded five years ago, has more than 50 locations. It has attempted to stand out from other property managers by capping its agent commission fees.
However, the property market in Queensland, particularly in the southeast, has suffered some of the weakest conditions in recent history. A lack of finance, a downturn in the construction industry and the damage caused by this year's natural disasters have only exacerbated long-term issues.
Prices have continued to fall, especially on the Gold Coast and southeast Brisbane, where supply continues to exceed demand. Ratings agency Fitch has said many of country's mortgage delinquencies are in Queensland.
This article originally appeared on <a href="https://www.smartcompany.com.au/property/20110721-real-estate-franchise-go-gecko-appoints-voluntary-administrators-as-queensland-property-market-suffers" title="SmartCompany" target="_blank">SmartCompany.com.au</a>
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Real estate franchise Go Gecko appoints voluntary administrators

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{yoogallery src=[images/stories/july22swanview]}
55A Swanview Terrace, South Perth, WA, 6151
With striking marble everywhere you look and opulence in every fitting and fixture, this house is anything but understated. It comes fully furnished and includes artwork. The owner, who demands that all visitors remove their shoes before inspecting the property, had the property as part of an investment portfolio, and it has never been lived in. Overlooking the Swan River foreshore, this 513-square-metre house includes a home theatre, fleur-de-lis woollen carpets throughout, $10,000 worth of textured wallpaper and piped music throughout. It has five bedrooms and three bathrooms and more space than an owner will know what to do with. It is being sold by <a href="https://www.verseproperty.com.au/Buying/Search/Detail.aspx?id=VPG215&amp;wlid=8dc7898f-d920-406c-b1e6-5ec7310eb8a2" target="_self" title="Verse Property">Verse Property </a>agent Prakesh Dayanandan with price hopes of $5.85 million plus. 
 
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Absolute opulence in South Perth

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A fully furnished, waterfront Tasmanian property has appeared on SQM Research's Top 10 Discount List for the first time. The asking price for 588 White Beach Road, White Beach, has been cut by a dramatic 49%, from $780,000 when it came on the market in May 2010 to $400,000. The property's last price adjustement was in December 2010, when the asking price fell to $699,000.
"The vendors of this four bedroom, waterfront property, which appears to have some pleasant views have even gone to the extent of offering the property fully furnished, seemingly in a bid to sell it as soon as possible," SQM director Louis Christopher says.
It comes in at number two on SQM's discount list, which continues to be dominated by Western Australian properties. Four out of the 10 most discounted properties in Australia are in Perth suburbs. 
1
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008173508" title="1 Flora Street" target="_blank">1 Flora Street, Midland, WA, 6056</a>
On the market since: August 16, 2009
Initial asking price: $1.9 million
Current asking price: $850,000
Reduction: 55%
Days on market: 694
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106479093" title="588 white beach road" target="_blank">588 White Beach Road, White Beach, Tasmania, 7184</a>
On the market since: May 23, 2010
Initial asking price: $780,000
Current asking price: $400,000
Reduction: 49%
Days on market: 413
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">3</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579" title="1350 Wynnym Road" target="_blank">1350 Wynnum Road, Tingalpa, Queensland, 4173</a>
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $380,000
Reduction: 46%
Days on market: 245
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">4</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903" title="3 Boolari Road" target="_blank">3 Boolari Road, Gosford West, NSW, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $580,000
Reduction: 41%
Days on market: 731
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670" title="1/21 Ocean Drive" target="_blank">1/21 Ocean Drive, Coogee, WA, 6166</a>
On the market since: May 23, 2010
Initial asking price: $2.7 million
Current asking price: $1.6 million
Reduction: 41%
Days on market: 413
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500" title="232 High Central Road" target="_blank">232-234 High Central Road, Macleay Island, Queensland, 4184</a>
On the market since: January 11, 2009
Initial asking price: $279,000
Current asking price: $175,000
Reduction: 37%
Days on market: 910
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" title="25 Vicary Street" target="_blank">25 Vicary Street, Triabunna, Tasmania, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 343
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" title="290 Viveash Road" 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: $1.5 million
Reduction: 34%
Days on market: 1,131
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105294317" title="3 Zelma Court" target="_blank">3 Zelma Court, Macleay Island, Queensland, 4184</a>
On the market since: May 23, 2010
Initial asking price: $380,000
Current asking price: $250,000
Reduction: 34%
Days on market: 412
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106404560" title="46a Stock Road" target="_blank">46a Stock Road, Attadale, WA, 6156</a>
On the market since: March 23, 2010
Initial asking price: $2.69 million
Current asking price: $1.79 million
Reduction: 33%
Days on market: 476
SQM Research also offers a list of the <a target="_blank" title="SQM Research" href="https://www.sqmresearch.com.au/top100bargains.php">Top 100 Biggest Bargains in Australia </a>for sale.
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Asking price halved for Tasmanian entry on SQM's discount list

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116 Queens Road, Connells Point, NSW, 2221
This five-bedroom, five-bathroom house with uninterrupted views of the Georges River sold on June 23 for $3.03 million. It was initially listed for August 2009 auction with $3,375,000 price hopes, according to RP Data. It was the third sale in Connells Point above $3 million. The 700-square-metre luxury home features a fully tiled indoor pool, a second kitchen and a surround-sound home theatre with seven leather recliners. It has two storerooms, terraced gardens and the state-of-the-art conveniences and fittings that one would expect at this price point. The house was sold by <a target="_blank" title="Belle Property" href="https://www.belleproperty.com/">Belle Property</a> agent Brett Ramsey. 
 
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Connells Point beauty sells for $3.03 million

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{yoogallery src=[images/stories/july19cotery]}
The former Joshua Pitt leather manufacturing site at 52-79 Gadd Street, Northcote, is being turned into 123 one-, two- and three-bedroom townhouses and 53 apartments. The Cotery, seven kilometres from Melbourne CBD, is being developed by Melbourne property company Glenvill and designed by architectural firm Rothe Lowman.
The development is designed to be in keeping with the existing factory and will emcompass the factory smokestack as part of the central hub. The Cotery's exterior will feature a mix of concrete, glass, metal and timber in a sympathetic addition to the site's industrial past. 
“Externally, the use of contrasting textures and materiality, together with eclectic sculptural forms, delivers awarm earthy palette and timeless design. The seamless transition of this palette indoors delivers a development with individual character and style,” managing principal of Rothe Lowman Kim Lowman says.
Glenvill managing director Len Warson says the aesthetics of the building were a key consideration from the beginning.
"We told the architect go for broke, make it as beautiful as you can, and we’ll make the cost work," he told Property Observer. 
"It’s a beautiful development aesthetically, the fittings are beautiful and include things that you would never normally get in townhouses."
After being listed with $13.5 million plus hopes in 2010, it was speculated Glenvill paid about $15 million for the 13,450-square-metre site through DTZ marketing agent Patrick O'Callaghan and Richard O'Callaghan. The site spreads over two streets.
Northcote is known for its bohemian atmosphere, funky cafes and art scene, and The Cotery is within walking distance of the suburb's retail and entertainment hub.
“The market it Northcote is very creative, and very particular, so we needed to create a product that didn’t take shortcuts, that creatively was strong and responded to what the local audience wanted," Warson says.
"What is available in Northcote is mostly apartments, whereas this is mostly townhouses. We are more architectural."
"It’s far more contemporary than other developments we’ve done in recent times. Because it’s Northcote, that’s what the audience wants. We respond to the environment rather than having a formula."


Joshua Pitt was based at the Gadd Street property for 121 years. Manufacturing at the building ceased in 2004. 


One-bedroom townhouses, which are 80 square metres, start at $495,000 in the development. The 63 two-bedroom, 120-square-metre townhouses begin at $640,000, and the 30 three-bedroom townhouses, which have a minimum of 165 square metres, range from $725,000.
The 12 apartments within the original leatherworks building will range from 70 square metres to 120 square metres and will start at $575,000.
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Former leather factory stitched into residential development

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{yoogallery src=[images/stories/july19cullen]}
68 Cullen Bay Crescent, Larrakeyah, NT, 0820
In the Darwin suburb of Cullen Bay, this six-bedroom, three-bathroom house would be perfect for yachties and those who love messing about in boats, as it has marina frontage and a 10-metre berth. The lagoon-style pool overlooks the marina, and the house has low-maintenance tropical gardens. The 931-square-metre property is within walking distance of many of Darwin's attractions. The house is being marketed by<a href="https://www.raywhite.com/nt/cullen-bay/493227/" title="Ray White Darwin" target="_blank"> Ray White Darwin</a> agent Warren Pope with price hopes of $2.5 million plus. 
 
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Messing about in boats in Cullen Bay

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The auctions market may have delivered yet another poor result, but Westpac's prediction that interest rates will drop 100 basis points over the next 18 months has caused some property experts to raise their hopes of a recovery.

Clearance rates remained in the 50s in both major markets – Sydney and Melbourne – this weekend as the cold weather kept buyers away.
In a shock move last week Westpac amended its forecasts for interest rates, now suggesting they will drop by 100 basis points over the next 18 months as the RBA attempts to cope with the economy moving at multiple speeds.
Despite other economists contradicting the change by confirming its forecasts for rates to move up by the end of the year, Housing Industry Association chief economist Harley Dale says such a move "would certainly be a positive development".
"If you were to see forecasts from Westpac come to fruition, then you'd be talking about a total 1% percentage point drop in mortgage rates. That's got to be good for confidence."
Part of the downfall in new home building can be attributed to rising interest rates, keeping prospective buyers out of the market despite prices having effectively halted during the past year.
Such a dramatic fall in rates would surely be enough to prompt prospective buyers back into the market, although Dale says it would require quite a bit more to get that market moving again.
"I think there's a lot more going on, including a considerably tighter lending environment on both the demand and supply side of the housing equation."
"The other factor is that if you're looking at 100 basis points in drops, you're staring down the barrel of a pretty bad global situation."
Brian Welch, executive director of the Victorian branch of the Master Builders' Association, agrees that such a dramatic drop in rates would spur the industry into movement.
"That is the main factor in people's willingness to spend. To say that interest rates would drop rather than the reverse, that would be a bit of tonic for the industry as a whole."
"Volume builders are noticing the change away from first home buyers, and the sensitivity of the market. People are cautious, too cautious to make commitments, and all that tells me people are being careful in the industry."
Dale says the economy is "first and foremost sentiment driven", and seeing interest rates fall would be a boost to confidence.
However, there is no sign of any boost in confidence in the property market yet. Auctions results this weekend were subdued as the colder weather kept buyers away.
In Victoria, the clearance rate was 56%, with 377 homes put up for auction. Only 211 sold with 166 passed in.
"The REIV June quarter median prices showed that over the last three months there was little difference between demand at auction to that at private sale with the median price of houses sold at auction increasing by 1.2%, and those sold at private sale increasing by 1%," REIV chief Enzo Raimondo said in a statement.
In Sydney, the clearance rate was 55.9% on 181 reported auctions, while Adelaide and Brisbane recorded clearance rates of 50% and 16.1% respectively.
This article originally appeared on <a target="_blank" title="SmartCompany" href="https://www.smartcompany.com.au/">SmartCompany.com.au</a>
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Auctions still weak but experts welcome forecast rate drop

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

Joel Robinson

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

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

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

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

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

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

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

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.

Cassidy Knowlton

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