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The Reserve Bank of Australia (RBA) released the minutes for its November 5 meeting today, stating that there are signs that low interest rates are working, but did not want to “close off the possibility of reducing [the cash rate] further”.
Board members discussed the “uncomfortably high” Australian dollar and noted that a lower level of the exchange rate would likely be essential to achieve balanced growth in the economy.
CommSec economist Savanth Sebastian notes that policymakers are hoping that the super stimulus provided by low rates will be sufficient. Conversely, if the stimulus is not adequate, the RBA will likely consider a further interest rate cut.
Sebastian added that at this stage, the RBA has adopted a “wait and see” mode while waiting for a clearer picture of how the domestic business and household sectors respond in the Christmas spending period as well as the early part of 2014.
The Statement of Monetary Policy, released a fortnight ago, confirmed modest downgrades to near medium term economic growth forecasts. Inflation is expected to remain in the 2-3% target band as well.
Sebastian reiterates that the RBA has provided the economy with substantial stimulus in the last year. While the RBA remains cautious with its approach, its prior rate cuts have only just begun to impact the economy. He does not expect any changes in policy settings over the next few months.
HSBC chief economist (Australia &amp; New Zealand) Paul Bloxham said in a recent report that the RBA has noted they are seeing an improvement in conditions that extends beyond a pick-up in the housing market.
While the RBA explores the possibility of cutting rates further if the Australian dollar does not fall, Bloxham believes the AUD will fall modestly over 2014 and there will be no need for the RBA to cut rates further.
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dleow-BGaNPbHWyK

RBA leaves door open for further rate cuts in November meeting minutes

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A one-bedroom apartment in the Melbourne CBD was the most affordable auction sale in Melbourne last weekend.
Located at <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-115195055" target="_blank">404/408 Lonsdale Street</a>, the unit sold for $210,000 through Biggin &amp; Scott Richmond.
Prior to this sale, it last sold in 2007 for $170,000, and in 1998 for $118,857, according to RP Data records.
Listing agent Claire Parkes told Property Observer the auction went “well”, with two bidders. The sale price was a pretty good result.
“It’s the highest price for a studio in that building in the last few years,” she said.
The successful bidder was an investor.
She notes that the property market in Melbourne is “bubbling along nicely” as the moment, with investors coming back on the market.
“One-bedroom apartments aren’t moving as well as larger apartments and houses. However, it seems like they are on the move. Older-style units and houses seems to be preferred over the newer styles that available, probably due to affordability and positioning,” she said. 
According to Biggin &amp; Scott’s estimated asking rent of $290 a week, the price reflects a 7.18% rental yield.
According to the latest RP Data report, the median sale price for units in Melbourne is $400,500, up by 4% on last year. The average discount required to sell a unit is 6.1%, while private treaty sales average 86 days on market.
The median asking rent for a unit is $450 per week, while gross rental yield currently stands at 5.8%.
Other one-bedroom units listed for sale in Melbourne include: <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-115431391">1002/243 Franklin Street</a> (pictured below).
{yoogallery src=[images/stories/2013/11/19/mel2]}
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Melbourne cheapie sells for $210,000, reflects 7.18% yield

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A four-bedroom semi-detached home in Middlesex, UK has been <a href="https://www.rightmove.co.uk/property-for-sale/property-41719309" target="_blank">listed for sale</a> – with a distinct difference. While it looks like a typical home on the outside, it boasts a purple theme in the interior – the walls have a lick of lavender paint, while the carpets are a bright purple.
{yoogallery src=[images/stories/2013/11/19/mid]}
Even the bathroom is not spared – its floor is adorned with the same purple carpeting, while white tiles with purple flowers are used on the walls.
The dining and living rooms all see purple accents as well, with purple and white dining chairs and purple cushions.
While it may be tempting to makeover your home entirely in your favourite colour, principal of Just Think Real Estate, Edwin Almeida, advises that vendors should ensure your property is redone in a neutral colour before it goes to market.
“Typically, we try to keep it as neutral as possible so that people can have a clean canvas to work with, and create their own colour coordination to their own likes,” Almeida told Property Observer.
For those hoping to rent out a property like this one, Almeida says that wear and tear, as well as damages to the furnishings, could potentially be a huge issue.
“It's going to be very very difficult to match those specific colours. There’s going to be different shades of purple all over the place – that’s going to be a deterrence,” he said.
When a property like this one goes on sale, Almeida says potential buyers who will factor in the cost of repainting and recarpeting the home. This cost will then be a reason to reduce the price based on the amount of work it is going to take to redo it. 
He notes that vendors should consider the actual cost of repainting a home before it goes to market to avoid unnecessary price reductions.
“My philosophy is, you get rid of all the objections before you go to market. If we get this fixed, it’s going to cost us $1,000. If someone is negotiating a price, and they see this problem, they're going to want a reduction of $5,000 to $10,000. They will always inflate the cost,” he warned.
A good way to calculate the potential reduction cost is to multiply the cost of a repainting and recarpeting job by two and a half times. Almeida says that's typically the amount a buyer would ask as a reduction in price.
"If it costs $10,000 to re do, people will look at it as a $25,000 job, if not more. The emotional factor in negotiating a price can cost more than what it will actually cost to fix. It works both ways," he said.
“I always say to my vendors and landlords – get it fixed within our price point before the purchaser or renter uses it as a objection to dramatically reduce the price.”
Almeida also notes that colour can be the only hindrance in a successful transaction.
“If the colour becomes the only objection - get rid of your troubles,” he said.
Renters might also be deterred from such a property, according to Secret Agent founder Paul Osborne.
“It will actually scare away a lot of the market. From a rental market’s perspective, certainly a lot of people wouldn't be happy to accept it,” he said. 
Conversely, Osborne notes it could just be a matter of finding the right buyer or renter. 
“It is quite possible that there could be a section of the population that loves to rent purple houses. If those people were in the market, they would pay a premium for something like that,” he said.
He noted that certain quirky properties could work to a vendor’s or landlord’s advantage. For instance, period homes with cracks in the walls and ivy could be very appealing to certain buyers – yet homes with distinct quirks could either attract potential buyers or deter them altogether.
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Selling your beloved purple home? You might want to consider a few things first...

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Ipswich, an urban centre in Southeast Queensland, is located about 40 kilometres west from the Brisbane CBD. Flanking the Bremer River Valley, it has been the victim of flooding in the last few years, rendering it less-than-ideal for property investment in the eyes of many.
However, it has recently been put back in the spotlight as an investor’s playground. This can be attributed to an abundance of properties in the entry-level market.
Australian Property Monitor’s senior economist Dr Andrew Wilson told Property Observer he expects to see “some growth” in the Ipswich market in the next year. 
“Ipswich is starting to pick up, in line with the Brisbane economy. It is one of those markets that appeals to entry-level buyers,” he said.
wHeregroup director and location researcher, Todd Hunter, agrees that the property market there is “fairly warm” at the moment.
He picks out Springfield and Springfield Lakes as the top suburbs in the area, for both proximity to the CBD as well as the new Springfield train line due to open later this month.
However, he notes that investors who got in early have already snapped up many great properties, perhaps leaving the pickings a little thin.
“There’s still money to be made, but not as good as it would've been 12 to 24 months ago,” he said.
Infrastructure in place, including the upgrade of the Centenary Motorway, makes Ipswich an accessible area as well.
Hunter added that Ipswich will see a change of demographics in the coming years.
“A lot more people will be forced out of the CBD, and looking for lifestyle and affordability. The incomes will be higher, the whole area will start changing,” he said.
Personally, he began purchasing properties in the Ipswich area from 2010 to late 2012, with the exception of a gap when the flood occurred and insurance companies placed an embargo on house insurance for flood-prone areas.
“There were some really good bargains where properties had previously been sold between $370,000 to $420,000 in the boom at the end of 2006 to 2007; we were picking those properties up at $285,000 to $290,000. Those same properties now would be worth about $310,000 to $320,000, and I think the market will keep increasing,” he said.
He added that the most popular style of home in the area is one with four-bedrooms and two-bathrooms.
Additionally, he warns against suburbs that have been previously hit by the floods as insurance will be very expensive. These include riverside suburbs such as Goodna, Brassall and Barrellan Point.
Overall, he believes the property market in Ipswich will remain profitable. 
“It’s in its early stages, in a really good upcycle. I see very good times probably around the next 18-24 months,” he said.
An increase in investor activity can lead to a great rental market as well. Kelly Higgins, state manager for MPM Property, told Property Observer they have seen “the Ipswich region have significant rent increases across key suburbs throughout 2013.”
“We have achieved averaged rent increases between 3% to 6% in suburbs of high demand including; Brassall, Redbank, Raceview and Springfield,” she said.
She also mentioned that the most sought after homes are newly-constructed four-bedroom two-bathroom double lock ups to accommodate families.
“The Ipswich area attracts families that are seeking an affordable housing option, whilst still being close to Brisbane suburbs and major public transport and infrastructure,” she added.
Higgins notes that MPM Property has seen positive results thus far with rent increases and reduced vacant days on market.
“We see this as a brilliant result for current investors and the opportunity for other investor to consider the Ipswich market. We see this as ideal time to invest in the Ipswich region with ample affordable property options currently on the market or house &amp; land package options which are also available,” she said.
She also anticipates the rental market to remain “buoyant” as a result of stability and steady returns across the rental market, as well as ongoing growth, affordability, proximity, and infrastructure enhancements across the city region. 
<a href="mailto:DLeow@propertyobserver.com.au">DLeow@propertyobserver.com.au</a>
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Suburb spotlight: Ipswich picks up

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An initiative by the City of Gold Coast to stimulate development activity and create jobs has generated about 9,500 jobs and more than $885 million in building projects, potentially generating residential housing demand.
Named Construction Kickstart, a report to the City Planning Committee stated that the initiative has resulted in the commencement of 282 projects, including 55 industrial developments.
Kickstart started on October 1 2012, and concluded on September 30 this year.
Of the 55 eligible industrial developments, 38 are still underway and 17 have been completed. 
President of the Urban Development Institute of Australia Gold Coast Logan Branch, David Ransom, said the Kickstart initiative had been a very worthwhile exercise which proved the City of Gold Coast had an ‘open for business’ attitude.
“There is a strong linkage between the level of infrastructure charges and the economic viability of projects,” said Mr Ransom.
“Employment generating projects such as industrial and retail will provide a triple benefit to the city by creating construction employment and ongoing operational employment, as well as fuelling residential housing demand.”
It is estimated 2,000 ongoing jobs will result from these projects and other non-residential projects that have commenced.
Non-residential land uses that qualified for Kickstart include a child care centre, sports facility, fast food outlet, service station, place of worship, indoor recreation, as well as retail facilities.
The City of Gold Coast’s Division 3 is home to the highest number of Kickstart projects, with 52 commencing, the majority of these being residential developments. 
Division 1 and Division 4 ranked second and third in terms of Kickstart developments, with 48 and 31 eligible projects respectively. 
Mayor Tom Tate said the figures showed Construction Kickstart had been an overwhelming success.
“This initiative was always about creating jobs and encouraging development activity and it’s certainly done that. When we launched the project, we estimated 4,000 jobs would be created so to reach an estimate of 9,500 is fantastic,” he said.
Phase One of Kickstart offered 100% discount on transport, recreation facilities and stormwater infrastructure charges, while Phast Two offered a 50% discount on the same charges.
Projects that have benefitted from Kickstart include a 41-storey residential tower in Surfers Paradise, a large warehouse and industrial facility, and apartment complexes.
<a href="mailto:dleow@propertyobserver.com.au" target="_parent">dleow@propertyobserver.com.au</a>
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Gold Coast's Kickstart generates $885 million in projects, could fuel residential demand

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According to the latest report from SQM research, vacancy rates experienced tightening across all capital cities, with the exception of Darwin and Brisbane.
Both cities saw a 0.1% increase in vacancy rates. However, Darwin recorded the highest vacancy rate nationally at 1%.
Brisbane’s vacancy rate currently stands at 2.2%, up by 0.6% on last year’s figures.
The national vacancy rate for October was 2%.
SQM Research director Louis Christopher told Property Observer that Brisbane has seen a “real sustained rise [in vacancy rates] in the CBD itself”.
“The Brisbane market has been fairly well-supplied over the last few years. The Brisbane CBD rate is quite elevated at 4.2%. This is the seventh month in a row we have seen a rise in vacancy rates,” he said.
<blockquote class="twitter-tweet">
<a href="https://twitter.com/JennieDuke" target="_blank">@JennieDuke</a> But I don't like what I am seeing on the rental front in the CBD. Vacancies at 4.2% now and rising fast. <a href="https://t.co/pBkSdqtm3k" target="_blank">https://t.co/pBkSdqtm3k</a>
— Louis Christopher (@LouiChristopher) <a href="https://www.propertyobserver.com.au/https://twitter.com/LouiChristopher/statuses/401148992035119104" target="_blank">November 15, 2013</a>
</blockquote>
“Naturally this is one of the reasons why the overall vacancy rate [in Brisbane] has risen. It’s currently a tenant’s market in the middle of town.”
He notes that the vacancy rate in the Brisbane CBD was 2% in October last year.
When asked what could have contributed to this rise, Christopher rules out an increase in investor activity.
“Investor activity in the Brisbane market is relatively weak, definitely lower compared to the Sydney market,” he said.
“It’s a difficult one to call. We know supply is more fluid in the Brisbane market for some years now. There has been a state downturn in the economy, particularly in Brisbane. Office vacancy rates are extraordinarily high, at 12%. I’m just speculating, but this high CBD vacancy rate could be a reflection of a structural downshift in white collar workers,” he said.
He added that investors would find it difficult to lift rents in the Brisbane CBD.
Christopher also said it is important to note that rents in Brisbane have risen strongly over the last three years.
“Rents have risen 18.9% for houses and 25% for units. The last 12 months in particular have been weak, and both houses and units have been falling in rent over the last three months,” he revealed.
Conversely, asking prices have recorded increases of 0.9% for houses and 0.5% for units over the last 30 days, according to SQM Research. 
<blockquote class="twitter-tweet">
<a target="_blank" href="https://twitter.com/JennieDuke">@JennieDuke</a> Our asking prices series is recording a similar trend (up 0.9%,houses &amp; 0.5%,units) over past 30 days. <a target="_blank" href="https://t.co/X3Qy60Plql">https://t.co/X3Qy60Plql</a>
— Louis Christopher (@LouiChristopher) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/LouiChristopher/statuses/401148547015274496">November 15, 2013</a>
</blockquote>
The report also stated that nationally, Melbourne recorded the highest vacancy rate at 2.7%. Sydney recorded a vacancy rate of 1.5%, down by 0.1% from September this year.
Canberra recorded the highest yearly increase in vacancies, climbing 1.1% to 2.1% from last year’s figures.
Hobart was the capital city to record the largest yearly decrease in vacancies, falling by 0.5% to 1.5% on last year’s figures.
Adelaide recorded the largest monthly vacancy rate decline of the capital cities, falling by 0.2% during October 2013 to record a vacancy rate of 1.3%.
<a href="mailto:dleow@propertyobserver.com.au" target="_blank">dleow@propertyobserver.com.au</a>
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Brisbane rental market down in October: SQM Research

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The National Housing Conference held in Adelaide this year from October 10 to November 1 saw over 800 people attend, with over 50% of delegates stating they were “somewhat pessimistic” about the prospects of significant housing policy over the next five years.
Generation X made up the bulk of attendees at 40%, while 26.5% of attendees were baby boomers, and 22.5% were part of Generation Y.
Conference topics discussed included: the roles of government and the not-for-profit sector in housing supply, urban renewal and the supply of affordable housing, as well as homelessness prevention through mainstream services.
Various questions were posed throughout the three-day conference with responses collected using an application.
Attendees mainly felt the two biggest issues in Australian housing today are: 
<ul>
<li>Clarity about the future roles of government and non-government sectors</li>
<li>Blending public and private sector finance to achieve social objectives</li>
</ul>
They were also optimistic that the latter would see much progress in the next five years.
Additionally, 35% of conference delegates felt the biggest challenge for affordable housing in Australia is the undersupply of housing. The second biggest challenge was access to development finance, with 23.8% of delegates responding to that.
Mixed public and private funding was seen as the biggest opportunity for affordable housing in Australia, with over 50% of delegates agreeing with that statement. Growth of the not-for-profit sector was seen as the second most effective method for affordable housing to be more accessible.
Property Observer will speak to industry leaders, and look into some of these issues over the next few weeks.
<a href="mailto:DLeow@propertyobserver.com.au">dleow@propertyobserver.com.au</a>
 
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Majority of National Housing Conference delegates "somewhat pessimistic" about housing policy prospects

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Tasmania’s Minister for Sustainable Transport Nick McKim announced today that the first stage of Hobart’s proposed light rail service would be extended to the Museum of Old and Modern Art, and will be named Riverline.
Real Estate Institute of Tasmania (REIT) president Adrian Kelly told Property Observer that “it will be fantastic – if they get it off the ground.”
Kelly added that the rail corridor is already present, flanking both residential and commercial areas. He believes the light rail will bring a much-needed efficient public transport system to Hobart, which is currently serviced by buses.
“For example, to catch a bus from a suburb called Brighton into the city, that would take at least 45 to 50 minutes. To jump on the light rail, it would probably not take more than 15 (minutes). The light rail service will also run through areas that would make it much easier for people to park and ride,” he said.
Stage one of Riverline is slated to have stops at Franklin Square, Moonah, Glenorchy and MONA, with potential stops at the Botanical Gardens and New Town. 
McKim believes the light rail will be a huge economic winner.
"For example, in Perth in Western Australia, property values have risen by up to 40 per cent in areas within 400 metres of light rail stations."
"The same academic report shows land values rose by up to 15 per cent as far as 800 metres from stations," he said.
However, Kelly thinks there will be “very slight price increases if a home is near a station”.
Conversely, Rick Abbott, Principal of Raine &amp; Horne Hobart, is skeptical about Riverline.
“Stuff's like that been floating down here but nobody believes any of it. When it becomes reality, I imagine it will have some effect on the property market,” he said.
McKim stated that the project has already entered the planning phase, which includes undertaking a strategic assessment of the wider benefits of the project, as well as evaluate funding and financing options.
<a target="_blank" href="mailto:dleow@propertyobserver.com.au">dleow@propertyobserver.com.au</a>
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Hobart to get new light rail

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Located in south-east Queensland and 127 kilometres west of Brisbane CBD, Toowoomba is Australia’s most populous inland non-capital city with a population of over 100,000, according to ABS statistics. 
In the last year it has grown to be "the strongest-growing region of all of Queensland," according to Australian Property Monitors (APM) senior economist Dr Andrew Wilson. He foresees that activity there will remain strong over the next year or so. 
This can be attributed to Toowoomba’s geographical location as a gateway to the Surat Basin resources and mining areas.
However, he has his reservations about Toowoomba being labeled a 'hotspot'. 
"It was the most affordable of the region, driving everyone to Toowoomba as there’s higher yields there. Because of increased investor activity, it has been highlighted as a hotspot – but the curse of the hotspot could lead to an oversupply of investment properties, pushing down rents and yield," he told Property Observer.
At the moment, Dr Wilson thinks Toowoomba is tracking a similar outcome to Gladstone, with one clear difference.
"The only differentiation is that there are no similar large urban areas as an alternative living area near Toowoomba. In Gladstone, people could live in other areas where it’s cheaper. It sees a lot of drive-in, drive-out workers, some driving in from as far as the Sunshine Coast," he said.
As for the similarities between Toowoomba and Gladstone, Dr Wilson believes that in areas with an oversupply of investment properties, there needs to be investment in the area or population growth in order to maintain the returns investors require.
"Surges in investor activity tend to oversupply the market. It will follow an adjustment process in the medium term as we see in Gladstone," he said.
In the short term, Dr Wilson has seen an acceleration in activity in Toowoomba, and believes it will remain as Queensland’s strongest-growing region in the following months to come.
Ray White Toowoomba principal Andrew Carter thinks Toowoomba’s property market is at the beginning of its recovery.
"We’re at the start of an upwind; we’ve been recovering quite quickly on sales volumes. The number of sales have now recovered to long-term averages," he told Property Observer.
He noted that property prices are starting to trend upwards. This could be due to a new town plan being put in place in that encourages infill development, which has had significant impact on land valuation in certain zonings. 
While Toowoomba has often been compared to Gladstone, Carter thinks the two are vastly different. 
"Toowoomba is the largest inland city. Gladstone is much smaller than Toowoomba. Traditionally, Toowoomba has been supported by the agricultural industry which is still there. All that’s happened adds another dimension to the commercial spots of Toowoomba as a centre," he said.
Toowoomba’s vacancy rate was 1.3% as of September’s end, but Carter emphasises that the area has historically had a low vacancy rate.
"We haven’t necessarily had surging rents like you would expect. We haven’t seen circumstances where there is bidding for property where people have to pay significantly above the asking rent in order to secure the property," he said.
From a commercial perspective, Carter thinks Toowoomba still needs some population growth and optimism.
In addition, Carter does not think Toowoomba has reached a point of oversupply.
"Traditionally, Toowoomba is a very conservative place, not prone to boom or bust movements [compared to] other markets. It’s not the Toowoomba way. I can’t see any evidence that we are in a boom/bust environment. It will still provide very solid investment growth for people going forward," he said. 
He added that Toowoomba will see its infrastructure strengthen with the addition of Australia’s first public airport next year, as well as the Toowoomba Second Range crossing.
"These are major infrastructure projects. If you look at the major fundamentals of investments, investing in Toowoomba is fantastic," Carter said.
McLean Property Toowoomba owner Lynn McLean has lived in Toowoomba all her life. She echoes Carter’s sentiments that the market is doing well.
"The property market in Toowoomba is firing, the enquiry level is high especially from investors. This enquiry is largely from interstate buyers and I often hear complaints from local buyers who miss out on a property, they say they were not quick enough. The enquiry and sale level has definitely increased from this time last year," she told Property Observer.
In addition, McLean says there is a shortage of available land at the moment in Toowoomba, which has slowed the supply of development sites for both units and houses.
In her years of experience, she has seen Toowoomba’s property values protected by the city’s different markets, including the rural sector. 
"Over the last 23 years of investing and selling real estate in the Toowoomba market it has become obvious that Toowoomba is one of the few cities in Australia which offers a very safe environment for investing," she said.
With a slowdown in supply, she has seen rental returns go beyond dollar for dollar, which indicates demand outstripping supply.
"As vacancy rates fall the rents go up and of course the investors are happy, but affordable rent starts to disappear," she added.
She notes that all markets are built on supply and demand, and she foresees demand outstripping supply in both the rental market as well as properties for sale.
Lastly, she reiterates that it is a good time to invest in Toowoomba at the moment.
"There has never been a better time for investment in this region. The new airport, the range crossing, the planned rail system, the city centre redevelopment and the Charlton Wellcamp Enterprise Centre are all indicators of enormous confidence in the region," she said.
<a target="_blank" href="https://mce_host/DLeow@propertyobserver.com.au">DLeow@propertyobserver.com.au </a> 
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Suburb spotlight: Toowoomba

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Located in Melbourne’s northwest, 13 kilometers from the CBD, Glenroy is an up-and-coming suburb that has grown in popularity over the years. This is due to an increase in medium-density developments favoured by first-home buyers and young couples, residential amenities in the area, as well as its proximity to the CBD.
Dr Andrew Wilson, senior economist for Australian Property Monitors, told Property Observer that Glenroy is “part of the gentrification process”.
“The Northern suburbs – Coburg, Pascoe Vale, Glenroy, they’re all being gentrified. Glenroy has easy access to reasonable levels of residential amenities and infrastructure. It is a developing lifestyle market – typical of areas such as Brunswick,” he said.
He added that property in Glenroy is more generally affordable compared to suburbs in the area.
“We’ve seen lots of redevelopment and medium-density developments, which are directed towards that first homebuyer or young couple-type of buyer,” he said.
Dr Wilson has also noticed a shift in the types of buyers in the area, which he attributes to an “emerging cosmopolitan lifestyle”.
With many properties undergoing redevelopment, Wilson believes the area will continue to increase in popularity. Trends point towards smaller types of property or unit development.
According to the latest RP Data report, median unit prices in Glenroy have fallen by 9.4% compared to last year’s figures.
Dr Wilson says there has been an “overshoot with unit development” as developers tend to overshoot underlying demand. However, he does not believe there will be an oversupply of medium-density developments in the middle-ring suburbs.
Barry Plant Glenroy managing director Angelo Nestor, who has 30 years’ experience in Melbourne’s northern suburbs, told Property Observer the property market in Glenroy has “picked up quite well”. 
“The interest rates have helped the market kick a little bit more. The last twelve months have been slower but it’s picked up because of the interest rates. The change in government has helped as well,” Nestor said.
He notes that investors have fueled most buyer activity in Glenroy. In particular, investors are purchasing units in new developments. First-time home buyers are also making a resurgence, preferring townhouses over developments.
Nestor also agreed that the sharp drop in median unit price over the last year is due to oversupply in the area. 
“When the market was going really well, the developers came in and there was a lot of development going on. When the market pulled back, a lot of developers were caught with units. But that’s changing now,” he said.
According to the <a href="/news">latest RP Data report</a>, the median house price for Glenroy is $419,000, down 1.9% on last year. The average discount required to sell a house is 6.6%, while private treaty sales average 75 days on market.
The median asking rent for a house in Glenroy is $320 per week, while gross rental yield currently stands at 4%.
The median unit price in Glenroy is $385,000, down 9.4% on last year. The average discount required to sell a house is 4.6%, while private treaty sales average 84 days on market.
The median asking rent for a unit in Glenroy is $300 per week, while gross rental yield currently stands at 4.4%.
<a href="mailto:dleow@propertyobserver.com.au" target="_blank">dleow@propertyobserver.com.au</a>
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Suburb spotlight: Glenroy undergoing "gentrification"

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Diane Leow

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