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“Hey Jeff, just wanted to let you know that I’ve transferred some money into my super account, can you tell me the best place to invest it right now within the fund?”  This was a question I asked of my financial planner yesterday.  It was that time of year when I had to make the obligatory transfer of money into my managed super account to meet requirements as an employer (to myself).  Each year I struggle with this: transferring cash into my super then watching it disappear into the deep, dark hole of the managed super fund then opening my bi-yearly statement to see it has disintegrated!
Jeff said, “Well, Australian equities are good buying right now (translation: because the market is so crap), so we’ll just put it in there.” So that’s what we did, dumped some money into shares, and I will now await my statement to see how that investment performs.
My next question for Jeff was, “How far out of retirement should we start moving money out of the more risky areas and into the safe havens or defensive stocks?” While I’m not at that age yet, I don’t want to end up like a lot of retirees at the moment who have lost buckets of their retirement funds in the poorly performing share market because they were caught out with the impact the GFC had on their super.  They’ve been forced back to work or to rely on the government pension. Jeff recommended that we should look at transferring into the safer areas, such as cash about 10 years before you are looking to retire.  Wow, so for 10 years we have to cop a low return on our money just to play it safe?  The alternative is to run the risk or losing a fair chunk of it.
Gosh, a lot can happen in 10 years in property, I thought.
Reading my mind, Jeff said, “Jo, with your experience in property, why don’t you set up a self-managed super fund and then you can just invest in property?”
He thought that to be a really good bet.  The fact that I’m already holding a substantial amount of property didn’t seem to faze him, but I always thought it best to diversify.
So I thought this an interesting topic to ponder on today: just how much property do we need to retire comfortably? I picked up my favourite property magazine and saw on the cover the headline “Retire Richer and Sooner” – OK, what have they got to say?
The headline story was titled “Get Rich from Regional Australia”.  Of the nine regional towns they highlighted as having the best capital growth potential, two were from the Hunter region of NSW.  Property Bloom tracks the long-term growth of suburbs we develop in. I pulled up my graph on a particular town that I just had Residex update for me.  I track the quarterly median value and the volume of sales in this postcode. There was a very nice upward trend with varying degrees of peaks since March 1996 when I started the tracking. I personally bought into this particular town in 2001. Looking back over the past 10 years I saw the median price was $114,500 in March 2002 and in March 2012 it was $250,268. It had grown 119% in this 10-year period.
That 119% says it all, really.  I know where I’m putting my retirement funds.
My retirement strategy is to buy and hold but with one very important twist and that is to add value.  The property I purchased in 2001 in this town has increased by 119%, but I also renovated and developed the land, adding more dwellings, so the yield on this property is also very high.
Property Bloom is always looking at development strategies that will add value, increase yield and create equity. We have one very new strategy that we are adding to our portfolio now that will mean clients make an 8% yield on an affordable investment. It will also give good depreciation for those still working.  The NSW government is also helping us with this strategy by throwing in $5,000, as it sees the need to boost housing in this state.  If you’d like to hear more about this growth strategy then let me know, I’ll be covering it in more detail on Property Observer soon. It just might be what you need to boost your retirement fund.
Jo Chivers is director of <a target="_blank" href="https://www.propertybloom.com.au/" title="Property Bloom">Property Bloom</a>, which manages property development.</body></html>

jochivers-wq5Bp59R5a

Investing in property through a self-managed super fund a good bet to retire comfortably

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In the last few weeks I completed a dual-occupancy project in Muswellbrook, a town in the Hunter Region of NSW.  This project took two years from the time that I found the land to the time that we had both four-bedroom houses tenanted at a record high of $500 per week. Sounds like a long time for a dual occupancy, but time was on our side.
We were able to buy into a subdivision in a prestigious estate before the land was registered. This is not a game for everyone as often registration can get pushed out, and in this case that’s exactly what happened, but patience prevailed.
It didn’t matter about the delay, we were literally buying land off the plan and in the time that my client exchanged contracts (on a minimum deposit as negotiated as one of our terms) to the time that he settled on the land, it had increased in value by about $30,000.  This is unusual, but we had been able to buy in early, get a great deal and get the pick of the sites in this release.
We negotiated an awesome price of just $142,000 for a 1,066-square-metre block of land, which represented a 15% discount off the original asking price. What’s more, this land developer ended up naming the street after me.  That was totally unexpected, and I was honoured.  Perhaps now this street will see more strong growth because of its name!
<img src="/images/stories/2012/07/chiverscct.jpg">
So, while we were waiting for the land to register, we didn’t sit around twiddling our thumbs, we were busy producing a concept plan. I wanted two large four-bedroom houses, as my research had told me that was what the mainstream market was looking for. It meant we’d appeal to both families and contract companies who looked for houses they could put three to four men into while seeing out their contract, usually to the mines.
We commissioned two builders to tender on the project. As we got closer to registration and the civil works were completed in this part of the estate, which means the infrastructure such as roads, guttering and footpaths were built and the lots were finished being sculpted, we then ordered our detailed or contour survey.   This is required before you can finalise plans.  We were well into the design phase by now.  As registration approached, the development application (DA) plans were completed, a builder engaged and we had out ducks lined up, ready to lodge the DA with the council as soon as the registration took place.
Council approval took just five weeks, and we had our construction certificate plans finalised and lodged within another few weeks. Before we knew it we were under construction.  But was this good timing?  As we started building it just happened to be at the time NSW had one of its wettest years in history!  Our builder rallied, completing the project well within the 26-week contract period and we had Christmas during this time.
So the longest waiting period was the time between securing the land on a low deposit, which meant holding costs were minimal yet capital growth took place on the land.
As we neared building completion, we interviewed agents and negotiated a discounted management fee for our client, appointed the agent, discussed the rent we wanted to achieve and then stood back while they did what they do best which was to achieve a record high rent for us. It’s important you mange this part of your development closely, as the one time you have to attract the highest rent is when your properties are brand new.  Property Bloom was able to save our client thousands of dollars by negotiating the terms of management.
Here are the high level results of this development in a nutshell:
<ul>
<li>
Equity created: $158,000 </li>
<li>
Gross yield: 8.3%</li>
<li>
Depreciation in year one: $22,242</li>
</ul>
This is an awesome example of a successful development as several factors came into play.
<img src="/images/stories/2012/07/chivers2.jpg">
On first impressions a project may seem to take too long, but when you drill down to the detail it’s often not until you finalise the timeline of a project and reflect on what happened over the entire project that you can see the real results.  In this case, time really was on our side as the price for land increased during the registration period and this combined with a speedy approval and build phase and a strengthening rental market meant our client benefited in more ways than one.
Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank">Property Bloom</a>, which manages property development.
Victorian readers who want to learn more about buying a dream land package should <a target="_blank" href="/news">sign up for our free short course.</a>
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The two-year timeline from buying land to renting out two completed brand-new homes

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Property development can be daunting so I’ve put together some FAQs to help address some of the important questions that will arise as you start your development.

This has been broken down to a three-part series:

<ol>
<li><a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/developments/how-to-get-started-in-property-development-jo-chivers/2012061355113" target="_blank">Getting started </a></li>
	<li><a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/land/mastering-the-design-planning-and-approval-stage-of-a-property-development-jo-chivers/2012062055209" target="_blank">Design, planning and approvals (as seen last Thursday)</a></li>
	<li>Construction Time</li>
</ol>
 

2. Construction Time 

“Each of us is carving a stone, erecting a column, or cutting a piece of stained glass in the construction of something much bigger than ourselves.” Adrienne Clarkson

Construction time is the best part of developing property. Seeing that first sod turned and standing back as the excavator starts to form up your site is truly satisfying.  The groundbreaking, also known as cutting the site, marks a massive milestone in your development project. 

[smartcode_project:default project_id=22803]

There is so much work that needs to be completed before getting to this stage.  You’ve found a site, negotiated to purchase it, researched with the council and other authorities, run your feasibility, got your designs done, had your building quotes completed, prepared documentation and lodged your development application, perhaps battled with the council.  Then you’ve obtained your consent and engineering and construction certificate (CC) plans and the CC consent.  Once fully approved there are still more hoops to jump through and it’s off to your lender to get your finance organised and finally unconditional approval. 

The development process is like an iceberg.  Most of the work required in project managing your property development is done before you cut the site.  It’s all hidden below the surface.

[smartcode_project:default project_id=32227]

So by the time your project comes out of the ground, you have done most of the work.   Inexperienced developers won’t understand this, but I know the sheer volume of hours required to get a project to the construction phase is phenomenal. 

When can I start construction? 

As soon as you have your DA – development application and CC – construction certificate –  consents and you have obtained an unconditional finance approval, your builder can start construction. 

What is the first process?

[smartcode_project:default project_id=94611]

Site clearing is required before you can start preparing your slab or footings. So ensure your builder has included vegetation and tree removal.  If you are demolishing an old house or building then ensure this is done before your builder is ready to start, as you do not want to hold up the process. 

How should I manage my builder? 

It’s important to have open communication with your builder from the start. Explain to him that you want to be involved and depending on your experience and time available let him know if you will be project managing the development or engaging a project manager. 

As project managers, we are in constant communication with our builder’s site or construction managers. 

[smartcode_project:default project_id=29921]

What does a project manager do and do I need one? 

A project manager can help you to fast track your development. A good project manager will: 

<ul>
<li>Save you money</li>
	<li>Save you time</li>
	<li>Minimize your risk</li>
	<li>Teach you how to manage your development</li>
	<li>Give you access to sites not on open market</li>
	<li>Professionally manage, record and report the process for you</li>
	<li>Share their local knowledge, experience, contacts, suppliers</li>
	<li>Allow you to keep your day job</li>
	<li>You can learn the process then perhaps feel more confident to manage our next project. </li>
</ul>
You could use a project manager if you are inexperienced or time poor or both. It’s a good idea to use a project manager if you want to learn the process of developing, you can have your hand held through the development and will be amazed by what you will learn by being guided through the process. 

[smartcode_project:default project_id=22699]

Main steps in the construction phase include (for typical slab &amp; brick construction):

<ol>
<li>
Site preparation This involves clearing of the site and pegging out of the site by the surveyor. Sometimes retaining walls will also be built at this stage if required.</li>
	<li>
Slab The plumber will need to lay plumbing that will be located beneath the slab of the development. This needs to be done before the slab can be formed up.  The slab piering is then completed as per the engineer’s specifications and plans and then the slab can be poured.  It’s very exciting to see the slabs go down.</li>
	<li>
Frames and roof trusses The frames are generally prepared before being delivered to site and can be erected very quickly with a day or so. It’s great to walk around the site once the frames are up and get a feel for each room.</li>
	<li>
Roof tiling of metal roofing Some builders prefer to complete the roof before starting the brickwork and other builders work the other way around. I’ve found predominately builders want to get the roof on as quickly as possible to protect the frames.</li>
	<li>
Brick work This stage really gives the development true structure, and you can feel the development making good progress when you see the brickwork completed.</li>
	<li>
Rough ins This involves the electrical and plumbing wiring and pipes to be installed before the internal linings to the frames.</li>
	<li>
Internal linings After the rough in is complete, the insulation will be installed into the wall and ceilings and then the plaster will start on lining the walls and ceilings. You really get a good sense of space within the dwellings at this stage.</li>
	<li>
Waterproofing and tiling The wet areas will be water-proofed in preparation for the tilers to start work, generally after or even during the timber mould out.</li>
	<li>
Timber mould out This stage involves the carpenters installing the skirting boards, architraves, door jams and doors and kitchens.</li>
	<li>
Lock up is when all external doors including garage doors are on.</li>
	<li>
P.C.  fit out. P.C. is a term for a prime cost item and includes tapware, bath, mirror, vanities and other accessories, which are installed at this stage.</li>
	<li>
Practical completion. This is the point in time when an inspection is conducted when builder is almost finished. You will walk through the development with the site manager and point out any items that still need attention. By this time it should only be touch ups and minor items requiring installation.</li>
	<li>
Handover This is when you are happy the construction has been completed to your satisfaction and to the plans and after paying the builder’s final invoice, keys will be handed over to you. </li>
</ol>
When can I lease out or sell my development?

Once handover is completed and you have received the occupation certificates from the council or your private certifier, you can lease the dwellings out.  If you are building more than one dwelling then you may also be subdividing, so you cannot sell the individual dwellings before you have subdivision approval. They may be sold subject to approval or registration of the subdivision. 

[smartcode_project:default project_id=7633]

Seeing your development emerge from the dust and dirt and slowly take shape until it resembles exactly what you have planned is one of the most exciting and satisfying moments you could experience as a property developer.

As I see Property Bloom projects come to completion, it really makes me feel like we’ve achieved an amazing thing for our clients; manufactured equity, provided education, created strong yields and most of all helped them fast-track their portfolios and plan for their future.  It is such a wonderful feeling to step back and look at what’s been created and understand the needs that have been met for our clients and for the local communities we develop in. Seeing the dwellings tenanted or sold and lived in by families that will get to enjoy the fruits of your labour is what it’s all about.

Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
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The 13 steps in the construction phase of building a new home

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Property development can be daunting, so I’ve put together some FAQs to help address some of the important questions that will arise as you start your development.
This has been broken down to a three-part series:
<ol>
<li><a href="https://www.propertyobserver.com.au/developments/how-to-get-started-in-property-development-jo-chivers/2012061355113">Getting started (as seen last Thursday)</a></li>
<li>Design, planning and approvals</li>
<li>Construction time </li>
</ol>
 
Part two: Design, planning and approvals 
Winston Churchill famously once said “He who fails to plan, plans to fail”.
The design and planning phase of your property development will directly impact your end result.  So this is a very important stage.  Don’t rush it, take time to think about what you want to achieve and ensure you are happy with each milestone before proceeding on, as it can be costly to turn back and start again. 
Who do I need in my team for this phase of my project? 
You’ll need a surveyor, architect or draftsperson, builder, town planning consultant (not always necessary), the local council, perhaps a private certifier and a development project manager such as Property Bloom if you are time poor or inexperienced. Also your accountant can play an important role in helping you run your feasibility studies. 
Where do I start? 
You must start with clear concept of what you want to achieve.  Here are some questions to ask yourself:
How many dwellings do you want to get onto the land?
How much equity do I want to create by developing this land?
What does the DCP (development control plan) allow?
Design single- or double-storey dwellings – what does the market want?
Are you building to hold or sell?
Who is the target market – tenants or owner-occupiers?
If holding, what do tenants look for in rental properties?
What is the demand for the number of bedrooms?
What do I need to do to differentiate my development in the market?
How much can you finance?  It’s extremely important to have a preapproval on your development finance so you know you can complete your project.
What is the best structure to purchase and develop in?  This is a good question for your accountant. 
What do I do once I’ve found some land to develop? 
The first thing you’ll need to do is to have a surveyor completed a contour and detailed survey. Contour and detail surveys give a true representation of the shape, features and services of a site. They normally include manmade improvements, trees and, if required, adjoining property information.  Once you have this survey, you can pass it onto your architect, draftsperson or builder.  They need this to start on the concept plan.
Another important investigation tool is a geotechnical report. This will classify the site, soil and wind affecting your site.  This information is important to consider when starting on the design and critical for the engineering plans. 
Do I need to use an architect to design my project? 
This will depend on your goal and the area you are developing in. Sometimes it’s not necessary to use an architect if you know what you’ll be building is fairly basic. But if you are looking to create something a little different or need some expert advice on a tricky site then engage an architect. Property Bloom has a great relationship with our builder and we use the builder’s in-house drafting service to save our clients money. We will use our architect for more high-end developments. 
Steps in the design phase include: 
<ul>
<li>Concept plan. This will be the first concept of what can be achieved, and you can make changes to this. You can use this plan to show the council town planner to ensure you are designing within council guidelines. It’s easier to make any changes now then after you’ve submitted the DA to council. </li>
<li>DA plans. Once you’ve approved the concept plan, then you’ll move to the full development application plans, which are more detailed and may include other documents such as statement of environmental effects and Basix reports that need to be submitted to council with the DA plans. </li>
<li>CC plans.  Construction certificate plans are require after your DA has been approved. They will include engineer’s stormwater and slab design. </li>
</ul>
How long with my DA take in council? 
What a great question and one that has many different answers. It will depend on the complexity of your project and your council.  A single dwelling will be processed quicker than a medium-density project, for instance.  You may be doing a complying development and not even need to lodge with the council.  Speak to your council to get an idea of their processing times so you can plan this into your timeline.
Should I use a private certifier? 
Property Bloom always uses a private certifier once we’ve received our DA consent. We find it is much quicker to obtain the construction certificate consent, and the inspection process during the build phase is usually also speeded up when using a private certifier. To us this is well worth the small additional cost as time is money. 
What is a project schedule? 
At Property Bloom we prepare an initial project schedule that shows our clients the estimated timeline for the project. We use this tool to cross check each phase and gauge how we are progressing.  Each project is different and will take different amounts of times over each phase, but our job is to keep the project moving forward as efficiently as possible. so using the services of a project manager can really assist especially if it’s your first project, as you’ll learn so much from being guided through the often complex process of property developing. 
How do I complete a feasibility study? 
It’s important you undertake a detailed feasibility analysis before you decide to proceed with your development.  There are various software around you can use, but you’ll need to know what estimates to include, that’s the tricky bit.  At Property Bloom we base our analysis on recent and similar projects we have completed. As we’ve project managed over 50 developments in the Hunter region of NSW, we have a very good idea on the costs involved and are able to make quite accurate estimates.  From your analysis, you need to calculate the expected cost of the project and likely profit or equity that you can create from it and gross yields if you are planning to hold.  Once you’ve completed your feaso, keep updating it with the actual costs as you proceed through the project to keep track of the viability your development. 
“Planning is bringing the future into the present so that you can do something about it now.” - Alan Lakein.  That’s what I love about property development – bringing the future into the present.  You really can’t spend too much time on the design and planning phase of your development, but try not to get overwhelmed by all the detail.   While this is the most time-consuming phase, remember to step back and visualise the “big picture” to ensure you keep moving forward towards your end goal.
Jo Chivers is director of <a target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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Mastering the design, planning and approval stage of a property development

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Property development can be daunting, so I’ve put together some FAQs to help address some of the important questions that will arise as you start your development.
This has been broken down to a three-part series:
<ol>
<li>Getting started</li>
<li>Design, planning and approvals</li>
<li>Construction time</li>
</ol>
Today I will talk about getting started.
What is a developer?
I quite like this description:
“Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end” Wikipedia 
I especially like the words ‘create, imagine and orchestrate’, as this is exactly what we do at Property Bloom.  When we find a development site, I will stand on it and spend some time visualising what can work on the land,
What’s my development strategy?
Only you can answer this one.  It’s important to determine your development strategy and your investing criteria before looking for a development site.
Your strategy may include:
<ul>
<li>Land subdivision</li>
<li>Renovating and adding value to an existing dwelling</li>
<li>Dual-occupancy or low-density development</li>
<li>Renovating an existing dwelling and building new villas/units also on the land</li>
<li>Medium-density development</li>
</ul>
 
How much money will I need?
Well, that’s like putting the chicken before the egg. You should set a budget before you find your site. Your budget will help to determine your development strategy.  A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development for instance.
How much profit should I be making?
Profit can come in many forms: long-term capital growth, rental yield, depreciation or tax returns and equity, even self-fulfilment.   As part of your strategy, you will need to determine your financial and personal objectives.   Do you want to sell immediately?  Are you planning to hold and refinance to draw out the equity you’ve created?  Are you developing to hold, rent and build your portfolio?
Each decision will mean different outcomes, and you need to seek the advice of professionals on this. Start with your accountant to ensure you understand the GST, CGT and other tax implications of your plans.
What’s the one thing you need before you put an offer in?
A conditional loan approval.  Knowing that you have a preapproval to a certain amount is a valuable negotiation tool. Tell the agent that you have your finance approved as you make your offer so he or she understands that you are serious and can follow through on your offer.
What are the four crucial pre-purchase checks needed?
<ul>
<li>Pest and building report – if there is an existing house you are going to keep/upgrade</li>
<li>Ident survey – this will show the dimensions, description of the property, any covenants easements and/or encroachments to the land.</li>
<li>Review the sales contract – use the professional services of a conveyance or solicitor, but you can easily check the 149 planning certificate to ensure it is recent. This document will tell you the zoning and if the property in a flood-prone, bushfire-prone or mine subsidence area and many other environmental factors. </li>
<li>Confirm with the council what can and can’t be done with the land, and you should have a good understanding of council’s development control plans.</li>
</ul>
 
Two important steps to make once you exchange or secure the site:
Order a contour or detailed survey – this is needed to supply to your architect or draftsperson and your builder so they can start work on your plans.
Order a geotechnical report – this will determine the site and soil classification and ultimately have a bearing on then engineering for your slab or footing design.  If you think the site could be risky, for example if you think it may be undermined or have a water course near or below it, have a geotech report done before you exchange or secure the site.
Who do I need on my development team? 
<ul>
<li>Property specialist accountant and solicitor</li>
<li>Finance broker or personal banker </li>
<li>Surveyor</li>
<li>Architect/draftsperson</li>
<li>Builder and other tradesmen, such as plumber, electrician, carpenter</li>
<li>Consultants such as an engineer and private certifier</li>
<li>Quantity surveyor </li>
<li>Development project manager  – to guide you through the entire process</li>
</ul>
Getting started can often be the hardest step. Once you’ve found your site, completed your due diligence, worked out just what you are going to be doing with it and managed to secure it, then the best parts are yet to come.  Let the creative process begin.
Look out for part two next Thursday.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
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How to get started in property development

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Today I drew inspiration from a lovely young man I had coffee with. His name is Matt, and he’s one of our clients.  Matt’s a switched-on guy, maybe about 30 or so, has a psych degree, owns three investment properties, all high yielding (I’m talking 9 to 15%!), runs his own importing business, has been to a property seminar or two, and he and his wife are expecting their second child in a couple of weeks. Oh, and he’s also very polite.
We’ve just finished a development project for Matt and now we had the actual end figures confirmed, we caught up to reflect on how his first project went with Property Bloom and what he could be doing to plan for his next.
That’s what I like about Matt. He’s a planner, a big-picture guy, yet he still keeps track of all the fine details. Here he is, two weeks out from having his second child and we’re sitting discussing property development options (we did also touch on the benefits of epidurals!).
We chatted about current economics, the estate of affairs here in Australia with our political uncertainty, the constant barrage of whether Julia Gillard is a worthy prime minister, the lousy situation in Europe – is Spain going down and when?  How will Greece pull through? The Queen’s Diamond Jubilee and how cool Kylie Minogue’s outfit was (OK, that was my comment; I don’t think Matt had an opinion on that one).
We covered off the “two-speed economy” of Australia, the state of China and how much coal do they actually need (a lot, thought Matt, as he visits China regularly for business and has seen for himself the massive changes taking place).
We both agreed that the current state of affairs was actually the perfect property investment environment for those who could block out the noise and focus on what was happening right under our noses.
We’d concluded that we didn’t actually care about what’s happening in the global arena (apart from seeing our superannuation cut in half over the past year).  While we weren’t being irresponsible, we just both decided that it didn’t really impact on our big picture.
This comment from Matt said it all:
”Jo, I’m not going to wait around for the world to determine my future.”
There it was. His words really resonated with me.  His statement so bold but yet so matter of fact, making perfect sense.
There’ll always be something to wait for. Let’s wait til after the new baby comes. Let’s wait for the next election. Let’s wait to see what happens in Europe. Let’s wait to see what the share market does. Let’s wait to see if the RBA cuts rates… Let’s wait, let’s wait, let’s wait!
Before you know it, you’ll be 65 asking “Why did we wait?... If only we invested in property back in 2012 when rates were low, yields were high and it was a buyer’s market.  What were we waiting for?”
For my client Matt, I’ve got a great next development project coming his way because he’s not going to hang around waiting.  So by the time his new baby turns one, he’ll have another great project under his belt.
So what are you waiting for?
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
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Now is the perfect time to invest in property if you can block out the noise

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There can often be some misunderstanding around a fixed-price contract.  If you don’t know a builder, then there can also be a little mistrust as you look over the tender. Am I being overcharged?  Is everything included?  Will there be many variations?

Today I opened an email that made me smile and really feel grateful for such a wonderful builder we are working with on our development projects.

The email came from the office of my builder. It related to a three-villa project under construction. It had two variations attached to it; one for the site preparation and the other for slab piering.  I’d been overseeing the works with the site manager so I was expecting the variations but weren’t sure on the exact cost they’d come in at.

“Variations are changes to the original contracted work, which involve either an addition or reduction in the scope or value of work,” so the <a href="https://consumer.masterbuilders.asn.au/the-building-process/contracts-and-variations/variations">Master Builders Assoc describes</a>.

So you’ll always find some items marked as provisional in your builder’s contract, because you can’t always plan the entire “scope or value of work” required when developing.

In this builder’s contract this clause was clearly included:  “Provisional sum is the estimate cost of labour and materials; it includes an amount for the builder’s margin. If the cost is more than the allowance, the difference including builder’s margin will be added to the contract price. “

Back to our three-villa project variations.  The first one covering the site preparation was for tree removal.  The builder’s tender covered vegetation clearing but from the time Property Bloom located the site, ran our analysis, designed the project, lodged the development approval and construction certificate and the client had her construction loan finalised and we could start to build, the vegetation had grown to a rather large tree.  We did get a quote from a tree lopper to clear it, but we decided that it would be cheaper for the builder’s excavator to push it over and clear it as part of the site preparation. So we did expect a little increase to this provisional cost but wouldn’t know until the excavator submitted his invoice to the builder. It ended up being a little over $1,000 for this work.

The other variation was for under slab piering.  Once work was completed, we knew that we hadn’t needed to use the entire provisional allowance in the builder’s tender.  When on site with the concreter, I could see that the depths he was drilling to were not as deep as expected and so there were less lineal meters of piering required.  For this work our client was receiving a credit as the provisional allowance was over-estimated.

I needed to let my client know that there had been some variation to the build cost.  After all, she had signed a fixed-price contract a few weeks earlier, but I had made a point to explain the items marked provisional in her contract.  Usually provisional items are:

<ul>
<li>Disposal of stormwater – even with an engineer’s plan, this may vary during construction</li>
	<li>Retaining walls – the square meters of retaining often can’t be totally confirmed until the site is cut</li>
	<li>Piering to under the slab – dependant on how deep they may need to drill to hit solid support</li>
	<li>Site preparation – excavation – cut and fill.  There can be more fill required to bring in or take away</li>
</ul>
The conversation I had with my client was easy. She was coming out in front with the credit on the piering more than covering the variation on the site clearing.  This is the kind of outcome we strive for, but it doesn’t always work that way.

In property developing or home building, there can often be a degree of disappointment once under construction as issues arise.  Mostly this comes down to the developer or home owner’s expectation that the costs won’t change.

The more developments or home builds you manage, the more issues you become aware of. But if you can go into it knowing there is a degree of risk that you must take, then you won’t be disappointed if an issue does come up.

No one can really know what will happen once you start work, but as project managers, it’s our job to manage the issues in the most effective way so that we minimise costs and the valuable time in may take to sort out the issue.  And when it goes the other way and a credit is issued, then that’s a wonderful feeling.

<h2>Recently listed properties:</h2>

[smartcode_project:default project_id=3490]

[smartcode_project:default project_id=3783]

[smartcode_project:default project_id=3565]
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Why the cost can change, even in a fixed-price building contract

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The recent news that the aluminium smelt is closing in Kurri Kurri, a town in the Hunter region of NSW, is very sad.
My thoughts go out to the 350 or so workers who will be looking for new jobs or being forced to retire over the next three months as the business winds down.  The plant is blaming a lethal combination of prolonged record high trading of the Australian dollar and low metal prices. Ironically, the announcement coincides with the Australian dollar slump to a six-month low off the back of the situation in Europe, but the slump has come too late to help this business.
So how is this going to impact the local property market?   More importantly, will this impact the property market at all?  Of course it will, I hear them saying – but let’s take a closer look at this town and the underlying fundamentals.
Kurri is a small town with a population of just 14,000 at the last census.  However, its close proximity to much larger towns has made it a popular place to live for those who like the peacefulness of a small town.  It’s only 14 kilometres away from Cessnock, a major tourist and retail hub with a population of 46,000 and 13 kilometres away from Maitland– the fastest-growing inland town of NSW with a population of 63,000.
Kurri is certainly not located in the “middle of nowhere”.
So the big question is how many of the 350 people who lost their jobs actually live in Kurri?  I’m going to ask the local property managers this question to establish the possible impact on the vacancy rates. But will they need to vacate at all?
Can people still continue to live in Kurri and work elsewhere?  The answer is yes.
The saving grace for Kurri and hopefully the people who lost their jobs is the $1.7 billion dollar Hunter Expressway that is well under construction, currently employing about 800 staff directly on the project and more than 400 subcontractors.
This massive, four-lane freeway will have an interchange at Kurri.  This means that the expressway will cut driving time considerably from Kurri to the mining towns on New England Highway and also to Newcastle and the F3.  So people can still live in Kurri and work in the coal mines of Singleton – only an estimated 30-minute drive once the Hunter Expressway is completed – or even Muswellbrook, a further 40 minutes or so.  A short 20-minute drive will bring them to Newcastle.  Kurri is a more affordable rental market than Singleton, Maitland and Newcastle.  Having the interchange makes Kurri a very central place to live.
Then there is the undersupply of workers in the Hunter resource industries.   A quick look on one recruitment website reveals that there are 1,118 jobs available right now in the Hunter.  There has been an acute skills shortage for years with many businesses complaining that as soon as they train up an apprentice they are lured into the mines by well-paid jobs.  The Hunter Valley Research Foundation has reported that the region’s workforce grew by more than 8,000 in the March quarter.
The Hunter is a diverse area with thriving industries including tourism, agriculture, manufacturing, coal and mining, power generation and winemaking.
When one door closes, another door opens, so here’s to a bright future for the people of Kurri.
Jo Chivers is director of <a target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
 
 
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Kurri Kurri can survive the closure of its aluminium smelting plant: Jo Chivers

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I used to get very excited when an agent called me to say: ”Jo, I’ve got a great DA-approved site coming up...”   My little heart would pound as I’d eagerly keep checking my emails for the plans and consent to come through.
As soon as they did, I’d open the consent file first and scan the conditions. Any weird and wonderful requests would jump out at me like, “the developer shall construct kerb and guttering, construct and gravel the road shoulder, place a two coat hot bitumen seal to road shoulder.” That’s a really bad one.  It could mean up to 50 lineal metres for kerbing plus road works!  This condition really gets up my nose as the council is basically offloading its road cost to us.
Next, I’ll scan to the council contribution condition, the Section 94 as it’s called in NSW.  This can vary greatly from council to council and sometimes it’s reasonable, but mostly it’s highly unreasonable.  All these conditions need to be allowed for and are on top of the construction costs.  And, they won’t add any value to the project.
Once satisfied with the consent, I’d close that pdf and venture onto the others.
Usually the files I receive of plans are bad scans that the agent has tried to do off the large format plans he/she’s been mailed by the vendor.  I can just picture the agent trying to fit the big plans onto the scanner, capturing the vital bits.   If I’m lucky enough to make out the designer at the bottom, I’ll pick up the phone and call the agent to discuss the plans and get a decent lot sent over; in particular I’m looking for the stamped plans. If they are not stamped then they may not be the final plans and I could be wasting my time.
When I have a decent set of plans to review, the first thing I look for is the fall on the block.  Is it a flat block or are we going to need lots of site works and retaining?  Then my eyes would scan over the floor plan, and then skip down to the bottom of the plan where they usually mark up the gross floor areas.  Are the villas big enough?  Are they too big?  I’d check the site plan and look for the little compass rose which will tell me the aspect of living spaces.  North facing is good.  On first glance, most plans may look OK.
Then I’d forward all the details I’ve been able to find onto my builder for an estimate.
In fact, this is exactly what happened this week as I looked at a DA-approved dual-occupancy site.  Then came the call from the builder: ”Jo, I’ve got the cost in,” he’d explain, and I’d hold my breath with my analysis spreadsheet open on my computer, waiting, ready to drop in the number, the magic number.  Bang, there it is, the moment of glory ... or defeat.
Today it was a big noooooo that echoed through my mind (and my office) as I watched the bottom line, the most important line of the spreadsheet, turn red.  The bottom line of my spreadsheet shows the estimated equity that could be created for my clients from the development.  Red is not good.  This DA-approved site was overpriced and been ill-designed. It simply did not stack up. The designer had created a plan that was unfeasible to build.
After a few curses, I return my focus to finding a raw site, one that we can work on from the beginning to get the best results from.
As a developer, it’s important to cross-check the cost of your design before you lodge your DA. Sounds straightforward right?  But most DA-approved sites I come across are on the market for one reason.  They don’t work.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
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Be wary of DA-approved sites on the market

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Who is the most important person to approve the design of your project?
Is it the draftsperson/architect who is designing them?  Or perhaps a town planner at thecouncil?  Or your lender?  Maybe you?  In my opinion, none of these.
I can’t tell you how many plans we look over and present to our builders for tendering.  Some come to us as DA approved sites, some also have the construction certificate issued – they are our favourites as all the fees and charges have been paid and we can start building immediately.
But most often we will find a development site and have to start from scratch designing the development.
We may use an architect to design the project depending on the location and type of dwellings we want to build. Or we will ask the builder’s in-house drafting department to prepare plans based on a standard builder’s design.
I often find that the stock-standard builder’s design works best because the builder has built it time and time again and they know how much it will cost and any issues with the design have been ironed out long ago.  We can usually make some small changes to the floor plan or façades to put our own stamp on it and make sure it’s different to what’s been built in the area very cost effectively. But every site is different, so it’s important that the design you use, is adapted correctly to the site.
One of my biggest issues as a project manager is when the architect or draftsperson has not bothered to go to the site.
Today I had one of my site managers phone me and the conversation went like this: ”Jo, did that @$##8 draftsperson even come to this site when they were working out their levels?” I said,” I don’t know, this site was DA approved before our client came to us to project mange it... What’s up?”
“Well, I doubt it,” he said, “as the plumber has just installed the drainage pits to the level on the plan and now we have to bring in tonnes of fill and retain this area to make the drainage work”.
You can only imagine my response.  Three hours later, we’d worked out a better solution at no additional cost to the client, but it took several discussions between me, the site manager, the engineer and the draftsman.  So that’s where my morning went. This could have been avoided if the draftsman had come to site to see in real life what was there.
As a standard practice, we have the construction manager of the builder we are using to oversee all our drawings and plans and make sure he is happy with them from a construction perspective before they are submitted to council.  This has made the construction phase a lot smoother.  Often a draftsman’s lack of understanding of the actual building process or the site can mean costly corrections when under construction.
So the most important person for me to check our plans is the construction manager. He is going to be the one standing on the site bringing the project to life, and if he hasn’t picked up an unforseen issue then I don’t know who would.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
 
 
 
 
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Why the construction manager is the most important person to a development

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Jo Chivers

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