<html><body>
When it comes to developing, we have all heard about the development application (DA) and the construction certificate (CC), but how and what exactly is involved with each council approval?  It is important to understand this process before you start developing.
The DA and CC are two very different approvals. If you find a DA approved site but the CC has not yet been issued, then you should understand that there is still a lot of work to do before you can start to build.
Development Application (DA) The DA is a request for permission to carry out proposed development. It also categorises the developments as requiring consent, developments not requiring consent (Complying Development, CDC) and prohibited development.
A development application is required for the following reasons:
<ul>
<li>Construction of new building or structure, including swimming pools, outbuildings, retaining wall, jetties, etc </li>
<li> - Add or alter an existing building or structure </li>
<li> - Demolish a building or structure </li>
<li> - Display an advertising sign </li>
<li> - Change the use of an existing building or land </li>
<li> - Carry out excavation, earthworks or adding fill </li>
<li> - Development on or near a heritage listed item </li>
<li> - Development within a heritage conservation area </li>
<li> - Subdivide land or strata subdivide a building</li>
</ul>
A development application must consist of at least:
<ul>
<li>Completed application form and fees. </li>
<li>Copies of site plans indicating location of the proposed development on the land. </li>
<li>Copies of plan/drawings of the proposed development indicating elevations heights. </li>
<li>Other supporting documents (if required) </li>
</ul>
 Construction Certificate (CC) A Construction Certificate is required after the DA consent is issued and before any building work is carried out.  You can apply for a Construction Certificate only if you have prepared detailed plans, specifications or engineering details.  And importantly, if all the council and other service fees and charges have been paid.  This is where some first time developers may get caught out when buying a DA approved site.  It’s very important to understand the conditions of the DA consent and how they will impact the development.
The Construction certificate certifies that relevant matters are adhered to, this includes:
<ul>
<li>the construction plans and specification comply with the relevant standards (ie Building Code of Australia);</li>
<li>the construction plans and specifications are consistent with the development consent; and </li>
<li>all conditions of the development consent requiring compliance prior to the issue of a construction certificate are finalised.</li>
</ul>
Note: The CC is not required for complying development, where building details are covered by a Complying Development Certificate (CDC).
If you are unsure of the planning process, then use a qualified planning consultant or development project manager.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
</body></html>

jochivers-wq5Bp59R5a

Understanding the planning process

<html><body>
Tuesday this week was the most volatile day for Australian share markets in 27 years, with shares down 5.6% at one point. Apparently, it was the only day where the market was down by such a significant margin, only to turn and finish in the black. Talk about a rollercoaster ride.
We are seeing very low consumer sentiment, in fact confidence has fallen for the past four months straight as everyone is spreading their doom and gloom thoughts.
This week, the Australian dollar fell below parity for the first time since March this year and the US Central Bank announced they would keep interest rates at zero for the next two years.
Retail spending across the country is growing at its slowest pace in 50 years. This is just some of the data I’ve been pondering today when writing this column.  It wasn’t hard to Google up the negative news, so when I was asked to write about my take on it all and how it may affect starting a new development, I really had to stop and think.
Because what is extremely interesting right now, as we see these turbulent times in the stock market and world economies, is that we are getting a lot of enquiry from people wanting to take the next step into developing property.  We’ve never been busier. You might think this strange as developing is often referred to as a ‘risky’ strategy. And if there’s one thing we don’t need now in these volatile times is more risk.
But is developing really that risky?  Not compared to what else is going around right now.  By developing, you are adding value to your property.  I’m not suggesting you build a block of 50 units, perhaps look at a simple dual occupancy development, creating two properties from one.  By doing just this, you can also create equity rather than wait for capital growth to come.  If you take it one step further and build three villas on your land, you will see the equity creation grow substantially with little further risk.  Three villas may take only a little longer to develop than two.  Minimise the risk by using a project manager to help you fast track your development.
Our clients at the moment are also holding investment properties.  They want to add to their portfolios quickly and they see opportunity in today’s buyers market.  Hmmm....on one hand there is the doom and gloom of what they are calling the ‘Second GFC’ and on the other hand we have clients lining up to buy development sites.
I think I know why.  Over the past few years, we’ve seen our rental markets tighten and tighten and keep tightening.  So those of us holding investment property have finally been able to reap the rewards of higher yields.   In the meantime, our access to credit has loosened up, a little bit anyway.  Most lenders are offering higher LVRs and softened serviceability criteria compared to the drastic changes that were made in 2008 as a result of the global credit crises.  Construction loans are becoming easier to obtain for multi unit developments and I’m working with one lender who is now lending on Tentative on Completion valuations, meaning developers can borrow against the end value of the development, maximising their finance and using less of their own cash.  As a result, investors holding high yielding investment properties can service a development.
Property Bloom develops property in the Hunter Region of NSW, but only in large towns where the government is spending up on major infrastructure projects and where there is growing employment.  The coal mining industry has an impact on most of our towns but we still like to develop where there is a diverse economy.  We choose towns that have already been earmarked for high growth to take up the area’s growing populations and where there is strong rental demand.  In fact, these towns are powering along, some are even opening retail stores, it’s like they are on another planet, oblivious to what is happening in some parts of Australia and other parts of the world.
So is property development a good strategy right now. It’s a yes from me, but only in the right areas.  I think we’re on the cusp of a growth phase that may be triggered when interest rates drop. The demand will come from mainstream investors wanting less volatility than the share market is offering.  If you are adding value to your property at the same time as the market moves up, it’s a double whammy.  I really think this is a window of opportunity rather than a gloomy dark place.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
</body></html>

Property a window of opportunity in dark times

<html><body>
Property developing can throw many different challenges at you, and one thing I have learnt in this industry is there is always a solution to a problem. The trick is to understand what possible problems may arise and preparing yourself for them. Unfortunately things don’t always go to plan, and as a project manager it is up to us to make sure the development gets through as efficiently as possible.
One of the biggest areas for problems is not allowing enough for building works.
When pricing a development and running feasibilities, it is important to understand that your building estimate is an organic creature. By this I mean the building estimate you start with will nearly always be different to the one you end with. It will evolve throughout the process as you obtain more and more details. Once you have all the fine details, the building estimate can be finalised to the fixed price builder’s tender.
If architecturally designing our villas, we generally follow this process:
<ol>
<li>Concept plan – this will show the number and size of villas on the land, but not much detail</li>
<li>Development Application (DA) – enough information is included on the plans to satisfy the council</li>
<li>Construction Certificate (CC) plans –more detail, including engineer drainage and slab design</li>
</ol>
The starting point for our build estimate will be based on similar projects that we have recently completed and an allowance for the different site.
This progresses to an estimate based on the concept plan. Still a very loose estimate, as there is usually not enough detail on the concept plan for the builder to have all information he needs. The build estimate we have at this stage will tell us whether we are tracking within budget. If not, we can make the necessary changes required, perhaps reducing the size of the villas working with both our builder and architect to design the right dwellings for our project to be successful.
Once the concept plan is approved, the architect will proceed to full DA plans. It is here that much more detail is added and we will have our builder price the DA plans. Again, this does not give us a final build cost but we will be getting closer to the expected outcome. Once approved by our client, the DA plans are finalised and the DA is prepared.
During the DA process, council may request some changes to the plans, so it is important to understand we are still ‘evolving’ at this stage. We also need to review the conditions of the DA consent before we have more detail to finalise the build costs.
Once the council has approved the DA, we will start to prepare the CC plans. Engineers will be briefed and a drainage and engineered slab design or footings for the foundations will be produced. More detail is added to the CC plans, finalising levels and double-checking schedules.
Before we lodge the CC plans with our private certifier we will have our builder issue a third costing. It is this costing that will give us the final build costs...well, almost. We still need to have the CC approved and ensure there are no further revisions to the plans required.
After we have the CC-stamped plans, our builder will issue his final tender and building contract. This will be a fixed price contract; however, there may still be a few items that will be provisional. They are usually some site works, removal of fill and retaining walls. The builder may mark these items as provisional as he won’t know until works proceed exactly what the cost is. For instance, if rock is hit during the site cut, this will increase the site costs. If the site cut differs slightly to the plans, this may impact on the height of retaining walls. So these provisional items will be charged at actual cost whether it is lower or higher.
So you can see how the build estimate must evolve through the development process and until your development is completed, you really won’t know the exact cost. It’s important you allow a contingency amount for any variations that may crop up along the way.
As a developer, you will embark on a challenging journey from start to finish and the path you choose can be simplified with the help of a project manager to guide you along the way. Always take the time to have full builder’s estimates done at each stage to avoid any nasty surprises.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Property Bloom</a>, which manages property development.
</body></html>

Development costs can be difficult to predict

<html><body>
This week we’ve been inundated by reports in the media about an impending market crash. I watched with interest as one current affairs program sensationalised and dramatised a story by editing quick grabs of what a few different commentators were talking about.
If you missed the host’s introduction that “some markets are at risk of collapse”, then you’d be thinking that we were all doomed and there was an impending national market crash fast approaching. Little cuts to the US property crisis didn’t help. Later in the story we do find out they were talking about what was going on in two Queensland suburbs where two people had purchased units off the plan in a massive high-rise complex in a very densely built-up area (a risky investment strategy). Further into the story up popped a list of other “difficult” suburbs around Australia. The interviews with several commentators were edited so much that we can assume that a lot of the really interesting detail they spoke about wasn’t included.
The problem with these reports is that they are designed to keep you glued to the TV and up the ratings and not necessarily to educate you on the topic. So if you were thinking about developing property and watched that program, you would certainly be having second thoughts.
It’s up to us to dig down to the detail, sift through all the noise and get to the facts. We need to become a specialist in the areas we want to invest in.
My due diligence includes tracking a certain postcode’s medium quarterly sales going right back to 1997. I buy this data from Residex, and to me it’s the best investment I can make as I can see:
-          How fast the market grew during its boom years;
-          The actual number of property sales each quarter;
-          The median price has stabilised and enjoys steady incremental growth over the past six to years even though the number of sales seems to fluctuate;
-          the impact the first home buyers had when they were active;
-          where this suburb is in the property life cycle; and
-          I know the average 10-year growth rate is over 12%, which works for me.
This long-term statistic can help you compare different suburbs. I overlay this historical data with the current research I collect on these towns. I read regional strategic council reports, I look for government and council spending on infrastructure and what is happening in the community.
A $1.7 billion freeway link is under construction and will have an interchange in one of the towns in this postcode. We are seeing two major supermarkets opening in one of the towns, and this is boosting employment. Another town under this postcode is enjoying incremental spend from the phenomenal concerts in the vineyards industry which is bring massive artists such as Elton John to the area and boosting the hospitality and tourism sectors. I know that the vacancy rate is under 1% and the type of dwellings that are in demand. Armed with all this information, I feel very confident that developing property in this post code is going to continue to pay off.
As a developer you need to be extremely confident about the location of your development because there are so many other factors that can affect your development, the more you can sure up, the better chance you’ll have of a successful result.
So is now the right time to be developing property? It will depend on the areas you are looking at. For me, it’s a resounding yes, as I’ve done the research and know that my client’s projects in the Hunter Region of NSW are going to do well for them.
Jo Chivers is director of <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
</body></html>

Do your research, and you will still find booming suburbs

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
When I first decided to develop property, I was overwhelmed and didn’t know where to start. I’d purchased four properties in Sydney and realised that I couldn’t keep buying negatively geared property, coming up with the shortfall required certainly puts the pressure on. By this stage, the major cities in Australia had become too expensive, so I began doing the figures on areas within a 200-kilometre radius of Sydney. The Hunter Region came up trumps.
I found that I could buy large residential lots of about 1000 square metres and develop them a lot more cost-effectively than if I were to develop in Sydney. Everything was cheaper, from the land purchase through to consultant fees and building costs. I also found the people there fabulous to work with. Most importantly, I found that there was a lot of infrastructure investment being made in the area.
Infrastructure investment is very important, as it stimulates the local economy by creating lots of employment and attracts more people to the area. Infrastructure projects create demand for rental property and other goods and services. As the projects progress, money is spent in the community and there is a flow-on effect to associated businesses. For instance, the local cafe sells more coffee and there is demand from contractors for convenience services such as laundromats and take-away food. Once the project is complete it adds to the local services. A great example of an infrastructure project is a new freeway being built, where the benefits may be to cut travel times, improve efficiency within the roads network, relieve congestion of vehicles in certain areas and attract more people to the area, as it will be quicker to access.
But you can’t just look at infrastructure investment when searching for a good location for your development; one of the other things you should consider is growth rates. The latest RP Data figures show that although values across Australia have fallen, New South Wales regional areas such as the Hunter and Illawarra are still performing well with median house prices up 2.2% and 3.6% respectively over the past 12 months. Both are in close proximity to Sydney, and this is a key reason for their standout performance.
John McGrath, CEO of McGrath Estate Agents, points out that Newcastle is a great example of an area growing for local reasons.
“It’s shedding its steel city image, and positive media attention is encouraging retirees, sea-changers and investors from as far as Melbourne, Brisbane and Sydney. Great value is available, and Sydney is just a two-hour drive. The median house price is currently $380,000, up almost 12% since 2009,” McGrath says.
Two weeks ago, the Newcastle Herald revealed figures from BIS Shrapnel that house prices are set to increase 18% in the next three years. It also states that residential properties in Newcastle are set to rise at the same speed as Sydney.
The Residential Property Prospectus for 2011-14 outlines an increased migration rate from Sydney, north to Newcastle and south to Wollongong, with Wollongong’s higher price levels resulting in a slightly lower growth rate compared with Newcastle and Sydney.
Sydneysiders’ migrations north and south are the result of a housing shortage in Sydney and a combination of higher prices and increased interest rates, according to the survey. It seems as though people are quite happy to commute to work one or two days a week to be relieved of the pressure of a huge mortgage.
When purchasing a property, we are told to “look for infrastructure”, so just what impact can an infrastructure project have?
I’m seeing right now a massive tightening of rental markets in two major Hunter towns I’m developing in. One town has a large coal mine that is being expanded. After many years in the planning, this expansion has been approved and now contractors are flocking to the area to work on the infrastructure required within the mine for it to expand. Once the project is complete the contractors will be replaced with additional full-time workers required to work the larger mine.
The other town is literally being put on the map by an interchange for a major expressway to be built. It’s a $1.7 billion infrastructure project, and the impact is being felt. All of a sudden we have seen McDonald’s, KFC, a new Coles supermarket and an Aldi store being built in this small town. Consequently, there are a lot of contractors working on the road works looking for rental properties and rental returns are increasing. Employment prospects are bright now in this small town.
Although we love infrastructure spend, other boxes the Hunter Region ticked when I was researching the area include:
- Proximity to Sydney
- Affordability
- Strong rental demand and low vacancy rates.
- Undersupply of new housing
- Strong population growth – Maitland has been the fastest-growing inland town of NSW for a few years running
- Diverse economy – although the mining industry supports the area, the wine, hospitality, tourism and retail industries are also providing many jobs
- Large lots of residential land
Developing property is challenging, and getting it right takes a lot of time and research. But we are lucky to have a plethora of information and statistics provided to us by qualified researchers, companies and the media. So it’s up to you to sift through it all and work out what may be a viable location for your property development. Good luck!
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Property Bloom</a>, which manages property development.
</body></html>

Why infrastructure is important to your investment

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Property developing can be very rewarding and it can also be overwhelming, especially if you are building in an unfamiliar area for your first development.
The best way to become familiar with your choice of location is to find out how the local council works and what it would like to see built in their area. Developing relationships with the local town planner could save you a lot of time and money, and help make the difference between a frustrating project and a fabulous development.
To get off on the right foot, do some research on the type of new development you see around the town, and consider what you would like to build. Then call the council and organise a meeting with a town planner. Discuss your plans and find out what will help your development application get across the line with minimal stress.
You’ll also need to do some reading so you know what is and isn’t permitted in the area. This way you won’t be wasting the town planner’s time asking basic questions, and you can get straight to the details of your particular development.
Some documents to read include:
Local Environmental Plan (LEP)
You will find this on the council's website. An LEP defines the land zones and outlines permissible land uses within the zones. This will determine what type of building you can put on the land: low, medium or high density. Currently, a number of councils in NSW are preparing draft LEPs so check to see if your council is working on a new LEP, as when processing your application, councils will take the draft LEP into consideration, even if it has not yet been gazetted. Development Control Plan (DCP) 
 This document contains more detailed provisions than the LEP. Its information is specific to geographic zones or development types. It will give you a thorough understanding of the guidelines to follow when developing in your chosen area.
Regional Strategy Report
While not all councils have one, this is commonly used to outline areas with the greatest potential for development. It will outline plans for land releases, land rezoning, population and employment projections and will pinpoint specific areas earmarked for future growth.
When you meet a council planner, come prepared with the 149 planning certificate from the contract of sale of the property or land you are looking to develop. The 149 will indicate if the land is in a bushfire or flood zone, for instance, and it will tell you what is prohibited on the site, and whether it is heritage listed. If you are not sure about some of the information in the 149, the planner can explain it to you. Also bring a survey and sewer diagram, which can be found in the sales contract.
Council meeting minutes will sometimes give you valuable information on other similar applications that have gone to a council meeting and comments made about the developments. You can also read other development application consents to get an insight into the type of conditions that council may impose.
Some questions to ask your planner:
What kind of development does the council want to see in the area?
It’s important you work with your council, rather than against it, if you want a smooth process. You want to align your project with the council’s vision for the community.
Are there any problems in developing this particular site?
They may see a problem such as access onto the road, if it is a major road, or they may be privy to information on neighbouring properties.
Is the land in a flood zone?
 Although this will be included in the 149 planning certificate, it is really important to ask this question. The planning certificate you have may be out of date or lacking information. For example, the council might be working on a new flood study, but this won’t be reflected on the planning certificate. By the time a development application is lodged, the property's flood zone may have changed, and it could be rejected. The council will have a flood and/or drainage manager who can give you up-to-date information over the phone. If the land is in a bushfire-prone area, be aware that you’ll need to comply with current fire-safety regulations, which will add to your building costs. What is the minimum lot size? 
 This will be specified in the DCP subdivision guidelines, however, sometimes the council may be a little flexible on this. If you are looking for land to subdivide, you will need to look for land more than twice the minimum lot size.
Are there any issues that may arise in developing in this area? A town planner will be aware of any social issues outside the constraints of the DCP. For example, I developed in an area where the local neighbourhood fought any application lodged for more than one dwelling on a title. I soon learned that the deputy mayor lived there and was rallying neighbours to fight the development applications. I sought legal advice and was able to negotiate with the council and gain consent, as my application met all the requirements of the DCP.
Once you have secured your development site, have your draftsman or architect put a concept plan together. You can use this to show the council your design and get valuable feedback from an early stage. Check if there are any specific reports that may need, such as acoustic reports or traffic counts. You can easily make changes at this stage to ensure your application is processed as quickly as possible.
After it has been lodged, check to see if your council has a development application tracker on its website that you can follow progress on. If you see it is not progressing as forecast on the tracker, call the planner and find out what the hold-up is. If there is no online tracker, make regular calls to your planner to keep on top of progress.
All councils work to different timeframes and according to their resources. Sometimes I am surprised at the speed of a council, but mostly we find the process takes too long. Staying in close communication with your council can help fast-track the process. Enjoy this important part of your development journey; you will learn so much from the planning process.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
</body></html>

The keys to a successful first development

<html><body>
Subdivision is one of the many ways you can develop property. It involves converting one piece of land or existing dwellings into several.
Raw land subdivision entails legally and physically converting raw, undeveloped land into developed land so that one or more buildings – residential, commercial or industrial – can be constructed.
As you will be changing the land’s usage and appearance, for example, perhaps from a rural zoned paddock into a residential land subdivision, you’ll also be building the infrastructure required, such as roads, paths, drainage systems, water, sewerage and perhaps even public utilities such as a park.
You can also subdivide developed land – much more easily – by simply splitting a block in half.
Subdivision of existing buildings is the conversion of a single title to multiple titles. For instance, a block of 10 units on a single title – often referred to as units ‘in one line’ – can be converted into individual titles, such a strata title. This is a great way to add value to the properties and allows you to sell them individually.
Subdivision is a great development strategy for current market conditions. It gives you flexibility to play it safe and sell off a newly created piece of land to reduce your loan, or to hold and add value to the property by registering the new lots and holding, or further developing, them.
The objective here is to have a creative outlook while searching for potential subdivision sites as it is this creativity that can determine the success of the development.
When to subdivide?
An investor might buy a dwelling on a large piece of land, where they can renovate a house and then subdivide, or perhaps it is a homeowner living on a potential development site where subdivision may be permissible.
The site will, however, need to adhere to the council regulations. The first thing you need to ask the council is the minimum lot size. You can find this out from your council’s development control plan for subdivision and their guidelines.
The minimum lot size will vary from council to council, and in different zonings. For instance, the residential minimum lot size will be smaller than rural-zoned land. One council I work with has a residential minimum lot size of 450 square metres – so we can subdivide a 900-square-metre corner block into two lots.
However, if we had a 900-square-metre piece of land that was not on a corner, we could not subdivide this, as we need to allow for a driveway to access the back lot and the area needed for the driveway is in addition to the minimum 450 square metres. So we would need a block of about 1100 square metres to be able to subdivide and allow for our access handle.
Another type of property to look for is land with two street frontages, so if it is 900 square metres, you can cut it in half and each lot will have its own street frontage.
Different types of subdivision
When looking to develop with subdivision, it’s important you understand the different types of subdivisions. Getting professional advice will help you to make the best decision for your site and also which potential purchase will make the process through the council the smoothest.
Strata subdivision is dividing a property into separate units, apartments or villas. Strata is land title based on the horizontal division of air space and may involve common areas shared by each title holder and usually managed by a strata manager.
Torrens subdivision is dividing one land lot into two or more land titles. This form of subdivision gives the owner autonomy with their land as they don’t have to answer to the strata manager or adhere to strata rules and regulations.
Community subdivision is a development with common property such as roads may be used by all residents.
The figures
When budgeting for your subdivision, you’ll need to start with a realistic target for how much the completed development will be worth, and then subtract costs, to calculate profitability. It’s important to run a feasibility analysis on the subdivision (covered in last week’s article) including possible costs for stamp duty, legal fees, surveyor services, council application and developer charges, civil works and service connections such as gas electricity and water.
Make sure you discuss your subdivision strategy with an accountant and understand the possible tax and GST implications if you are planning to sell. You will also need to estimate your holding costs, such as interest on your loan and rates. Remember, if it’s a straight land subdivision you won’t have an income from the property to help offset your holding costs, so time is money in this type of development.
Location
Getting the location right can make or break your development success. Research is vital here to ensure you are building a property where people in that area want to live. You have to totally remove yourself from the development as you won’t be living in it – your target market will be.
Inner cities are limited with the availability of land, so in this case strata division is being created through developments. Looking up to two hours outside the city allows you to be more creative in your development, plus you can usually create a Torrens subdivision. There may also be more room for growth in the outskirts especially if there is some infrastructure taking place in that area.
Choosing the right property
<ul>
<li>The first thing you need to properly assess a potential subdivision site is a survey. It’s amazing how many sales contracts I review that do not have a survey. So you may need to pay for this before exchanging as you need to be sure of the land size and whether there are any easements affecting it. </li>
<li>Get sewer diagram. You need to know where the sewer is located and if it is feasible, based on the slope of the land, to cost effectively extend it to service a new lot. </li>
<li>Check the slope of the site for drainage issues.</li>
<li>Check the aspect of the site and think ahead about where any new dwellings will sit to take advantage of the aspect.</li>
<li>Research the zoning regulations and read the council’s subdivision guidelines.</li>
<li>Compare market value – is vacant land in demand?</li>
<li>Check service connections – is there sewer available in the area, is there an electricity source close by?</li>
<li>Corner blocks are good for your first subdivision </li>
<li>Structure of property – this is important if you are developing a strata division as the building will need to be structurally sound to handle the requirements, such as firewalls, between units.</li>
<li>Have your solicitor check for restrictive covenants or easements. You may find land in a new estate has a covenant over it that does not allow for further subdivision.</li>
</ul>
 
DA approval 
Getting a surveyor to manage your subdivision DA can save you a lot of time. If you’re researching a new area, start with a local surveyor. They can give you advice on the subdivision process and cost indications. You need to use a surveyor to prepare your subdivision plan.
Once you have abided by the council’s regulations, it is the residents you may need to win over. Generally if the land you’re subdividing meets zoning requirements and you comply with the subdivision development control plan, there should be little your neighbours can do about your subdivision, however it is always a nice gesture to talk to them about your plans.
I always look at the best way to subdivide as part of our development process; the way that will be most cost-effective and not hold up the development process. We have found in many instances it is not the most obvious way.
What may look like a simple subdivision can turn into months and months of complicated work. The plumbing and civil works alone can really blow out a budget, so it’s important to understand the entire process before you embark on your first subdivision.
There are many more things to consider when planning a subdivision, so make sure you engage professionals to assist if you’re a beginner. A development project manager will be able to work with you on every stage of the process and you’ll be amazed at how much you learn along the way.
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
</body></html>

Subdivision: the most obvious option is rarely the best one

<html><body>
You’ve found what you think is a brilliant development site. Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process. Will the project be feasible? What is feasible, anyway?
Let’s find out. Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”
Some advice I can give you about property investing, and anyone in property will also tell you, is to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times, and this is where it can all come undone.
Firstly, it’s important to determine your development strategy and your investing criteria before looking for a development site. Your strategy may include:
-          Land subdivision
-          Renovating an existing dwelling
-          Dual occupancy or low-density development
-          Renovating an existing dwelling to build new villas/units also on the land
-          Medium-density development
-          All of the above
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.
As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development. You may have heard about the”20% profit margin” rule for developers. Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin. Personally, I don’t always work back from a certain profit margin, as I find this restrictive.
Most of my clients are looking to boost their portfolios and hold the new properties long term, so we also need to meet other criteria. By other criteria, I mean rental returns on completion. For instance, if a client wants to create a positively geared development, the end gross yield will need to be about 10%, and we will actively search for development sites in very strong rental areas of the Hunter to meet this objective. Other criteria will include the amount of equity we can create from the project. We strive to create more than $100,000 in equity after our project management fee.
To determine the feasibility of a site, you will need to:
-          Talk to an accountant who specialises in property and one who preferably develops property him or herself so that he or she can advise you on the best structure to purchase under and explain the tax implications when developing such as GST and CGT.
-          Meet with a financial lender or a bank to determine your budget and the best loan structure for your development. It’s important to choose a lender that offers construction loans and find out what their lending criteria is around this – e.g., not all residential lenders will lend to you for a four-unit site. Check interest rates on these loans.
-          Meet with solicitor to determine costs. Your solicitor will check for restrictive covenants or easements that may affect the land. He or she will also make sure services are available and connected, especially if you are developing in a new area, as well as finalising the deal for you.
-          Read the local development control plan and local environment plan and speak with your council’s town planner to find out development application and construction certificate costs. Get friendly with the town planner to find out which developments are wanted in the area, as this could save you time and money by getting it right the first time.
-          Meet with an architect and builder to determine what you can build on the site. Some builders offer standard designs, which will save you design fees. If they do this, then they will be familiar with the local planning requirements. If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.
-          A surveyor will give you advice on the subdivision process. He or she will prepare your subdivision plan and estimate costs relating to the subdivision including sewer extension and service connection costs.
-          Once you have a concept design and before you lodge your development application, meet with builders to determine construction costs. Try to get three quotes and make sure they offer you a fixed price contract.
-          Talk to real estate agents to determine the value of your development and rental returns on completion, as this will have huge impact on the success of the feasibility.
-          Research other costs such as stamp duty, reports, Insurance and Interest payments.
The aim is to keep the above costs to a minimum so you will receive a higher profit margin. All this information can be kept in a spreadsheet, or there are software programs to help you with this process.
 
<hr class="system-pagebreak">
 
Below is a quick one page analysis I do to determine if a development is going to be feasible. In this case the client is keeping the three properties we have created from one.
Purchase price three-bedroom house on 1,012 square metres of land: $210,000 Estimated set-up costs, stamp duty, legals, pest and building reports, survey: $8,500 Estimated renovation cost: $8,000 Build cost for a two bedroom duplex (2 x villas) to be built behind existing house: $353,000 Contingency: $20,000 Note: build costs includes all council, subdivision and other fees &amp; charges. I always ask my builder to wrap all development costs into their contracts so my clients can maximise their lending.
Total development cost to create three properties from one in Hunter Region of NSW: $599,500 
Estimated end values:
Renovated three-bedroom house on 400 square metres: $220,000
Two-bedroom villas, $260,000 each: $520,000
Total end values: $740,000
Potential gross equity to be created: $140,500
Note: lending costs are not included at this stage:
Estimated rental returns:
Renovated house $300 per week
Two-bedroom villas @ $280 per week each: $560 per week
Total rental return: $860 per week or $44,720pa
Gross yield on completion of development: 7.5%
Gross rental yield: How it works One of the first calculations you will need to understand if you intend renting the properties on completion is the gross rental yield. To calculate the GRY you need the annual rent and the total cost of the development. If we use the above example:
Annual rent: $860 per week x 52 = $44,720pa Total development costs: $599,500 Gross yield: $47,720 divided by $599,500 = 7.5%
The yield on the above example of 7.5% is ideal at the moment as anything over 7% is considered to be a strong yield. Some of our developments are creating up to a 10% gross yield.
Once you have obtained the estimates for your development and the figures are looking good, you have some actual estimates to go back and speak to your lender about and ensure you can finance the project. There are various finance options, so seek professional advice on the best one for your situation. Then before you purchase, ensure you have discussed the best legal entity to be purchasing under for your individual circumstances with your accountant.
When your finance is preapproved, you can then start to negotiate the purchase. Always ensure you have a preapproval before making an offer so you can move quickly to exchange. This is a good negotiation tool. Ask for a longer settlement and a lower deposit, which will reduce your holding costs.
There are many more things to consider for your site selection, so it’s important you do your due diligence. In the development game, time is money. So you will need to learn to assess a potential site very quickly. One way to fast track the analysis process is to engage other professionals to do this important work for you. If it is your first development then work with an experienced project manager so you can learn from them as you progress through the complicated and challenging journey of your property development. Enjoy the ride!
Jo Chivers is director of <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
</body></html>

How to determine if a development is feasible

<html><body>
What exactly is a property developer?   I quite like this description found on Wikipedia:
“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.”
I especially like the words ‘create, imagine and orchestrate’ as this is exactly what I do. When I find a development site, I stand on it and spend some time visualising what can work on the land, then I dissect this by considering several factors including:
The local market demand – what do people want to buy or rent in this area?
Local economics – what is the income of the people living in this area, where do they work, what can they afford? What infrastructure spend is going on right now or planned for the area?
Population growth – what is the growth right now and what is it forecast to grow to?
Budget – how much have we got to spend on the development process?
Market growth rates – what historically has this suburb been growing at and what are you expecting it to grow at?
End values – what are similar dwellings selling or renting for now?
Choosing the right area in which to develop is crucial. It requires research, research and more research. Most first-time developers can’t afford to develop property in areas such as capital cities where everything – including land, building costs and professional services – is more expensive. Instead, I suggest you cut your teeth on an affordable area within a three-hour radius of a capital city.
Look for areas that: - Offer promise, perhaps going through a gentrification phase; - Going through a growth phase, where median prices historically perform well; - Where the population is expanding;  - Where diverse industries support employment;  - Where private enterprises, such as large retailers or mines, have announced expansion plans.
All these factors result in strong rental and sales demand. Once you’ve settle on a location, search the area for land in close proximity to schools, shops and public transport, which will attract buyers or renters.
Below are tools to aid your research in finding the perfect location for your development. They include:
Newspapers and property magazines: subscribe to a local paper or magazine to keep up to date with community and industry news;
Property data sources: where you can purchase specific reports;
Websites: realestate.com.au, domain.com.au and Property Observer to name but a few;
Budget reports: look at federal and local government budgets and spending reports as this will show you where money is being spent on infrastructure. You will find areas that are pinpointed for future growth.
Planning information: from your state planning body and local council’s website. Once you have chosen an area to develop, it then comes down to good site selection. To assess a site, you will need to:
- Narrow down the area or suburb you want to develop; - Complete extensive due diligence on the economic and social factors of the area; - Know whether the suburb has a high rental demand; - Know what the vacancy rate is and what the median sales price is; - Understand the relevant council’s Local Environment Plan (LEP) and Development Control Plans (DCPs) so you know what the council will and won’t allow in your area.
You need all this information to determine if the land you are assessing has good development potential. The next step is to find the right property within your chosen suburb. This is called site selection.
Site selection criteria is based on factors including:
-          Location
-          Aspect
-          Slope
-          Frontage
-          Depth
-          What’s on top of the land
-          What’s underneath the land
 The location of your development site is obviously important. We all know being close to community amenities is a top priority whether you are planning to keep your new dwellings or sell them. Being close to schools and universities, shops, transport and medical facilities is very important. You should check out the neighbours on all sides of the land to make sure there are no dog breeding kennels, chicken coops, car workshops or noisy businesses that may make the location undesirable for tenants. Ask the locals about crime rates and go for a drive around the streets to get a feel for the area. Trust your gut feel or intuition: we will often get an instant negative feeling if something is not quite right.
Jo Chivers is director of <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
</body></html>

Choosing an awesome development site

<html><body>
Did you know that women are two and half times more likely to live in poverty in their old age than men? By 2019 on average, women will have half the amount of superannuation than men have, and 40% of women over 50 will be single through choice, divorce or death of their partners.
As at February 2011, the gender pay gap in favour of men was 17.2%, based on average weekly ordinary earnings, and it increases dramatically when we look at different occupations. For instance, professional women are earning 32.4% less than their male counterparts, sales women are earning 39.4% less and community and personal service workers had a gap of 28.9%.
So what can we do about it? We all need to take control of our future and plan ahead for our retirement. Building a property portfolio is a great way to complement our superannuation.
Right now, I’m seeing many women not just buying houses but taking on property developments. My business, Property Bloom, project manages developments for others, and I’ve noticed a massive increase of women taking the next step into developing property.
For every male client I have three female clients. And these women are not afraid to take on a little risk. They are developing up to four properties from one. I think in general, women are in a hurry to build their property empires. This doesn’t mean women are rushing in; they are very astute and carry out extensive research. They can see that property development can boost their portfolios quickly. They are all extremely busy juggling work or their own business and raising children. I can totally relate to that, with two young boys of my own.
It is still very expensive to develop property in many capital cities around Australia. Land prices, building costs, labour and developer charges are high yet, block sizes are small. So Property Bloom focuses on the fast-growing Hunter Region of NSW for development projects.
There are many factors that will cause the Hunter Region to continue to grow. While the resource sector plays a big role in the local economy of these large regional towns, they are certainly not reliant on mining. There are many other sectors making the areas we develop in very diverse. With 133 major projects underway, there are lots of employment prospects. Population growth is also tracking well, with the town of Maitland the fastest-growing inland town in NSW. The Lower Hunter Regional Strategy, a 25-year plan for the region, has earmarked several suburbs as major residential hubs, with significant growth planned. There is a large amount of investment being made in local infrastructure projects such as the Hunter Expressway, a $1.8 billion freeway link that is currently under construction. The cherry on the top is that it is only a two-hour drive from Sydney.
The land in the Hunter is affordable and the long-term growth trends are over 10% in the towns we develop in, with rental markets tight. The area is perfect for investing and developing.
Let’s take a look my client Angela’s three-villa development project. I love Angela’s attitude, she’s an avid property investor, mother of two children and working full time. When I found a large piece of land, just under 2,000 square metres in a growing suburb of the Hunter, I thought it may be too large a project for her. Angela’s budget allowed for a three-villa project; however this land was large enough to build six. So I came up with a plan to subdivide the land and get development approval for three villas on both lots. Then Angela could sell off one of the lots with development approval in place.
Land cost 1900sqm: $265,000
Stamp duty, legal fees, survey: $2,500 (she will save on stamp duty under NSW Builder’s Bonus scheme)
Works for a two-lot Torrens Title subdivision: $30,000
Total: $297,500
Net price after selling DA approved lot @ $180,000 (includes selling costs): $117,500
Design costs to obtain development approval and construction certificate for villas: $15,000
Estimated build cost for three villas: $680,000
Contingency: $10,000
Total cost: $822,500
Estimated end value of each three-bed villa @ $350,000 each x 3 : $1,050,000
Estimated equity to be created (equity less cost): $234,500
The rent on three villas will give a 7% to 8% gross yield. So this will be a great development for Angela. She can choose to use the equity we create to pay down personal debt or for her next investment or development.
Using a project manager to handle your development means you are handing over all the detail to someone with the experience needed to successfully manage your investment. Some of the responsibilities of a project manager include:
<ul>
<li>Source development sites</li>
<li>Run feasibility reports</li>
<li>Brief architects and designers, interpret plans, estimate costs </li>
<li>consult with architects, engineers and other technical workers to make sure that design intentions are met</li>
<li>plan construction methods and procedures </li>
<li>coordinate the supply of labour and materials</li>
<li>direct site managers and subcontractors to make sure standards of building performance, quality, cost schedules and safety are maintained </li>
<li>study building contract documents and negotiate with building owners and subcontractors </li>
<li>control preparation of cost estimates and budgets </li>
<li>make sure that building regulations, standards and by-laws are enforced in building operations </li>
<li>negotiate discounts</li>
<li>assist in finding tenants</li>
</ul>
Jo Chivers is director of <a target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
</body></html>

Ladies laying foundations

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News