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As I finalise the Project Analysis on one of our last development projects for 2016, I've realised we've broken our equity creation record for a dual occupancy project.
We've manufactured just under $200,000 in equity within a year which represents an 18% return on investment (ROI). 
This wonderful client is now onto his third project with Property Bloom and so I'm very happy we've been able to deliver this amazing result for him, it's a fabulous Christmas present for our client but also for us. 
This was one of those projects where financially, things just went right. We started with a build estimate and with every update of our builder's tender the project costs dropped. We ended up with an actual construction cost of just under $40,000 less than we'd originally estimated. This includes Torrens title subdivision costs so that our client ends up with two x three bedroom dwellings each on their own title. 
We secured the development site in Newcastle in an estate that ticked all our  'great location' boxes. It has a high proportion of owner occupiers, strong sales and rental demand, community facilities including primary and high school, sporting fields, bike paths, picnic areas, children's parks and close to the local shopping centre and on the bus route. The location also allows quick drive time into the CBD and onto the major arterial roads.
We were able to prepare plans and other documentation required for the Development Application (DA) quickly and have it lodged with Newcastle City Council even before our client settled on the land. This saved on holding costs. However, the DA processing time was disappointing. It took 16 weeks, although I have to add this included Christmas, so you could say 14 weeks. Still, this is a long time. Our best DA processing time with the same council is two weeks. It all comes down to the town planner we are allocated and how efficient they are.  
The construction time was five months from the site cut date to Handover of a full turnkey product. Again, we've done better but I was happy with this result considering there is a shortage of building trades right now in the Hunter. 
Of course there was a few unexpected hiccups, like two windows that needed to be replaced after the internal linings were finished, we realised they were not centered in the area we wanted them to be. Our builder quickly had them replaced. But this didn't delay the project, just added some extra work for the builder. 
Our client will enjoy strong depreciation benefits from his new properties and a 6.5% gross yield. 
As we move closer to closing the door on 2015, it's nice to finish the year on a high. We'll be back for more fun and games in 2016. I hope you've enjoyed our stories this year, wishing all our readers and the wonderful people at Property Observer  a safe, relaxing and happy Christmas.  May 2016 bring you much joy and happiness, and a maybe a shiny new property development!
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Finishing the year with a bang: Jo Chivers

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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 contract. 
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) plans – enough information is included on the plans to satisfy  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 council have 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 their 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 they 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. Our clients often enjoy credits on their provisional items as it’s always best to over allow than under.
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.  At Property Bloom we are happy to say that for many of our projects the end construction cost is lower than our original estimates. This is because our builder uses accurate allowances and because we’ve worked together for so long, we all understand what the cost is likely to be based on the typical, lower risk development sites we select for our clients.
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 chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Why construction costs evolve: Jo Chivers

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This week I sat around a table with a group of very important people.  What made them so important? 
Well, with input from these particular people we could make a massive difference in the result of this property development.
We were meeting to brainstorm the best way to plan, design and build six villas on a 2000sqm block of land that I had sourced for my client.
The land we’d sourced is located in the Lower Hunter Region. The main economic driver for this suburb was a fairly recently opened expressway that now connected it with Newcastle and other major metro areas where employment opportunities lay. The city in which we will build has been awarded the accolade of the fastest growing inland town in NSW.
Ok back to the meeting.  The most important person there was our client, let’s just call him Jim. Whilst obviously important to me, he should be congratulated for taking on what is a very exciting property development. Jim has vision and can see the potential that I do in this project. Jim has a clear strategy; to create wealth through developing property as quickly as he can. 
He understands he has a set number of years before he retires and he doesn’t want to muck around. This is Jim’s second development with Property Bloom so he is well on his way. If all goes to plan (which is what the meeting was about) Jim will come out with a very handsome amount of equity that will be created through the development process. He could use this to pay down any personal debt and continue to build his property portfolio.
Also at the meeting was our town planning consultant. This man has invaluable experience working with the local council and gave us a clear strategy on how to tackle the Development Application (DA). This was not straight forward as we need to consider the lending criteria and stage the DA in the correct way so it can be financed. 
Next to him was our architect. When I met him, I was impressed to find out he used to be a carpenter.  This meant he had actually worked on a building site! 
This is a rare find, so I immediately thought he was pretty important.
Our builder has been in the game for over 20 years and bought along his construction manager who is very experienced and managers all the builder’s projects. I thought this was a great initiative as this guy is going to be directly overseeing our build, so what a great idea to include him at the design stage.  I’m sure he’ll take more ownership having been involved at this early level.
Also in attendance was the builder’s senior estimator who is the man who prices every aspect of the project, every square and lineal meter of it...so very important to have him there as he could tells us the areas where the big costs lay.
The final person was one of my project managers who had managed many projects not just for Property Bloom but for other builders so he has a strong understanding of the way builders work and also in the planning phases. 
I had called the meeting as we had just received a price back from the builder on our initial concept plan and we wanted to see how we could bring down the costs to increase the profit.
The architect, construction manager and the estimator started bouncing off each other on the engineering of the two double story villas, was there a way to decrease the metal beams required? 
Did we need double story? Yes.  
We were happy with the floor plan design of the villas, so our focus switched to the site levels and the extent of the retaining required. There was some fall on the land which meant the development would be stepped. It wasn’t long before an agreement was made to minimise the height of the walls so that they didn’t need to be engineered instead by clever slab design and site preparation.
We talked about the best and most cost effective way to subdivide the villas with the planning consultant and then discussed maximising the street appeal and front façades of the villas.
The table was buzzing and I found myself quietly reflecting on how lucky I was to do this for a job. I loved the interaction between my team and pondered on the value of the accumulated expertise of the people I had on my side. 
We left the meeting on the final note of an amount that we’d be happy to wipe off the costs; the architect would proceed with more detailed plans and work with the estimator to ensure he had the details to deliver the next round of costings.  The solutions that were found in that one hour meeting are very exciting. 
Every property development needs a good team. So don’t try and tackle it all on your own. As Oprah says, you can be lifted higher by others, so get yourself a group of experts that you can rely on and enjoy the process.
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a><a href="https://www.propertybloom.com.au/">.</a>
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Use the property development experience of others: Jo Chivers

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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>
<li>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.</li>
</ul>
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>
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 town planning consultant or development project manager.
Jo Chivers is the director of Property Bloom.
 
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Planning your property permits

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This story is dedicated to my very best friend Tracey.
She is a real fighter and I think what she has proven recently can be applicable to us all. Today's message is: When you want something badly enough, you fight for it.
Trace and I go back a long time, we met in our early 20's playing sport and we went on to buy property together under a joint venture agreement, but mostly we've just hung out and had lots of fun times.
She's recently had to fight hard to win a battle with a large government agency. You see she missed out on a promotion after spending about a year preparing for it.
There was a dispute in her application that led to her just missing out by only one placement. This had massive implications on her career path, not to mention her emotions.
She didn't miss out because she wasn't good enough. She was aware of a discrepancy that meant that she actually should have been accepted but due to certain circumstances I can't talk about, she didn't make it.
She could have gone one of either two ways.
She could have accepted 'fate', moved on and forgotten about her dream of making it to this level.
Or, she could be very brave, speak up and expose the person and agency for the error that had occurred and fight for what she knew she deserved. This was not the easier option.
I'm proud to say Tracey took the second option. She spend a crazy amount of time researching the applicable Acts and becoming very familiar with her rights.
After her initial complaint fell on deaf ears, she engaged the best solicitor she could find who specialised in this area. She worked with him to ensure that the correspondence sent out truly represented her and what was in her heart.
It wasn't too long before the agency virtually admitted guilt (in a roundabout way) and she received a personal phone call from the 'big guy'. He offered her a chance at the role she was so focussed on achieving. She still has a lot of work ahead of her before she can be awarded this role.
All she wanted was an equal chance, one she had fairly won but was not given.
I have no doubt in my mind that she will not only achieve accreditation but exceed all expectations because she is determined.
My friend has drive. She is focussed on what she wants and she will get it. I know she will.
I can't help use Tracey's story as inspiration. I think to achieve our goals, there is nothing better than having a very focussed mind, a firm understanding of why we want to get there and  then, if we can add in a sprinkling of emotional energy we have a very powerful force.
So what is it that you are trying to achieve and do you want it badly enough? What are the emotions behind your goal? Is it to set up your financial future so you can spend more time with loved ones? Is it to know that the people you love will have enough? Is it to retire early and have more fun?
Many people I speak to want property investing to be their financial saviour.  It can be, but what you need to bring to the table is focus, determination and a strong passion to stay on track and drive your investment strategy.  If you want it badly enough, are focussed and have done your homework, you can achieve anything.
<a href="https://www.propertybloom.com.au" target="_blank"> www.propertybloom.com.au</a>
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Drive and determination can equal great achievement

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This week whilst finalising some new floor plans for our clients, I started to wonder what we could add to give them a new twist on modern living.  I asked, "do we really need the formal dining area or separate lounge room anymore and what could we replace them with?"  
One of the newer additions to the home is the theatre room which is a space dedicated to watching movies… but could there be other needs we can meet with a specific room?
There's one that comes to mind immediately... the day spa room!  I would love a space that mimicked a day spa, a kind of extension I guess of a luxury bathroom but with a space off it to lounge around and read whilst your face mask weaved it's magic. With speakers filtering new age music filled the air, wafts of calming lavender oil burned and locks on the door to keep the kids out!
What used to be known as a library may now be called a Technology Room, I envisage it as an irregular shaped room with beanbags on the floor or hammocks swung from the roof, where you lounge around, surfing the net or playing the latest online games but still with a cosy reading nook to escape inside a good novel whether it be read from a book or tablet. 
One of the more cooler ideas that my boys came up with was a skate room to hang in. A bedroom with curved walls or a half pipe to go full Caballerial on (you may need to Google this if you don't have young sons).
Outdoor kitchens have been popular and you can extend this to include a backyard cinema with courtyards with fire pits and built in bench seating.  
Of course there is the original Man Cave that has typically been the old shed or garage but the modern man is looking for far more these days and his cave may include a full gym, full cellar or full on recording studio.
Don't forget the She Shed, an area where a female can make a little sanctuary for herself. perhaps a little outdoor shed converted into a luxurious, chandelier hung hideaway.  A space where the outdoors blended with the indoor space with a comfortable lounge, lots of cushions, throws, plants and candles. 
Perhaps an economical addition to the home is a twist on the traditional guest room. These days, you can make a killing by renting out a room in your house on Airbnb or Stayz or to overseas students. So make the guest room a little more appealing and self sufficient by adding items like a bar fridge they can keep fresh snacks and drinks, a small desk they can set up their laptop/tablet and work at including a little sign with your WiFi password so it's easy to find. 
All these ideas led to one extra inclusion in our floor plan and that was a home office. It has now become a feature of all Property Bloom developments as we all need a space to work or study from in the home and so we now have our kitchen supplier design and install a built in desk with storage and shelving and tenants are loving it. 
Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Thinking outside the Square: Jo Chivers

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What a hoo-ha we experienced this week with Treasurer Hockey's comments when he dismissed suggestions that property in Sydney was unaffordable when he went on to say "If you've got a good job and it pays good money and you have security in relation to that job, then you can go to the bank and you can borrow money and that's readily affordable."
and "...if housing were unaffordable in Sydney, no one would be buying it," he said.
You know, it got me thinking back to 2003/4 when something similar was going on.  We copped the same media frenzy about the overheated Sydney market and that the boom would crash soon etc.
Then like now, when property becomes too expensive, usually in the cities, investors start to look for more affordable areas.
I was in the market investing in the early 2000's and that is exactly what I did. After settling four negatively geared Sydney properties, I realised there was no point to continue to buy such expensive property after all the capital growth had been realised as the market was peaking and back then the rental market was not as strong as it is now. I needed to find more cash flow positive property. Property that I could add value to and big blocks we could build multiple dwellings on so I could keep buying more. 
That’s when I discovered the Lower Hunter Region of NSW.
There are some people that think regional areas do not experience good capital growth. I track the quarterly median price in three of the regional cities Property Bloom develops in and my graph looks very healthy. There are no extreme spikes but healthy long term growth. Rental yields are around 7% gross on most of our completed developments and with cash so cheap right now, this is sure to present a good return in anyone's book. Also, the depreciation benefits on new property is a nice bonus.
Property Bloom has found a prime location that is currently experiencing good growth and high demand for the housing we are building for our clients. So forget about what some of our politicians are saying and get stuck into some solid research on regional cities and I bet you'll be pleasantly surprised.
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 Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Copping the media frenzy: Jo Chivers

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We're at the pointy end of a development and I'm in the middle of coordinating the last three weeks so everything falls into place efficiently. Our job as project managers is to save our clients time and money and sometimes a development can really drag out at the end of construction.
I thought I'd share all the things that need to happen as a Property Bloom project nears completion and why it's so importance to manage this carefully. 
We have a dual occupancy project that is three weeks out from completion. I can say three weeks confidently as I've worked back from the date of Handover to right now and listed everything that needs to happen. 
We define completion not by the construction work finishing, but by the dwellings being tenanted and earning income for our clients. It's one of the most important stages because our clients have been paying the builder's draw downs through the development and now it's time for them to reap the financial rewards. 
Our process aims for a zero vacancy period and we do this by using something that is intangible yet very valuable. Strong relationships. 
So in these last few weeks we need to micro manage the builder, our client and their bank, a valuer, our property management agency, our private certifier, a landscaper, the estate guidelines manager and our quantity surveyor. 
The first step towards the end is to conduct the Practical Completion (PC) inspection  as soon as we can, but not too soon that the builder is not ready. This is when we'll walk through the villas and compile a list of items that still need finishing off. These may include paint touch ups, cleaning, any damage to exteriors (I always check the gutters and fascias closely as sometimes they harbour dents), chips in anything, landscaping, fencing, blinds, carpet and built in robes, shower screens all installed, sliding door and window tracks cleaned of all dirt (my pet hate is dirt left in tracks!) and I make sure everything works right down to a strong flush to the toilets. 
The builder has a week to address the items on the PC inspection list and then we'll come back and reinspect. In the meantime, we need our client to send the final builder's invoice to their bank for payment. Before releasing the final funds, the bank will send their valuer to check works have been completed. We must ensure the valuer is booked in quickly and has no problems with access otherwise the final payment can be held up.  When the money is released to the builder, keys can be handed to tenants. So no keys, means no tenants, means no income. 
At the same time we ensure that the Private Certifier conducts their final inspection. Once they have done this and have all related documentation,  the Occupation Certificate (OC) will be released.  No OC, means no tenant, means no income.
We've cut a deal with an agency who is going to lease the villas (whether a tenant has actually moved in or not) from the day the OC is received. So it's important we get this as quickly as possible but all Conditions of the DA must be met before the Certifier will release the OC. 
We are also coordinating with an external landscaper who is responsible for the front landscaping and it must meet stringent estate guidelines.  This work has to be completed before the OC can be issued.
We brief our Quantity Surveyor to prepare Depreciation Schedules for our client to use at tax time as soon as we've received the builder's final invoice as this completes the actual build costs. However, the Depreciation Schedules cannot be completed until we have a Handover date. Handover is officially when the builder has received the final payment into their account and keys are released. 
We need to ensure our builder has completed all works in time and there is a good measure of trust as the builder allows our management agency on site to show the villas to prospective tenants before Handover has occurred. Our client also trusts us to ensure the builder gets everything finished after they've submitted the builders final invoice to the bank. 
Communication through this period is key. We talk a lot to our client, their bank and the contractors to ensure everyone completes their tasks when they should - all it takes is for one not to and it can hold up the entire process. 
So in exactly three weeks time this dual occ project will be completely finished, our client will be happy with tenants in place, our builder will be happy they've been paid quickly and we'll be happy that it all came together nicely. 
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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What happens in the last three weeks of a development? Jo Chivers

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This week, I came across a couple of quotes that really resonated with me. They were both around giving. 
It's funny but developing property in a way can be very 'taking'. What I mean by this is that you are always trying to get something more like a better deal or cheaper cost, a faster timeframe or a better sale price or rent.
But I've found over the years, if you give first then it becomes a far more enjoyable journey.
The first quote is from Robert Kiyosaki, the famous author of Rich Dad, Poor Dad. I read this book 15 years ago and it changed my life.
"Teach and you shall receive."
I think he's used a twist on a well known biblical quote 'Ask and you shall receive'. Maybe he was thinking along the lines of teaching so they didn't have to ask?  
Teaching someone is giving them the gift of your knowledge and experience and it's one of the many tips that Kiyosaki shares throughout the book. His words are eloquent concerning this idea: “There are powers in this world that are much smarter than we are. You can get there on your own, but it’s easier with the help of the powers that be. All you need to be is generous with what you have, and the powers will be generous with you.”
I call these "powers that be" the Universe and for me it is a powerful thing.
The other quote I liked is from Mike Dooley, author and entrepreneur - "Every time you give, whether it's your time, your compassion or your financial abundance, you're saying 'I am provided for'."
He's talking about leveraging the Universe and he says giving is powerful because it's a physical act that can demonstrate you know you're ok and that you have enough and it's this sentiment or perhaps energy that manifests for you.
Giving is such a simple thing we can all include in our everyday lives. It can be the smallest gift of a compliment that may make someone's moment a bit brighter.
Relating this back to property development, I do try to incorporate giving into our business. We hope what we give to our clients - time, knowledge and experience meets a number of their needs and helps them move towards financial freedom. Our clients pay us for our service but it's the extra thing - education - that we incorporate into this service in the hope they'll be able to use it sometime in the future.
I also hope by writing each week that I'm sharing something with those who read my stories. When I sit down and wonder what I'm going to write about today, I always try and make it come from my heart as well as my head and hope the information may help someone with what they are trying to achieve. 
 
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Teach and you shall give: Jo Chivers

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Last week's article generated a lot of interest and several phone calls. It was about comparing the numbers on a larger development with a dual occupancy project. The main take out from the people I spoke to was that whilst it would be nice to be able to fund an eleven unit project, the reality is that a two unit project is much more achievable.
One call came from Ian who lives in Sydney. Ian explained his frustration at trying to buy land to build a duplex on in an outer suburb of Sydney. He told me that at one land release he'd been to, a bus load of people (who he described as 'foreigners') arrived and camped out to secure land to bank.  Land banking is the practice of holding land for future use or sale. It's usually done be land developers who may buy Greenfield sites and wait for rezoning or hold larger parcels of land to develop later. 
I found his story amazing and it only confirmed that the Sydney market is crazy (like we didn't know that already!). I don't think it's fair that this kind of thing is going on. Ian asked about the typical cost of a dual occupancy project in the Newcastle area, where we are currently developing. There was a long pause on the phone after I told him it was around the $740,000 mark. That cost includes the land and construction of two, three bedroom, two bathroom single story villas including a Torrens title subdivision.  
"Ian, are you still there?" I thought the connection had dropped out. He said, "Yeah I'm still here, did you just say $740,000?". I confirmed that and he went onto tell me about a TWO bedroom apartment he'd looked at purchasing as brand new in Ryde in Sydney's north west priced at $915,000.  Now it was my turn to be silent. Wow. that is a lot of money for a two bedder.
Let's compare value for money here. On one hand we have two x three bedroom properties on separate Torrens title and on the other hand we have one x two bedroom apartment on a strata title. 
The rent on the new two bedroom apartment in Ryde may be around  $600 per week. That's a gross yield of 3.4%.  The combined rent on the two x 3 three bedroom villas will be around $900 per week. That's a gross yield of 6.3%.  
The depreciation benefits on the Ryde apartment may be around $15,000 in year one using the Diminishing Method and the two villas in Newcastle will achieve around $22,000. 
The Ryde investment will be negatively geared and the Newcastle investment should be cash-flow positive. This will depend on the owners taxable income. 
Capital growth rates over the past three years are similar with Ryde at 20.2% and Newcastle at 23.2%. source RP Data.
But there is one very important difference between these two investments which makes one much more sense than the other. 
Equity. 
By building two dwellings and subdividing, we are creating a big chunk of equity through the development process. This is called the 'developer's margin'. This gives you a nice buffer that can stay in the project or can be drawn out after refinancing to use to continue on your investment journey. 
Which investment would you choose?  
 Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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One big benefit in developing over a buy and hold strategy: Jo Chivers

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

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<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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Jo Chivers

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