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<img src="https://counter.theconversation.edu.au/content/76310/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Chinese investors are often blamed for Australia’s escalating house prices but a number of factors might mean the demand will drop off in coming years.
A recently released report found investment in residential real estate by the Chinese is slowing. As the gap in rental yields between the two countries closes and house prices increase, Australian residential real estate is beginning to look less attractive. The lifting of restrictions on Chinese urban residential property ownership and personal investment monetary restrictions may also play a part.
China has 1,340 high net worth individuals and 568 billionaires. Their combined net worth is equivalent to Australia’s GDP.
Many Chinese investors have access to both legitimate and hidden income and wealth and seek to invest both in overseas real estate. This is at a time when China is in the grip of its own housing affordability crisis.
Why Australia has seemed attractive
In 2015, Chinese investors ploughed approximately A$6.8 billion into Australian commercial and residential real estate. Current Foreign Investment Review Board (FIRB) policies channel incoming real estate investment funding into new dwellings, creating additional jobs in construction and supporting economic growth.
Though temporary Australian residents may be required to sell older residential property when they leave Australia, many foreign nationals are able to retain, rent out, sell or live in newly constructed dwellings. This is a major draw card for Chinese investment in new residential buildings.
Other pull factors include Australia’s stable financial institutions, compared to China,, well regulated land title system, buoyant real estate market, high capital gains rates in major cities and lower deposit requirements.
Australia’s Foreign Investment Review Board (FIRB) may keep an eye on these factors when considering new foreign investment in the housing market, but it struggles to counteract the push effect of Chinese property law restrictions and investor needs.
Factors in China at play
Conditions in China’s economy and regulatory environment also push Chinese investors to focus on overseas markets. The depreciation of the Chinese currency is a significant force. As this currency is devalued, Chinese investors reconsider what and where they can afford to purchase.
Australia’s rental yields of 2-3% in major cities are twice that of China’s. Legislative changes to residential property investment in China also makes Australia look appealing.
China has a dual property ownership system that segregates rural and urban land ownership systems. Rural cooperatives own the rural land ownership rights. Cooperative members can only sell to other members of the same rural cooperative.
This limits competition for rural land and keeps rural land prices low. But it also means rural land is an unattractive investment choice for Chinese.
Urban land, on the other hand, remains state owned with a 70 year lease system to housing owners. The system limits ownership of urban residential buildings to people with urban registration or those that have lived in and paid taxes in the same urban area for five consecutive years. This situation stops many Chinese from being able to purchase urban residential property.
Between 2011 and 2015, those who did have the appropriate registration were limited to a maximum purchase of two residential properties within their urban area – one property to live in and one as an investment. This limitation still applies in Beijing.
The limitation was put in place to counteract major housing affordability discontent as an increasing number of people were locked out of the housing market. This problem is exacerbated by the 30% deposit requirement on residential real estate purchases. This combination of factors forces many Chinese investors into purchasing properties on China’s black market where ownership is uncertain or seek investment opportunities outside China.
The Chinese State Administration of Foreign Exchange introduced new regulations to tighten the flow of capital from China in November 2016. This agency is tasked with the approval of outgoing overseas payments of more than US$5 million. However, most housing acquisitions in Australia fall below this limit.
From 2017, a new rule was introduced to limit the yearly foreign currency holding to US$50,000 for individual investors..
Larger Chinese development companies operating in Australia are known to sell individual residential units “off the plan” directly to Chinese property investors. Where this is the case, the developer has a vested interest in finding ways to circumvent the new limits on foreign currency holding in order to settle a contract. However, it will take time for developers to adjust their methods.
As house prices increase, rental yields generally fall. This is due to the large amount borrowed by investors compared to what they receive in rental income.
Though rent prices have increased significantly in Melbourne and Sydney, they have not kept pace with house prices. Rental yields have fallen in major cities.
In China, where the rental yield is 1-1.5%, some investors reconsider whether it is worth the effort of renting out their properties. Instead, they rely on the capital gain to create a profit while leaving the property vacant, preventing wear and tear to it. This practice has serious implications for the supply of rental properties in China.
As Australia continues to struggle with escalating house prices and decreasing rental yields, residential real estate investment becomes less attractive as a long term investment for Chinese investors. The reliance on capital gains may result in higher numbers of vacant properties in Australia, counteracting the FIRB’s intentions.
The restrictions enacted by Chinese regulators may slow the flow of money out of China in the short term. However, Chinese investors are likely to find ways to circumvent these restrictions. The lifting of restrictions on Chinese residential property ownership may refocus investment choice location to within China.
Erika Altmann<a href="https://theconversation.com/profiles/erika-altmann-361218"> </a>is qualitative researcher, University of Tasmania and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/erika-altmann-361218">here</a>.
Zhixuan Yang is lecturer in Real Property Development and Management and author for The Conversation.
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jchancellor-FAypfDUnLy

Why Chinese investors find Australian real estate so alluring

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Brian Cotterill, who once helped restore the Queen's Buckingham Palace in London, has sold Highfield Manor, his majestic Coomba Bay home.
It was while he was chief at Contrad Construction in London that he undertook the restoration of Buckingham Palace in the early 1990s.
The scaffolding had to be removed every time Queen Elizabeth returned to the residence.
He also worked on King Henry VIII's Hampton Court Palace.
Brian and wife Jenny settled in the Great Lakes area in 1997, spending $165,000 on an 11 hectare parcel about 300 kilometres north of Sydney
They added the neighbouring 11 hectare parcel for $90,000 in 2001 and went about building Highfield Manor.
They built the colonial style home using local sandstone and hardwood timbers.
Comprising five bedrooms and five bathrooms, the home features a study, fitted library, air conditioned wine cellar and an infinity edge pool 
The home sits amid gardens, an orchard and over eight kilometres of walking trails.
It had a price guide of $1,695,000 having initially been listed at $1,795,000 with Mark Currie and Dominique Vasers at Pacific Palms Real Estate.
This article first appeared in the Sunday Telegraph.
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Buckingham Palace restorer sells Highfield Manor, Coomba Bay

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Seccull House, the modernised, acclaimed Guilford Bell designed home in Brighton has been sold by cardiologists Martin Hiscock and Silvana Marasco.
The couple were only the third owners of the home, having paid $5.75 million in 2013. It had $9 million price expectations through Abercromby's agent Jock Langley.
Seccull House was built in 1972 for William and Elaine Seccull, considered one of Bell's most important works.
The North Road home was renovated by Martin and Silvana with the help of Bell's younger business partner Graham Fisher.
Bell's iconic full-height, uninterrupted glazed windows allow the home to open to the outside.
The sales campaign, set around for a May 11 auction, featured a Slim Aarons-style photo shoot from Goldeneye Media.
This article first appeared in The Weekend Australian Mansion Australia section.
 
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Guilford Bell designed Seccull House, Brighton, sold

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<img src="https://counter.theconversation.edu.au/content/73853/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The global focus on US President Donald Trump has largely been on his inflammatory rhetoric and relative inexperience. A less substantive body of commentary has considered his policy platform, including his economic policies.
Among the most prominent of these policies is a commitment to:
… [r]efocus government spending on American infrastructure and away from the Obama-Clinton globalisation agenda.
Trump is not the first to identify increased infrastructure as a strategic economic imperative. Across the globe governments are turning to infrastructure as an instrument of economic policy.
Australia has since 2007 operated an infrastructure agency to prioritise and plan infrastructure provision at the national scale. The UK, New Zealand and Canada have also established national infrastructure planning agencies.
In Australia, this “infrastructure turn” has eclipsed metropolitan planning as a means of intervening in cities.
Among global political and economic institutions, infrastructure has risen to prominence as a priority for national intervention and trans-national co-operation. Many agencies have called for increased spending on infrastructure.
The World Economic Forum, for example, has lamented that while estimated global demand for infrastructure exceeds US$3.7 trillion in investment value, only US$2.7 trillion is being provided. This leaves a US$1 trillion “infrastructure gap”.
The APEC Forum in 2013 established a multi-year plan on infrastructure development and investment. The G20 has established the Global Infrastructure Hub and the Global Infrastructure Connectivity Alliance to help with infrastructure investment. The World Bank helped set up the Global Infrastructure Facility in 2015.
What is driving this shift?
The reasons for the new focus on infrastructure are debatable. Four explanations offer possible insight.
First, at a simple material level, the focus on infrastructure reflects rapid urbanisation at the global scale. Millions more urban residents need water, energy, transport and telecommunications. But urbanisation does not in itself demand infrastructure.
A more systemic explanation is the use of infrastructure as a “spatial fix” for the contradictions of urban capitalism. At its most basic level, the agglomeration of economic activity in cities creates resource and congestion problems, which impede economic growth.
Capitalist economies seek to “fix” these problems with infrastructure investment that overcomes spatial frictions on flows of people, water, waste, energy and information. Under conditions of increasing urban complexity, infrastructure megaprojects appear more comprehensible and immediate “solutions” to urban problems than previous fixes using metropolitan spatial planning.
A further explanation is that infrastructure is being used as a sink for excess low-cost capital within the global economy. Such capital is otherwise unable to find sufficient destinations for productive investment.
Under such conditions, capital “switches” from productive investment into investment in the built environment. Infrastructure is the major component of this.
Finally, sustained weakness in the global economy has reduced the attractiveness of productive investment as a source of profit in favour of rents. We can thus observe the systematic emergence of “infrastructure rents” in the global economy – rentiers capture monopolies on particular infrastructure types.
Of these four explanations, the first is the most commonly presented. Yet it has perhaps the weakest explanatory power.
Critiquing the global infrastructure push
For critical urban social scientists, the global infrastructure turn poses a number of conceptual and methodological issues.
The first question is to test whether it’s specifically different from other forms of urban investment.
Cities have long been sites of physical building, including major developments and facilities. Yet the practices of global infrastructure involve mobilising capital, governments, information and production at a massive new scale via major international institutions and may be viewed as a distinctive urban phenomenon.
A second question is to understand how infrastructure has become a discourse in global policy. Global agencies almost universally view infrastructure as a beneficial phenomenon to be promoted. How this began and has been promulgated deserves greater investigation.
A third question is how infrastructure has become a field of specialist knowledge in its own right. And what implications does this have for understanding the role of infrastructure?
Infrastructure projects have developed their own language of financial appraisal, technical design and social and environmental impact. This then hampers democratic scrutiny of these projects.
The democratic problem
Finally, the politics of infrastructure demand attention. Infrastructure is often a site of political contestation, yet many infrastructure decision-making processes attenuate or repress democratic participation. The role of the state is often placed in tension, especially when private motivations drive infrastructure development.
There is a lack of transparency of interests – in terms of who benefits, both legally and surreptitiously, and who is affected or disadvantaged by infrastructure development. This is a clear problem that deserves greater investigation.
Large infrastructure projects have long fascinated politicians, governments and publics. Trump demonstrates the persistence of this fascination. Many view the need for infrastructure as an inevitable consequence of an increasingly urban world.
Yet the global turn towards infrastructure needs to be critically appraised beyond the utopian engineering rhetoric. We need to understand its causes and motivations, especially within the structural crisis of global capitalism and the efforts to resolve it.
We must also be attentive to the problematic aspects of the global infrastructure turn. The deployment of trillions of dollars in infrastructure investment necessarily demands clear democratic transparency and accountability. This applies not only to the money spent but to the effects on cities, societies, polities and the environment.
<h2 class="caption"> </h2>
Jago Dodson is professor of Urban Policy and Director, Centre for Urban Research, RMIT University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jago-dodson-2359" target="_blank">here</a>.
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Making sense of the global infrastructure turn: Jago Dodson

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Frasers Property says it is a move that will be welcome relief to many first home buyers.
But halving the traditional 10 percent deposit required to secure a new home appears instead a rather risky, ill-timed offer for FHBs.
FHBs can buy into the red-hot Sydney market for just a 5 percent deposit - and be in hefty debt residence by September!
The offer is for two of its projects, Centrale in North Ryde (pictured above) and Tailor’s Walk in Botany at just 5 percent deposit. 
"We expect it will prove very popular,” Nigel Edgar, general manager – residential NSW, Frasers Property Australia says. 
The offer will run to June 30. 
To ensure it benefits local first home buyers, the reduced deposit is not open to foreign investors and applies to properties worth up to $900,000. 
No gimmick it appears, as Nigel Edgar avows the initiative was "a responsible way of helping eligible first home buyers to get a foot in the market." 
We all know saving for a traditional deposit is a tough process.
And many say a 10 percent deposit really isn't enough these days – and aiming for 20 percent is wise.
Especially this year as banks are more risk averse and less inclined to accept a borrower without a genuine savings track record.
But Edgar says he understands how hard it can be for young people to save the standard 10 percent deposit for their first home while paying rent and living costs.
Edgar says of course it’s imperative that people stay within their financial boundaries, "which is why a pre-approved loan from a reputable financial institution is one of the key terms and conditions of this initiative."
But will responsible banks really want to lend on 5 percent? And why now in the property cycle? 
Edgar says first home buyers have a wide variety of apartments to choose from at Centrale and Tailor’s Walk, with flexibility surrounding move-in dates.
"Some eligible first home buyers will have the option of moving into their brand new Tailor’s Walk home as early as September this year, or can secure an apartment to move into late 2018. 
“We have made the initiative available at Centrale and Tailor’s Walk because they have the widest variety of apartments priced to qualify for the $10,000 NSW First Home Owner Grant.
"It gives first home buyers the opportunity to stop paying rent and move into a new home soon or, alternatively, the choice to wait a bit longer and focus on saving,” Mr Edgar says. 
Centrale is a new community integrated with the North Ryde train station. Located one train stop from Chatswood and 13km from Sydney CBD, Centrale will comprise four residential buildings with 380 apartments in a mix of one, two and three bedroom configurations when complete. One-bedroom apartments are priced from $595,000 to $745,000, while two-bedroom, two-bathroom apartments with a car space range from $870,000 to $970,000. 
At Tailor’s Walk in Botany, one-bedroom apartments range from $600,000 to $745,000 while two-bedroom designs are priced from $775,000 to $990,000 – making the community a particularly appealing option for first home buyers. 
Spanning 3.1 hectares, Tailor’s Walk is a unique community creatively weaved into the increasingly popular Botany area. It will have five apartment buildings ranging from six to eight storeys, offering a diverse range of one, two and three-bedroom single level and loft style apartments.
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Frasers Property brazen move to get FHBs on 5 percent deposits

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<img src="https://counter.theconversation.edu.au/content/76505/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
There’s been quite a bit of speculation over whether Australia has a property market bubble - where house prices are over-inflated compared to a benchmark - and when it might burst.
According to housing experts, there’s at least four scenarios where this could happen.
Australia could see a property bubble burst due to:
<ul class="ul1">
<li class="li2">Lending tightening, interest rate hikes and mortgage stress</li>
<li class="li2">Underemployment and unemployment creating a slow deflation</li>
<li class="li2">Government intervention failure and market repair</li>
<li class="li2">Global crisis</li>
</ul>
These four scenarios focus on different tension points in Australia’s and the global economy. One scenario focuses on the balance of actions between regulators like APRA and the Reserve Bank, combined with household mortgage stress. Another envisions the affect that unemployment might have in certain areas.
Some of the factors we may see play out, such as the federal and state government trying to intervene to “fix” problems in the market, as happens in one scenario. But other factors may be out of the government’s control, for example, where a global crisis pushes up risk premiums.
All of these scenarios highlight just how complicated and interrelated the steps that lead to a property bubble burst could be.
Lending tightening, interest rate hikes and mortgage stress
Associate Professor Harry Scheule, UTS Business School
<a href="https://www.propertyobserver.com.au/images/2017/05/01/file-20170424-25594-sr2cd9.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-25594-sr2cd9.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Following concerns of the housing bubble, bank regulator APRA increases bank lending standards, it also increases the risk weight on Australian mortgages resulting in lower loan supply and higher loan costs. Banks are encouraged to reduce interest-only loans, hold a greater amount of costly capital (making home loans more expensive) and reduce the loan amounts offered to applicants due to higher future interest scenarios.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12655-nn7let.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Following increases in interest rates in the US and Europe, as those markets recover, the Australian dollar begins to decline – forcing the Reserve Bank of Australia (RBA) to increase interest rates.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12640-1lrrxft.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
Higher interest rates lead to higher monthly repayments, as most of Australia’s home loans are adjustable. Interest only loans are the most exposed. Higher interest rates also lead to more mortgage delinquencies.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170428-15097-i6a8cl.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
The banks tighten bank lending standards in response to the increase in delinquencies. This further constrains interest-only borrowers seeking to refinance after the end of the interest-only terms. This means more mortgage stress, as many had expected to roll over the interest-only period indefinitely, but now they are forced to make principal repayments next to interest payments.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12627-djg6hq.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The cycle between delinquencies and tightening bank lending standards continues and as a result there’s a noticeable drop in loan supply and a fall in house prices. 
Underemployment and unemployment create a slow deflation
Danika Wright, Lecturer in Finance, University of Sydney
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12658-14s147l.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Unemployment and underemployment - workers who want to work more but can’t - increase. As the apartment development boom dies down, and without a mining boom to replace it, construction industry workers are at high risk.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12629-1g17gp1.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Households with a lot of mortgage debt are forced to limit their spending, particularly on discretionary items. This in turn affects companies that employ retail workers, reducing hours and employment.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12645-1thbkt5.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Employment opportunities are a major component of house price amenity, in part because demand for housing is pushed higher by inbound work-related migration. So, as there are less jobs nearby, the amenity value of some areas decreases.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170428-15121-1a3mn50.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The amount of people at risk of defaulting on their mortgage increases in areas where there is a loss of employment or reduced income. In 2008, arguably the last time Sydney house prices went through a correction, the incidence of mortgage defaults and property price declines was geographically localised.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170428-15086-1qrzafm.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Borrowers who have the least amount of equity in their homes (typically the least wealthy, younger and newer entrants to housing market) are the hardest hit by falling property values. They are more likely to end up “underwater” – that is, owing more than the property is now worth – and face the prospect of a distressed sale. This in turn contributes to the downward spiral in house prices.
Australia has tighter lending criteria than regulators enforced before the global financial crisis in the United States. But concerns by regulators, including APRA, over current lending practices and potentially fraudulent activities raise questions over the real quality of mortgages and the ability of borrowers to repay them.
Government intervention failure and market repair
Professors of Economics, Jason Potts and Sinclair Davidson, RMIT
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-22270-1wxliec.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
A combination of low interest rates and low growth in new housing stock drive up Australian housing prices, a situation compounded by poor policy choices by state and federal governments and high demand from foreign residential property investors.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12658-1w2f933.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
As a result housing is misallocated in the Australian market, across demographic and especially age groups. This produces demographic pressures, as millennials delay leaving home, delay starting families. This leads to political pressure on governments – increases the urge to intervene.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12669-19vk1qg.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The federal government intervenes, blaming the secondary drivers (particularly the non-voting group: foreign investors). They increase restrictions on foreign investment in residential housing stock.
The federal government also lobbies APRA to increase rules on financial products, while promoting a scheme to subsidise and promote first home ownership.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-23807-i1c8wi.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Because none of these previous measures from the federal government affect the primary drivers of the misallocation of housing, domestic interest rates don’t change, and state governments do not act to release new stock. As a result housing prices continue to grow.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-27254-4qwo2z.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Increasingly alarmed that house prices continue to rise, the federal government starts to panic, threatening ever further regulation and starts to blame the financial system. This triggers the RBA to finally act, raising interest rates.
As interest rates rise, this causes mortgage stress, resulting in default among investors with high amounts of debt, pushing these properties onto the market. These distressed sales finally cause prices to fall.
Global crisis
Timo Henckel, Research Associate, Centre for Applied Macroeconomic Analysis, ANU
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12629-1juog2j.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
International crisis (whether it be political, military, economic) leads to an increase in global risk premiums.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12645-qj07.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Borrowing costs for Australian banks rise because of this and supply of global capital falls, pushing up mortgage rates in Australia.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12658-z8xdgo.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The most vulnerable mortgagees can no longer afford their mortgages and are forced to sell their homes.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12658-1fhdu2b.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
House prices fall which, coupled with rising interest rates, adds further distress to households’ balance sheets, leading to more selling of houses and so on.
Jenni Henderson is editor, Business and Economy, The Conversation and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here</a>.
Wes Mountain is<a href="https://theconversation.com/au/team#wes-mountain"> </a>deputy multimedia editor, The Conversation and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here.</a>
 
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Four ways an Australian housing bubble could burst

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Harvey Norman CEO Katie Page is set to kick off marketing her exciting new M3565 apartment project on the Gold Coast.
Recently completed, the seven apartment tower at 3565 Main Beach Parade was built and designed to achieve a 5 Star Green Star rating.
It's the first whole floor high-rise complex to be completed on the sandy stretch for almost three decades.
Prices start at $6.2 million through Ray White Prestige agent Robert Graham.
The two level penthouse is being tipped to set a record price for the popular strip set where $9.2 million was paid by Melbourne businessman Peter Devitt in 2011 for the penthouse in Main Beach’s Liberty Panorama tower.
Page paid $15.5 million in 2007 for the 882 sqm building block then battled council to secure her construction approvals. 
The typical full floor apartment comprises three bedrooms, four bathrooms and study in the 400 sqm space.
Pages 's intense focus was on meshing high end luxury with strong environmental credentials.
“We have been planning this building for a very long time," she said.
"It is the most beautiful, amazing block of land – it is the dream.
"To be able to wake up in the morning and be on the beach in an area that is so different to the rest of the Gold Coast is really quite an extraordinary experience.”
M3565 was designed by Sydney architect Virginia Kerridge, who says the extensive use of contemporary finishes such as tinted concrete, timber shutters and zinc ensured the building was deliberately different to anything previously seen on the Gold Coast.
The result according to Ms Page is a building that “fits in rather than stands out”.
“Virginia loves environmental architecture, which is the kind of design that understands finishes and how they should respond to their environment not just when they are completed but in twenty years time.”
Page reckons great buildings "improve with age.”
Main Beach is considered one of the plump locations on the Gold Coast, being a quieter and considerably more exclusive beachfront enclave with high end shopping and restaurants that has been a favourite getaway destination for well-heeled Sydneysiders and Melbournians for decades.
This article first appeared in the Sunday Telegraph. 
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Harvey Norman CEO Katie Page's Main Beach, Gold Coast development

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Tech billionaire Scott Farquhar spent $70 million plus on Friday night to to secure the three-storey Double Bay harbourfront mansion, Elaine.
The property has been on the market for three years. 
There were two local parties vying against overseas interests for the derelict residence before it sold, ending the three-year marketing campaign by Ken Jacobs of Christie’s International.
Farquhar, 37, who co-founded tech company Atlassian with Mike Cannon-Brookes in 2002, now sits atop of the BRW Young Rich List with a combined net worth of $4.6 billion.
The 6986 square metre estate on Seven Shillings Beach features seven bedrooms, five bathrooms and a tennis court.
“We’re thrilled with the purchase and honoured to take over the Elaine estate in its entirety from the Fairfax family,” Farquhar told Fairfax Media.
Vendor John B Fairfax said the sale was an “emotional day”.
“I sold a home that has been in the Fairfax family since 1891. I am delighted it is being purchased in one line by an Australian family,” he said.
It has been reported Fairfax sold at a "sentimental discount" as he wanted a family buyer not a developer buyer.
Scott Farquhar, the co-founder and co-CEO of the software company Atlasssian, has been one of the handful of Australian billionaires who have been looking to buy in the prestige market place over recent times. It will be home for the low key tech guy and his wife, Kim and their three boys.
His interest has been focussed on eastern suburbs offerings including Rona on Bellevue Hill - going close but never committing to the modernised Rustic Gothic Revival style abode that remains listed through Bart Doff at Laing &amp; Simmons Double Bay inconjunction with Ben Collier at The Agency. 
The sale of Elaine bettered the previous $70 million house record set in 2015 when Jacobs sold the Vaucluse mansion, La Mer on behalf of James and Erica Packer to Chinese-Australian businessman Chau Chak Wing.
Built in 1863, Elaine has been home to the Fairfax media dynasty since Geoffrey Evan Fairfax bought it in 1891 for £2100, though no one in the family had lived in two decades. 
It has been leased since 1996, first to socialite Elizabeth de Fox and her then medico husband David, followed by the boutique property developers Bob Rose and his wife Margaret, then venture capitalist Cameron O'Reilly, and then the joint chief investment officer of Caledonia Investments, Mark Nelson, and his wife, Louise.
Farquhar's has limited property holdings - a Pyrmont apartment in his name - unlike his tech billionaire business partner Michael Cannon-Brookes and wife Annie who love their property.
The Cannon-Brookes couple own a $12 million Centennial Park Californian bungalow home currently getting a makeover given the family's need for more bedrooms, so they have just spent a stopgap $7.05 million on the Double Bay trophy home SeaDragon, the 1936 Professor Leslie Wilkinson designed Mediterranean style villa while they await the renovations.
They also own a Southern Highland retreat and a Palm Beach weekender.
This article first appeared in the Daily Telegraph.
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Double Bay harbourfront Elaine sold for $70 million plus

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GUEST OBSERVER
This month’s Q1 2017 CPI inflation numbers provided additional support for our long held view that the RBA is unlikely to cut its cash rate further.
Underlying inflation, as measured by the average of the trimmed mean and weighted median, lifted to 1.8% y-o-y in Q1, which is up from its low point of 1.5% in Q3 and Q4 2016. Domestically produced, non-tradable inflation has also continued to pick up pace, rising by 2.6% y- o-y, up from 1.6% in Q2 2016. Although underlying inflation remains below the bottom edge of the RBA’s 2-3% target band, it does appear to be past its trough.
The RBA also has a high hurdle for considering further cash rate cuts, as it is more concerned about the Sydney and Melbourne housing price boom than low inflation expectations becoming embedded. RBA Governor, Phil Lowe, has stated that it would not be in the ‘public interest’ to cut the cash rate further, even if it got inflation back to target sooner, if it boosted housing prices and debt. In response to this concern, the prudential regulator has tightened its settings further in recent weeks.
If there are no cuts expected, the key question becomes: when will the RBA consider lifting its cash rate? On this, the Q1 CPI numbers also suggest that rate rises are not likely any time soon. Although inflation is rising, the pick-up has been gradual and inflation remains low. In our view, the timing of the next hike in the cash rate largely depends on the outlook for wages growth. Our central case sees the unemployment rate gradually falling in coming quarters and wages growth lifting in H2 2017, helped along by the boost to national incomes from the recent rise in commodity prices. We see the RBA lifting its cash rate in Q1 2018.
Given that we expect only gradual cash rate rises, that Australia’s household debt is high and recent prudential tightening is underway, our new onshore AU/NZ Rates/FX strategist, Tom Nash, is favouring curve flattening. We also see some modest near- term downside to the AUD to US72 cents, albeit back to US75 cents by end-2017. 
<a href="https://www.propertyobserver.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.07.17%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.07.17%20PM.png" alt="">
CPI inflation picked up in Q1 and is back in the RBA’s 2-3% target band for the first time in nine quarters (Chart 1). More importantly, for the policy rate outlook, the underlying measures of inflation have edged higher and appear to be past the trough. The average of the RBA’s two preferred measures of underlying inflation – the trimmed mean and weighted median – lifted to 1.8% y-o-y in Q1, up from a recent low point of 1.5% in Q3 and Q4 2016. The momentum in inflation also appears to be more than just due to temporary factors, such as rising oil prices or the effect of previous falls in the AUD, with domestically produced, non-tradables inflation continuing to trend higher (Chart 2).
The lift in inflation supports the case that the RBA is unlikely to cut further. However, with inflation remaining low, we think the CPI numbers, on their own, provide little motivation for the RBA to consider lifting the cash rate any time soon.
Business conditions and confidence are lifting
For the RBA to be convinced to lift its cash rate, the central bank is expected to need further evidence that underlying inflation is headed back to target. In our view, a key factor is the outlook for wages growth. Wages growth has been running at its slowest rate in multiple decades, which has been putting downward pressure on domestic inflation (Chart 3). Although there are some signs that wages growth is stabilising, as yet there is little evidence of a pick-up.
<a href="https://www.propertyobserver.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.09.38%20PM.png" target="_blank"> Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.09.38%20PM.png" alt="">
Surveyed business conditions imply growth should pick-up 
However, there are clear signs that business conditions have been improving recently. The NAB survey of business conditions rose in Q1 2017 and implies solid economic growth (Chart 4). This should, in turn, motivate increased hiring and some tightening of the labour market. This could deliver upward pressure on wages growth over time. The key driver of the improvement in business conditions has been a sharp lift in conditions in the mining industry, as higher commodity prices have boosted profitability (Chart 5).
<a href="https://www.propertyobserver.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.10.29%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.10.29%20PM.png" alt="">
As we have argued previously, we expect that some part of the lift in commodity prices will feed through to domestic wages, much as it has done in the past (see Downunder Digest: Show me the money, 20 April 2017). Historically, there is a strong positive correlation between unit labour costs (productivity-adjusted wages growth) and the terms of trade in Australia (Chart 6). Although we do not expect this relationship to be as strong as in the past, when the rise in commodity prices had motivated mining investment booms, we do expect it to feed through to a modest lift in wages growth in H2 2017.
Prudential settings have been tightened to cool housing
Concerns about the leverage-fuelled house price booms in Sydney and Melbourne have led the RBA’s Governor, Phil Lowe, to repeatedly note that it would not be in the ‘public interest’ to cut the cash rate again if it drove a further rise in housing prices and debt.
The Australian financial authorities backed this rhetoric with action by further tightening the prudential settings in the past few weeks. This included: reinforcing that banks should not grow their investor lending any faster than 10% a year; requiring that interest-only loans are no more than 
30% of new lending (down from a current run rate of 40%); and that banks maintain appropriate loan serviceability tests in the face of heightened risks, amongst other measures. Tighter prudential settings had already seen effective rates for housing investors rise by 25bp in March.
<a href="https://www.propertyobserver.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.11.22%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.11.22%20PM.png" alt="">
There is some evidence that the tighter prudential settings are cooling the housing market, with the daily measures of Sydney and Melbourne house prices levelling out in April (Chart 7). However, it is worth noting that April is also typically a seasonally weak month for the housing market. Nonetheless, the tighter prudential settings and increased rates for investors are expected to see investor loan approvals pull back from their recent high levels in coming months (Chart 8).
However, it is worth keeping in mind that the international and local experience suggests that prudential tightening typically only has a short-lived cooling effect on housing markets, before fundamental factors, such as housing supply and demand and interest rates reassert themselves. The RBA will be aware of this evidence. On the margin, we see the exuberant housing market as likely to make the RBA a bit more hawkish on its cash rate settings, albeit only to the extent that its policy rate setting is still consistent with the outlook for inflation. The outlook for wages growth remains the focus.
<a href="https://www.propertyobserver.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.12.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.12.11%20PM.png" alt="">
RBA tactics and forecasts
We expect the RBA to remain firmly on hold at its May meeting (2 May) and to give no suggestions that it would consider cutting further. At the same time, we do not expect any discussion about possible rate rises either. In its official statement, due to be published on 5 May, we expect the GDP and underlying inflation forecasts to be unchanged from the February 2017 statement (Charts 9 and 10). HSBC’s growth and inflation forecasts are slightly stronger than the RBA’s last published set of numbers.
Fixed Income and FX Strategy
AUD Rates: Front-end floored but lacking catalysts
This macroeconomic back-drop and RBA stance should place an implicit floor on money market rates. We think current OIS and cash rate future pricing is close to this floor – the market implies 0-5bp of cumulative cuts over the next six to nine months – skewing risk-reward towards paying/ steepening structures in the very front-end. However, such strategies should be tactical given the lack of near-term catalysts to re-price the RBA.
Beyond the RBA dates, yield pick-up is more attractive in forward starting swaps beyond one year but even then risk premium is still notably lower than in mid-March (Chart 11) and we see New Zealand as a better candidate for front-end receivers given the similar macro back-drop but considerably better roll-down profile.
<a href="https://www.propertyobserver.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.13.31%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/28/Screen%20Shot%202017-04-28%20at%202.13.31%20PM.png" alt="">
More broadly, while the HSBC fixed income team also subscribes to the view that the next move in the cash rate is more likely to be a hike than a cut, investors should position against curve pricing that reflects an aggressive hiking cycle given a range of domestic structural factors that should constrain long-end rates (see AUD Rates: Cheap enough, 30 March 2017). We see ample room for the curve to flatten, given the swap curve is still 70bp steeper than 2016 lows between two and 10 years.
AUD-USD: prone to disappointment
The AUD’s buoyancy so far this year contrasts with interest rate differentials that have continued to grind lower (Chart 12). This disconnect between FX and rates could be observed in the aftermath of the April RBA meeting when the cash rate was left unchanged but AUD-USD immediately fell 0.5%. This occurred despite the RBA doing exactly as expected, with little ‘new news’ in the accompanying statement. In contrast, market interest rates, which already imply a broadly neutral path for the cash rate over the next 12 months, were largely unchanged.
The RBA’s lack of commentary that explicitly confirms reflationary themes, when compared to more hawkish commentary elsewhere, has put downward pressure on the AUD. With our economics team not expecting any changes to the RBA’s forecasts or rhetorical tone, we think the AUD-USD is likely still prone to disappointment. We forecast AUD-USD at 0.72 by end-Q2, before recovering to 0.75 by year-end. 
 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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RBA's next move likely to be up but not for some time yet: HSBC's Paul Bloxham

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Two loft-style apartments in Sydney's Millers Point have been listed for sale by Property NSW on behalf of Family and Community Services.
The two bedroom split level units, 48 Gloucester Street and 48A Gloucester Street are heritage-listed and available through McGrath Estate Agents and set for May 24 auction. 
Proceeds from the sale will be reinvested in social housing across New South Wales.
Millers Point sales have netted over $390 million to fund new social housing dwellings.
McGrath Edgecliff agent, Lorraine Crawford, <a href="/news/more-millers-point-property-sold-by-nsw-government-including-hit-miss-hotel-premises">said the Millers Point market</a> "continues to show strength."
For more details please visit <a href="https://gloucesterst.com.au/" target="_blank">www.gloucesterst.com.au</a>.
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Two loft-style heritage apartments in Sydney's Millers Point listed

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

Joel Robinson

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

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

[smartcode_project_cta:default project_id=4896]

Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

Jonathan Chancellor

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