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GUEST OBSERVER
The current debate about housing muddles two separate issues: the affordability of housing, and the risk in the banking system of any significant fall in house prices. Clearly, they are both important issues and the link between them is the potential for a lot of home owners to overreach in their finances, to not be able to repay their loans, and so to bring down their banks.
When you look at the data (in three charts) on mortgage stress, the systemic risk of people not being able to repay their home loans appears small. Data from the Australian Prudential Regulation Authority (APRA) reveals the average balance on housing loans has barely trended upwards over the last five years (see our first chart below).
This was during a period when house prices have risen quite strongly. In effect, this means that, on average, people have more equity in their houses to stand behind their borrowings.
This is not just true for the average but also if you look at investor loans or for low documentation (loc-doc) loans (these are aimed at those who cannot provide the usual required paperwork, for example self-employed people). The same trends emerge. It’s not clear from this that people are taking on excessive risk – and certainly not recently.
<a href="https://www.propertyobserver.com.au/images/2017/04/10/v1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/10/v1.jpg" width="600" height="432">
Source: ABS6416.0 and APRA Quarterly ADI Property Exposures
Even for new loans you get the same basic picture. The chart below shows the loan to valuation ratios for new loans. What is clear is that for most new loans people are borrowing between 60% and 80% of the value of their houses.
The proportion of people who have very high exposure to a fall in house prices – those with loan to valuation ratios above 90% – has been declining over time. Once again, the basic picture is one of prudent households, rather than a community of people gambling on house price rises.
<a href="https://www.propertyobserver.com.au/images/2017/04/10/v2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/10/v2.jpg" width="600" height="432">
Source: APRA Quarterly ADI Property Exposures
A lot of the confusion about housing arises because people make inappropriate comparisons. One common mistake is to compare the amount of housing debt with national income. This is highly misleading.
A more correct comparison is between your income and the amount of your income needed to service your loan. At a national level, this means we should look at the size of national income and the amount of income needed to service the debt (not the amount of debt).
An alternative that the Reserve Bank uses is to compare the amount of debt people have with the amount of assets they hold. As we can see in the chart below, the value of household liabilities has been increasing but the total value of assets held by households appears to have been rising faster. Again, there is no clear case that the household sector has borrowed excessively.
<a href="https://www.propertyobserver.com.au/images/2017/04/10/v3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/10/v3.jpg" width="600" height="432">
Source: Reserve Bank of Australia
None of this is to deny that house prices can fall, or that some people are finding it very hard to buy somewhere to live in Sydney. Houses are much cheaper in other parts of Australia and property prices have even been falling recently in some regions.
Rodney Maddock is a Vice Chancellor's Fellow at Victoria University and Adjunct Professor of Economics, Monash University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/rodney-maddock-107543" target="_blank">here</a>.
 
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jchancellor-FAypfDUnLy

Mortgage stress isn't as bad as you might think: Rodney Maddock

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GUEST OBSERVER
It is ironic that at a time when so many young Australians are finding it so hard to break into the property market, commentators are finding it so hard to break out of discussing it.
This week we saw three notable pieces of information. First, the CoreLogic home value index showed further rises in property prices across the country in the month to March 31. Year-on-year, Sydney, Melbourne, Canberra and Hobart had double-digit percentage gains. Melbourne was up 15.9 percent and Sydney a staggering 18.9 percent.
And although prices have come down a little in the volatile Perth and Darwin markets, the numbers triggered further concern from regulators.
In keeping the cash rate steady at 1.5 percent, RBA governor Philip Lowe made the following observation is the formal announcement:
“Growth in household borrowing, largely to purchase housing, continues to outpace growth in household income. By reinforcing strong lending standards, the recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness. Lenders need to ensure that the serviceability metrics that they use are appropriate for current conditions. A reduced reliance on interest-only housing loans in the Australian market would also be a positive development.”
But it was comments made outside the official script that were the most revealing. The governor specifically tied prices to “taxation arrangements” and <a href="https://www.rba.gov.au/speeches/2017/sp-gov-2017-04-04">noted</a>: “For many people, the high debt levels and low wage growth are a sobering combination.”
Yup: negative gearing plus inadequate supply plus low wage growth equals financial distress.
<h2>Prudential regulation</h2>
The Australian Prudential Regulatory Authority (APRA) announced it wanted to see the proportion of interest-only loans fall from the current strikingly-high level of 40 percent of new loans, down to 30 percent.
That’s fine, but three concerning things come quickly to mind: it treats the symptom not the cause of risky lending; it may be too late; and targets like this tend to lead to “gaming”. 
On the latter point, how much principal repayment qualifies? What about a loan with a 200-year maturity – is that interest only or not? You can bet the smart folks at the big banks are on the case figuring out how they can comply with the letter of the regulation but not necessarily the spirit.
Meanwhile, building approvals rose strongly in February, up 8.3 percent. This came mostly from NSW and Queensland, which were up 19.6% and 33.7%, respectively. These numbers reveal how volatile approvals are, and hence how little of a long-term supply trend they represent. 
The numbers were also driven largely by apartment approvals, which are particularly lumpy. Moreover, if these don’t sell well off-the-plan – perhaps because of interest-only loans drying up – then developers can quickly find themselves in trouble. 
Much as I would like to read these figures as a positive supply response, it’s hard not to be worried.
<h2>Governments aren’t helping</h2>
So while the RBA keeps cautioning market participants, governments are doing very little, or things that are explicitly unhelpful. It <a href="https://www.dailytelegraph.com.au/news/nsw/bringing-down-the-house-radical-plans-considered-to-ease-homebuyer-crisis/news-story/1c9eae05b7f7569d785dea29a5adb159">was reported</a>this week that NSW Premier Gladys Berejiklian favours extending the first home owner grant from new properties to existing properties in the June state budget. The premier has said previously that increasing supply is important (she is correct on that), but now seems to be undoing that by goosing demand.
That is the worst idea ever. Period. It just drives up prices and throws away precious government funds. As economist Saul Eslake has put it:
“All [FHOGs] do is increase the price of housing by that amount. There’s almost 50 years of evidence to show that when you give cash to would-be home buyers … the price of the housing they buy goes up by at least that amount. The people who get it think that it’s helping them - the government says ‘here’s a slab of cash’, and that’s popular, but it does nothing.” 
Meanwhile, we wait with anticipation the housing affordability package in the Commonwealth budget on May 9. No shortage of dumb ideas have already been floated – including letting people dip into their superannuation to buy a property.
Let’s hope that economics trumps politics just this once. Negative gearing needs to be reformed, and supply needs to be boosted. Housing affordability, financial stability and economic inequality are all riding on it.
Richard Holden is professor of Economics and PLuS Alliance Fellow, UNSW and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>.
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Regulators fiddle while house prices sizzle

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Interest rates have 'probably' bottomed and the next move by the RBA will be a hike but around the second half of 2018, according to AMP Capital's Shane Oliver.
In his latest research note he said the uncomfortably hot Sydney and Melbourne property markets, RBA expectations that GDP growth will return to around 3 percent and underlying inflation has bottomed argue against a rate cut.
"Against this, high unemployment and underemployment, the too high $A,  fragile economic growth and downside risks to underlying inflation all argue against a hike," he said.
"Meanwhile, bank rate hikes, regulatory moves to tighten lending standards and hopefully action in the May budget on the capital gains tax discount  should help deal with financial stability risks around house prices and household debt giving the RBA flexibility to set rates in the best interest of the wider economy and not just the Sydney and Melbourne property markets.
"The drip feed of cooling measures and negative news flow bank rate hikes, tightening measures by APRA and ASIC, talk of increased bank capital requirements which will only result in more out of cycle rate hikes and the frenzy of authorities and commentators warning about the risks of property markets.
"For investors who think that the 10-15 percent pa average home price gains of the last four or five years are a guide to the future its worth having a look at Perth home prices which are where they were ten years ago.
"Ten years of zero capital growth in Sydney and Melbourne would mean a housing return of just the net rental yield which is 2 percent or less."
 
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Uncomfortably hot Sydney and Melbourne property markets argue against rate cut: Shane Oliver

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GUEST OBSERVER
I grew up working in the family business in the hospitality industry.
At 12 years old I would work during the school holidays picking up glasses, and then as I got older, I was given more responsibility. I really had to work my way up the ranks; I went from picking up glasses to working in the cellar, then behind the bar, as a bar manager and finally into management where I looked after a number of hotels. 
I made the change from hospitality to real estate after I was in a nasty incident outside one of the hotels I was managing. I was escorting one of my clients to the train station as he was worried he would be attacked by a group of young men, sure enough, they turned up carrying weapons. It was a pretty close call; I was nearly stabbed.
At the same time, all of this happened, my wife and I were looking to move homes. We contacted a number of agents and detailed our requests like number of bedrooms, bathrooms, location, etc. I was amazed at the response. Of the agents that did get back to me, only one showed us anything that resembled what we were asking for.
I think that is a problem with our industry; some agents get caught up pushing the stock they have rather than listening to what the client is telling you. It was then I thought I could do this better.
It wasn't until I was 31 that I got into real estate. I started at LJ Hooker Double Bay as an agent; I convinced the owner to give me a job by telling him that if he wasn’t happy with me within the first six months, he wouldn't have to fire me, I'd walk out.
For three years I door knocked, and letterbox dropped every day. I was persistent and kept going until every person in the area had seen my face.
Our industry is a tough one to start out in. Building trust with clients without a proven track record is hard. You can't rely on family friends; you've got to prove yourself first.
I began selling $150,000-$200,000 one bedroom semis in Dover Heights. I'll never forget those days; it was a lot of hard work, long hours and dedication.
I was one of the oldest rookies working in the patch; most of the agents in the area had 10-15 years more experience than me. They didn't notice me; I wasn't a threat, I was nothing to them for a long time.
The most memorable sale I've ever done also happens to be the most pivotal of my career. About seven years into my real estate career I sold the Coogee Bay Hotel for $14 million. Having years of hotel experience under my belt, I had a distinct advantage over other agents who had tried to sell the property before me.
We sold the property to an investor from Vanuatu and negotiations went for 48 hours straight.
That sale received huge media coverage and cemented me as a key player in the multi-million dollar sector. The calls started coming in, and I haven't looked back since then.
Playing in the high end of the market is all about dealing with personalities and emotions and listening to what they want, which is very similar to selling real estate at any property price. Over the years I've intuitively learnt to read personalities and determine the best way to deal with that person by their character.
I've met and worked with some fascinating people. However, Kerry Packer has been the most intimidating.
I've always been driven by ambition and a desire to provide a certain lifestyle for myself and my family. I grew up with three brothers; the youngest went on to run a very successful business, the other is an ex-wallaby player and the eldest was a great athlete; competition was a huge part of our childhood.
My father was an unbelievable salesperson, he did his business deals with a handshake and that was a binding agreement in his eyes. I watched him for many years and was always in awe with how he acted in business.
When I was 16, he sat my brothers and me down and said to us I'm lending you my name, never dirty it. He told us that our word was our bond and we should always uphold it. I'll never forget that, and his words have shaped me as a businessman and as a person.
Success is important to everyone; I think we are all striving for success. For me getting to number one was the greatest challenge for me, I don't like running second. I started out as a 35-year-old rookie agent and wanted to build something that made me proud. Now LJ Hooker Double Bay is one of the country's leading real estate offices working in the $10 million-plus sector. We strive every day to stay at the top of our game because no one wakes up wanting to be number two.
Now I want to pass on my 30 plus years of real estate experience to an intern.
Just like me, they could be a 31-year old rookie wanting a career change or they could be fresh out of school and raring to start their career with a bang.
If this could be you visit <a href="https://www.milliondollarintern.com.au" target="_blank">milliondollarintern.com.au</a> and post a 60-second video of yourself selling something, anything. Just show your personality.
The successful candidate will win a <a href="/news/interns-sought-in-job-offering-with-lj-hookers-bill-malouf">three-month, paid position</a>. 
Over 100 people have registered their interest so far with 7 video entries submitted. Two more weeks of the competition remain.
 
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From pubs to penthouses; Bill Malouf’s climb to the top

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GUEST OBSERVER
The six district plans for Metropolitan Sydney must be amended to drive housing supply, says the Urban Taskforce. 
The district plans for Sydney along with the draft amendments to the Metropolitan Strategy contain a shift away from housing supply by reverting to single use zoning to focus on job.
The current Metropolitan Strategy (A Plan for Growing Sydney) clearly sees higher density housing as part of a mixed use approach to Strategic Centres but the draft amendment has removed housing in favour of commercial development.
The current focus by the NSW Government on housing affordability and the need to boost supply in Sydney must be enabled by the Greater Sydney Commission’s plans and how they influence decisions on planning proposals. With councils in Sydney going through an amalgamation process and the fact that it could be two years before Local Environmental Plans are completed it will be the District Plans that will influence planning decisions on new housing proposals. Sydney’s housing crisis needs urgent action.
A further shift away from housing supply has occurred with the use of the ‘precautionary approach’ to the rezoning of employment lands including inner city industrial sites that are becoming redundant. A number of planning proposals to develop mixed use precincts on these sites have been rejected over recent months by the Greater Sydney Commission’s Planning Panels because they do not conform with the draft District Plans.
The Urban Taskforce is concerned that there are now two conflicting planning documents for Sydney that both need to be considered to meet the Strategic Merit test for Planning Proposals. The existing Metropolitan Strategy clearly supports mixed use centres while the draft plans propose single use zoning. The confusion from these two planning documents is leading to significant risk for applicants of planning proposals.
The Greater Sydney Commission (GSC) has produced a significant amount of quality material that outlines the 20 and 40 year visions for Sydney in relation to the major growth that is predicted. There are many parts of the draft plans that contain excellent proposals. The Urban Taskforce’s submission to the GSC acknowledges the extent of the material produced and of the willingness of the commissioners and the staff to consult with the development industry. There are however a number of areas in the plans that we believe need further work and our submission focusses on these.
The Urban Taskforce submission contained 10 key issues which are listed below: 
1. Acknowledgement of the extent of the material
2. The legal status of the draft district plans in relation to ‘a plan for growing sydney’ is uncertain
3. The ‘three-city’ vision for sydney is supported 
4. A clear vision of the future built form of the greater sydney area is needed
5. Developers are increasingly becoming responsible for funding of infrastructure and affordable housing
6. Too many planning decisions are delegated to councils 
7. Housing supply must be given higher priority 
8. Community involvement must relate to the scale of the plan (local, district, metropolitan)
9. A mixed use cosmopolitan character should be promoted 
10. Affordable housing should be provided through an incentive-based system
The Urban Taskforce is keen to be involved in the amendment and refinement of the six District Plans and the Metropolitan Strategy - Towards Our Greater Sydney 2056 through discussions with the GSC.
We will also be producing research publications that add to the continuing dialogue between government, the community and the industry on Sydney’s future.
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The full submission on the Draft District Plans and the Draft Amendment to A Plan for Growing Sydney by the Urban Taskforce is available <a href="https://www.urbantaskforce.com.au/index.php?option=com_phocadownload&amp;view=category&amp;downloa%20d=2180:submission-draft-sydney-district-plans-and-towards-our-greater-sydney-2056&amp;id=2:what-s-%20new&amp;Itemid=141%20" target="_blank">here</a>.
 
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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Draft district plans must be amended to help solve Sydney’s housing crisis

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GUEST OBSERVER
The release of the Productivity Commission’s Draft Report Superannuation: Alternative Default Models on Wednesday has certainly raised some conjecture across the superannuation industry.
The Report’s recommendations warrant a serious assessment given their potential ramifications for what remains a burgeoning superannuation industry, with a substantial number of funds still co-existing, despite ongoing pressures for consolidation.
SuperRatings notes that the over-arching criteria for assessment and inclusion as a default fund proposed by the Productivity Commission is a focus on net-returns, which SuperRatings has been advocating for many years, via its net benefit modelling. This measures a fund’s net returns after the deduction of all fees and taxes over a 10-year period.
Given the findings closely align to SuperRatings’ existing net benefit modelling, we have analysed the funds that would be likely to sit within the ‘List of 10’ default funds, assuming a key focus on net returns, under the Productivity Commission’s proposed multi-criteria tender model. These funds are, in alphabetical order:
<a href="https://www.propertyobserver.com.au/images/2017/04/4/po%202.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/4/po%202.jpg" width="600" height="579">
 
 
Based upon SuperRatings net benefit modelling, the above funds have the highest net investment returns over a 10-year period and hence, would be included based on a pure net investment performance measure.
As can be seen from the above table, each of the top performing funds on a net return basis is a Not-for-Profit fund, suggesting that the Retail Fund sector may continue to struggle to be named as defaults, unless a broader assessment of measures is utilised.
SuperRatings CEO, Adam Gee, commented “Whilst we remain supportive of the Productivity Commission’s broader intentions, limiting a default list to only 10 funds will result in some outstanding value for money funds missing out on default fund status, which may sound the death knell for many of these, despite delivering excellent outcomes for their members”.
RECOMMENDATIONS VERY SIMILAR TO THE NZ KIWISAVER MODEL
Through its research and ratings of the NZ KiwiSaver system, SuperRatings recognises substantial similarities between the recommendations contained within the Productivity Commission report, particularly in respect of Model 3 – the multicriteria tender.
This includes the Productivity Commission’s suggestion of using the Australian Taxation Office as a centralised clearing house. The New Zealand equivalent, Inland Revenue Department, currently provides this service for contributions to be made by employers, which are then distributed to each of the relevant KiwiSaver schemes. This process also ensures (with legislative support) that only a single account can be created for an individual during their lifetime, removing the multiple account issue that continues to be problematic within the Australian system. Similarly, the KiwiSaver model moved towards a limited model for default contributions in 2014, via a selection process, in which nine of the approximate forty schemes available in the market at the time, were authorised as default providers.
SuperRatings believes that the KiwiSaver system remains one of the most efficient markets, particularly in relation to its operational and administrative processes. Referring to SuperRatings’ 2016 ratings of the KiwiSaver market, Mr Gee said “We continue to rate the KiwiSaver market highly in comparison to the other global retirement systems, with strong levels of member engagement and investment choice evident, underpinned by very cost effective operating models.”
Evidencing the efficiency of the KiwiSaver market and streamlined nature of its contribution and membership flows, SuperRatings research noted that a comparison of operating costs between NZ and Australia showed material differences. Based upon SuperRatings “Cost per Member” calculation (which effectively normalises the operating costs to an annual per member basis), the annual cost to a fund to operate a KiwiSaver member sits at slightly less than $60. This is in stark contrast to the average cost per member within Australia of $255, suggesting there may be some merit in the NZ model.
A REASONABLE START BUT A BROAD ASSESSMENT NEEDED
Whilst SuperRatings believes there is already a reasonable level of competition evident in most sectors of the superannuation marketplace, it also recognises that any changes that introduce greater competition into the market and provide members with better retirement outcomes can only be positive.
That said, SuperRatings does recognise that the initial assessment criteria proposed by the Productivity Commission remains limited. Mr Gee further commented that “the exclusion of insurance from the assessment is fraught with danger, given the important role it continues to play within superannuation and the community more broadly”.
In line with its value assessment of a superannuation fund, SuperRatings continues to believe that a broad assessment of quality is required in order to select a default superannuation fund. This must include an assessment of a range of underlying metrics in respect of investments, fees, insurance, member servicing/advice, administration and governance, to ensure that every facet of a superannuation fund’s offering can be appropriately interrogated.
SuperRatings looks forward to continuing to assess the outcomes of the Productivity Commissions Draft Report and will continue to engage in the consultation process.
 
Adam Gee is the CEO of SuperRatings and can be contacted <a href="https://www.superratings.com.au" target="_blank">here</a>.
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Productivity Commission findings no windfall for retail funds: Adam Gee

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GUEST OBSERVER
Opposition to proposed road projects has become a feature of state and federal elections.
In Western Australia, protests against the Roe Highway Stage 8 escalated just before Christmas 2016. On the eve of the state election, Main Roads WA contractors (acting at the behest of the then Liberal-National government) pushed forward with the destruction of the environmentally significant Beeliar wetlands.
This happened despite considerable community opposition. The Labor opposition, now the newly elected government, declared it would halt the construction if elected.
Politics as usual puts planning under a cloud
In our recently published paper, we compared road projects in Melbourne (East West Link), Sydney (WestConnex) and Perth (Perth Freight Link). Based on observational, policy and media analysis, we found growing antagonism between the state governments and their residents.
Roe 8 is just the latest freeway battle in Australia, following those in Sydney and Melbourne, where the Labor government cancelled the East West Link.
To the casual observer, these protests, and promises by parties in opposition to scrap contracts if elected, could be seen simply as “politics as usual”.
However, normalising politics in transport can veil the deficiencies and shortcuts that undermine planners’ ability to act in the public interest. For this reason, it is critical that we examine what dynamics are at play, and how planning serves and/or exacerbates these.
Professional planning bypassed
In the case of Roe 8, good planning was circumvented.
Not only is this undermining efforts to reduce car dependency and invest in public transport – goals adopted in these three cities’ metropolitan strategic plans since at least the 1990s – it is undermining professional planning practice.
The evasion of due process in planning has recently come into sharp focus. Reports by the Australian Auditor-General on the WestConnex project in Sydney and by the Victorian Auditor-General on the East West Link in Melbourne are severely critical of processes taken. The report on the East West Link concluded that the Victorian government lacked “a sound basis for the government’s decision to commit to the investment”.
In the case of Roe 8, Main Roads WA documents provided to the Department of Infrastructure and Regional Development were recently released under FOI after a two-year court battle to keep them secret. These show a rushed and partial assessment of the transport case for the road was put to Infrastructure Australia.
The latter, in its own assessment, alerts us to concerns about inadequate analysis:
A rapid BCR (benefit cost ratio) was completed for the preferred option only … [and] a rapid BCR was not completed for additional options to determine if the preferred option provided the greatest net benefits.
Traffic planning is only one part of the process. A Freight Network Review commenced in 2001 and concluded in 2003 found that Roe 8 was not needed. There is no publicly available report stating why this sound planning was set aside.
In addition, proper planning process has been bypassed. The previous WA government argued that the Roe Highway had been reserved in the Metropolitan Region Scheme (MRS) since the 1960s and that this was good long-term planning. However, the detailed road alignment falls outside this reserve at three locations.
This triggered the use by the WA Planning Commission of a “Planning Control Area” (PCA), the purpose of which is to protect land until “proper planning” can take place. After this, an MRS amendment must be initiated and advertised for public comment.
Construction began before any public consultation on the MRS amendment. Was this to avoid public scrutiny?
Public consultation is an important part of any good planning process. It was undertaken for other 1960s major road reserves. These were reviewed against current knowledge and policy, and in some cases deleted (the Stirling Highway, for example).
Public input into the planning process provides an opportunity for governments to bring the community with them through both owning the planning problem and arriving at a solution that the public can support.
Risks of politicisation are high
Large transport projects are likely to attract opposition from affected communities. Construction is disruptive and the visual, noise and amenity changes are significant.
These projects are also transformational. They lead to profound city-wide, and even region-wide, changes to the environment and the working of a city.
For these reasons, planning for transport projects must be a process of careful consideration. It requires sound professional planning based on reasoned justification drawing on the best available evidence. This process must be transparent to all.
When politicians choose a different course to planning advice, this must be on their own account and again transparent. We need a strong discussion on professional ethics and the need for clear separation of planners’ independent advice from elected politicians’ decisions.
In the case of Roe 8, are we to assume that the analysis and conduct of the planning process we see revealed reflects what planners at Main Roads WA and the Western Australian Planning Commission believe is sound professional practice? Or are they simply building a case for politicians?
Without clear and transparent documentation, planners leave themselves open to criticism and bring the profession into disrepute.
Room for improvement
Based on our research, we assert the need to recognise that the gap between strategic planning and project planning needs to be filled by a more community-oriented decision-making process.
We must challenge “urgency” – when governments aim to sign contracts before we have had sound planning analysis and community input.
Long-term planning does not mean that a project like Roe 8, which was first mooted more than 50 years ago, must be built today. We need to take into account new knowledge and current views on our future. We must place equality and environmental and economic sustainability in balance, as weighed by community values.
The political process is one place where those values must be considered holistically. This is immensely important, but it should not undermine transparent and sound planning.
<a href="https://theconversation.com/profiles/crystal-legacy-18412" target="_blank">Crystal Legacy</a> is Australian Research Council (DECRA) Fellow and Vice Chancellor's Research Fellow, Centre for Urban Research, School of Global, Urban and Social Studies, RMIT University
<a href="https://theconversation.com/profiles/carey-curtis-96861" target="_blank">Carey Curtis</a> is professor of City Planning and Transport, Curtin University
<a href="https://theconversation.com/profiles/jan-scheurer-342188" target="_blank">Jan Scheurer</a> is senior research fellow, Curtin University.
All are authors for The Conversation.
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How do we restore the public’s faith in transport planning?

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Australia was now a key focus internationally for the super-rich, according to Knight Frank’s Global Head of Residential Lord Andrew Hay.
Sydney and Melbourne are on the top 10 list of most important cities globally for the wealthiest to invest, according to the Knight Frank City Wealth Index.
Sydney ranked 4th and Melbourne ranked 10th in the ‘investment’ category.
“Countries that offer a fiscal and political ‘safe haven’, as well as excellent quality of life, are expected to see strong growth over the next decade in UHNWI populations," he said.
Hay was in Sydney on Wednesday to promote Knight Frank’s 11th <a href="https://www.knightfrank.com/wealthreport" target="_blank">annual Wealth Report</a>.
Lord Hay said that the increase in the ultra-wealthy population globally has occurred despite ongoing political and economic uncertainty around the world having more of an impact on future trends. 
<a href="https://www.propertyobserver.com.au/images/2017/04/6/170331_WR2017_KF%20city%20wealth%20index.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/6/170331_WR2017_KF%20city%20wealth%20index.jpg" alt="" width="1025" height="1285">
“The momentum gained in wealth creation in 2016, although relatively modest, was far from being a foregone conclusion, especially given that nearly three-quarters of respondents to our Attitudes Survey highlighted political uncertainty as a significant threat to their clients’ availability to create and preserve wealth.”
Lord Hay said that since the global financial crisis in 2008, the world’s wealthiest people have shifted their focus from the size of returns to the safety of their capital.
"Property remains a target for outbound capital and our Attitudes Survey revealed 32% of UHNWIs globally will invest in offshore residential property in the next two years.”
He noted over the next ten years, key developments attracting global wealth into Australia will include Crown Sydney, One Sydney, One Sydney Harbour and Melbourne’s One Queensbridge. 
“Properties such as these offer a new investment proposition for inbound global wealth,” he said.
Knight Frank’s Director, Sales &amp; Marketing One Queensbridge, Erin van Tuil is leading the marketing for the development, in collaboration with Crown Resorts and Schiavello Group.
According to Michelle Ciesielski, Knight Frank Australia’s Head of Residential Research, Sydney recorded the highest global inflow migration of high-net-worth-individuals (HNWIs) at 4,000 in 2015, followed by Melbourne at 3,000; equivalent to four per cent of their established HNWI base.
“Ongoing migration to Australia is the attractive lifestyle and relatively healthy economy. Australia is projected to see a 70% growth in the UHNWI population between 2016 and 2026.” 
While Sydney and Melbourne house prices have doubled since the end of the financial crisis in 2009, these prices were "cheap" by "global standards", as shown in The Wealth Report. 
Sydney ranked 59 on the "square metres per $US dollar" scale and Melbourne is ranked at 110.
According to the Wealth Report, $US1 million ($1.3 million) buys 17 square metres in Monaco or 26 square metres in New York, 59 square metres in Sydney and 110 square metres in Melbourne.
“Within a global marketplace Sydney does look cheap, there’s no doubt about that,” says Lord Hay.
“And I don’t think you are heading for a crash.”
The Australian market was fundamentally healthy.
“To have a really successful market, you need a combination of overseas and local investment,” he noted.
“For me, the perfect ratio is 60 per cent domestic demand, 40 per cent overseas demand, so then you get the growth fuelled from overseas but it’s underpinned by a real domestic market.
“Here, you have that great balance. And for me, that’s what makes a sustainable market, but also an exciting market.”
<a href="https://www.propertyobserver.com.au/images/2017/04/6/Screen%20Shot%202017-04-06%20at%209.31.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/6/Screen%20Shot%202017-04-06%20at%209.31.12%20AM.png" alt=""> 
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Sydney, Melbourne top 10 for world's wealthiest to invest: Knight Frank

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GUEST OBSERVER
When renovating for profit, never rely on a selling agent’s estimate of renovated value.
Buyers should do their own research to establish the ceiling price of fully-renovated properties in the suburbs they are looking to buy.
You can’t rely on selling agents to give you an accurate estimate of the renovated value of a property.
Not only is it in their nature to be very bullish with sale prices as no one wants to list their property for sale with a pessimist; it’s also in their clients’ financial interest for them to be bullish.
They want to paint the property in the best possible light to encourage you to make an offer on it. 
The other problem is that it’s also an unqualified estimate as they may interpret what you intend to do with the property as more high end than you are actually planning.
Many property experts are predicting that unrenovated houses will be the most sought-after property purchases in 2017 as buyers shy away from an oversupply of new apartment buildings.
Those properties in need of renovation will be even more popular this year especially if they are livable, allowing DIY renovators to move in and reside onsite whilst undertaking renovation works over time.
When you’re renovating for profit, adding value is the name of the game.
Unfortunately you can’t add unlimited value to a property because there is a limit as to what the market will pay no matter how good it looks.
Once a home has reached its ceiling price for the accommodation it offers, buyers will not pay more.
When you’re undertaking comparable market analysis you need to establish the ceiling price of fully renovated properties that are similar to the ones you’re targeting.
Be mindful of the top values and resist the temptation to overspend.
Tips when searching for an unrenovated property:
<ol>
<li>Get to know the price difference between renovated and unrenovated properties in your chosen area so you know what you can spend and still not overcapitalise.</li>
<li>Find out which streets to avoid and the unique pockets that attract higher prices.</li>
<li>Understand the value of desirable features: parking, views, proximity to shops, schools, parks and public transport.</li>
<li>Get lots of ideas for improvements for your property by looking at the features of other homes that are for sale.</li>
</ol>
 
Patrick Bright is the Director of buyer’s agency EPS Property Search and can be contacted <a href="https://www.epspropertysearch.com.au" target="_blank">here</a>.
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Never rely on a selling agent's estimate of renovated value: Patrick Bright

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<img src="https://counter.theconversation.edu.au/content/75126/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Whether house prices have been inflated by limited supply, or because of transfers to investors and homeowners, government policy is now trapped in a vicious cycle.
The wealth accumulated in our houses has become a central part of the retirement system, and the government itself can’t afford for prices to fall.
Generous tax subsidies and asset test concessions on the family home have incentivised the accumulation of wealth in property and fuelled demand pressures in the housing market for decades.
Government assistance to home buyers and owners is provided in the form of the First Home Owners Grants, stamp duty concessions, and the family home’s exemption from capital gains tax, land tax, as well as the pension and other assets tests. These subsidies and concessions combine to make wealth accumulation in the family home more attractive than other assets.
In many real estate markets, land supply constraints and planning controls can limit urban sprawl while housing demand pressures continue to intensify. Hence, cities such as Sydney have become “pressure cookers” where the subsidies result in rising house prices in the face of land supply constraints.
<h2>The policy-price cycle</h2>
The family home has become a cornerstone of the Australian retirement system. Sustained house price increases have allowed government income support to be set at historically low levels in Australia compared to other countries with lower home ownership rates such as Sweden and the Netherlands. This is based on the assumption that the low-income elderly will be housing asset-rich, and can therefore can get by on smaller pensions.
Indeed, in an era of ageing populations, governments have been encouraging older Australians to tap into their store of housing wealth to fund their own retirement and ease intergenerational fiscal tensions. For instance, the Productivity Commission’s aged care equity release scheme recommends elderly home owners draw down against their housing equity to meet aged care costs.
Of course, this only works if house prices continue to rise.
If house prices fall, the cycle gets broken and the family home may no longer be an adequate base for supporting the retirement needs of the wider population. In the event of a long-term decline in house prices, individuals would require greater income support from governments as their personal asset base weakens. This would in turn perpetuate a rise in government social security expenditure.
<h2>Over the long term</h2>
But even if house prices weren’t to decline, there is a paradox at play in this system. In order to maintain a healthy housing asset base for retirees, house prices must remain high. So the policy-price cycle is aimed at sustaining home ownership as a key pillar of the welfare system. However, it has also resulted in housing wealth becoming increasingly concentrated in the hands of smaller subgroups. Notably, housing equity is getting concentrated in the hands of older generations.
<a href="https://www.propertyobserver.com.au/images/2017/04/6/image-20170403-16550-3uf443.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/6/image-20170403-16550-3uf443.png" width="600" height="330">
Author’s own calculations from the Australian Bureau of Statistics Surveys of Income and Housing. Author provided
As these charts show, the intergenerational housing wealth gap has widened in the last two decades. In 2011, the median housing equity of home owners aged 45-64 years was nearly double the value held by the 25-44 year olds. The share of the population’s housing equity held by those aged 45-64 years has widened between 1990 and 2011 at the expense of those aged 25-44 years.
This means the system could potentially unravel in the long term. If large numbers of young people continue to face price barriers to home ownership, the home ownership pillar within the welfare system will be weakened as the future population of home owners shrinks.
In the short-term a significant group of millennials will miss out on the benefits of home ownership. But in the long term, unless governments address some fundamental structural problems currently entrenched within our tax-transfer system, there is a significant weakness in our social welfare system built on housing.
 
Rachel Ong is deputy director of the Bankwest Curtin Economics Centre, Curtin University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">here</a>.
 
 
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Governments are trapped in a vicious cycle of housing policies and prices: Rachel Ong

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

Joel Robinson

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

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

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

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

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

Parcel delivery is joining the apartment amenity checklist

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

Jonathan Chancellor

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