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A vacant Toorak block of land fetched $850,000 above reserve when four developers fought for the weekend auction offering.
It came with planning permits for the 658 square metre block at 7 Monomeath Avenue.
The approval was for two luxury townhouses.
Bidding opened a $2.8 million, RT Edgar’s Mark Wridgway who announced the lot on the market at $3 million.
It sold for $3.85 million.
It last sold for $3.6 million in 2015 and $2 million in 2010.
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jchancellor-FAypfDUnLy

Toorak townhouse site sells for $3.85 million

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GUEST OBSERVER
Real-estate valuations in major cities are at historical peaks, banks are pulling back from commercial real estate lending and the tailwind from lower interest rates appears to be coming to an end. 
Against this background,  assesses the outlook for real estate, and opportunities in traditional and alternative exposures, such as real estate debt. 
Cap rates have come down; what’s next?
Qualitas is an investor that is agnostic to sector and which part of the capital structure we play in – ultimately what we are looking to do is find opportunities where there is the biggest mismatch between underlying real estate fundamentals and the capital markets pricing of parts of a capital stack for that sector.
The traditional commercial real estate sectors of office and retail have been a tough place for the past number of years in our view – underlying and fundamental tenant demand has been quite benign, outside of one off events such as the Sydney metro compulsory acquisitions, yet capital has been chasing those assets very hard right across the capital stack. Spreads and cap rates have come down a long way.
The easy money has been made in commercial assets by riding cap rates down: the Tailwinds are at an end. From this point, asset owners will need to deliver value through real asset management – focusing on your tenants and your physical product, because the easy wins are gone. That is often easier said than done and really requires focused on the ground management.
We anticipate there will be a period of further capital appreciation over the short term, this time driven by effective rental increases via some reduction in incentives, with cap rate compression petering away. The question for office owners will be how far incentives will fall and how sustainable is the increased effective rent in the face of the change in cap rate direction.
Residential will offer opportunities
Residential is where we see the biggest dislocation, despite consistent market paranoia.
It’s true that certain precincts and product types having challenging supply issues, but there remains a fundamentally strong underlying demand for housing that gives us medium term confidence in the market. This is supported by a number of macro factors outlined below.
Demand
There is unrelenting net migration, coupled with the strong political will in our major cities to increase housing density. There is also a massive change in tenure preference towards rental due to affordability and choice occurring in the market. 
These are combining to provide a robust inherent demand. The fears about supply issues in the Melbourne and Brisbane CBD investor apartment market and some of the issues out in Western Sydney are well founded – however they make up a fraction of the overall housing story and outside of those hot spots demand is unrelenting. 
The market is far from being in a structural surplus and if you measure supply by housing starts instead of planning approvals obtained, then this is particularly evident. Our research suggests that the reality is between Sydney and Melbourne we need circa 65,000 new dwellings per annum – that is around 180 dwellings each and every day and the market is nowhere near suppling that. 
The market is learning rapidly about what is a “good” apartment dwelling and the days of poorly designed and built apartments being fired up at record pace are as good as finished. The occupier and buyer markets are too savvy now for that and developers are increasingly focused on the minutiae of design, which hasn’t always been the case.
Supply
Our view is that these demand drivers are robust for the medium term but will be supported by the other side of the equation, being the supply situation – particularly the factors curtailing supply.
There is currently a severe shortage of debt capital for the development of residential – it is currently as bad as if not worse than the financial crisis. Notwithstanding media hype about “postcode blacklists”, the banking sector has taken a much more generic approach to development finance –the tap is very close to being off altogether.
Our commercial estate lending market is dominated by 4 major banks with around an 85% market share versus closer to 50% share in the US and Europe. Given the soft conditions in other sectors of the economy, the banks’ weighting to real estate is heavy and APRA has stepped up examination of commercial real estate books significantly. The property finance departments now have negative asset volume budgets and are actively seeking to shed developer clients. 
This significant pullback in credit availability is being compounded by a confusing and difficult town planning environment in both Sydney and Melbourne.
Notwithstanding the desire from government to increase density around existing amenity, there is an ongoing battle against local councils and the electorates. It is having a direct impact on the ability for new supply to be injected in to the right areas of the market and is exacerbating shortages in the areas housing is required – again, the political environment resulting from “too many city shoebox apartments” has led to a broad-brush approach to reigning in density due to issues in one small segment of the market, much in the same way the banks have done.
This means is that the majority of the cranes that you see in the sky in our major cities are what we call 2014 and 2015 vintage cranes – there are significantly less 2016 project commencements and we anticipate 2017 and even 2018 will be similar – meanwhile, the underlying demand and net migration pushes against the supply shortage.
Where to Find Value?
So if I turn to what Qualitas is looking for in the market currently, one thing we look at very closely is what we call the “Revenue &amp; Capital Curve”. This is a conceptual indicator for us about where we want to pivot our investing activity. As you will see there is a clear Equity Strike Zone and a clear Debt Strike Zone – we feel that we are currently clearly in the Debt Strike Zone.
On that basis, our thesis is to focus on playing the current position of the curve as well as laying the foundations for the next inflection point on the curve:
<ul>
<li>Filling the capital gap on “shovel ready” projects – playing the current cycle position</li>
<li>Repurposing assets to focus on expected 2020 supply shortage – positioning for the next turn in the cycle.</li>
</ul>
We are currently most focused on debt or debt-like instruments as the returns available at this point are equity like in our view. The debt pull back is leaving significant holes in capital structures and the returns on offer are strong on a risk adjusted basis and akin to equity, particularly given the late entry point of the debt.
This ability to deliver strong risk-adjusted returns to our investors is part of what’s driving Qualitas’ growth. Coupled with the addition of respected senior team members, we are confident this growth will continue, benefiting not just our investors, but the partners for whom we filling the lending gap. 
Mark Fischer is managing director, Principal Investments at Qualitas and can be contacted <a href="https://www.qualitas.com.au" target="_blank">here</a>.
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Why insto money is moving to residential: Mark Fischer

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GUEST OBSERVER
Housing finance
Home loans: The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.5 percent in January, the third consecutive rise. But the increase was wholly due to a 5.0 percent lift in refinancing.
The value of loans (owner occupier and investment) rose by 1.5 percent in January. Owner-occupier loans fell by 0.2 percent but investment loans rose by 4.2 percent. Non-bank lending up: The number of loans by non-bank lenders rose by 4.7 percent in January after a 6.2 percent lift in December – the strongest back-to-back gain in 32 months.
What does it all mean?
There is a lot of information contained in the Housing Finance publication. Actually so much information that it can prove confusing. In the latest month, budding home owners (owner-occupiers) took out fewer loans to build homes or buy new or existing homes. There were more loan commitments in the month, but only because more people chose to refinance existing loans.
Refinancing had fallen for three straight months, so the lift in loans was from 16-month lows. The lift in refinancing may serve to boost the purchasing power of consumers, and thus support growth of the broader economy.
There were actually fewer loans taken out by those looking to build their dream homes. Loans to budding home builders have fallen for four of the last five months. But once investors are added in, construction loans are still healthy, up almost 10 percent on a year ago. If these commitments are actually drawn down, then more new dwelling projects will be started in coming months.
Home building does appear to have peaked but the lift in construction loans suggests a soft landing lies ahead.
Investors remain active in the housing market with the value of loans at 20-month highs. Investor loans are actually up 27.5 percent on a year ago, the fastest growth in 29 months.
The risk is that regulators may seek to apply further measures to slow down the pace of investor home loans.
Borrowers in many states are taking out smaller home loans than a year ago. That is despite home prices still generally rising and despite interest rates being lower than a year ago. The more conservative lending posture will encourage the Reserve Bank.
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What do the figures show?
Housing finance - number
The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.5 percent in January after rising 0.2 percent in December and rising by 1.4 per cent in November. Excluding the refinancing of dwellings, the number of loans was down by 1.7 percent.
 The number of new home loans was up by 1.9 percent on a year ago (excluding refinancing, up 4.6 percent).
Loans by owner-occupiers for the construction of homes fell by 1.4 percent in January. Loans to buy newly-erected dwellings fell by 2.3 percent.
Loans for the purchase of established dwellings (excluding refinancing) fell by 1.9 percent.
The number of refinancing transactions rose by 5.0 percent.
Lending across states/territories: NSW (+1.3 percent); Victoria (+1.6 percent); Queensland (+1.6 percent); South Australia (+4.4 percent), Western Australia (+0.3 percent); Tasmania (-2.5 percent); Northern Territory (-5.3 percent); ACT (+1.9 percent).
HOUSING FINANCE - VALUE
The value of new housing commitments (owner occupier and investment) rose by 1.5 percent in January – the fifth straight gain. Owner-occupier loans fell by 0.2 percent but investment loans rose by 4.2 percent.
The value of loans by owner-occupiers and investors to build new homes rose by 9.7 percent in January after falling by 10.2 percent in December and rising 15.4 percent in October. The value of loans stood at $3.04 billion, down from the record high of $3.32 billion in the year to March. 
HOUSING FINANCE – OTHER STATISTICS
The proportion of first-time buyers in the home loan market eased from 13.8 percent to 13.4 percent in January (long-term average 19.4 percent).
The proportion of fixed rate loans rose from 14.6 percent to a 9-month high of 15.2 percent in January. And the average home loan across Australia stood at $363,600 in January, down 3.2 percent in the month and down 0.4 percent on a year ago.
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WHAT IS THE IMPORTANCE OF THE ECONOMIC DATA?
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.
WHAT ARE THE IMPLICATIONS FOR INTEREST RATES AND INVESTORS?
Regulators will keep a close eye on home loan trends. The revival of investor lending could lead to fresh controls over new lending. But it is also worth pointing out that non-bank lenders seem to have been more active in the past two months which may provide complications in containing investor exuberance.
While investors are more active in the housing market, budding home owners are more circumspect with the value of owner-occupier lending just 1.9 percent higher than a year ago.
The lift in home loan refinancing is positive for consumer-focussed companies.
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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More home loan refinancing, investors still active: Craig James

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GUEST OBSERVER
The January housing finance approvals came in above expectations with a notably strong rise in the value of investor lending. 
The total number of loans to owner occupiers posted a modest 0.5 percent rise, better than the forecast 1 percent dip but within the range of monthly volatility which is wider for January due to the seasonal low.
 Ex refi, ‘new loans’ were softer, down 1.7 percent. Both are up a touch on year ago levels.
Of more note was another strong rise in the value of investor loans, up 4.2 percent/mth to be 27.5 percent higher over the year.
The resurgence since around mid 2016 follows a sharp drop-off over the second half of 2015. The monthly value of investor approvals is now 5.3 percent below its peak in the first half of 2015 and on the basis of January’s update is showing no signs of topping out.
Details  Owner–occupiers (no.)   0.5%mth, 1.9%yr – ex-financing (no.)        –1.7%mth, 4.6%yr       
Construction of dwellings (no.)               –1.4%mth, –5.1%yr Purchase of newly built dwellings (no.)   –0.3%mth, 10.4%yr        
Value of loans:  Owner-occupiers ($bn)   –0.2%mth, 1.9%yr Investors ($bn)              4.2%mth, 27.5%yr Total ($bn)                    1.5%mth, 11%yr Total ex refi ($bn)          1.3%mth, 15.6%yr      
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
 
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Investor lending surge continues into January: Matthew Hassan

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GUEST OBSERVER
The February Gauge printed a decline of 0.3 percent/mth taking the annual rate down slightly from 2.0 percent/yr to 1.9 percent/yr.
The three month change dipped to 0.8 percent from 1.2 percent in January.
As February is the mid-month of Q1 it provides the Gauge's first estimate of the Q1 CPI.
More recently, the end quarter reading has provided a better guide to the CPI than the mid-month.
As such, we will wait for the March reading to get a more comprehensive update.
However, since March 2016 neither measure has provided us with a reliable guide to the CPI.
As such we recommend the cautious application of the Gauge as a leading indicator of the CPI.
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Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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Inflation declines month on month: Justin Smirk

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<img src="https://counter.theconversation.edu.au/content/70258/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
During summer, when a rainbow lorikeet or kookaburra visited your home, what did you do? Did you offer them a slice of apple, or simply watch until they take flight?
It brings many people joy to provide food and water for birds, to encourage them to stay a while and be given the chance to observe them more closely. But some people are reluctant to interact with birds in this way because they’re worried it might damage the birds’ health. 
In contrast with other countries, little research has been done on the effects of feeding birds in Australia. As a result, there are no established guidelines around how to feed and provide water for local birds. 
That’s why we ran the Australian Bird Feeding and Watering Study. We asked nearly 3,000 people to monitor the birds that visited their feeding areas and birdbaths. We wanted to know if there was a difference in the species that visited different types of gardens.
We examined the numbers and types of birds visiting:
<ul>
<li>birdbaths where no food was provided</li>
<li>birdbaths where food was provided</li>
<li>bird-feeders where birdbaths were provided</li>
<li>places where only food was provided.</li>
</ul>
The early results from the winter stage of the Australian Bird Feeding and Watering Study suggest that if you provide food and water, you will get more birds in your garden. But the species you attract will depend on what exactly your garden has to offer. 
Granivores
Granivores are seed-eating birds. They include species such as parrots, crested pigeons, sulphur-crested cockatoos, crimson rosellas and galahs. 
We noticed a spike in the number of granivores in gardens where both food and birdbaths were provided. But when food was on offer, fewer granivores chose to use the birdbath. We don’t yet know exactly why this is, but it could be because these seed-eaters need less water, or they can get it more easily from other sources than they can food.
Also, most of the bird food sold in shops is seed-based. People who buy these products will naturally attract more seed-eating birds to their garden.
We were, however, surprised to see crested pigeons visiting gardens where food was provided. These birds are only recent urban arrivals, and were previously restricted to semi-arid environments as opposed to the more urban areas where most of our citizen scientists lived. But crested pigeons are very adaptable and now compete fiercely for food and territory with the introduced spotted dove in some Australian gardens.
<h2>Nectarivores</h2>
“Small” nectarivores are nectar-eating birds that weigh less than 20 grams. The main birds in this group are New Holland honeyeaters, eastern spinebills and Lewin’s honeyeaters. 
The early results of our study suggest small nectarivores prefer gardens with birdbaths more than their granivore and insectivore friends. In fact, it seems that these small nectarivores like birdbaths so much, they will choose birdbaths over food when both are provided. 
“Large” nectarivores are nectar-eating birds that weigh more than 20 grams. These species including noisy miners, rainbow lorikeets and red wattlebirds – seem to prioritise food over birdbaths. This may be because they’re looking for a source of protein that they can’t easily find in their natural environment. 
Honeyeaters – such as Lewin’s honeyeaters, blue-faced honeyeaters and noisy miners – will forage on nectar but will eat insects as well. They switch from one to the other, but once they have found their meal they will defend it vigorously from other birds. 
<h2>Insectivores</h2>
Insectivores feed on insects, worms, and other invertebrates. Some insectivore species include superb fairy-wrens, willie wagtails and grey fantails.
Insectivores are most attracted to gardens where both food and water are provided. While superb fairy-wrens were frequently found in gardens where food was provided, willie wagtails and grey fantails preferred to visit gardens where only water is provided. 
<h4> </h4>
Many people have told me how confident fairy-wrens and willie wagtails can become around houses and gardens. These tiny birds can be bold and aggressive, and can work together to get what they want. A mum and dad fairy-wrens will conscript their older children into looking after younger ones – and siblings who refuse to help find food and defend territory may even be kicked out of the family. So these tough breeds have a competitive advantage in their new urban environments, and aren’t afraid to mix with or even chase off bigger birds.
You may be wondering exactly what type of seed to put out to attract which granivore, or which meat attracts a carnivore like a Kookaburra. I’m afraid we can’t yet say for sure, as we are yet to analyse the data on this question. Watch this space.
<h2>Could birds become reliant on humans for food?</h2>
Many people worry that birds will become reliant on humans to provide food for them. But this mightn’t be as big a concern as we once though.
The birds turning up at feeding areas and birdbaths are species that are highly adaptable. Many Australian birds live long lives, and relatively large brains when compared to their European counterparts. Some experts have argued that some Australian birds have evolved a larger brain to cope with feast and famine conditions in the Australian environment.
<h4> </h4>
Many Australian bird species can switch easily between estates and gardens in one area, be semi-nomadic, fully nomadic or seasonally migratory. This ability to adapt and switch between diets makes Australian bird species very resourceful, innovative and adaptable. 
Of course, Australia also has birds that have highly specialised diets or habitats, and they’re the ones usually most threatened or limited to one territory – birds like the regent honeyeater or ground parrot. In this study, we’re concentrating on birds that are adapting to urban areas and turning up at birdbaths and feeding areas in gardens. 
<h2>Building our knowledge of bird feeding behaviour</h2>
We plan to develop guidelines around providing food and water for birds in a way that has the highest conservation value for our feathered friends. But before we can do that, we need more data from you. 
So please take part in the summer stage of the study and pass the word around to others who may wish to be involved.
The summer survey will run for four weeks, beginning on January 30 2017. Visit feedingbirds.org.auto download the complete report on our early findings or to register to take part in our summer study.
Grainne Cleary is researcher, School of Life and Environmental Sciences, Deakin University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/grainne-cleary-300485" target="_blank">here</a>.
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Birdbath, food or water? How to attract your favourite birds to your garden

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GUEST OBSERVER
With diverse reactions being stirred by the Victorian State Government announcement that come July 1st First Home Buyers in Victoria will be let off paying of having to pay stamp duty, the opinions on what the real impact might be differing greatly.
Fuelled by the housing shortage right around Australia and across Victoria, and an ever increasing demand from first time property buyers, the prices are set to stay strong and continue to edge forward. While the sentiment of waving the state charge comes from the right place and aims to support virgin buyers, some believe the ‘home free’ on the stamp duty may well drive prices up and even more out of reach for those starting out.
It is hard enough for first home buyers to get into the market, relieving the extra pressure of having to save up for stamp duty is certainly going to motivate more buyers.
Some experts believe this will drive prices up, rather than down, but really, it will encourage younger buyers to purchase sooner.
Additionally, the Victorian state government has announced to give first home buyers even greater incentive with a first home buyers grant of up to $20 k (provincially) and $10 k in metropolitan areas.
Price will never curb housing shortage, nor will affordability. As long as we have a shortage of land and steady demand, nothing will really change. But, with offerings that will save first time owners upward of $30 k, we will see more people taking the leap to property ownership sooner.
Property has been at the centre of the Great Australian Dream, mind you with median prices across Melbourne being what they are, for many young people it is either a pipe dream or a nightmare, she added.
Not surprising, the rentvestor trend is on the rise as younger people can not afford to buy where they want to live, she said.
While, the move by the Victorian State Government to abolish the stamp duty charge gets the thumbs up from first home buyers, whether this will drive prices up or not needs to be seen.
For many come the new financial year may mean actually getting into their first home due to these changes, however the risk lies in that people may borrow more than is sustainable or what they can afford to hold should interest rates start to climb.
I think it’s a good initiative and one that incentivises people to get into a property sooner, with time in the market being the key here, as long as one buys well.
Speculation that other states will have to follow suit or that we will see a back-lash of price increases because of this move by the Victorian State, will only be answered by time.
Marion Mays is the founder/director of Thalia Stanley Group and can be contacted <a href="https://www.thaliastanley.com.au" target="_blank">here</a>.
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Victorian first home buyers set to win – or are they? Marion Mays

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GUEST OBSERVER
If you gave ancient Romans iPhones, it would blow their minds… but if you took them to a modern construction site they would get it – for, thousands of years ago, they too built in concrete and brick as well as stone.
Today, about a third to half of the carbon emissions associated with a building over its lifecycle comes from creating the materials used to build it, but developers, builders and architects have been reluctant to change.
The solution doesn’t have to be invented. It already exists, in the form of modern engineered timbers. Unlike conventional materials, sustainably sourced engineered timber actually stores carbon. Engineered timbers are also cheaper, faster to build and can be pre-cut in factories, so there is less time lost to weather and safety risks are easier to control. The resulting buildings are sturdy, safe and well insulated.
In a world where housing affordability is an issue, where homelessness is a problem and where climate change is a real threat, I see engineered timbers in mid-rise apartments as being the future of building in urban areas.
Compared to tall towers, mid-rise building in cross laminated timber (CLT) – sometimes referred to as plywood on steroids – has a number of environmental advantages.
Tall buildings are highly inefficient. When you’ve got a tall tower, you’ve got to pump water up great heights, you need cooling as there’s no natural shade and they’re also often badly insulated and acoustically poor because developers cut costs by building in lightweight materials.
And a whole lot of tall towers together leads to poor urban spaces, which would be far better built at between seven and 12 storeys.
The problems are not just practical. We’re living in an age where many architects strive to achieve a design that is amazing, incredible and completely different – (translation: they draw a funny shape and give it to an engineer to work out how to build).
Sometimes it’s better to keep it simple, and make sure that the bedroom has a window and that you can get to the staircase and so on. Simplicity can have its own beauty, particularly when you’re building in timber. Architects also need to think about the construction material and incorporate this in the initial design stage.
In the UK, there are now about 500 buildings made of CLT, including civic spaces, schools and housing complexes. That number is set to explode.
There are currently three factories on the drawing board that will create modular CLT housing in the UK alone, and the largest of these is being designed to produce 5000 homes a year – at a cost of about 20 per cent cheaper than conventional materials.
I’ve also designed the world’s largest (by volume) CLT housing complex, Dalston Lane, in the UK, which is currently under construction. The ten-storey, 121-unit development is made entirely of CLT, from the external, party and core walls, through to the floors and stairs, weighing a fifth of a concrete building of this size, and reducing the number of deliveries during construction by 80 per cent.
Meanwhile, the record for tallest mass timber building – containing engineered timbers other than CLT – is constantly growing and currently sits at around 18 storeys in height.
In Australia, CLT has been successfully used, but is not as common as in the UK. That may change with a recent update in the construction code making it easier to build mid-rise CLT buildings – and with the imminent opening of Australia’s first CLT factory, meaning the material will no longer have to be import_ed.
There are a number of ways governments can help promote the use of timber, including:
Policies promoting a reduction in carbon emissions from buildings – regardless of building material
Timber first policies, which are used in many countries to ensure that timber should be considered as a building material in any public building project before design begins
Commissioning public buildings, including social housing, in engineered timbers to help increase industry knowledge and support local manufacture of CLT
Introduction of a carbon tax
However, in the UK, CLT has taken off without much in the way of government promotion because the business case for it is so compelling, and the environmental benefits a bonus.
Andrew Waugh is a founding director of Waugh Thistleton and can be contacted <a href="https://waughthistleton.com/" target="_blank">here</a>.
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Tall towers are not the answer to environmental challenges: Andrew Waugh

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A family estate at Wahroonga has been sold for $2.6 million.
Located at <a href="https://www.realestate.com.au/sold/property-house-nsw-wahroonga-124603614" target="_blank">7 Wyeena Close</a> the property was offered for the first time in 66 years.
It has a classic mid century modern design influenced by Harry Seidler.
It features a vast family room, lounge and dining around a standstone fireplace as well as an outdoor alfresco entertaining area with a garden at the rear.
There are five bedrooms, three of them having built-in wardrobes, and two bathrooms.
<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/2017/03/08/7%20Wyeena%20Close-2.jpg" alt="">
It is situated in a quiet cul-de-sac address marketed with opportunity to subdivide.
The property was offered through McGrath agents Alex Mintorn and Domenic Maxwell.
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Wahroonga mid-century design estate sold for $2.6 million

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<img src="https://counter.theconversation.edu.au/content/70038/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Sitting at home in the recent heat, your mind may start to wander to that fancy new air conditioner. 
But when it comes to making your house comfortable and sustainable, prevention is better than cure. By prevention we mean simple retrofits that will set you on the path to comfort and sustainability. 
As we spend more than ever on maintaining and improving our homes, we’re also becoming more aware of how their design and use impact on our health and society. Add to this climate change and rising energy costs. 
There are many ways to reduce energy and stay comfortable. Numerous reports suggest it should be possible to reduce your energy use by 50-80 percent using existing and available materials and appliances.
Appliance are the easy bit, and you can find the most efficient appliances using energy star ratings. But before you go out and buy that air conditioner, consider the following principles that can help you decide what you need to create a comfortable home. 
<h2>Prevention better than cure</h2>
For a long time the perfect “room temperature” was considered to be around 21℃. But we now understand that as humans we like temperature variations rather than vanilla indoor environments.
As explored in Lisa Heschong’s book Thermal Delight in Architecture(1979), most of us are not looking for a beige thermal environment after all. So to start with, we need a change in attitude. Bring back the cardigan for winter and the shorts for summer! 
The next point is basic knowledge about your climate zone. For instance, in Melbourne there are more heating days (159) than cooling days (35). So, if you are retrofitting in summer, remember the main annual task is actually letting the sun in in winter.
Even with climate change, Melbourne will still require heating on more days than cooling for decades to come, whereas in Brisbane the priority is keeping out the heat and catching the breeze. 
So Melbourne homes need reversible sunblock. You can use plants with seasonal foliage to shade summer windows, or temporary techniques like temporary sail shades or movable window awnings can work. Plants can also cool outdoor spaces through evapotranspiration, which helps combat the growing “urban heat island” problem and makes the backyard a more pleasant place to be.
Despite some bad press over the years, insulating ceiling, floors and walls where possible remains the best way to address 50-80% of heat gains/losses. In many homes ceiling insulation is cheap and easy to fit and can even be topped up. Insulated homes have also been found to perform better during extreme weather events and are quieter, more comfortable and natural places to be.
In summer sun, black roofs are bad news. Coating surfaces can reflect excess heat. Coating technology has been employed in paint products for your walls and roofs, and is also being developed in landscaping materials for the backyard.
Single-glazed windows are responsible for 10-35% of heat gains/losses in our homes. A range of double-glazed window products is now available, or you can even get a secondary glass pane to place over existing windows. 
Double-glazed (or triple-glazed) homes are more comfortable in extreme weather, and are also quieter and more comfortable. Add drapes and blinds for added temporary use to keep out sun or keep in warmth when needed.
While these preventive passive measures might seem basic, the fact is that (a) technologies, markets and pricing are changing rapidly, so it makes sense to be open to new retrofitting ideas and products; and (b) comfort remains the big-ticket item and it will only get more so as climate change affects all of our homes. Addressing this first will reduce the requirement for other technologies and appliances.
<h2>The principles of retrofitting</h2>
Another area of technology progress is digital data systems to monitor indoor energy services. Energy supplier portals, temperature loggers and smartphone apps are now widely available.
For the more enthusiastic, if you buy a couple of temperature loggers and place one in your main living area and one in your main bedroom you can collect data at intervals as small as one second. You can use this data to identify how your house is performing and how you are using it. More importantly, you can satisfy yourself that the retrofit you’ve just paid for has made a difference.
We’ve only covered a few focus areas in this article. There are many good options we haven’t dealt with. However, we propose three principles for any retrofit project:
<ol>
<li>
prioritise big-ticket items (such as thermal comfort) – what do you need most and what uses the most energy? – to plan and design around your climate zone and home needs
</li>
<li>
prevention is better than cure – focus on passive elements before turning to appliances
</li>
<li>
diversity is better than standardisation – don’t aim for 21℃, aim for controllable comfort, openable windows and adjustable systems room by room. Design in easy adjustment through movable technologies such as fans, curtains, plants and shades.
</li>
</ol>
With all the hard work done, it’s time to sit back and enjoy the new indoor environment, but be aware that, as with our climate, our conventions, routines and expectations of comfort are constantly changing. 
Some argue for evidence of a comfort dividend, where occupants of newly eco-retrofitted homes increase their use of heating or cooling appliances (or both). 
Undoubtedly, as consumption patterns change and social standards shift, we will need to adjust our eco-retrofit priorities. Homes are not just a material work in progress, but are sites of social and cultural life after all.
 
Trivess Moore is research Fellow, RMIT University and can be contacted <a href="https://theconversation.com/profiles/trivess-moore-12580" target="_blank">here</a>.
Andrew Carre is lecturer, RMIT University and can be contacted <a href="https://theconversation.com/profiles/andrew-carre-321635" target="_blank">here</a>.
Ralph Horne is deputy pro vice chancellor, Research &amp; Innovation; Director of UNGC Cities Programme; Professor, RMIT University and can be contacted <a href="https://theconversation.com/profiles/ralph-horne-160543" target="_blank">here</a>. 
All authors for The Conversation.
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Thinking about a sustainable retrofit? Here are three things to consider

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Joel Robinson

Sherpa acquires new site for second Brisbane apartment tower

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.

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.

Jonathan Chancellor

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