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The former CEO of Channel Nine David Gyngell has teamed up again with his mate, John "Strop" Cornell to expand their Brunswick Heads holdings.
They've spent $3 million on the 1,012 sqm parcel in the northern NSW tourist town. It currently comprises two storey four units in a fibro dwelling with a huge backyard.
The site, which sold through Siwicki Real Estate agent Dave Bosselmann, sits across the laneway from the Hotel Brunswick, another of the duo's holdings.
Gyngell spent $5.25 million in 2013 to buy a half share of Cornell's Hotel Brunswick, a pub known for its classic Australian 1940s architecture with its courtyard beergarden shaded by giant poinciana trees. 
The coastal village pub was built by Jim Cavill overlooking Simpsons Creek and the Brunswick River. Locals reckon Brunswick Heads is what Byron Bay was 20 years ago.
The freehold of the pub was bought by Cornell in 1990 from Austotel for $2.1 million. 
Gyngell, who has a newly completed retreat in the Byron Bay hinterland, has been a family friend of the entreprenurial former comedian John Cornell and his wife, Delvene Delaney.
It was Gyngell's father Bruce who helped found the Nine network in 1956.
David walked away from one of the biggest jobs in the entertainment industry.
Gyngell and wife, journalist Leila McKinnon, have also just spent $1,675,000 on a three bedroom art deco apartment at Bondi Beach.
Gyngell outbid five others for the ground floor apartment, coming in with his first bid at $1.6 million after an initial vendor bid of $1.25 million kicked off proceedings.
This article first appeared in the Sunday Telegraph.
 
 
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jchancellor-FAypfDUnLy

David Gyngell, 'Strop' Cornell buy in NSW's Brunswick Heads

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SPONSORED POST
In the past 18 months, there has been a continual compression of capitalisation rates, or cap rates, across Australia’s commercial property markets.
So what exactly does this tell us about where the market is now and where we are headed in the next couple of years?
Let’s start with what a cap rate is. It is the ratio of net operating income of a property to its market value – the percentage return an investor would get if they purchased the property for cash.
We spoke with Dr David Higgins, Associate Professor, Property Investment at RMIT University, and asked him what drives cap compression.
“To understand the dynamics you have to think of the influences in three parts. First, there is the demand by tenants for a certain property type and location, a factor I call space demand. Then we have to consider the supply of property available for lease and how much new stock is coming on to the market,” he says.
“Finally, and most importantly, we have to factor in the dynamics of the investment and debt markets, because property’s return on investment must be seen relative to other investment avenues, particularly cash and term deposits.”
Cap rates can be a useful guide to market expectations of what will happen to values in the future but they can be bumped around by changes in investor sentiment and alternate markets.
“A-REITS returned to the market after the shock of the GFC,” Higgins told us. “And when you look at institutions like Stockland and Dexus, you see a new breed of management. They used to be drawn to idea that big is beautiful, but what I’m seeing from the new group is that they are more selective and have tightened their risk management.
“Vacancy rates are creeping up but this is not reflected in market yields.”
The reason why is primarily because, with the official cash rate at 2.5%, investors can invest in property and borrow at a rate close to inflation to buy assets with a history of stability.
James Quigley, National Director of Capital Markets at Colliers International, told us that it is this weight of money returning to market which is driving values.
“In the 2007 peak before the GFC hit, a quality asset in the Sydney market would be yielding say at 7% but the cost of debt was around 8%. When you look at the equation now, a well-rated investor’s cost of debt could be as low as 4.5% – 5%, which means their asset is cash flow positive from day one,” Quigley says.
“What’s been driving compression is capital looking for yield. We’re seeing demand from a range of onshore investors, syndicates filled with ‘mum and dad’ investors, super funds and A-REITS.
“But we also see a lot of offshore money as well, particularly global sovereign wealth funds and private investors from Asia.
“The office lease market is still soft, with incentives up for assets with shorter WALEs (weighted average lease expiries) but there is good investor demand for quality modern offices and industrial assets like distribution centres with long-term mandates to single leaseholders.
“The change we’ve seen in recent times is offshore investors looking at office buildings with shorter WALEs with a view to converting them to residential.”
And what is likely if interest rates, as predicted by some analysts, start to rise over the next two years?
“Obviously if we see upwards movement that holds the potential to change the current equation, but right at the moment, it is the sheer weight of money which is driving the market,” Quigley says.
For more information, <a href="https://www.realcommercial.com.au" target="_blank">click here</a>.
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Cap rate compression & what it tells us about the market: realcommercial.com.au

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The Chinese backed Brisbane residential developer, R&amp;F Mega Property says is is not insolvent and there would be no interruption to their flagship development, Brisbane One.
According to its last update, an interim report to the Hong Kong exchange on August 31, contracted sales at the $400m Brisbane One reached 353.1 million yuan ($67m).
But liquidators have been appointed to an Australian arm of multi-billion-dollar Chinese developer R&amp;F Properties.
An order to wind up R&amp;F Mega Property, an Australian subsidiary of the Hong Kong-listed and Guangzhou-based R&amp;F Properties, was issued in the Victorian Supreme Court on February 1, The Australian has revealed.
Associate Justice John Efthim ordered R&amp;F Mega Property be wound up in insolvency and appointed Deloitte partner Robert Woods as liquidator.
It appears R&amp;F Mega Property did not attend with its deputy general manager Amy Zhang confirming in a statement that they did not receive the application to wind up the company.
“It is alleged that R&amp;F Mega Property was served documents by representatives of a creditor,” she said.
“However, R&amp;F Mega Property has no records of having received those documents and accordingly did not respond to the application.
“R&amp;F Mega Property immediately started to communicate with the liquidator to proactively resolve this matter.
“An application will shortly be submitted to the court to terminate the liquidation.”
R&amp;F Properties, with a market capitalisation of $5.7bn, has six subsidiaries in Australia.
R&amp;F Mega Realty owns a 3300sq m site in Brisbane’s Kangaroo Point where a development application for an Elenberg Fraser-designed tower has approval.
R&amp;F Mega Estate also owns a site on the southern flank of the Brisbane River now the subject of a dispute in Queensland’s Planning and Environment Court.
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Brisbane One development company in liquidation paperwork mire 

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<img src="https://counter.theconversation.edu.au/content/72354/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
For all the talk of a housing affordability crisis across Australia, having unaffordable housing isn’t necessarily bad for people.
This is perhaps a dangerous statement to make, but housing cost stresses and other problems – when experienced in isolation – may be tolerable. Difficulties usually emerge not from one problem but from an accumulation of problems.
Housing affordability alone may have limited impact on people if they are able to adjust the household budget or their rental or mortgage costs. But if a household has an accumulation of problems (for example, unaffordable housing, plus insecure tenure, plus unemployment), that greatly reduces their capacity to adjust or respond effectively.
Acknowledging the difference between separate problems and an accumulation of problems is more important than you’d think. If we don’t, we underplay the impact of multiple problems on people, incorrectly identify who most needs assistance and probably misdirect our attempts to help.
Generations of Australians have enjoyed very high housing standards compared to most other nations. For the last couple of decades, though, cracks have appeared (and are widening) in the Great Australian Dream.
Australia now has some of the most unaffordable housing in the world. The problems of housing quality and insecurity in the private rental sector are increasing.
And the public housing safely net is now so small it cannot catch all of the people who need it.
Researchers, governments and Australia as a society are concerned and heavily invested in understanding and responding to housing-related problems. But perhaps we are too “problem-focused”.
We often seek to understand and solve housing affordability, or rental insecurity, or homelessness, or even more broadly, employment or problems associated with disability. But we tend to look at each aspect separately.
In doing so, we overlook the fact that many housing-related problems are experienced in combination – usually by the same people.
Teasing out patterns of problems
What if we were to think of people with multiple problems, instead of the separate problems that multiple people have?
<a href="https://www.propertyobserver.com.au/images/2017/02/15/image-20170201-22560-14ebw5a.png" target="_blank"> Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/15/image-20170201-22560-14ebw5a.png" alt="" width="1117" height="727">
In the current edition of Cities, we model how people’s problems accumulate. Using data from the Household Income and Labour Dynamics in Australia (HILDA) dataset, we look at more than 17,000 adult Australians in unaffordable housing. We define people as having unaffordable housing if they have low to moderate incomes and spend more than 30% of their household income on housing costs.
Our research set out to test the degree to which these people experience multiple housing and related problems. In this experiment we focus on six problems: affordability, locational advantage, security, welfare, employment and disability.
This simple analysis far from captures the full breadth of housing-related problems that individuals face. Even so, it reveals enough about people’s accumulation of housing problems in Australia to challenge our current thinking.
Our analysis shows us that only a relatively small proportion of people (around 10%) have an accumulation of these housing-related vulnerabilities. But simply identifying who has multiple problems doesn’t necessarily indicate the package of assistance they might need.
When we examine the collection of accumulated problems among the 10%, we see few clear patterns of shared problems. Even in this small analysis, there are 40 distinct combinations of problems.
The largest group sharing a pattern of problems represents only 12% of the 10%. Remember that we are only looking at a limited list of six problems here. It would almost certainly be much more complex in the real world.
The findings allow us to reflect on how assistance might shift if focused on people with an accumulation of problems. Using the example of housing affordability, we might seek to address it for every person in the whole population of 17,000 classified as having unaffordable housing.
However, this research shows that more than half of these people (60 percent) do not have any other problems.
How does this affect policy?
Perhaps our concern for housing affordability should be disproportionately focused on the small group who have an accumulation of multiple problems.
What this research leaves us with is a call for a different way to think about and respond to housing-related problems. It suggests we should look beyond separate problems – such as housing affordability – and focus more attention on the people with an accumulation of multiple problems.
The substantial variation in combinations of housing problems also suggests that “individualised” responses may be much more effective than generic packages of problem-focused assistance.
To some extent, the suggestion that we should be thinking about people’s accumulation of vulnerabilities and problems is not new.
Policy thinking appears to be heading in this direction anyway. Australia is well down the path of exploring individualised welfare, with approaches and packages like Consumer Directed Care and the NDIS (the intentions of which were well discussed in recent work).
Perhaps the way we think about housing affordability just needs to catch up.
Emma Baker is associate professor, School of Architecture and Built Environment, University of Adelaide and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/emma-baker-172081" target="_blank">here</a>.
 
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Housing affordability problems might not be all bad

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GUEST OBSERVER
The high vacancy rate for older commercial buildings in Perth is a concern for the broader community and the Property Council of Australia is calling on the major parties contesting the state election to take a bigger interest in policy solutions to problem.
The Perth CBD has the highest vacancy rate in the country at 22.5 percent and much of the vacancy is in older buildings known as ‘B grade’ stock, which makes up almost a third of the total stock of commercial offices in the CBD. 
The vacancy rate for B grade buildings is over 30 percent.
The risk in Perth is that commercial tenants will continue to gravitate to the newer higher grade office towers leaving the older buildings vacant, creating ‘dark zones’ in the CBD.
A two-tier office market is emerging in the CBD, including prime and A grade buildings in stronger demand by tenants and older buildings. 
We are already seeing vacancy rates in prime buildings decline however vacancies in older buildings may not have peaked yet.
In a bid to tackle, the rising Perth vacancy rates, the Property Council is calling on the major parties contesting the State election in March to commit to working alongside industry and the City of Perth to enable building upgrade agreements in the CBD.
Building upgrade finance is a voluntary mechanism to assist building owners to upgrade commercial buildings to improve, water, energy, and environmental efficiency by retrofitting existing commercial buildings.
Under the Building Upgrade Finance mechanism, a local council can voluntarily enter into a building upgrade agreement with a building owner and a financier.
Under a building upgrade agreement the building owner agrees to undertake upgrade works in respect of their building. The financier agrees to advance money to the building owner for funding the upgrade works, and the council agrees to levy a building upgrade charge against the land on which the building is situated. 
The initiative has been successfully adopted in Victoria, NSW and SA. However, it will require a change of the Local Government Act to enable building upgrade agreements to commence in WA.
Building Upgrade Agreements are a simple and effective mechanism to overcome the high office vacancy rate in the CBD and prevent the spread of dark zones
Lino Iacomella is executive directory, Property Council WA, and can be contacted <a href="https://www.propertycouncil.com.au/Web/About_Us/Contact_us/WA/Web/About_us/ContactUs/WA.aspx?hkey=4fc8901b-1527-43f8-88ed-c466ebcc6220" target="_blank">here</a>.
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Policy solutions needed to counter CBD dark zones

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The Melbourne suburb of Ivanhoe East is set for two sizeable land parcel sales with one 15,000sqm site having been 'collected' for 26 years.
On parcel of land, 14 Ivanhoe East, bordered by The Boulevard, Wamba Road, Wilfred Road and Cedric Street, is expected to sell at around $30 million.
According to title records they are owned by Stuart Morris, QC, and his wife Jennifer who purchased the land over 26 years.
In 2006 he attempted to develop eight blocks into a $21.5 million 92 unit retirement village which was met with a backlash from residents.
Colliers International’s Jeremy Gruzewski and Ted Dwyer have the listing.
Mr Gruzewski said the land parcel is rare, not only for its substantial size, but also because it is not affected by registered single-dwelling covenants, significant landscape overlays, or heritage controls, which affect much of this highly regarded suburb.
“With so much of Ivanhoe East under these planning controls, this supersite is an exception and represents a significant parcel of land ripe for redevelopment,” he said.
“With a median house price of $1.7million, Ivanhoe East is regarded as one of Melbourne’s finest suburbs and any redevelopment is bound to achieve premium prices.
“The four street frontages and parkside locale, just moments from East Ivanhoe village, make this a tantalising prospect for high-end apartment, townhouse or even retirement living.
“It is hard to put a value or a price on such a rare and unique offering that is probably never to be repeated.”
 
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Land collection listed in Melbourne's Ivanhoe East

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Sydney's property market needs more listings to lessen the pressure that has contributed to the recent rampant price growth.  CoreLogic's Hedonic Home Value Index calculates since the growth cycle commenced in mid-2012 that Sydney dwelling values have increased by a cumulative 70 percent.
We're only at the early stages of 2017 but there are tentative signs the listings drought may be breaking.
Total Sydney listings sat at around 18,000 at the end of January - six percent down on the same time last year. But a week on it is 19,200 which is 11 percent lower.
New listings were up nine percent with 7,000 hitting the market over January, but now at 7700 over the past 28 days, which is just up one percent on the same time last year.
Any sustained higher listing numbers ought show up in an easing in the auction clearance rate, but seemingly not quite yet.
The opening 78 percent auction weekend was up on last year's 75 percent, according to CoreLogic. And last weekend it jumped into the mid-80s.
Even Sydney's annualised price growth has edged up in the past five week, currently sitting at 16.3 percent, up on the 15.5 percent growth during 2016.
That's come because investors have returned big time, competing with home buyers. 
The real estate agency, McGrath Estate Agents, has reported little change in their February numbers in Sydney as the Autumn auction season approaches.
McGrath has 349 scheduled auctions compared to 344 in 2016 with the eastern suburbs the busiest region with 66. 
McGrath’s chief auctioneer, Scott Kennedy-Green said these low volumes have already translated into competitive bidding at auctions. 
Last weekend McGrath sold 91 percent of their 23 properties with all seven sold in the $1.5 million to $3 million bracket.
Kennedy-Green indicated that February 25 will be his busiest auction Saturday for February with 146 auctions. 
McGrath Ltd's chairman, Cass O'Connor blames rocketing real estate prices having created "an environment in which vendors are reticent to sell, fearing they will not get back into the market."
She said the trend really set in this time last year.
"It was as though every vendor woke up in the New Year and made a resolution not to sell," she told shareholders last November. 
Taking a more positive marco view, the LJ Hooker network chairman Janusz Hooker noted while listings were low, it's not as bad as many people were saying. 
As a percentage of total stock it is at historic lows, he noted with under three per cent of total stock turning over. 
But Hooker points out the industry is growing at 200,000 homes per annum.
But the LJ Hooker boss acknowledges Sydney has too many buyers and too few listings. 
Buyers still have some leverage in the current market, with lingering listings from last year and longer selling times leading to higher rates of required vendor discounting.  
Ofcourse some of 2016's frustrated would-be buyers have abandoned their search. Many will now renovate rather than move, as it is more affordable than ever before. 
But the new year always brings a new pool of buyers. Good luck!
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Sydney needs listings for balanced market

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In March this year, apartment design standards will be implemented into the Victorian planning system, according to Secret Agent’s latest report.
Apartment design standards will ensure all future apartments in Victoria are desirable, safe, healthy and sustainable.
New developments in Victoria will only be permitted a planning permit if they meet these standards.
A 2015 community survey found that the top concerns of apartment amenity were “access to daylight, functional space, and natural ventilation”, as well as noise and energy efficiency. (DELWP, 2)
Standards have been made for 16 elements of design: Building setback, functional layout, room depth, windows, storage, noise impacts, energy efficiency, solar access to communal open space, natural ventilation, private open space, communal open space, landscaping, accessibility, building entry and circulation, waste and recycling, integrated water and storm water management.
It is logical to think that better design standards should produce apartments of a higher quality.
This in turn should increase the sale price of these apartments.
Secret Agent was engaged to determine the price premium of better designed apartments.
That is, how much more are consumers willing to pay for an A grade apartment compared to a B grade and C grade apartment?
In order to do this, four apartment factors which influence sale price were selected.
These were sunlight, natural ventilation, open views and outdoor space.
A sample of apartment sales in inner Melbourne was then collected.
Each apartment in the sample was rated as an A, B or C grade apartment depending on how many factors they had present.
• A grade apartments had all 4 factors.
• B grade apartments had 2 or 3 factors present.
• C grade apartments had 0 or 1 factor present.
Hedonic regression techniques were used to determine the price premium of A grade apartments over B grade and C grade.
This was done for two different samples which distinguished between sales in large apartment buildings (Sample 1) and those in buildings with 5 levels or less (Sample 2).
Sample 1 consisted of 886 sales and sample 2 consisted of 510 apartment sales. Factors such as date of sale, apartment size and location were all accounted for as part of the regression.
Table 1 shows the average price impact of an A grade and a C grade rating, relative to a B grade apartment in a building of over 5 levels.
In other words, on average an A grade apartment is expected to sell for $50,837 more than a B grade apartment,
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.21.29%20pm.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/2017/06/Screen%20Shot%202017-02-06%20at%201.21.29%20pm.jpg" alt="">
while a C Grade apartment is expected to sell for $49980 less than a B grade apartment.
This means that the average price difference between an apartment with a 4/4 rating and an apartment with a rating of 1/4 or lower is $100,817.
The results are similar for smaller buildings as shown in Table 2.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.21.35%20pm.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/2017/06/Screen%20Shot%202017-02-06%20at%201.21.35%20pm.jpg" alt="">
Compared to B Grade apartments, an apartment in the sample is expected to sell for $63,728 more if it is A grade, and $39,794 less if it is C grade.
The difference between an apartment that has all four factors and one than has one factor or less is $103,522.
In smaller buildings, the positive impact of an A grade rating was of greater magnitude than the negative impact of a C grade rating.
The results also showed that if an apartment is cross ventilated, has good natural light, has an outdoor area and open views, then it is likely to sell for 21.3% more if in a small building and 17.3% more if in a larger building.
This demonstrates that better design standards will have a significant impact on apartment prices once they come in to effect.
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The price benefits of better designed apartments

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Caulfield Grammar is understood to have outbid residential developers to secure an East Malvern’s redevelopment site.
The school reportedly paid $12.6 million for the 2230 square metre site opposite Central Park.
Its two vendors secured a windfall $5650 a square metre.
The two houses at 385-387 Wattletree Road, next to the historic Commonwealth Bank building, were put to market in a joint offering late last year.
They are around the corner from Caulfield Grammar’s junior school, the heritage-listed Valentine’s mansion on Willoby Avenue.
Colliers International negotiated the deal claiming the price reflected more than a 100 per cent uplift in the values they would have achieved compared with selling individually.
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Caulfield Grammar set to expand junior school after East Malvern purchase 

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Flemington is the most affordable suburb in Melbourne, according to Secret Agent’s latest report.
Tables 3 to 6 list the most and least affordable suburbs for both terraces and townhouses, in terms of average prices as well as average price per square metre of internal space.
If a suburb had less than 5 sales it was excluded from the data pool.
Even the most affordable suburbs for terraces in inner Melbourne start at an average of over $1 million ($300,000 more than townhouses) as shown in Table 3.
<a href="https://www.propertyobserver.com.au/images/2017/06/Table%203.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/2017/06/Table%203.jpg" alt="">
Buyers would be hard pressed to find terraces anywhere near the CBD for less than $10,000/m2 of internal space.
Brunswick and Brunswick East's affordable terraces have an average price per square metre of $10,400/m2 and $11,400/m2 respectively.
Both of these suburbs also make the list of top 5 most affordable townhouses.
Collingwood terraces, which had the lowest average prices in our sampled region over the last year, sold for $11,800/m2 on average.
Terraces in Flemington were more affordable than terraces in any other inner suburb in our study.
The most expensive terraces in inner Melbourne sold for nearly twice as much on average as the most expensive townhouses, and are valued about $5,000/m2 more.
Table 4 shows the least affordable terraces and is dominated by Middle Park and Albert Park, which are highest per square metre and only beaten by Parkville in terms of average sale price.
<a href="https://www.propertyobserver.com.au/images/2017/06/Table%204.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/2017/06/Table%204.jpg" alt="">
Parkville terrace prices fell just short of making the list at $14,500/m2, edged out by its neighbour Carlton North ($14,800/m2).
"Despite being close on a price per square metre basis, if we only looked at average prices we would get a completely different impression, with average prices in Carlton North at $1.58 million, well below Parkville’s 2016 sample average of $2.44 million," the report stated.
Kensington in the inner West, as well as Brunswick, Brunswick East and Northcote in the inner North are in the top 5 most affordable suburbs for townhouses, both in terms of average prices and average price per square metre, shown in Table 5.
<a href="https://www.propertyobserver.com.au/images/2017/06/Table%205.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/2017/06/Table%205.jpg" alt="">
This comes at no real surprise to people who have been following inner Melbourne’s property market trends.
The same can be said about the lack of any affordable suburbs from the inner South on the list.
Abbotsford is the only suburb from the inner East that made the top 5 in 2016, coming in 4th when ranked by average price.
While not in the top 5 most affordable by price per square metre, the suburb is still relatively affordable at just over $8,000/m2.
The most deceptive suburb is West Melbourne, where townhouses in our sample were sold for nearly $1.1 million on average over the past year, which is well above the other suburbs in the top 5 list.
However, at only $7,100/m2, West Melbourne was the number one most affordable inner suburb per square metre of internal space.
Table 6 shows the least affordable suburbs for townhouses in 2016.
Only suburbs from the inner South and East appear in the top 5 when looking at average prices.
South Yarra is the most expensive suburb by both metrics, with Prahran, Port Melbourne and Richmond also making both lists.
<a href="https://www.propertyobserver.com.au/images/2017/06/Table%206.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/2017/06/Table%206.jpg" alt="">
Collingwood nearly made the most affordable list with an average townhouse sale price of only $870,000 in 2016.
However, when accounting for size, buyers of Collingwood townhouses spent nearly $9,300/m2 on average, the 5th highest of all suburbs we sampled.
While Hawthorn only made the top 5 when comparing average prices, at an average of $9,088/m2 it is also still relatively expensive on a price per square metre basis.
Property Observer found this three bedroom townhouse, <a href="https://www.realestate.com.au/property-apartment-vic-flemington-124556042" target="_blank">4/3 Tunbridge Street Flemington</a> (pictured above), on the market for between $660,000-$720,000.
 A two bedroom townhouse, <a href="https://www.realestate.com.au/property-townhouse-vic-maribyrnong-122451902" target="_blank">1 Gatehouse Place Maribyrnong</a> (below), is going o auction March 4.
<img src="https://www.urban.com.au/images/2017/02/13/Screen%20Shot%202017-02-13%20at%2010.01.54%20AM.png" alt="">
The three bedroom townhouse at <a href="https://www.realestate.com.au/property-townhouse-vic-ascot+vale-124554422" target="_blank" style="font-size: 12.16px;">36 Archer Avenue Ascot Vale is on the market for between $830,000 and $870,000.</a>
<img src="https://www.urban.com.au/images/2017/02/13/Screen%20Shot%202017-02-13%20at%2010.04.19%20AM.png" alt="" width="555" height="323" style="font-size: 12.16px;">
For more information from Secret Agent, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Flemington offers Melbourne's most affordable terraces: Secret Agent

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

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

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

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

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

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

Jonathan Chancellor

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