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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

Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<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.

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]

Jonathan Chancellor

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