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There's a very strong offer on the table for Sark, the Toorak mansion owned by the retailing guru Mark McInnes and wife Lisa Kelly.
The Premier Investments chief executive only listed the 1930 English style home late last month.
And it was bought for $9.25 million only last May.
<a href="https://www.realestate.com.au/property-house-vic-toorak-124583774" target="_blank">Interest from $10 million</a> was quoted by Marshall White agents Marcus Chiminello and Nicole French.
Set on the exclusive Hopetoun Road, the six bedroom, three bathroom home is framed by a deep established garden with pool and spa on its 2023 sqm.
There's also a self-contained two storey cottage.
McInnes still maintains his three apartment North Bondi amalgamation that cost him a combined $7.1 million in 2007.
McInnes was made head of Premier Investments by the Melbourne billionaire Solomon Lew in 2011, having previously run David Jones in Sydney for seven years.
This article first appeared in The Weekend Australian's Mansions Australia section. 
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Strong offer made for Toorak mansion Sark

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A three level Fitzroy warehouse conversion fetched $2.1 million at auction. 
The renovated Brooks Building at <a href="https://www.realestate.com.au/property-house-vic-fitzroy-124507698" target="_blank">51A Little Smith St, Fitzroy</a>, features a loft bedroom with a balcony, offering views of Collingwood and Fitzroy.
There is a light-filled open-plan living area with exposed beams. 
There were four bidders at the Nelson Alexander auction.
It was announced on the market at $1.8 million.
Nelson Alexander Fitzroy agent Luke Sacco said the building conversion was about three decades ago to retain the raw features of its warehouse heritage.
It has the high ceilings, exposed brick, old timber floors.
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On the ground floor, there is a lockup garage and two bedrooms.
There are original warehouse windows with wooden floors and white-painted bricks complement the exposed beams in the lounge and dining area.
The property had pre-auction price expectations of $1.55 million to $1.65 million.
CoreLogic says it last traded in 1978 at $7500.
Last year an undeveloped Fitzroy North warehouse sold at auction.
The 6A/1 Bik Lane offering sold for $1.216 million, just over its $1.1 million reserve set by the artist Polly Courtin who'd been there a decade.
The 120sq m building space boasted ceilings high enough to fit three storeys inside, the Nelson Alexander marketing suggested.
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Fitzroy warehouse conversion sells at $2.1 million 

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<div>After 11 years at RPData and CoreLogic, Graham Mirabito has announced that he is leaving the property data company.</div>
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<div>He will be pursuing his passion for nurturing innovative start-ups and early stage companies.</div>
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<div>The CoreLogic business includes operations in Australia, New Zealand and the United Kingdom, with more than 700 engaged staff delivering insights, analytics, solutions, services and data to more than 40,000 clients.</div>
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<div>"Graham will transition during the next few months," said the US-based CoreLogic President and CEO Anand Nallathambi.</div>
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<div>Anand went on to suggest that Graham had been helpful across the whole company on its expansionary path.</div>
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<div>"Graham has been instrumental in reaching across the entire CoreLogic enterprise to expand collaboration, ideation and synergies, which have contributed to expansion of our platforms, products and solutions across geographies."</div>
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<div>Last July Lisa Claes was announced to be CoreLogic's managing director for Australia and New Zealand taking over from Graham Mirabito, who was set to become the US-based group's international chief executive.</div>
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Graham Mirabito to depart CoreLogic RP Data 

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GUEST OBSERVER
The Reserve Bank hasn’t materially changed inflation forecasts but it has trimmed economic forecasts over the near-term. Economic growth is now seen at 1.5-2.5 percent in June 2017, around one percentage point lower than previous forecasts.
Inflation is expected to hold between 1.5-2.5 percent over the forecast period – below or at the low end of the 2-3 percent target band.
Home loans: The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.4 percent in December after rising by 1.3 percent in November. The value of loans (owner occupier and investment) rose by 0.4 percent in December after rising by 2.2 percent in November.
Owner-occupier loans rose by 1.3 percent but investment loans fell by 1 percent.
What does it all mean?
The latest Monetary Policy statement has given the Reserve Bank the opportunity to flesh out how the economy is tracking. And it seems like the Central Bank is in the glass half-full camp. Policymakers have updated economic growth and inflation forecasts and it is clear that growth remains relatively sound.
Interestingly inflation is expected to remain below or at the low end of the Reserve Bank 2-3 percent target band over the next two years. Essentially the assumption of subdued inflation is despite the potential inflationary impact of higher commodity prices - which suggests a lack of inflation across the rest of the economy.
The assumption of low inflation and stronger economic growth over time suggests that interest rates remain on hold.
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 Importantly given that near-term growth forecasts have been downgraded and now expected to hold between 1.5- 2.5 percent, it is clear the central bank is prepared for a degree of softness across the domestic economy. Interestingly when coupled with subdued inflation it suggests policymakers will keep the door open to provide further stimulus. However it should be made clear that the central bank is essentially holding a neutral policy stance. The economy was essentially lacklustre throughput the majority of 2016 despite unemployment drifting to 3-year lows. However the anecdotal evidence across the economy suggest that activity levels are now lifting.
 In that context the latest housing finance data is encouraging. Not only did the number of overall housing finance commitments lift for the second straight month, but it was driven by owner-occupier loans rather than investment loans. Overall the Reserve Bank is correct in its view that conditions in the housing market are very mixed.
What do the figures show?
Housing finance - number
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<li>The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.4 percent in December after rising by 1.3 percent in November.</li>
<li>Excluding the refinancing of dwellings, the number of loans was up by 2.4 percent.</li>
<li>  The number of new home loans was down by 4.4 per cent on a year ago.</li>
<li>  Loans by owner-occupiers for the construction of homes fell by 0.3 per cent in December.</li>
<li>  Loans to buy newly-erected dwellings rose by 3.2 per cent.</li>
<li>  Loans for the purchase of established dwellings (excluding refinancing) rose by 0.3 per cent.</li>
<li>  The number of refinancing transactions fell by 3.5 per cent.</li>
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Lending across states/territories: NSW (+1.5 percent); Victoria (+0.8 percent); Queensland (-1.3 percent); South Australia (-1.9 percent), Western Australia (-2.7 percent); Tasmania (-2.7 percent); Northern Territory (+0.5 percent); ACT (6.3 percent).
Housing finance - value
The value of new housing commitments (owner occupier and investment) rose by 0.4 percent in December after rising by 2.2 percent in November. Owner-occupier loans rose by 1.3 percent but investment loans fell by 1 percent. The value of loans by owner-occupiers and investors to build new homes fell by 1 percent in December after rising by 5 percent in November. The value of loans to build new homes fell from $3.1 billion to $2.74 billion in December.
Housing finance – other statistics
The proportion of first-time buyers in the home loan market held steady at 13.8 percent in December (long-term average 19.4 percent).
The proportion of fixed rate loans rose from 12.5 percent to 14.6 percent in December – a seven month high. And the average home loan across Australia stood at $375,800 in December, down 0.8 percent in the month but up 0.5 percent on a year ago.
Key take-aways from the Reserve Bank report
 Below are our key “take-aways” from the Reserve Bank’s latest quarterly review.
“Inflation is expected to increase as the effects of some factors that have been weighing on domestic cost pressures dissipate”(p3)</div>
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 “Headline inflation is expected to pick up to 2 per cent in early 2017. The increase in underlying inflation is likely to be gradual. These forecasts are little changed from those published in the November Statement on Monetary Policy” (p3)</div>
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 “Wage growth is forecast to increase only gradually” (p3) “ there has been some evidence from surveys and liaison with firms suggesting that wage growth is unlikely to ease further.” (p3)
  “Overall conditions in the established housing market have strengthened further, although there is significant variation across the country.” (p2)</div>
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   “The global economy entered 2017 with more momentum than earlier expected.” (p1)</div>
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   “Global inflationary pressures are somewhat stronger than they have been for some time,” (p1)</div>
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   “ real GDP looks to have increased in the December quarter. Beyond that, the outlook for the domestic economy is little changed from three months ago and the ongoing adjustment to the end of the mining investment boom is expected to continue.” (p2)   “Real GDP declined in the September quarter, a significantly weaker outcome than was anticipated. Some of the decline can be attributed to disruptions to coal supply and bad weather affecting construction activity.” (p1) 
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<div class="column">“Although investor activity is currently quite strong, at least in Sydney and Melbourne, history shows that sentiment can turn quickly, especially if prices start to fall.” (p62)</div>
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   “The forecast for consumption growth has been adjusted lower and implies a stable saving ratio over the forecast period, rather than declining, as previously assumed.” (p61)</div>
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   “The unemployment rate is expected to edge lower over the forecast period, suggesting only a modest reduction in the degree of spare capacity in the labour market from current levels.” (p58)</div>
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   “ exports of Australian goods and services in aggregate are forecast to continue growing at a solid pace.) (p58)</div>
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   “Given the stronger tone of more recent indicators, consumption growth is expected to be a little stronger than in mid 2016 over the forecast period.” (p57)</div>
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   “GDP growth is forecast to increase to 21⁄2–31⁄2 per cent in late 2017, and to be above potential for most of the forecast period.” (p57)</div>
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   “Some of the factors weighing on reported GDP growth in the September quarter were temporary and have not materially affected the outlook for growth.” (p56)</div>
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 “While considerable uncertainty remains about the economic policies of the new US administration, reductions in personal and corporate taxes are likely.”</div>
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<div class="column">“However, there is a rising risk that more restrictive and protectionist trade and immigration policies under the new administration could harm global growth prospects.” (p55)</div>
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<div class="column">  “A significant portion of the increase in investor credit growth is also likely to reflect the extension of credit to investors settling the payment of newly completed apartments that were purchased off the plan at an earlier time.” (p46) </div>
<div class="column"> “More recently, overall debt funding costs (by major banks) are estimated to have been stable, despite a little upward pressure from the increasing share and cost of long-term debt and deposit funding.” (p43)   “Much of the apartment construction is geographically concentrated, particularly in inner-city Melbourne and Brisbane. This increases the chance that (localised) oversupply could develop, and would exacerbate the effect on local area prices if that were to occur.” (p37)
What is the importance of the economic data?
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market. The Reserve Bank releases its Statement on Monetary Policy each quarter. The Statement is the Reserve Bank’s assessment of economic and financial conditions and also contains the latest inflation views. The Statement is crucial is assessing the short-term outlook for interest rates.
What are the implications for interest rates and investors?
The rebalancing of the domestic economy away from mining investment will remain the trigger for interest rates, especially given that inflation is subdued and expected to remain at the low end of the 2-3 per cent target band. However a number of indicators make rate cuts look less likely than even six months ago – improved Chinese activity levels, a stronger terms of trade, a modest lift in domestic activity and the Reserve Bank view that inflation has bottomed.</div>
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<div class="column">The home finance market is not a driver of interest rates at present. The Reserve Bank won’t be lifting or cutting rates on the lending trends. But with borrowers now looking more carefully at the market, competition across lenders looks likely to heat up. </div>
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<div class="column">Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></div>
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RBA tinkers with growth forecasts: Savanth Sebastian

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GUEST OBSERVER
With the RBA now expecting underlying inflation to move into the middle of the target band by the end of the forecast period, the Bank seems firmly on hold. 
The Bank sees wages growth to be broadly unchanged this year, as some of the factors which have been holding down wages dissipate, after which it picks up gradually over 2018 and 2019. 
 We continue to see the cash rate on hold at 1.5 percent. 
<a href="https://www.propertyobserver.com.au/images/2017/02/10/Screen%20Shot%202017-02-10%20at%201.49.05%20PM.png" target="_blank">Click to enlarge</a>
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DETAILS
The rising profile for underlying inflation is significant. The new forecast profile for underlying inflation shows inflation running between 1½-2½ percent until the end of 2018, after which it ticks up to 2-3 percent by mid-2019. While this is still a solid two years away it suggests that the Bank is more confident that inflation will eventually pick up. The Bank notes that some of the factors that have been holding down inflation, like the falling terms of trade and the decline in mining employment, are dissipating and also cites “evidence from surveys and liaison with firms suggesting that wage growth is unlikely to ease further”. 
There were significant downward revisions to GDP growth in the near term and small downward revisions further out but we would not read too much into these. That is, the downgrade to the near term forecasts reflects base effects from the (temporary) weakness in Q3 GDP, while the small downgrade to the further out forecasts to 2¾-3¾, rather than the previous 3-4, in our view seems a much more achievable estimate. The Bank noted that it has lifted its forecasts for trading partner growth and the terms of trade, but lowered its estimates for consumer spending and employment growth.
Interestingly, the RBA published the unemployment rate forecasts in its table for the first time. It expects the unemployment rate at 5-6 percent over the forecast horizon, broadly similar to the previous forecasts included in its chart.
The RBA seems accepting of the level of the AUD. The currency hardly rated a mention in today’s SoMP which, together with Governor Lowe’s comments last night, suggests that at current levels the RBA sees the dollar as close to fair value.
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
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Rising profile for underlying inflation is significant: ANZ's Felicity Emmett

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GUEST OBSERVER
The RBA has downwardly revised its near term growth forecasts as well as shaving a bit from their medium term projections. Inflation forecasts remain intact and both headline and core inflation are expected to gradually rise from here.
The RBA see the unemployment rate tracking sideways over 2017 at 5 3⁄4 percent.
We have the RBA cash rate on hold at 1.5 percent throughout 2017.
The RBA’s updated forecasts are further evidence that Governor Lowe doesn’t intend to take the cash rate lower. The Bank has essentially looked through the QIII contraction in the economy and has forecast decent growth outcomes over the next two years. In addition, headline inflation is forecast to return to target over 2017. As such, the Bank retains a neutral bias despite there being no forward guidance in today’s Statement on Monetary Policy (SMP).
Looking at the Bank’s through the year forecasts implies that the pace of growth picks up from 2 percent/pa mid-2017 to an above-trend 3 percent by year end. It is expected to remain above trend over the rest of the forecast period (mid-2019).
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LNG production, infrastructure spend and a lift in non-mining investment are expected to push growth higher. The Australian economy would be deemed to be in good health if these outcomes can be achieved. While we think they are possible, they look a best case scenario and the risk is that growth outcomes undershoot the Bank’s forecasts. The Bank has upgraded its global growth forecasts on fiscal stimulus in the US.
Inflation is forecast to gradually rise. But core inflation is not expected to get back to target until 2018. The RBA sees headline inflation rising a little quicker because of price rises in fuel and tobacco. These forecasts look about right to us, but like the growth forecasts, the risks are skewed to the downside.
The Bank retains a temperate assessment on the labour market. Employment growth is forecast to basically run at a level that would see the unemployment rate crab sideways at 5 3⁄4 percent. Normally we would expect the unemployment rate to be falling if growth is running above trend. The GDP and unemployment rate forecasts are reconciled by the big contribution to growth that will come from LNG production which is not labour intensive and also a possible decline in underemployment.
The RBA has confused us a little with their assessment on non-mining business investment. In Lowe’s Statement on Tuesday, the Governor optimistically stated that, “some further pick-up in non-mining business investment is also expected.” The word “further” stood out to us because in our view we are yet to observe a meaningful lift in private non-mining investment. Today the RBA agreed with us by nothing that, “non- mining business investment has been weak for some time, despite the support provided by low interest rates and the earlier depreciation of the exchange rate. The outlook for non-mining business investment is relatively subdued in the near term”. We will await further clarity from Martin Place on this one.
Rate cuts look off the table for now given the strong growth in dwelling prices (largely Sydney and Melbourne) and the Bank’s relatively upbeat assessment of the economic outlook. Despite below target inflation, concerns around the further build-up of household debt and strong dwelling price growth mean that it would take a shift in the activity data for policy easing to come back onto the table. In our view, trends in the labour market are the one to watch. It would take a loss of momentum in job creation for Lowe to entertain the idea of taking the policy rate lower. We see rates on hold in 2017.
The risk, however, sits with easing while ever inflation is below target. 
RBA Key Views
Terms-of-Trade. The terms of trade are expected to decline gradually over 2017, but are expected to remain above their recent trough and be higher than previously forecast.
Unemployment rate. Unemployment rate to basically trend sideways at 53⁄4% in 2017. But it is expected to edge lower over the forecast period.
World growth. Growth forecasts for 2017 and 2018 have been revised a little higher reflecting the recent better data and the prospect of more stimulatory fiscal policy in the US.
Inflation. Inflationary pressures to be benign. Forecasts remained unchanged from November SMP. Inflation to gradually rise. But core inflation not expected to get back to target until 2018. Headline inflation rising a little quicker because of price rises in fuel and tobacco
Wages. Gradual recovery in wage growth from late 2017 assumes that some of the factors that have been weighing on wages will gradually dissipate.
Housing construction. The large amount of work in the pipeline should continue to support a high level of dwelling investment for the foreseeable future.
Dwelling Prices. Conditions in the housing market in Sydney and Melbourne strengthened over the second half of 2016, but they have remained relatively subdued elsewhere. Inflation in rents has eased to multi-decade lows.
Australia’s GDP. The pace of growth picks up from 2%pa mid- 2017 to an above-trend 3% by year end. Its forecasts to remain above trend throughout the rest of the forecast period. .
Fiscal policy. Little change to the forecasts of the consolidated deficit in 2016/17 of around 3 per cent of GDP which implies a modest stimulus to growth.
Oil prices. Higher oil prices should oil are expected to contribute to inflationary pressures in the period ahead. .
CBA’s View
The terms of trade are expected to drift lower over 2017 due to a pullback in commodity prices. But we have seen the low point for the cycle.
The unemployment should grind a little lower over 2017. Some job losses still to come out of the resources sector as the last of the major projects finish. NSW and Vic to have the strongest labour markets.
Global growth to lift a little to around 3 1⁄4 percent in 2017. Advanced economies, like the US &amp; Canada, likely to have above trend growth. China growth to firm at around 6.8 percent. UK economy to slow under Brexit impact and Eurozone growth to be similar to 2016.
Underlying CPI to remain below the RBA target band (2-3 percent) in 2017. Headline inflation to within the target band in H1 2017. Weak wages growth is keeping a lid on domestic inflation while tradables inflation is weak due the AUD holding up in the mid-USD0.70s.
Wages growth remains feeble, even with firmer commodity prices. Wages growth unlikely to materially lift labour market underutilisation falls. Job security concerns remain elevated and are also keeping a lid on wages growth.
Building approvals have peaked for the cycle and will continue to taper off over 2017. There is a significant pipeline of dwellings yet-to- commenced and completed. Commencements to be a robust 210k in 2017, slightly down from 220k in 2016. Alterations and additions spending likely to gradually rise.
Dwelling price growth is expected to moderate over 2017. Varied price growth across different regions to continue. Affordability remains a significant problem for low and middle income households. An increase in supply to stem dwelling price growth.
We expect the economy to grow by 2.4 percent in 2016 and 2.6 percent in 2017. Net exports, public investment and household spending to lift growth. This is partly offset by a drag from business investment.
Fiscal pressures to remain on Federal Budget and reform is slow and elongated. Public capex to lift. S&amp;P have put Australia’s AAA credit rating on negative outlook due to budget deficits.
Oil prices to drift a little lower which supports consumer spending. But because Australia is a net energy exporter, lower oil prices are a negative for terms of trade. 
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Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905">here</a>.
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Rate cuts off the table given strong growth in dwelling prices: Gareth Aird

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Reserve Bank Governor Philip Lowe's address to the A50 Australian Economic Forum Dinner.
I would like to offer you all a very warm welcome to Sydney for the A50 Forum. To those of you who have travelled to our shores from afar, thank you for visiting.
I am confident that you will find your investment in time a worthwhile one. In just a short period, you will hear from the leaders in the worlds of politics, business, the policy institutions and the investment community.
You will find an openness and transparency that is not always seen elsewhere around the world and you will experience a genuine desire to share perspectives.
You also find a country that is prosperous and wealthy; Australians enjoy a standard of living that relatively few people around the world enjoy.
You find a country that has grown consistently for some decades now, despite a pretty volatile global environment. Australia's year-ended growth rate has been in positive territory since 1991.
You find a country that has a strong and stable banking system. We have deep and liquid financial markets. The public here question why banks are so profitable, not why they performed so badly during the global financial crisis.
You find a country that is well placed to benefit from growth in Asia, not only because of our natural resources base, but also because of stronger demand for our food and a wide range of services.
You find a country with a growing and diverse population and one that has a high degree of social cohesion. Our population has recently been growing at around 1½ per cent a year, and around 40 per cent of us were either born overseas or have one parent born overseas. This brings a dynamism that isn't there in countries with stagnant and less diverse populations.
You also find a country with strong public institutions and whose economy is resilient and flexible. We have a demonstrated capacity to address our problems and to adjust to the changing world that we live in. In the past decade, our flexibility has meant that we have been able to maintain economic stability through the biggest investment boom in the resources sector in more than a century, and the subsequent unwinding of that boom.
You also find a country with positive interest rates and a conventional monetary policy framework. The central bank is independent, analytical and pragmatic. Our inflation target is focused on medium-term outcomes. This approach means that we have the flexibility to pursue our price stability objective while taking into account developments in balance sheets in a way that can be difficult to do in more rigid monetary policy frameworks.
So that is Australia. Welcome. There is a lot to like here.
In the spirit of openness and transparency though that I mentioned a moment ago, we are not without our challenges. I will talk about a few of those in a moment.
I first want to say a few words about openness to trade and investment and its role in Australia's prosperity.
Australia is a country that has benefited greatly from the open international trading system. Our ability to sell to the rest of the world goods and services that we can produce really well has boosted our living standards. We also benefit from being able to buy goods produced overseas. And the need to compete with others is one of the things that leads us to strive to do things better.
Australians have also benefited from the relatively free flow of financial capital. Year after year, for more than two centuries now, capital from the rest of the world has helped build our country. If we had had to rely on just our own resources, we would not be enjoying the prosperity that we do today. Our asset base and our productive capacity would be lower, and so too would our standard of living. As investors, Australians have also benefited from being able to diversify our portfolios by buying foreign assets and by building strong businesses overseas.
So, again, that is Australia. We provide a very good illustration of how a medium-sized country that is committed to an open international order, has a strong role for markets and a floating exchange rate, a largely open capital account and a dynamic and innovative financial sector can prosper in today's complex world.
I promised openness and transparency. So now to some of the issues, or challenges, that we face.
The first is to reinvigorate productivity growth. Australia, like many other advanced economies has experienced slower productivity growth over the past decade. In our case, this has been partly due to a large increase in mining investment in response to soaring commodity prices. In recent years though, as the new production made possible by all this investment has come on stream, the productivity figures have improved. This is clearly good news, although underlying productivity growth remains relatively modest.
A number of structural factors are at work here. If we do not address these factors, then we will have to adjust to noticeably slower growth in our average incomes than we have become used to. In some ways, this adjustment has already started and it is proving difficult. On the more positive side, there is no shortage of things that could be done to lift our performance. The challenge is that most of these ideas require difficult political trade-offs.
A related challenge is how best to capitalise on the opportunity that the economic development of the Asian region provides. We have benefited from the surge in commodity prices driven by the rapid industrialisation of China, and from the increased demand for our food products, tourism, education and other services as incomes in Asia have grown.
But it is a competitive world out there, and other countries see these opportunities too. So we need to find ways of building upon our strengths to bring goods and services to growing Asian markets at competitive prices. Lifting our productivity is a good place to start.
A third issue is the task of providing adequate high-quality infrastructure to help our citizens be as productive as they can and enjoy a high quality of life. As I said earlier, our population is growing strongly which is a source of dynamism for our economy. But this growth can put strains on our infrastructure, including on transport infrastructure.
These strains can reduce public support for a growing population. They can also impair our ability to compete and to be as productive as we can be. Good transport infrastructure, for example, opens up opportunities for people and opens markets. It also improves communities. Investment in transportation infrastructure can also play an important role in addressing housing affordability, which is an increasingly important issue.
Infrastructure investment does of course need to be paid for. The positive news here is that there is no shortage of finance for the right projects. The task we face then is to identify the best possible projects, harness the planning capacity of government, design the best deal structures to attract private finance where it makes sense to do so, make sure that the construction process is as efficient as possible and price use appropriately. These are challenging things to do, but they are not beyond our capabilities.
The final issue that I will mention this evening is that of ensuring that our public finances are on the right track. Australia has a good historical record here. Net government debt, as a share of GDP, is still low, although it is higher than it used to be. Our good record has provided us with a form of insurance. It meant that when difficult times did strike last decade, fiscal policy had the capacity to play a stabilising role. We had options that not all other countries enjoyed.
Looking forward, we need to make sure that we continue to have this insurance. We can do this by rebuilding our fiscal buffers. This too is a challenging thing to do, particularly given the additional demands being placed on government. A related complication is that simultaneously we need to make sure that our tax system is internationally competitive.
One example of this complication is in the area of corporate tax, where there is a form of international tax competition going on in an effort to attract foreign investment. Like other countries, we face the challenge of responding to this, while achieving a balance between recurrent spending and fiscal revenue.
So those are some of the issues we face. Of course, there are others too. No doubt you will discuss these over the course of this conference.
I would like now to turn to the near-term outlook for the Australian economy. The Reserve Bank will be releasing updated detailed forecasts tomorrow in our quarterly Statement on Monetary Policy.
For 2017 and 2018, these forecasts will show little change from our earlier forecasts. Over the next couple of years we expect GDP growth to be around the 3 percent mark. In both years it will be boosted by a significant pick-up in LNG production. And the headwinds that we have been experiencing from the unwinding of the biggest mining investment boom in a century will blow themselves out. Indeed, we are already around 90 per cent of the way through the fall from the peak to expected trough in mining investment.
Another headwind we have had over recent years – that is the decline in our terms of trade – has already stopped. Since earlier last year, a rise in global commodity prices has provided a boost to our national income. And the improvement in the global economy since late last year should also help us.
So, with the end of the unwinding of the mining investment boom in sight, the economy is in reasonable shape. Unexpectedly, GDP did fall in the September quarter last year, but this largely reflected a confluence of temporary factors. We expect that in the December quarter, the economy returned to reasonable growth.
Inflation remains low, running at around 1½ per cent in both headline and underlying terms. Importantly, inflation is not expected to fall further. Instead, our central forecast is for underlying inflation to gradually rise over the next couple of years, and for headline inflation to increase a bit more quickly, boosted by increases in oil and tobacco prices.
We continue to pay close attention to the housing market and to household balance sheets. The picture varies widely across the country. Prices for houses in Sydney and Melbourne are rising strongly, but apartment prices in some cities, including Perth and Brisbane have fallen. The population is growing strongly, but there is a large number of additional dwellings to come onto the overall market this year. Growth in rents is weak, but vacancy rates in most markets are not unusually high. And investor demand looks to have strengthened in the closing months of 2016. So it is a complex picture.
One reason for trying to understand this complex picture is that the level of household debt is relatively high. Overall, households are coping reasonably well with this. But there are clearly risks. So it is a positive development that over the past couple of years, banks have tightened their lending standards in some areas. This tightening was partly prompted by the supervisory measures put in place by the prudential regulator, APRA, and the Reserve Bank and APRA continue to work closely together monitoring developments.
Another issue that we are paying close attention to is developments in the labour market. Employment growth slowed over 2016 and the growth that did take place was almost entirely in part-time employment. As is the case with the housing market, conditions vary across the country. Looking forward, the number of job vacancies and job ads suggest that some strengthening in employment growth might be in prospect. Our central forecast though is for the unemployment rate to remain close to its current level for some time to come.
In summary then, the Bank's central scenario is for some pick-up in economic growth and for inflation to move gradually higher. As always, though, there are risks around that outlook. As our record demonstrates, our economy does have a degree of resilience and flexibility that has allowed us to maintain stability during a pretty difficult time in the global economy.
There is no reason that this can't continue. But we do need to continue to build that resilience, while we take advantage of the considerable advantages that we have as a nation.
 
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Households coping reasonably well with debt: RBA’s Philip Lowe 

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Across inner Melbourne, townhouse developments are becoming increasingly common, according to Secret Agent's latest report.
With limited block sizes closer to the city, developers have to constantly negotiate the size of the actual house with the amount of land available.
Because of these varying levels of building density, Secret Agent wanted to find out if there was a ‘sweet spot’ in the ratio between indoor area and land area.
Are we paying more for a certain ratio?
For the purpose of this bulletin, density refers specifically to the ratio between indoor built area to total land area.
See the diagrams below.
Townhouses nearly always span multiple levels, meaning they often have more indoor area than total land area.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.54.59%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%201.54.59%20pm.jpg" alt="">
Our sample consisted of 232 townhouse sales across 29 suburbs in inner Melbourne, all of which took place between January and December 2016.
A hedonic regression model was used and controlled for area (suburb), sale date, number of bedrooms, bathrooms and car spaces, and size of indoor and outdoor habitable space.
Overall, the ratio of indoor area to land area (in m2) did not have a statistically significant impact on townhouses as a continuous variable (i.e. not categorised).
"However, if we group townhouses with similar ratios into different ranges (e.g. 1:1.5 to 1:1.75), we found that an initial increase in the ratio (i.e. more dense development) led to an increase in average sale price, but the trend quickly reverses as the ratio increases further," the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.55.07%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%201.55.07%20pm.jpg" alt="">
The only ratio that had any significant positive impact on expected sale price was a 1:1 ratio, up to a 1:1.27 ratio.
On average, townhouses in this category had a land area of 95m2 and an indoor square metre rate of 109m2.
Additionally, these properties had outdoor space (land area not occupied by the building) of 34m2, which is about 36% of the total land, however this was not a prerequesite for the 'sweet spot'.
It is expected that townhouses in the 1:1 to 1:1.27 range can sell for up to 15.15 percent more than denser developments with twice as much indoor area as the land size.
While there is always a demand for bigger houses, it's important to remember that there is such a thing as too much space.
Property Observer found these townhouses currently on the market in Melbourne.
A two bedroom townhouse in Richmond, <a href="https://www.realestate.com.au/property-townhouse-vic-richmond-124572226" target="_blank">11/22 Buckingham Street</a>, with roof top views (pictured above) is currently on the market for between $720,000 - $780,000.
In Malvern East, the three level three bedroom townhome (below) at <a href="https://www.realestate.com.au/property-townhouse-vic-malvern+east-124689830" target="_blank">1039E Dandenong Road Malvern East</a> is up for auction March 11 through Krish Bundhoo and Courtney Matthews of Ray White Mount Waverley.
<img src="https://www.urban.com.au/images/2017/02/10/Screen%20Shot%202017-02-10%20at%209.28.32%20AM.png" alt="">
 <img src="https://www.urban.com.au/images/2017/02/10/Screen%20Shot%202017-02-10%20at%209.34.26%20AM.png" alt="" style="font-size: 12.16px;">
 A four bedroom townhouse in Doncaster East, <a href="https://www.realestate.com.au/property-townhouse-vic-doncaster+east-124553714" target="_blank">3/27 Paula Crescent</a>, (above) is on the market with expectations of between $1.05m - $1.15m.
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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The ideal density of a townhouse: Secret Agent

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Chloe Brookman, one half of children's nursery emporium Olli Ella, and her husband Charlie Wheeler are looking to flip their Balmain park-side home.
The couple paid $1.4 million for the Federation semi in 2015. It took two years to find the dilapidated doer-upper.  
Cobden &amp; Hayson agent Matthew Hayson is taking the <a href="https://www.realestate.com.au/property-house-nsw-balmain-124602582" target="_blank">three bedroom Elliott Street Federation-era home</a> to auction February 25. Around $1.85 million is tipped.
They turned it into an informal and relaxed family living space while maintaining some of its original features.
Spot the <a href="https://www.realestate.com.au/sold/property-house-nsw-balmain-120221625" target="_blank">difference</a>.
After tearing up the old carpets to show off the original oak flooring, French doors now lead out to a landscaped north-facing garden with custom seating.
Chloe, Charlie and their three kids moved to Australia four years ago after Chloe and her Clerkenwell sister Olivia set up Olli Ella when they were both living in London.
The cool children's nursery store has spread globally as Chloe headed up the company's new base in Australia.
This article first appeared in the Sunday Telegraph.
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Olli Ella's Chloe Brookman's stylish refurb to Balmain Federation

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GUEST OBSERVER
An overwhelming majority of Australians have made at least one financial decision that they regret, new data has revealed.
According to new research from Mortgage Choice, 68 percent of Australians have made a ‘regretful’ financial decision.
Interestingly, of those who admitted to regretting at least one of their financial decisions, almost one third said they made the decision off the back of information they gathered from friends, family members or strangers.
Meanwhile, less than 5 percent of Australians said they regretted a decision that they made in connection with advice they had received from a finance professional, such a mortgage broker or financial adviser.
In other words, those who sought professional advice were much less likely to regret a financial choice than those who didn’t. 
While the future is unpredictable, Australians who do their due diligence and speak to a professional are unlikely to go wrong financially, regardless of what asset class they are investing in.
Those who don’t do their due diligence can often be easily swayed by what they hear or even how a question is posed.
Behavioural economist Dr Lionel Page agreed and said studies show people will react to a particular choice in different ways depending on how it is presented.
We conducted a field study and asked Australians the same question in two different ways.
As anticipated, people reacted to the choice in different ways, depending on how it was presented to them.
When it comes to making good financial decisions, it is important to look at your options from all angles. That way, you can be truly content with your choice.
The field study shows why it is so important for Australians to seek out professional advice.
All financial decisions should be based on knowledge, research, and due diligence. Australians should take the time to investigate all of their options and speak to a professional before making any decisions.
If you take the time to speak to a professional who will help you research all of your options, you will be less likely to regret the financial decision down the track.
To watch the full field study video, <a href="https://www.vision6.com.au/ch/48415/5mtsn/2296824/a0aa4zkw7-1" target="_blank">click here</a>.
John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au/" target="_blank">Mortgage Choice</a>.
 
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Majority of Aussies have at least one financial regret: John Flavell

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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