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GUEST OBSERVER
Q3/2016 registered US$2.26 billion worth of investment transactions, representing a 15.0 percent increase over Q3/2015 (US$1.96 billion).
The number of transactions was also significantly lower.
Forty transactions were closed this quarter, while 46 transactions were recorded over the same quarter the previous year. The average transaction price was US$56.4 million, which was signi cantly higher than the US$42.6 million in Q3 a year ago. Japan commanded the largest share of total sales volume in the region this quarter, and all 13 transacted assets were acquired by Japanese investors. We expect growth of transaction volumes for the region for full-year 2016 to be subdued, mainly due to the lack of opportunities in core markets.
Eastern Asia
Japan continued to be one of the most active markets in APAC. Despite a quarter-to-quarter decline in sales volume of 32.1 percent, the total volume of JPY88.2 billion (US$865.5 million) was still the highest in the region. The hotel investment market has seen a series of large transactions in 2016, even as other sectors of Japan’s real estate market have retrenched.
Japan’s explosive growth in inbound tourism and its chronic lack of room supply have created a real interest in the hotel market, and players are leaping to take advantage. The Real Estate Investor Survey by the Japan Real Estate Institute (JREI) reports that expected cap rates on economy hotels in prime Tokyo locations have compressed from 5.4% to 5.0% since 1H/2015.
Hotel transactions frequently occur outside the nation’s capital, however – only seven transactions occurred in Tokyo in 1H/2016, according to Real Capital Analytics – resulting in a wide range of cap rates. We assume actual transaction cap rates to be much lower than JREI’s surveyed gure of 5.0 percent, because winning bidders tend to expect aggressive increases in ADR.
The largest buyer of the quarter was Japan Hotel REIT Investment Corporation (JHR) with the purchase of three hotels – Hotel Vista Grande Osaka, Hilton Nagoya and Hotel Ascent Fukuoka. The total sale was worth approximately JPY47.1 billion. Hotel Vista Grand Osaka will be rebranded into Holiday Inn Osaka Namba by the end of 2016, according to a JHR press release. Hotel Vista Grande Osaka was the largest transaction in Japan, sold by GK Apollo for JPY27.0 billion (US$267.3 million), or JPY85.9 million (US$851,275) per key. This was followed by Hilton Nagoya which was acquired at JPY15.2 billion (US$150.9 million), or JPY33.1 million (US$328,207) per key.
In June, Japan's Land, Infrastructure, Transport and Tourism Ministry announced a plan to relax the oor area ratio of buildings by 1.5 times, or up to an additional 300 percent for hotel constructions. The new standards are expected to substantially increase accommodation capacity following Japan`s continuous increase in foreign visitors and the upcoming 2020 Tokyo Olympics. Although based on this relaxed regulation, each local government is required to decide on their regional floor area ratios under the City Planning Law, and therefore the price of the land for hotel usage in major cities is expected to increase.
In China, sellers’ expectations remained high, and the continued lack of debt nancing for hotel projects has led major Chinese hotel investors to continue to look overseas for either tourism-related investments or refocus into investing in commercial assets or companies in other industries with high growth potential.
Chinese investors’ interest in Australian assets was evident in this quarter, concluding ve transactions there with a total of A$474.7 million (US$352.8 million), representing 15.6% of total volume in the quarter.
Hong Kong’s rst transaction of 2016 was closed this quarter, with the sale of A3 Hotel in Temple Street at HK$108 million (US$13.9 million), or HK$2.4 million (US$309,400) per key.
Southeast Asia
There were only two transactions in Southeast Asia this quarter. The Renaissance Kuala Lumpur Hotel changed hands between IGB and S. Alam Group for MYR765 million (US$187.4 million), or MYR840,659 (US$205,890) per key.
There was no transaction in the same period the previous year. Malaysia has suffered from the sharp fall in international tourist arrivals, particularly those from China, since the airline disasters of two years ago. This quarter, however, the Malaysian Inbound Tourism Association reported that the Chinese source market had shown some signs of recovery. According to Tourism Malaysia, international visitor numbers for 1H/2016 grew 3.7 percent, with remarkable increases from China and Thailand at 32.1 percent each and Laos at 26.8 percent. 
The Singapore hotel investment market remained inactive this quarter, due mainly to the lack of suitably priced assets and the tightened control of room stock by the Urban Redevelopment Authority. In Q2 and Q3, some 2,200 new rooms were added, mostly outside the central area, and 66 percent of the total was in the midscale category. Room nights sold for 1H/2016 rose 6.4 percent year-on-year, according to the Singapore Tourism Board. As of July 2016, the city state registered an increase of 11.5 percent year- to-date (YTD) for inbound international visitors. The Chinese source market jumped remarkably by 49.2 percent, followed by Thailand at 14.9 percent. This upward trend, however, is likely to be impacted to a certain extent by the Zika outbreak in August which has prompted a few countries to issue advisories warning travellers of the dangers of the mosquito-transmitted disease.
Australia and New Zealand
There were 17 transactions in Australia, totalling approximately A$943.2 million (US$716.4 million) this quarter, compared to 16 in the same period last year. In terms of volume, however, there was a remarkable increase from A$381.2 million (US$282.3 million) recorded in Q3/2015 compared to this quarter.
One recent notable sale was that of Novotel Melbourne on Collins from LaSalle Investment to Singapore- listed Frasers Hospitality Trust for A$237 million (US$ 178.7 million), or A$623,684 (US$470,290) per key. The purchase was part of the Trust’s plan to grow its hotel portfolio. Melbourne’s hospitality sector has been given the boost to grow, driven by the completion of Melbourne Airport’s Terminal 4, the expansion of the Melbourne Convention and Exhibition Centre, and development of several projects such as the Docklands and Fishermans’ Bend. Tourism Australia expects total visitor nights in the state of Victoria to grow at an average of between 4.0% and 4.6 percent for the next three years.
So far this year, the Australia market has been resilient and attractive for overseas investors due to its currency uctuations which has led to an increase in inbound travellers and, consequently, hotel performance.
New Zealand has captured a fair amount of interest from investors so far this year. Investment volume for the rst three quarters of this year totalled NZ$236.4 million from 11 transactions. New Zealand Trade and Enterprise released a report this year pointing out the shortage of hotel rooms in the country and highlighted investment opportunities to cope with this shortfall, especially in key cities such as Auckland, Queenstown, Rotorua and Christchurch. It also reported that in 2015, Auckland and Queenstown had consistently high occupancy rates of above 80 percent throughout the year, while Rotorua and Christchurch had seasonal peaks of also above 80%. Based on historical preferences, upscale and luxury rooms are expected to have a strong demand.
In recent years, New Zealand has seen remarkable growth in international visitor arrivals, rising 9.6 percent for full-year 2015; growth for the eight years prior to this did not rise above 6.0 percent. For 2016 YTD July, international visitor arrivals grew an impressive 11.2 percent. 
 
Simon Smith is senior director, Research and Consultancy, Hong Kong Savills and can be contacted <a href="https://www.savills.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Australian hotel market resilient, attractive for overseas investors: Savills

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At $4 million Toorak has Melbourne’s highest median house price but South Melbourne and nine other suburbs command more by the square metre, new Real Estate Institute of Victoria data shows.
South Melbourne tops the list for land value city-wide – at an impressive $11,212 per square metre.
The suburb also has an impressive median house price of $1.6 million.
Homes in Albert Park and Carlton North also attracted top dollar by square metre, at $10,495 and $9,966 respectively. 
REIV chief executive officer Geoff White said many of the city’s most expensive suburbs by square metre were located in the city’s south east, including St Kilda East, Richmond and South Yarra. 
Further from the city, bayside suburbs Brighton, Black Rock and Hampton commanded the most by square metre - $4,412, $3502 and $3,251 respectively.  
Of Melbourne’s outer suburbs, Knoxfield in the east had the highest price per square metre - $2,440 – and a median house price of $706,000.
<table style="width: 477px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>Suburb</td>
<td>Sep-16 Median</td>
<td>Price Per m2</td>
</tr>
<tr>
<td nowrap>SOUTH MELBOURNE</td>
<td nowrap>$1,600,000</td>
<td nowrap>$11,212</td>
</tr>
<tr>
<td nowrap>ALBERT PARK</td>
<td nowrap>$1,650,000</td>
<td nowrap>$10,495</td>
</tr>
<tr>
<td nowrap>CARLTON NORTH</td>
<td nowrap>$1,400,000</td>
<td nowrap>$9,966</td>
</tr>
<tr>
<td nowrap>ST KILDA EAST</td>
<td nowrap>$1,635,000</td>
<td nowrap>$9,869</td>
</tr>
<tr>
<td nowrap>FITZROY</td>
<td nowrap>$1,300,000</td>
<td nowrap>$9,717</td>
</tr>
<tr>
<td nowrap>NORTH MELBOURNE</td>
<td nowrap>$1,292,500</td>
<td nowrap>$8,549</td>
</tr>
<tr>
<td nowrap>PORT MELBOURNE</td>
<td nowrap>$1,427,500</td>
<td nowrap>$8,206</td>
</tr>
<tr>
<td nowrap>RICHMOND</td>
<td nowrap>$1,152,500</td>
<td nowrap>$7,917</td>
</tr>
<tr>
<td nowrap>SOUTH YARRA</td>
<td nowrap>$1,780,000</td>
<td nowrap>$7,451</td>
</tr>
<tr>
<td nowrap>ABBOTSFORD</td>
<td nowrap>$1,153,750</td>
<td nowrap>$7,437</td>
</tr>
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<td nowrap>TOORAK</td>
<td nowrap>$4,000,000</td>
<td nowrap>$7,255</td>
</tr>
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South Melbourne leads price per square metre land pricing: REIV

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Dawn Ostroff and Jeffrey Goldstein have joined the Board of Westfield Corporation, effective immediately. 
They appointed as non‐executive directors.
Both are residents in the United States.
Dawn Tarnofsky-Ostroff is the former president of entertainment of The CW and, currently, is the president of the Conde Nast Entertainment division, a production company engaged  in projects across film, television and premium digital video based on Condé Nast’s iconic brands. 
Prior to joining Condé Nast, Ms Ostroff was president of entertainment at CW broadcast network, a joint  venture of CBS and Warner Bros., which she helped launch in 2006.
Ms Ostroff has a bachelor of science degree in journalism from Florida International University.  
Jeffrey Goldstein is a Managing Director of  the private equity  firm Hellman &amp; Friedman LLC  (H&amp;F).  
In  2009, Mr  Goldstein  left  his  role  at  H&amp;F  and  served  two  years  as  Under  Secretary  of  the  Treasury  for  Domestic  Finance  and  Counselor  to  the  Secretary  of  the  Treasury  in  the  United  States.  Prior to H&amp;F, Mr Goldstein served as Managing Director and Chief Financial Officer of the World Bank. Prior  to his  tenure at  the World Bank, Mr Goldstein was Co‐Chairman of BT Wolfensohn and a member of  the  Bankers Trust Company Management Committee. He held senior management positions and worked with  BT Wolfensohn and related companies for more than 15 years.  Earlier in his career, Mr Goldstein  taught economics at Princeton University and worked at  the Brookings Institution.  
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Conde Nast entertainment president Dawn Ostroff appointed to Westfield board

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<img src="https://counter.theconversation.edu.au/content/68931/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
We’ve all seen it in the movies: overgrown “kidults” living at home while their parents pick up their dirty laundry, cook their meals and vacuum around their unmade bed. 
This narrow portrayal of what modern-day multigenerational households look like is also found in newspapers worldwide. Names like “mummy’s boys”, “gen why bother moving out”, “kippers” and “gestaters” are used to describe this supposedly dependent generation who won’t leave the comfort of the family home.
Since we began our research four years ago, however, we have found that different generations of the same family live together in one household for a whole range of reasons. This results in a great diversity of outcomes. 
These stories of different drivers and outcomes, along with findings from several related Australian studies, are retold in our new book, Multigenerational Family Living. 
In the book, we debunk a series of myths about multigenerational households. With around one in five Australians living in multigenerational households since at least the mid-1980s, it’s about time we moved beyond the stereotypes.
<h2>Myth #1: Kids won’t become ‘independent’</h2>
If one only paid attention to media reports, it’d be easy to think that multigenerational households in modern-day Australia come about solely because young adults won’t fly the nest. While there is some truth in this, there are other reasons, and combinations of reasons, that lead multiple generations of adult family members to live together. 
Among the 392 respondents to our survey, “adult children yet to leave home” was only the third-most-common driver. Finance was the most common.
Finance, however, can encompass many things.
<a href="/images/2016/11/29/image-20161121-4544-4ut9vm.PNG" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/29/image-20161121-4544-4ut9vm.PNG" alt="">
Survey results, Author provided 
Financial constraints can come about for a wide range of structural reasons. These include an increase in attainment of tertiary (and even postgraduate) qualifications, workforce casualisation and the unaffordability of housing, whether buying or renting. 
These constraints often encourage the younger generation to delay leaving the parental home. However, we also found examples of adult children paying their parents’ mortgages and buying homes together to manage housing costs within the family.
Changes in government policies and priorities can also have impacts on people’s decisions about their living arrangement. The withdrawal of government support – such as changes in the Australian child, aged and disability care sectors – increases the pressures on family members to take care of each other. 
There have been reports of grandparents moving across town to be closer (or to live with) their grandchildren so they can provide child care during the day. 
Likewise, some of our participants said they invited their elderly parents to live with them so they could take care of them because professional aged care facilities were unaffordable or undesirable. “Care arrangement support” was the second-most-common driver for multigenerational living.
<h2>Myth #2: It’s something migrants do</h2>
There is a lot of literature about how common multigenerational living is elsewhere, whether in Asia, the Middle East, or Southern Europe. 
While more than one in three (34.9%) Australian residents born in North Africa and the Middle East lived in multigenerational households in 2011, only one in six (15.7%) born in Northwest Europe (e.g. the UK) did so.
<a href="/images/2016/11/29/image-20161121-4544-1nlzr3p.png" target="_blank">Click to enlarge</a>
<h2><img src="/images/2016/11/29/image-20161121-4544-1nlzr3p.png" alt=""></h2>
Custom 2011 Census data. Image: Alec Gelota, Author provided 
Certainly, there is a cultural element to living arrangement decisions. Yet our analysis shows that three-quarters of people who lived in multigenerational households in Australia in 2011 were born here or elsewhere in Oceania.
<h2>Myth #3: Live-at-home kidults take advantage of parents</h2>
One of the bigger gripes about multigenerational living is that not everyone pitches in. 
Lyn Craig and Abigail Powell found that while adult children do pitch in and help out with chores, these efforts don’t really help their parents all that much, particularly their mothers. 
The reasons are a mix of adult children doing chores for themselves (such as doing their own laundry or cooking their own meals), instead of communal sharing, and of culturally imbued ideas about who should be responsible for groceries, cooking and gardening.
<a href="/images/2016/11/29/image-20161121-4528-2tl4jn.PNG" target="_blank">Click to enlarge</a>
<h2><img src="/images/2016/11/29/image-20161121-4528-2tl4jn.PNG" alt=""></h2>
Survey results, Author provided
Complaints about chores, however, pale in comparison to those about lack of privacy in the family home. This is the result of a combination of family members not respecting personal boundaries but also of many contemporary housing designs (open-plan living, for instance) that are not suitable for multigenerational needs. 
As Bruce Judd discusses in his chapter, some older housing models, including the resurgence of granny flats, may offer better outcomes to people who want to live together in multigenerational homes.
<h2>What does it all mean?</h2>
Despite the media and some academic spheres giving this household form more attention, there is still relatively little known about it, and particularly the experiences of those who choose to live in them. As this journalist realised, there are pros and cons to multigenerational living, just as there are pros and cons to living alone. 
International policy recommendations are advocating for more diverse housing products to house our ever-changing household forms. This includes encouraging people “to share our homes more with other generations and encourage greater intergenerational living”. 
To devise the most practical policies do this effectively, we must have a greater understanding of the outcomes for different members within the household.
Edgar Liu is research Fellow at City Futures Research Centre, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/edgar-liu-32200" target="_blank">here</a>.
Hazel Easthope is senior research fellow, City Futures Research Centre, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/hazel-easthope-175163" target="_blank">here</a>.
Both are authors for The Conversation.
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Why adult children stay at home: looking beyond the myths of kidults, kippers and gestaters

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Rotha, a 1910 home at Camberwell was among the handful across Melbourne that sold for more than $4 million at weekend auction. 
The <a href="https://www.domain.com.au/95-broadway-camberwell-vic-3124-2013164195" target="_blank">Camberwell</a> home sold at weekend auction for more than $700,000 over reserve. It was last sold in the 1920s.
Three bidders competed for the four bedroom home on 1070 sq m after the Jellis Craig auctioneer Richard Earle kicked the auction off with a $2.8 million vendor bid. 
The house at 95 Broadway with Art Nouveau leadlight entry was announced on the market at $3.3 million.
It sold for $4,020,000. 
The other sales around Melbourne last weekend included:
<table class="table table-striped"><tbody>
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<td>14 Kingsley St ELWOOD</td>
<td>$4,750,000</td>
</tr>
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<td>23 Irving Av BOX HILL</td>
<td>$4,500,000</td>
</tr>
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<td>12 Patterson St MIDDLE PARK</td>
<td>$4,175,000</td>
</tr>
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<td>17 Bell St FITZROY</td>
<td>$4,011,000</td>
</tr>
</tbody></table>
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Rotha on Broadway, Camberwell home sells at $4.02 million

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<img src="https://counter.theconversation.edu.au/content/69398/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Despite the well publicised closure of some manufacturing sectors in Australia, manufacturing isn’t dying.
Instead, like industry around the world, it’s undergoing a period of significant change as new, disruptive technologies and economic realities take hold and new markets emerge.
There is a role for the manufacturing sector in Australia. Through interviews with 56 stakeholders, three workshops and a survey of industry and government organisations, as well as leading researchers, CSIRO identified major growth opportunities and what the manufacturing sector needs to do to achieve them.
Currently Australian manufacturing contributes 6.05% of Gross Domestic Product (GDP), exports A$96.1 billion of goods and employs 856,000 people. This has fallen from a high in 1995, when it contributed to 14% of GDP and employed more than a million people. 
High wages, geographical remoteness and a small dispersed local market are some of the reasons for these changes. However consumers are also changing what products they buy which then impacts the type of products made.
Major companies like Boeing and General Electric now look to the world using global supply chains for components for their final product, so Australia has to compete globally. 
The innovation resulting from science and technology, such as automation, digitisation and new materials, has changed the equation of what it means to be a manufacturer. Manufacturing is no longer a basic industry that employs low-skilled workers.
Over the next 20 years, Australia’s manufacturing industry must transform into a highly-integrated, collaborative and export-focused “ecosystem” that provides high-value customised solutions contributing to global supply chains.
Our research brought up some exciting examples of Australian companies that have already embraced this evolution, setting a standard to follow.
<h2>Customised high-margin solutions</h2>
We found that demand for more expensive bespoke products is replacing mass-produced products relying on value from producing a lot for the market. New materials, automation, biotechnology and new chemical processes have driven this innovation in manufacturing. 
These new technologies enable a new level of customisation. Products like personalised medical implants and functional foods and clothing are already possible thanks to the combination of design services and superior components (such as 3D printing).
Small to medium enterprises (SMEs) make up 97% of Australia businesses. So customisation is an ideal recipe for Australian SMEs to achieve global reach without the need for producing more goods than their competitors.
An example of an Australian company doing this well is Oventus. They produce an O2Vent mouthpiece for those that suffer sleep apnoea. Oventus uses a 3D scanner to map a patient’s mouth, then 3D prints a custom-made mouthpiece that helps stop dangerous pauses in sleep at night. Its custom fit and relative comfort attract a price premium. The company recently listed on the Australian stock exchange and is about to go global.
<h2>Collaboration</h2>
Too often Australian manufacturers focus on the rival across the street, rather than the looming competition over the horizon.
Our research shows manufacturers need to partner among themselves, either through business partnerships or increased collaboration. Nautitech and Northern Light Technologies Australia, for example, were brought together by a mining company to improve underground communications. 
These two companies combined hardware from one company and software from the other to provide mobile Wi-Fi coverage for mine sites. It allows miners to monitor worker safety, fleet optimisation, machine performance and also allows autonomous mining and productivity improvements. 
<h2>Global supply chain integration</h2>
In a global marketplace, Australia cannot stand on its own. The Australian market alone is too small - our population is the size of Shanghai, China. 
Australia has few multinational companies manufacturing here. However multinational companies do source components from the best suppliers globally and herein lies the opportunity for Australia.
For example, manufacturer ANCA Tools delivers specifically designed parts to Japan. These parts are made using the company’s multi-axis grinding machines. 
These machines, designed and built in Australia, are automated and wired up for flexible and precision manufacturing. The components are integrated into Japanese customers’ unmanned, factory-wide automated production systems.
Manufacturers need to integrate into international supply chains; using Australia’s advanced technology industry and research sector, to stand out from the crowd. One example of this highlighted from our research is Carbon Revolution, a company that pioneered the commercial production of carbon composite car wheels. These wheels are made from a single piece of material. 
Carbon Revolution is supplying Ford with wheels for the Mustang Shelby GT350R, making it the first company in the world to supply mass produced carbon fibre wheels on standard equipment for a major automaker.
The wheels weigh up to 50% less than conventional aluminium equivalents and reduce carbon emissions by up to 6%. Carbon Revolution is now investigating opportunities in aerospace and industrial markets.
<h2>Increased role for the research sector</h2>
Australia’s research sector can play a critical role in the future of Australian manufacturing, providing the significant technological innovation needed to drive future prosperity.
Publicly funded research agencies in Australia are already building stronger industry engagement. In our research, Australian manufacturers have identified the science and technology gaps that need filling. 
These companies want to use research results to be able to differentiate, make manufacturing processes more efficient, monitor in real time and drive decision making with data. Australian research institutions need to adapt to these demands.
The establishment of open access hubs such as Lab22, the Australian National Fabrication Facilities (ANFF), industry collaboration spaces in research organisations, researchers in business, industry PhDs and internships are all examples of initiatives to link the research and manufacturing sectors.
Australia has a high level of education, an excellent research sector, vast natural resources, a reputation for quality, keen SMEs and close proximity to a burgeoning Asia. The strengths far outweigh the weaknesses.
Cathy Foley is deputy director and Science Director Manufacturing Flagship CSIRO, and can be contacted <a href="https://theconversation.com/profiles/cathy-foley-1066" target="_blank">here</a>.
Keith McLean is director, CSIRO Manufacturing, CSIRO and can be contacted <a href="https://theconversation.com/profiles/keith-mclean-318305" target="_blank">here</a>.
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The Australian manufacturing industry is not dying, it’s evolving: CSIRO study

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There's no doubt that after location, it is the number of bedrooms and bathrooms that fundamentally determines the selection of an apartment to buy.
The aspect and view become important once you are inside.
The standard of fitout certainly comes into play in any pricing.
Over recent times apartment size has become a mild influencer as Sydneysiders embrace the purchasing reckoner that's more common in other international cities, especially across Asia. 
Calculating the per-square-metre price of apartments has emerged - especially for off the plan acquisitions - as a way to evaluate market value as it has been long done say at The Peak in Hong Kong.
Australia has typically used median apartment data in our calculations, and this has appropriately become more segmented given the obvious differences between studios and penthouses.
The sale of the two Opera Residences penthouse earlier this month that established new price records has highlighted the increased emphasis being given to price per square metre.
They sold at $26 million and $27 million, but details released showed these expensive penthouses fetched a stellar $95,000 per sqm. 
The price level is unquestionably comparable to much of Manhattan in New York and Knightsbridge in London. Though not quite matching the world's most expensive apartment currently for sale in Monaco. 
The five floor La Tour Odeon penthouse, designed by the Monegasque architect Alexandre Giraldi, featuring a pool with a waterslide, comes with a reported $US335 million asking price for its 31,500-square foot (2900 sqm) space which equates to $US122,000.
The Sydney Opera Residences penthouses came with around 275 sqm internal space, with three bedrooms, four bathrooms and a triple lock up garage. 
The sub-penthouses in the Macquarie Street complex sold for around $16 million so reflected around $85,000 per sqm. They had an internal area of 183sqm and came with two car spaces. 
The sales represented a big jump on prior benchmarks.
The previous highest recorded rate per square metre was set in the nearby Bennelong "Toaster" development in 2008 when the Moran family bought an adjoining 260-square-metre penthouse for $16.8 million.
At $64,000 a square metre there was something of a one-off premium because the Moran’s planned to extend, so we happy to pay the opportunity cost.
Until the latest price hike, Omnia, Kings Cross’s newest development, held the price per square metre honours after an $11 million penthouse off-the-plan sale last year. It reflected $62,000 per square metre price.
The price per square metre trend has mostly come to the fore due to the off the plan marketing of new high density projects across Sydney. 
But ever since the 13-storey Astor highrise was built on Macquarie Street in the 1920s, Sydney has led the nation in apartment living popularity.
Sydney has 21 square kilometres of what's called high density, Melbourne has one square km with no other city in Australia ranked.
By comparison London has 327 square kilometres where there is a similar high density of 8,000 plus people per square kilometre.
There's been interesting subsequent research from the Urban Taskforce that demonstrates that apartment values per square metre actually go up with greater density. 
An typical apartment in high rise Chatswood will be $9,000 a square metre compared with a mid-rise apartment in Lindfield at $6500. Potts Point apartments are selling at an $11,000 per square metre, compared to Edgecliff's $8300 per sqm.
Parramatta apartments have been selling at $6000 per square metre while Westmead is $4750 per square metre. Randwick apartments at $9300 and Zetland at $6600 psm.
While I think price per square metre calculations are very handy, they ought not be the reason to buy or not buy. 
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Evaluating apartment value by price per square metre

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<img src="https://counter.theconversation.edu.au/content/66406/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Since the beginning of the 20th century the single-function building typology – for example, the office, school, apartment, institution or retail complex – has been subject to regulations requiring separate spaces for “working” and “living”. 
Within this framework, paid labour seldom took place inside the home. Today, people use space differently, which means legislation must change to support different ways of living and working in the one building. 
The post-industrial city, which has existed since the late 20th century, has changed the way people live and work. 
In North America, with the decline of the manufacturing sector in many cities and the “discovery” of the inner city by the 1970s, it became fashionable for people to live in former manufacturing spaces that had been converted for residential use. This trend emerged in New York and then in San Francisco a decade later. 
By the 1990s most cities in North America boasted converted loft districtswhere people were, potentially, both living and working. 
The early adopters of the contemporary live/work movement were artists and craftspeople. Other groups that have since taken advantage of live/work dwellings are entrepreneurs and the self-employed. They may be freelancers who do not keep regular office hours or need permanent office space. 
The availability and affordability of computers, advances in telecommunications and tax deductions for home offices have made the live/work option a practical and economically savvy alternative for many.
<h2>Movement calls for planning reform</h2>
When the contemporary live/work movement gained traction in the 1980s and 1990s, it challenged the North American urban planning system. New legislation allowed for mixed use, blending residential, commercial, cultural, institutional and, where appropriate, industrial uses. 
This included “home occupation”, which incorporated the right to pursue small-scale work activities at home. This model usually placed restrictions on the number of employees and commercial or client visits to the premises.
The term “live/work” signifies that the building or unit is primarily used for residential purposes, but that working is permitted. “Work/live” means the work component takes priority over the residential. In urban planning legislation, live/work is often associated with residential and mixed-use zones and codes, whereas work/live is associated with commercial, industrial or mixed-use zones and codes.
The main difference between live/work and work/live and home occupation is the “disturbance factor” – that is, how intrusive the activities in the building are for neighbours. 
In Australia, home occupations are generally permitted in current residential and mixed-use zones as long as they do not disturb the neighbours. 
While artist communities and creative entrepreneurs in Australia have been blurring the boundaries between living and working for decades, live/work (or work/live) as a formalised land use does not exist.
The adaptive reuse of vacant or underused buildings and lots is a strand of the live/work, work/live movement. Locations such as Collingwood in Melbourne, Northbridge in Perth and Surry Hills in Sydney are all home to numerous adaptive reuse projects and people working in the creative economies. Councils often turn a blind eye to the buildings’ unregulated use.
However, Australia is yet to see the development of new land use or mixed-use live/work zones such as those in North America. Since the 1990s, live/work has also been formalised in Western Europe. By the 2000s, the movement had taken hold in places such as Eastern Europe, Russia and China.
<h2>What are the live/work benefits?</h2>
As a land-use and building typology, live/work can support urban neighbourhoods through providing a diversity of uses, which can be flexible over time. It intersects with housing, job, transportation and infrastructure planning to support an integrated approach to urban planning. 
The live/work ethic advocates for mixing stores, offices and housing. This can help make neighbourhoods busier and more productive, meaning they may be livelier and safer. 
Live/work offers multiple sustainability benefits. These include a reduction in vehicle use, improved air quality, less dependency on natural resources and reduced sprawl. It can also support and promote efficient land use by putting maximum floor area within a given envelope. 
Increased choice as to how and where people live and work, as well as the accommodation of different lifestyles and new demographics, can result in a built environment that is more responsive to the changes in cities that occur over time.
<h2>What changes are needed?</h2>
The City of Perth encourages residential uses within commercial precincts – for example, in West Perth – but what happens when you want to work in your own home in the city or the suburbs? 
How many workers can you have? Can you put up signage? What services are prohibited? How easy or expensive is it to change the use of a building through the planning system? What spaces and safety conditions need to be adhered to? 
The WA planning scheme stipulates that home occupation means that the business cannot employ non-household members. It also cannot occupy over 20m² or have a physical retail component. A “home business” cannot employ more than two people, be larger than 50m², or have a physical retail component.
With a shift in the attitudes of Australian federal and state governments towards innovation and creativity, planning regimes also need to be more creative to support living and working conditions for the 21st century. An increase in densities presents an opportunity to explore further experiments in live/work.
Andréanne Doyon is research fellow, University of Melbourne, and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/andreanne-doyon-305144" target="_blank">here</a>.
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Reinventing density: bridging the live-work divide

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<img src="https://counter.theconversation.edu.au/content/69202/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The number of Australians who are 30 days behind in their mortgage payments is at the highest level in three years, according to ratings agency Moody’s. It projects this will keep rising. 
The question is, how worried should we be? 
The increase in mortgage delinquencies is a warning sign for lenders. Moody’s analysed mortgages in residential mortgage-backed securities, which may differ from the loans on the books of the major banks. So it’s hard to say exactly how problematic this is right now. 
But there are a number of factors that could make this situation worse, regardless of the current risk. My colleagues and I recently published research exploring the causes of loan losses. We found a lack of ready funds and declining housing prices to be key contributors. Future interest rate rises, then, are a concern.
Further, a key driver behind the rise of delinquencies is that wage increases have not kept up with recent house price increases, and this trend, too, is looking rather dire. 
<h2>How banks report bad loans</h2>
Bank risk reports reflect a number of different metrics of how their loan books are doing. Let’s focus on loan delinquencies, impaired assets and provisioning. 
In Australia, housing loans are defined as delinquent if the borrower does not meet scheduled payments. For example, they could be 30 days or more than 90 days late. A loan is considered impaired if it is likely to result in a loss to the bank - generally because there is not sufficient collateral backing the loan.
Provisioning is the money that banks allocate to cover the losses on bad loans, whether delinquent or impaired.
This chart, based on recent Commonwealth Bank reports, shows that none of these numbers are particularly high right now - representing less than half a percent of all the loans on the bank’s books.
<a href="/images/2016/11/29/image-20161124-15325-tl83nr.jpg" target="_blank">Click to enlarge</a>
<h2><img src="/images/2016/11/29/image-20161124-15325-tl83nr.jpg" alt=""></h2>
Commonwealth Bank of Australia Basel III Pillar 3 reports. Commonwealth Bank
<h2>How bad loans affect banks</h2>
That chart isn’t the end of the story. 
Generally speaking, delinquencies are forward looking. A 30-day delinquency has a strong potential to become a 90-day delinquency, eventually forcing the bank to start setting aside more and more money, and prepare for an impairment. 
Bank provisioning follows guidelines set by the Australian Prudential Regulation Authority (APRA). The longer the loan is in arrears, the more money banks have to set aside.
For example, for a mortgage loan with an outstanding amount of 80-100% of the property value, the bank does not have to set aside any additional money for the first 90 days it is in arrears. But they must set aside 5% of the loan after 90 days, and 20% after a year. Larger provisions apply for commercial loans, especially if they are not secured against other assets.
This is why the Moody’s warning has to be taken seriously - 30 days can quickly become 90 days, putting more pressure on banks.
<h2>The state of the economy is also a factor</h2>
Not every delinquent loan results in a loss, however. Banks and borrowers often come to agreement on more lenient payment schedules which ‘cure’ delinquent loans and borrowers are able to make scheduled payments again. 
The rate at which delinquent loans are cured often reflects the state of the economy. The following charts are based on <a href="https://www.creditriskanalytics.net/datasets">US data</a> and show us how the economy can factor into whether a loan is cured or goes bad. In a boom, cure rates are high and foreclosure rates low.
Another thing to note in these charts is that cure rates decrease significantly as the number of days in arrears increases. 
<a href="/images/2016/11/29/image-20161124-15325-1ozowoo.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/29/image-20161124-15325-1ozowoo.jpg" alt="">
Delinquencies that are ‘cured’ during a boom. author's analysis 
In an economic bust, however, cure rates are low and foreclosure rates are high. There are many reasons for this – during a bust it is much harder for the unemployed to find jobs, for delinquent borrowers to sell other assets, and lenders are less willing to refinance.
<a href="/images/2016/11/29/image-20161124-15362-1quhi9k.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/29/image-20161124-15362-1quhi9k.jpg" alt="">
 
Delinquencies that are ‘cured’ during a bust. author's analysis
Are Aussie banks in trouble?
In Australia the delinquency rates are currently well below those seen in the US during the global financial crisis (GFC). The delinquency rates there and then exceeded 5%.
But the conditions are there for bank losses to be realised. First, borrowers need to become delinquent (often as a result of job losses or interest rate increases). Second, house prices need to drop below outstanding loan amounts as banks only have losses if the houses do not repay the impaired loans.
Such a bust scenario may be unlikely but within reach. The job market is under pressure, interest rates are low and hence likely to rise in the longer term, and the outlook for house prices is mixed - with Melbourne and Sydney on the rise but cities associated with the mining sector heading down. 
It is important to keep a close watch on these all factors, especially if they start to combine.
Harry Scheule is associate professor, Finance, UTS Business School, University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/harry-scheule-3573" target="_blank">here</a>.
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More Australians are behind on their housing loans, how worried should we be?

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A $3.75 million sale of a Victorian home in need of renovation was secured earlier this month at 22 Chrystobel Crescent, Hawthorn.
The 1888 house, on a substantial 830 square metre block, fecthed around $450,000 over reserve.
The Marshall White auction attracted interest from five bidders.
One buyers agent advised the property, located in the coveted Grace Park Estate, got the big price despite having the downsides of being south-facing and being on a slope.
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No downside as Hawthorn home on a slope sells for $3.75m

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.

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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.

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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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