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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

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Joel Robinson

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.

The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.

The challenge for investors is that suitable product is becoming harder to find.

For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.

Today, the development pipeline looks very different.

Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.

The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.

&nbsp;

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.

The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.

[smartcode_project:default project_id=112194 project_image_fid=808]

For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.

One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.

[smartcode_project:default project_id=149098 project_image_fid=330594]

Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.

The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.

Parkdrive Apartments, Chermside

Priced from: $749,000

The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.

The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.

For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.

Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

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

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

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

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

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

Jonathan Chancellor

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