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GUEST OBSERVER
Construction work is trending lower from historic highs, led lower by the mining investment downturn.
With the construction sector accounting for around 14 percent of the economy this is a material headwind.
Total construction work fell by 4.9 percent in Q3, exceeding expectations (Westpac f/c -1.5 percent and market median -1.6 percent).
Over the past year, construction activity is down by 11.1 percent.
The September quarter outcome will subtract in excess of 0.5ppts from quarterly GDP.
This outcome adds to evidence that the economy hit a soft spot in the middle of 2016, as suggested by soggy labour market conditions.
We expect the economy to emerge from this weakness, with conditions to improve in 2017, supported by recent RBA rate cuts and a spike in commodity prices.
Downside surprises were in housing and public works, both of which are likely to improve in coming quarters given the recent strength of approvals and commencements.
Housing approvals rebounded to hit record highs in 2016, supported by lower rates, and state governments are committing to additional infrastructure projects – particularly for transport.
The private non-residential building cycle has turned down, reflecting earlier weakness in approvals. The drop in activity in the quarter was sharper than anticipated, -12.9 percent vs f/c -1.4 percent.
More recently, non-residential building approvals have begun to lift from their lows, pointing to an emerging stabilisation and potential improvement in 2017.
The decline in private infrastructure was largely as anticipated, -6.6 percent vs f/c -8 percent.
By state, construction work fell across the mainland in Q3 – including falls of 2.1 percent in NSW and 6.9% in Victoria.
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Total construction                –4.9 percent Private construction            –6.0 percent Public construction             –0.2 percent  
Private - by segment
Infrastructure                        –6.6 percent Dwelling, new                      –3.2 percent Dwelling renovations          –0.7 percent Non-res. building                 –12.9 percent  
Public - by segment
Infrastructure                        +1.4 percent Building                                 –5.5 percent
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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Total construction work fell by 4.9 percent in Q3: Westpac's Andrew Hanlan

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ASX-listed 360 Capital Group is set to sell its real estate funds management platform to Centuria Capital Group.
Both companies' shares went into a trading halt this morning, ahead of an announcement.
A deal is expected to be announced before the end of the week.  
Centuria Capital is expected to tap equity markets to fund the transaction which was hanging in the balance on the back of recent market volatility. 
Centuria and 360 Capital have been in takeover talks, as exclusively revealed by The Australian's DataRoom column last week, in a deal which will involve Centuria raising about $250 million in cash for the transaction through advisory firm Moelis.
360 Capital is a rival real estate group founded by former Mirvac Group executive Tony Pitt.
Both own retail, offices and industrial properties.
 
Centuria made a $300 million bid earlier this year for the GPT spin-off through, but South Africa-based Growthpoint Properties Australia trumped its offer.
 
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Trading halt for Centuria and 360 Capital

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The first McGrath annual general meeting as a listed company takes place this afternoon.
The company has yet to provide any guidance for 1HFY17 or FY17.
Stockbrokers Bell Potter advised the well publicise lower auction volumes in Sydney was likely to be significant.
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"We expect the 1HFY17 result to be well below 1HFY16.
"We also expect volumes to remain subdued next Autumn (the next key auction period) but similar to those this year so at this stage we forecast the 2HFY17 result to be similar to 2HFY16. 
"The combination of a weak 1HFY17 result and a flat 2HFY17 result means overall we forecast the FY17 result to be below FY16."
Bell Potter issued its revenue, EBITDA and NPAT forecasts for both 1HFY17 and FY17.
"The 1HFY16 and FY16 results are shown on a pro forma basis so that a like-for-like comparison can be made," Bell Potter analyst Chris Savage noted.
 
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Fewer auctions to impact 2017 McGrath revenue: Bell Potter forecast

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The Sydney developer TWT Property Group has reportedly taken a majority stake in the $40 million amalgamated five-lot residential site including the Mill Hill Hotel at Bondi Junction (above) in Sydney's east.
TWT will develop the site at 59-69 Oxford Street, which comes with a development approval for a mixed residential/commercial project with 70 apartments with original owner, Allen Linz's Rebel Property Group, according to the Australian Financial Review.
It includes heritage conservation works for four commercial terraces at 63-69 Oxford Street. 
TWT and Rebel will develop the 12-storey residential tower with a ground floor public hotel and three levels of basement car parking as a full-equity project.
TWT is formerly known as Auswin TWT.
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TWT to JV with Allen Linz on Mill Hill Hotel, Bondi Junction redevelopment

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The late interior designer Stuart Rattle’s final project is on the market for $9 million-plus in Toorak.
He modernised the 1925, four-bedroom Arts and Crafts style house at <a href="https://www.realestate.com.au/property-house-vic-toorak-124017142" target="_blank">42 Heyington Place</a> leading up to his murder in December 2013.
Kay &amp; Burton agent Gowan Stubbings said the stately two-storey residence was some of the leading designer’s “finest work.”
The exterior at 42 Heyington Place, Toorak was designed by Ballantyne and Hare. The house last sold at $1.65 million in 1994.
There are coffered ceilings, European oak floors and a limestone fireplace.
Offers are due with Kay &amp; Burton by November 28.
Rattle's own masterpiece was Musk Farm.
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Stuart Rattle's final Toorak design project listed

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Entrepreneur and HomeCorp Group developer Ron Bakir and wife Maja have listed their penthouse atop the Chevron Renaissance in Surfers Paradise.
The <a href="https://www.realestate.com.au/property-apartment-qld-surfers+paradise-124032282" target="_blank">sprawling two level penthouse</a> sits on the 39th and 40th level of the Ferny Avenue building.
It has a price guide of $12.5 million with Michael Kollosche at Kollosche Prestige Agents.
Comprising four bedrooms, four bathrooms, two powder rooms and a media room, the 1000 sqm apartment has undergone a massive transformation under Bakir's eye.
It's taken over two years to create the sky home, with structural changes also a part of the transformation.
It had once been the office space of fellow developer Jim Raptis.
There are balconies with views over the city, beaches and the hinterland.
There are no painted walls, but panels of timber veneer, smoked glass, imported marble or lustrous lacquered finishes.
Living areas feature the finest Italian designer furniture and adjacent to the formal dining space is a cigar and wine tasting area, flanked by integrated wine fridges.
There's a casual entertaining lounge with teppanyaki barbecue, billiards area, gym and sauna at rooftop level.
The opulent penthouse even comes with secure basement parking for 21 cars and more than 600 sqm of additional storage.
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Ron Bakir's $12.5 million Gold Coast penthouse offering

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GUEST OBSERVER
Profit-driven developments shape the housing markets of most major cities today.
However, new models exist that offer greater choice and lower costs, foster cohesive neighbourhoods and enable adaptable, customised living solutions.
These alternatives have been diverse and of a high architectural standard. They also allow self-determination: they are initiated by the people who will dwell in them.
Baugruppe – German for “building group” – stands for a long tradition of self-initiated, community-oriented living and the shared responsibility of building. The concept has taken off in Berlin. There is no “typical model” – every project differs in its financing, social make-up, the wishes and desires of the group, and the project’s resulting architectural and urban qualities.
The most significant and innovative built examples, particularly in Berlin, have been initiated by architects for a specific group of clients who were all looking to live in the buildings. 
On the surface, these are practical solutions, where single-family homes are stacked and combined to optimise the use of an urban site. 
On closer inspection, it is clear that close collaboration between architects and clients has resulted in projects packed with special features and spaces that foster social interaction – such as Ritter Strasse 50 and Spreefeld.
Baugruppe adds to urban vitality by considering social issues of inclusion and community and by incorporating mixed-use elements that fuel urban interaction. Green, open and community spaces have proven vital parts of good neighbourhoods and are important here. Common spaces such as rooftop terraces, function rooms, playrooms, guest rooms and even saunas also help to bring people together.
Every baugruppe project in Berlin has a shared garden, which is often also open to the public.
The entire neighbourhood profits from the green and surrounding urban spaces. The experience helps foster a sense of community identity and encourages people to take responsibility for the place they live in.
<h2>Affordable and sustainable</h2>
Long-term affordability helps to create stable neighbourhoods. Alternative models for financing and ownership have offered a new level of long-term affordability within a non-profit ideology.
In collective projects, the future users decide what to invest in and where money can be best saved. This redefines the quality-to-price relationship. 
One example of this is the co-op association Spreefeld. This project diverges from the traditional owner-occupier baugruppe model: here, a land grant or a leasehold contract guarantees the long-term use of land in return for rent. It also ensures that what is built and established there meets certain criteria and ideals.
Personalised solutions, and spaces that can be adapted to suit changing needs over time, allow people with special needs to find a place in the city. For example, these spaces can allow multi-generation living, barrier-free standards, or an environmentally aware way of life.
The Strelitzer Strasse 53 project, on which architect Florian Koehl worked closely with the owner group, includes fold-out balconies, as city planning regulations prohibited real ones.
This inspired many other baugruppen to try new ideas. Such projects show the architect’s role expanding from that of designer to that of initiator, developer, moderator of engagement processes and project manager.
Baugruppe projects are leading the way in environmental sustainability by employing, for example, high-rise timber construction or passive design. Users and owners willingly explore new technology, carefully balancing its pros and cons. Several different types of multi-storey wooden construction solutions are now certified in Germany as a result of baugruppe experimentation.
<h2>Co-operating to create better lives</h2>
It is time that our cities are determined by the people who live in them. High-quality solutions that improve the surrounding communities should become standard. This requires the architectural profession, as well as policymakers, to value such solutions.
Often, the largest challenge for groups is buying a site. Specifically, they must organise the loan quickly enough to beat other investors to the table. Governments could allow payment on a site to be deferred until the groups are fully formed and have planning approval.
By designating public land for development, the social, cultural and urban planning goals of the city can be realised through private initiatives and long-term self-administration.
Goals such as social mix, mixed use, environmental standards or non-profit constraints can all be regulated within land allocation policies. England, Finland and many other countries are re-establishing policy to facilitate baugruppe building.
Baugruppen can help cities meet the challenge of providing an adequate supply of suitable, affordable housing in a sustainable way. By transforming themselves from consumers into pioneers, the people who make up the collectives have succeeded in developing affordable projects that allow a high quality of life and add value to the community.
Kristien Ring is assistant professor, University of South Florida, and 2016 Visiting Fellow, Institute of Advanced Studies, University of Western Australia and author for The Conversation.
She can be contacted <a href="https://theconversation.com/profiles/kristien-ring-305141" target="_blank">here</a>.
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Reinventing density: how baugruppen are pioneering the self-made city

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<div class="section">With barely 30 shopping days left till Christmas, the latest signs from the Westpac-Melbourne Institute Consumer Sentiment survey point to a more downbeat holiday spend than a year ago but with plans still in slightly better shape than other 'post GFC' years. <div class="layoutArea">
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The November Westpac-Melbourne Institute Consumer Sentiment survey included an additional question on plans for spending on Christmas gifts, asking: “will spend less, about the same, or more compared to last year?” The results show consumers taking a more restrained approach in 2016 with 34% planning to 'spend less’, 52% 'the same’ and 14% ‘more’. That compares to a 30%:53%:17% mix in 2015.
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The simplest summary measure of intentions is an index based on the net balance of responses, i.e. 100 + %more – %less. On this basis, the 2016 reading is 79.9, down from 87.0 in 2015. That in turn followed five successive years of readings in the 77-79 range, a disastrous 66 reading in the depths of the GFC and a record high 91 during the consumer boom in 2007.
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All up that places 2016's read down sharply on 2015 but still a touch above the lacklustre results over the previous five years. Going by the retail sales results in those years this looks to be roughly consistent with a 1.5-2%yr rise in per capita spending. With population growth tracking at 1.4%yr, total retail sales will likely be up about 3-31⁄2%yr – a 'so-so' year compared to the 5% gain in 2015.
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The survey detail shows the biggest cooling off vs a year ago has been in NSW, with spending plans notably firmer in Vic and improving marginally on last year for consumers in SA, Qld and WA. That said, spending plans in SA and the 'mining states' are still tracking at markedly weaker levels than in NSW and Vic. By sub-group, the biggest pull backs vs a year ago have been amongst 18-34 year old's, those on lower incomes and females. Those with annual incomes in the $60-100k were notably more positive, both compared to previous years and with other groups.
The picture from Consumer Sentiment more generally also shows a 'lukewarm' lead-in to the holiday period. Sentiment is tracking at similar levels to last year but with views around family finances notably softer.
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Casting our gaze back further, over the entire 42yr history of the survey, the sentiment lead-in to Christmas 2016 is in the middle of the pack – a long way above the bleak recession years in the early-90s and early-80s and deeply unsettled GFC year in 2008 but also a far cry from the 'golden' years in the mid-80s, the early to mid-2000s and the post GFC bounce in 2009. We will leave it to readers to draw parallels with weather patterns, cricket performances and the like. 
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Australian consumers setting up for a 'lukewarm' Christmas spend: Westpac's Matthew Hassan

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The Australian Bureau of Statistics has released the annual State Accounts. These provide annual estimates of output growth by state, Gross State Product. Quarterly estimates are not available. 
The accounts for the 2015/16 financial year (July to June) confirm that the growth transition is continuing. The mining states of the north-west, Qld and WA, have slowed as construction work on major projects is progressively completed. The southern states have generally improved, benefitting from lower interest rates and a lower dollar.
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The two most populous states, NSW and Victoria, topped the growth table in 2015/16, with both expanding at an above trend pace. NSW grew by 3.5%, strengthening from 2.6%, a result closely matched by Victoria, 3.3%, up from 2.6%. 
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In South Australia, output growth of 1.9% is a little below trend, while in Tasmania growth was a modest 1.3%. 
Western Australia slowed further, moderating to 1.9%, down from 3.6% and well below the 5.8% result of two years earlier. Queensland managed a partial rebound, expanding by 2.0%, up from 1.2% in 2014/15 but still down on the 3.3% outcome for 2013/14. 
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NSW 
The NSW economy grew by 3.5% in 2015/16, up from 2.6%, the strongest result in 16 years, since 1999/00 - just prior to the Sydney Olympics. The outcome was well above the state's long-run average of 2.5% and exceeded the state government's forecast of 2.75%.
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Construction, real estate and financing together added 1.5ppts to growth in 2015/16, up from 0.9ppts the year prior. Positive spill-over effects contributed to stronger performances across a number of industries, including: public services (with state government revenue boosted by the housing boom); transport; wholesale; manufacturing; and communications. Service exports, benefitting from the sharply lower dollar, were also a growth engine, increasing by 12.5% in 2015/16 and adding 0.6ppts to growth, the strongest result since 1992/93 (excluding the Olympics year of 2000/01).
Victoria 
The Victorian economy expanding by 3.3%, up from 2.6%, the fastest pace since 2007/08, before the GFC. That is above trend of 2.8% and exceeded the state government forecast of 3.0%.
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Construction, real estate and finance together added 1.5ppts to growth in the year, up from 0.9ppts. A strengthening of conditions was evident across: retail; communications; transport; wholesale; and public services. Agriculture and manufacturing were areas of softness, both subtracting 0.2ppts. Service exports, having surged 15.4% in 2014/15, advanced by 4.0%. 
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Western Australia 
In the West, conditions continue to moderate. Output grew by 1.9% in the past year, slowing from 3.6%. That is below trend, 4.3%, but above the state government forecast of 1.0%. 
Construction subtracted 0.4ppts from growth, following a drag of 0.3ppts the year prior, as work on major gas projects is progressively completed. Negative spill-over effects contributed to contractions across a number of industries: transport; wholesale; professional services; admin services; and manufacturing. Mining added 1.9ppts to growth, although that was down from 2.5ppts the year prior and 2.9ppts in 2013/14. 
Queensland 
The Qld economy managed a partial rebound in 2015/16, with output growth recovering to 2.0%, up from 1.0% in 2014/15. The result was still below par, of 4.1%, and fell short of the state government forecast of 3.5%. 
Construction fell at a slower rate with much of the work on gas projects already completed, subtracting 0.4ppts from growth after a chunky 1.7ppts drag in 2014/15. Manufacturing and professional services were areas of weakness, both subtracting 0.2ppts, in part due to negative spill-over effects from the mining downturn. Mining output added 0.6ppts to growth, up from 0.5ppts the previous year, as gas exports expand. Real estate was a bright spot, strengthening to add 0.3ppts to growth as the housing sector responded to lower rates. Public services experienced a strong year, adding 0.4ppts to growth, as the state increased public servant numbers. 
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South Australia 
The South Australian notched up back-to-back years of moderate growth, expanding by 2.0% in 2014/15 and 1.9% in 2015/16. That is a little below the long-run average of 2.3% but above the state government forecast of 1.5%. 
Construction, finance and real estate together made a solid contribution of 0.6ppts, up from 0.4ppts the year prior. 
Mining bounced back, adding 0.2ppts, after a neutral impact in 2014/15. The rate of decline in manufacturing slowed, subtracting 0.1ppts, well below the peak drag of 0.6ptps in 2013/14. Household services added 0.4ppts to growth, broadly matching the 0.5ppts contribution in 2014/15, following a flat 2013/14. Public services had a strong year, added 0.4ppts. 
Tasmania 
Tasmanian output grew for a third year, expanding by 1.3%, after results of 1.2% and 1.5%. While this is still below average, of 2.0%, conditions have improved from the four challenging years 2009/10 to 2012/13 when output contracted by 0.4ppts. 
International exports, after a period of structural adjustment and benefitting from a lower dollar, surged 20%, adding 2.8ppts to growth. Areas of weakness were agriculture and utilities, both subtracting 0.4ppts from growth. There were record low inflows into the hydo system and the unprecedented prolonged outage of the Basslink interconnector with mainland Australia. The 'balancing item', including inter-state trade, subtracted 4.0ppts from growth.  
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Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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Lower interest rates boost southern states: Westpac's Andrew Hanlan

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The buyer of The Edge, the award winning Port Douglas trophy home designed by Charles Wright, has emerged as Professor Charles Mackay.
The chief scientific officer at Pfizer in Massachusetts paid $4.85 million for the home after its price was adjusted to $5 million through Barbara Wolveridge at Raine &amp; Horne Port Douglas Mossman.
Mackay retains a home in Sydney's Vaucluse.
It initially came with $7.4 million hopes upon its May 2015 listing.
Floating off the side of Flagstaff Hill, the 555 square metre home with wet edge pool is designed like an outdoor shell with a cantilevered roof.
The two bedroom home won the far North Queensland Eddie Oribin Award for building of the year at the 2015 AIA Architecture Awards.
It was built for the late Sydney industrialist Peter Graham and wife Claire.
This article first appeared in The Weekend Australian.
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The Edge, Port Douglas mystery buyer revealed

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

Joel Robinson

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

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Jonathan Chancellor

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