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GUSET OBSERVER
With property prices typically viewed as the crux of the affordability problem, and little able to be done on this score, new ideas are needed to open the door to first home buyers - and targeting up-front costs is the place to start. 
While much has been written about the huge burden of stamp duty, particularly in NSW, Ms Pilkington nominates mortgage insurance as an area that could also be addressed to give first home buyers a more realistic chance of entering the market. 
Enabling first home buyers to negatively gear a percentage of their mortgage – even just a small one – is another opportunity to address affordability.
A 10 percent deposit on a Sydney property is a significant amount of money but when you factor in mortgage insurance, legal costs and initial home insurance, on top of the exorbitant cost of stamp duty, it’s no surprise so many first home buyers are disheartened. 
The various up-front costs mean the numbers fail to add up for many first home buyers. It’s at this point the excitement dissipates and stress takes over, and many looking to enter the market simply bow out, assuming they’ll never have enough. 
That’s why it’s at this point we need to help first buyers navigate a successful purchase.
Mortgage insurance is an important safeguard but questions the methodology of paying an up-front one-off lump sum. 
Most insurance policies are paid annually on an as-needed basis. There is no reason this couldn’t be applied to mortgage insurance too. 
One Laing+Simmons franchisee was recently working with a customer who had to pay over $8,000 in mortgage insurance up-front as they only had a 10 percent deposit. The property subsequently rose in value by 10% over the next six months, meaning their equity was now 20% and they therefore had no further need for mortgage insurance. 
Yet they had already incurred the cost - a cost that could, and should, be avoided.
The number of times an insurance company has to pay out on mortgage insurance is not in line with the amount they charge. 
Aside from a fairer approach to mortgage insurance, Ms Pilkington says Governments could also explore how negative gearing could help first home buyers. 
Under certain conditions, perhaps we could enable first home buyers to access negative gearing on the home they live in, even if it was only for a small percentage of their mortgage. 
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For example, first home buyers might negative gear a percentage of their loan for a fixed period of time which would lower repayments and, like any property negatively geared, the Government could claim some sort of capital gains tax when they sell. 
Any options to improve the tax effectiveness for home ownership to support first home buyers could be considered.
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Leanne Pilkington is managing director, Laing+Simmons and can be contacted <a href="https://www.lsre.com.au/home" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

New angles on the affordability issue: Leanne Pilkington

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GUEST OBSERVER
The RBA kept its cash rate steady at 1.50 percent, as expected.
 Although underlying inflation is running at 1.5 percent y-o-y, which is below the RBA's 2-3 percent target band, the central bank noted that 'the September quarter inflation data were broadly as expected' and that 'inflation is expected to pick up gradually over the next two years'. 
It's clear that although inflation is still below target the RBA is making use of the 'flexible' and 'medium-term' nature of the inflation targeting regime.
 In short, the RBA decision-makers are not 'inflation nutters'. They backed this up with (lack of) action. Overall, the statement was little changed from last month. Somewhat surprisingly, there was no specific reference to the recent sharp rise in coal prices. We expect the RBA to be on hold at 1.50 percent in coming quarters. 
Facts 
The RBA held its cash rate steady at 1.50 percent, as expected by 22 of 28 economists in the Bloomberg survey, including HSBC. Just prior to the decision the market was pricing a 5 percent chance of a 25bp cut. 
Implications 
The RBA made use of the 'flexible' nature of its inflation targeting regime by choosing not to cut the cash rate, even though underlying inflation remains clearly below the bottom edge of its 2-3 percent target band (in both q-o-q and y-o-y terms). 
Harking back to a famous comment by former Bank of England Governor, Mervyn King, in 1997; there are no 'inflation nutters' here. RBA Governor Phil Lowe recently repeated this view at a parliamentary testimony and today the RBA backed it up with (lack of) action. 
The accompanying statement was very similar to last month, with only a few small tweaks to the text. On the exchange rate, they repeated that 'an appreciating exchange rate could complicate' the rebalancing of growth. 
On the housing market, the statement re-iterated that 'the rate of increase in housing prices is also lower than it was a year ago', but also acknowledged that 'prices in some markets have been rising briskly over the past few months'. 
Somewhat surprisingly, there was no specific reference to the recent sharp rise in coal prices. Keep in mind that coking coal prices are up 210 percent since May and thermal coal prices are 116 percent higher (iron ore prices are also up 63 percent since January). 
To the extent that these price rises are sustained, this has the capacity to change the Australian growth story significantly, in our view. In not mentioning coal prices today, the RBA appears to be taking a (characteristically) cautious approach to not shifting the narrative until it is completely sure that the story has changed. 
We will be looking out for more on commodity prices and the likely impact on growth and inflation in the RBA's detailed quarterly official statement due out on Friday 4 November. 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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No 'inflation nutters' here: HSBC's Paul Bloxham

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Another apartment development site in Thistlethwaite Street, Fishermans Bend, has sold, this time for $7,525,000.
The 1237 square metre parcel was not offered with a permit, but instead an architectural concept plan for an eight-level complex with 84 flats, many capitalising on city and Port Phillip Bay views.
Colliers International's marketed 37-47 Thistlethwaite Street, currently a two-storey building with a lettable area of 1749 square metres.
The sale comes after the same agents sold a 1194 square metre block next door, at 15-35 Thistlethwaite Street, for more than $8 million.
The vendor of that site, Circa Property Group, offered the block with a permit for an eight-level, 83-unit complex.
It exchanged to an Asia-based builder.
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Fishermans Bend development site sold

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RBA Governor Philip Lowe's November 2016 RBA statement.
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At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
The global economy is continuing to grow, at a lower than average pace. Labour market conditions in the advanced economies have improved over the past year, but growth in global industrial production and trade remains subdued. Economic conditions in China have steadied recently, supported by growth in infrastructure and property construction, although medium-term risks to growth remain. Inflation remains below most central banks' targets.
Commodity prices have risen over recent months, following the very substantial declines over the past few years. The higher commodity prices have supported a rise in Australia's terms of trade, although they remain much lower than they have been in recent years.
Financial markets are functioning effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative. Government bond yields have risen, but are still low by historical standards.
In Australia, the economy is growing at a moderate rate. The large decline in mining investment is being offset by growth in other areas, including residential construction, public demand and exports. Household consumption has been growing at a reasonable pace, but appears to have slowed a little recently. Measures of household and business sentiment remain above average.
Labour market indicators continue to be somewhat mixed. The unemployment rate has declined this year, although there is considerable variation in employment growth across the country. Part-time employment has been growing strongly, but employment growth overall has slowed. The forward-looking indicators point to continued expansion in employment in the near term.
Inflation remains quite low. The September quarter inflation data were broadly as expected, with underlying inflation continuing to run at around 1½ per cent. Subdued growth in labour costs and very low cost pressures elsewhere in the world mean that inflation is expected to remain low for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 has been helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are assisting the economy to make the necessary adjustments, though an appreciating exchange rate could complicate this.
The Bank's forecasts for output growth and inflation are little changed from those of three months ago. Over the next year, the economy is forecast to grow at close to its potential rate, before gradually strengthening. Inflation is expected to pick up gradually over the next two years.
In the housing market, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments. Turnover in the housing market and growth in lending for housing have slowed over the past year. The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades.
Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
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Rental growth slowest in decades: RBA Governor Philip Lowe's Cup Day November 2016 statement

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GUEST OBSERVER
The housing market is certainly patchy across the nation, however it was encouraging to see some of the resource states seeing a decent lift in prices over October.
In addition prices fell in just two of the eight capital cities. Policymakers would be encouraged about more balanced home price growth across the nation but it would take a few more months to feel comfortable, and they would need to see a lift in regional house prices. Annual growth in home prices across regional centres was just 1.1 percent over the past 12 months.
What is clear is that prices are still rising in the strong markets of Sydney and Melbourne. In fact annual growth in Sydney home prices remains just shy of 11 percent and growth remains close to 10 percent in Melbourne.
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Still, given the amount of new homes being built at present in Sydney and Melbourne, national home prices may slow over the coming year.
The latest home price data doesn’t stand in the way of the Reserve Bank cutting rates over the next couple of months. The Reserve Bank has regularly noted that housing supply will lift over coming years as work is completed on the bevy of new homes – especially apartments. On balance inflation will be more of a deciding factor when it comes to debating the merits of another rate cut.
The latest Australian manufacturing data is encouraging, suggesting that the current levels of interest rates and the Australian dollar are working in favour of domestic producers. No doubt the sector is also benefitting from the stronger demand now that Brexit and the Federal Election are out of the way. 
What do the figures show?
Home prices
The CoreLogic Home Value Index of capital city home prices rose by 0.5 percent in October and was up 7.5 percent over the year.
In regional Australia, house prices rose by 0.9 percent in September and were just 1.1 percent higher than a year ago. (regional prices cover just houses and data is up to the end of September).
In capital cities, house prices rose by 0.5 percent in October while apartment prices rose by 0.6 percent. House prices were up 7.7 percent on a year ago and apartments were up by 6.3 percent.
The average Australian capital city house price (median price based on settled sales over quarter) was $615,000 and the average unit price was $520,000.
Dwelling prices rose in six of the eight capital cities in October: Darwin (up 2.2 percent) followed by Melbourne, Perth and Brisbane (all up 0.8 percent); Sydney (up 0.6 percent); and Canberra (up 0.4 percent). Prices fell most in Adelaide (down 2.4 percent), followed by Hobart (down 2.1 percent).
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Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Sydney (up 10.6 percent); followed by Melbourne (up 9.1 percent), Canberra (up 7.9 percent); Hobart (up 5.0 percent); Brisbane (up 4.1 percent) and Adelaide (up 2.5 percent). Prices fell in Darwin (down 3.8 percent) and Perth (down by 3.7 percent).
Total returns on capital city dwellings in the year to October rose by 11.2 percent with houses up 11.3 percent on a year earlier and units up 10.9 percent.
Performance of Manufacturing
The Performance of Manufacturing index rose by 1.1 points to 50.9 in October. A reading above 50.0 indicates that the sector is expanding. The index had been above 50 for 13 months up until August 2016 – the longest period of expansion since September 2006.
AIG notes “The rise was driven by stronger growth in exports, sales and new orders, which highlights the growing importance of exports to manufacturers and suggests further growth ahead.”
What is the importance of the economic data?
The CoreLogic Hedonic Australian Home Value Index is based on Australia’s biggest property database. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the CoreLogic Hedonic Index includes all properties. Home prices are an important driver of wealth and spending.
The Australian Industry Group compiles the Performance of Manufacturing Index (PMI) each month. The Australian PMI is the Australian equivalent of the US ISM manufacturing gauge. The PMI is one of the timeliest economic indicators released in Australia. The PMI is useful not just in showing how the manufacturing sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.
What are the implications for interest rates and investors?
Latest data shows that the Australian economy remains in good shape.  
The transition from manufacturing to services in China is proceeding well. The manufacturing sector is tracking sideways while the services sector is taking up the slack and expanding nicely. A case of so far, so good. 
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a> </div>
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Resource states seeing healthier home prices: CommSec's Savanth Sebastian

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GUEST OBSERVER
The Q3 NAB SME Survey suggests a loss of momentum in SME business conditions and confidence but this is against the exceptionally strong results in Q2.
Overall, conditions and confidence remain above their long-term averages which suggest relatively solid levels of underlying activity.
A further narrowing in the gap between conditions experienced by SMEs and larger businesses as indicated by the NAB Quarterly Business Survey suggests that the pace of growth is now more consistent across small and large businesses.
The NAB SME Survey is the leading business survey of small businesses in Australia, and complements the comprehensive Quarterly NAB Business Survey.
It offers a rich repertoire of insights into factors affecting smaller firms’ conditions by state, industry and size, as well as an assessment of their outlook for investment and output.
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However, the base of industries which reported positive conditions shrank in the quarter and this warrants close monitoring for signs of further weakening in the near future. The sustained weakness in retail conditions is of particular concern as it has the potential to affect other affiliated industries such as wholesale and transport.
Meanwhile, we continue to witness strong conditions in tertiary services such as health, business and financial services.
SME business confidence eased marginally in the quarter to +5, but continues to exceed its long-term average of +2.
The fall in SME confidence was in spite of the RBA’s 25bps cut to the cash rate in August, perhaps a reflection of the absence of a sustained depreciation in the AUD despite the rate cut.
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In Q3, business conditions were mixed by state. NSW, Victoria and WA reported relatively stable conditions, SA improved but was still lacklustre, while Queensland deteriorated sharply. The readings for Queensland in particular have been volatile recently so we will need additional information to determine the underlying trend for the state,” said Mr Oster.
NSW and Victoria continue to outperform in terms of conditions, while WA remains the weakest.
The ongoing mining downturn continues to weigh on WA conditions, while the recent improvements in commodity prices have done little to assuage the pessimism of SMEs from the state, with WA continuing to be the least confident state as well. Apart from WA, SA was the only other state to report negative confidence. Meanwhile, NSW, Victoria and Queensland tied in the top spot for confidence at +7 index points.
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SME forward orders rose by 1 point to +4 index points in Q3, which is notably above the long-term average of -1 index points and consistent with the result for general businesses as reported in the QBS.
The generally positive readings for forward orders since late 2013 are broadly in line with a moderate recovery in real economic activity.
By industry, the quarterly movements were mixed. Apart from manufacturing, retail and transport, all other industries reported positive forward orders.
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Forward orders for finance (up 16 points to +17) and health services (up 9 points to +16) jumped by the most in the quarter to record the strongest results, pointing to the continuing outperformance of services sectors.
Forward orders for manufacturing fell the most (down 8 points to -1). Meanwhile, transport and retail, both at -3, were the weakest in the quarter.
This is consistent with the lacklustre conditions and confidence experienced by the retail sector at the moment.
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The SME stock index improved marginally to +5 index points, to be above the long-term average of +2 index points and that of larger businesses indicated by the QBS (at +2).
The improvement was largely driven by business services and health, both rising by 6 points to +13 and 0 respectively.
The stock index for business services was also the highest in the quarter, followed closely by wholesale (down 6 points to +11). The relatively high stock levels reported by the wholesale sector is consistent with a higher capacity utilisation rate and resilient forward orders in the quarter.
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That said, the sharp deterioration in the conditions of larger wholesale businesses as indicated by the QBS could signal an imminent weakening of wholesale SMEs in coming quarters.
Meanwhile, stocks for manufacturing (down by 11 points to +3) and property services (down 9 points to -7) fell by the most in the quarter, with the latter the weakest across industries.
The two consecutive quarterly falls for property services are consistent with a lower transaction volume in the housing market recently.
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The non-seasonally adjusted cash flow index was the strongest in Q3 for financial services (at +24), followed by business services (at +22) and the weakest for transport (-9) and retail (-8).
Overall, SME price indicators point to relatively contained price pressures.
Growth in input costs (purchase costs, overheads and labour costs) have generally eased over the last two years and have contributed to improved margins readings.
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That said, final price growth appears to have lost some momentum in recent quarters – probably indicative of strong downstream competition – and is consistent with a subdued inflation outlook.
Business conditions for SMEs eased by 2 points to +5 index points in Q3, but remain slightly above the long-run average of +4.
Encouragingly, low-tier SMEs continued to report positive business conditions after recording the first positive reading in two years in Q2 to be around its long-term average.
SME conditions are now only marginally below those of general businesses indicated by the NAB Quarterly Business Survey (QBS), but this mostly reflects a notable fall in the conditions of the latter. SME business confidence also eased in the quarter to +5 (from +6 in Q2), but remains above the long-term average of +2.
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Two of the three components that make up SME business conditions fell, with trading conditions (down 5 points to +11) and profitability (down 2 points to +4) both retreating from their recent peaks but continuing to stay above their long-term averages.
Despite a sustained period where trading and profitability conditions exceed their historical average, the employment index was in negative territory for the eight consecutive quarter at -1, which was unchanged from the quarter before.
The lack of momentum in SME employment conditions are seemingly at odds with the relatively more robust reports by general businesses in the QBS, where the employment index has been tracking above long-term average levels since H2 of 2015.
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This possibly reflects the weaker financial capacity of SMEs to hire new employees or a greater difficulty for them to find suitable labour compared to their larger counterparts.
In Q3, business conditions were mixed by state. NSW, Victoria and WA reported relatively stable conditions, SA improved but was still lacklustre, while Queensland deteriorated sharply. The business conditions index for Queensland gave up all its the gains, dropping by 10 points from Q2 to be back at +1 again.
The eastern non-mining states of NSW and Victoria continue to outperform at +13 and +10 respectively, while WA remains the weakest of all states at -14. Despite the sharp fall in conditions, Qld was the only state which reported improved confidence in the quarter (up 2 points to +7) to tie with NSW and Victoria in having the strongest confidence.
Meanwhile, stronger commodity prices in the quarter had done very little to bolster confidence of SMEs in WA, which reported a decline in confidence (down 5 points to - 6) in the quarter to be the weakest of all states.
Most SME industry sectors reported weaker conditions in the quarter, with services sectors continuing to outperform more traditional sectors in general. Similar to Q2, health, finance and business services occupied the top three spots, while transport (at -7) replaced construction (at +2) as the weakest sector, followed by retail (at - 4).
The wholesale sector managed to hold onto its recent gains in conditions to be at +8 index points, a sign that perhaps some of the earlier upstream cost pressures had ameliorated. However, weak growth in wholesale final price suggests that competitive pressures downstream are elevated.
Business confidence by industry paints a more positive picture overall, with more sectors reporting an improvement rather than a decline in the quarter. Apart from property and retail, all other industries recorded positive confidence.
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Somewhat surprisingly, confidence of the property sector suffered the sharpest decline in the quarter to be the weakest across industries, even though dwelling prices continue to grow strongly in major markets of Sydney and Melbourne, and more recently, ACT.
Compared to the larger businesses in the QBS, SME business conditions outperform general businesses in finance, wholesale and property, but are significantly weaker in transport.
Analysis by firm size shows that low-tier SME firms continue to report weaker conditions and confidence compared to their larger counterparts, although the fact that their conditions and confidence indices are positive remains encouraging.
Alan Oster is group chief economist, National Australia Bank, and can be contacted <a href="https://business.nab.com.au/author/alan-oster/" target="_blank">here</a>.
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Property confidence dips as SME business conditions remain upbeat overall: Alan Oster

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Housing affordability is not a new problem, and as the Federal Treasurer Scott Morrison pointed out, it has actually never been easy to buy a home, especially in our major metropolitan areas.
Housing affordability will be an important policy focus of the Turnbull Government. And to try to get it right, the Federal Treasurer gave a 4400 word speech last week to outline some of the issues.
"As we move forward it is important to properly diagnose the problems we are trying to solve," he said. 
He noted when combining both outright ownership and those paying off a mortgage, the proportion of Australian households that own their own home has fallen from 71 per cent to 67 per cent over the past two decades, so there is a certainly a trend there.
He did stress the increase in Australian house prices has largely been driven by fundamental determinants.  
"Australia's housing markets may be expensive, but in aggregate they are substantively sound, reflecting the natural tension between the forces of supply and demand," he said.
I took five nuggets from the speech which are concerning, but which highlight the complexity of it all.
1) Between June 2010 and June 2015, the time taken for a dual income couple to save for a 20 per cent deposit in Sydney increased from 5.8 years to 7.9 years. In Melbourne it increased from 5.3 years to 5.8 years. However, outside NSW and Victoria, the change in the number of years to save for a deposit actually fell, showing the impacts are not even across the country. 
2) Home ownership rates are falling across all age groups, not just young Australians. Between 2002 and 2014, Australian home ownership among 25-34 year olds declined from 38 per cent to 29 per cent while for 35 to 44 year olds it fell from 63 per cent to 52 per cent.
3) When we look at the change in home ownership by state, the largest falls over the last twenty years have been in Queensland and Victoria, rather than NSW.
4) The percentage of purchasing households aged under 44 that are dual income has risen from just over 50 per cent in 1981 to more than 80 per cent in 2011, while the proportion of single income households fell from around 50 per cent to less than 20 per cent over the same period.  
5) The proportion of home owners aged over 45 with a mortgage has increased significantly over the past 20 years. It's taking longer to be free of the mortgage with the trend having the potential to undermine retirement incomes.
Morrison noted the challenge of not being able to access secure housing has flow on effects to many other policy areas. It impacts health, work force participation, social cohesion, welfare dependency, family formation and household consumption to name a few.
Morrison concluded that of all the determinants of house prices in Australia, whether cyclical or structural, "the most important factor behind rising prices has been the long running impediments to the supply side of the market."
Some argue with that conclusion seeking him to look at the impact of overseas migration which was not addressed, although he did note between 2005 and 2010, Australia had the highest average rate of overall population growth in the OECD, except for Israel.  
As there is no single housing market in Australia, there will however never be a single solution.
This article was first published in the Saturday Daily Telegraph.
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Five concerning housing affordability issues

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The 2GB broadcaster Ray Hadley has sold his little-used Toowoon Bay weekender on the Central Coast.
An offer came out of the blue for the beachfront property through McLachlan Partners agent Bruce McLachlan.
The home had four bedrooms, four bathrooms and also a gas heated plunge pool with cabana.
Its expansive ship-like terraces overlook what's been regularly voted NSW's cleanest patrolled beach.
It was bought for $3.5 million five years ago after its design by locals, EDH Architects.
McLachlan had it listed previously with a $3.5 million plus asking price when Hadley and his former wife, Suzanne were in the throws of separating.
Hadley has told mates he intends to keep his Hills district acreage.
Having won 99 consecutive ratings, he doesn't intend slowing down, but will be spending a bit more time on the Gold Coast.
He's bought back in with a highrise two bedder apartment purchase at Main Beach.
Between his Rugby League commentary on Channel 9 and also broadcasting periodically from Brisbane on 4BC, he's set to enjoy some downtime at the increasingly popular Tedder Avenue strip.
He'll no doubt be bumping into fellow Sydneysiders who've increasingly fancied Main Beach for their property forays in South East Queensland.
Business executive Katie Page is nearing completion of her development of the eight storey beachfront tower called M3565.
Mr Apartments himself, Harry Triguboff has owned at Main Beach since 1990.
One of the most recent entrants is Seven Boss Ryan Stokes, who paid $1.2 million in the prized Silverpoint building.
This article was first published in the Saturday Daily Telegraph.
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Little-used Toowoon Bay weekender sold by Ray Hadley

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The CoreLogic October Home Value Index results released today show that capital city dwelling values have reached new record highs in October, with values rising across six of the eight capitals.
CoreLogic research director Tim Lawless said the pace of growth has reduced when compared with previous months, with October dwelling values rising by 0.5 percent, compared with a 1 percent lift in September and 1.1 percent rise in August.
The latest monthly housing market data takes the quarterly change in national capital city dwelling values to 2.7 percent and 7.5 percent higher over the past twelve months.
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Apart from Adelaide (-1.3%) and Perth (-1.5%), every capital city recorded a rise in dwelling values over the past three months, with the Canberra housing market recording the largest increase in values after a 5.6% quarterly rise.
Lawless noted the strong conditions across the Canberra market are largely related to rising house values, with unit values increasing at less than half the pace of detached housing.
Sydney continued as the stand out based on annual capital gains, recording the largest year-on-year increase; dwelling values are now 10.6 percent higher over the past 12 months.
Detached houses (+10.9 percent) are showing only a slightly higher rate of capital gain compared with units (+9.1 percent) across Sydney, highlighting the healthier supply/demand dynamic that exists across the Sydney region for higher density housing.
“This also points to higher demand for Sydney units considering how expensive Sydney houses have become," Lawless said.
"Units generally provide a more affordable option for home ownership and investment for many buyers.”
Lawless noted most other markets, detached housing is generally outperforming the unit sector as concerns around the high number of units available for sale in the market dent buyer confidence, coupled with lending policies for unit stock becoming tighter.
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<img src="/images/2016/11/01/Changes%20in%20dwelling%20values.jpg" alt="">
According to Mr Lawless, the divergence in performance between houses and units is most clearly evident in Melbourne and Brisbane.
The annual rate of capital gains in Melbourne remains strong at 9.1 percent, however there is a substantial difference in growth rates between houses and units, with house values up 9.6 percent compared with a 5.2 percent increase in unit values over the past year.
Brisbane’s housing market has shown a larger capital gain spread, with house values up 4.7 percent compared with a 1.4 percent fall in unit values over the year.
“The weaker performance of unit values across the Brisbane market may be partially attributed to supply concerns, as unit supply levels across key regions of Brisbane’s inner city show the potential for a significantly larger relative increase in existing stock levels when compared with Melbourne and Sydney.”
<a href="/images/2016/11/01/Annual%20changes%20in%20dwelling%20values.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Annual%20changes%20in%20dwelling%20values.jpg" alt="">
The CoreLogic Settlement Risk report is currently tracking approximately 49,000 units that have been approved for construction across the broad Brisbane metro region.
Mr Lawless said while it’s unlikely that all projects will proceed through to commencement, based on the approval numbers across Brisbane, we could see an uplift in existing unit stock which is in excess of 25 percent over the next two years.
Comparatively, in Sydney and Melbourne, the approved unit pipeline is higher at approximately 96,000 over the next 24 months, however the potential stock uplift is much less significant, at 13 percent and 16 percent respectively relative to existing unit stock levels.
According to CoreLogic, another sign of market strength can be seen in auction results.
Auction clearance rates, which are one of the most timely measures of the fit between buyer and seller expectations, have been tracking in the mid to high 70 percent range across the combined capital city markets, with the largest auction markets of Melbourne and Sydney general showing a higher rate of clearance.
Over the past two months, clearance rates across Sydney have dipped below 80 percent only once.
A year ago auction clearance rates were consistently trending around the mid 60 percent range, albeit on volumes that were about 20 percent higher.
<a href="/images/2016/11/01/Gross%20rental%20yields.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Gross%20rental%20yields.jpg" alt="">
Lawless said the strong housing market growth results are continuing to occur on a back drop of low stock levels and low transactional activity.
The latest national listing estimates from CoreLogic show total listing numbers remain 2.6 percent lower than a year ago, with the most substantial drop in listing numbers over the year recorded in Hobart, where there are almost one third fewer homes listed for sale.
Canberra stock levels are 15 percent lower than a year ago and listing numbers in Sydney remain subdued, tracking 9.6 percent lower than last year.
Mr Lawless said low stock levels tend to create a higher level of urgency in the housing market as buyers compete with each other and vendors are less willing to negotiate on prices. This may be one reason why transaction numbers have reduced over the year.
The CoreLogic turnover estimates have recently levelled after trending lower since April 2015, however settled dwelling sales over the three months ending October 31 remain 13.9 percent lower than the same three month period in 2015.
These estimates do not include off-the-plan sales, which, according to Mr Lawless, implies there is likely to be a level of upwards revision in the numbers as the record number of off the plan units move through to settlement.
While dwelling values have broadly risen during October, rental yields in Sydney and Melbourne remain depressed, with gross yields are at record lows.
The typical Sydney and Melbourne house is now providing a gross rental return of just 2.8 percent.
Taking into consideration holdings costs, expenses and vacancy, the net rental yield for houses is likely to be closer to 2 percent in these markets.
Markets where value growth hasn’t been as strong are seeing healthier yield profiles, with Hobart demonstrating the highest gross rental yields of any capital city.
<a href="/images/2016/11/01/Monthly%20settled%20dwelling%20sales.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Monthly%20settled%20dwelling%20sales.jpg" alt="">
Lawless high values, low yields and a mature growth cycle haven’t been enough to deter investors from the market. Housing credit data released by the RBA earlier this week provides some insight into increased demand from the investor segment. Over March 2016, investor housing credit grew by just 0.29 percent and this has consistently increased to 0.62 percent over September. At the same time, credit growth for owner occupier housing has slowed. After peaking at 0.79 percent growth in November 2015, owner occupier housing credit growth slowed to 0.49 percent.”
“While home values are still rising, the rate of growth is slower than it was 12 months ago, however, annual growth remains somewhat heightened, particularly considering this growth phase has now been running for almost four and a half years.
“With ongoing strong value growth and high clearance rates in Sydney and Melbourne, as well debate around affordability gathering some momentum, there is likely to be further caution by the Reserve Bank around future interest rate cuts, which, if it were to occur, may provide additional stimulus for housing markets around Australia."
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Sydney dwelling prices running at 10.6 percent annual growth: CoreLogic 

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Total private credit posted another solid result in September, led by expansion in the housing sector. Of note is the pickup in investor credit, where growth has been accelerating over the past six months. 
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<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.29.21%20AM.png" alt="">
Combined with strength in other indicators, this suggests the housing market remains in good shape.
Housing credit expanded a steady 0.5 percent m/m in September, in line with the trend so far this year. Investor credit rose a solid 0.6% reflecting the recent strength in investor finance approvals after last year’s regulatory-induced slowdown.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.31.06%20AM.png" target="_blank">Click to enlarge</a>
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This is the strongest growth for the segment since August 2015, and provides further evidence (along with the recent pickup in house prices and auction results) that sentiment in the housing market remains positive.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.32.09%20AM.png" target="_blank">Click to enlarge</a>
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Business credit posted a mild increase in September, but growth continues to slow. This is in line with the ongoing slowdown in new finance approvals (Figure 2), and is likely to remain the case in coming months. Meanwhile, personal credit contracted for the 10th month in succession, and now sits 1.3 percent lower than a year ago.
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<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.33.34%20AM.png" alt="">
Although consumer confidence sits at elevated levels and household consumption is still ticking along, individuals appear cautious of taking on new (non-housing related) debt. 
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
Daniel Gradwell is economist, ANZ and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
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Australian housing credit still rising, led by investors: ANZ

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.

&nbsp;

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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