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All the attention has been on Shane Warne's $14 million plus buy-back in Brighton, so the bayside's second highest sale has gone through the slips.
It has emerged that the travel industry veteran Andrew Burnes, who heads Helloworld, and his wife Cinzia, have recently spent $13.5 million on a 1910 home.
They head a network of more than 1600 travel agencies which is an amalgamation of Harvey World Travel, American Express Travelscene, Jetset, and AOT, the travel firm he founded.
The home was marketed by JP Dixon as one of the last great period estates of the Golden Mile, although the slate-roofed, red-brick Edwardian home, with a glass-tiled pool and grass tennis-court on 2460 sqm does have a James Rigney contemporary update amid Paul Bangay gardens.
It had been home of the late Vince Chiodo who sold motorcycles. 
Burnes, who co-founded the Australian Outback Travel firm in 1987 is the honorary treasurer of the federal Liberal Party.
This article was first published in the Weekend Australian Mansion Australia property section. 
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jchancellor-FAypfDUnLy

HelloWorld boss buys in Brighton

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The Blue Mountains home, known as the Invisible House, has been listed for $9 million set among glorious eucalypts.
The home was named 'Australian House of The Year' in 2014 and is currently on the shortlist for the Royal Institute of British Architects (RIBA) ‘International Building of the Year’.
Kangaroos, wombats and wallabies, and a diverse range of birdlife, abound at the property perched on a ridge, 1170 metres above sea level.
With views across the Megalong and Kanimbla Valleys, it was named Australian house of the year in 2014, and is shortlisted for this year’s prestigious Royal Institute of British Architects International Prize after its design by architect Peter Stutchbury.
<a href="https://www.modernhouse.co/listings/invisible-house/" target="_blank">The Invisible House at Hampton</a> was commissioned by the filmmaker Alex Proyas who recently released Gods of Egypt.
The 65-hectare site overlooking the Megalong Valley was bought in 2005 for $760,000. 
The three-year build is set into the ridge line, with a floor plan of a four-bedroom, three-bathroom residence on the western slopes of the Blue Mountains, between Oberon and Hampton.
It makes a feature of its concrete, Mudgee stacked stone, steel and hoop pine building materials amid the 428 sqm internal space.
Marcus Lloyd-Jones, of Modern House, is taking expressions of interest on 2493 Jenolan Caves Road, Hampton.
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The $9 million asking price for the Peter Stutchbury-designed Invisible House

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<img src="https://counter.theconversation.edu.au/content/67711/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Readers will appreciate the strong link between inflation (the Consumer Price Index), Reserve Bank interest rate policy, and the Australian dollar.
Inflation has been stubbornly low. The RBA has a 2-3 percent target, but they have been missing that on the low side for an extended period. Wednesday’s release saw a 0.7 percent rise for the September quarter, still only an annual rate of 1.3-1.5 percent (depending on which volatile components get stripped out).
Nonetheless, that was roughly in line with expectations and certainly not as bad as it could have been. Markets reacted accordingly, sending the Aussie dollar roughly half a cent higher. That means a Melbourne Cup day rate cut by the RBA looks less likely.
But the interesting wrinkle is that a higher dollar puts downward pressure on deflation. Plus, the RBA has been quite explicit about being concerned about too high a dollar for export competitiveness. So it might actually suggest a cut early next year. Welcome to the weird world of modern macroeconomics.
Housing supply is also top of mind, with September new home sales to be released this week. 
Showing concern about affordability and supply, NSW Finance Minister Dominic Perrottet floated a plan to move away from stamp duty to a land-tax-based system. 
Stamp duties are an economic nightmare of a tax. They distort the balance between supply and demand – meaning people often don’t move when they otherwise would. Nothing ruins an economist’s day more than a misallocation of resource caused by a stupid policy. Land taxes, by contrast, are far more efficient: creating far less distortion for the same amount of revenue generated.
More needs to happen on the supply side to help solve the housing affordability crisis. My McKell Institute plan would gradually phase out negative gearing other than for new properties – and would make for a nice complement to stamp duty reform.
<h2>All eyes on the US… election</h2>
In the US, consumer confidence figures released this week with the Conference Board’s index dropping to 98.6 in October, down sharply from 103.5 in September.
The reason that this is so consequential is that consumer spending accounts for more than two-thirds of US demand. Weaker consumer confidence means the prospect of lower economic growth. That in turn could affect the Fed’s decision-making.
Right now there is some difference of opinion among members of the Federal Open Market Committee (FOMC) that sets monetary policy. That may be in part due to some people campaigning for jobs in a Clinton White House – but it also partly reflects the genuinely complicated set of circumstances faced by advanced economies around the world.
Of course, the biggest news of all will come from the US Presidential election on November 8. Hillary Clinton appears almost certain to win – bookies are already paying out bets. There is also a strong possibility of Democrats winning back control of the Senate (the Upshot folks at the New York Times have it at 64% at the time of this writing).
That would be hugely consequential for the appointment of the next Supreme Court Justice. I will write more about this another time, but in a recent academic paper with Michaele Keane (from UNSW and Oxford) and Matthew Lilley (from Harvard) we showed that the ideological position and voting direction of a justice affects those of other justices. To give you a rough idea, we estimate that replacing the late Justice Scalia with Judge Merrick Garland (President Obama’s nominee) would make each other justice 5.1% more likely to vote liberal on a given case.
The US Presidential race is very important, but the Senate outcome matters, too.
Richard Holden is professor of economics and PLuS Alliance Fellow, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>.
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Melbourne Cup day rate cut less likely

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Conditions in the housing market have been mixed across Australia this spring, though the new RBA Governor Philip Lowe has suggested some of the Sydney property market has seen "brisk" price increases.
"It is a complex picture," he noted given prices were still falling in some capitals.
"There remained considerable uncertainty about momentum in the labour and housing markets," the latest RBA minutes advised.
This mixed bag was being watched closely by the RBA board members as they figure out if there's another rate cut yet to come for the nation.
Lowe advised the board had assessed the rapid growth in housing prices and concluded the overall risks had receded over the past year.
But I'd suggest the shortage of stock this spring has actually put many of Sydney's suburban markets into risky top gear.
The regularly high clearance rates, the pre-auction sales and the speed of private treaty sales are showing no signs of slowing.
The eastern suburbs auction success rate sits above 90 percent, while across Sydney it sits around 80 percent.
The days on market for both Sydney houses and units is at near record lows of 27 days before their private treaty sale.
The pre-auction BresicWhitney sale of a Leichhardt warehouse conversion highlighted the trend of vendors pocketing more than they dreamed off.
With 11 registered bidders in June last year, after 40 contracts were issued, a $1.55 million sale was secured when it was still operating as a sign-writing business.
The property returned to the market last month with a mezzanine bedroom level and a splash of paint.
It was marketed with $1.8 million hopes and sold before last weekend's scheduled auction at $2.1 million.
That's $550,000 more - reflecting near 25 percent price annualised growth.
This month there was also a snappy pre-auction sale - after just four days on market - by the fashion designer Collette Dinnigan and her hotelier husband Bradley Cocks at Watsons Bay.
Last traded at $6.25 million 18 months ago, she secured well in excess of the $8 million being sought through Ben Collier at McGrath Estate Agent for the classic Beaux-Arts style home. Perhaps even $9 million.
He was out the front of Saturday's cancelled first open for inspection when I turned up for a look, advising intending inspectees of the overnight sale at an undisclosed price.
When it was last sold at $6.25 million in 2015 Matthew 'Ched' Csidei and his lawyer wife Lauren Roscoe, had sought $8 million too, but it took them over 200 days to secure their sale.
All this staggering price growth at a time when wages growth is low.
Infact research by the RBA and the Australian Bureau of Statistics shows a dramatic fall in the size and frequency of wage gains in recent years.
Six years ago, almost 40 per cent of the 18,000 individual job categories tracked by the ABS received a wage increase in excess of four per cent.
Over the last year, less than 10 per cent of jobs got this type of wage increase.
Around half had a wage increase of between two and three percent.
Recent Roy Morgan research showed that more than two-thirds of mortgages to owner-occupiers were held by households with two incomes.
This poses huge risks if one of the incomes disappears or is even reduced.
The loss of one of the incomes was calculated as having a bigger impact than a doubling in interest rates.
Let's just hope we can keep both these scenarios out of the economic equation.
This article was first published in the Saturday Daily Telegraph.
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Sydney's speed and price growth is sometimes staggering

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<img src="https://counter.theconversation.edu.au/content/63187/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
China has a debt problem. But research shows that it’s not the industrial sector or state-owned enterprises (SOEs) to blame but the booming private property market.
The global financial crisis illustrated how debt problems in one part of the world (in this case the US and Western Europe) could have widespread negative consequences. As China is now the world’s top goods trader, second largest economy and third biggest credit nation, a debt meltdown there would have harmful effects well beyond its borders. 
The latest data from the Bank of International Settlements shows that since 2008 China has been responsible for nearly one in two dollars of new borrowing globally. China’s debt has reached 254.9% of GDP, up from 147% at the end of 2008. That’s even higher than in the US, where per-capita incomes are nearly four times greater. 
Two-thirds of China’s debt is accounted for by corporates, while the remainder is in the hands of governments and households. Many commentators blame inefficient and loss-making SOEs for the problem, particularly those in the construction sector and areas of industrial overcapacity such as steel. 
Recent research using survey data from China’s National Bureau of Statistics confirms businesses in steel, coal and electricity have indeed got increased debt levels, relative to their own equity and assets. But when expressed as a proportion of GDP this increase has been small and mostly offset by firms in other parts of the industrial sector with falling debt levels. 
Relative to GDP, between 2008-2015 the debt of industrial firms rose by just 4.4 percentage points, while those in construction increased by 7.0 percentage points. Towering above both was businesses in the real estate sector, where debt leapt by 29 percentage points. 
So while it might be true to say that construction and an over-producing industrial sector are contributing to China’s debt problem, they aren’t the main drivers.
How real estate and private firms are driving debt in China
A recent chapter by economists at the Reserve Bank of Australia (RBA) looked at data from Chinese listed companies and came to similar conclusions. 
Industrial firms (manufacturing, utilities and mining) subtracted from rising overall debt levels from 2008-2015. 
Between 2008-12 it was construction firms that were mostly responsible. Since then it has been businesses in real estate. 
In terms of how debt is held between state and private firms, survey data shows within the debt-laden real estate sector, private developers have been increasing their debt levels, while those of state developers have been falling. 
Across all sectors, state-owned or controlled businesses accounted for three-quarters of the increase in overall debt levels between 2008-2012, evidence from listed companies reveals. But since then these businesses have actually subtracted from rising debt levels, leaving private firms entirely responsible. 
What China’s government can do about it
China’s overall debt trajectory is unsustainable. Research from the International Monetary Fund (IMF) finds that very few countries have experienced a similar rapid build up of debt and escaped without an eventual bust. 
The question for the country is how to reduce the reliance of corporations on borrowing while still maintaining a robust rate of economic growth. 
If state banks throwing good money after bad at SOEs in construction, coal, steel and so on is the problem, then the policy prescription is clear. 
In August, deputy managing director at the IMF, David Lipton argued: 
“To tackle the problem, the Chinese government must, in the words of Premier Li Keqiang, "ruthlessly bring down the knife [on] zombie enterprises”,…It is especially important to restructure SOEs. Many are essentially on life support.“
SOE reform is undoubtedly valuable but alone is unlikely to solve the problem. This is because the big driver, particularly in recent years, appears to be increasingly speculative behaviour by those in the real estate market. 
On the supply side, this has often involved private developers, albeit sometimes with minority state shareholders, while the demand side is comprised of households. The fact that the private sector looms large in China’s debt in some ways makes the problem more complicated to deal with. 
Direct administrative measures such as forcing a merger between a weak state firm and a stronger one may not be possible with private sector players because the government does not own or control these companies. 
At the same time, the unemployment created by the collapse of a large private company would not be attractive for a government obsessed with social stability either. 
Adding further complexity for China’s regulators is that sometimes households do not buy real estate assets directly but instead do so via financially engineered wealth management products, sold by financial institutions. 
The growing importance of mortgage lending in China also creates a potentially destructive link between any problems in the housing market and the stability of the financial system more generally. 
When house prices began to fall in the US in 2006, banks were left with massive bad debts as households defaulted on their mortgages. That said, downpayment requirements in China tend to be high relative to other countries, providing banks with some degree of protection. 
In weighing up China’s debt outlook, another positive consideration is that the household debt to GDP ratio in China is only 40.7%, compared with 78.4% in the US and a whopping 125.2% in Australia. 
Still, given the central role that real estate and the private sector play in China’s debt challenge, moves by the Chinese government to curb property market speculation should be welcomed. Similarly, tighter rules on wealth management products also make good sense, such as limiting the involvement of smaller banks that have less capital to offset potential losses.
James Laurenceson is deputy director and professor, Australia-China Relations Institute (ACRI), University of Technology Sydney and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/james-laurenceson-203" target="_blank">here</a>.
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Private property developers are really driving China’s debt: new research

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Gina Rinehart's desire to secure Australia's largest landholder, cattle company S.Kidman &amp; Co with a Chinese investor, has prompted her to bid higher after they were being challenged by an all-Australian syndicate.
The $386.5 million offer topped the $386 million offer from wealthiest graziers including BRW Richlisters Tom and Pat Brinkworth and Sterling Buntine.
The Australian reports Rinehart is closer to securing the S. Kidman &amp; Co pastoral empire with the company’s board unanimously backing an increased offer.
The Rinehart bid comes via Australian Outback Beef (AOB), a consortium two thirds controlled by mining magnate Gina Rinehart, and a Chinese business partner, Shanghai CRED.
Their bid does not include Anna Creek, a property in South Australia that raised national security concerns when Chinese interests tried to buy the Kidman properties last year.
BBHO, comprising four of the nation's wealthiest outback cattle and transport families are offering $386 million, for all the properties including Anna Creek.
The local bid would avoid scrutiny by Australia's Foreign Investment Review Board given BBHO's directors, Viv Oldfield, Tom Brinkworth, Sterling Buntine and Malcolm Harris, represent some of the most prominent names in the outback.
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Gina Rinehart raises offer to outbid her rivals for S. Kidman & Co farms

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A Caltex service station in the Central Coast town of Woy Woy has fetched $2.98 million at a recent auction.
Ray White Commercial sold <a href="https://www.realcommercial.com.au/property-retail-nsw-woy+woy-502107462" target="_blank">62-68 Memorial Ave</a> to a private investor for an annual return of 8.1%.
Its net rent was put at $243,000.
There was a lease in place until 2023 with three five-year options available.
It last sold at $200,000 in 1997.
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Woy Woy Caltex sold at $2.98 million

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The latest Master Builders Survey of Building and Construction shows industry sentiment holding up, despite a recent deterioration in some of the leading indicators. 
Matthew Pollock, housing national manager said there had been a bounce in sales contracts and a loosening of skills shortage constraints. 
“By sector, house builders for detached housing were the most positive, particularly in New South Wales, Victoria and Queensland where strong population growth continues to support a healthy pipeline of work-on-the-books," he said.
"These results show that while activity in inner-city apartment markets may drop off over the next two years, broader industry sentiment remains positive,” he said in reference to the September quarter issue of Master Builders quarterly National Survey of Building and Construction. 
“Sentiment here is supported by ABS statistics which show residential construction work holding up - up by 1.2 per cent in the June quarter 2016 to be 6.6 per cent up on over the year"
“But areas of vulnerability remain,” he said.
“Non-residential builders have lowered profit expectations and non-residential work-on-the-books is soft. Typically, these are good leading indicators for industry prospects, with the current results pointing to a slower period for the nation’s non-residential builders,” Matthew Pollock said.
“The CBD office markets in Perth and Brisbane remain a lingering weight on broader sectoral business conditions as the resource boom hangover continues to cast a long shadow. Other pockets of vulnerability include inner-city apartment markets, and pretty much the entire engineering construction sector,” he said.
“In terms of employment, the survey shows labour availability has loosened across the board, with all construction related occupations covered in the survey showing index values of below 50,” he said.
The loosening of labour market conditions is good news as long as building activity holds steady, but less positive prospects going forward may pose a risk to employment.
"Jobs may be at risk if building activity was to deteriorate beyond current market expectations,” Matthew Pollock said.
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Inner-city apartment markets have a vulnerability: Master Builders

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APRA has told banks they should make sure new borrowers can repay their debts with mortgage rates of at least 7 percent.
The foreshadowed guidelines have confirmed already widely followed practice across bank mortgage lending.
The Australian Prudential Regulation Authority updated its industry guidance to ensure banks are "prudent" in managing risks in the $1.5 trillion mortgage market.
APRA is now being more specific in demanding minimum interest rates banks must use when approving customers for home loans.
It continues the crackdown commenced in late 2014.
While the banks advertise home loan interest rates well below 4 percent for new customers, APRA said a "prudent" bank would have an internal assessment rate of at least 7 percent.
APRA is also seeking banks must "scale" their cost of living indexes according to a borrower's income.
For instance, it says that even if a borrower does not have housing costs because they live with their parents, banks should still make a "reasonable estimate" of what their housing costs would be if they had to pay for housing.
The policy also specifies the minimum "haircuts" banks should make to non-salary income.
It says banks should apply a haircut of at least 20 per cent to non-salary forms of income – including bonuses, overtime, or rent from investment properties – when they are assessing a loan application.
The Australian Prudential Regulation Authority released for consultation revisions to Prudential Practice Guide APG 223 Residential mortgage lending to incorporate measures either announced by APRA in December 2014 or communicated to authorised deposit-taking institutions (ADIs) since that time.
APRA has also released for consultation with ADIs proposed new reporting requirements for residential mortgage lending data.
APRA does not expect the revisions to APG 223 to result in material changes to existing lending practices for ADIs.
The revised APG 223 does include more detailed guidance on the following areas:
<ul>
<li>quantitative serviceability parameters including the application of interest rate buffers and floors,</li>
<li>haircuts for non-salary income such as rental income,</li>
<li>treatment of interest-only loans and estimation of living expenses; and</li>
</ul>
other qualitative measures including meeting responsible lending obligations, monitoring serviceability policy overrides, and treatment of self-managed superannuation fund loans and other specific loan types.
Released on 5 November 2014, APG 223 summarises APRA’s expectations for sound residential lending practices, including guidance on addressing housing loan credit risk within an ADI’s risk management framework and applying sound loan origination criteria, verification procedures and security valuation methods, among other things. 
On 9 December 2014 APRA announced further steps to reinforce sound residential mortgage lending practices — the revisions to APG 223 incorporate the serviceability requirements that were announced in December 2014 and reflect APRA’s supervisory experience in the subsequent period.
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APRA tightens home loan lending policy including cost of living calculations

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Bromley, affectionately known as the landmark Hamilton Hill home that businessman Christopher Skase built, has been listed for sale again in disgrace.
The hotel-like residence on Dickson Terrace was constructed by Skase and his wife Pixie in 1988 who quit Australia for Majorca in 1991.
The current co-owner, Sir Yii Ann Hii is in a $64 million battle with the tax office.
It was bought with his wife, Soo Hian Beh. They got around town in a with 1VIP numberplates on their 2005 Rolls Royce Phantom.
Set around the medieval circular staircase as 50ft internal Bell tower, they paid $6.25 million for the already palatial residence in 2001.
Offers close November 25 with Andrew Murray at Murray &amp; Associates.
This article was first published in the Weekend Australian Mansion Australia property section.
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Bromley the Hamilton Hill former Skase home listed

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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