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ASIC has cancelled the Australian Financial Services (AFS) licence of Western Australian-based Macro All State Investments &amp; Securities Limited (Macro).
In general, the Macro AFS licence allowed Macro to:
<ol>
<li>provide general financial product advice;</li>
<li>deal in a financial product, issue or vary a financial product;</li>
<li>apply for, acquire, dispose of financial products on another's behalf;</li>
<li>operate a managed investment scheme, and</li>
<li>provide a Custodian or Depository service.</li>
</ol>
The directors of Macro included Ms Desiree Veronica Macpherson. 
ASIC obtained various ex parte interim orders in the Perth Federal Court on 21 July 2016 in part restraining Ms Macpherson and various companies that she was a director of, including Macro, from providing financial services advice, dealing in financial products, promoting financial products and otherwise carrying on a financial services business (see: <a href="https://asic.gov.au/about-asic/media-centre/find-a-media-release/2016-releases/16-258mr-asic-obtains-court-travel-restraint-and-asset-preservation-orders-against-west-australian-property-developer-and-macro-realty-group-of-companies/" title="16-258MR ASIC obtains court travel restraint and asset preservation orders against West Australian property developer and Macro Realty Group of companies">16-258MR</a>).
Section 915B(3)(d) of the Corporations Act 2001 states ASIC may suspend or cancel an AFS licence held by a body corporate by giving written notice to the body, if the body lodges with ASIC an application for ASIC to do so, which is accompanied by any documents required by regulations.
ASIC's investigation is continuing into the activities of Ms Macpherson and various companies of which she has been a director.
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ASIC cancels Desiree Macpherson's Macro financial advisory licence 

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GUEST OBSERVER
Planning on listing your property on Airbnb? Here are a few things to consider before you do. 
1. Location of your property and potential demographic of your guests
Guests usually plan to stay close to the centre of activity and culture they would like to experience. For example if your property is near a stadium, there’s a high chance your guests may be attending sports events. Think about the biggest demographic of sports attendees and ask yourself the extent of behaviour you would tolerate in your property. 
2. De-risk your home against bad apples
You can request a security deposit prior to the guest’s arrival. Be wary of Instant Bookings, as this does not give you the opportunity to review the guest before they book in their stay. As a final precaution, have your guests sign a contract before they arrive. This can clearly lay out the check-in and check-out dates and times, rules of conduct, deposit refund or any other concerns you may have. While it may put off some guests, those who have nothing to hide should have no problems with signing it. 
3. Make sure your home is safe for occupation
When leasing out your property, it is your property manager's role to ensure the safety of the premises are kept. If you're putting up an Airbnb listing, this responsibility falls on you. You'll need to check that the smoke alarms are working and that heaters (if any) have been serviced in the last 2 years. Make sure that all doors and locks work smoothly in the event that evacuation is necessary. 
While Airbnb does not conduct any routine inspections on the safety of your property, it's a simple favour you are doing your guest that may save their life. 
4. Check your home insurance coverage for accidents or damage
You’ll need to fully insure your home against the risk of irresponsible guests causing major damage, as seeking damage compensation from Airbnb is difficult. Read the fine print of Airbnb’s Host Guarantee, and don’t assume it will protect you fully. It also does not cover a refusal to vacate.
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5. Long term Airbnb stays could turn your guest into a legal tenant
According to Consumer Affairs Victoria, if your Airbnb guest resides in your property for more than 90 days, they legally gain the rights as a tenant. This means that in the unlikely event that they refuse to vacate after that period, you will need to follow the same eviction procedure through VCAT as a landlord would, costing you significant time and money. 
6. Airbnb income is taxable
Airbnb provides a good source of cash flow for owner occupiers who are still paying off their mortgage. Bear in mind that your Airbnb income is classified as a taxable gain, as the ATO will have your information on hand already. Depending on the length of time you’ve resided at your property, and the length of time you’ve hosted part of your property on Airbnb, you may be liable to pay a portion of capital gains tax. 
7. Your ratings and reviews are your “open for inspections” 
To maximise the occupancy rate of your property, it’s essential that you maintain a high rating by providing your guests with a great experience, so that they are happy to leave a positive review. We would recommend to maintain at least 4.5 stars to remain competitive. Keep your property clean and restocked after each stay. Be honest in your description of your listing, as you’ll be rated for accuracy. 
8. Guests look for a trustworthy host, not just a room
Beautiful photographs, a friendly host profile photo and personal statement will build trust immediately. When there’s nothing hide, there’s nothing to be afraid of. Remember that, while you are risking your property, your guests risk themselves. They are looking for someone credible whom they are comfortable staying with. 
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Must-knows for new Airbnb hosts: Secret Agent

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GUEST OBSERVER
The New South Wales Government is finally biting the bullet on rewriting the Building Professionals Act, the law governing the way buildings in the state are certified and deemed to be fire safe.
The decision follows the fatal 2012 Bankstown fire in an apartment block which had a litany of certification problems and a subsequent government review of the building certification process.
A young woman who was forced to leap from a window on the burning fifth storey of the Euro Terrace apartments died, with another young woman badly injured. When the NSW Deputy Coroner investigated the circumstances of the death he found significant failings in the current regulation of fire protection equipment and systems.
The building was 10 centimetres short of the 25-metre height where sprinklers become mandatory in units. The Deputy Coroner said sprinklers in the unit would have given the two women time to be rescued.
The inquest heard evidence that fire safety problems with the building had been identified in 2010 but nothing substantial had been done to improve it by the time of the fire.
The government then commissioned the review by former Treasury Secretary Michael Lambert who found practices for ensuring apartment fire safety were “totally ineffectual” and had led to the approval of unsafe buildings.
The government is finally acting on his report from last October, which was highly critical of the way in which commercial and apartment buildings in NSW are certified and deemed to be fire safe.
One of the changes recommended is more frequent audits and checks against building owners choosing and paying for their own certifiers.
This is long overdue. These arrangements create a conflict of interest. Allowing owners to choose and remunerate their certifier has the potential for abuse. Certifiers may choose to look the other way when the building owned by a developer who is paying them regularly has a fault which needs rectification.
There is also the issue of the skills of the certifiers. There is an absence of required qualifications and accreditation of people carrying out critical life-saving fire protection work which must be addressed. There needs to be regulation surrounding the accreditation of people working in the fire protection industry.
The owners of apartment buildings must be aware they have a role to play in keeping their building fire safe. They must be educated around the need to maintain and comply with fire standards.
This means ensuring their buildings have effective fire maintenance schemes with detection systems and other fire safety installations, such as extinguishers, hoses, exit lights and fire doors well maintained and up-to-date. Access to fire escapes must be clear at all times, with appropriate evacuation signage directing residents to exits.
Managing agents are accountable for the buildings they oversee, ensuring that fire safety standards are upheld and the fire risk assessment needs to be periodically reviewed.
Each year a qualified person such as a fire engineer or building surveyor must inspect the fire safety measures and provide a Fire Safety Installation Certificate to the owners. The annual Fire Safety Statement must be provided to the council and the NSW Fire Brigades, and must be prominently displayed in the strata building.
There are a number of older buildings which may not currently be subject to these requirements. However, many of these buildings will be subject to a development consent, construction certificate or fire safety order at a future date which may incorporate these requirements.
It is up to owners and managing agents to ascertain what is required. For older buildings that have not had a Fire Safety Schedule, a fire safety consultant can be engaged to conduct an audit on the building, to report on what is there and to suggest upgraded fire safety measures.
There is now greater emphasis on the records and evidence required by building owners to demonstrate regulatory compliance.
The New South Wales government says it will pursue more than 70 suggested changes. We look forward to their implementation.
Matthew Wrigley is managing director and licensee in charge of Perpetual Strata Management and can be contacted <a href="https://perpetualstrata.com.au" target="_blank">here</a>.
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Property 101: Building certification under the blowtorch

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<img src="https://counter.theconversation.edu.au/content/66828/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
When Tim Dunlop, from the Centre for Advancing Journalism at the University of Melbourne, started to research the future of work, his economist friends pointed to all the research showing there will still be jobs.
A few years later and Dunlop isn’t so sure. His book, “Why the Future is Workless”, unpicks the research into everything from machines learning to do our jobs to the idea of governments paying us all a universal basic income.
Dunlop outlines three possible scenarios off the back of all this evidence but he is most convinced that the economy, as we know it, will change dramatically. Costs will be lower, machines that learn will be able to do the jobs we do now, and, if we get the politics right, people will be free to pursue any endeavour they want to.
Rather than fear this future, Dunlop suggests there may be value in embracing it.
To listen to the interview in full, <a href="https://theconversation.com/business-briefing-why-the-future-is-workless-66828?utm_medium=email&amp;utm_campaign=Latest%20from%20The%20Conversation%20for%20October%2012%202016%20-%205783&amp;utm_content=Latest%20from%20The%20Conversation%20for%20October%2012%202016%20-%205783+CID_7a3e515085065110fe029595ff9c68e4&amp;utm_source=campaign_monitor&amp;utm_term=Business%20Briefing%20why%20the%20future%20is%20workless" target="_blank">click here</a>.
Jenni Henderson is Melbourne editor, Business and Economy, The Conversation, and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here</a>.
Tim Dunlop is subject convenor, Centre for Advancing Journalism, University of Melbourne and author for The Conversation. He can be contacted<a href="https://theconversation.com/profiles/tim-dunlop-206944" target="_blank"> here</a>.
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Why the future is workless

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GUEST OBSERVER 
Expensive housing and high household debt leave Australian housing vulnerable. But without a recession or much higher interest rates a property crash is unlikely.
However, the surging supply of apartments and the continuing strength of the Sydney and Melbourne property markets pose an increasing risk. Average dwelling prices in these cities are likely to see another cyclical 5-10 percent price downswing around 2018, with unit prices in oversupplied areas likely to decline 15-20 percent.
The combination of high house prices, huge gains in Sydney and Melbourne, low rental yields and a coming surge in the supply of apartments mean property investors need to be careful. Best to focus on undersupplied, less loved parts of the property market. 
Housing matters a lot in Australia. Having a house on a quarter acre block is part of the "Aussie dream". Housing is a popular investment destination. And the housing cycle is a key component of the economic cycle and closely connected to interest rate movements.
But in the last 15 years or so it has taken on a darker side as a surge in house prices that started in the late 1990s has led to poor affordability and gone hand in hand with surging household debt. Reflecting this, predictions of an imminent property crash bringing down the Australian economy have been repeated ad nauseam since 2003.
This note looks at the risks of a property crash, particularly given the rising supply of units, implications from the property cycle for economic growth and how investors should view it.
High house prices and high debt
The big picture view on Australian residential property is well known. First, Australian housing is expensive. According to the 2016 Demographia Housing Affordability Survey the median multiple of house prices in cities over 1 million people to household income is 6.4 times in Australia versus 3.7 in the US and 4.6 in the UK. In Sydney it’s 12.2 times and in Melbourne it’s 9.7 times.
The ratios of house price to incomes &amp; rents are at the high end of OECD countries and have been since 2003.
Second, the surge in home prices has gone hand in hand with a surge in household debt, which has taken Australia’s household debt to income ratio from the low end of OECD countries 25 years ago to now around the top. This can be seen in the next chart which shows the deviation in the house price to income ratio against its long term average for Australia against the ratio of household debt to income. The shift to overvaluation and high debt mostly occurred over the 1995-2005 period. 
<a href="/images/2016/10/13/Screen%20Shot%202016-10-13%20at%209.09.15%20AM.png" target="_blank">Click to enlarge</a>
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How did it come to this?
While it’s common to look for scapegoats to blame for high home prices and debt the basic driver looks to be a combination of the shift from high to low interest rates over the last 20-30 years which has boosted borrowing and buying power and the inadequacy of a supply response (thanks to tight development controls, restrictive land release and lagging infrastructure) to suppress the resultant rise in the ratio of prices to incomes.
The following chart shows a cumulative shortfall of over 100,000 dwellings relative to underlying demand had built up by 2014. 
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A home price crash remains unlikely
The surge in prices and debt has led many to conclude a crash is imminent. But we have heard that lots of times over the last 10-15 years. Several considerations suggest a crash is unlikely.
First, we have not seen a generalised oversupply and at the current rate we won’t go into oversupply until around 2017-18.
Second, despite talk of mortgage stress the reality is that debt interest payments relative to income are around 2004 levels.
Third, Australia has still not seen anything like the deterioration in lending standards seen in other countries prior to the GFC. In fact in recent years there has been a decline in low-doc loans and a reduction in loans with high loan to valuation ratios. 
<a href="/images/2016/10/13/Screen%20Shot%202016-10-13%20at%209.12.51%20AM.png" target="_blank">Click to enlarge</a>
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Finally, it is dangerous to generalise. While property prices have surged 60 percent and 40 percent over the last four years in Sydney and Melbourne, they have fallen in Perth to 2007 levels and have seen only moderate growth in the other capital cities.
But the risks on the unit supply front are a concern
To see a property crash - say a 20% plus average price fall - we probably need to see one or more of the following:
A recession – much higher unemployment could clearly cause debt servicing problems. This looks unlikely though.
A surge in interest rates – but rate hikes are unlikely until 2018 and the RBA knows households are more sensitive to higher rates so it’s very unlikely rates will reach past highs. 
However, the risks on the supply front are clearly rising in relation to apartments where approvals to build more apartments are running at more than double normal levels. 
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Due to the rising supply of units, vacancy rates are trending up &amp; rents are stalling, making property investment less attractive.
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Outlook 
Nationwide price falls are unlikely until the RBA starts to raise interest rates again and this is unlikely before 2018 at which point we are likely to see a 5% or so pullback in property prices as was seen in the 2009 &amp; 2011 down cycles. Anything worse would likely require much higher interest rates or recession both of which are unlikely. However, it’s dangerous to generalise: 
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Sydney and Melbourne having seen the biggest gains are more at risk and so could fall 5-10% around 2018. 
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Price growth is likely to remain negative in Perth and Darwin as the mining boom continues to unwind but this should start to abate next year. 
The other capitals are likely to see continued moderate growth and a less severe down cycle in or around 2018. 
But units are at much greater risk given surging supply and this could see unit prices in parts of Sydney and Melbourne fall by 15-20% as investor interest fades as rents fall. 
The property cycle and the economy 
Slowing momentum in building approvals points to a slowdown in the dwelling construction cycle ahead. While this might be delayed into 2017 as the huge pipeline of work yet to be done is worked through, slowing dwelling investment combined with a slowing wealth affect from rising home prices mean that contribution to growth from the housing sector is likely to slow. However, as this is likely to coincide with a fading in the detraction from growth due to falling mining investment and commodity prices it’s unlikely to drive a slowing in the economy. 
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However, a likely decline in rents (as the supply of units hits) will constraint inflation helping keep interest rates low for longer. 
Implications for investors 
There are several implications for investors: 
Firstly, over the very long term residential property adjusted for costs has provided a similar return to Australian shares.
Its low correlation with shares, lower volatility but lower liquidity makes it a good portfolio diversifier with shares. So there is clearly a role for property in investors’ portfolios. 
<a href="/images/2016/10/13/Screen%20Shot%202016-10-13%20at%209.23.09%20AM.png" target="_blank">Click to enlarge</a>
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Secondly, there remains a case to be cautious regarding housing as an investment destination for now. It is expensive on all metrics and offers very low income (rental) yields compared to other growth assets. This means a housing investor is more dependent on capital growth. 
Thirdly, these comments relate to housing in aggregate and right now it’s dangerous to generalise. Apartments in parts of Sydney &amp; Melbourne are probably least attractive but for those who want to look around there are pockets of value. 
Finally, investors need to allow for the fact that they likely already have a high exposure to Australian housing. As a share of household wealth its nearly 60%. Once allowance is made for exposure via Australian shares it’s even higher. 
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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The Australian housing market - Shane Oliver on the surging unit supply, the economy and what it all means for investors

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GUEST OBSERVER
The NSW Liberal-National Coalition government has just passed new laws to sell the state’s Land Registry to private interests.
Prosper is bitterly opposed to this sale and has spoken out against it repeatedly.
This is a core government function: “Each state and territory has a central register of all land in the state which shows the owner of the land. The land title is the official record.”
Land holding in Australia is a legally enforceable contract between individuals and government – usually described as The Crown to emphasise its ultimate sovereignty. Holders commit to use the land, to pay taxes due and submit to the authority of the elected government.
Accurately registering who owns which parcel of land matters – for individual financial protection, and for counter-parties like banks lending against the asset. Making titles more risky will impose staggering costs on the victims of fraud and misappropriation – and the banks.
Under Australia’s globally-admired Torrens Title system, government guarantees title against fraud and abuse without limitation. This will no longer apply if the register is sold to the highest bidder and privately provided. Consider the legal argy-bargy that will be certain to arise over any recording error by the private provider.
We are not the only opponents of this sell-off.
The UK recently offered its poor tax system as an excuse to attempt a similar selloff. UK land valuers obliged the conservative government to withdraw the idea, pointing out it would allow a private entity to adjudicate on the conflicting interests of sellers, buyers, lenders and neighbours.
What if the neo-conservatives actually wanted to hide who owns the land? As it is in the Scotland where despite strenuous efforts that began with the Registration Act of 1617 and accompanying Register of Sasines, the owners of only 26% of the land in Scotland have ever been identified. Ever.
Consider the implications of unrecorded title. It would exempt owners from public scrutiny, land tax, capital gains tax and the many pesky land use rules lesser mortals are subject to.
The risks and costs of, say, adverse possession pale in comparison to the profound personal benefits such a change would deliver to wealthy landholders able to hire some bovver boys to defend their interests.
The first baby step would be to de-nationalise the land registry – to put wealthy landowners on the road to the creation of allodial title.
David Collyer is campaign manager at Prosper Australia and can be contacted <a href="https://www.prosper.org.au" target="_blank">here</a>.
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Why the privatisation of the NSW land registry should be opposed: Prosper's David Collyer

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GUEST OBSERVER
Yesterday's announcement by NSW Minister for Planning, Rob Stokes, that new planning rules to expedite the approval process for medium density housing across NSW is good news. 
The release of a draft policy and Medium Density Housing Code today will encourage greater choice for home buyers looking for alternatives to freestanding homes and apartments.
Increasingly homeowners are looking towards the middle ground for their housing needs and this means townhouses, terraces and dual occupancies. 
The Medium Density Design Guide will facilitate a higher standard of housing design and ensure development is both appropriate and consistent with community expectations. 
The Design Guide will provide a consistent set of rules for anyone designing these types of low rise homes, making it easier for the building designer and builders. 
Most importantly enabling this form of housing to be ‘approved’ as Complying Development will open up a faster approval pathway than the development application which takes months and usually results in a design being approved by council with few, or no, changes.
The pressure on land prices and housing supply in Sydney means a new generation of homebuyers could have a much larger choice of housing types in the future, if this Code and the changes to the approval process can be supported by councils, industry and the community. 
The design guide will promote better quality medium density housing to be built, in the same way that the apartment design code released many years ago now has improved the design of high rise apartments.
We hope that councils will recognise that medium density housing is a desirable form of housing in Sydney but only accounts for 10 percent of all approvals granted. For medium density houses to be approved as complying development they must meet the specific design standards set out in the design guide, which will ensure the size and scale of low rise development fits into the established streetscapes.
HIA looks forward to reviewing the full details of the new draft planning rules and working with the Department of Planning and Environment to implement these changes.
David Bare is HIA executive director, NSW, and can be contacted <a href="https://hia.com.au/about/Contact.aspx?contactustab=Media" target="_blank">here</a>.
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New planning rules can make a real difference in approval times

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The prestige market as a whole is currently dominated by a lack of supply, which is most keenly felt in traditional blue ribbon prestige areas such as the eastern suburbs and lower north shore, according to the latest report by Herron Todd White.
As a result, transaction numbers remain somewhat subdued, although strong buyer demand for this limited available stock level is translating into bullish prices being achieved in some instances.
Herron Todd White noted that the prestige market shows signs of strong price growth.
"With an overall strengthening in the prestige dwelling market combined with limited stock levels, the prestige apartment market has shown recent signs of strong price growth primarily driven by the empty nester buyers, who previously struggled to realise adequate selling prices as a flow on from the impact of the GFC," said the report.
"While the prestige market is not stimulated as strongly by the impact of interest rate fluctuations, we do consider that savvy participants closely watch the performance of global and local markets and remain concerned about the under performing and fluctuating equities market and moderate performance of the local economy.
"Should stock levels increase, we consider that buoyant market conditions currently enjoyed in the prestige space may weaken."
Prestige residential property in Sydney is generally considered to represent properties greater than $3 million.
Prestige homes are scattered throughout the greater Sydney metropolitan area, with the highest concentrations in the eastern suburbs and eastern beaches, inner city and inner east, inner west and the lower and upper north shores.
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Sydney prestige prices may weaken with rise in stock: HTW 

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League legend Steve Mortimer has put a $930,000 asking price on his Rushcutters Bay investment property.
It was listed for recent auction with plans to put the profits into his shuffleboard business.
The <a href="https://www.realcommercial.com.au/property-retail-nsw-rushcutters+bay-502112754">2/84-90 McLachlan Ave</a> McLachlan Cafe premises are leased with a net income of $56,600 per annum.
The former Bulldogs bought the ground floor property in 2010 for $760,000.
About $900,000 had been given in pre-auction price guidance.
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League legend Steve Mortimer's $930,000 Rushcutters Bay cafe offering

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SPONSORED POST
Yield is one of the key factors in deciding whether or not to invest in a commercial property. And it is also one of the most confusing for people to understand.
Knowing what type of yield is being talked about, and how it was calculated, will make you a much more informed investor. Unless you know the difference, you won’t be comparing apples with apples.
Basically when it comes to yield there are two types: gross yield and net yield.
Gross yield is everything before expenses. It is calculated as a percentage based on the property’s cost or market value divided by the income generated by the property.
Net yield is everything after expenses. It takes into account all the fees and expenses associated with owning a property. As such, it is a far more accurate way of calculating actual yield. It is also much harder to calculate as most costs are variable.
However factoring in everything you can, and making educated guesses about the things you can’t, will give you a much clearer sense of what the likely yield will be.
What should be included in net yield?
The costs associated with owning a commercial property include annual and one off fees such as taxes, ongoing costs such as insurance and rates, and variable costs such as maintenance and vacancy costs.
Net yield should include fees and expenses such as stamp duty, land tax, strata levies and any legal costs.
Ongoing costs include water rates, council taxes, property management fees and insurance costs. However, a lot of commercial leases pass these costs on to the tenant. You can exclude any costs that are likely to be borne by the tenant.
Variable costs include maintenance and repairs as well as the cost of vacancy.
Commercial properties can take longer to find tenants than residential ones. It makes sense to factor this in to your calculations. For example, you may want to assume that your property will be untenanted for a month so you would deduct one month’s worth of rent from your income.
Calculating net yield
To calculate net yield, you need to deduct all the expenses (ongoing costs + cost of vacancy) from the annual rental income (weekly rent x 52). You then divide that number by the property’s purchase price and times it by 100. This will give you the percentage yield.
Net yield = (weekly rental x 52) – costs / property value x 100
For example, if you buy a property for $750,000 with an annual rental income of $78,000  ($1,500 a week) and yearly costs of $12,000, you would get a net yield of 8.8%.
In this example, the costs include $5500 of ongoing costs and $6500 for one month unrented.
Obviously this is just an example. You will need to review each property on its own merits.
But understanding how the net yield has been calculated (what it includes and excludes) will help you make a more informed decision when investing in a commercial property.
For more information, <a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=18755997&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">click here</a>.
ABOUT REALCOMMERCIAL.COM.AU: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
 
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Net yield & gross yield – what’s the difference?

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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