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Sydney based rug importer Cadrys paid $2.5 million for an industrial facility at Noble Park in Melbourne's south-eastern suburbs in a deal brokered by Savills Australia.
The 130 Browns Road property, comprises a 2,561 square metre building, including 610 square metres of office space and a 1,951 square metre warehouse.
It was a 4,296 square metre site with 56 metres frontage to Browns Road, and 39 car spaces.
It last sold at $885,000 in 1981.
According to Savills Keith Kooloos, the property offered the tenant room to accommodate its stock and provided ample office space with room for a showroom and plenty of staff and customer parking.
He said the significant Browns Road frontage offered the tenant the option to utilize part of the office component as a showroom space with exposure to a busy interconnector between the Princes Highway and Monash Freeway.
“This was a very good fit for Cadrys in a location which provides both excellent exposure and quick access to major transport routes across Melbourne's busy south-eastern corridor,” Mr Kooloos said.
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Cadrys buys Melbourne industrial space through Savills

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With $15 million plus hopes, Mirvac has begun marketing its 500-square-metre Grand Pavilion penthouse overlooking Melbourne's Fitzroy Gardens at East Melbourne.
Mirvac's The Eastbourne penthouse comes with a 300-square-metre balcony, 50 metres of park frontage with pool and a spa.
"We expect the penthouse will be bought by a Melbourne local, some one from Toorak who is downsizing from their mansion," Mirvac boss Susan Lloyd-Hurwitz said. 
Fairfax Media advised she is one of around 200 buyers who have snapped up $300 million worth of apartments in the off the plan sales in the development. The penthouse will be at the former Dallas Brooks Hall and Freemasons Masonic Lodge site at 280 Albert Street.
One buyer has spent almost $11 million to join three apartments into one 250 sqm apartment. 
The Grand Pavilion penthouse won't be the city's most expensive apartment.
Across the gardens, there was a higher price at Salta's apartment block, and the record is held by the $25 million sale of the 100th floor penthouse in Australia 108 to a Chinese buyer.
Eastbourne has been designed for Mirvac by Bates Smart, the architects behind their other prime block, The Melburnian on St Kilda Road.
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Mirvac's Eastbourne penthouse for sale

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The Pullenvale estate of the mining tycoon Nathan Tinkler has been sold by his receivers.
The former mining mogul's seven-bedroom Brisbane mansion fetched around $3 million, according to The Australian, down from its 2007 purchase price of $5.2 million.
The <a href="https://www.domain.com.au/421-grandview-road-pullenvale-qld-4069-2012994279" target="_blank">421 Grandview Road, Pullenvale</a>, estate had been on the market since mid-2013.
It failed to sell at recent auction, but is now under offer.
The coal baron Nathan Tinkler bought the property in 2007 for $5.2 million from Brad Sugars. 
It hit the market in May 2013.
The seven-bedroom, five-bathroom Pullenvale home is nestled in the hills 15 kilometres west of Brisbane.
It has a resort-style spa and pool with two waterslides and a poolside bar. 
There is a floodlit champion size tennis court and a private golf green at the front of the four hectare block.
There are also stables and paddocks for a number of horses.
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Nathan Tinkler Pullenvale estate finds buyer

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The former Sydney investment banker Alastair Walton is selling the Leichhardt warehouse conversion which was bought in June last year for his four children.
It goes to October 15 auction with $1.8 million hopes.
It was bought for $1.55 million which was $255,000 over its reserve.
The property at 26 Mackenzie Street was the site of a sign-writing business. After the premises were stripped bare, there's been little more than a splash of paint.
The upper mezzanine level has been configured to host two bedrooms separated by a bathroom.
Walton, who was a major fundraiser for the Liberal Party, was appointed our first Consul General to Houston by the Federal Government last October.
More than 50 Fortune 500 companies are headquartered in Texas and the state exports A$2.5 billion worth of goods to Australia. More than 100 Australian companies operate in Texas, including BHP Billiton, Woodside, Santos, WorleyParsons, Macquarie Group, Pryme Oil and Gas, Lend Lease and Brambles.
Walton had most recently been the chairman of BKK Partners, the minnow corporate advisory firm which had Peter Costello briefly as a director, and before that been co-chairman and managing director of Goldman Sachs Australia, taking over from then merchant banker Malcolm Turnbull.
This article was first published in the Sunday Telegraph.
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Leichhardt warehouse offering up for auction

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<img src="https://counter.theconversation.edu.au/content/65251/count.gif" alt="The Conversation" width="1" height="1">GUEST OBSERVER
“That’s all very well put,” says Candide, in the final line of Voltaire’s novel of the same name, “but we must go and work our garden.”
I studied this text at high school before I became a gardener and professional horticulturist. We were taught that Candide’s gardening imperative was metaphorical not literal; a command for finding an authentic vocation, not a call to take up trowels and secateurs.
In fact, Voltaire himself really believed that active gardening was a great way to stay sane, healthy and free from stress. That was 300 years ago.
As it turns out, the science suggests he was right.
The science of therapeutic horticulture
Gardens and landscapes have long been designed as sanctuaries and retreats from the stresses of life – from great urban green spaces such as Central Park in New York to the humblest suburban backyard. But beyond the passive enjoyment of a garden or of being in nature more generally, researchers have also studied the role of actively caring for plants as a therapeutic and educational tool.
“Therapeutic horticulture” and “horticultural therapy” have become recognised treatments for stress and depression, which have served as a healing aid in settings ranging from prisons and mental health treatment facilities to schools and hospitals.
Gardening and school
Studies of school gardening programs – which usually centre on growing food – show that students who have worked on designing, creating and maintaining gardens develop more positive attitudes about health, nutrition and the consumption of vegetables.
They also score better on science achievement, have better attitudes about school, and improve their interpersonal skills and classroom behaviour.
Research on students confirms that gardening leads to higher levels of self-esteem and responsibility. Research suggests that incorporating gardening into a school setting can boost group cohesiveness.
Gardening and mental health
Tailored gardening programs have been shown to increase quality of life for people with chronic mental illnesses, including anxiety and depression.
Another study on the use of therapeutic horticulture for patients with clinical depression sought to understand why gardening programs were effective in lessening patient experience of depression. They found that structured gardening activities gave patients existential purpose. Put simply, it gave their lives meaning.
In jails and corrective programs, horticultural therapy programs have been used to give inmates positive, purposeful activities that lessen aggression and hostility during and after incarceration.
In one detailed study from a San Francisco program, involvement in therapeutic horticulture was particularly effective in improving psychosocial functioning across prison populations (although the benefits were not necessarily sustained after release.)
Gardening has been shown to help improve the lives of military veteransand homeless people. Various therapeutic horticulture programs have been used to help people with learning difficulties, asylum seekers, refugees and victims of torture.
Gardening and older people
As populations in the West age, hands-on gardening programs have been used for older people in nursing homes and related facilities.
A systematic review of 22 studies of gardening programs for older adults found that gardening was a powerful health-promoting activity across diverse populations.
One study sought to understand if patients recovering from heart attack might benefit from a horticultural therapy program. It concluded:
[Our] findings indicate that horticultural therapy improves mood state, suggesting that it may be a useful tool in reducing stress. Therefore, to the extent that stress contributes to coronary heart disease, these findings support the role of horticultural therapy as an effective component of cardiac rehabilitation.
While the literature on the positive effects of gardening, reflecting both qualitative and quantitative studies, is large, most of these studies are from overseas.
Investment in horticultural therapy programs in Australia is piecemeal. That said, there are some standout success stories such as the Stephanie Alexander Kitchen Garden Foundation and the work of nurse Steven Wells at the Royal Talbot Rehabilitation Centre and beyond.
Finally, without professionally trained horticulturists none of these programs – in Australia or internationally – can take place.
Chris Williams is lecturer in urban horticulture, University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/chris-williams-300083" target="_blank">here</a>.
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Gardening is good for you; the science is in

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Sydney's higher house prices over the past four years has seen many households take on larger mortgages while remaining in their own home.
And it has been high-debt households that have increased their debt by more than low-debt households. 
Research by the Australian Housing and Urban Research Institute (AHURI) has suggested the responsive of households to house price growth has been greatest among households with already higher levels of indebtedness.
"These households are the most vulnerable to income shocks, such as unemployment," the report warned.
They found that a $1,000 increase in house values prompted a $240 increase in household debt for home owners. A one percent increase in local house price growth was accompanied by a 0.3 percent decrease on household non-mortgage debt. 
They warned the take-up of further mortgage debt exposed them to the risk of significant loss if house prices fall or if interest rates rise.
"This, in turn, may pose a systemic risk for the macroeconomy.
"An economic shock, emanating in either financial, labour or housing markets, may lead to widespread defaults that would cause the shock to spread across markets and threaten the performance of the economy," it said.
Their report noted a general belief in Australia that debt is held by those most able to service it, namely, higher-income and higher-wealth households. 
Ofcourse the Organisation for Economic Cooperation and Development has long observed that Australia’s household debt ratios (debt divided by disposable income) are high by international standards.
In the mid-1990s, household debt was around 50 per cent of household disposable income.
This ratio rose to over 150 percent of income by 2007, with housing debt alone accounting for almost 90 percent of this, and has since remained constant.
In Australia we have not seen households reducing their debt burden as witnessed in other countries more severely affected by the GFC.
Instead when these households experienced increases in the value of their housing wealth, they have been quite likely to refinance from their relatively more expensive unsecured non-mortgage debt, by moving debt from credit card to home loan.
The debt escalation is possibly already adding to housing stress and resulting in less money being available for discretionary spending.
We know around 30 percent of home owners have no debt, but evidence on the relationship between house prices and debt is scarce.
There are always links between household debt and work life-cycle. 
Any price movements in housing markets has the potential to either promote or dampen labour supply, according to the AHURI research paper, House prices, household debt and labour supply in Australia authored by Kadir Atalay, Garry Barrett and Rebecca Edwards. 
Higher housing debt-to-income levels are associated with longer working hours especially for middle aged and older men along with for younger and older women.
But throw in the positive wealth effect of good house price growth and it leads to a reduction in labour supply for older women via early retirement and for young partnered men and women who move to carer activities.
Households typically smooth any fluctuations in current income by accumulating wealth. They achieve this by saving when income is relatively high and by drawing on that wealth when income is relatively low. Anticipated changes in wealth are built into consumption plans, but unemployment shocks aren't.
It was interesting to see more borrowers are falling behind on repayments, according to credit ratings agency Fitch this week.
Despite low interest rates, the appreciating housing market and falling unemployment, Fitch believes the worsening arrears may be due to the emerging trend of higher underemployment.
This article was first published in the Saturday Daily Telegraph.
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Underemployment could be weak link in growing household debt

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GUEST OBSERVER
There is significant local debate about how much the Australian housing market is cooling.
Various indicators are showing different trends. A prominent hedonic house price measure is showing stronger growth than the broad collection of housing price indicators. Auction clearance rates have also been high, suggesting price strength. 
At the same time, new housing loan approvals are below their 2015 peaks, housing credit growth has slowed and housing turnover has fallen. We see the collection of evidence supporting the idea that the housing market has cooled (and so does the RBA). This is welcome, after an extended period of strong housing price growth in Sydney and Melbourne.
Our central view has the RBA on hold from here. If the housing market proves to be more resilient than we expect, this would further bolster that view.
<a href="/images/2016/09/27/Screen%20Shot%202016-09-27%20at%207.54.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/27/Screen%20Shot%202016-09-27%20at%207.54.17%20AM.png" alt="">
Australia has a collection of housing price indicators. These indices take different approaches to dealing with the key measurement challenge, which is that there is significant variation in the sorts of houses that are sold month to month. For example, if a lot of large, well-located and expensive houses are sold in one month and smaller, less well-located, cheap houses are sold another, this can have a big effect on the raw median price measures.
In this case, housing price growth would appear to slow, but this would not be a true picture of the change in price of the overall housing stock. Instead, it would be a reflection of the compositional changes in what was being sold month to month.
The four main measures tracked in Australia that seek to control for these compositional effects are a hedonic measure (Corelogic), a stratified median measure (APM), a repeat-sales measure (Residex) and the official ABS measure, which also uses a stratification approach.
Hedonic measures control for compositional shifts in turnover by accounting for things like number of bedrooms, block size and location, amongst other characteristics. The stratified approach groups houses into ten different price level boxes and then averages the medians from each box to produce an overall measure. The repeat-sales method controls for quality by tracking the same houses through time.
<a href="/images/2016/09/27/Screen%20Shot%202016-09-27%20at%207.56.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/27/Screen%20Shot%202016-09-27%20at%207.56.58%20AM.png" alt="">
At the moment, the various measures are showing y-o-y growth in national housing prices of between 7 percent (Corelogic) and 3 percent (APM) (Charts 1 and 2). On a q-o-q basis, the gap is even larger, with the hedonic measures showing more strength recently. Keep in mind that the main debate is really only about whether the Sydney and Melbourne markets are cooling, as there has been little housing price growth in other cities in recent years (Chart 3).
The gap between the measures has led to some debate about which measure is closest to the truth. A challenge has been that the Corelogic measure, which is showing the strongest growth and has typically been the one most relied upon by the RBA in recent years, has recently had some methodological changes. As a result, the RBA has become less confident about the veracity of this measure, stating in its August official statement that 'strong increases reported by CoreLogic were overstated as a result of methodological changes'. 
<a href="/images/2016/09/27/Screen%20Shot%202016-09-27%20at%207.57.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/09/27/Screen%20Shot%202016-09-27%20at%207.57.58%20AM.png" alt="">
Digging a little deeper into the issue (to the extent that we can without the unit records), we find it interesting that the CoreLogic raw median, which does not adjust for compositional changes, has also shown much slower housing price growth in Sydney than the adjusted measure (Chart 4). The gap between the hedonic measure and the raw median is the largest it has ever been. The clear implication is that compositional shifts in turnover have been quite large recently.
One plausible explanation is that a greater amount of lower-priced housing has been turned over recently. This fits with the fact that a lot of newly built apartments have been coming to market and apartments tend to be lower-priced than detached houses. Apartment prices have also grown more slowly than detached dwelling prices more recently. Lower-priced detached houses are also the ones that are likely to see the biggest spill-over effect from the apartment supply boost, as they are typically a closer substitute to most apartments than higher-priced houses.
Another timely measure of housing market activity, auction clearance rates, has also been high in recent months (Chart 5). This may also be consistent with the gap in the housing price measures. Auctions are more prevalent for higher-priced homes and account for only 30% of housing sales in Melbourne, 20% in Sydney and far lower rates in the other capitals. Auction volumes have recently been lower than in recent years, suggesting fewer high-priced dwellings are being sold.
More sales of lower-priced dwellings would also be consistent with the fall in housing loan approvals and slowdown in housing credit growth, as access to credit is typically a more important factor for lower- priced housing (Chart 6). The tightening of lending standards since late 2014 has also applied most aggressively to loans to investors, which are more prevalent in the apartment market.
The bottom line is that the weight of evidence suggests that there has been some cooling in the housing market (for more details on why the market it is likely to have cooled, see: 'Downunder Digest: Australian housing is still set to cool', 21 June 2016). Compositional shifts in housing turnover are making it difficult to get a clear read on housing price growth, but, importantly, housing loan approvals and credit growth have slowed. For monetary policy, the slowdown in housing credit growth is particularly important. Housing price gains are far more worrisome when they are fuelled by credit. It is the leverage that matters most.
Our central case is that the RBA is unlikely to cut further, with this call grounded in our view that domestic inflation and wages growth is set to stabilise as the rebalancing act comes to its end (see 'Australia's low inflation: It's part of the rebalancing act', 13 July 2016). If housing price growth proves to be stronger than most of the measures show, or there is a re-acceleration of housing prices, loan approvals or credit growth, we see this as likely to bolster, rather than challenge, our case that the RBA is unlikely to cut further. 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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How much is the housing market cooling? HSBC's Paul Bloxham

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GUEST OBSERVER
ABS data showed a further moderation in home price growth over the year to the June quarter to 4.1 percent, but June quarter growth was 2 percent plus (or 8 percent plus on annualised basis) in Sydney and Melbourne which indicates these cities remain too hot. 
A surge in auction clearance rates suggests they may have become even hotter lately. 
There is not much the RBA can do, but it is an issue for APRA to keep an eye on.
<a href="/images/2016/09/27/auctions_normal.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/09/27/auctions_normal.png" alt="">
Meanwhile, Australia’s population popped 24 million in the March quarter. While population growth has slowed to 1.4 percent year-on-year from a peak of 2.1 percent in 2008, it appears to have stabilised, remains strong compared to most other advanced countries, will help drive reasonable potential economic growth and continues to underpin long term housing demand. 
<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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Further moderation in home price growth: Shane Oliver

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The 7-Eleven Australia director, Dharma Chandran, failed to secure a sale when his Paddington terrace went to weekend auction.
The price guidance had been $4.25 million on the four bedroom home with a nine metre frontage to Cascade Street.
After bidding got to $4.375 million, the BresicWhitney auctioneer placed a $4.5 million vendor bid, which brought an abrupt halt to proceedings. The asking price later was revealed as $4.75 million.
Chandran had been at the home since paying $3 million in 2012. He became a non-executive director at 7-Eleven Australia following the recent investigation into the scandal-plagued convenience store chain, which found franchisees were exploiting workers.
The HR executive has worked across Asia, Oceania, Europe, North America, The Middle-East and Africa with experience in the construction, mining, engineering services, property, oil &amp; gas, telecommunications, shipping and retail industries.
He began working for Just Jeans as a part-time sales assistant in the mid-1980s as a university student after he'd migrated to Australia from Malaysia as a teenager.
This article was first published by The Sunday Telegraph.
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7-Eleven director Dharma Chandran fails to secure Paddington sale 

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GUEST OBSERVER
The multi-unit apartment and townhouse construction industry has reached record highs over the past five years. However, volatile conditions have led to mixed results for many construction firms.
Construction features prominently in IBISWorld’s Top 500 Private Companies list for 2016.
The list features 57 construction companies, including three companies in the top 20: BGC, Meriton Apartments and Hutchinson Builders.
Year-on-year revenue growth for the 57 listed construction companies varied widely, from growth of 327.5 percent to a decline of 49.1 percent, reflecting a tumultuous year in construction.
The top five private construction companies for growth in this year’s list include Central Equity, Lipman, Mainbrace Constructions, Pellicano Builders and Burbank Australia, which have displayed revenue growth of between 327.5 percent and 51.8 percent over the past year. 
While construction companies generally performed well in this year’s Top 500 Private Companies list, four appeared in the top 10 private companies with the biggest revenue declines, including Murphy Pipe and Civil Group, S J Higgins Group, Vaughan Constructions and Grocon Group.
Multi-unit residential construction
The multi-unit apartment and townhouse construction industry has grown strongly over the past five years, boosted by foreign investment and Australians becoming increasingly comfortable with inner-city living.
Underlying demand for new housing is underpinned by Australia’s migrant intake, population growth, foreign investment in the property market, historically low mortgage interest rates, and an increasing desire to live in inner-city multi-unit apartments and townhouses.
IBISWorld expects the multi-unit apartment and townhouse construction industry to post annualised growth of 3.8 percent over the five years through 2016-17, to reach $17.4 billion. Revenue is projected to strengthen further over the five years through 2021-22, increasing at an annualised 5.0 percent to reach $22.1 billion.
Sharp correction
Despite the industry’s bright outlook, revenue is expected to slump by 17.3 percent over the current year as investors hold off on new developments to allow recently added stock to be absorbed.
Recent additions of new apartment stock have exceeded immediate housing requirements, and vacancy rates have climbed in several major markets, particularly in Melbourne and Brisbane. The decline in activity also reflects the anticipated completion of several major projects during 2016-17.
Industry revenue is expected to decline sharply over the current year, before stabilising in 2018-19. Industry revenue is forecast to recover strongly following these corrections, reaching new record highs over the next five years as demand for new housing and rental accommodation underpins a return to accelerated growth.
Around the nation
Apartments have captured an increasing share of total residential building commencements over the past five years, particularly for inner-city multistorey apartment complexes. These projects are expected to make up 39.7 percent, or $6.9 billion, of the industry’s total revenue of $17.4 billion in 2016-17.
Over the past five years, much of the industry’s focus has been on well-publicised multistorey apartment towers in capital cities.
South Australia, Tasmania and the Australian Capital Territory have experienced declines in the value of multi-unit and townhouse residential property construction activity over the past five years. Other states, particularly New South Wales and Queensland, have seen strong growth from the same market.
Foreign investment
Multi-unit residential commencements are forecast to surge from 2019-20 onwards as more projects are brought to the start-up phase. Foreign investment in apartment developments, particularly from investors in China, Singapore and Hong Kong, is likely to support this growth. 
The Australian market is expected to remain attractive for foreign investors, especially as the value of the Australian dollar is anticipated to remain low.
Anthony Kelly is senior industry analyst, IBISWorld and can be contacted <a href="https://www.ibisworld.com.au" target="_blank">here</a>.
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Surging apartment construction driving growth across multiple states: Anthony Kelly

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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