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<img src="https://counter.theconversation.edu.au/content/65146/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
A Victorian Supreme Court decision has held that landlords should ensure that residential premises are maintained in good repair, even if the property is dilapidated when the tenant goes into occupation. That this is being hailed as a “landmark” decision underscores the sometimes Dickensian approaches that still influence tenancy law.
With two states, New South Wales and Victoria, reviewing tenancy legislation, the decision is a persuasive case study on the desirability of imposing minimum standards on the condition of rental premises. There is, however, a sting in the tail, with the judge acknowledging that the conclusion could reduce the supply of very low-cost residential housing.
"… there is no law against letting a tumble-down house. – Robbins v. Jones(1863) 15 CB (NS) 221, 240"
What did the court decide?
In the Victorian case, Ms Shields, a disability pensioner, rented a house from Mr Deliopoulos for over five years. She was unable to afford any other property. The premises were in poor condition at the start of the tenancy and deteriorated further over time.
The catalogue of “repair issues” included holes in the floor, walls and ceilings; dampness and resultant rot; and rat infestation. The property was sinking in one corner. The condition of the property was described as “filthy” and “unusable".
Ms Shields sought compensation for a breach of the landlord’s obligation to “ensure that the rented premises are maintained in good repair”.
"… having regard to the age, character and locality of the house, would make it reasonably fit for the occupation of a reasonably minded tenant of the class who would be likely to take it. – Proudfoot v. Hart (1890) 25 QBD 42,55"
Under the common law, the obligation to repair leased premises fell on the tenant rather than the landlord. The tenant had to keep the premises in good repair (defined above). To comply with this obligation, a tenant could be required to repair premises that were dilapidated at the start of the lease.
The 1975 Poverty in Australia inquiry highlighted the inadequacy of the common law rules to modern tenancy arrangements. This led to the introduction of residential tenancy legislation throughout Australia.
"A landlord must ensure that the rented premises are maintained in good repair. – Section 68, Victorian Residential Tenancies Act 1997"
The initial decision in the Victorian Civil and Administrative Tribunal (VCAT) confined the scope of the landlord’s duty to the condition at the start of the tenancy, irrespective of the state of repair. The VCAT decision referenced factors such as the rent payable and the tenant’s decision to stay in the property for five years (despite the fact she could not afford anything else).
On appeal to the Victorian Supreme Court, Justice Day noted that proper construction of section 68 was a matter of some public importance because Ms Shield’s matter was the latest of several cases where landlords’ repair obligations were interpreted narrowly. Holding that the obligation was “strict and absolute”, the court concluded that landlords were required to identify and rectify any defects of which they were aware or ought to have been aware.
The court also held that relating the obligations of landlords to maintain premises in good repair to the level of rent payable was inconsistent with the consumer protection focus of the legislation and with equivalent legislation in other Australian jurisdictions.
What are the implications of this decision?
While few would argue with the outcome, the decision does raise some points to ponder.
1. What measures can be taken to ensure rental properties meet an appropriate standard of repair?
All tenants should expect premises conform to minimum community standards for health, safety and energy efficiency. Yet only Tasmania and South Australia have introduced legislation that provides for minimum standards and that certain amenities – which most people take for granted, such as cooking areas, a bathroom and hot and cold water – are provided in rental properties.
In South Australia, if a tenant believes a property has serious structural damage, he or she can seek an inspection by the Housing Improvement Branch and have the property declared substandard. It is suggested such provisions should be adopted in all states and territories. The reviews of residential tenancy laws in Victoria and NSW provide an opportunity to incorporate minimum standards.
2. Will the decision, or the imposition of minimum standards, reduce supply of low-cost rental housing?
Justice Day recognised the decision could prevent owners of properties in poor repair from renting out their properties at low rent, thus further decreasing stock availability. Although a few landlords may decide to do so, in most cases the landlords' financial realities will prevail and properties will be brought into repair.
The introduction of minimum standards in Tasmania and South Australia has been phased in to give landlords time to budget and improve properties.
3. How can we be sure that tenants receive appropriate legal advice and representation?
Could Ms Shields have succeeded in navigating VCAT, and the Supreme Court, without the assistance of Legal Aid Victoria? A self-represented tenant with few housing options, limited funds and no familiarity with the legal system would find it an onerous task to proceed against a landlord.
Less formal, low-cost processes should be examined. These should include a Housing Ombudsman, as recently suggested by the Victorian Council of Social Service (VCOSS).
Ms Shield’s experience is a timely reminder that the law , in form and in application, must ensure all tenants are provided with the basic necessities in rental properties. And, when landlords do not comply, there needs to be adequate access to justice.
Eileen Webb is associate professor, Curtin Law School, Curtin University and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/eileen-webb-95332" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Dickensian approach to residential tenants lingers in Australian law

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SPONSORED POST
Commercial property can be a great investment, especially for investors who are seeking cash flow.
An investor who owns residential property would consider themselves lucky if they could get a rental return of 4 percent pa on a house and 5 percent pa on a unit/flat/townhouse. However, commercial property can provide for much higher rental returns.
It’s not uncommon for retail property to earn 7 percent pa, office property 8 percent pa and in some cases, industrial property can provide the investor with a rental return of over 10 percent pa.
The example below illustrates the difference in annual rental return over five different types of property. Let’s assume that the purchase price in each case is $500,000. 
Purchase Price – $500,000
House – Rent = $20,000 (4 percent)
Unit – Rent = $25,000 (5 percent)
Retail – Rent = $35,000 (7 percent)
Office – Rent = $40,000 (8 percent)
Industrial – Rent = $50,000 (10 percent)
The rental return can vary depending on a number of factors, such as location and quality of the building.
A higher percentage rental return is only one of the advantages so far as rent is concerned.
A residential investor has many expenses. They need to pay for council rates, water rates, repairs, maintenance, insurance, property management fees and the list goes on. This means that a significant proportion of the rent (up to 30 percent) that the residential investor receives is spent on expenses.
However, the situation for commercial property investors is very different. It is the tenant that pays for the vast majority of expenses including council rates, insurance, property management fees, etc. As a result, the commercial property investor may only need to pay out 5% of the rent received in expenses.
The example below illustrates the differences between gross and net rent. Gross rent is the rental amount that the tenant pays the landlord and the net rent is the amount of rent the landlord is left with after paying all the property expenses. Let’s assume again that each property was purchased for $500,000. 
Residential Property (rental return – 5 percent pa)
Gross Rent – $25,000
Net Rent – $18,000
 
Commercial Property (rental return – 8 percent)
Gross rent – $40,000
Net rent – $38,000 
If you study the example above, you might be asking yourself why anyone would spend $500,000 on a residential property to end up with $18,000 in rent when they could buy a commercial property and finish up with more than twice the rent! There are two main reasons for this. 
Firstly is the risk. So far as investment is concerned, a greater return is associated with a greater risk. The main risk with commercial property is vacancy. If you lose a tenant from your unit or house, it will probably take about one week to find a new tenant. However, if you lose a tenant from your industrial property, it may take months or more than a year to find a tenant.
Secondly, residential property is bought mainly for its capital growth, not rental return.
So, if it is capital growth you’re seeking, residential property is often the best asset. If it is cash-flow you want, look for commercial property.
Where to start I hear you ask? 
Your first step is to log onto realcommercial.com.au so as to have a look at the types of properties available. Secondly, speak to your accountant/financial planner/qualified property investment advisor about owning a commercial property as part of your investment portfolio.
Finally and most importantly, seek legal advice from a property lawyer. The leases of commercial property are very different to those of residential property and will probably require a legal expert to read it and explain some of the essential terms and conditions.
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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Why you should consider investing in commercial property: Realcommercial.com.au 

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Westpac Banking Corp has invested $16.5 million in the fintech firm uno, which allows mortgage customers to broker their own home loan.
Around 400 mortgage products are offered through uno. 
uno will compete against two ASX-listed companies, AFG and Mortgage Choice, and Aussie Home Loans and also compete against the banks. 
In the three months since the startup launch, uno has attracted more than a thousand active users and the dollar value of mortgages sold through the platform is more than $400 million.
It allows users to see and compare all of the information about a loan that a traditional broker would access.
The founder Vincent Turner told the Australian Financial Review the company was founded after he spent the past five years in Silicon Valley
The commission paid by banks using uno is roughly equivalent to what is paid to traditional mortgage brokers.
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Startup uno secures $400 million in mortgage deals in first three months

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The James, New York based, investment banking family have secured $18 million for their Rose Bay Avenue, Bellevue Hill, home which was listed last year through Alison Coopes.
The marketing described the home as a thoroughbred.
Alan James, the New York based, Macquarie investment banker sold his Rose Bay Avenue home to another Macquarie banker Sebastian Barrack.
The property was architect Professor Leslie Wilkinson's first residential commission in 1923.
The seven bedroom, five bathroom house comes with heated pool, pool house and floodlit lawn tennis court on 2,415 square metre.
Sebastian Barrack has headed the agricultural commodities division at Macquarie Bank which he joined in 1999 via Macquarie's acquisition of his division at Bankers Trust Australia.
It last sold in 2002 when the Dawson Damer family secured $9.03 million, swapping its for another Wilkinson-designed house, Greenway in Vaucluse.
Sydney University's founding dean of architecture, Professor Leslie Wilkinson, designed the grand heritage-listed Georgian-style home for the Laidley-Dowling family, in collaboration with architect, John D Moore.
The Dawson-Damers bought for $6.15 million in 1991 from the Perth-based John Bond who'd paid $675,000 in 1979. The then Perth-based, Bond Corporation executive had extensively upgraded the seven bedroom home through Andre Porebski, and also Garth Barnett during the Bond decade. 
Wilkinson undertook just 40 house designs, finishing in 1968 with Anthony Coote's $80,000 Vaucluse waterfront, once briefly owned by Paul Hogan, who sold it for $11 million in 2004 to Precision Group's Shaun Bonett, the young property tycoon from Adelaide.
In 2013 Karl Lagerfeld sold his Gramercy Park, New York pied-à-terre to the Macquarie banker Sebastian Barrack for US$4.5 million.
Lagerfeld had purchased the stark white, three-bedroom apartment in 2006 for $6.575 million.
 
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$18 million paid for Professor Wilkinson-designed Bellevue Hill home

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<img src="https://counter.theconversation.edu.au/content/64794/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
There is much debate about which groups of people have played the greatest role in creating the increasingly unaffordable housing markets in Australian cities. Baby boomers and foreign investors are two popular targets.
But in my new book, The Geopolitics of Real Estate, I show it is a mistake to blame particular domestic or foreign investor groups for affordability problems over a short timeline.
One way to think about housing affordability is to reverse-engineer the problem back to the birth of Australia’s property-owning democracy. History shows the problem was created in five key steps.
Step 1: Aboriginal peoples were dispossessed of their land
When you open up the timeline for an analysis of housing affordability, the question quickly becomes: whose land are domestic and foreign real estate investors trading?
Go back a couple of centuries and you arrive at what RMIT academic Libby Porter calls the original dispossession: the point when the land was stolen from Aboriginal peoples.
But Aboriginal land dispossession is not only a series of historical events that occurred in the past. Such acts established the social and legal conditions that allow land and real estate to be traded today.
This throws statements by domestic real estate investors about invading foreigners into sharp relief.
Step 2: foreigners and capital were moved onto the land
The early British colonial settlements set trade and migration as their objectives.
In the early 19th century, Edward Wakefield, a leading force in South Australia’s colonisation, argued land should be sold rather than given away. This would incentivise the new landowners to pay the emigration costs associated with transporting immigrants to supply labour for the colony.
Wakefield argued the immigrants would sell their labour and, with their incomes, would buy land. He called this systematic colonisation, and later championed these ideas in New Zealand and Canada.
These ideas about globalising the scale at which foreigners could be moved through local colonial land opened up new ways of thinking about the global market for land and sources of labour.
Contemporary governments continue to use the movement of people and capital through their land and real estate markets to underwrite their economies and labour markets.
Step 3: a property-owning democracy was built
A property-owning democracy is a society in which between 65% and 85% of households own or are purchasing the home they live in.
After the second world war the Australian government set about building a property-owning democracy. To build it required two interrelated tasks.
<ul>
<li>The first involved claiming, measuring, quantifying and distributing the land ready for the sale of real estate.</li>
<li>The second involved creating a way of thinking about real estate that would function within the property-owning democracy.</li>
</ul>
After the war the government increasingly regulated the movement of people and their money across Australian borders. It introduced a raft of economic and social policies that were firmly aimed at shaping how Australians thought about real estate – the Great Australian Dream.
Post-war housing and economic policies, ideas about nationhood and citizenship, and the responsibility to be a suburban consumer of a home and household goods were worked deeply into the minds of baby boomers.
Step 4: land and real estate was constituted as private property
What emerged in the second half of the 20th century was a suite of crises in land and real estate.
Aboriginal land rights rose to the surface as the settler politics of claiming and defending the land and real estate was called into question.
As the populations grew and the effects of the property-owning democracy took hold in major Australian cities, a crisis in housing affordability emerged.
When compared with the experience of their parents, by the early 21st century it was harder for the children of the baby boomers to buy into urban real estate markets. As the baby boomers were busy buying real estate in the second half of the 20th century, a land revolution was under way in China.
The collectivisation of land had effectively removed the land from the private property market in China in the mid-20th century. It was radically reinserted a few decades later.
The geopolitical rise of China at the end of the 20th century changed the way people and money circulated around the world.
Step 5: global movements of people and capital followed the geopolitics
Strong private property land and real estate ideals emerged from the other side of the Cultural Revolution. The commodification of land and real estate became a key tactic for building wealth in China.
The surplus Chinese capital broke free of the national border by the end of the century. The newly enfranchised middle class and super-rich Chinese were looking for foreign real estate opportunities.
At the turn of the century, the baby boomer real estate dream was becoming harder to realise for their children. But the Chinese local and foreign real estate dreams were still in their infancy.
The history of foreign investment in land and real estate shows the global movement of people and capital is closely linked to the prevailing geopolitics.
Dallas Rogers is lecturer in Urban Studies, Western Sydney University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/dallas-rogers-5269" target="_blank">here</a>.
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Property 101: Australia’s housing affordability problem explained in five historical steps

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The Alexandria-apartment bound Neale Whitaker, a judge on Channel 9’s The Block, has listed his Surry Hills terrace.
He and partner David Novak-Piper have the Riley Street terrace listed with a price guide of $1.575 million.
Neale Whitaker and Partner David Novak-Pipe renovated the terrace that spans three levels.
There's an open-plan kitchen and lounge room that flows out to a rear courtyard with a deck. There is also a separate dining and living room and a central sunroom that opens on to an atrium.
There are original fireplaces throughout the home including in the main bedroom.
It is listed for October 8 auction.
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The Block's Neale Whitaker lists in Surry Hills

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St Bees Island, located 37km offshore to the northeast of Mackay, has been listed by LJ Hooker Commercial Brisbane agent Keir Kreis.
It has 4.2ha of sandy beaches and lush rainforest.
The leasehold property has a 25-year lease expiring 2034.
It has been used by a Gold Coast family as their private home over the past two years.
The rental under the terms of the lease is $5,500 per annum.
The leasehold property at Island Road, St Bees Island is situated to the east of Keswick Island within the Cumberland Islands Group. Surrounded by beautiful fringing reefs alive with marine life, St Bees Island consists of sandy beaches lapping with crystal clear water, rainforests, eucalypt woodlands, dense grasslands and eleven hundred hectares of untouched national park with wild fauna and flora and a diverse wild life. The property access to the island is via sea transfer from Mackay.
Private planes can land at nearby Keswick Island or alternatively the property can be accessed directly by helicopter from Mackay. 
Reliable mobile phone and internet coverage are available on the island.
The vendors are also prepared to include a barge and pleasure craft in the sale of the property, subject to negotiation.
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St Bees Island for sale

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<img src="https://counter.theconversation.edu.au/content/65248/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
What is the one thing that makes young people everywhere the most anxious? According to the Global Youth Wellbeing Index, it’s a lack of future economic opportunities.
Data from both the OECD and the Youth Wellbeing Index show Australian youth have had it better than just about any other country’s young workforce, but their prospects are also not so rosy.
It’s clear that the millennial cohort has drawn a short straw compared to earlier generations. A large majority (85 percent) of the world’s youth are experiencing low levels of wellbeing, the index notes.
But they aren’t getting much sympathy: a virulent anti-millennial sentiment has led to their derision as “generation jobless”.
It’s also worth considering how the youth of Australia have fared and expect to fare – because while the verdict has historically been excellent, there are disparities masked by the glossy big picture.
What about Australian young people?
As ample survey data now shows, Australian youth are fretting about their prospects, with lower income growth, overqualification, employment instability and crowding out from many key domains such as housing; all these factors together portend a more stressed generation.
Perhaps no statistic captures this better than the fact that one-quarter of young Australians say they are unhappy with their lives.
Since the global financial crisis of 2008, the number of youth that are “neither in employment, education or training” (often called “NEET”) has actually risen by 1.4 percent to 11.8 percent. This equates to 580,000 young people.
Inequality in education tends to be a driver of inequality in employment. Young Australians who have only a Year 10 Certificate are more than three times as likely to be unemployed as those with tertiary education.
There is also a clear disparity by gender. Young women are 50 percent more likely to be stuck in a NEET situation than men. This is well above the OECD average of 36 percent for gender disparity.
The problem is particularly prevalent among young Australian women caring for infants. This is why a lack of access to affordable child care and flexible working arrangements are two significant barriers that must be addressed.
There is also a racial aspect to youth employment. Indigenous youth NEET rates are more than three times higher than those of non-indigenous Australians. Part of the challenge in this regard stems from the weak labour markets in remote and very remote regions.
These disparities are often masked when Australia’s impressive overall record is compared with other countries. However, as the Parliamentary Budget Office of Canada has calculated, the economic situation for youth can worsen dramatically in a short time. It did for Canada’s proportion of underemployed youth, which swelled from 35 percent to 40 percent in less than five years. So the overall record for Australia could change soon too.
Sadly, in terms of the fear of a bleak economic future, young Australians are not that different from their peers abroad.
A universal fear
Around the world, nearly half the youth are unemployed or underemployed, while more than 120 million youth are still illiterate. So it is difficult to overstate the universality of this problem.
Is this because youth employment has received the least focus? Unemployment has historically taken a back seat to other core priorities towards the young.
The Millennium Development Goals (MDGs), for example, include the eradication of hunger, child mortality, illiteracy and disease – but there is no goal for unemployment or underemployment. It may be time to add another notch to these priorities, with a focus on developing strategies for engaging and employing youth.
The benefits if we achieved this goal are far from superficial. It is well documented that when youth are gainfully employed they are less likely to rely on social programs, less inclined to criminality, better engaged in civic life and better poised in their sense of personal wellbeing.
Usman W. Chohan is doctoral candidate, Policy Reform and Economics, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/usman-w-chohan-182272" target="_blank">here</a>.
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Young people worldwide fear a lack of economic opportunities – it’s easy to see why

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Aussie John Symond is listing his Point Piper trophy home - and reckons he might well find his buyer in China for Sydney's most monolithic home offering.
With unconfirmed $100 million plus expectations, it would easily exceed the Sydney residential record held by tycoon James Packer.
The harbourfront home set on 2685 sqm has piqued the interest of Sydneysiders ever since its first development application lodgement in 2000.
Some seven years later the Aussie Home Loans founder moved into the completed copper-capped roofed and sandstone skirted home.
So vast, and then without vegetation, at one point it was nicknamed Aussie Stadium.
With a floor space of 2200 sqm over four levels, the six bedroom home, all with ensuites, features two swimming pools, one on the top floor.
It has 75 metres of absolute waterfrontage.
Speculation has been rife since May when a spokesman said no decision had been made about Mr ­Symond’s future living or work arrangements. 
But Mr Symond’s spokesman confirmed the 69 year old entrepreneur was “exploring options in regard to his life after Aussie Home Loans when his contract expires in 18 months”.
“One of those options from 2018 involves living part of the year overseas and enjoying time on his boat, which is one of his passions,” he said.
There was a “strong possibility” Mr Symond may retain a role with Aussie, the spokesman said, which may mean Mr Symond could move from being executive chairman to a less hands-on role as chairman.
Estate agents have been advised to prepare the marketing for a roadshow to China
Symond previously lived in a Walsh Bay penthouse which sold for a record $16 million in 2006.
He paid $10,893,398 for the Wingandal Place property in 1999. He married Amber McDonald at the home in February.
It seems once he turns 70 next August he wants to spend a bit more time in Europe where he has a luxury 73 metre yacht being built.
The boat will act primarily as a charter vessel in the Mediterranean. The Dutch shipbuilder Feadship is set to complete the boat early next year. 
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Aussie John Symond listing Point Piper harbourfront

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Retired AFL footballer Darren Jolly and his designer wife, Dea, now professional renovators, have listed in Kew East with an October 8 scheduled auction.
<a href="https://www.realestate.com.au/property-house-vic-kew+east-123577366" target="_blank">It is the home</a> they rebuilt after demolishing their heritage-protected house without permission.
<a href="https://www.realestate.com.au/property-house-vic-kew+east-119169183" target="_blank">It was bought for $1,395,000</a> in June last year and they want $2.6 million. 
Dea Jolly, now a Fairfax Media columnist, once confessed she had an addiction to renovating.
The house comes with underfloor heating in the bathrooms, 100 percent wool carpets and 100 percent linen curtains, engineered European Oak flooring, bespoke made handles, plantation shutters on the windows, Velux solar-powered and rain sensing opening skylights plus landscaped gardens with irrigation and lighting. 
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The Block's Darren and Dea Jolly list Kew East cottage

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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