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A Rosebud beach house sold at weekend auction for $505,500.
The weekend sale was <a href="https://www.realestate.com.au/property-house-vic-rosebud-123171414">2 Spray Street, Rosebud</a> (above). Shane Fox at Ray White sold it. 
The two storey three bedroom had fetched $390,000 in 2014.
Property Observer went looking for five more than could be bought at less than half a million on Victoria's Mornington Peninsula.
Another in Rosebud is available, with YPA Estate Agents agent Chris Fahl asking between $440,000 and $480,000 for a three bedroom, one bathroom home.
Last traded for just $72,000 in 1997, <a href="https://www.realestate.com.au/property-house-vic-rosebud-123148958" target="_blank">12 Kennington Road</a> (below) in Rosebud is set on 679 sqm and a short walk to Port Phillip Bay.
<img src="/images/2016/08/26/500_beach1.jpg" alt="">
A beach house at<a href="https://www.realestate.com.au/property-house-vic-rosebud+west-123404694" target="_blank"> 9 Swans Way</a> (below) in Rosebud West is on the market for $430,000 with Basso Real Estate agent Paul Basso, having last sold for $295,000 in 2010.
<img src="/images/2016/08/26/beach2.jpg" alt="">
The renovated three bedroom investment property was bringing in $330 a week, which would show a rental yield of 3.99 percent for the new buyer.
YPA Estate Agents Sheree Hay is asking for offers between $430,000 and $470,000 for <a href="https://www.realestate.com.au/property-house-vic-rye-123225954">1 Hackworth Road</a> (below) in Rye.
<img src="/images/2016/08/26/rye.jpg" alt="">
It's a three bedroom, one bathroom home on a corner allotment with a wood fire pizza oven in the back yard.
It last traded for $286,000 in 2008.
Just touching the $500,000 barrier is this three bedroom, single level home in Safety Beach, which only traded last year for $350,000.
The property at <a href="https://www.realestate.com.au/property-unit-vic-safety+beach-123434298" target="_blank">38/113 Country Club Drive</a> (below) is priced at $499,000 through YPA Estate Agents Ben Nutbean and Jade Springer.
<img src="/images/2016/08/26/country.jpg" alt="">
Back to Rosebud, where Darren Sadler at Eview Property Group wants offers over $475,000 for <a href="https://www.realestate.com.au/property-house-vic-rosebud-123189394">28 Sunningdale Road </a>(below)<a href="https://www.realestate.com.au/property-house-vic-rosebud-123189394">.</a>
<img src="/images/2016/08/26/rose1.jpg" alt="">
Last sold in 2010 for $375,000, the three bedroom, two bathroom renovated family home offers an open plan living area with large back yard. 
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jchancellor-FAypfDUnLy

Five beach houses at $505,000 or less on Victoria's Mornington Peninsula

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GUEST OBSERVER
Inner Melbourne's apartments are getting tinier with each new development. 
But, how small is small? 
Secret Agent's updated apartment index reveals that the average size of a 1 bedroom apartment is only 47sqm, and for the more popular 2 bedroom apartment the average size is 73sqm.
<a href="/images/2016/08/26/Screen%20Shot%202016-08-26%20at%2011.52.29%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/26/Screen%20Shot%202016-08-26%20at%2011.52.29%20AM.png" alt="">
 
These figures are frustrating for many homebuyers looking for an apartment that they can actually live in comfortably. Our index, which is based on 870 apartments in inner Melbourne which have sold between the 1st January 2016 and 30th June 2016, offers some insight into where buyers can find apartments with larger than average floor plans. 
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East Melbourne has the largest two bedroom apartments. At almost 90sqm on average, this was a standout with the second largest 2 bedroom apartments being 10sqm smaller at 80sqm in Port Melbourne. 
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These suburbs are generous with the size of their apartments, most likely due to the properties occupying the top end of the market. Buyers here are much more willing to pay for additional space and are not as price sensitive. 
This means a developer in these areas may be able to sell bigger apartments and still get a similar profit to what they would if they sold more smaller apartments. 
On the other hand, Travancore and Prahran have the smallest 2 bedroom apartments at 57.6sqm and 60.9sqm respectively. 
Click to enlarge
<img src="/images/2016/08/26/Blog-2-2.jpg" alt="">
A younger demographic is attracted to these suburbs and thus they tend to be more price sensitive. developers here have designed smaller floor plans and perhaps would be penalised if they built apartments too large in size. The investor market is also more prevalent in these suburbs. 
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Inner Melbourne's smallest and largest apartments: Secret Agent

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GUEST OBSERVER
Secret Agent has updated its price per square metre index for secondary apartments in inner Melbourne. 
An additional 478 apartments have been added to the index so that it now consists of a total of 870 apartments which have sold between 1st January 2016 to 30th June 2016. 
<a href="/images/2016/08/26/Screen%20Shot%202016-08-26%20at%2011.48.21%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/26/Screen%20Shot%202016-08-26%20at%2011.48.21%20AM.png" alt="">
The new average square metre rate for apartments in inner Melbourne is $8,679/sqm.
The inner South remains the most expensive region for apartments with the average totalling $9,664/sqm. 
This is closely followed by the inner East at $9,089/sqm. 
Central and inner North apartment rates are $8,466/sqm and $8,395/sqm respectively. The cheapest region to buy secondary apartments in is the inner West, at $7,124/sqm.
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Inner Melbourne’s most affordable and expensive apartments: Secret Agent

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The last winter weekend sees around 550 homes set to be offered under the hammer on Saturday across Sydney. 
More than last weekend’s 492 and the highest weekend offering since the pre-election rush of 632 recorded on June 25.
But the weekend’s auctions are much less than the record 811 auctioned over the same season-opening Saturday last year.
Domain's senior economist Dr Andrew Wilson said Saturday’s numbers are similar to the auctions on the last weekend of August in 2014 and 2013.
"So far this year there have been 4653 fewer weekend auctions," Dr Wilson advised which is a steep fall of 24.3 percent compared with the same period last year.
Randwick is Sydney’s most popular auction suburb this weekend with eight offerings followed by Chatswood, Marrickville and Wahroonga each with seven.
This weekend nearly 900 Melbourne homes are set to go under the hammer - the highest number since the pre-election rush of 901 auctions on June 25.
Saturday’s listings will be significantly higher than the 653 offered last weekend but below the 1046 auctioned over the same Saturday last year.
Auction numbers in Melbourne have fallen away over winter compared to last year with 1732 fewer auctions conducted – a fall of 7.5 per ent over winter last year. 
Melbourne’s weekend auction market has now recorded four weekends with clearance rates above 75 percent for the first time.
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Sydney weekend auction stock down 24 percent year to date

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NAB board director Phil Chronican has bought the Georgian-style Neutral Bay residence of property investor Denis Ellerker.
The Kurraba Point home sold for $7.7 million to Chronican who owns in Melbourne's Armadale after selling in The Residence, Darlinghurst.
The 1920s Neutral Bay home, with makeover by Michael Suttor and Michael Love, sold through Belle Property’s Tim Foote and Sotheby’s Michael Pallier.
Bought by Ellerker in 1980 for $397,500, it came with an initial asking of more than $9 million last October.
The Shellcove Road home, with tennis court, has gardens by Tony Ward Landscape Design on its 1460 sqm holding. 
Ellerker has bought in Darling Point, paying $11 million for the arts and crafts-style penthouse in the Babworth Estate sold by the widow of the late Macquarie Bank co-founder David Clarke.
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Phil Chronican snares Sotheby's special back in Sydney

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<img src="https://counter.theconversation.edu.au/content/64153/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Truth be told, most Australians live in good housing. This is good news for all of us because our housing is a major determinant of our health and wellbeing. But our very recent research findings, published this month in the Journal of Prevention and Intervention in the Community, and the lessons of history tell us this good news story is at risk.
Ideally, housing provides us with the secure, comfortable shelter that people and their families need to live healthy, productive lives. In general, we have a modern housing stock with good heating and cooling, few major structural problems and few problems with damp and mould. By contrast, bad housing makes it much more likely you will get sick and stay sick once ill.
In Australia’s early years, much of the housing stock was of poor quality, often overcrowded, and posed real risks to people’s health. Slums were common in the inner parts of the major cities and in many country towns.
As late as 1915 bubonic plague was a reality in the poorer parts of our cities and other contagious diseases remained an ever-present risk. Numerous letters to the editor documented a real social concern with the housing standards of the poor.
Government intervention, economic prosperity and tenancy laws all improved housing conditions across Australia. Within a century Australia was defined by good housing and high rates of home ownership. The nation saw off the last of its slums in the late 1940s.
Now the same conditions that gave rise to substandard housing in the 19th century are returning in the 21st, with a likely similar outcome. Recently, the Reserve Bank governor acknowledged young Australians need their parents' help to buy a home in Sydney. But most Australians don’t have a wealthy and doting parent to fund them into the house of their dreams.
The alternative is to live in lower-quality housing and to make do with a home that is relatively inaccessible, fundamentally unaffordable or both.
<h2>A million Australians on the housing brink</h2>
The confronting reality is that poor housing conditions are more prevalent in Australia than we think.
We have a sizeable “hidden fraction” of Australians living in poor-quality housing. In particular, many of our most vulnerable have the double disadvantage of also having housing conditions that we might deem as falling below an unacceptable standard.
In one of the few contemporary analyses of this issue, we used the Household Income and Labour Dynamics (HILDA) Survey, a national longitudinal dataset, and find compelling evidence of a substantial stock of poor-quality housing in Australia.
The scale of our findings is somewhat surprising: we found almost a million Australians are living in poor or very-poor-quality housing. Within this total, more than 100,000 are residing in dwellings regarded as very poor or derelict.
These simple findings are important. They show the existence of a significant (and currently little known) population of individuals living in very poor conditions. At the very least, we need to monitor Australian housing conditions in a systematic way if we are to avoid this problem worsening.
<h2>Harms of poor housing multiply</h2>
Poor-quality housing makes the already disadvantaged even worse off. Younger people, people with disabilities and ill health, those with low incomes, those without full-time (or any) employment, Indigenous people and renters are much more likely to be found in the emerging slums of 21st-century Australia.
Importantly, many of these groups are already disadvantaged and (most probably) have a pressing need for housing that improves or supports their health and wellbeing. People with an existing illness or disability, for example, are almost twice as likely to live in dwellings in very poor condition as people without a disability or illness.
These findings about the size and uneven distribution of the problem should force us to ask what effects poor-quality housing has on people – on their mental, physical and general health? It is clear from our analysis that such housing has measurable impacts on mental, physical and general health. This impact is large enough to be statistically significant.
Given the time it takes to reform policy and plan for our cities and regions, Australia urgently needs to face up to the dismal reality that once again many Australians are living in housing not fit for habitation.
Governments must take steps to ensure the supply of affordable housing of reasonable quality. Otherwise, we are destined to become a nation scarred once again by slums, reduced life chances and shortened lives.
Emma Baker is associate professor, School of Architecture and Built Environment, University of Adelaide and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/emma-baker-172081" target="_blank">here</a>.
Andrew Beer is dean, Research and Innovation, University of South Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/andrew-beer-111469" target="_blank">here</a>.
Rebecca Bentley is associate professor, Centre for Health Equity, Melbourne School of Population and Global Health, University of Melbourne and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/rebecca-bentley-173502" target="_blank">here</a>.
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Why 100 years without slum housing in Australia is coming to an end

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The Gladstone residential market - well known for its big boom and bust cycles - has now been falling for a longer period than it was increasing and the end is not really in sight, according to the valuation firm, Herron Todd White.
"A crystal ball would be a really handy object to have at the moment," HTW's latest report proferred.
It advised new job opportunities in Gladstone are very weak and without a major project on the horizon, the Gladstone economy is likely to remain subdued.
"These job losses have had and will continue to have a direct effect on the already oversupplied property market in the Gladstone region."
HTW said all market sectors continue to show declines in value.
"In order to reignite the local property market another major project would need to start construction.
"A number of smaller projects have been spoken about however nothing of substance seems to be on the horizon."
Over the course of 2016 major employers in the region (Rio Tinto, QAL, NRG) have enacted cost cutting measures through their businesses and cut hundreds of jobs. More recently Aurizon has announced that job cuts will take place in the Gladstone depot.
Adding to this, there are still approximately 2,000 local employees working for Bechtel on Curtis Island finalising construction on the LNG plants, most of whom will be without work within 12 months.
"New job opportunities in Gladstone are very weak and without a major project on the horizon, the Gladstone economy is likely to remain subdued.
"These job losses have had and will continue to have a direct effect on the already oversupplied property market in the Gladstone region."
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No end in sight for Gladstone house price fall: HTW

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Typically one would expect a rate hike cycle to cause mortgage rates to rise, at least at the margin. 
In a nation such as the US, where the mortgage rate is a long-term fixed rate, this should occur as market interest rate expectations firm. Yet for the US hiking cycle that began in late-2015, this has proven to not be the case. 
Not only did the US’ 30-year mortgage rate remain largely unchanged before and after the first rate hike (near 3.90 percent). But eight months on, the prime mortgage rate now stands at just 3.40 percent, having reached a cycle-low of 3.35 percent in early August.
<a href="/images/2016/08/26/Screen%20Shot%202016-08-26%20at%208.33.28%20AM.png" target="_blank">Click to enlarge</a>
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Taking a longer-term perspective, it is apparent that this decline is not a one off. Instead it is the continuation of a multi-year trend: the 2015 average 30-year mortgage rate of 3.90% also being well below 2014’s 4.21%. 
What is behind this downtrend in the mortgage rate? Weaker long- term Fed Fund Rate expectations have certainly played a part. Note that even the FOMC’s own longer-run Fed Funds expectation has been materially marked down over the past year, from 3.75% in mid- 2015 to 3.00% currently. But the relationship between the 30-year mortgage rate and the US 10-year Treasury yield adds a further element to consider: the impact of global liquidity. 
Simply, global liquidity has not only reduced borrowing costs for the US government (like many other nations across the globe), but thanks to the strong link between the US mortgage rate and Treasury rates, the benefit has also flowed to US households. Indeed, households who meet bank credit criteria have never been able to borrow so cheaply. 
Given continued robust job gains and a burgeoning improvement in wages growth, it is not surprising that not only has price momentum been sustained, but so too has sales activity. Indeed, abstracting from the monthly noise, recent months have shown evidence of strengthening real momentum in new home sales. 
The three-month average sales pace for new homes is 22% higher than its year-ago level; for 2016-to-date, the gain from 2015 to 2016 is a more modest (but still robust) 12%. A recent operational update from major US builder Toll Brothers also points to a robust pipeline of sales activity, with reservation deposits for the first three weeks of August reported to be up 23%yr versus 18%yr growth in contracts in Q2. Gains in activity were reported to be broad based across the firms many product lines and geographic regions. 
For existing home sales, having already experienced a material improvement through 2010–2015, recent gains have been much more muted. That said, the level of sales continues to slowly trend higher, which is indicative of robust, broad-based belief in housing as an asset class.
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If new home sales and the lead provided by the Toll Brothers update proves an accurate representation of current activity, then we are likely to see renewed momentum build in dwelling construction through the second half of 2016. This contribution is likely to be marginal, but nonetheless positive. Permits data points to much of this growth coming in the form of medium-to-high rise multiple dwelling buildings. As such, the activity is likely to be concentrated geographically but have a prolonged life, well into 2017.
With regards to policy, the momentum building is not cause for alarm, but it does highlight a need for the FOMC to be conscious of their ability to control market interest rates given rapidly growing global liquidity and all-important long-term market expectations. 
Elliot Clarke is director and senior economist, Westpac Institutional Bank, and can be contacted <a href="https://www.westpac.com.au" target="_blank">here</a>.
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The global weight of money and US housing: Westpac's Elliot Clarke

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GUEST OBSERVER
The Aus-China ‘honeymoon’ is over.  A ‘warts and all’ marriage is developing.
The honeymoon was characterized by the many Chinese-linked deals and investments over the past decade with little public and political influence at the individual deal level.
This is now changing due to:
<ul>
<li>the USA and China are using tensions in the South China Sea to pressure Australia and other countries to ‘pick a side’. Security with the US or economics with China.</li>
<li>a growing public disenchantment of the major political parties (both in the USA and Australia) giving more power to minor parties and far-right or far-left viewpoints</li>
<li>the 1-seat majority Australian government with no control in the senate that strengthens the influence of populist sentiment and political horse-trading</li>
<li>managing an increasing rich and poor divide (winners and losers) – the antithesis of Australia’s egalitarian culture, where ‘winners’ have benefited from a China-driven boom in specific industry sectors (mining, property, education, tourism, agri-foods and the professional &amp; service sectors that supports them.) 
</li>
<li>an economic slowdown in China coinciding with rising public health, environmental &amp; corruption concerns, and China’s own rich-poor divide.</li>
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But this marriage analogy has extra characteristics
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<li>A) It’s not a marriage of equals. China’s GDP is nearly 10 times larger than Australia, its population nearly than 60 times larger.  Economically, Australia ‘needs’ China more than the other way around as reflected in the 2-way trade and investment flows.</li>
<li>B) There’s polygamy… Aus-China is not the only relationship. There are reportedly 100 nations that, like Australia, describe China is their ‘biggest trading partner.’ China’s One Belt One Road seeks to create an economic bloc along the old Silk Road to Eastern and Central Europe and a maritime ‘road’ to South Asia and South East Asia and eastern Africa, reducing the influence of the ‘West’ in the global economy.</li>
<li>C) Opposites attract (or repels?). China’s political and cultural differences are markedly different from Australia’s other main partners, USA, UK, European Union and to some extent Japan. There will be extra effort needed in understanding each other</li>
</ul>
Australia’s Many Calls, Many Actions, China’s One Call, One Action.  
In every marriage, both sides need to work at it. Emotions are as important as economics, especially given the five catalysts mentioned above, and particularly in Australia where voter sentiment counts.
For our Chinese expat readers, it’s important to remember that social media, traditional media, shock jocks, lobbyists and special interest groups all have powerful influences on sentiment in Australia. And by-elections at the Federal level, given the slim majority, can be game changers. Government ‘stability’ under these conditions is more tenuous.
As a 1-party state, what the Chinese government wants domestically, it gets. It’s ‘One Call, One Action’ in China. (Most of the time. We will expand on this in a subsequent essay) compared to Australia’s democracy where there are ‘Many Calls and Many Actions.’
Australian readers would have read about the instances where China seeks to influence public sentiment – scholarships, foundations, donations, cultural &amp; business associations, institutes, industry bodies.  Increasingly, there is soft power in the form of entertainment assets (‘Hollywood’ movies created by Chinese capital).  But all this is nothing new. The Chinese are great copiers of the US.
Where to next?  It’s a marriage, not a divorce
Despite the shaky public sentiment at present, the outlook is still ‘all good’ for most in the Aus-China relationship.  The exception is the handful of big ticket deals with national security implications.  For everyone else, it will be business as usual.
Why this view? A and B above are the key drivers. No one wants to lose economically.  Public sentiment softens when the hip pocket is hurt (like people still buying intensively farmed animal proteins – caged eggs, feed-lot cattle – although they want better animal welfare)
However, housing (or lack of it) is the likely to remain a major sensitivity in the Aus-China discourse. It impacts on everyone.   In hedge fund parlance, people are ‘long’ if they have investment property in addition to their home, ‘neutral’ if they own a home, and ‘short’ if they rent…that is, everyone as an economic position when it comes to housing.  This is on top of an emotional position as ‘home is where the heart is.’
It’s a balancing act between keeping the 60%+ of Australians who own their own home (or are paying it off), reassured of that their biggest asset is safe, vs affordability issues for the next generation of home owners and the 40% who rent (or share house).
How this sentiment plays out will be determined as housing supply from the past 2-3 years of frenetic construction comes on stream.
Chinese and Australian developers backed by Chinese capital are creating more housing supply that will eventually lead to lower rents.  To incentivize developers to take the risk of building homes, they need buyers, which is where the Chinese offshore investors have come into the picture in the past 3 years.
For details of the Chinese love affair with Australia property, please read our article<a href="https://basispoint.com.au/view-china-australian-property/" target="_blank">, </a>The View from China on Australian property which also allays worries about settlement risks and also reports on local Chinese-Australian (vs overseas Chinese) buying power.
In property and other industry sectors, jobs creation along the entire supply chain, as a result of Chinese mass market consumption and investment, will ultimately support sentiment. Think of all the recent ASX listed companies’ annual results that are linked to China, and their plans for growth – Blackmore’s expanded factories etc).
Its jobs and growth. China is the catalyst for this.
Warts and all
To conclude, while the honeymoon is over, and public sentiment is now more influential, the Aus-China relationship is maturing into marriage with its periods of tension and disagreement.
The ‘3rd party’ in this relationship also needs to be factored in.  This 3rd party is the USA, and posturing about the South China Sea by both China and the US will remain just posturing. With nuclear MAD (mutually assured destruction), no one wants to go to war.  And surely no other ‘vassal’ state on either side is naïve enough to enter into a ‘proxy war.’  (well, maybe North Korea might be an exception).   Australia need not be drawn into taking sides.
So yes, the spouse may not be as attractive now since all the warts are being looked at closely.  But a spouse is still a spouse.  There is another MAD – mutually assured development. 
David Chin is managing director, Basis Point, and can be contacted <a href="https://basispoint.com.au" target="_blank">here</a>.
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The Aus-China honeymoon is over… long live the marriage

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The main industry driver of the Mackay residential market over the past ten years has been the resource sector located in the Bowen Basin and the large service industry located in Mackay, according to Herron Todd White.
The mining sector had a significant boom which peaked during 2012 and 2013.
Mackay had the highest median house value for regional coastal cities in Queensland and one of the lowest vacancy rates (under 1 percent).
But the valuation firm has noted since this time, there has been a significant reduction in the mining industry with large redundancies, mine closures and flow on effects.
"This has seen the Mackay residential market fall up to 30 percent since the peak and vacancy rates blow out to in excess of 8%," its latest report noted.
It is considered that without an increase in the coal price and announcement of large projects, the Mackay market will not see any appreciable increase in value.
However, with every downturn there are some silver linings.
"Mackay was always seen as a mining town with inflated prices and increased costs of living associated with the high wages generated in the mining industry.
"Since the downturn, it is now considered Mackay is an attractive proposition to non mining workers such as teachers, police officers, firemen and ambulance offices, who would have not considered Mackay previously."
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Mackay prices now attractive to non-mining workers: HTW

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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