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Concerns at the rate of New Zealand house prices growth - and the potential risks that posed to the financial system - has prompted the NZ Reserve Bank to impose restrictions on the loan-to-value ratio (LVR) housing mortgage loans within lending banks from October 1.
The banks will need to restrict new lending with LVRs of more than 80% to no more than 10% of the dollar value of their new housing lending flows.
The announcement has been described as harsher than the 12% "speed limit" that the RBA privately foreshadowed in June.
"Housing plays a critical role in our economy," the governor Graeme Wheeler said in a speech today.
"It represents almost three quarters of household assets and mortgage credit accounts for over half of banking system lending.
"Consequently, housing is a major source of value and of risk to the household sector and the banking system.
"The Reserve Bank focuses on the housing market for three main reasons.
"First, housing and the construction sector can be a source of inflationary pressure if construction costs and rents increase and the ‘wealth effects’ of rising house prices feed through into additional spending or borrowing to finance consumer goods. Second, the possibility of a significant fall in house prices can have important implications for financial stability and on the ability and willingness of banks to lend to support a recovery.
"Finally, declining house prices can have significant impacts on output and employment, especially when the associated de-leveraging of household and corporate balance sheets continues for several years."
The governor said at present, rising construction costs were not a major concern for monetary policy.
Construction costs in Christchurch are up 12% over the past year and recently rising in Auckland with changes in relative prices needed to attract additional workers and resources into the construction sector.
"Our main concern is the rate at which house prices are increasing and the potential risks this poses to the financial system and the broader economy.
"Rapidly increasing house prices increase the likelihood and the potential impact of a significant fall in house prices at some point in the future.
"This is particularly the case in a market that is already widely considered to be over-valued."
Mr Wheeler said the NZ Reserve Bank was not alone in expressing concerns.
"Over the past several months the IMF, OECD, and the three major international rating agencies have pointed to the economic and financial stability risks associated with New Zealand’s inflated housing market.
"In April this year, the IMF suggested that New Zealand house prices were over-valued by around 25 percent, and the OECD has expressed similar views.
 
<img src="/images/stories/2013/08/nz-aug-20-chart-1.gif" width="470" height="410" alt="nz-aug-20-chart-1"> 
 
 
 
<img alt="nz-aug-20-chart-2" height="361" width="470" src="/images/stories/2013/08/nz-aug-20-chart-2.gif">
House prices increased by 16% and 10% respectively in Auckland and Christchurch over the past year (three-month moving average to July 2013 over the same period in 2012).
They increased by 4% over the rest of New Zealand overall, with considerable variability among regions.
Its house prices are high by international standards when compared to household disposable income and rents.
Household debt, at 145%  of household income, is also high and, despite dipping during the recession, the percentage is rising again.
The growth of house prices is occurring after only a small correction following the house price boom of 2003-2007 that saw New Zealand’s house prices increase more rapidly than in any other OECD country, he said.
"Rising house prices in Auckland and Christchurch are mainly a result of supply shortages, although demand-side pressures are also a factor due to pent up demand, the lowest mortgage rates in 50 years, and aggressive competition among banks for new borrowers, including borrowers with low deposits.
"Auckland’s Council suggests that Auckland’s current housing shortage is 20,000 - 30,000 houses with 13,000 houses needing to be built each year to meet future demand. Christchurch’s shortfall is around 10,000 houses. Strikingly, for a city with geographical boundaries equivalent in size to Greater London, and a population of 1.5 million (a sixth of Greater London), Auckland has only produced an average of 4300 new houses annually over the past three years.
Initiatives such as the Auckland Accord, and measures to increase the availability of land zoned for residential housing, and to raise productivity and lower costs in the building sector, are important for increasing housing supply.
"However, it is likely to take considerable time for the supply/demand imbalance in the housing market to correct through supply-side measures alone. In the absence of demand measures, house prices might continue to rise rapidly and pose an increasing risk to financial stability."
Mr Wheeler said the conventional mechanism to help restrain housing demand while working on the supply response would be to raise the official cash rate (OCR), which would feed through directly into higher mortgage rates.
"However, while higher policy rates may well be needed next year as expanding domestic demand starts to generate overall inflation pressures, this is not the case at present.
"Consumer Price Index (CPI) inflation currently remains below our 1 to 3 percent inflation target. Furthermore, with policy rates remaining very low in the major economies, and falling in Australia, any OCR increases in the near term would risk causing the New Zealand dollar to appreciate sharply, putting further pressure on New Zealand’s export and import competing industries.
"In the current situation, where escalating house prices are presenting a threat to financial stability but not yet to general inflation, macro-prudential policy offers the most appropriate response.
"One of the major insights from the Global Financial Crisis (GFC) was how rapidly macro instability could develop even though an economy might be growing close to its potential, and be experiencing sound fiscal policy and price stability.
"Economic and financial risks can build up for several reasons, including over-investment in particular sectors such as housing, a rapid increase in leverage in the banking and shadow banking sectors, and excessive household indebtedness.
"The output losses and increased human distress from the massive adjustments in the balance sheets of households, corporates, banks, and governments are still being felt in many countries five years after the initial impact of the GFC.
"The fallout from the GFC triggered a renewed interest in macro-prudential policy in several countries.
"While micro-prudential policy settings (e.g., capital ratios and risk weights) are fixed on a through-the-cycle basis, macro-prudential policy measures provide an overlay to mitigate significant but transitory risks (such as credit and asset price cycles) that can endanger the economy and the financial system."
In May 2013, the Minister of Finance and the Reserve Bank signed a memorandum of understanding outlining the purpose of macro-prudential policy, the range of policy instruments, and governance arrangements relating to their possible deployment.
The macro-prudential policy framework seeks to build additional resilience in the domestic financial system during periods of rapid credit growth, rising leverage, or abundant liquidity.
The instruments can also help to dampen growth in asset prices that pose risks to financial stability.
The macro-prudential measures may require banks to hold additional capital buffers, have higher proportions of stable funding, or limit the share of high loan-to-value ratio (LVR) residential lending.
Instruments such as the counter-cyclical capital buffer and sectoral capital overlays require banks to hold additional capital against potential shocks in asset markets or particular sectors. A temporary increase in the core funding ratio would make banks more resilient to liquidity shocks and, like capital buffers, serve mainly to increase the resilience of bank balance sheets rather than have a significant dampening effect on asset cycles.
LVR restrictions have the added benefit of dampening asset prices more directly, by affecting the supply and cost of high LVR lending as well as reducing the riskiness of bank loan portfolios.
"High LVR lending, as reflected in mortgage lending to borrowers with less than a 20% deposit, has constituted around 30% of new mortgage lending in recent months – up from 23% in late 2011," Mr Wheeler said.
"This high LVR lending is a significant factor behind the buoyant housing demand in some regions.
"Today we are announcing the introduction of speed limits on high LVR lending with an implementation date of 1 October 2013.
"These are designed to help slow the rate of housing-related credit growth and house price inflation, thereby reducing the risk of a substantial downward correction in house prices that would damage the financial sector and the broader economy.
"Under the LVR ‘speed limit’, banks will be required to restrict new residential mortgage lending at LVRs of over 80% to no more than 10% of the dollar value of their new housing lending flows.
 Allowing for these exemptions, its estimated that the 10% speed limit will effectively limit the banks’ high-LVR lending flows to about 15% of their new residential lending.
"LVR restrictions will support monetary policy.
"While the primary purpose of the restrictions is financial stability, they will also provide the Reserve Bank with more degrees of freedom in conducting monetary policy.
"In particular, they will provide the Bank with greater flexibility in considering the timing and magnitude of any future increases in the OCR."
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jchancellor-FAypfDUnLy

New Zealand Reserve Bank announces restrictions on mortgage lending for borrowers with less than a 20% deposit

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Wallaby Quade Cooper has spent $1.55 million on his contemporary Brisbane home (pictured below).
<img src="/images/stories/2013/08/1.jpg" alt="1" width="364" height="273" style="display: block; margin-left: auto; margin-right: auto;">
It had been listed with $1.65 million plus hopes.
Set on the Hawthorne/Bulimba border, the contemporary home ohas five bedrooms and three bathrooms.
Off the living zone through glass sliding doors is its entertaining patio and pool.
Cooper has been trying to sell his Bulimba townhouse (pictured top carousel) since February.
<a href="https://www.eplace.com.au/property.cfm?propertyID=2447112&amp;realestate=30_Bolan_Street_BULIMBA_QLD_4171" target="_blank">It's listed at between $690,000 and $740,000</a>. 
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Wallaby Quade Cooper spends $1.55 million on his contemporary Brisbane home

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The RBA's latest minutes noted conditions in the housing sector had continued to improve.
But noted that dwelling investment had "thus far" been in a muted recovery relative to past cyclical upturns.
"Auction clearance rates remained high and dwelling prices had increased further in recent months," the minutes noted.
"A number of indicators were pointing to a further recovery in dwelling investment, consistent with the low level of interest rates.
"Residential building approvals, especially for detached housing, had increased in the June quarter and loan approvals were at their highest level in over three years.
"Members did, nevertheless, note that dwelling investment had thus far experienced a muted recovery relative to past cyclical upturns," the minutes noted.
The staff's inflation forecast incorporated the offsetting influences of a slightly weaker outlook for the labour market (and the economy more generally) and the significant depreciation of the exchange rate, with the latter expected to boost prices of tradable items gradually over the next few years.
"In the near term, these effects were expected roughly to offset one another.
"In year-ended terms, underlying inflation was expected to remain close to the lower end of the inflation target range this year, before picking up to around the middle of the target in the first half of 2014 and staying close to that rate thereafter."
In conclusion it noted recent information suggested that the economy was growing at a below trend pace. Indicators of consumer spending had been soft.
"Borrowing for housing had picked up, as had dwelling prices, and there had been an increase in leading indicators of dwelling construction, but to date this had been moderate rather than strong.
"Employment growth was continuing, but at a pace below the rate of growth of the labour force, and unemployment had tended to rise. Inflation remained low and, allowing for the effects of the introduction of the carbon price, was around the bottom of the target range. Wages growth was slowing.
"The revised staff forecasts were for below trend output growth over the coming year or so, before growth was expected to pick up partly because of the effects of the recent exchange rate depreciation.
"The path of business investment spending would be affected by the turning of the cycle in resources investment, where indicators continued to suggest that a decline was likely over the next several years.
"Near-term prospects for business investment outside the resources sector remained subdued, with quite weak levels of confidence across many segments of business.
"In due course, inflation would be pushed up for a period by the lower exchange rate, but even so was forecast to be around the middle of the target range."
The RBA members noted that there had already been a substantial easing of monetary policy over the previous 18 months.
"At recent meetings the Board had held the cash rate steady, but had judged that the inflation outlook might afford some scope to ease policy further, should that be necessary to support demand.
"The forecasts for this meeting suggested no lessening of that scope, but did show a weaker outlook for activity overall.
"The course of the exchange rate would be important. It had declined since the previous meeting, though remained high by historical standards. It was possible the exchange rate would decline further over time, which would assist in rebalancing growth in the economy, though it would also be affected by developments in other countries.
"On balance, with growth expected to remain below trend for longer and inflation to remain within the target even with the effects of a lower exchange rate, members concluded that a lower level of the cash rate would better contribute to achieving sustainable growth in demand consistent with the inflation target.
"Regarding the communication of this decision, members agreed that the Bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further. The Board would continue to examine the data over the months ahead to judge whether monetary policy was appropriately configured."
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RBA notes dwelling investment muted recovery relative to past cyclical upturns

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Mirvac has reportedly beaten rival Lend Lease to enter due diligence to potentially purchase the Harbourside shopping centre in Sydney’s Darling Harbour.
The estimated price has been put at around $275 million, by the Australian Financial Review for the 20,500-square-metre property, owned by developer John Beville.
Jonathan Fox from agents Stonebridge said all parties expressing interest in Harbourside saw a chance of value adding.
The process is expected to take several months.
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Mirvac in due diligence to purchase the Harbourside shopping centre in Darling Harbour

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First-home buyers are being forced out of the market by residential investors drawn by high returns on their intended investment, the executive chairman of Aussie Home Loans, John Symond says.
"It is a windfall for investors," he told News Ltd papers.
"A shortage of accommodation pushes up yields and they can finance their purchases with the lowest interest rates in 50 years," he said.
Saul Eslake, chief economist at Bank of America Merrill Lynch, also says <a target="_blank" href="https://www.propertyobserver.com.au/news/property-boom-to-be-led-by-investors-saul-eslake/2013081864311?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">any potential property boom in Australia will be led by investors buying established homes, pushing prices up</a>.
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John Symond says FHBs losing out to high return seeking investors

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The Elsternwick mansion owned by nightclub owner Nick Zampelis was passed in on a $6 million vendor bid.
The eight-bedroom house on a 2,947 square metre block comes with a garden originally planted by the noted landscape designer Edna Walling.
The 1937 Georgian Revival house has a massive foyer leading to formal living and dining rooms, a fitted study and then to a morning room.
Its contemporary living area is serviced by a kitchen with pink marble counters.
There are four double bedrooms and several bathrooms on the first floor along with a library, billiard room, retreat and kitchenette.
The back balcony overlooks Rippon Lea Estate's windmill and fernery.
The garden comes with a gazebo and a cabana beside the heated pool and spa fitted with a rotisserie, full kitchen, wood-fired oven and a 20-seat teppanyaki table. There's also a rotunda, veggie garden, greenhouse and cubby gardens.
The garden is watered by a bore and a 20,000-litre tank. The former chauffeur's quarters is now guest accommodation.
Biggin &amp; Scott agent Bill Stavrakis told Fairfax Media the property had a $5.95 million reserve.
Negotiations continued with three parties, though none placed a bid, <a href="https://marketnews.com.au/auction-reviews/26959/30-Elizabeth-Street-ELSTERNWICK/" target="_blank">according to the James Buyers Advocates buyers agency report</a>.
Property Observer gathers it last traded at $1.65 million in late 1998 when bought from ACO Refrigeration.
 
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Nightclub owner Nick Zampelis seeks $5.95 million for his eight-bedroom 1937 Elsternwick house with pink marble kitchen

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The former German Consulate in South Yarra is up for sale with $5 million hopes.
The 480 Punt Road offering has been listed by Colliers International agents Ben Baines and Jeremy Gruzewski, in conjunction with Matt Davis and Gerald Delany of Kay &amp; Burton.
The property has been listed by the Federal Republic of Germany who acquired the large mid-Victorian residence in 1955.
The residential zoned, 2,800 square metre block contains several other separate buildings constructed between the 1850s and 1930s. 
Prior to the German Consulate occupying the site, it was owned and occupied by a number of large, well-known families including the Manifolds, Grahams and Morells.
Mr Baines said the property would appeal to a wide range of potential buyers.
“Due to the flexibility of the offering and the character-filled building that occupies a small portion of the land, we expect the property to attract interest from residential developers, residential home owners, medical/aged care users and educational groups (STCA), among others,” he said.
“Developers have, of late, gravitated toward sites of this size and with ‘X’ factor, which this property has in abundance.
“Having not been made available since 1955, and being one of the last remaining sites of this size within South Yarra, we expect strong interest," he said.
Mr Davis said expressions of interest close September 17.
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South Yarra's former German consulate listed after five decades

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The former Surry Hills agent Patrick Scott has been jailed for siphoning $813,936 from his estate agency company trust account, the NSW Fair Trading has reported.
The former LJ Hooker director was the sole signatory of the account which was used for betting up to $77,000 a day from his Sportingbet account.
His total losses over two years amounted to $518,788.
Patrick Scott confessed to investigators in late 2011, telling them he had a gambling problem, before handing over his real estate licence.
News broke in <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/office-of-fair-trading-investigating-lj-hooker-surry-hills-over-trust-account-deficiency-allegations/2011110752232">November 2011</a>, with initial reports of trust account irregularities of between<a target="_blank" href="https://www.propertyobserver.com.au/industry-news/between-%24500000-and-%241-million-unaccounted-at-lj-hooker-surry-hills-nsw-fair-trading/2011110852264"> $500,000 and $1 million</a>, and a <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/lj-hooker-surry-hills-office-relied-on-advances-to-help-cash-flow/2011111052295">reliance on commissions being paid in advance </a>to aid the office cash flow. 
He was sentenced in Parramatta Local Court last Wednesday to 16 months' jail. There was a non-parole period of one year.
Fair Trading commissioner Rod Stowe said the sentence was fair noting the amount of money involved.
"Consumers have the right to have their investments being held in trust by agents kept safe," Mr Stowe told AAP.
"Mr Scott abused this position of trust, by dipping into trust accounts containing hundreds of thousands of dollars belonging to his clients."
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Gambling LJ Hooker Surry Hills estate agent Patrick Scott jailed for agency trust fund laundering 

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Entreprenuer Sir Richard Branson faces hurdles in making it cheaper to stay on Makepeace Island, his Australian resort retreat on Queensland's Sunshine Coast. 
"Council has concerns that a hotel use involving a liquor licence may not be appropriate in this location," was the recent message back from Sunshine Coast Council.
"The noise limits applied in the licence may not offer an acceptable amenity due to the close proximity of residential areas," the council report advised.
The council also has concerns about the adequacy of the existing effluent disposal system to cater for the proposed use of the 20 guests. The application didn't face any local opposition, and there is an expectation the issues raised by the council can been readily overcome. 
The island, which is marketed as accommodating up to 22 castaways, has received a promotional boost by being featured in the latest X Factor series on Channel 7.
Most guests have only been able to stay on Makepeace Island if they book out the whole island.
Pricing began  at $8000 plus a night and at $16,500 peak season and is now at $3250 for the whole island, plus $550 per guest per night.
Futher plans were announced earlier this year with the hope of a re-launch of the island as a boutique hotel towards the end of the year allowing the opportunity to stay without hiring the whole island.
The anticipated introductory pricing will start from <a target="_blank" href="https://makepeaceisland.com/rates/">an all-inclusive $850 per person </a>subject to council approval.
Branson opened his private retreat to the luxury holiday market in <a target="_blank" href="https://www.propertyobserver.com.au/news/sir-richard-bransons-noosa-getaway-for-hire-%E2%80%93-for-%2417000-a-night/2011071150769">early 2011</a> for well-heeled travellers, but now maintains "given the unique nature of the proposed use there is likely to be a strong need for this type of tourist facility, given that it is not provided for elsewhere within the Sunshine Coast region."
Branson, along with Virgin Blue executives Brett Godfrey and former colleague Rob Sherrard, had bought the heart-shaped island for $2.86 million in 2007.
Guests travel to and from the island by riverboat, and it contains a host of facilities, such as an outdoor cinema and a full-sized tennis court, to keep them occupied.
There is a main house, three two-bedroom villas and a four-bedroom guest house. It has a boathouse, lagoon pool and a 15-person spa.
The syndicate has spent more than $7 million on the property, giving it "the look and feel of a Balinese resort."
Under the $850 a person per night plan the price will include meals and transfers, but alcohol will be extra.
"Makepeace Island is my home when I come to Australia,'' Branson told News Ltd's national travel reporter, Angela Saurine.
"Love Noosa, love that part of Australia,' he said.
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Sir Richard Branson's Makepeace Island $850 a night hotel plans hit Sunshine Coast hurdles

National Australia Bank banker David Fodor and his wife, Natisha, owner of the My Nest Home Styling, secured $1.67 million for&nbsp;their four-bedroom Mont Albert&nbsp;house.

With sheltered 11 metre wide rear decking, it came with&nbsp;formal reception rooms and a modern study.

The Marshall White agent Ross Stryker held initial&nbsp;$1.35 million plus expectations pre-auction for the Californian bungalow.

It was redesigned by Jo McIntyre from Beautiful Home three years ago&nbsp;in the coveted Windsor Park Estate.

The <a href="https://www.marshallwhite.com.au/5841341/" target="_blank">117 Windsor Crescent</a> house is listed for August 17 auction.

<a href="https://www.mynesthomestyling.com.au/index" target="_blank">My Nest Home Styling</a>&nbsp;offers&nbsp;room by room analysis along with&nbsp;several pre-sale property styling packages.

Mont Albert nest in high demand as NAB executive sells

Buying into a masterplanned community often means committing to a vision still years from taking shape. At <a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a>, that vision is already visible.

Residents have moved into the completed first stage, landscaped spaces are established, and the next chapter is now underway. Stage 1 has been completed and settled, with Stage 2 now selling off-the-plan.

Designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a>, <a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a> combines attainable apartment living with sustainability initiatives rarely seen at this price point, including rooftop solar, battery storage and a resident EV-sharing program.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/6RNt3AvtBpI?si=JUhuCV2ZRXsYaoJZ" title="YouTube video player" width="560"></iframe>

Located on Schofi​elds Road, just moments from Tal​lawong Metro Station and Schof​ields Train Station, <a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a> has been designed to appeal to a broad mix of buyers, from first-home purchasers looking for a foothold in Sy​dney's property market to downsizers seeking a connected, low-maintenance lifestyle.

<a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a> has been conceived as a thoughtfully planned masterplanned community that will evolve over multiple stages, with buyers now able to secure one, two and three-bedroom apartments within a neighbourhood that is already beginning to establish its identity.

One of the project's defining features is its focus on sustainability. Solar energy systems, battery storage and future EV charging infrastructure have been incorporated throughout the development, reflecting a long-term approach to both environmental performance and everyday convenience.

Sustainability sits at the centre of the development's vision, with solar energy systems, battery storage and future EV charging infrastructure integrated throughout the community.

That emphasis on future-ready living extends beyond the technology. Landscaped communal gardens, outdoor gathering spaces and plans for a future retail precinct aim to create a neighbourhood where residents can access daily conveniences without travelling far from home.

[smartcode_project:default project_id=149637 project_image_fid=351027]

The apartments themselves have been designed with liveability front of mind. Rather than chasing maximum density, the focus has been placed on creating practical homes with generous natural light, usable layouts and strong connections to outdoor space.

Importantly, these design principles have been applied consistently across the one, two and three-bedroom apartment offerings.

The appeal of <a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a> is also closely linked to its location within Syd​ney's rapidly evolving north-west growth corridor. Over the past decade, major infrastructure investment has transformed the area, with new transport links, business precincts and community facilities reshaping suburbs like Talla​wong and Schofiel​ds.

The agent says buyers are increasingly recognising the area's long-term potential.

"Typical buyers that we're finding across <a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a> especially are your first-home buyers, your investors, your upsizers as well as your downsizers," Hawes says.

Connectivity remains one of the project's strongest drawcards. Residents have access to both Tallaw​ong Metro Station and Schofi​elds Train Station, providing links to the Sydn​ey CBD, Norw​est Business Park, Macquari​e Park and other major employment hubs. Retail centres including Rous​e Hill Town Centre and Sch​ofields Village are also nearby, alongside schools, parks and future healthcare infrastructure.

[smartcode_project:default project_id=149637 project_image_fid=351031]

For Stage 1 resident Roji, it is the balance between convenience and comfort that has defined the experience of living at Kew.

"For me, it's a balance of quality and convenience," she says. "Everything I need is right here."

"If I wanted to catch the train, Scho​fields Station is just around the corner. Tallaw​ong Metro connects me to the city."

More importantly, she says, the development has delivered something that cannot be measured in floorplans or specifications.

"<a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a> feels like home."

[smartcode_project:default project_id=149637 project_image_fid=351024]

As Stage 2 enters the market, that lived experience may be one of the project's strongest selling points. Buyers are not purchasing into an untested concept or a future promise. They are joining a community that is already taking shape.

Ongoing investment in transport, retail, healthcare and public open space continues to strengthen the appeal of Syd​ney's north-west growth corridor, while <a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a>'s established first stage provides buyers with a tangible sense of the community's future direction.

For a limited time, buyer can secure a new home at <a href="https://www.apartments.com.au/new-apartments/kew-tallawong-23-27-schofields-road-tallawong-nsw-2762">Kew Tallawong</a> with just a $10,000.

[smartcode_project_cta:default project_id=149637]

Joel Robinson

Kew Tallawong: A growing community taking shape in Sydney's north-west

<a href="https://www.apartments.com.au/developers/freecity">Freecity</a> has received development approval for its 51-storey mixed-use tower at 153-157 Walker Street, North Sydney, set to be one of the tallest mixed-use residential-led buildings in one of Sydney’s most sought-after commercial and residential addresses.

Lodged as a State Significant Development Application (SSDA) through the Housing Delivery Authority (HDA) pathway and approved by the NSW Department of Planning, Housing and Infrastructure following a comprehensive public exhibition and submissions process, <a href="https://www.apartments.com.au/new-apartments/153-walker-street-north-sydney-nsw-2060">the project</a> will deliver 296 apartments, alongside a 170-room, luxury hotel, activated retail and significant public domain improvements.

Situated just 200 metres from Victoria Cross Metro Station, on one of the largest developable sites in North Sydney, the development will rise to 234 metres, making it one of the tallest buildings in the suburb. With an end value of approximately $1.5 billion, the project responds directly to the NSW Government’s mandate to accelerate housing delivery in well-located, transit-connected areas.

<img alt="Freecity gets green light for mixed-use residential and hotel tower in North Sydney" data-entity-type="file" data-entity-uuid="192ec455-94bf-4e01-83ef-922b1b269d67" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Freecity%20-%20Walker%20Street%20North%20Sydney%201%20RESIZED%20.jpg?VersionId=Bzqp0SBHCDvLAHjA4QXkjuGoOEIh73Jl" />

The apartment mix will cater to a broad range of buyers, with 65 studio and one-bedroom apartments, 139 two-bedroom residences, 35 three-bedroom apartments, 48 four-bedroom homes, and nine penthouses. Residents will have access to a dedicated amenity level on Level 33, featuring a swimming pool with views towards the Harbour Bridge, Sydney Opera House and North Sydney CBD, as well as a gym, library, shared kitchen, lounge and outdoor entertaining areas.

The hotel will occupy the lower six levels of the building and include meeting and function spaces, a wellness centre with gym, yoga studio, swimming pool and sauna, further strengthening North Sydney's growing hospitality offering.

At ground level, the development has been designed to improve pedestrian connections through the precinct. More than 700 sqm of retail space will activate the street frontage, while a landscaped through-site link connecting Walker Street, Little Walker Street and Doris Fitton Park will provide new public open space with seating, paving and extensive native landscaping.

Freecity Group Co-Founder and Joint CEO Tony Sun said the project represents one of the most significant development opportunities currently available in North Sydney.

"This is one of the most significant development sites in North Sydney and it comes at a pivotal moment for the precinct," Sun said.

"North Sydney is undergoing a genuine transformation, and this project will contribute housing the city urgently needs while creating a landmark destination."

Executive Director of Development Michael Romano said demand for both residential and hotel accommodation would continue to strengthen as the Metro precinct matures.

"The structural demand for high-quality housing and hotel accommodation in North Sydney is compelling, and will only grow as the precinct continues to evolve around the new Metro station," Romano said.

Architectus has designed the tower, orientating the apartments to maximise views towards Sydney Harbour while introducing a sculpted façade intended to respond to light, wind and the surrounding skyline.

Architectus Principal Marko Damic said the design sought to create a tower that contributes to the public realm as much as the skyline.

"We wanted to design a tower that doesn't just sit in the skyline but actively participates and contributes to city life," Damic said.

First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and <a href="https://www.apartments.com.au/developers/perifa">PERIFA</a> have celebrated the topping out of <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf,</a> marking a significant milestone in the delivery of one of Syd​ney's most anticipated waterfront communities.

Located on Sydney's harbourfront at <a href="https://www.apartments.com.au/developments/putney-nsw-2112">Putney</a>, the project has now reached its highest structural point, with construction progressing strongly towards completion in 2027. 
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The milestone was celebrated on-site with project partners Phoenix Property Investors, Mitsubishi Estate Asia, Versatile Construction, <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, consultants and stakeholders, to recognise the collective effort behind the transformation of the historic waterfront site into a vibrant new residential, marina and lifestyle destination.

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<a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> will deliver a mix of waterfront residences and terraces, complemented by a private 36-berth marina, waterfront dining opportunities and a revitalised foreshore designed to reconnect the community with the river's edge. 
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Abadeen Executive Chairman and Founder Justin Brown said the project represented a rare opportunity to create the next chapter in Sydn​ey's long history of successful waterfront precincts. 
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"Throughout Sydney, some of the city's most sought-after addresses have emerged from carefully considered waterfront precincts such as Woolloom​ooloo Wharf, Walsh Bay and Breakfast Point," Brown said.

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"What makes these places so successful is that they become much more than residential developments," Brown said.

"They bring together homes, hospitality, marina facilities, public spaces and a strong sense of community in locations where future supply is incredibly limited."

Brown has long described absolute waterfront land in Sy​dney as "finite."

"Once these opportunities are developed, they are rarely replicated. That's why Syd​ney's waterfront precincts have consistently demonstrated strong demand and long-term value growth over many decades. 
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"<a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> is one of the few remaining opportunities to secure a residence within a masterplanned waterfront community that combines direct water access, marina ownership opportunities and a genuine village lifestyle just moments from the Sy​dney CBD."

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PERIFA Founder and Managing Director Fabrizio Perilli said the project reflected a shared commitment to delivering exceptional places that create long-term value for residents and the broader community. 
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"The topping out milestone is a significant achievement for the Versatile Group and a testament to the collaboration between all project partners, consultants and contractors involved," Perilli said. 
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"Beyond the residences themselves, <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> will establish a new waterfront destination that celebrates the history, character and lifestyle of this unique location while creating a lasting legacy for future generations."

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Construction is being delivered by <a href="https://www.apartments.com.au/builders/versatile">Versatile Construction</a>, with structural works now substantially complete across the precinct. Attention will progressively shift to the construction of the waterview terraces, apartment façades, services and interior fit-out works over the coming months. 
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With limited residences and marina berths remaining, <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> continues to attract strong interest from owner occupiers and downsizers seeking a premium waterfront lifestyle within close proximity to Putne​y Village, Rh​odes, Top Ry​de and the Syd​ney CBD. 
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As one of the last opportunities to secure a residence within a new masterplanned waterfront community on Sy​dney Harbour, <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> is expected to remain a highly sought-after address for years to come.

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Abadeen, PERIFA, top out Putney Wharf harbourfront precinct

Kew has long been regarded as one of Melbourne's premier residential suburbs. It's a location defined by its grand period homes, leafy streets and some of the city's most prestigious schools, yet it has often sat just outside the spotlight cast on neighbouring Hawthorn and Camberwell.

Increasingly, however, buyers are recognising that Kew offers much of what draws people to those suburbs, with a quieter residential setting, exceptional amenity and long-term owner-occupier appeal.

Within a few minutes' walk, residents can access Kew Junction, one of Melbourne's most established village centres. Cafés, bakeries, restaurants, supermarkets, boutique retailers and everyday services are all on the doorstep, with local favourites including Centonove, Adeney Milk Bar Cafe, and Frank &amp; Harri creating the type of walkable lifestyle that has become increasingly difficult to find in Melbourne's inner east. Beyond the immediate neighbourhood, Glenferrie Road's renowned shopping and dining precinct in Hawthorn and the retail, dining and entertainment offerings of Camberwell Junction are both just a short drive or tram ride away.

The suburb is equally well connected. Tram routes 48 and 109 provide direct access to the CBD, while High Street and Cotham Road connect residents to the wider inner east.&nbsp;Nearby access to the Eastern Freeway also places the Yarra Valley, Mornington Peninsula and Melbourne Airport within easy reach, adding another layer of convenience for weekend travel.&nbsp;It's a rare combination of connectivity and tranquillity, where quiet residential streets sit just moments from some of Melbourne's most established shopping and lifestyle precincts.

For families, Kew remains one of Melbourne's most tightly held addresses. Carey Baptist Grammar School, Xavier College, Methodist Ladies' College, Trinity Grammar, Ruyton Girls' School and Genazzano FCJ College are all nearby, while the Yarra River parklands, walking trails and sporting clubs provide another layer of lifestyle appeal.

It's within this established pocket that developer Ricdanic is delivering <a href="https://www.apartments.com.au/new-apartments/wimba-ave-kew-9-11-wimba-avenue-kew-vic-3101">Wimba Ave</a>, a boutique collection of just 13 residences across two buildings named after its location on the tree-lined Wimba Avenue,&nbsp;within one of Kew's most prestigious pockets where homes have been known to sell up to and above $8 million.

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The residences prioritise the space that buyers are increasingly searching for but struggling to find in established suburbs. Living areas extend beyond five metres in width, ceiling heights range from three to five metres, and apartments open onto private gardens averaging around 125 sqm. Selected residences also feature balconies of approximately 60 sqm, while premium inclusions include Miele appliances, double-glazed windows, EV readiness, fully electric systems and a 7.2 NatHERS energy rating.

Architect Chris Idle says opportunities to deliver homes of this scale within established suburbs have become increasingly uncommon.

"There are very few opportunities to do these kinds of developments in leafy, established suburbs," he says. "To get this level of amenity, natural light, and architectural freedom in such a setting is extremely rare."

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The architecture draws on Kew's established character through the use of handmade Krause bricks, while landscaping by John Patrick introduces 23 plant species, including nine native varieties, creating an environment which focuses just as much on nature as it does the building.

Construction on Wimba Ave is well underway by renowned high-end builder Sinjen, with completion expected in late 2027. Prices start from $2.22 million.

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The enduring appeal of Kew's tree-lined streets and village lifestyle

"For me, it's the location." That was the first thing Chris pointed to when reflecting on why he and his wife Marita decided to purchase at Candela Ivanhoe, the under-construction new apartment development by Salter Brothers in the heart of the north-eastern M​elb​ourne​ suburb. ​

"We've lived here before… everything is here," Chris said.

"Our doctor is around the corner, there's dentists, pilates, everything we need, restaurants, fast food places, two train stations, Ivanhoe and Darebin, both in walking distance. You don't need anything else."

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Just 10 kilometres from Melbo​urn​e's CBD, Ivanhoe combines direct city connectivity with the amenity of an established village community. Residents have access to highly regarded schools, expansive parklands, public transport, and a thriving retail and hospitality precinct centred around Upper Heidelberg Road, all within a neighbourhood that has retained its leafy character despite its proximity to the city.

<a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a> sits within the heart of this established landscape, positioned just moments from Ivanhoe Village and within walking distance of many of the suburb's most sought-after amenities.

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From Candela, residents can access cafés, grocers, wine bars, restaurants and essential services on foot, while Ivanhoe Station and Darebin Station provide direct connectivity across Mel​bour​ne. The development is also surrounded by some of the suburb's best-known lifestyle destinations, including Pinkie, Laurent, Enni, Docasa and Woodfire Pizza e Cucina, alongside Ivanhoe Plaza, Woolworths, pharmacies and specialty retailers.

Green space is another defining feature of the suburb. Darebin Parklands, Ivanhoe Park, Nellie Ibbot Park and the Yarra River trail network provide extensive opportunities for recreation, while Ivanhoe Golf Course and Ivanhoe Tennis Club continue to underpin the area's long-established lifestyle appeal.

The suburb's education offering further strengthens demand. Ivanhoe Grammar School, Ivanhoe Girls' Grammar School, Mary Immaculate Primary School and Ivanhoe Primary School have helped establish the area as one of Melbou​​rne's most sought-after schooling precincts, attracting families and downsizers alike who want to remain connected to the area.

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While location was the priority for Marita and Chris, the project itself also needed to meet their expectations.

"Whilst location was paramount, I was also looking at design of the environment and Candela ticked every box," Marita said.

"We're just thrilled with our choice."

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Developed by <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>, Candela Ivanhoe has been designed to complement its village setting, with an emphasis on generous floorplans, natural light and practical everyday living.

Residents will have access to a range of shared amenities, including a communal rooftop garden and dedicated residential lounge, complemented by a ground-floor café and lifestyle wellbeing centre, helping foster the sense of community already emerging among future owners.

That approach has resonated strongly with the market. More than 90 per cent of purchasers at Candela Ivanhoe are owner-occupiers, with buyers ranging from downsizers and second-home buyers to young families and first home buyers, creating a genuinely multi-generational community of grandparents, parents and children. It reflects a broader shift across Melbo​​urne's apartment market, where buyers are increasingly prioritising neighbourhood quality, lifestyle amenity and long-term liveability.

Currently under construction by Ironside, Candela Ivanhoe comprises 58 apartments. Candela Ivanhoe is scheduled for completion in the coming months, and residents can move in from September. One to four bedroom residences, prices from $649,000 and limited opportunities remaining.

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Jonathan Chancellor

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