<html><body>
Almost half a trillion dollars in interest-only (IO) mortgages will convert to principal and interest loans over the upcoming four years, according to the Reserve Bank of Australia.
The Reserve Bank estimates around $120 billion in loans will convert to the more traditional principal and interest loans every year between now and 2021.
Despite the large increases in repayments when IO loans reset - officials estimate they will leap by up to 40 per cent - the Reserve Bank believes most borrowers "should be able to afford the step-up in mortgage repayments" because they have accumulated substantial prepayments.
The RBA published figures last Friday showing that around 30 per cent of all outstanding national mortgage debt will be subject to the IO reset.
Some commentators have likened ths forthcoming transition to the wave of adjustable-rate loans that triggered the 2008 US subprime crisis.
While the Reserve Bank has always downplayed the likelihood of any US-style disaster, it admitted the resets are an "area of potential concern".
It is not the first time the RBA has raised the issue as in February the Reserve Bank deputy governor Michele Bullock warned negatively geared property investors with interest-only loans posed a growing threat to Australias financial system.
Officials noted in Friday's statements that many households should be able to manage the adjustment given they are ahead with their repayments.
There are around 1.46 million outstanding interest-only mortgages.
The warning came just days after the Reserve Bank governor Philip Lowe warned Australian borrowers that a likely official interest rate hike will come as a shock to some households given they haven't seen one in seven years.
The IO reset risk numbers peaked in 2014, banks encouraged property investors to supercharge their borrowing power by taking out loans in which the principle typically isn't repaid for the first five years.
The loans were then taken up by home buyers too.
Given the interest rate on IO loans has risen, the RBA noted switching was already underway voluntarily.
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
But some banks also noted an increase in arrears among some borrowers switching to principal &amp; interest (P&amp;I) loans at the expiry of the IO period of their loans. 
"Partly, this was borrowers taking time to adjust to the higher required repayments (given they would then include principal) but most subsequently returned to meeting their payments in full," the bank noted 
However it was only for a small share of borrowers higher arrears.
"Borrowers voluntarily switching before the IO period expiry – to take advantage of the lower interest rate on P&amp;I loans – were meeting the higher repayments," the RBA noted.
</div>
</div>
</div>
IO loans have been restricted by regulators in two waves of macroprudential restraints - in 2014 and 2017 - amid concerns they were stoking dangerous housing market conditions especially in Sydney and Melbourne.
The issuance of interest-only loans had fallen to around 30 per cent of borrowing by investors.
Last month to was noted brokers are writing significantly fewer interest-only loans as borrower demand plummets.
Mortgage Choice has revealed the proportion of interest-only (IO) mortgages written by its brokers fell by more than 20 per cent in the 12 months leading to February 2018.
<div class="b-article_blog__wrapper__content">
IO loans accounted for 12.22 per cent of all home loans written in February 2018, down by 23.73 per cent to 35.95 per cent.
</div>
The serviceability assessments used to write IO loans incorporate a range of buffers, the RBA noted in the latest Financial Stability Review, published on Friday.
The bank suggested share of borrowers who cannot afford higher P&amp;I repayments - who might not be eligible to alleviate their situation by refinancing - was thought to be small.
"In addition, borrowers who are in this situation as a result of past poor lending practices may be eligible for remediation from lenders."
The RBA noted one important aim was to address the risks posed by the concentration of mortgages on banks’ balance sheets, which have increased in recent years to now account for more than 60 per cent of total loans.
APRA is proposing to raise the minimum amount of capital that must be used to back residential mortgages, relative to other loans.
<div class="page" title="Page 6">
<div class="layoutArea">
<div class="column">
In addition, APRA proposes to make risk weights on mortgages more sensitive to risk. Risk weights would distinguish between P&amp;I mortgages to owner-occupiers and all other mortgages (which would require more capital), and risk weights for ADIs using the standardised approach would also be more sensitive to the outstanding LVR.
</div>
</div>
</div>
</body></html>

jchancellor-FAypfDUnLy

RBA sees potential concern as borrowers move from IO back to principal and interest over next four years

<html><body>
The conversations we had with friends and family over the Easter break will shape the future of this year's residential market.
Pauses in the calendar - and our busy lives - always facilitate a review in our collective thinking.
Sometimes it is quite a marked shift, when we come back keen to buy, but other times the mood turns sombre.
It's the same with the Christmas holidays too.
It is not just these conversations that affect the market.
The calendar dictates, in many suburbs, just when sellers list and buyers buy.
Late spring is always saturated with listings, often so overwhelming the auction clearance rate stumbles into a very weak year close.
Mid-year school holidays and public holidays tend to be times when agents shy away from auctions, reasoning that buyers will be doing other things.
The early Easter break, with school holidays from mid-April, means market momentum won't really emerge until May.
Winter then approaches with many of the mindset that the colder months aren’t a great time to list.
The June long weekend traditionally marks when listings fall.
Many high end estate agents head off overseas for maybe July or August.
But some take a different approach.
"It’s true that there are often fewer people out and about in winter, but the ones who are looking tend to be genuine buyers," Ben Collier at The Agency reckons.
"When this combines with a lower number of listings, it means that the middle of the year can be a great time to sell."
This year kicked off with a slow, but positive start, for early birds after the Christmas break, but the Easter conversations would have noted recent strong listing numbers affecting price growth potential.
While it is good to guage the market mood and timing, it's important not necessarily to always follow the pack.
Indeed property investment is too driven by the herd mentality - and not enough about counter cyclical investing.
The herd mentality is where we are influenced by peers to adopt certain behaviours similar to others. It can be seen in our thinking to the stock market, nationalism and even home décor.
Of course the average home seller does not have the time to follow all the ebbs and flows of their property market.
With a family, full-time job, the footy tips and other priorities, the extent of property market research conducted by even fairly informed sellers or buyers amounts to little.
This leaves markets vulnerable to the herd mentality which as then Reserve Bank governor Glenn Stevens noted in 2015 meant some Sydney house prices were “crazy”.
Thankfully the current market sentiment has shifted away from over exuberance with price growth inevitably weakening. 
The new group mentality may very well save us all from the cliff.
This article first appeared in The Daily Telegraph. 
</body></html>

Holiday breaks a good chance to reset the property mood of the market

<html><body>
BDO, the besieged administrators for Mossgreen, have lost their expensive court case seeking to charge clients of the collapsed auction house for the return of their goods.
Clients were furious at BDO's attempts to charge a fee – levied at $353 per lot – to have their own property returned.
Some lots were going to cost more for their return that their actual value.
The judgement this morning savaged the accountancy firm.
Federal Court judge Nye Perram ruled the administrators were "intermeddling" in other people's goods in circumstances "where they had not been invited to do so, were not performing their statuatory functions and had not been appointed receivers."
"Accordingly, they are not justified in requiring the consignors to pay a levy for the return of their goods," he ruled.
"In reaching this conclusion I have not disregarded what is sometimes referred to as the 'salvage' nature of the work done by external administrators or the concomitant need to ensure that persons are not deterred from doing such work in the future.
"But that well-founded policy consideration cannot provide cover for external administrators who decide to deal in assets of other persons for no reason relating to the administration of which they are seized," the judgement said.
"I conclude, therefore, that the alleged equitable lien does not arise.
"On the other hand, they are entitled to a lien for disposing of goods which ultimately turn out to be unclaimed and they should be entitled to realise those goods and, subject to any claim, apply the proceeds for the purposes of the administration."
The plantiffs are to present short minutes of order giving effect to these reasons within seven days.
As part of the hearing, BDO Australia has asked the Federal Court to rule that all its court costs be paid out of Mossgreen's limited estate.
BDO's administration has previously been embarrassed in February when incomplete official documents were lodged with ASIC, requiring the lodgement of replacement paperwork after Property Observer pointed out the need for the accountancy firm to lodge the full Report as to Affairs from Administrator document.
ASIC was given a 21 page Report as to Affairs from Administrator to upload for public disclosure, not the full 45 page report.
"We lodge what the director provides us with. It is the director’s RATA, not BDO’s," BDO spokeswoman Rosey McGrath advised.
"A RATA with all attachments was subsequently received and lodged yesterday afternoon," she subsequently advised.
The besieged administrator of collapsed auction house Mossgreen had told clients and buyers it would continue to hold onto the artwork and collectibles until payment of the fee was made subject to court orders.
<div>
BDO administrator James White had previously said the amount of the levy was "not negotiable". ASIC has reportedly not yet raised any concerns in relation to the administrators' conduct.
Clients were also furious that the Sydney administrators took the issue to the Sydney Federal Court, and inconvenienced the mostly Melbourne clients.
The administrators meet quick initial resistance when they told the first meeting of creditors in January that were exploring court judgements on whether a constructive trust arrangement existed.
They indicated BDO would likely approach the courts to rule on the matter.
However this course was challenged by Minter Ellison lawyer Lindsay Powers, on behalf of art collector Michele Asprey, who suggested "this was the clearest case of a trust relationship he has encountered." 
The chairman advised that initial legal advice had been obtained and it was considered necessary to obtain directions from the court "due to the various classes of creditors, the estimated shortfall to creditors and the overall complexity of the matter."
The chairman, James White from BDO, however indicated his personal view was that unsold goods held on consignment remained the property of the vendors. 
Michelle Asprey was among those who presented their argument regarding the $353 levy in the actioned court case over the desired BDO fee.
The Australian Financial Review recently revealed that Paul Sumner's Mossgreen lost money for five years before it went under last December.
At its peak in early 2017, Mossgreen had 55 staff.
Sumner started Mossgreen in 2004 by briefly selling artworks from the walls of his rented Macleay Regis, Potts Point apartment, the same building as the Sydney society family, the Copplesons’ who were among his final auction content vendors. The Coppleson family also made representations to Judge Perram.
Documents obtained by Property Observer indicated Paul Sumner's auction house owes its auction vendors $6.8 million, which is $1 million more than administrators calculated ahead of the first creditors' meeting.
There has not been a second creditors meeting yet held, which is another source of bewilderment by the many auction house vendors.
Toorak businessman Jack Gringlas​ remains the biggest secured creditor, being owed $6 million. 
The administration came December 21 following failed fundraising attempts.
<div title="Page 5">
Sumner, who did not attend the first meeting, blamed the current circumstance on growing "a little bit fast."
There were 330 creditors initially identified at the meeting who were told no law required trust accounts for the auction proceeds.
<div title="Page 5">
The names of the creditors are a who's who from across Australia, ranging from passionate collectors, socialites, low key business tycoons to deceased estates.The biggest unsecured creditor stemmed from the auction of a book collection.
</div>
Some $1.75 million is owed to the family of the late wealthy insurance underwriter Martin Copley who auctioned off the books in October.
His auction items included John Gould's monumental The Birds of Australia, a large folio in eight volumes with 681 hand-coloured lithographed plates, bound in dark green morocco by Riviere, an original subscriber's set, which sold at $446,400 including premium.
The second biggest client was another deceased estate, that of the late South Australian building industry icon Alan Hickinbotham and his late wife Margaret. 
It was billed as the highest value collection ever to be sold in Adelaide when auctioned in May by Mossgreen's chief, Paul Sumner.
Sydney's society Coppleson family were listed as owed $465,000, the third highest-owed creditor.
It followed the sale of the contents of the Macleay Regis penthouse, home of the late esteemed gynaecologist Professor Malcolm Coppleson and his late wife, Patricia, who was Vogue Living’s editor-at-large.
The 172 lots included the sale of a $192,200 Ian Fairweather work which had an $80,000 to $120,000 price guidance. A Tim Maguire fetched $117,800.
Mossgreen's last auction on December 7 last year was the contents of the Sheehy family with just 274 of the 438 lots being sold. The family, who are owed $45,000, inquired at the meeting whether Sumner's passport would be surrendered.
</div>
</div>
</body></html>

BDO told to stop intermeddling in Mossgreen client goods

<html><body>
<div>
Three NSW farms put on the market by the Kahlbetzer family have been sold for more than $115 million in total.
The Lachlan River frontage properties were the first to be offered to the market subject to Australia's new foreign investment selling rules to ensure opportunity for local investors and farmers.
But all three were sold to buyers from offshore - to buyers from the United States and the Netherlands.
The properties, Jemalong Station and Jemalong Citrus at Forbes and Merrowie at Hillston, were held by the Kahlbetzers' Twynam Agricultural Group.
The selling agents had more than 50 inquiries with more than 20 parties making inspections
</div>
<div>"In all cases, the accepted offer was the highest offer received for the land and water components of the respective properties," Twynam said in a company statement.</div>
<div>
The properties were brokered by Gary Johnston of Johnston Rural Group Forbes and Bruce Gunning of Ray White Rural International Sydney.
Optifarm, a Netherland-based group, bought the two Jemalong properties.
The US-based group, MERS Global Investments LLC, bought Merrowie though its vehicle MRA Merrowie.
​Optifarm has already been active in the Australian market, buying Uri Park, a mixed farm near Darlington Point in the NSW Riverina last August.
The properties, which include Jemalong Station, Jemalong Citrus at Forbes and Merrowie at Hillston, cover 46,000 hectares.
The Kahlbetzer family, whose wealth is estimated by the ailing Financial Review Rich List at $840 million, has sold around 40 properties over the past decade.
</div>
</body></html>

Kahlbetzers' sell three NSW farms to overseas buyers

<html><body>
The financial services Royal Commission seems set to have significant consequences for home borrowers, and the impact will hit a lot quicker than any interim or final report to the Federal Government.
It already seems likely Commissioner Kenneth Hayne will recommend sweeping changes to the home loan industry arising out of just the first few weeks' hearings.
He has uncovered dreadful lending practices by banks and mortgage brokers.
The worst was NAB employees in greater western Sydney accepting cash bribes over the counter in white envelopes to facilitate loans they knew were based on fake documents in order to collect bonuses.
The fraud and bribery came with the manipulation of a mortgage commission incentive program that incentivised gym owners, taxi drivers, hairdressers and sporting clubs who made money by referring customers to the bank.
Then there's the more prevalent, so-called liar loans, where mum and dad borrowers simply skirt around the reality of their income, expenses, debts and assets when filling in their successful loan applications without much checking by the banks.
"By and large customers are poor historians when it comes to identifying their outgoings," Commissioner Hayne drily noted.
The regulatory backdrop has been Wayne Byres, the chairman of the Australian Prudential Regulation Authority, moving over recent times to put the brakes on dubious lending.
Byres has sought to ensure that standards for property lending are prudent, particularly in what he viewed as an environment of heightened risk.
Given the Australian banking system's very high exposure to both the residential mortgage and commercial property markets, APRA's ultimate goal was to protect bank depositors, because it's their money that banks are lending.
You would expect as Commissioner Kenneth Hayne uncovers further misconduct or poor lending oversight, getting an honest home or investment loan will become a lot harder for borrowers.
And any reining in the bank's zealous willingness to lend will trigger the possibility of a Royal Commission-induced credit slowdown.
This could impact on interest rates.
According to Shane Oliver, chief economist at AMP Capital, tighter lending may have the effect of pushing the next interest rate rise back to 2020, rather than 2019.
"It seems a real risk around the issues of lax lending standards is that banks move to a far more rigorous assessment of applications for loans," Shane Oliver noted.
This was unlikely to cause a full-on credit crunch, Oliver forecasts, but more likely a slowing in credit growth.
UBS analysts have warned too there is a growing risk the RBA was under-estimating the downside risk from tightening lending standards.
“While a tightening of mortgage underwriting standards is prudent, it has a material impact on the economy,” UBS noted.
“It must be remembered that house prices are determined by the demand and supply of credit, not the demand for and supply of housing,” UBS advised.
This article first appeared in The Daily Telegraph.
</body></html>

Financial Services Royal Commission to have big impact on home borrowers

<html><body>
The Newport waterfront market has welcomed its first big money listing of 2018 with Watermark, a luxury Crescent Road trophy home.
<a href="https://www.realestate.com.au/property-house-nsw-newport-127657962" target="_blank">The offering</a>, that has been completely transformed by its owner with the help of interior designer Hare &amp; Klein, has $5 million expectations through McGrath Avalon agents James Baker who has set a March 24 auction.
It joins three other properties on the market in Newport priced above $5 million.
From its its elevated position, the four bedroom home features a lounge on both levels which look out over Pittwater.
Watermark's gardens have featured in design publications as well as featuring on the TV show Garden Gurus.
The 590 square metre established gardens landscaped by local architect Landart come with vergola covered terraces.
There's designer lighting from Gardens by the Night around its Italian mosaic-tiled pool. 
Down by the water there's a self-contained boathouse with loft accomodation. There's berthing for a 65 foot watercraft.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/23/NEWPORT%202.jpg" alt=""> 
This article was first published in The Weekend Australian. 
</body></html>

Waterfront Newport trophy home with boathouse listed

<html><body>
A converted Fitzroy church hall at <a id="x_mcntLPlnk564346" href="https://www.realestate.com.au/sold/property-house-vic-fitzroy-127733910" target="_blank" rel="noopener noreferrer">182 Fitzroy St </a>— which featured as the home in Guy Pearce's TV drama Jack Irish — sold for $2,446,000 on the weekend.
Bettering its reserve by $446,000, there had been $1.9 million to $2 million price guidance for the gold-rush-era Independent Hall which has served as a church, Aboriginal mission, kindergarten and film set.
Since 1973, it’s been a home, Nelson Alexander agent Rick Daniel said.
It has also been the setting for several television productions such as Ricky &amp; Pete and The Tenderhook.
It has been renovated for family and work-from-home living since it last traded for $563,000 in 2001.
Its previous owners include the late Australian composer Peter Tahourdin.
Comprising two bedrooms and a home office, the eclectic property features an expansive living and dining room with beamed ceilings and French doors that open to a deep brick-paved courtyard.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/7/fitzroy%202.jpg" alt="">
The house sold to a young professional woman living elsewhere in Fitzroy.
</body></html>

Fitzroy's Independent Hall sells for $2,446,000

<html><body>
Listing a property at too high a price could be a costly mistake in the current Sydney market, especially if you need to sell.
But getting as close to your asking price or even more is important to feeling good about any property listing.
In an emerging slowing or falling market, the mismatch between asking and paid prices is likely to be at its highest, possibly due to pride or naivety.
To arrive at the right listing price, it's wise to research the recent sales.
These were your recent competition, so your estate agent should be able to prepare a comparative market analysis of comparable homes, detailing the initial price, how much the home actually fetched, and how long it took to sell.
Sales so far this year are relevant, but look back to 2017 to understand how prices are trending.
Don't just appraise the prices on the handout or the computer, best also go and see how your offering stacks up against the sold stock.
A drive by the homes provides a curbside appraisal, and you ought be popping in to open houses so you can get a better sense of what buyers are paying.
Pricing was less of a challenge in the recent hot markets when the scarce inventory triggered enthusiasm among overly keen buyers.
Discounting on asking prices is however normal, and CoreLogic currently puts it at 5.6 percent for private treaty sales that are taking around 31 days. This time last year it was a 4.1 percent required discount after just 27 days on market. 
Houses in the UK have been selling at around three percent discount.
The biggest recent Sydney gap I've seen between asking price and selling price was over 20 percent. They wanted $27 million and took $21 million in Sydney's pricey east.
But is is happening in suburbs all over Sydney.
No wonder buyers reckon the market is falling their way, so it might be wise for vendors to marginally underprice to get ahead of the curve.
Especially if you are upsizing and have secured something at say 10 percent off.
Any price indication needs to ensure you gain maximum buyer interest.
Certainly if you don’t get any interest or offers in the first week or so, especially for auction listings, then it's likely you’ve priced too high.
Much of the pricing process relies on trust in your knowledgable estate agent.
You want honest advice from day one, so don't fall for the agent who volunteers an extraordinary potential sale price simply to get your listing.
Check their own asking price to sale price track record as these agents will seek to crunch your expectations sooner or later.
This week saw a forecast that Sydney house prices are likely to fall 4.2 percent this year, although Moody's Analytics said the correction would be short-lived, with prices set to recover a modest 0.9 per cent next year.
It's best remembered that our property market is fluid and complex in actual individual outcomes. Property pricing is, after all, emotional not prescriptively scientific.
This article was first published in the Saturday Daily Telegraph.
 
 
 
</body></html>

Asking price realism and flexibility needed for successful property listings

<html><body>
Ahead of the sale of his Elizabeth Bay penthouse, Crown Resorts boss John Alexander has reduced the asking price for Possumwood, his spare Southern Highlands retreat.
Possumwood, now with Anne Stone of McGrath Bowral, was initially listed with $2.5 million to $2.75 million hopes.
It's now $2.1 million to $2.3 million, having now sat on the market for nearly a year.
The two hectare Robertson property has gardens by Myles Baldwin.
Myles Baldwin was introduced to JA by Leo Schofield back to the days when Leo had Bronte House where Myles was the head gardener. Baldwin had trained at Sydney’s Royal Botanic Gardens.
Alexander will base himself at his nearby imposing estate after the reputed $8 million sale of his three bedroom Del Rio penthouse in Elizabeth Bay.
Alexander, who has been right hand man to casino tycoon James Packer for a number of years, and his photographer wife Alice have owned the two hectare estate in Robertson since 2006.
Offering views over the Morton National Park, the home comes with five bedrooms, two bathrooms and a steam room.
The couple will be based at their nearby 38 hectare estate that they paid $2.38 million for in 2010.
This article was first published in the Saturday Daily Telegraph.
</body></html>

Crown boss John Alexander reduces asking price on Possumwood, Robertson

<html><body>
Veteran investor Charles Curran has listed the Springdale horse stud near Canowindra in the Lachlan Valley in central western NSW.
Curran, who will turn 80 this year, maintains investments in shares, property and rural assets. 
<div class="article__content">
<div class="parsys parsys-article-content-top">
<div>
<a href="https://www.propertyobserver.com.au/%20https:/www.realestate.com.au/property-mixed+farming-nsw-canowindra-7953290" target="_blank">Springdale Stud Farm</a>, a 104 hectare property on the Belubula River, has been developed as a thoroughbred horse breeding property.</div>
<div> </div>
<div>Its best known standard bred being Inter Dominion winner Koala King. 
It is being marketed by Chris Meares at Meares &amp; Associates who expects between $3.3 million and $3.6 million given interest from the horse world, as well as from commercial lucerne farmers or rural lifestyle investors.
Springdale includes a four-bedroom brick home in established gardens, along with a brick horse complex including six stables and separate grooms' quarters.
This article was first published in the Saturday Daily Telegraph.
</div>
<div class="cq-article-content-paras section">
  
</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-paras section"> </div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-paras section"> </div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-paras section"> </div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-paras section"> </div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-paras section"> </div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-paras section"> </div>
<div class="cq-article-content-slider section"> </div>
<div class="html-entry section"> </div>
<div class="html-entry section"> </div>
</div>
 
<div class="parsys-article-content-bottom parsys"> </div>
</div>
</body></html>

Charles Curran lists farm at Canowindra

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.

&nbsp;

&nbsp;

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.

&nbsp;

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.

Joel Robinson

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> 
&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

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]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Jonathan Chancellor

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News