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GUEST OBSERVATION
Asymmetry in financial markets means that one party has better information than another.  Generally this is for the advantage of the product promoter not the investor.  It is prevalent in the property investment markets which suffer from limitations in disclosure and advice.
Bold and incisive recommendations which will enhance disclosure and provision of advice have been made by the Financial System Inquiry (FSI) panel:
<ul>
<li>Mr David Murray AO (Chair)</li>
<li>Professor Kevin Davis</li>
<li>Mr Craig Dunn</li>
<li>Ms Carolyn Hewson AO</li>
<li>Dr Brian McNamee AO</li>
</ul>
A persistent theme in submissions was limitations of financial advisers.
The panel advocates a single regulator for conduct and disclosure in financial services.  The proposed Corporation and Financial Services Commission will have the task of ensuring consistent and comprehensive disclosure by all participants including managers and advisers in the property investment markets.
Facilitation, not discouragement, of new exchange markets for property equity investments will be part of the brief of the CFSC.  A single exchange regime is recommended with the CSFC having authority to approve a new financial market which is fair and efficient.  An exchange focused on property investment vehicles becomes feasible.
Among the comprehensive proposed responsibilities of the CFSC is regulatory market conduct which will promote orderly and efficient price discovery, trading and settlement.  In an environment of new information technology the regulations must keep up with the emergence of new means of delivery such as crowd funding for investment products including property funds.
Opaque markets will be eliminated by a regime requiring high standards of disclosure.  A retreat from intensive prudential regulation to market conduct and disclosure is proposed.
An essential component of enhanced property fund markets is an efficient clearing system and structure.  Authorisation and oversight of clearing houses for clearing and settlement of transactions would be a responsibility of the CFSC.  An integral component of enhanced liquidity of private markets in property would result if a centralised clearing system for all property funds emerges from this recommendation.
Greater transparency in property investment markets through reduction in asymmetry would result from implementation of the recommendations of the Financial System Inquiry panel regarding conduct and disclosure by property investment managers and advisers.
Ken Atchison is managing director of <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
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katchison-p6oi8fSFSF

Efficient clearing system and structure essential to enhance property fund market

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GUEST OBSERVATION
The property funds management industry for individual investors has undergone significant change over the past six years as a result of corporate activity and restructuring. Stability and continuity of sound management is an attribute sought by all investors and alignment of interest.
Table one, below, shows the ranking of the five syndicate and unlisted property trust managers with largest funds under management in 2008, 2011 and 2014.  It shows a total change from 2008 to 2014.
Table one - Ranking of Property Syndicate and Unlisted Retail Fund managers (click to open in new window)
<img src="/images/2014/11/26/atchison-nov-26-one.png" alt="">
Source: PIR
In addition to changes in the list of largest managers the emergence of new managers has been a feature of the industry.  This has been driven in part by regulatory changes and by departure of smaller managers thorough poor business management.
Basle III requirements have encouraged the exit by banks from property investment management.
Demands by superannuation regulators for liquidity have hampered the offering of property funds by major platforms.
Inability by owners and managers in arranging recapitalisation of funds and businesses has prompted total departure of some managers.
Many investors prefer unlisted funds over listed REITs. Investors in unlisted property have included high net worth individuals, family offices, SMSFs, dealer group syndicates and individual investors.  Significant investment visa applicants are also participating in this sector.
Offerings of property funds or syndicates in 2014 have been made by 15 different investment managers including the large managers in table one and many new managers.
When assessing new property investment products, sustainability of the investment management business has become a more significant factor.  Alignment of interest between investors and managers are sought.  Real estate attributes, performance prospects and level and structure of fees remain significant.
Ken Atchison is managing director of <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
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How new property fund managers are changing the industry

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GUEST OBSERVATION
Analysis of value of Australia residential property is a focus for individuals as owner occupiers, for investors from Australia or overseas, for financiers and for developers. 
Quantitative easing in developed countries is a factor driving higher housing values.
A recent IMF report concludes that Australia ranks third among developed countries in the ratio of house prices to income and fifth on the basis of house prices to rents when assessed on an historical basis.
<img src="/images/2014/07/04/imf%20july%204%20onbe.jpg" alt="">
Source:  IMF
This clearly implies that Australian residential property prices are at least fully valued. IMF state that detecting excess valuation is more art than science.
In a recent working paper released by the Asian Development Bank, they noted that housing prices nearly doubled in Hong Kong and India over four years 2008 – 2012.  ADB concluded that prolonged quantitative easing made a significant contribution into capital inflows into Asia Pacific.  Capital inflows prospectively had two outcomes being either rising currency or higher asset prices.  Housing prices rose most strongly in economies where currencies did not appreciate.
This analysis supports the view that part of the drive behind strong Australian house prices has been quantitative easing in developed countries.  Australia has been viewed as an attractive investment destination on a relative basis.  Very low or zero interest rates in US, Japan and Europe has prompted international capital flow into Asia Pacific including Australia.  These flows have been in part directed into residential property.
As a result the RBA is in a bind. Despite falling commodity prices the AUD remains strong reflecting capital flows.  Should the RBA raise interest rates seeking to contain residential property prices the AUD will strengthen.  An alternative currency management policy or specific policies directed at reduced lending for residential property or restrictions on ownership are required.
Quantitative easing by the major developed countries has effectively driven Australian housing prices higher.
While quantitative easing continues, Australia will be vulnerable to excessive capital flows into investment assets including residential property unless the Australian dollar rises again.  A rising Australian dollar is unlikely while commodity prices remain weak.
Only when quantitative easing ceases will any excess in residential property values be removed.  This will start in 2015 with the US.  In the interim high residential property values will persist.
Ken Atchison is managing director of <a href="https://www.atchison.com.au/" target="_blank" rel="nofollow">Atchison Consultants</a>.
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Australian house prices are being pushed up by other countries' economic policies

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In addition to listed REITs which own property in the US there are also mortgage REITs which own mortgages and mortgage backed securities.  Assets of mortgage REITs total US$500 billion.  They have a market cap of US $60 billion compared with a market cap of US $550 billion for property REITs.  
In the current interest rate environment mortgage REITs borrow short-term and invest in longer term mortgage backed securities.  They are potentially highly sensitive to interest rate changes.  Gearing employed has been beneficial as borrowing rates kept falling.  Gearing has meant that returns have been strong.  
The quantitative easing (QE) policy adopted by the Federal Reserve in the US has involved purchases of mortgage backed securities which has accentuated the strong return. When QE tapers and borrowing costs rise then the returns will decline. Federal Reserve Governor Stein, US Financial Stability Oversight Council and now the IMF have highlighted this vulnerability.  Mortgage REITs are not the subject of regulatory oversight of capital adequacy.  
When interest rates rise, the risk of falls in market value will increase.  Greater gearing means greater risk. Average gearing is 8.5 times.  
In Australia debenture issuers which share some attributes with mortgage REITs are regulated by ASIC.  Following failure in the sector, ASIC have foreshadowed tighter controls, including a minimum capital ratio adequacy of 8%.  
Failure of financial institutions in the global crisis arose from inadequate equity capital, being excessive gearing, systemic risk of sectors in the financial systems and inadequate liquidity.  
Counter cyclical prudential regulations including capital adequacy are the preferred response supporting public pronouncements about mortgage REITs.
 
<hr>
 Ken Atchison is managing director of <a href="https://www.atchison.com.au/" target="_blank" rel="nofollow">Atchison Consultants</a>.
 
 
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The vulnerability of unregulated US mortgage REITs: Ken Atchison

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Colonial First State Global Asset Management (CFSGAM) is a subsidiary of the Commonwealth Bank (CBA) and manages more than $140 billion in funds including $20 billion in listed property funds. 
The two listed funds are CFS Retail Property Trust (CFX) and Commonwealth Property Office Fund (CPA). 
CBA has proposed that the management rights of CFX and CPA be internalised and that wholesale property funds and shopping centre management rights of CFSGAM be purchased by CFX. 
Provided the payment for the management rights is not excessive, the internalisation proposal should succeed. 
The Gandel Group, which owns 15.5% of CFX and has first right over the stake in CFX owned by CBA (and owns of half of Chadstone Shopping Centre), presumably will be supportive. 
Internalisation is a positive for CFX as is estimated it will improve earnings by 2% to  2.5% because of the size of the platform and the potential cost savings generated. 
Costs savings through internalisation would also increase earnings by between 2% to 2.5% for CPA. 
The most important driver behind the proposed exit of the CFSGAM property business by CBA is the increased capital requirements for holding equity investments under Basel III. 
More demanding capital requirements are being imposed by APRA on equity investments by banks. 
Internalisation of management and sale of the investments in CFX and CPA by CBA will prospectively enhance return on equity of the bank albeit marginally. 
CFSGAM manages $20 billion in property assets across Australia and New Zealand, including 44 shopping centres and 38 office buildings. 
Seventy percent of the assets are in three listed vehicles being CFX, CPA and the Kiwi Income Property Trust which is listed in New Zealand. 
The Australian listed funds are: 
<ul>
<li>CFX which specialise in retail property and has assets of $8.4 billion, a development pipeline of $1.3 billion and market capitalisation of $4.8billion. 
</li>
</ul>
<ul>
<li>CPA, which specialise in office property and has assets of $3.7 billion and market capitalisation of $2.7 billion. 
</li>
</ul>
CFSGAM also manages unlisted property funds and assets. 
It is proposed by CBA that these management rights be sold to CFX.  The funds and assets are: 
<ul>
<li>CFSGAM property retail partnership which is an unlisted fund with $1.2bn in retail asset and four investors, including CPPIB and the Future Fund. 
</li>
</ul>
<ul>
<li>Private Property Syndicate which is an unlisted diversified fund with $550 million in assets. 
</li>
</ul>
<ul>
<li>The DPIF Office and Industrial Funds which are in wind-down. 
</li>
</ul>
<ul>
<li>Co-owned assets managed on behalf of third parties valued at $2.7 billion. 
</li>
</ul>
Sale of the management rights for the unlisted funds and assets to CFX introduces a clear conflict for the CFX management team. 
It also raises the question whether investors in these unlisted property funds would countenance a shift of management into a listed entity where alignment of interest will be uncertain. 
Principal focus of management of a listed property trust will be increasing net operating income, measured six monthly, where increasing assets and funds under management will be factors driving performance.  This contrasts with the focus of unlisted property investors seeking long term total returns on assets. 
If CFX proceeds with acquisition of the management rights for unlisted property funds and assets it would be detrimental for unitholders as the lack of management alignment with investors would place at risk the continuing retention of the management rights of the funds. 
Soon after CBA announced the plans for listed trusts, Dexus brought a 14.9% of stake in CPA, raising speculation about a full takeover. 
CPA and CFX will be susceptible to takeover in the belief that new management will be more successful because of greater skills or economies of scale.  Certainly the share prices will be underpinned. 
Approval of internalisation of management of the listed CBA vehicles is expected and will enhance earnings provided the price is reasonable.  CFX at current price yields 6.8%.  CPA yields 5.6% on a 75% payout ratio.  Both represent fair value with prospects of growth in distribution. 
A hostile takeover offer for CPA after internalisation of management is a real possibility. 
CFX in contrast is less certain until there is clarity regarding the purchase of unlisted property trust and asset management rights.  If they are not acquired by CFX then the prospect of a takeover offer at the current prices will strengthen.
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The implications for the Commonwealth Bank bringing its property trusts in-house

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Stockland and Mirvac are two of the largest Australian listed property companies with market capitalisation of $8.1 billion and $6.3 billion respectively. 
Both companies have suffered from losses through residential development exposure over the last 18 months. 
Small companies which specialise in residential property development include AV Jennings, Cedar Woods, FKP and Peet have also experienced difficult trading conditions and reported significant losses. 
Weak housing and apartments prices, rising construction costs, and low volumes of residential sales across <country-region><place>Australia</place></country-region> have contributed to the losses experienced.  
The chart below shows the movement in residential prices in Australian major cities over 10 years to March 31, 2013.
<img alt="atchison_residential_prices" height="217" width="470" src="/images/stories/2013/larry_uploads/atchison_residential_prices.jpg">
But signs of recovery have emerged.
Perth and <place><city>Sydney</city></place> residential markets showed greater resilience over the last three years than other states. The outlook for market in <city>Sydney</city> is positive, whilst <city><place>Perth</place></city> is stable. 
<city><place>Sydney</place></city> prices had been flat for most of the period since 2004 despite a persistent supply shortfall.  Indications of encouraging building approvals and home loan approvals have emerged in 2013.  Vacancy currently below 2% and improving employment will support demand. 
<city>Perth</city> is the centre of the strongest population growth in <country-region><place>Australia</place></country-region>.  Shortfall in supply persists despite the slowing activity in the resources sector.  New construction is emerging and is needed as the vacancy rate is low at 2.4%. 
In <city><place>Melbourne</place></city> the housing market is characterised by an oversupply of dwellings with significant construction of new dwellings since 2009/2010 and lagging infrastructure investments which will facilitate residential developments.  Strong price rises in 2010 have prompted the growth in supply. 
After strong interstate migration to <state><place>Queensland</place></state> from the southern states for a number of years immigration has slowed particularly as the Gold Coast market collapsed in the global financial crises.  Demand arising from improving employment prospects is now emerging. 
Whilst unemployment and interest rates remain low and population growth from overseas migration continues, fundamentals will improve for developers.  Affordability is assisted by the low mortgage interest rates after a 2% fall in official cash rates. 
In a strategic review conducted by the new CEO of Stockland, Mark Steinart, residential development will be smaller but remain a material part of the business.  It might contribute around 15% of earnings.  An improvement in the residential property outlook will assist Stockland. 
Mirvac similarly has reduced the significance of residential development for earnings as it grows the core real estate asset holdings.  Contribution from residential development of 24% of earnings is expected. 
Outlook for Stockland and Mirvac earnings will benefit from improving economic and property fundamentals which increases profitability for residential development.  The principal driver of return for both is from rent from core property holdings.  Variability of earnings will be greater than REITs that do not engage in development but less than companies that are solely residential property developers. 
Smaller specialist residential developers will benefit directly from emerging improvement in residential property development and are already experiencing some improvement in share prices.
Ken Atchison is managing director of <a target="_blank" href="https://www.atchison.com.au/" rel="nofollow">Atchison Consultants</a>.
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Better residential development outlook good news for some A-REITS: Ken Atchison

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After an extended period of little acquisition, listed property trusts in Australia have commenced buying real estate on terms which will enhance earnings yields.  
In the year to April 2013, REITs have achieved a return of 34%.  This strong performance has reduced the cost of equity capital.  Prospective listed property earning yields have fallen from 8.4% to 6.9% in the past year.  Over the same time interest rates have been reduced.  Official interest rates have fallen from 4.25% to 3.0%.  Interest rates on corporate debt have been reduced by 1.6% from 5.6% to 4.0%.  
Capitalisation rates or yields on property assets in contrast have barely moved.  Weighted average cap rates have been stable at 7.4% for all property over the past year.  Earnings yields, RBA cash rates, corporate bond yields and cap rates over the past five years are shown in the following table.
<img alt="atchisonmay8one" height="122" width="470" src="/images/stories/2013/05/atchisonmay8one.gif">
In 2009 earnings yields were well above cap rates.  Now they are lower than cap rates so that acquisition of property at current yields provide higher earnings for REITs. This will occur whether funded by cash, new equity capital or new debt capital.  
Initial acquisitions which have been made include:  
<ul>
<li>
<city>Westfield redevelopment at Mt Gravatt in </city><city>Brisbane</city>
</li>
<li>
Dexus acquiring an office building in Brisbane
</li>
<li>
Commonwealth property increasing holding in a Sydney office building
</li>
<li>
Charter Hall in due diligence on a Perth office property purchase
</li>
<li>
Mirvac considering an office portfolio purchase
</li>
</ul>
The difficulty faced by the listed property trusts is competition from international investors.  
<country-region>Australia </country-region>accounted for 45% of international direct capital into real estate in the Asia Pacific region in 2011 and 2012.
Ken Atchison is managing director of <a rel="nofollow" href="https://www.atchison.com.au/" target="_blank">Atchison Consultants</a>.
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Listed property trusts in acquisition mode: Ken Atchison

Growing national developer Time &amp; Place has announced its fifth new apartment development.

With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.

The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.

Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.

Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.

fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.

The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.

fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”

The new development will replace five existing two-storey homes.

“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”

Mosman has become increasingly popular with developers in recent years.

Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.

Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.

Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.

Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.

They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.

Joel Robinson

Time & Place to take on Mosman apartment market

Brunswick’s civic heart continues to consolidate around the Merri-bek Arts and Culture Precinct, where a growing cluster of cultural institutions, recreation facilities, and public infrastructure has created one of the inner north’s most defined community hubs.&nbsp;

Within this evolving precinct, <a href="https://www.apartments.com.au/new-apartments/saxon-street-by-milieu-brunswick-31-saxon-street-brunswick-vic-3056">Saxon Street by Milieu</a> introduces new housing directly alongside the civic anchors that shape daily life in the suburb.

At 31 Saxon Street, the project sits immediately beside Brunswick Baths and within moments of Brunswick Library and Town Hall, longstanding institutions that support both community services and everyday amenity.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348840]

Next door, the newly delivered Balam Balam Place arts precinct has emerged as a central piece of Merri-bek Council’s cultural strategy, bringing together creative studios, exhibition spaces, maternal and child health services, and community programming in a purpose-built civic facility. Together, these destinations have reinforced the surrounding blocks as a focal point for public life in Brunswick.

This part of <a href="https://www.apartments.com.au/developments/brunswick-vic-3056">Brunswick</a> forms a key pocket within the suburb’s designated Major Activity Centre, where long-term planning has prioritised walkability, civic investment, and increased housing supply close to transport and services. The surrounding street network reflects that strategy, with compact blocks, established retail corridors and active transport links supporting a lifestyle that is largely navigable on foot.

Within a few minutes’ walk, Sydney Road delivers one of Melbourne’s most recognisable streets, known for its long-running mix of independent retailers, international dining venues and everyday convenience. Tram routes along Sydney Road provide frequent connections south toward the CBD and north through Brunswick and Coburg, while Jewell Station on the Upfield line sits within roughly a ten-minute walk, offering direct train access into the city.

[smartcode_project:default project_id=136434 project_image_fid=348839]

Active transport also plays a significant role locally. The nearby Upfield Bike Path forms a key north–south cycling corridor linking Brunswick through Parkville and into the central city, reinforcing the area’s reputation as one of Melbourne’s most accessible inner-urban neighbourhoods for cyclists and pedestrians alike.

The surrounding civic cluster extends beyond cultural infrastructure. Siteworks, a nearby creative hub supporting artists and community organisations, adds to the concentration of cultural activity in the immediate area. Educational institutions such as Brunswick North Primary School, Brunswick Secondary College and RMIT’s Brunswick campus are also within easy reach, contributing to the suburb’s diverse resident base spanning families, students and professionals.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348841]

Designed by <a href="https://www.apartments.com.au/architects/jackson-clements-burrows-architects">Jackson Clements Burrows Architects</a> in collaboration with <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, the nine-level building has been shaped to respond to the surrounding streetscape, with lower levels aligning to the street and upper storeys stepping back to soften its scale and improve solar access.&nbsp;

Curved balcony forms reference nearby heritage architecture, while the development’s public realm improvements include a widened footpath along Saxon Street to strengthen pedestrian connections between the precinct’s civic sites.

Sustainability also underpins the project’s approach. The building is designed to operate entirely on electric infrastructure supported by rooftop solar, with an average 7.5-star NatHERS energy rating and EV-charging readiness across the development. Shared resident amenities will include a landscaped rooftop terrace with barbecue and covered dining areas intended to encourage informal interaction between residents.

Saxon Street marks developer Milieu's fifth project in Brunswick and continues its focus on design-led infill housing across Melbourne’s inner suburbs.&nbsp;

Construction has commenced through reputable builder Manresa, who will complete the project in 2027.

[smartcode_project_cta:default project_id=136434]

Saxon Street by Milieu connects residents to Brunswick’s cultural and civic core

Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.

In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.

Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.

Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.

[smartcode_project:default project_id=342 project_image_fid=357506]

The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.

Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.

A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.

[smartcode_project:default project_id=342 project_image_fid=357508]

The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.

This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.

[smartcode_project:default project_id=342 project_image_fid=364553]

Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.

Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.

Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.

[smartcode_project_cta:default project_id=342]

Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

[smartcode_project:default project_id=136535 project_image_fid=361030]

Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

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Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

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Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

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Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

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Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

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Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

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Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

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Ken Atchison

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