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The 21st century may be the “Asian century”, but Australia has enjoyed links with the region for over 150 years. The Australian gold rush, which began in 1852 and petered out in the late 1880s, was built on a massive wave of migration from all parts of the world.
The largest foreign contingent on the goldfields was the 40,000 Chinese. In 1861, Chinese immigrants made up 3.3% of the Australian population, the greatest share it has ever been. The 2011 Australian census recorded Chinese-born people at 1.5% of the population.
Most of the Chinese in Australia working on the goldfields were under contract to Chinese and foreign businessmen. In exchange for their passage money, they worked on the goldfields until their debt was paid off, and most returned to China.  About 10% stayed, and their hard work continued, putting down roots to create the Chinatown precincts in central Melbourne and Sydney. These areas continue as the vibrant epicentres of Chinese history, culture and business in Australia.
While the recent high level of Asian investment into the Australian apartment market attracts much publicity, much less is known about the impact offshore developers are having on the Australian residential market.
Many are surprised to know offshore developers are now proposing or building 20,000 apartments across Australia, with Chinese developers second only to Singaporeans in the ranking of offshore sources. This provides offshore developers with close to a 50% market share in this Australian property development sector.
But there is a link between the number of offshore developers and the high level of foreign purchases. Many Asian developers are marketing off-the-plan sales directly back into their home countries and cities through well-known and tried marketing avenues.
This high visibility through marketing and the familiarity offshore purchasers have with the product appears to be a winning formula and has helped push off-the-plan sales to a level that is ultimately supporting such a high foreign developer involvement in Australia. This is certainly the case for Chinese developers.
As at December 2012, Chinese developers have about 4,500 apartments in the development pipeline in Australia. This is a tiny number by Chinese standards, where some of the larger developers will complete about 100,000 apartments in a single year, and there are a number of developers doing that when market conditions allow.
In Australia, Chinese developers have invested at least $A350 million in sites nationally and are proposing projects so far of at least $1.6 billion. This activity is providing an important stimulus to a local property and building industry, which is at a very low point in the economic and financial cycle.
But Chinese developers are still very much in the emerging phase in Australia, behind the Singaporeans, who have been the pioneers of offshore developers here and successful ones at that. Singapore-based Frasers Property stands out as the single largest offshore developer to date, with large and high-profile projects such as Central Park in Sydney and the Frasers Landing/Queens Riverside projects in Perth making a bold mark on the local scene.
Of the 4,500 apartments in the Chinese developer pipeline, 72% are still classified in the broad “planning” phase, which could mean sites have only recently been purchased with plans still being developed (and often final apartment numbers still unknown), with others still going through the development approval process. Singaporean developers have just 39% of proposed stock in the “planning” phase and 44% (2,600 apartments) under construction.
Of the Chinese pipeline, 700 apartments are presently under construction and around 550 recently approved.
The Chinese component of the offshore developer trend in Australia comprises 17 projects of the 58 presently monitored in total. Interestingly, of these Chinese-backed projects, 74% by apartment numbers are in Melbourne, with the percentage of foreign-developed apartments in Melbourne at a still-strong 48%.
Access to sites, a lower general site cost per square metre, a more accessible planning system and the strong cultural/education connections appear to have driven this higher-than-average representation of Chinese-developed apartments in Melbourne. Strong growth in visitor arrivals from China to Melbourne though increased direct flights appears as evidence of the strengthening links.
The Gu family’s AXF Group is the most active of the Chinese developers in Melbourne, with at least 2,300 apartments in the pipeline, including the 3.3-hectare former Kinnears Ropes site in Ballarat Road, Footscray, which could yield as many as 2,000 apartments.
 
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The other prominent location for Chinese developers is the Gold Coast, which represents 12% of the total Chinese-backed proposals. The massive three-tower Jewel project dominates this interest. The AU$1 billion project recently received state government approval and may kick off within the next 12 months. The project will include a six-star hotel and two residential towers.
Jewel's northern tower will have 215 luxury apartments over 41 levels; the central tower will be a six-star hotel with 300 suites and apartments over 45 levels; and the beachfront tower will have 108 premium residences over 35 levels. There will also be office and retail space and a host of resort facilities.
Jewel is being proposed by the Zhuhai Ridong Group and is likely to be completed by 2016, a time when the current oversupply of apartments on the Gold Coast is expected to be well and truly absorbed. Chinese developer Yan Jian is also active in the Gold Coast market.
Showing that Chinese developers are not just active in the larger Australian cities, the Datong Investment and Development Group is proposing two schemes in Adelaide, both in the CBD. The 123 Flinders Street scheme is particularly notable for its very bold design and is proposed to be the tallest building in the city at 39 storeys, a height only recently allowed under new planning controls. The same developers are also proposing the Aria on Gouger project on Gouger Street.
It’s perhaps surprising Chinese developers are not more active in Sydney, given the size of the city, its popularity with Asian visitors and the large number of Chinese apartment buyers in that market. Only 6% of Chinese-backed apartments are actually in Sydney, compared with 35% overall for offshore developers. There is further scope for Chinese developers to move into the Sydney market, but for now, the Singaporean-based groups have established the lead position among the offshore developers.
But why such a pronounced trend in Chinese and offshore developers, and why now? There are many drivers to this trend that have come together at this time, including:
<ol>
<li>The globalisation of property investment and development companies, looking to simultaneously grow business and spread risk by tapping into a number of different demand cycles and sized markets.</li>
<li>Coupled with point 1 is the significant growth of equity capital, particularly in China and the desire to invest part of this into “safe haven” destinations. Australia is considered a reliable investment location and place to do property business, with a secure land tenure system.</li>
<li>Like other property sectors, the price of residential development sites is generally low in Australia at present, coupled with reduced local appetite to acquire. Buying at this low point in the cycle will improve development feasibility and returns. Some previous site owners have been in a financially distressed state, particularly in suburban or country areas, with these sites being sold through receivers. Most site acquisitions by offshore groups have occurred since the global financial crisis, with this activity peaking in 2010-11.</li>
<li>Housing in most parts of Australia is undersupplied, particularly for reasonably priced products. This situation has been created by years of high interest rates and increasing developer charges being passed on to the end product.  The present low confidence caused by global economic uncertainty is further compounding generally low levels of buyer demand, particularly in greenfield housing markets.</li>
<li>The market popularity of inner-city apartment living close to transport, retail and education continues to be high, and this is where most apartments being developed by offshore groups are being proposed and built. This well-defined sector of the market is running counter to the general greenfield housing market at present.</li>
<li>Population growth in Australia remains high, and provided developers can meet the parts of the market where demand is highest there remains a good chance of achieving a successful project with high returns and low risk in a transparent, regulated industry.</li>
<li>Marketing of apartments directly into a developer’s home country has also opened sales to a purchaser group familiar with the developer’s product and has proved successful in reducing development risk by spreading the buyer catchment.</li>
<li>Various governments in Australia have and still provide incentives to purchase new dwellings (below a price point, which is typically in the middle market) and particularly for new apartments. These incentives can take various forms, such as a stamp duty concession or a first-home owners’ grant. These schemes appeared to have brought forward purchasing decisions and the termination of the schemes can lead to a spike in off-the-plan pre-sales and distortion in the cycle of transaction volume.</li>
</ol>
The risk around apartments developed by Chinese or offshore developers appears to be little different from the risk of those developed by local companies. Off-the-plan sales of individual apartments can remove part of the development risk, although risk is then transferred to settlement.
A number of the projects being developed by offshore groups have experienced a high proportion of sales to parties from the country of the developer or countries other than Australia. This does raise the prospect of the developer (or financier, if relevant) not being familiar with the buyers and reduces the ability to trace the ultimate source of funds for settlement.
Yet there appears to be no evidence through this cycle of this risk being realised to a point that has jeopardised the construction and completion of a residential project developed by an offshore company.
In some ways, offshore developers are in a fortunate position to be able to tap into large offshore buyers groups through existing contacts, opening up a source of equity capital not otherwise familiar to Australian developers.
The other obvious risk is oversupply in concentrated locations, leading to the potential for softening in achievable prices for off-the-plan sales. However, were this potential to be realised it should be revealed through difficulty or lack of pre-sales and a response by the developer to defer or alter a project.
Much has been written globally about Australian property prices being too high. Australian residential prices have grown over the longer term on the back of moderate but sustained levels of economic growth, coupled with population, employment and wages growth.
Add to this a general undersupply of dwellings nationwide and a conservative lending policy among domestic banks, and residential pricing appears to have been well supported to its current position. Unless all of these drivers unwind, it appears unlikely the median pricing levels of residential property will adjust downwards in the near term.
Provided offshore (and local) developers continue to carefully respond to the nature of demand for apartment product coming from the marketplace, in terms of product location, concentration, design, pricing, etc. then the supply-side risk appears to be manageable.
Although the connection of the Australian, Chinese and more generally, the Asian economies is a long and growing one, the relationship through the real estate sector still has a long way to develop.
 
Kevin Stanley is an independent real estate analyst with over 20 years' experience in property market research and urban planning.  He is located in Sydney, Australia, and can be <a href="mailto:kevinstanley3@bigpond.com">contacted via email</a>
For more on the allure of Australian property to Asian buyers, <a href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment" target="_blank">download our free eBook. </a> The eBook is also available for<a href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook" target="_blank"> free download in Chinese. </a>
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Eight reasons Chinese residential developers have emerged as a major force in the Australian market: Kevin Stanley

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The 2012-13 federal budget provides little joy for the property industry in the year ahead.
The focus of returning the budget to surplus is a responsible overall direction to take, at such an uncertain time for global sovereign finances.  It will put Australia into a strong position for future budgets, especially compared to other countries.  But the budget provides little short-term confidence and support for business or households, and that’s what is needed at the present time.
But the drivers of real estate demand are presently weak and this budget does little to strenghen them for the long term.  In that sense, this budget is a short term fix, not a reforming budget aimed at stimulating economic or property driver growth.
The retail and housing sectors 
The household sector in particular has little confidence neither to spend in discretionary areas nor to make major commitments, such as buying or building new housing.  Retail is a big employer and housing construction also has significant impacts across the wider economy.  These areas of the economy are under-performing largely due to a lack of confidence, and the budget does little to lift household confidence and drive these bigger commitments. 
The “cash splash” announced in the budget will not provide the sustainable lift in retail spending the sector needs.  Cutting the corporate tax rate would have had a more significant and sustainable impact on business investment, employment growth and hence retail spending than simply giving money away as a “one-off” solution.  While the budget may provide a short-term lift in retail spending in specific areas, such as education, it is not the structural shift the sector needs to get it moving and keep it growing at more reasonable rates. 
Employment generation 
Like households, business is reluctant to commit to employing further staff and these is resulting in weak employment growth, and in turn, demand for office space.  The budget does little in the year ahead to improve business confidence and profitability, meaning there is little chance of stronger employment growth in the short term.  Cutting the corporate tax rate as originally promised would have helped in this area. 
Infrastructure and city building 
The expenditure side of the budget announced last night is narrowly focussed and of little direct support to the property industry.  The area of “city building” in particular is a missed opportunity in this budget.  Australia needs to provide for future urban growth, but there’s little in the budget for this, while there’s a massive need in all Australian urban areas to support the development of more efficient and liveable cities.  Now would be the ideal time to both support the construction industry outside the resources states and provide for longer-term growth through greater commitment to urban infrastructure. 
Only three infrastructure-related projects were announced for funding in the budget, despite the massive needs in this area.  Federal funding for two of these, the duplication of the Pacific Highway and the improvement to rail networks through Adelaide will only proceed if the relevant state government matches the funding.  This is unfair.  These projects are of national significance and will help link the national transport network and should therefore be predominantly federal funded.  The matching of funding between the federal and state levels also risks distorting local infrastructure funding priorities in an environment of limited resources.  The third area of infrastructure funding commitment in the budget is to establish a government agency for the development of the Moorebank intermodal facility.  It is aimed at establishing another government agency and will not fund the construction of this much needed facility; it will not bring the construction of the facility much closer to operational reality. 
Property-related taxes 
One of the few bright spots in the property industry in recent years is the interest and activity from foreign investors.  Part of this interest has been stimulated by the potential to use an MIT structure which amploys a competitive witholding tax rate of 7.5%.  This rate will now be increased to 15% under the budget announced yesterday, removing one of the incentives to invest in Australia compared to other global destinations. 
This is a great pity because the low tax rate was only just getting established, being promoted offshore and used in setting up transactions and portfolio investments.  Last year foreign investors purchased about 30% of investment grade properties in Australia.  Without that, the local market would have looked very thin.
The one thing foreign investors always tell us is they like the stability in Government and law in Australia, especially compared to other parts of the world.  Unfortunately, Australia is not looking as stable and attractive as an investment destination anymore after the quick change to this attractive tax rate. 
Addressing the two-track economy 
The economies of the non-resources based states of New South Wales and Victoria are under-performing at present.  The budget provided an opportunity to specifically address this through re-directing geographically specific spending, such as on infrastructure.
This issue was not specifically addressed in the budget and the growth imbalances in the country will further divide property market performance in the short to medium term.
Kevin Stanley is executive director of global research and consulting for the Asia Pacific region at <a target="_blank" title="CBRE" href="https://www.cbre.com.au/EN/">CBRE</a>.
 
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Federal budget 2012: Little joy in budget for property industry

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Australia has gone from lagging to leading in relation to the rate of recovery in commercial capital values.
Prime office capital values have been rising in most parts of the world since 2009, however growth has varied widely and, perhaps surprisingly, values have increased the least in Australia.
But changes are afoot. Australia has emerged as the slow but steady performer on the world stage – which is one of the key reasons why this market has been such a magnet for offshore investors.
With the rate of capital value growth decelerating in Asia, the US only just limping into recovery and taking into account the changing outlook in Europe, Australia has started to emerge with a more stable, albeit modest, level of capital value growth than other parts of the world.
Indeed, in the third quarter this year, Australia and the US were the equal leaders in relation to quarterly capital value growth after prime office values increased by 1.5%. In the EMEA, which is the epicentre of the world’s economic concerns, capital values grew by just 0.7%, while in Asia values increased by just 1% as cracks began to appear in the region’s economic outlook.
<img src="/images/stories/stanley1.gif">
It is a significant shift given what has occurred at a global level since the start of the property market recovery in 2009. Since that time, global capital values have increased 16.7%, driven by strong growth in Asia, where values have jumped a staggering 28.5% on the back of falling cap rates and globe-leading office rental growth.
Even the EMEA and the US have so far managed to post reasonable growth of 15.3% and 13.6% respectively, despite the negative sentiment in relation to their economies.
By comparison, prime office capital values have increased by just 7.5% in Australia in the past two years, despite our enviable credit rating and the fact that foreign investors have been flocking here in record numbers.
And it is a far slower recovery than what has been experienced in past cycles. In the first two years of the recovery in the early 1990s, values increased 12.8% and in the mid-2000s, after the tech wreck, values increased by 11.9% in two years to restore all the value lost in the preceding downturn.
So what’s so different this time round and why has Australia been lagging The cost of debt is one key reason. The level of tenant demand is another.
Unlike most of the rest of the world, the cost of debt has remained relatively high in Australia and this has restricted the local investment market and left the door open to foreign purchasers, who are mostly using all equity when purchasing.
If investors do borrow to purchase, then the spread between the property yield and the cost of debt is too tight to provide much scope for yield of cap rate compression through the bidding process. 
<img src="/images/stories/stanley2.gif">
On the tenancy front demand outside the resources sector has been hesitant given the uncertain global economic environment and business confidence has remained low, which has slowed decision making.
As a result, Australian prime CBD office rents have grown just 4.0% since the fourth quarter of 2009, which has done little to boost capital values.
But the third-quarter growth numbers point to Australia being the slow but steady performer on the global stage – and this is likely to be a continued magnet for property investors – as is the fact that capital values here need to grow by another 18% to return to pre GFC levels.
The slow and steady pace of change in this cycle in Australia is likely to continue to attract investors comfortable with a more stable recent performance and outlook.
Kevin Stanley is executive director of global research and consulting for the Asia Pacific region at <a target="_blank" title="CBRE" href="https://www.cbre.com.au/EN/">CBRE</a>.
 
 
 
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Australian commercial property market has gone from laggard to leader

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Another volatile week on world financial markets leaves us to wonder what it all means for Australian commercial real estate.  It means many things, but most significanty, it further highlights the safe investment haven Australia has become for many asset classes, especially commercial property.
Foreign investors are increasing their prescence in the Australian commercial property sector, especially in the quality end of the market.  In the first six months of 2011, foreign investors accounted for 28% of transactions above $20 million.  This is twice the long term average.  Although only half done, so far in the 3rd quarter, foreign investors represent a staggering 61% of all sales, by volume.
As global volatility grows, so too does foreign investment into the Australian property market.  By far the largest source of funds is now Asia (20% of all purchases so far this year), as Pension Funds grow, Property Fund Managers become increasingly active and REIT’s also start to spread their wings.  But North America (accounting for 10% of all purchases) is also opening up as a source of funds (despite the high AU$), with new entrants from the USA and Canada now increasingly active.  Add to that the occasional foray by European-based funds and private investors, along with investors coming from South Africa and it seems the whole world is now chasing Australian real estate.
And why wouldn’t you?  We may think we have our problems with floods, cyclones, a looming carbon tax, rising cost of living and an economy too reliant on the mining sector, but compared to the rest of the world, we’re in very good shape and have a very bright outlook.
Despite a patchy recovery, forecasts still point to an improvement in economic growth over the next twelve months and this will underpin the recovery in the commercial property markets as well.  Add to this the famous transparency and ease of doing property business in Australia and the choice to look downunder is obvious.
But the most interesting part of this trend may be only just emerging.  Prices are starting to rise on the back of all this foreign investment.  Yields remain attractively high in Australia relative to other countries.  The traditional theory of the high cost of local debt limiting any scope for yield compression is going out the window as foreigners use mostly equity.  The increasing number of foreign players, coupled with the locals, is starting to put some much-needed tension back into the marketplace and this is resulting in prices being bid up for the most sought-after assets.  This must ultimately flow through to local valuations.
Yes, it may have been a stressful week in the stockmarket.  But by further re-inforcing foreign interest in the Australian commercial property markets, it may have also been an important turning point in restoring capital values.
Kevin Stanley is executive director of global research and consulting for the Asia Pacific region at <a target="_blank" title="CBRE" href="https://www.cbre.com.au/EN/">CBRE</a>.
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Commercial property a safe haven in volatile share market

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

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[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<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/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

Kevin Stanley

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