<html><body>
The collapsed construction arm of St Hilliers has resumed work on projects in the ACT and Queensland as administrators seek a buyer for the cash-strapped business.
Construction group Brookfield Multiplex has also been tipped as a possible buyer of St Hilliers Construction, according to a report in The Australian.
Work has resumed at the $30 million Bonner Primary School project, $12 million Airservices headquarters and $10 million Philip social housing complex following a “constructive” meeting with the ACT government earlier in the week.
St Hilliers chairman Tim Casey says work has also resumed at a number of Queensland projects, including housing projects for the Department of Defence, a $14.5 million building extension project at the St Lucia campus of the University of Queensland and a $10 million contract to build modular mining housing for Xstrata in Glenden in the Bowen Basin.
Casey says the $500 million worth of projects undertaken by St Hilliers has now shrunk to about $260 million after it was placed in administration.
Staff numbers at St Hilliers Construction are expected to fall from 360 to 200.
St Hilliers and administrators Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group are also in discussions to reopen an office refurbishment project on Elizabeth Street in the Sydney CBD.
This follows St Hillier announcing that <a href="https://www.propertyobserver.com.au/industry-news/four-st-hilliers-sites-being-built-for-department-of-defence-to-reopen-today/2012052154764">four training facilities</a> – two in Queensland and two in Victoria that are being constructed for the Department of Defence with a combined value of $170 million –would reopen on May 21.
On May 17, St Hilliers announced that four sites had reopened: 153 Clarence Street, Sydney, NSW, a commercial office refurbishment; Chullora Marketplace, Greenacre in Sydney, extension and refurbishment of a retail complex; infrastructure works at Mt Arthur Coal Mine in Muswellbrook; and the mining housing project at Glenden Mine.
Work has also resumed today on a public housing project on Harbour Drive in Coffs Harbour, the Coffs Coast Advocate reports – one of 13 NSW public housing projects that the NSW government has taken over following St Hilliers being placed in administration.
St Hilliers was placed in voluntary administration on May 16 following the collapse of funding for a joint venture project to redevelop the Ararat Prison.
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lschlesinger-FZcF9M3vE6

St Hilliers resumes ACT and Queensland projects with Brookfield Multiplex named as possible buyer

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Melbourne’s property market remained weak in May, with dwelling values falling 2.7% to a median of $490,000, the biggest monthly fall of all eight capital cities, according to the RP Data-Rismark May Home Value Index.
Melbourne dwelling values are now down 8.4% for the year to May, with houses down 8.8% to $534,000 and units down 5.4% to $440,000 – making it the worst-performing mainland capital city market.
Only Hobart is worse, with a 8.9% fall over the past 12 months.
The Victorian capital led a 1.4% fall in capital city values.
Perth dwelling prices fell 1.7% over April to a median of $460,000 while Sydney dwelling prices were down 1.2% to a median of $555,000.
Brisbane dwelling prices were more resilient down just 0.3% over May to a median of $415,000.
The latest drop brings the cumulative national decline to 2.2% over the first five months of 2012, with overall dwelling values down 5.3% over the past 12 months. 
Much of the weakness is confined to the detached housing market rather than apartments with RP Data research director Tim Lawless pointing out that unit values have been much more resilient to value falls compared to houses. 
Over the past 12 months capital city house prices have fallen 5.8% to $470,000, with units down a more modest 1.5% to $430,000.
“It is clear that the market is becoming increasingly price point driven. Unit values across the combined capitals increased in May and they are up by 1.3% over the first five months of the year. 
“Based on median prices, unit prices are generally around 15% to 20% lower than house prices. Investment yields also tend to be higher and units are often located more strategically compared with their detached counterparts,” says Lawless. 
The slide in May indicates that the housing market has not responded to the interest rate cuts in November and December, notes RP Data-Rismark.
According to Rismark managing director Ben Skilbeck, the housing market is being buffeted by a drop in consumer confidence, with the Westpac Melbourne Institute Index of Consumer Sentiment 6.3% below its long-term average despite an overall “positive economic picture”. 
“Concurrently, new mortgage finance commitments aren’t moving a great deal suggesting we are yet to see heightened buyer activity return to the market,” he says. 
Another hurdle for the property market is the large number of properties currently being advertised for sale, with RP Data estimating there were around 308,500 homes advertised for sale across Australia during May, almost 9% more than at this time last year. 
Regional dwelling values were more resilient, falling 0.2% over April to be down 1.4% year-on-year with a median price of $320,000.
Adelaide was the best-performing capital city over the quarter, with dwelling prices up 1% over the three months to May 31, 2012 to $370,000.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/05/rpjune1.gif"><img src="/images/stories/2012/05/rpjune1thumb.gif"></a>
Brisbane values are down 6% year-on-year, Perth values are down 3.9% and Sydney values are down 3.6% since April last year.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/05/rpjune12.gif"><img src="/images/stories/2012/05/rpjune12rhumb.gif"></a>
Rismark managing director Ben Skilbeck says one positive to take away from the soft housing market is that housing affordability is showing a marked improvement. 
“The combination of interest rate reductions, declining home values and disposable income growth has significantly improved affordability. 
“Since dwelling values peaked in November 2010, they are down by 7.6%, the RBA cash rate has fallen from 4.75% to 3.75% and disposable income per household has increased by over 5%,” he says.
Darwin is offering investors the highest gross rental yields of all capital cities - 6% for houses and 5.9% for units with Melbourne offering the lowest rental yields on houses (3.7%) and sharing the lowest rental yield on units with Adelaide of 4.5%
“Rental yields are higher now compared to a year ago across every capital city. In some cities where rents have increased meaningfully such as Darwin and Perth, gross rental yields have improved by 50 basis points or more,” Lawless says.
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Capital city house prices fell 1.4% in May led by big fall in Melbourne: RP Data-Rismark 

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The commercial property market is set to rebound strongly over the next five years, says BIS Shrapnel chief economist Frank Gelber, who claims property trusts have got their current asset sell-down strategy all wrong.
Gelber says property trusts should not be selling their assets and buying back shares but holding them and repositioning them for what he says will be “strongly rising” commercial property market over the next five years.
“It makes a lot of sense for investors to come back into property. This is not a market in anything like equilibrium. It's bumping around the bottom of the cycle, struggling to recover,” Gelber writes in The Australian.
“Inadequate investment and low prices have set the scene for strong returns this decade. It's not a quick-return trader's market. This is a market for investors with a medium-term horizon,” he adds.
According to Gelber, now is the time for the commercial property market to set itself up for strong returns over the next three to five years with “returns in both direct and indirect investment groups should reflect that”.
As the graph below shows, BIS Shrapnel places the Brisbane office market on the cusp of a recovery, just behind Sydney, Perth and Melbourne, which are already heading into an upswing. BIS Shrapnel says industrial property and hotels are further along in the property cycle.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/05/bisjun1.gif"><img src="/images/stories/2012/05/bisjun1thumb.gif"></a>
In its March 2012 building industry update, BIS Shrapnel said that while the NSW office marked was currently weak, “the beginning of an upturn as a lack of new supply combined with stronger economic conditions sees the office market tighten considerably from its current level” in 2012-13. 
In the case of Melbourne offices, BIS Shrapnel says the market is already “well placed to begin a pronounced uptrend” due to its low and falling vacancy rate. 
In light of these upbeat forecasts, Gelber says so there is not much point in property trusts “wasting their equity in a vain attempt to raise their share price”.
“New capital raisings will, in any case, have to wait until market sentiment changes. And it will eventually,” says Gelber.
The real problem, he says, is that both retail and institutional investors are sitting on the sidelines and not investing in both listed and unlisted property trusts and the property market in general.
However, he says that once the economy improves, they will have more income to allocate to investment.
“Meanwhile, we need to keep the lines of communication open,” he says.
“The super funds do have the money. But they too are sitting on the sidelines [and] … I suspect they still regard property investment as relatively risky.
“That's not true. Property was risky in the boom that preceded the GFC – over-geared vehicles, overvalued and at risk of becoming oversupplied. But that's not true now,” he says.
 
</body></html>

Commercial property market 'bouncing along the bottom': Frank Gelber

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The Macquarie Group has made a big push into the property investor space in 2012, growing its investment mortgages book by 33% during the first four months of the year, according to Property Observer analysis of APRA figures.
The investment bank has written $290 million worth of investment housing loans since January 1 – just behind regional players Bendigo Bank ($309 million), Bank of Queensland ($310 million) and Suncorp ($384 million).
A spokesperson for Macquarie told Property Observer the increase in its investment housing lending  was likely due "to the business continuing to ramp up since returning to the [mortgage] market in 2010.
“We have been continuously broadening our distribution and working on various product developments like the SMSF property loan.
“Our book has also recently returned to growth following a period of run-off – the run-off was of course driven by our time out of new mortgage origination between 2008 and 2010,” she says.
Macquarie launched its SMSF Property Loan on May 30 aimed at giving SMSFs direct exposure to residential investment property assets. 
In addition the bank also offers three tailored investment loans, including a 100% investment loan requiring no upfront capital.
Top 15 property investor lenders since start of the year ($ millions)
 
<table style="width: 379px;" border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td nowrap valign="top" width="143">
Bank
</td>
<td nowrap valign="top" width="96">
31-12-11
</td>
<td nowrap valign="top" width="76">
30-04-12
</td>
<td nowrap valign="top" width="64">
New lending
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Westpac
</td>
<td nowrap valign="top" width="96">
$118,380
</td>
<td nowrap valign="top" width="76">
$120,654
</td>
<td nowrap valign="top" width="64">
$2,274
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
ANZ
</td>
<td nowrap valign="top" width="96">
$44,549
</td>
<td nowrap valign="top" width="76">
$46,243
</td>
<td nowrap valign="top" width="64">
$1,694
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Commonwealth Bank
</td>
<td nowrap valign="top" width="96">
$85,928
</td>
<td nowrap valign="top" width="76">
$87,328
</td>
<td nowrap valign="top" width="64">
$1,399
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
NAB
</td>
<td nowrap valign="top" width="96">
$52,134
</td>
<td nowrap valign="top" width="76">
$52,616
</td>
<td nowrap valign="top" width="64">
$482
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Suncorp
</td>
<td nowrap valign="top" width="96">
$8,179
</td>
<td nowrap valign="top" width="76">
$8,563
</td>
<td nowrap valign="top" width="64">
$384
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Bank of Queensland
</td>
<td nowrap valign="top" width="96">
$9,672
</td>
<td nowrap valign="top" width="76">
$9,982
</td>
<td nowrap valign="top" width="64">
$310
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Bendigo and Adelaide Bank
</td>
<td nowrap valign="top" width="96">
$8,553
</td>
<td nowrap valign="top" width="76">
$8,863
</td>
<td nowrap valign="top" width="64">
$309
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Macquarie Bank
</td>
<td nowrap valign="top" width="96">
$876
</td>
<td nowrap valign="top" width="76">
$1,166
</td>
<td nowrap valign="top" width="64">
$290
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Citigroup Pty
</td>
<td nowrap valign="top" width="96">
$2,401
</td>
<td nowrap valign="top" width="76">
$2,547
</td>
<td nowrap valign="top" width="64">
$146
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
BankWest
</td>
<td nowrap valign="top" width="96">
$9,322
</td>
<td nowrap valign="top" width="76">
$9,466
</td>
<td nowrap valign="top" width="64">
$144
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Members Equity Bank
</td>
<td nowrap valign="top" width="96">
$1,168
</td>
<td nowrap valign="top" width="76">
$1,280
</td>
<td nowrap valign="top" width="64">
$112
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
ING Bank
</td>
<td nowrap valign="top" width="96">
$9,469
</td>
<td nowrap valign="top" width="76">
$9,572
</td>
<td nowrap valign="top" width="64">
$103
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
AMP Bank
</td>
<td nowrap valign="top" width="96">
$2,014
</td>
<td nowrap valign="top" width="76">
$2,094
</td>
<td nowrap valign="top" width="64">
$80
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
Heritage Bank
</td>
<td nowrap valign="top" width="96">
$1,187
</td>
<td nowrap valign="top" width="76">
$1,238
</td>
<td nowrap valign="top" width="64">
$52
</td>
</tr>
<tr>
<td nowrap valign="top" width="143">
HSBC Bank Australia
</td>
<td nowrap valign="top" width="96">
$3,843
</td>
<td nowrap valign="top" width="76">
$3,894
</td>
<td nowrap valign="top" width="64">
$51
</td>
</tr>
</tbody></table>
 
Source: APRA
Macquarie CEO Nicholas Moore revealed at a February operational briefing that the bank had launched an enhanced mortgages offering to new Australian clients.
The investment bank also has an equity stake and helped launch mortgage aggregator Vow Financial, which has grown to a network of 700 mortgage brokers – a channel for it to distribute its investment loans and other products.
The APRA figures show that Members Equity Bank has also ramped up its investment mortgage lending since January, lending $112 million to property investors translating into 9% growth for its $1.3 billion investment loan book.
In contrast to Macquarie and ME Bank’s pitch to the investor market, NAB has pulled back from this market, growing its investor mortgage book by less than 1% since the start of the year – adding just $482 million to its $53 billion investment loan book.
Westpac has by far the biggest investment loan book of all lenders at $121 billion and also wrote the highest volume of investment loans ($2.3 billion) over the first fourth months of the year.
ANZ has also been a strong player in the investment space, registering the strongest growth of the Big Four over the fourth months of just under 4%. The bank has written $1.7 billion worth of investment loans since the start of the year.
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Macquarie increases loans to property investors 33% since January: APRA figures

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Property investors are selling themselves short by asking for a lower rent in the hope of securing a longer-term tenant, according to McGrath Estate Agents head of property management Michael Conolly.
Conolly says such a strategy does not usually work and says an experienced property manager is the best way for a property investor to determine what rent to charge tenants.
He says landlords often confused their price expectation with what the local tenant market will bear.
“You might want a certain price for your property based on what you think it’s worth, but the real rental value is based on what the market is willing to pay,” Conolly says.
“We call this ‘market value’, and it’s based on many variables that can change monthly.
“The best way to find out what your property will rent for in today’s market is to talk to an experienced property manager. They are listing and leasing properties daily and have access to data that is not available to people outside the industry,” he explains.
Conolly offers the following strategy for setting the rent: “After seeking advice from a trusted, knowledgeable local expert, always advertise at the maximum rental value at the start of your campaign. You can adjust the asking rent after the first or second round of feedback if you really need to.”
He warns investors against advertising their property at a slightly lower rent to attract a longer-term tenant, saying the strategy sells a property short.
He says due to tight vacancies, most renters will expect regular rental increases and in most cases they’ll continue living in your property when the rent goes up.
“As a general rule, I recommend small, regular increases in rent. Some landlords don't put the rent up for two years and then try and put it up by $50 a week.
“Tenants don't like that. Depending on what the market is doing, I suggest perhaps a $5 to $10 increase in rent every six to 12 months. Just keep the rent ticking over, but not outpacing the market,” he says.
For tips on buying an investment property as your first purchase sign up for next week’s free Property Observer webinar with Michael Matusik: Tips for buying your first property as an investment. The webinar takes place on Tuesday, June 5 at 12.30pm.
</body></html>

Market value, not landlords’ hopes, should determine rent: McGrath

<html><body>
Westpac expects the Reserve Bank to cut the cash rate by 25 basis points next week (June 5) to 3.5% with further rate cuts in July, August and one in the fourth quarter to bring the cash rate to a record low of 2.75%.
Westpac had previously expected the current easing cycle, which began in November last year, to end at 3.25% but now expects a much deeper cycle of rate cuts due to the deteriorating global picture.
Taking into consideration the gap betweeen the cash rate and bank mortgage rates, Westpac chief economist Bill Evans says a move to 2.75% in the official cash rate is likely to see the cash rate somewhere between 100bps and 145bps below neutral (curently asssessed as 4.1% by Westpac) - meaning an average standard variable mortgage rate of between 6.05% and 6.5%.
"In the three previous easing cycles the official cash rate has bottomed out at 150bps (2008/09); 125bps (2001) and 50bps (1996/97) below neutral.In those periods the standard variable mortgage rate bottomed out at 5.8% (2009); 6.05%(2001); and 6.7% (1997).
"The contrast with 2009 is important. Despite the cash rate falling below its GFC trough, we expect the standard variable mortgage rate will bottom out well above the 2009 level," he says.
The cash rate reached a previous low of 3% in April 2009 according to RBA records going back to 1990.
Evans says the two extra rate cuts are based on the banks assessment that “the global environment – read Europe - has deteriorated even further since we revised down our call for the low point from 3.75% to 3.25%.
“In turn this deterioration is expected to have a more severe impact on confidence in Australia than had earlier been expected.
“The stance of policy is currently only mildly expansionary despite the official cash rate being at 3.75%, its lowest level outside the GFC,” says Evans.
Evans says Westpac does not favour a 50 basis point cut scenario in June.
“The decision to cut by 50 basis points in May was mainly driven by direct concerns around the domestic economy.
“To us, there appeared to be an element of catch up with the Bank holding steady in February-April when the domestic case for a cut was strong.
“The decision next week will be built around the impact that the deterioration in global confidence will have on the Australian economy.
“Since the Board meeting in May US 10 year bond rates are down from 1.9% to 1.6% and the Australian equivalent is down from 3.6% to 2.9%.
“However, there are a number of key risk events over the next few weeks (Greek elections on June 17 for example) which will be critical for global confidence.
“We expect a more orderly approach to addressing these issues and thus a more ‘considered’ 25 basis points move.
 “However nobody can be particularly confident in gauging the Bank's meeting-by-meeting strategy for dealing with these issues,” says Evans.
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RBA to cut rates by 25 basis points next week and reduce cash rate to 2.75% by year-end: Westpac

<html><body>
Non-bank lenders share of the total lending market declined markedly in April as mortgage lending remained at record low annual growth. 
In percentage terms banks have almost 92% of the total lending market and non-banks just 8%. 
A year ago banks had less than 90% of the total lending market while 11 years ago (April 2001) they had less than 80% of the total market. 
Total mortgages advanced by both banks and non-banks increased by just 0.4% in April following a 0.4% increase in March leaving the annual pace of growth at 5.3%, according to the latest RBA financial aggregates. 
Annual mortgage growth has been at 5.3% since January, the lowest growth since 1977, according to RBA records. 
Despite this very slow pace of growth banks share of the total lending market increased by $12 billion from $1.708 trillion to $1.72 trillion, while non-banks’ total lending fell by from $155 billion to $152 billion – the fifth successive month (since December) that their total aggregate lending has fallen. 
Banks vs non-banks lending books (figures in $ billions)
 
<table border="0" cellspacing="0" cellpadding="0" width="320"><tbody>
<tr>
<td width="76" nowrap valign="bottom">
Month
</td>
<td width="57" nowrap valign="bottom">
Banks
</td>
<td width="88" nowrap valign="bottom">
Non-banks
</td>
<td width="99" nowrap valign="bottom">
Total lending
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Apr-2011
</td>
<td width="57" nowrap valign="bottom">
1608.0
</td>
<td width="88" nowrap valign="bottom">
163.5
</td>
<td width="99" nowrap valign="bottom">
1771.5
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
May-2011
</td>
<td width="57" nowrap valign="bottom">
1614.9
</td>
<td width="88" nowrap valign="bottom">
164.5
</td>
<td width="99" nowrap valign="bottom">
1779.5
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Jun-2011
</td>
<td width="57" nowrap valign="bottom">
1622.4
</td>
<td width="88" nowrap valign="bottom">
163.6
</td>
<td width="99" nowrap valign="bottom">
1786.1
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Jul-2011
</td>
<td width="57" nowrap valign="bottom">
1625.6
</td>
<td width="88" nowrap valign="bottom">
163.7
</td>
<td width="99" nowrap valign="bottom">
1789.4
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Aug-2011
</td>
<td width="57" nowrap valign="bottom">
1638.4
</td>
<td width="88" nowrap valign="bottom">
163.0
</td>
<td width="99" nowrap valign="bottom">
1801.4
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Sep-2011
</td>
<td width="57" nowrap valign="bottom">
1649.8
</td>
<td width="88" nowrap valign="bottom">
161.6
</td>
<td width="99" nowrap valign="bottom">
1811.4
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Oct-2011
</td>
<td width="57" nowrap valign="bottom">
1658.9
</td>
<td width="88" nowrap valign="bottom">
161.0
</td>
<td width="99" nowrap valign="bottom">
1819.8
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Nov-2011
</td>
<td width="57" nowrap valign="bottom">
1670.4
</td>
<td width="88" nowrap valign="bottom">
162.1
</td>
<td width="99" nowrap valign="bottom">
1832.5
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Dec-2011
</td>
<td width="57" nowrap valign="bottom">
1681.5
</td>
<td width="88" nowrap valign="bottom">
156.4
</td>
<td width="99" nowrap valign="bottom">
1837.9
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Jan-2012
</td>
<td width="57" nowrap valign="bottom">
1685.7
</td>
<td width="88" nowrap valign="bottom">
155.7
</td>
<td width="99" nowrap valign="bottom">
1841.4
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Feb-2012
</td>
<td width="57" nowrap valign="bottom">
1696.6
</td>
<td width="88" nowrap valign="bottom">
155.1
</td>
<td width="99" nowrap valign="bottom">
1851.7
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Mar-2012
</td>
<td width="57" nowrap valign="bottom">
1707.6
</td>
<td width="88" nowrap valign="bottom">
155.0
</td>
<td width="99" nowrap valign="bottom">
1862.6
</td>
</tr>
<tr>
<td width="76" nowrap valign="bottom">
Apr-2012
</td>
<td width="57" nowrap valign="bottom">
1719.8
</td>
<td width="88" nowrap valign="bottom">
151.8
</td>
<td width="99" nowrap valign="bottom">
1871.6
</td>
</tr>
</tbody></table>
 
Over April total owner-occupier mortgage lending totalled $839 billion, up $3 billion from $836 billion in March, while loans for investment property purchases totalled $401 billion compared with $399 billion in March.
 
 
 
</body></html>

Non-banks lose ground as record low mortgage growth continues in April: RBA

<html><body>
Building approvals for private sector houses fell 11.1% in April to 6,590 on a seasonally adjusted basis, according to the latest ABS figures.
Unit approvals fell 2.3% over April to 3,656 leaving overall dwellings approvals down 8.7% following a rise of 6% in March.
The value of residential building fell 6.7% while non-residential building fell 2.8%, according to the ABS.
The biggest monthly private sector housing fall was recorded in Western Australia, where the number of approvals fell 36.7%, followed by South Australia (-26.4%) and Queensland (-11.6%).
Private sector house approvals rose in New South Wales (2%) but were flat in Victoria.
For the year to April, private sector housing approvals are down 15.9% while unit approvals are down 33.8%
Dwelling approvals decreased in April in Western Australia (-46.7%), South Australia (-27.8%), New South Wales (-15.3%) and Queensland (-2.7%), but increased in Victoria (13.0%) and Tasmania (9.6%) in seasonally adjusted terms.
The value of total building approved fell 5.4% in April in seasonally adjusted terms, and has fallen for three months.
Westpac suggested the April WA result has been heavily impacted by the introduction of new building approval legislation in Western Australia which appeared to have created a hole in approvals presumably due to a lengthier approval process.
"That will be a temporary hole with normal transmission resuming in coming months," it noted. It also suggested the picture across the other states showed volatile moves mostly associated with a lumpy pipeline of apartment projects.
For private sector houses, NSW showed a 1.9% gain building on a similar rise in March; Vic had a flat result; and Qld posted a particularly sharp 11.6%mth drop, unwinding policy-related strength through late last year and early 2012. But notably, all states are recording trend declines in private sector house approvals although NSW and Vic are showing moderating trend declines. "Overall, the April dwelling approvals report is weak but not quite the disaster the headline moves suggest," Westpac said.
The ex-WA results suggest activity is continuing to gradually stabilise but has not settled just yet, it concluded.
The HIA says the "sharp" fall in building approvals in April sends a "very negative signal regarding the wider domestic economy"
“Building approvals have continued to fall over 2012 to date and imply a recessionary level of new residential construction in 2012,” says HIA chief economist, Harley Dale.
“That’s not a positive, upbeat outcome to report, but it is a fact which can’t be ignored or denied,” says Dale.
“The last three months of building approvals confirm HIA’s message that housing starts are heading towards 130,000. That’s a recessionary level of new home building activity with obvious flow-on consequences for Australia’s manufacturing and retail sectors, and employment market.
“Leading indicators over recent quarters have pointed to this poor result and, worryingly, suggest more to come.
“The situation can be turned around, but it requires action and that action needs to occur now. HIA once again calls on Governments to collectively arrest the looming crisis through tax relief and an injection of investment and funding into the new housing sector. Such an injection will also provide vital impetus tothe broader non-resource economy,” says Dale.
Commenting on the April figures, Master Builders Australia (MBA) says they show that last year’s rate cuts have failed to have any impact on residential building approvals in April.
Building approvals are heading south as home buyer confidence weakens," says Peter Jones, chief economist at the MBA.
“The April data pre-dates the May rate cut but with home buyer confidence at such low levels it would appear rates need to fall further in order to arrest the decline in the market.”
“With the immediate challenge to restore confidence and drive a private sector recovery, the building industry is banking on further rate cuts to help boost confidence.”
“To underpin economic activity and jobs, the Government and the Reserve Bank need to boost the more than eighty per cent of the economy caught in the ‘slow lane’," says Jones.
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New home approvals down 11% in April with big drop in WA: ABS

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Melbourne’s poorest-quality office stock may become sought after by investors following a new report showing D-grade offices have the lowest vacancy rate of all office types in the city.
The vacancy rate for “inferior quality” D-grade office stock in the city stands at just 2.2%, less than half the vacancy rate of premium-grade stock (5.9%) and well below the 3.5% vacancy rate for high quality A-grade stock, according to the latest City of Melbourne Property Watch report.
Based on current total D-grade office stock of only 121,000 square metres, this equates to around 2,700 square metres of available space to rent.
The least attractive office grade from an investment point of view appears to be C-grade, “average” office stock, which has a vacancy rate of 10% and more than 574,000 square metres of total space.
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No new D-grade space has been added to the pool in the 12 months to January 2012, while there was 3,300 square metres of C-grade office space added to the market over this period.
Demand for D-grade office space indicates that businesses still want to be based in the city, but cannot afford the rents charged for better-quality office space, the Property Council of Australia Hunter regional director Andrew Fletcher said when reporting on a similar phenomenon in Newcastle.
The tightest office market in the Melbourne CBD is Docklands, which has a vacancy rate of just 0.8%.
C-grade and D-grade offices have “poor air quality, poor lighting, low-grade amenities and have no minimum standards for building, floor space or environmental ratings” reported the Canberra Times in January.
The report says there is 623,000 square metres of premium-grade space, 1.8 million square metres of A-grade space and 931,000 square metres of B-grade space.
Yields for premium-grade office space range from 6.75% to 7.25%; they range from 7.25% to 8% for A-grade and 8.5% to 9.5% for B-grade.
Yields on the sought after St Kilda Road office market range: 8.75% to 9.25% for A-grade and 9% to 10% for B-grade. 
The report does not provide yields for C-grade and D-grade stock.
The Melbourne CBD office market (incorporating Docklands) is the second largest in the country and currently comprises 4.1 million square metres of office space.
Only 41,201 square metres of new supply was introduced to the market over the 12 months to January 2012, well below the annual 10-year average of approximately 135,000 square metres.
Report author Amanda Walker says the Melbourne CBD office market has the second lowest vacancy rate of mainland capital cities and has recently enjoyed moderate growth in rents and capital values.
“The market is currently considered balanced that is demand driven, rather than supply led.
“Offshore demand for Melbourne CBD office investments appears to be strengthening, highlighting the market’s resilience and appeal as a global investment destination,” she says. 
“In a period of global economic uncertainty, the outlook for the Melbourne CBD office market remains positive. Continued stability and anticipated rental growth is likely to continue to be a key attraction for offshore investors.
“Limited forecast growth in white collar employment over the next 12 months, together with a lack of new supply in the first half of 2012 is likely to keep vacancies at similar levels before new stock and backfill supply comes online,” she says.
 
 
 
 
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Melbourne’s poorest-quality office stock has tightest vacancy rate: City of Melbourne report

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Property development giant Lend Lease has put pressure on Federal Treasurer Wayne Swan to reconsider his federal budget decision to double the withholding tax.
The tax is charged on the distribution paid to foreign investors who buy into managed funds and is set to increase from 7.5% to 15% from July 1.
The withholding tax was as high as 30% under the Howard government, but was cut to just 7.5% by Kevin Rudd in July 2010.
Lend Lease chief executive Steve McCann has called the tax change “sudden, surprising and unhelpful” and says that the largest real estate and infrastructure projects cannot be funded by even the largest super funds.
“Real estate and infrastructure is heavily reliant on offshore institutional capital, especially in the post-GFC era,” he said in an email reported by the Australian Financial Review.
McCann warns that an increase in the tax will cause foreign investors to recalculate their return on investment and reconsider investing in Australia.
The end result will be that Australia’s ability to compete with other countries for offshore capital will suffer, with a flow-on effect for jobs, McCann says.
Lend Lease has $10 billion worth of construction projects on its books, including the massive Barangaroo development.
In its defence, the government claims the new tax rate is a better balance of the needs of Australia to remain an attractive destination for foreign investors while ensuring a fair return.
Treasury is estimating a tax return of $260 million over four year generated from the withholding tax.
Earlier this week, the Property Council of Australia (PCA) failed to convince the federal government to reverse its decision.
PCA chief executive Peter Verwer was in Canberra yesterday attending the Residential Markets Summit hosted by the National Housing Supply Council following a meeting with Wayne Swan.
A spokesperson for the industry body says Verwer would not be commenting any further than the PCA’s post-budget statement.
Verwer was supported by Financial Services Council head John Brodgen, representing the interests of retail and wholesale fund managers and superannuation funds.
On May 8 following the budget statement, the PCA issued a statement calling the withholding tax increase “another extraordinary misstep” by the Gillard government.
“The Rudd government scored a global coup in slashing the withholding tax to 7.5%, [and] the world responded by sending us more of their money to manage,” said the PCA at the time.
Verwer called the move “desperate and cack-handed” and said it would send “an appalling signal to international investors” daring them to try and invest somewhere else.
“This measure shreds Australia’s ambition to become the leading funds management hub for the Asia-Pacific region, and is another example of this government’s inability to sell a good news message and stick to a clear course.”
 
 
 
 
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Lend Lease slams 15% withholding tax as Property Council fails to convince Wayne Swan to scrap it

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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