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Sydney-based construction group Ganellen has yet to take over any of the building projects that were being carried out by collapsed builder Kell &amp; Rigby.
Ganellen commercial project director Chris Ahern told Property Observer the company was still in discussions on some of the projects but had not signed any contracts.
Ganellen negotiated an agreement with the administrators <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/ganellen-to-take-on-kell-rigby-projects-as-reed-construction-also-faces-difficulties/2012030153639">as the preferred bidder on 15 major projects worth $50 million from the Kell &amp; Rigby collapse.</a>
At a creditors’ meeting in April administrators PBB said Ganellen was tendering on three projects but had not secured any tenders to date.
Under the agreement with administrators, Ganellen is to report the value of unsecured creditors they pay on contracts they secured, but at the time no contracts had been awarded.
The projects range from a luxury housing estate for Lend Lease to school libraries for a council.
Ganellen chief executive Peter Maneas told The Australian that only two of the 15 projects suited its business but the company could not reach “equitable terms” on either of these projects.
Maneas says he has a responsibility the staff, shareholders and clients to only pursue projects that are financially viable.
Some former clients of Kell &amp; Rigby have put out fresh tenders, including Bankstown City Council, which is seeking a builder for its $20 million library.
Lend Lease has re-tendered its St Patrick’s Estate Manly luxury house project.
Creditors of <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/construction-company-kell-rigby-stops-work-as-financial-talks-collapse/2012021053329">Kell &amp; Rigby, one of Australia’s oldest building companies</a>, voted at an April 2 meeting to wind up the company.
The company shut down its operations on February 8 with administrators Mark Robinson and Stephen Parbery appointed on February 10.
About 1,400 unsecured creditors – many of whom are employees of Kell &amp; Rigby subsidiary businesses and contractors – are owed more than $16 million and will receive as little as 9¢ for every dollar owed, with some receiving nothing.
They include plumbing business G.M. Considine Plumbing, which is owed $500,000. At the time of its collapse it was managing 24 projects and employed 124 staff.
Former employees, which rank as priority creditors, will receive just 24¢ out of every dollar of the $4.3 million they are owed. The first secured creditor is the Commonwealth Bank, which is owed $2.2 million. Proceeds from the sale of Kell &amp; Rigby’s Strathfield head office will pay the bank out in full.
The second secured creditor is property developer Mulpha, which is owed $3.5 million, with administrators estimating a shortfall in excess of $2 million.
In total secured creditors will be refunded $3.67 million.
The administrators’ report says that over the past 10 years Kell &amp; Rigby worked on more than $400 million of projects in the residential and aged-care sectors, including projects with a number of public companies in addition to working with numerous private developers and investors.  Projects ranged in size from $3 million to more than $85 million.
It first ran into difficulties as far back as 1998 when it commenced two significant residential projects Paddington Green and <place><placename>Rockwell</placename><placetype>Gardens</placetype></place>.
“These residential projects proved to be extremely unprofitable and litigious, which significantly impacted the working capital position of the group,” says the report.
“One of these projects (which completed in 2002) resulted in losses of approximately $11 million due to cost escalation as well as another $4 million in relation to legal costs and defect rectifications,” says the report.
 
 
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lschlesinger-FZcF9M3vE6

Ganellen yet to take over any Kell & Rigby building contracts

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The regional centre of Manjimup, about 300 kilometres south of Perth, the Southern Hemisphere’s biggest producer of perigold black truffles, has also gained the title of the local government area with the most acute housing shortage.
The list of the 30 municipalities contains just three locations on the metropolitan fringe – the Perth suburbs of Melville, Mundaring and Joondalup – weakening the argument that land release problems in the outer suburbs of the major cities is a key reason for Australia’s contested housing shortage.
<img src="/images/stories/manjimup1.jpg">
Over the weekend, <a href="https://www.propertyobserver.com.au/residential/no-australian-wide-housing-shortage-csrs-ross-sindel/2012052154769">CSR chief executive Rob Sindel</a> rejected the notion that Australia is suffering from a nationwide housing shortage – he says there are shortages in certain places such as NSW, south-east Queensland and WA.
The top 30 list compiled by the HIA is dominated by WA, which makes up half (15) of the local government areas with the most chronic undersupply of homes, followed by Queensland (7), NT (3), Victoria (3) with one each in NSW and South Australia.
Manjimup needs almost an additional four dwellings (3.94) for every 100 people in the town, which has a population of just over 10,000 – or 399 dwellings, according to the HIA.
The agricultural rich lands of Manjimup (it also home to the pink lady apple) are just ahead of the more arid municipality of Palmerston (3.93 dwellings required for every 100 people), the planned satellite city next to Darwin followed by the WA town of Geraldton, 430 kilometres north of Perth, a beneficiary of the mining boom where a major iron ore terminal is located. Geraldton has a dwelling shortage of 791 for its 21,000 population.
The median house price in Manjimup is $265,000, according to Australian Property Monitors.
A kilogram of Manjimup truffles is worth around $2,000 – last season the biggest truffle unearthed weighed 348 grams.
Manjimup truffles are sought as far afield as Manhattan restaurants and in eateries in France and Germany, with truffle season running for three months from June until September.
According to realestate.com.au, there are 248 Manjimup properties for sale, including <a href="https://www.realestate.com.au/property-mixed+farming-wa-manjimup-7324305">this 55-hectare farm featuring a three bedroom residence</a>. Listed for sale by Rodney Musulin of Primaries Real Estate for $970,000, it is “ideal for most horticulture pursuits, including highly prized truffles and avocados”.
<img src="/images/stories/truff.jpg" width="470">
The list includes two suburbs close to the Perth CBD – Subiaco, which ranks sixth on the list with a shortage intensity of 3.383 and 611 homes, and eight-placed South Perth, with a shortage intensity of 3.048 and 1,386 homes.
In absolute terms, Joondalup, about 16 kilometres north of Perth has the highest shortage of houses at 3,955 a shortage intensity of 2.38 houses for every 100 people.
Top 30 LGA government areas where a housing shortage exists
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="151">
LGA
</td>
<td valign="top" width="83">
State
</td>
<td valign="top" width="93">
Dwelling shortage
</td>
<td valign="top" width="99">
Population
</td>
<td valign="top" width="97">
Median house price
</td>
<td valign="top" width="93">
Shortage intensity
</td>
</tr>
<tr>
<td valign="top" width="151">
Manjimup
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
399
</td>
<td valign="top" width="99">
10,126
</td>
<td valign="top" width="97">
$265,000
</td>
<td valign="top" width="93">
3.94
</td>
</tr>
<tr>
<td valign="top" width="151">
Palmerston
</td>
<td valign="top" width="83">
NT
</td>
<td valign="top" width="93">
1,268
</td>
<td valign="top" width="99">
32,285
</td>
<td valign="top" width="97">
$465,000
</td>
<td valign="top" width="93">
3.928
</td>
</tr>
<tr>
<td valign="top" width="151">
Geraldton
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
791
</td>
<td valign="top" width="99">
21,361
</td>
<td valign="top" width="97">
$280,000
</td>
<td valign="top" width="93">
3.703
</td>
</tr>
<tr>
<td valign="top" width="151">
Litchfield
</td>
<td valign="top" width="83">
NT
</td>
<td valign="top" width="93">
753
</td>
<td valign="top" width="99">
20,389
</td>
<td valign="top" width="97">
$571,000
</td>
<td valign="top" width="93">
3.693
</td>
</tr>
<tr>
<td valign="top" width="151">
Darwin
</td>
<td valign="top" width="83">
NT
</td>
<td valign="top" width="93">
2,684
</td>
<td valign="top" width="99">
79,338
</td>
<td valign="top" width="97">
$550,000
</td>
<td valign="top" width="93">
3.383
</td>
</tr>
<tr>
<td valign="top" width="151">
Subiaco
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
611
</td>
<td valign="top" width="99">
19,674
</td>
<td valign="top" width="97">
$970,000
</td>
<td valign="top" width="93">
3.106
</td>
</tr>
<tr>
<td valign="top" width="151">
Bunbury
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
1,087
</td>
<td valign="top" width="99">
35,614
</td>
<td valign="top" width="97">
$340,000
</td>
<td valign="top" width="93">
3.052
</td>
</tr>
<tr>
<td valign="top" width="151">
South Perth
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
1,386
</td>
<td valign="top" width="99">
45,469
</td>
<td valign="top" width="97">
$727,000
</td>
<td valign="top" width="93">
3.048
</td>
</tr>
<tr>
<td valign="top" width="151">
Claremont
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
303
</td>
<td valign="top" width="99">
10,065
</td>
<td valign="top" width="97">
$1.2 m
</td>
<td valign="top" width="93">
3.010
</td>
</tr>
<tr>
<td valign="top" width="151">
Kalgoorlie/Boulder
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
968
</td>
<td valign="top" width="99">
33,319
</td>
<td valign="top" width="97">
$319,000
</td>
<td valign="top" width="93">
2.905
</td>
</tr>
<tr>
<td valign="top" width="151">
North Burnett
</td>
<td valign="top" width="83">
Qld
</td>
<td valign="top" width="93">
311
</td>
<td valign="top" width="99">
10,839
</td>
<td valign="top" width="97">
$150,000
</td>
<td valign="top" width="93">
2.869
</td>
</tr>
<tr>
<td valign="top" width="151">
Banana
</td>
<td valign="top" width="83">
Qld
</td>
<td valign="top" width="93">
427
</td>
<td valign="top" width="99">
15,542
</td>
<td valign="top" width="97">
$270,000
</td>
<td valign="top" width="93">
2.747
</td>
</tr>
<tr>
<td valign="top" width="151">
Melville
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
2,835
</td>
<td valign="top" width="99">
103,687
</td>
<td valign="top" width="97">
$670,000
</td>
<td valign="top" width="93">
2.734
</td>
</tr>
<tr>
<td valign="top" width="151">
Fremantle
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
785
</td>
<td valign="top" width="99">
29,318
</td>
<td valign="top" width="97">
$640,000
</td>
<td valign="top" width="93">
2.678
</td>
</tr>
<tr>
<td valign="top" width="151">
Broome
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
448
</td>
<td valign="top" width="99">
17,081
</td>
<td valign="top" width="97">
$675,000
</td>
<td valign="top" width="93">
2.623
</td>
</tr>
<tr>
<td valign="top" width="151">
Mundaring
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
1,021
</td>
<td valign="top" width="99">
39,753
</td>
<td valign="top" width="97">
$450,000
</td>
<td valign="top" width="93">
2.568
</td>
</tr>
<tr>
<td valign="top" width="151">
Northern Grampians
</td>
<td valign="top" width="83">
Vic
</td>
<td valign="top" width="93">
309
</td>
<td valign="top" width="99">
12,158
</td>
<td valign="top" width="97">
$150,000
</td>
<td valign="top" width="93">
2.542
</td>
</tr>
<tr>
<td valign="top" width="151">
Gannawarra
</td>
<td valign="top" width="83">
Vic
</td>
<td valign="top" width="93">
292
</td>
<td valign="top" width="99">
11,522
</td>
<td valign="top" width="97">
$153,000
</td>
<td valign="top" width="93">
2.538
</td>
</tr>
<tr>
<td valign="top" width="151">
Mount Isa
</td>
<td valign="top" width="83">
Qld
</td>
<td valign="top" width="93">
563
</td>
<td valign="top" width="99">
22,186
</td>
<td valign="top" width="97">
$349,000
</td>
<td valign="top" width="93">
2.534
</td>
</tr>
<tr>
<td valign="top" width="151">
Western Downs
</td>
<td valign="top" width="83">
Qld
</td>
<td valign="top" width="93">
818
</td>
<td valign="top" width="99">
32,727
</td>
<td valign="top" width="97">
$295,000
</td>
<td valign="top" width="93">
2.499
</td>
</tr>
<tr>
<td valign="top" width="151">
Hinchinbrook
</td>
<td valign="top" width="83">
Qld
</td>
<td valign="top" width="93">
298
</td>
<td valign="top" width="99">
12,240
</td>
<td valign="top" width="97">
$255,000
</td>
<td valign="top" width="93">
2.435
</td>
</tr>
<tr>
<td valign="top" width="151">
Albany
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
904
</td>
<td valign="top" width="99">
37,207
</td>
<td valign="top" width="97">
$375,000
</td>
<td valign="top" width="93">
2.430
</td>
</tr>
<tr>
<td valign="top" width="151">
Cambridge
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
667
</td>
<td valign="top" width="99">
27,552
</td>
<td valign="top" width="97">
$1.01m
</td>
<td valign="top" width="93">
2.421
</td>
</tr>
<tr>
<td valign="top" width="151">
Central Goldfields
</td>
<td valign="top" width="83">
Vic
</td>
<td valign="top" width="93">
308
</td>
<td valign="top" width="99">
12,854
</td>
<td valign="top" width="97">
$185,000
</td>
<td valign="top" width="93">
2.396
</td>
</tr>
<tr>
<td valign="top" width="151">
Berri &amp; Barmera
</td>
<td valign="top" width="83">
SA
</td>
<td valign="top" width="93">
268
</td>
<td valign="top" width="99">
11,259
</td>
<td valign="top" width="97">
$187,500
</td>
<td valign="top" width="93">
2.380
</td>
</tr>
<tr>
<td valign="top" width="151">
Joondalup
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
3,995
</td>
<td valign="top" width="99">
166,370
</td>
<td valign="top" width="97">
$525,000
</td>
<td valign="top" width="93">
2.377
</td>
</tr>
<tr>
<td valign="top" width="151">
Eurobodalla
</td>
<td valign="top" width="83">
NSW
</td>
<td valign="top" width="93">
915
</td>
<td valign="top" width="99">
38,607
</td>
<td valign="top" width="97">
$350,000
</td>
<td valign="top" width="93">
2.370
</td>
</tr>
<tr>
<td valign="top" width="151">
Scenic Rim
</td>
<td valign="top" width="83">
Qld
</td>
<td valign="top" width="93">
955
</td>
<td valign="top" width="99">
40,304
</td>
<td valign="top" width="97">
$390,500
</td>
<td valign="top" width="93">
2.369
</td>
</tr>
<tr>
<td valign="top" width="151">
Goondiwindi
</td>
<td valign="top" width="83">
Qld
</td>
<td valign="top" width="93">
274
</td>
<td valign="top" width="99">
11,646
</td>
<td valign="top" width="97">
$261,250
</td>
<td valign="top" width="93">
2.353
</td>
</tr>
<tr>
<td valign="top" width="151">
Vincent
</td>
<td valign="top" width="83">
WA
</td>
<td valign="top" width="93">
758
</td>
<td valign="top" width="99">
32,228
</td>
<td valign="top" width="97">
$600,000
</td>
<td valign="top" width="93">
2.352
</td>
</tr>
</tbody></table>
Source: HIA, median house prices provided by APM.
 
 
 
 
 
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Australia’s truffle capital, Manjimup, WA, has mushrooming housing shortage: HIA

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The Reserve Bank will keep an eye on China’s economic progress following new data showing the Chinese economy has slowed down, says governor Glenn Stevens.
Concerns about China's growth were expressed by Stevens as part of a questions and answer session following his speech to the Australian Payments Clearing Association (APCA) 20th Anniversary Symposium in Sydney today.
The new data, the HSBC Flash Purchasing Managers Index, showed that China’s purchasing managers index fell from 49.3 to 48.6 in May.
The index is considered an earliest indicator of the strength of China's industrial sector.
"One caution I'd offer is that we typically read a [purchasing managers index] level below 50 as meaning they're contracting, but what it means [for China is] they're growing slower than average if you calibrate that carefully," Stevens said.
Around half of the planned investment driving the current mining boom is based on expectations about the growth of China.
“Very few long-term economic issues therefore matter to Australia as much as how fast China will grow, for how long, and in what pattern,” wrote John Edwards, Lowy Institute visiting fellow, on <a href="https://www.google.com.au/search?q=australian+mining+boom+china+&amp;rls=com.microsoft:en-GB:%7Breferrer:source?%7D&amp;ie=UTF-8&amp;oe=UTF-8&amp;sourceid=ie7&amp;rlz=1I7GGHP_en&amp;redir_esc=&amp;ei=idPCT8KrKsaViAeRvtCQCg">Business Spectator in March</a>.
His comments followed the publication of a World Bank report that said that under a “favourable scenario” GDP growth in China would slow from the current rate of over 9% to 5% by 2026.
During his speech to the symposium today, Stevens also highlighted the growing role of the RBA as a regulator of financial markets.
He said the global push to strengthen financial regulation in the wake of the GFC had increased the role of the RBA in overseeing financial markets infrastructures (FMIs) such as securities settlement systems.
“Oversight of FMIs therefore demands a significant proportion of the Board's time. It is also this work that is expanding most rapidly.
“The logic of this reform is that it will reduce and simplify bilateral exposures between counterparties.  But it will also increase the systemic importance of the financial infrastructure, because we will in effect be creating a small number of ‘single points of failure’.
“Hence the resilience of that infrastructure will be critical, and the obligation of the official sector to provide proper oversight to ensure that resilience will correspondingly increase,” Stevens said.
 
 
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RBA watchful of China industrial slowdown: Glenn Stevens

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There is less than a month to go until five state home owners’ grants and one state stamp duty concession come to an end.
<img src="/images/stories/june302012.gif">
Victoria
On June 30 Victoria will end two bonus schemes aimed at first-home buyers – the $13,000 first-home bonus, which has run for three years, and the $6,500 regional bonus, which has run for two years.
These schemes will not be replaced.
Instead the government will increase existing stamp duty concessions for first-home buyers, as announced in the Victorian state budget.
From January 1, 2013 the <a href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/C88211C9E07486F0CA2578B70001025018E490D796850F8ECA2575C1008187C7">existing 20% stamp duty discount first-home buyers spending less than $600,000 on a house purchase will be increased to 30%.</a>
The stamp duty discount will rise to 40% on January 1 2014 and to 50% on September 1 2014.
To qualify for the stamp duty discount, first-home buyers must also qualify for the federal $7,000 first-home owners’ grant.
ACT
In the ACT, the <a href="https://www.revenue.act.gov.au/home_buyer_assistance/home_buyer_duty_concession/1_January_2012_-_30_June_2012">home buyer concession scheme (HBCS)</a> will end on June 30. The scheme provides stamp duty concessions on homes worth up to $470,000 and vacant land up to $260,000 and to qualify applicants must satisfy a combined income test for one year prior to the date of the grant starting from $120,000 for applicants with no children and up to $136,650 for applicants with five or more children.
No new schemes were introduced in the May 2011-12 ACT budget.
 
NSW 
The <a href="https://www.homebuyer.nsw.gov.au/newhomes.php">NSW government's home builders bonus</a>, which provides full exemption on stamp duty for new homes where the value does not exceed $600,000 and also applies to vacant land up to $400,000, will end on June 30. The scheme is available to everyone, including investors, who purchase a new house or apartment. For homes already under construction, a partial stamp duty reduction of 25% is available up until June 30.
The NSW state budget was handed down on June 12 <a href="https://www.propertyobserver.com.au/tax/nsw-doubles-its-first-home-grant-for-new-homes/2012061255075">wit</a><a href="https://www.propertyobserver.com.au/tax/nsw-doubles-its-first-home-grant-for-new-homes/2012061255075">h changes announced affecting investors and first-home-buyers from July 1 and October 1</a>. The changes create a<a href="https://www.propertyobserver.com.au/landlords/nsw-property-investors-condundrum-take-the-%2422490-housing-bonus-now-or-just-%245000-after-july-1/2012061255081"> conundrum for property investors.</a>
South Australia
The <a href="https://www.revenuesa.sa.gov.au/fhog/bonus8000">first-home bonus grant of up to $8,000</a> available to first-home buyers who qualify for the federal $7,000 first-home owner grant will be abolished from July 1, 2013. The first-home owners’ grant is not being phased out.
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Time running out for first-home bonuses and stamp duty concessions

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Four WA olive farms have been put up for sales by receivers KordaMentha.
The olive farms in Preston Valley, Avon Valley, Twin Brooks and Dandaragan belong to one of Australia’s biggest olive companies Kailis Organic Olive Groves, which has its headquarters in Osborne Park in Perth.
The company collapsed in November 2011 after being unable to repay debts of $18 million, with $15 million owed to Westpac.
Combined the four properties feature 1,800 hectares of olive plantations with an average age of 6.5 years and include modern processing facilities and over 10 gigs of water licences with a value of around $20 million, excluding the operating business.
The properties are available to be purchased separately.
The biggest property is <a href="https://www.eldersrealestate.com.au/rural/buy/property-wa-gingin-498076" target="_blank">Twin Brooks in Gingin</a> measuring 1,606 hectares with 449 hectares planted to olives.
<a href="https://www.eldersrealestate.com.au/rural/buy/property-wa-beverley-498073" target="_blank">Avon Valley in Beverley</a> measures 1,368 hectares over 20 titles, with 785 hectares of olive groves.
<a href="https://www.eldersrealestate.com.au/rural/buy/property-wa-mumballup-498078" target="_blank">Preston Valley in Donnybrook</a> measures 447 hectares and has 236 hectares of olive groves.
<a href="https://www.eldersrealestate.com.au/rural/buy/property-wa-dandaragan-498074" target="_blank">Dandaragan</a> measures 498 hectares and has 388 hectares of olive groves.
All four properties are being sold by Elders Real Estate via expressions of interest campaigns.
Mark Mentha, partner at KordaMentha, says there is strong interest in the farms from local syndicates of high-net-worth individual, super funds and Asian investors.
Olive oil producers in Australia have struggled to compete against cheaper imports from countries like Spain and Italy following the strengthening of the Australian dollar.
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Four olive farms put up for sale by receivers with $20 million price tag

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St Hilliers Construction founder Tim Casey says the firm is owed more than $6 million by the NSW government and has slammed its decision to take over 13 NSW social housing projects.
Speaking at a creditors' meeting in Sydney on Friday, Casey said he had written to the State Treasurer, Premier and Finance Minister over the $8.1 million in work St Hilliers has undertaken on the projects.
Casey claims the construction business has only been paid $1.4 million.
Of the $6.7 million still owed, $3.5 million is owed to sub-contractors of St Hilliers Construction.
Casey says St Hilliers plans to sell the company’s Cumberland Street headquarters in Sydney, worth up to $22 million, to pump money into the ailing construction business.
“It’s a high-handed decision of the state government to [terminate these state housing contracts],” Casey said at the creditors' meeting.
One contractor on the NSW housing projects, Ivan Stefanac, a gyprocker who is owed $41,000, told The Australian he does not expect to receive any money now that the government has taken over the projects.
At the meeting Casey said all but two of the projects would be reopened and said he was confident the construction business would find a way to start trading again.
There are about 1,000 creditors of St Hilliers Construction.
At the meeting, attended by about 100 creditors, administrators Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group did not say how much was owed to creditors.
The <a href="https://www.sthilliers.com.au/Home">St Hilliers website </a>is functioning normally again after previously only linking through to a press release about the voluntary administration decision.
Separately, the Reed Group, which is facing the threat of supplier seeking to wind up the business, has had its claim that it is owed up to $70 million by the NSW state government rejected following a parliamentary hearing.
An independent expert panel chaired by Andrew Rogers QC found that the monies Reed claims it is owed by the state government were not “anywhere near” the true figure.
Reed claims the money is owed for work done on building roads and building schools as part of the federal government’s $16.2 billion Building the Education Revolution scheme.
 
 
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St Hilliers founder says government owes it millions, but Reed Group government claim rejected

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Rental yields have been increasing across most of Australia over the past 12 months and are better option than holding cash or government bonds, according to Janusz Hooker, executive chairman of real estate group LJ Hooker. 
Rising yields, he says, are being driven by softening property prices and increasing rents due to relatively low vacancy rates nationwide. 
“Given the forecast supply of rental stock and forecast demand for rental stock, rents look set to continue their five-year historical average growth of 5.8% per annum for apartments and 5.4% per annum for homes,” he says. 
“At present average gross yields for apartments in Australia are 5.2% (around 4.2% net of expenses) and for homes 4.5% (around 3.5% net of expenses). 
“If you look at real estate as a long-term asset class to hold, these yields are becoming increasingly attractive compared to cash and government bonds – not to mention the appreciation of the property asset,” Hooker says. 
“Typically more affordable housing has a higher yield. 
“Also property yields are often higher outside of the major metropolitan areas.” 
Hooker says the highest yields at present in Australia are in the mining boom towns in the Pilbara and central Queensland, where double-digit yields are achievable on rental properties.
 
 
 
 
 
 
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Rental yields on the rise and a better option than cash and bonds: Janusz Hooker

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Offshore investor demand for Australian commercial property, already strong, is likely to increase on the back of the weakening Australian dollar, say commercial property experts.
Savills has already noted anecdotal evidence of an up-tick in offshore demand as the dollar has fallen, “particularly from China, where the yuan is pegged to the US dollar”.
“We predict that further significant falls in the Australian dollar will lead to a surge in offshore investment in most forms of commercial properties, resulting in an escalation of values,” says Savills head of city sales and investments Clinton Baxter.
The Australian dollar reached parity with the US dollar in November 2010 and rose to a 29 year high of $1.108 on July 27 2011 before retreating.


Since the end of April 2012 the Australian dollar has decline from around $1.04 against the US dollar to below 98 cents with a more gradual decline commencing from the $1.09 level in February.
Australian dollar versus US dollar since July 2010
<img src="/images/stories/dollarchart1.gif">
Source: OANDA.com
However, Baxter along with counterparts at Knight Frank and CBRE, notes that offshore investor demand has remained high even when the Australian dollar was at record levels.
“Despite the Australian dollar reaching record highs over the past two years, the Australian commercial property market has experienced an unprecedented flow of investment capital from off-shore, particularly from China  and south-east Asia,” Baxter says.
“In the Melbourne CBD alone, half of all major transactions over the past 12 months have been to offshore investors.
“Counter-intuitively, motivation of offshore investors rose despite the protracted rise of the Australian dollar, with investors seeking a safe haven for their wealth, expansion into a new market, potential immigration advantage, and to invest in a country insulated from the woes of Europe and the US.”
Neil Brookes, director of international investments at CBRE, says the significant strengthening of the US dollar against the Australian dollar since February has positively affected buyers from the US and China.
“However the strengthening of the euro has not been as pronounced and therefore has not lessened the hedging costs for European investors,” he says.
Brookes says the volatility of the currency is a factor for some groups investing in Australia.
But he stresses that the majority of institutional buyers are looking at Australia as a long-term play and therefore aren’t sensitive to the currency variations.
Australian dollar versus euro since July 2010
 
<img src="/images/stories/eurochart1.gif">
Source: OANDA.com
Paul Henley, managing director of sales at Knight Frank, says there is already strong demand from offshore Asian private investors and institutions looking to invest and/or seek out development opportunities.
“The fall in the Australian dollar is only going to help,” he says.
Henley says investor interest is primarily coming from Asia, with the focus predominantly on the non-core office markets such as the St Kilda Road market in Melbourne and the North Sydney market.
“Investors are also seeking out development opportunities in Melbourne,” he says.
Henley says overseas buyers are seeking investments that represent a “strong return today” and will add value over time.
“They’re particurlarly targeting development opportunities in Melbourne.”
Henley says investors are looking to diversify their asset base and view Australia as a relatively stable economic climate.
“The Australian commercial market is not as foreign to these people as it was once – they are now very familiar with these markets.”
Before the strengthening of the dollar, Henley says Asian investors did not see the high exchange rate as an impediment.
“When the Australian dollar got to $1.05 against the US dollar we thought investor demand would slow down, but it didn’t slow down their appetite,” he says.
Earlier this month the <a href="https://www.propertyobserver.com.au/industry-news/new-asian-real-estate-website-adds-australian-commercial-properties-to-listings/2012051654720" target="_blank">ASX-listed iProperty Group launched a new Asian commercial property website, CommercialAsia.com</a>, which includes Australian commercial properties among its listings.
According to Jones Lang LaSalle figures, Australian investment volumes for office, retail and industrial in the first quarter of 2012 reached $2.08 billion, compared with $1.4 billion in the first quarter of 2011. Australia was one of the top investment destinations for overseas buyers over this period – behind Japan and Hong Kong. 
About a third of the investment in Australia has come from offshore, mainly from non-Asia Pacific investors. 
In its recent Asia Pacific Capital Markets MarketView report, CBRE said A-grade offices in Sydney, Melbourne and Brisbane continued to attract a steady flow of enquiries. There was also a jump in demand for retail assets accounted for $968 million worth of deals during the period – 40% of total sales over the period.
<img src="/images/stories/cbremay28.gif">
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Falling dollar encouraging even more offshore investment in Australian commercial property

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The Commonwealth Bank has today cut interest rates on some of its fixed-rate home loans by up to 0.4 percentage points. 
The rate cut matches the number of basis points it reduced its variable rate mortgages by on May 11, taking its standard variable down to 7.01%. 
However the bank has left its three-year fixed-rate mortgage offering – considered the benchmark fixed-rate product – unchanged at 5.99%. 
Click here for Property Observer’s three-year fixed-rate guide. 
The bank’s two-year fixed-rate product has been reduced by 40 basis points to 5.79%; the four-year fixed-rate product by 0.35 percentage points  to 6.29% and its five-year fixed-rate product by 0.35 percentage points to 6.39%. 
It is the second time this month that the bank has cut its fixed-rate home loan offering. 
On May 8, the Commonwealth Bank cut its one and three-year fixed-rate home loans by up to 0.34 percentage points. 
Earlier this month, Westpac has cut its headline three year-fixed mortgage by 20 basis points to 6.19%.

HSBC has cut its three year fixed-rate product to 6.09% or 5.99% for those investors who take up the interest-in-advance offering

ME Bank has also cut its three-year fixed rate mortgage product to 5.99%.
 
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Commonwealth Bank cuts fixed rates by 0.4 percentage points, but not three-year fixed product

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A 10-storey timber building, the tallest of its kind in the world, has today been launched in Lend Lease’s Victoria Harbour precinct.
Known as Forté, the $11 million will be built at 807 Bourke Street in Victoria Harbour and will be Australia’s first first timber high-rise building.
The building will rise to 32 metres and will be built with prefabricated wooden panels made from cross-laminated timber (CLT) and will feature 23 apartments.
<img src="/images/stories/forte1.jpg">
The multiple timber layers are glued and then pressed given them the structural strength similar to concrete or steel, allowing the building to bear the load of the 10 storeys.
<img src="/images/stories/forte2.jpg">
There will be seven one-bedroom apartments (59 square metres) priced from the mid-$400,000s, 14 two-bedroom apartments (80 square metres) priced from the late $600,000s and two penthouse apartments with two-bedrooms (102 square metres) priced from $800,000. The ground floor will be for retail space.
<img src="/images/stories/forte3.jpg">
In addition there will also be four townhouses.
More pictures on page 2.
 
<hr class="system-pagebreak">
 
Work on the site commenced in February with a targeted completion date of October – quicker than it takes to build some single-family houses.
<img src="/images/stories/forte5.jpg">
The project was officially launched by Lend Lease’s CEO for the Australian Business Mark Menhinnitt along with Victorian Premier Ted Baillieu, who says Forté will be a driver for "a new environmental footprint in Australia".
<img src="/images/stories/forte4.jpg">
"It means less energy and fewer emissions and will put Victoria at the forefront of sustainable design," says Baillieu.
It will also seek to be the first five-star green star as built certified residential building in Australia. Forté will reduce carbon emissions by more than 1,400 tonnes when compared with concrete and steel – the equivalent of removing 345 cars from Melbourne roads.
The Forté apartments will require 25% less energy to heat and cool than a typical apartment.
<img src="/images/stories/forte6.jpg">
Menhinnitt says the project will “unlock a new era for sustainable development by offering a viable alternative to traditional construction options, which are carbon intensive”.
He says Lend Lease will look to establish a "viable supply chain" for the CLT product and will also look for other applications for the product. Lend Lease is aiming to develop 30% to 50% of its apartment pipeline using CLT.
It will rise 2.42 metres <a target="_blank" href="/news">above the current highest timber building, a nine-storey, 29-apartment residential building in Hackney, London called the Stadhaus</a> (below), which was completed in January 2009 at a cost of £3.5 million ($5.6 million).
<img src="/images/stories/stadhaus.jpg">
The Stadhaus was designed by architects Waugh Thistleton in collaboration with structural engineers Techniker, and timber panel manufacturer KLH.
It was the first high-density housing building to be built from pre-fabricated CLT panels, the same technology that will be used to build Forté in Docklands.
Forté won’t be the tallest timber high rise for long, with Grocon planning on building a timber high rise on the old Carlton &amp; United Brewery site called Delta and due to be completed by 2014.
Using the prefabricated panels means a timber building can be built very quickly, explained Grocon building manager David Waldren following the launch of the project last year.
 
 
{module Would you buy an apartment in a timber building?}
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Lend Lease’s Docklands project Forté will be world’s tallest residential timber building

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.

&nbsp;

[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.”

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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.”

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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.

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“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.

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Larry Schlesinger

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