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The key regional NSW cities of Newcastle and Wollongong are expected to come close to matching Sydney's median house price growth over the next three years.
BIS Shrapnel forecasts Sydney house prices to rise 19% over the next three years to June 2016, leading an uneven recovery in the housing market.
The forecasts for Newcastle and Wollongong are for gains of 18% and 17% respectively between now and June 2016, and more concentrated in the latter two years.
In contrast, Melbourne median house prices are forecast to rise just 5% over this time frame.
"Residential property prices in Newcastle and Wollongong usually benefit when Sydney experiences strong price growth and migration into these regional centres increases, says BIS Shrapnel senior manager Angie Zigomanis.
"With affordability in Sydney relatively attractive in a long term sense, an acceleration in prices in these regions is expected to be a little behind that of Sydney, picking up over 2014/15 and 2015/16 as a combination of price rises in Sydney and an expected tightening in interest rate policy begin to reduce affordability in the capital," he says.
 
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lschlesinger-FZcF9M3vE6

Newcastle and Wollongong forecast price growth almost matching Sydney over next three years: BIS

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The Sydney median house price is expected to rise by an average of more than 6% per annum over the next three years leading an uneven recovery in the residential property market, according to new forecasts from BIS Shrapnel.
Sydney median house prices are expected to rise 19% between now and June 2016 – from an estimate of $670,000 as of June 2013 to $795,000 in three years' time.
Gains will be modest to begin with, but then are expected to pick-up from around June 2014 onwards driven by a “sizeable deficiency” in new dwellings to meet demand as well as improved affordability as interest rates remain low.
The other strong gains will come from the resource states with Brisbane (up 17% to $513,000), Perth (up 15% to $600,000) and Darwin (up 10% to $655,000).
However in these three markets, the strongest growth is expected over the next 12 months and is then expected to taper off “as the pipeline of current investment in resource projects is increasingly worked through, with unemployment beginning to rise and migration and population growth slowing”.
Melbourne prices are expected to rise just 5% over the next three years with small gains for Adelaide, Hobart and Canberra with these markets impacted by weaker local economies and the supply of new housing almost in balance with demand. <img height="329" width="470" src="/images/stories/2013/larry_uploads/bis_shrapnel_graph.jpg" alt="bis_shrapnel_graph">
Over the next two years, the strongest conditions are forecast for New South Wales, Western Australia, Queensland and the Northern Territory.
While BIS Shrapnel estimates a sizeable deficiency of 83,000 dwellings nationally, or around half a year’s demand, at June 2013, all of the deficiency is confined to these states.
“The deficiency in their state capitals has driven up rents which, together with recent weak price growth, have resulted in improved yields,” says BIS Shrapnel senior manager and study author, Angie Zigomanis.
“In this environment, the lower interest rates are providing the impetus for greater purchaser demand, as is becoming evident in Sydney, Perth and Darwin house prices, while we expect Brisbane will eventually follow.”
In contrast, conditions in Victoria, South Australia, Tasmania and the Australian Capital Territory are forecast to continue to be tough. These states have all experienced strong peaks in construction in recent years that well exceeded demand for new dwellings. The result has been an erosion of their dwelling deficiency and/or an emerging excess of dwelling stock.
“Economically, these states are also underperforming due to a fall off in construction and a negative impact to industry from the high Australian dollar,” says Zigomanis.
“While some pockets may do well in the current low interest rate environment, without any supply pressures, median house prices overall in Melbourne, Adelaide, Hobart and Canberra are forecast to show little change and decline in real terms over the next three years.”
Zigomanis says the general improvement in residential markets since the latter half of 2012 has been initiated by the low interest rate environment. Since October 2011, the official cash rate has fallen by 200 basis points, translating to a 160 basis point fall in variable rates.
“As a result, we are seeing some improvement in some residential market indicators.
“Lending to both owner-occupiers and investors has been trending upwards in the nine months to March 2013.
“Lending to first home buyers has also been trending upwards outside of declines in New South Wales and Queensland, where changes to first home buyer incentives have created a short term dip in demand.”
The gains in residential property are expected to be modest in the coming 12 months as the economy transitions from one driven by resource investment to one driven by consumption and business and residential investment. will not be seamless.
Low interest rates, which could fall further according to BIS Shrapnel, will eventually drive a stronger pick up in retail spending, new dwelling construction and business investment.
This will start to flow through from about mid- 2014 as the non-resource sectors of the economy improve and take over as the main drivers of economic growth.
BIS Shrapnel says the outlook will become more uneven across the country from 2014/15.
By June 2016 all markets are forecast to be impacted to varying extents by rising interest rates as the Reserve Bank moves to push interest rates from their current extremely stimulatory level towards a neutral level over 2015 and 2016.
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Surging Sydney to lead “uneven” recovery in residential property market over next three years: BIS Shrapnel

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Listed real estate manager and developer Folkestone has raised $15.5 million for a new unlisted property fund that owns a six-level office building in Wollongong.
Investors included those with self-managed super funds attracted to a forecast 10.5% distribution in the first year and with the building anchor tenanted by commonwealth and state government agencies.
Unlisted property funds and single-asset property syndicates have made a resurgence in recent times after investors lost faith following the GFC when many mortgage and property funds were frozen.
Funds offering returns in excess of 8% and with strong tenants and long leases have proved popular with <a href="/news">Centuria</a> and Cromwell among those to find willing investors and close offerings oversubscribed.
The Folkestone Real Estate Income Fund at Wollongong closed around 50% oversubscribed.
As a result, Folkestone increased the amount of equity raised by $1 million, from $14.5 million to $15.5 million, to assist in satisfying part of this excess demand.
The forecast 2014 financial year distribution remains unchanged at 10.5% due in part to the lower initial gearing (47% down to 43%) and the debt being secured for three years at 5.55%, 10 basis points lower than forecast in the product disclosure statement.
Investors have bought into a six level commercial office building with 90 car spaces at 43 Burelli Street and 34 Stewart Street, Wollongong.
It is in the heart of the Wollongong CBD, about 200 metres from the Crown Street Mall and GPT's Wollongong Central retail centre.
The property is anchor tenanted by Commonwealth and state government tenants – representing aroundy 79% of the building’s income.
Folkestone acquired the building on April 10 and the offer to invest in the fund closed on June 20.
The sale price was not disclosed. The building previously sold for $9.75 million in 1998.
“The success of the capital raising demonstrates that investors continue to seek investments with strong income returns and quality covenants,” said Folkestone managing director, Greg Paramor.
He said the forecast distribution of 10.5% offers investors, particularly self-managed superannuation funds, with an attractive risk-adjusted return.”
"Our distribution network continues to grow as illustrated by the strong support from both financial planners and private client investors. Given the continued appetite for quality, yield orientated investments, Folkestone plans to launch the third in its series of real estate income funds in the next few months" Paramor said.
Folkestone’s balance sheet underwrote $8 million of the equity raising to assist in the acquisition which has now been repaid from investor applications.
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SMSF investors flock to Folkestone Wollongong unlisted office fund offering 10.5% return

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Gold Coast real estate company Staymint has been fined $50,000 for 231 counts of dishonestly converting trust account money to its own use.
The offences occurred over more than a year while Staymint operated the Broadbeach holiday apartment complex Carmel by the Sea.
The fine was handed down in the Brisbane Magistrates Court last week after Staymint pleaded guilty to wrongfully converting $141,466 in trust money between 1 July 2011 and 1 August 2012.
The court heard Staymint staff booked tenants into rooms in Carmel by the Sea’s letting pool then, after the guest had checked out, changed the records to indicate the guest had stayed in a leaseback unit.
Lease back units are units for which the property manager guarantees the landlord a set return. If the unit returns less than the guaranteed amount, the property manager must make up the shortfall. If it returns more than the guaranteed amount, the property manager retains the additional income as profit.
Rather than transfer the amount earned from a guest staying at a unit to the unit owner, Staymint transferring the amount earned from this stay to its own accounts.
The Queensland Office of Fair Trading (OFT) investigated after a unit owner complained he had not received rent from tenants who had signed the guest book in his unit.
The OFT executed a search warrant on Staymint’s office, seizing a hard drive and trust account records that showed the company had wrongfully transferred $141,466 to its own account.
The court heard Staymint is in the process of repaying the 34 affected unit owners, with $75,000 paid to date.
No conviction was recorded against the company.
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Gold Coast estate agency fined $50,000 over 231 cases of trust account misuses

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A dozen financial advisory firms from North Asia, Hong Kong, South East Asia, Europe and the Middle East have joined forces to create an advisory committee to represent the interests of clients who invested around $400 million in funds tied to collapsed Gold Coast mortgage lender LM Investment Management (LMIM).
The committee has appointed Australian law firm Holman Webb and legal adviser Gordian Gaeta, to act on behalf of investors, reported London-based online journal, International Advisor.
LMIM collapsed in March this year.
Investments in mortgage funds were promoted by an international network of financial advisers.
Prior to its collapse, LMIM boasted that it operated in 70 countries and managed $3 billion of realisable assets, including the now-stalled $1 billion Maddison Estates residential development on the Gold Coast.
After the closure of many mortgage funds in Australia spooked local investors, LMIM heavily promoted its offerings offshore, particularly to investors in Asia, Europe and the Middle East.
The Adviser Committee for Investors (ACI) has been created by advisory firms, Magellan, based in Japan and Financial Partners, based in Hong Kong and the UAE.
A further 10 other firms have joined the committee, with each new member has been asked to contribute $3,000 towards legal costs.
A charter has been drafted and distributed to potential new financial advisory firm members in Europe, Asia and the Middle East.
Representatives from Magellan, Financial Partners and Mondial visited Australia earlier this year on a fact-finding mission and have since compiled a report to be distributed to members of the committee.
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Committee formed to represent overseas investor interest in collapsed Gold Coast lender LM Investment Management

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Interest rates on 90 two-year fixed-rate home loan offerings in the RateCity.com.au database fell in June.
The cheapest two-year fixed rate home loan on the mortgage comparison website is HSBC’s 4.59% rate while the lowest ongoing variable rate in RateCity's database is 4.74% by non-bank lender State Custodians.
Lenders to have cut their two-year fixed-rates recently include CUA, which cuts its offering to 4.89% (also the rate for its three-year fixed rate home loan) with the pace of fixed-rate cuts not slowing down in June, according to RateCity.com.au.
The gap between fixed and variable rates may encourage some conservatively minded borrowers to consider taking out a two year fixed-rate below 5% if they form a view that rates will be higher between now and 2015.
“With fixed rates this low, it's a good time to consider fixing if you're concerned about rising interest rates. But don't be surprised if interest rates fall further before they start climbing again,” says RateCity.com.au chief executive Alex Parsons.
He believes there could be more RBA rate cuts to stimulate the housing market.
“It wouldn't be surprising to see a rate cut next week as the past rate cuts seem to have made little impact on stimulating the home loan market. Since November 2011, the Reserve Bank has cut the cash rate seven times by a total of 2.00 percentage points. While it's now at a record low of 2.75%, there's been very small growth in the home loan market.
Most economists though expect the cash rate to remain on hold in July when the RBA meets next week Tuesday, according to a poll by Bloomberg.
A rate cut in August is tipped by half of economists.
Two-year fixed rates are not a very popular product accounting for around 10% of the fixed-rate market, according to figures by another <a target="_blank" href="https://www.propertyobserver.com.au/news/monday-feb-25-feature-the-fix-is-on-for-bank-mortgage-rates-should-you-take-the-deal/2013022159504">comparison website, finder.com.au.</a>
Fixed rates currently accounts for between 20% and 30% of all home loans (fixed vs variable) so that gives two-year fixed-rates a market share of between 2% and 3% of the whole market.
Two-thirds of borrowers prefer three-year fixed rates, while one in five prefer a five-year fixed-rate term.
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Two-year fixed-rate loans continue to fall below variable offerings: RateCity

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Property investors should be taking advantage of low interest rates to invest now but with a long-term outlook, says Yellow Brick Road founder Mark Bouris.
Bouris expects modest dwelling prices rises over the next 12 months but says investors need to look to hold property for at least 10 years to benefit from the peaks and to ride out the troughs.
His forecast is for house prices to rise by around 3% for the 12 months to May 2014, matching the 2.9% gain over the previous 12 month period as recorded by RP Data-Rismark.
“Most of the people panicking about property are looking at the three years between 2010 and now, and they see a drop, says Bouris in a column for news.com.au.
“However, if you start at 2008, you see a rise of $44,512 in five years.
In May 2008 the median dwelling price was $446,488, it rose to $507,446 in 2010 and then tapered off to $491,000 in May 2013, according to RP Data-Rismark.
“My bottom line: Stay in property for at least 10 years and ensure you get the peaks as well as the troughs.
“To cover 2014, aim for 2024,” he says.
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Invest in property now but with 10-year outlook: Mark Bouris

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ASIC has cancelled the registration of Wickham Securities auditor Brian Kingston as it continues to investigate the collapse of the $30 million mortgage lender and the financial planning business run by founder Bradley Sherwin, which promoted its financial products.
Wickham Securities collapsed in December last year and is now in liquidation.
Self-funded retirees having invested $27 million in the mortgage lender through $1 unsecured deposit notes promising returns of 9.25%.
The money was then lent to what appears to be borrowers of last resort to fund commercial property acquisitions or refinance existing loans, at interest rates in excess of 20%.
Under an enforceable undertaking with ASIC, Brian Patrick Kingston of Bapaume, Queensland, has agreed to "never reapply for registration or perform any duties or functions of an auditor". ‘Mr Kingston clearly failed in his job,” said ASIC commissioner John Price. ‘ASIC will not tolerate inferior work and is determined to lift standards within the auditing profession."
<a target="_blank" href="https://www.propertyobserver.com.au/industry-news/administrators-find-%24108-million-black-hole-in-wickham-securities/2013013059033">Property Observer reported in January</a> that investigations into the collapse of Wickham Securities by administrators PPB Advisory uncovered what appeared to be a bogus $10.8 million cashflow statement, one of a number of apparent discrepancies and irregularities. 
The administrators found that an amount of $10,779,835.47 said to be in Bank of Queensland bank account as of 30 November 2012 “was not available in the company’s bank accounts”.
At the time, joint administrator Grant Sparks and David Leigh said they were still waiting to receive a copy of the company’s books and records from Kingston.
Documents published by PPB Advisory since then do not indicate that this information has been provided to them.
This week NAB launched a lawsuit seeking to repossess Sherwin’s renovated 1910-bult colonial Wooloowin home (pictured below) in Brisbane's inner north, according to a report in the Brisbane Courier Mail.
{yoogallery src=[images/stories/2013/06/june28sherwin]}
RP Data records show Sherwin bought the house, which is in his wife Deborah’s name, for $915,000 in 2008. It previously sold for $575,000 in 2004.
Overlooking Kalinga Park, the chamferboard-clad house has five bedrooms and three bathrooms.
In its latest statement, ASIC says that on September 27 2012, just under three months prior to the collapse of Wickham, Brian Kingston issued an unqualified audit opinion on the financial report of Wickham for the year ended 30 June 2012. ASIC formed the view that, in respect of the audit, Kingston failed to carry out or perform adequately and properly the duties of an auditor.
In particular, ASIC was concerned the audit was not conducted in accordance with the Australian Auditing Standards because among other things, “an adequate level of professional scepticism was not exercised in auditing the recoverability of loan assets and assessing going concern, and reliance was placed on representations from Wickham management and directors without having performed appropriate audit procedures to corroborate or confirm those representations”. ASIC is continuing to investigate the collapse of Wickham, and Sherwin Financial Planners Pty Ltd and related entities.
ASIC commenced action against Bradley Sherwin, his wife Deborah Sherwin and eight related companies seeking orders to freeze bank accounts and appoint receivers soon after Wickham Securities collapsed.
The eight related businesses, which include Sherwin Financial Planners Pty Ltd, were all placed in administration on January 24, with administrators from the firm of Taylor &amp; Woodings appointed.
Sherwin has strongly denied any wrongdoing and says he is assisting ASIC.</body></html>

Wickham Securities auditor accepts ASIC life ban as NAB seeks to repossess founder Bradley Sherwin’s Wooloowin house

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Australian household wealth is back to record levels and combined with an improving appetite for spending could be good news for a property market, which is already heavily dependent on opportunistic investors as first-home buyers stay on the sidelines.
The latest financial accounts prepared by the ABS show that net Australian household financial wealth per capita rose from $73,352 to $75,955 in the March quarter, to be up 22.1% over the past year.
Net financial wealth peaked in early 2007 just before the GFC, then fell sharply, but has now surged to a new high.
<img alt="aussie_net_wealth" src="/images/stories/2013/larry_uploads/aussie_net_wealth.jpg" width="470" height="308">
The financial accounts also show that just over 22% of total household assets are being held in cash and deposits.
CommSec economist Savanth Sebastian says that while this is well above the decade average of 20.4%, it have eased over the past few quarters.
“The latest data on household wealth certainly provides Aussie households with a bit of cheer and could not come at a better time, especially given the underlying level of conservatism," says Sebastian.
“The global financial crisis caused the biggest ever drop in wealth for Australian households, however wealth levels have continued to repair over past couple of years and are now back at record highs.
“The sustained improvement in wealth levels and low interest rate environment has resulted in household tentatively starting to spend.
“The improvement in household balance sheets certainly bodes well for future spending.
“And given that a low interest rate environment is likely to be part of the economic landscape over the coming year, it may prompt consumers to invest in other asset classes and spend a little bit more freely,” he says.
<a href="https://www.propertyobserver.com.au/landlords/opportunistic-and-optimistic-property-investors-pick-up-slack-from-dwindling-first-home-buyer-market/2013061162157" target="_blank">April ABS housing finance data</a> shows that the value of home loans taken out by investors rose by 1.1% to five-year highs in April totalling $81.4 billion, while the value of owner-occupier housing loans fell 0.9% to $14.6 billion.
The value of investment home loans to purchase established homes for rent or resale has been rising for nine straight months (since August 2012) and totalled just over $7 billion in April up from $6.82 billion in March.
A year ago the value of investment home loans to purchase established homes for rent or resale was $5.76 billion – an annual increase since then of 21.5%.
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Australian household wealth rises to record levels with an improving appetite to spend: CommSec

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The Adelaide housing market remained "subdued" over the April quarter of 2013 "reflecting the nature of the underperforming local economy where unemployment over April remained seemingly intractably high at 6.1%".
This compares with a national unemployment rate of 5.5%.
Adelaide house prices increased just 0.1% over the quarter to $432,951 and are up by just 0.1% over the past year, according to the latest Australian Property Monitors (APM) quarterly report.
The unit market has fared worse with prices down 0.7% over the April quarter to $281,033 and down 0.4% over the past 12 months.
Howerver, APM reports some positive signs with the number of owner-occupied loans approved in South Australia up by 3.5% over the first 3 months of this year, compared to the same period last year, according to ABS home loan data.
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Adelaide housing market remains subdued with "intractably high" unemployment: APM

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

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<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

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Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

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Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

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“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

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Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Larry Schlesinger

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