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2014 is still motoring along very strongly. The lull we reported of the last few weeks seems to have been nothing more than another stair landing in the continuously rising price-staircase which began in October 2012.
This weekend was another Super Saturday, with over 150 auctions in Melbourne’s inner east and Bayside. It was a very solid test, in that bidders were spread out over a large number of auctions – i.e. there was significant choice. The bidder depth held up, in fact it increased marginally with over two bidders per auction on average – this is strong.
If you look at the roughly 200 $1 million plus auctions that took place across all of Melbourne, an average of two bidders means that not only were there 200 buyers, there were also 200 bidders who missed out. Most of those “wounded” bidders are not discretionary buyers – they have to buy and next time they will be more aggressive on price, even if only a tad.
<blockquote>
For a number of our Chinese clients, one of the reasons we are engaged is that they are concerned what other Chinese buyers may do and they don’t want to miss out.
</blockquote>
However, after next week it gets very tight for new stock going into the school holidays and Easter. So the pool of choice will diminish. That means many of those 200 “wounded underbidders” may well be competing against you over Easter but on lower stock levels. That means we’re likely to see 200 underbidders competing not on 200 homes, but on, say, 100 good homes which would double the bidders. If that number is spread out over 50 good homes, that will be four times the bidder strength we saw this weekend.
So what to do as a buyer? Maybe it’s time to wait until the steam goes out of the market?
For those buyers still waiting on the edge for a downturn – good luck. I’m not sure that is a proven good strategy.
But surely it can’t last forever!
Why has our market been so good for so long and will it last?
The Chinese community – simple demand and supply
The reason our market has been so good for so long is very simple – the overseas Chinese community.
Here are the top 10 reported sales on Saturday.
The Top 10 reported on Saturday
<ul>
<li>14 Selwyn Av, ELWOOD – Above $3,600,000</li>
<li>
21 Monash Av, BALWYN – $3,520,000</li>
<li>17 Rolls Ct, GLEN WAVERLEY – $3,416,000</li>
<li>
65 Metung St, BALWYN Above $3,200,000</li>
<li>30 Wills St, KEW Above $3,000,000</li>
<li>4 Mt Ida Av, HAWTHORN EAST  $3,235,500</li>
<li>69 Alfred Cr, FITZROY NORTH  $3,140,000</li>
<li>
2 Barnsbury Rd, BALWYN Above $3,000,000</li>
<li>9 Fairfield Av, CAMBERWELL  $2,888,000</li>
<li>
65 Yarrbat Av, BALWYN $2,850,000</li>
</ul>
40% of those sales were in <a href="/news">Balwyn</a> for new homes or land blocks to build new homes. Where is <a href="/news">Brighton</a>, where is <a href="/news">Toorak</a>? <a href="/news">North Balwyn</a> and Balwyn reported 13 bought from a reported 15 auctions. Brighton had 9 bought from 16 and Toorak and <a href="/news">South Yarra</a> just 7 from 12.
So how long will it last?
This is my potted history of Chinese involvement in Melbourne’s property market.
1973: I went to Camberwell Grammar in the early 1970s (I’m not sure they want me to advertise that fact – it could be bad for new enrolments). Camberwell Grammar is in Balwyn and a number of my classmates at that time were Chinese.
1983: Chinese start buying into Doncaster and Box Hill, which were then more affordable suburbs. I grew up in Doncaster.
1993: After economic reforms start having an impact in China, wealthy overseas Chinese start buying into premium Melbourne suburbs such as Balwyn and <a href="/news">Canterbury</a>. Why? Private schools. Chinese people want to give their children the best education (see 1973) and now a few could also afford to buy a home near the schools of their choice such as Carey, MLC, Scotch and Camberwell Grammar. But it was still difficult under Australian buying laws for overseas people.
2000: With restrictions on what Chinese people could buy and Chinese wealth increasing, off the plan properties became popular for many Chinese buyers. There were very few restrictions on Chinese people buying new properties and Chinese people were used to buying new apartments. High rises went up left, right and centre in Melbourne, many on the back of Chinese money.
2005: Chinese wealth had increased dramatically over the last two decades and as Chinese buyers became wealthier they also became more sophisticated in their knowledge about Melbourne properties and Toorak became a place where land banking became popular. It still is today.
2009: Australian government changes the laws making buying “second-hand” family homes in Australia a lot easier for Chinese people. This one decision really brought the inner Melbourne property market out of the GFC a lot quicker than other countries.
2013: By this time, every one of the bigger buying or selling real estate agencies, ourselves included, has at least one Mandarin-speaking staff member.
2014 : At this weekend’s Super Saturday, 40% of our Top 10 $3m+ sales were in Balwyn, rather than Toorak or Brighton.
So in my 55 year history I have seen this equation of simple demand (increasing Chinese buyers) versus supply (no new land in inner Melbourne) push prices up and up and up. I cannot see anything changing anytime soon. So waiting for the market to turn in 1970, 1980, 1990, 2000 and 2010 hasn’t in my mind proven to be a winning strategy. If you see the right home for you (emotionally, physically and financially) then you should buy it now.
You may be interested to know that for a number of our Chinese clients, one of the reasons we are engaged is that they are concerned what other Chinese buyers may do and they don’t want to miss out.
Auctions in Bayside see around half  the number of people attending as in Boroondara. A good auction in Brighton has 40 people while in Kew it would be 80. The Chinese community is nowhere near as well established in Bayside as it is in Boroondara.
Why not? There are some great private schools in Bayside! St Leonards, Haileybury, Caulfield Grammar.
Its a historical thing. But you can see more and more Chinese people considering say other areas such as Brighton when:
<ul>
<li>Chinese people become more comfortable with Bayside as a place to live, and</li>
<li>Demand in Boroondara and then Stonnington forces some Chinese people to consider other options.</li>
</ul>
Over time the Chinese community demand and supply equation will have the same effect in Bayside as it has had in Boroondara, unless China’s wealth begins to diminish.
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maljames-vHwm28JUAa

Chinese buyers in Melbourne: A simple case of supply and demand

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The flattening number of properties sold under the hammer, which has dropped to one in four from one in three, and the weaker average number of bidders at each auction, which has fallen from the mid twos to the high ones, are signs the market is easing.
But we are not saying that it is going backwards. The market has been taking off for the last 18 months since October 2012, and this may be the first signs of a leveling of the altitude.
Last month we had clearance rates in the 70s – but now it is in the 60s.  It is still moving forward, its just that the angle of the ascent is not as steep in March as it was in early February.
It’s also still possible that the market may simply be in a slight lull before it begins another rise, exactly like the upwards staircase (rise, level, rise, level) we saw last year and towards the end of the previous year.
At the three auctions I bid at on Saturday, there were two bidders (Hampton), four bidders (Brighton East) and four bidders (Malvern East). All three were bought under the hammer having sailed comfortably past their quotes and then their reserves.
Next week is another Super Saturday, with nearly 200 $1 million plus auctions scheduled across Melbourne. So, by 6pm next Saturday we should have a definitive answer on whether we’re seeing a real change in the market direction as we go into Easter.
Negotiation council
But the action is not all auction-based right now. While by the end of last week we had cleared the decks a little and were down to only four ongoing negotiations, a week later we were back up to eleven ongoing negotiations that were being discussed and picked apart at our twice weekly negotiation councils.
A number of clients have asked us what is a negotiation council and what happens at them.
All the better selling agencies have them. They are like match committees or, for the sportingly challenged, like board meetings. We have them twice a week – Tuesdays and Fridays – and we discuss any of our active negotiations, including private sales, expressions of interest, auctions, and off-markets. As I said, we had 11 such discussions on Friday.
The meetings can be formal or informal. Eight to 10 of us sit around a space, and each negotiation is presented and workshopped. We look at what the client wants, the current state of play, the outside forces, the agents involved and their track record and so on, and then we simulate different plays and look at possible outcomes just as a coach would draw up on their chalkboard.
Even though I have bid at more than 1,000 auctions and negotiated hundreds of private sales, EOIs and off-markets, I find these meetings most valuable. Someone almost always has something to improve the plan, and even if they don’t, that fact gives me greater strength going forward that we’re going about things the right way.
A negotiation council is the standard procedure at any good agency, on any deal. This is why you rarely, if ever, get a standard or quick reply to an offer. Over the years the making and receiving of offers has become a very sophisticated process. Every time a milestone is hit by a buyer, e.g. an offer or a significant increase in an offer, it is taken back to their client and also taken back to their negotiation council.
Once the negotiation council has discussed the deal and agreed on a strategy, a smaller negotiation team is given clear parameters of how and when to operate. Deals are done once the result is firstly approved by the client and then secondly if it falls within the agreed negotiation council process parameters. That way a bigger organisation can operate relatively quickly and nimbly to meet the characteristics of a fast moving deal, while still having the benefit of everybody’s input.
Tug of War
I am still surprised when an otherwise very sophisticated businessman tells me proudly that they are launching a full-on assault on what they consider to be a measly agent to secure their dream property. They just don’t know what sort of a self-inflicted ambush they are walking into.
You may be chock-full of adrenaline and overloaded with other types of negotiation experience, but if you are dealing with a successful agency on a good home, you are not in man-to-man combat, you are in a tug of war – and the sides aren’t even.
On one side, pulling furiously in the quicksand, is you.
On the other side, on a relatively firm footing, is a team of two, three or more – in some cases backed up by a number of others feeding them info and plays and scripts and research.
Take a look in the footy coach’s box next time you watch the footy on the telly – that is what you are likely to be up against when you are engaged in an expression of interest, pre-auction offer, boardroom auction, lengthy private sale or off-market.
Good luck!
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Negotiation council: Planning for success

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With the break in traffic due to last week’s long weekend, how did we finish up this weekend after the shaky Second Super Saturday a fortnight ago?
At 6.00pm Saturday the James Clearance Rate for Melbourne’s $1 million plus property was 66% on the 35 auctions we covered; our bidders per auction measurement was at 1.7.
What does all this mean? For us it seems the market at this point in time is probably flattening overall – meaning that prices are leveling after a staircase rise that began in October 2012 and went all through last year and into 2014.
Hold on – what does overall mean?
<blockquote>
If you look at the graphs of 2013 you will see significant overall price increases, but not in a consistently upward straight line.
</blockquote>
It means that while this is a general trend, it’s not the case in every segment. For instance, homes in Boroondara that are drawing strong Chinese interest are still going gangbusters. But the overpriced B-graders and all the C-graders, i.e. the ones needing a big reno and where the price is not quite right, are not showing the same results as they did just a few months ago.
Hold on – what does ‘probably flattening’ mean, and what is a staircase rise?
If you look back over the articles and graphs of 2013 you will see an overall significant advancement in the market i.e. price increases. But this has not occurred in a consistently upward straight line.
What has happened typically is that one month the market seems a bit flat (the landing) and the next month it has another growth spurt (the stair rise), giving the price chart over the year the look of a staircase rise.
This year we started with a stair rise, and then the markets this weekend and the one before the long weekend (1 March) have both been flattish. It’s not terrible, not a shocker – just not as bullish as before (overall) – therefore a stair landing.
Let’s see how the next two weeks go before we start to speculate as to any significant market directional change.
Next weekend has a similar middling number of $1 million plus auctions to this weekend. And then the last week in March is looking like it will be another Super Saturday or very close to it, with around 150 $1 million plus auctions scheduled in the Inner East and Bayside. Some good homes are scheduled too, so we will have a good market to base our opinions on.
Our advice to clients right now is – don’t just assume it’s a runaway auction. Make sure you turn up with 1) a bidding strategy and 2) a pass-in strategy also.
At a pass-in you need to think about how you are going to work through your thoughts if, say, you are the “winner” on the street at $1.8 million but the auctioneer says you still need to give him another, say, $300,000 at the pass-in negotiations to buy it – especially if you were the only bidder.
On the flip side, if you went to many of the auctions this weekend hoping for no interest then you would have left without a home and very disappointed.
In a flattening market you begin to see fracturing results – i.e. a disparate number of bidders and prices paid. Some are hot and some are not, which is what we feel may be the market we are moving into. But a week is a long time in the Melbourne market – so stay tuned.
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Melbourne top end market looks like it's flattening

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In our previous article on expressions of interest (EOIs), we described this form of property sale as being <a href="https://www.google.com/url?q=https://www.propertyobserver.com.au/residential/the-high-stakes-poker-game-of-expressions-of-interest/2014021967905&amp;sa=U&amp;ei=hNsgU5DfGJDqoASAloLQCQ&amp;ved=0CAYQFjAA&amp;client=internal-uds-cse&amp;usg=AFQjCNGhJuGFLvqV_VYBXtRh5uCw1aeSkg" target="_blank">a bit like a game of poker with high stakes and few or no rules</a>.  EOIs can also unfold very differently depending on the agency involved and on the dynamics of the situation making them a challenge for the unprepared buyer.

Here are a couple of examples that show just how differently EOIs can pan out:

22 Rowland Street, Kew

<img alt="" src="/images/stories/2014/03/13/kew-march-13-one.jpg">

22 Rowland Street, <a href="/news">Kew</a> (pictured above) was a quite extraordinary property and we were curious as to what its eventual value would be.

So what happened in the end?

[smartcode_project:default project_id=31282]

Well, by March 1, the agents Kay and Burton had received expressions from four interested parties. Three of these were invited to a Boardroom discussion. This was a little unusual in that the seller’s reserve had not already been met.

The three parties competed at this Boardroom discussion at the mid $4 millions level, until the highest bidder was established. That party was then negotiated with exclusively until an agreement was reached. The final purchase price is confidential but it was in the ballpark of $5 million.

38 Cochrane Street, Brighton

<img alt="" src="/images/stories/2014/03/13/brighton-march-13-one.jpg">

A quite different scenario unfolded with another EOI campaign that we were involved in, for 38 Cochrane Street (pictured above), which came to a conclusion the following day.

This property shared some similarities with Rowland Street – it too was <a href="https://www.james.net.au/rating/38-Cochrane-Street-BRIGHTON" target="_blank">an excellent and unusual home</a> and the vendors had decided to sell it through an EOI campaign with Kay and Burton as the agency.

It too had four bidders. But beyond that, the way things unfolded at Cochrane Street was very, very different.

[smartcode_project:default project_id=25425]

For a start Cochrane Street had a quote, of $3.25 million plus, whereas 22 Rowland did not.

More importantly this EOI campaign did not go the distance. The closing date was March 11, but an offer of $3.5m was put forward two weekends before the closing date.

Another difference is that in this case the buyer offer was acceptable to the vendor. The home was therefore declared by the agents as being “on the market”.

[smartcode_project:default project_id=29974]

It also triggered a faster resolution process than 22 Rowland St Kew. While the Boardroom auction had initially been set down for Monday, after some behind-the-scenes discussions mid way through Sunday afternoon, that was changed to Sunday evening.

At 8.00 pm on Sunday evening, in the home, four interested parties – including us – turned up and all bid until 38 Cochrane was sold “under the hammer” for a confidential amount in the ball park of $4 million.

Implications for buyers

As you can see then, just in these two examples we have two very different methods within the EOI via the boardroom auction resolution concept. These have important ramifications for buyers.

<ul>
<li>One was “on the market” before the bidding started, and one was not. When a home is not “on the market” there can be traps for new players.</li>
</ul>
<ul>
<li>One was concluded well before the EOI closing date and one was concluded two days before. The difference here was the element of surprise from the buyer versus the planned strategies from the seller.</li>
</ul>
<ul>
<li>One was sold publicly in front of all bidders and one was not. Both would have put incredible pressures on people not used to this form of dealing. Try sitting around a table or in the same room with three others who are politely trying to beat you to a pulp and you will start to get the feeling of what a boardroom auction is designed to do.</li>
</ul>
[smartcode_project:default project_id=94079]

And there are other ways of conducting EOIs

<ul>
<li>EOIs can work via inviting best offers, which means you all put in your offers in writing and the highest wins. It doesn’t always quite pan out quite like that, however, which is where it gets tricky.</li>
</ul>
<ul>
<li>You can also have EOI via a private negotiation</li>
</ul>
<ul>
<li>And of course plenty of EOIs don’t actually sell.</li>
</ul>
We have been involved since last year with another EOI Kay and Burton campaign on a totally different property at around the same $5 million price point – and no resolution has taken place yet. As late as last week we were in discussions across the table with both the seller and the “attempting buyers”. This is not a criticism of the process, this is a fact of life. This last meeting took place on a Saturday evening with directors of James Buyer Advocates and Kay and Burton present – so at least both agents and advocates are still trying.

But wait there is more

These are examples of EOIs conducted by Kay and Burton. That’s just one agency. Other agencies we have been involved, such as Fletcher’s, Jellis Craig, RT Edgar, and Hocking Stuart, operate EOIs very differently again. They all have different methods for EOI and the large majority of them are not in writing.

So in summary, expressions of interest are subject to:

<ol>
<li>Big variances within the agency</li>
	<li>Big variations across different agencies</li>
	<li>Changes in the “rules” as you go through the process</li>
</ol>
If you think this process is designed to be transparent and fair to the buyer then you completely misunderstand the concepts behind the process. Not that this is a criticism; after all, the selling agents are not working for you the buyer, they are working for the seller – and whatever works for them is doing the job.

So why would a seller or a buyer get involved in an EOI anyway?

Seller

Often in a sale – auction or otherwise – there is one standout buyer. Conducting an auction campaign with a skilled lone buyer (or buyers’ agent) doesn’t always get the best result for the seller. An auction works best when there are multiple buyers at a certain level. But because an EOI is not transparent – you can’t see any other buyers in action – and there is no real time limit, that can work well for the seller as long as a skilled selling agent is involved.

Buyer

If the home you want is for sale by EOI you have no choice but to be involved. But hopefully you can read between the lines to see some of the strategies of the buyers who eventually won 22 Rowland and 38 Cochrane. Those strategies were very clear and distinct and planned and well-executed, resulting in the desired result.
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Expressions of interest: How the process really works and the implications for buyers and sellers

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Last weekend was the first big auction week back for 2014, a Super Saturday in fact (around 150 $1 million plus auctions in Bayside and the inner east).
Has the mood changed from the good times for buyer (<a href="https://marketnews.com.au/tag/choice/" class="st_tag internal_tag" rel="tag" title="Posts tagged with choice" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">choice</a>) and seller (competition and price) pre-Christmas times to a more challenging market?
Absolutely not – in fact it has gone up a notch for now and especially at the higher end!
What we saw this weekend can be read no other way than "bang!" A very strong start. If the market continues at this level, prices will rise quickly and substantially.
Of course, we do need to wait and see what happens once the traditional first flush of the new year dissipates a little. But it is certainly the case that this time, leading up to Easter, is a good time to be selling a $3 million plus home.
Why?
Well, because after the long Christmas break, after Australia Day has been and gone, a number of buyers and sellers are fired up ready to do something, anything, just to get a home sold or buy a home now. Last weekend’s Super Saturday proved this commonly-known fact within the industry.
So the old girl (the market) has started like a train, house on fire, out of the blocks fast, whatever cliche you want. But let’s see how she settles before we declare that the sky has fallen in, or you’ve hit the jackpot – depending on which side of the transaction you sit.
Let’s see how she settles now that this first wave of activity has satisfied a number of the early birds.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. 
Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
             
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Early birds out in force at the year's first Super Saturday

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In footy parlance, this past weekend was a bit like the pre-season competition.
But things are charging back into the big time this week, with February 22 and the following week March 1 both looking like being Super Saturdays and there are some really interesting homes on offer across Melbourne in that $1.5 million to $3 million plus price range.
On a personal note it was certainly good to be back and out there bidding this weekend. I love being back full-time on the tools, knee deep in the puddles of emotion dotted across Melbourne on a Saturday -  the smell of fear, the looks of anticipation, the cringes of excitement and the hush of <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with uncertainty" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/uncertainty/">uncertainty</a> all rolled into an incredible 15 minute sensory overload. 
If you’ve had your ear to the ground you might have noticed that there is a lot more happening in Melbourne $1 million property than auctions right now.
Expressions of interest
This is a form of buying/selling that is increasingly taking place in the inner Melbourne market.
Expressions of interest might seem straightforward. You put in your price and a deal is done. But you need to understand the unwritten rules – because in a way what they are a game of poker: of bluff and counter bluff, of maneuvering, of patience and of risk – with high stakes, indeed very high stakes for all involved, and few or no rules.
High stakes poker in Kew
Have you seen the home at <a target="_blank" href="https://www.realestate.com.au/property-house-vic-kew-116005755">22 Rowland St, Kew</a> (pictured below), markerted through Scott Patterson and Ross Savas of Kay and Burton?
{yoogallery src=[images/stories/2014/02/20/kew]}
I’m calling it The Biosphere and I mean that as the highest of compliments – go inside and you are totally immersed into the space, light and moods created by the owner and the architect Nick Boschler. 
But this article is not all about the home at 22 Rowland, it is also about the high stakes poker game you will need to play to be the buyer. This is a genuine expression of interest – there is no bulltish quote and no bulltish rules from <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with kay and burton" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/kay-and-burton/">Kay and Burton</a> – it’s put in what you think and then they will talk.
So, what price in the first instance do you offer, what terms and through which agent at Kay and Burton? There were four agents on the job when I visited and it was mid-week.
How do you make that offer – verbal, in writing or on a contract? Do you have a deadline, is it conditional and is your offer negotiable or firm? Pretty straightforward so far, with only about 20 different combinations.
But wait there is more – what happens when they say no, or more to the point what if they don’t say no but they don’t say yes either? What is your next move and the one after that? And what about the questions – the 10 or 20 any good selling agent will ask you under these circumstances? How do you answer them – openly or guardedly or should you just not answer them at all?
Once you put in your actual expression of interest, that is when things will get interesting. Even if you put in your best price, the agent will probably think it wasn’t and even if he or she does believe you, his or her vendor probably won’t. And so the dance starts – backwards and forwards, upwards and downwards – though probably more upwards or sideways than otherwise.
The thing to remember is that expressions of interest are long distance runs not sprints.  So after a week or so – unless you are 'High and Mighty Charlie' with a limitless chequebook – the agent is likely to tell you that you have a new friend, no not him, it's another buyer. And so a new dance begins, only this time it’s more of a group conga than the previous intimate waltz. Well, that’s what you are made or may think.
So back to 22 Rowland – this really is the right type of campaign for the seller, as the buyer is going to be a special one. Of course the seller also knows he or she is involved in the same game and there are some risks for a seller in an EOI process – where the rules can be vague and the way forward a little unclear. Sometimes buyers drop out or just don’t start the engagement process as their fear of uncertainty is greater than their love of the home.
How much is this ethereal creation at 22 Rowland worth? Is it $3 million or is it $9 million?
That is the question. So what is the answer?
We can’t tell you specifically at this stage, but the way we would go about finding that out involves relationships and truths, as well as a number of judgments and non judgements.
We’re not trying to be a smart alecs here. What we are trying to say is the answer to securing 22 Rowland lies in the process more than a specific number.
Off-markets
Another trend taking place is the “off-market”. Off-markets, are where properties are bought and sold without any 'for sale' board, advertising or internet marketing. This week the mysterious off-market widened and continued – especially at the very high end. As a group we have been looking and dealing in homes in Bayside, Port Phillip, <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Stonnington" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/stonnington/">Stonnington</a> and Booroondara that to the casual passerby show nothing to indicate a transaction may be happening.
Note to Sellers: If you have a family home for sale, you know your price and will allow access to our buyers and can get <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with contracts" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/contracts/">contracts</a> if requested, then we can in many cases bring a very real, but private buyer to your door.
We recommend you get a selling agent to represent you, but that is your call whether you do or you don’t.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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The high stakes poker game of expressions of interest

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Last week was the first real hiccup we’ve seen in the top end inner Melbourne auction market this year. With clearance rates in the 60s, and at a very low 1.3 bidders per auction, the market sat up and took notice.
What did this mean?
Was last week the start of a big slump like the Pies had at the end of the season, or was it just an off week like Hawthorn had on the way to another premiership?
In our opinion, last week was the start of something, but of neither of the above. In our opinion it was the start of a more splintered market. Almost half the auctions we covered last week had no bidders and this week again there were a significant number of the top end properties with no bidders. 
Two reasons for this splintering market:
<ol>
<li>
The incredible amount of choice out there at the moment means that unless a home is an A-grader or a well-priced B-grader, it is no longer an automatic sell. This is creating an easing of demand per property. Why? Right now in late spring this easing of demand per property is due mainly to the sheer volume of what’s on offer. This weekend was a big Saturday (100+ auctions) and there’ll be another big Saturday next weekend  (100+ auctions), and then we’re up for a super Saturday (150+ auctions) on November 30.
</li>
<li>
Price – Some vendors are getting ahead of themselves. Nothing wrong with that. Except that in this market they may well be punished by no sale, whereas in early spring that was not happening as often.
</li>
</ol>
Right now, just as a buyer stretching to buy a property has to ask themselves: Am I buying a price or am I buying the property, the market is asking sellers the same sort of question: are you selling a property or are you selling a price? That’s a big difference in strategies!
But, and it’s a very big but: When the property has the right 'three Ps' – price, property and position – how sweet the market is for sellers. That’s the splintering effect.
Let’s look at two sales in Toorak to prove a point.
Both were land sales. We had tentative interest in both at around the quote level, but, as we told our clients, we knew we were never going to be serious contenders. While the homes may have been quoted with an eye on the reserves, they were not quoted with an eye on the expected final result.
So while both went miles over the reserve, they didn’t go miles above the professional estimated buying range.
<a href="https://www.kayburton.com.au/property/11-tashinny-road-toorak" target="_blank">11 Tashinny Road, Toorak</a> (pictured below) – This was 511 square metres of north-facing rear land with two period apartments that needed serious renovation.  The quote was around $1.7 million, but the agents (Scott Patterson and Michael Armstrong) expected more and said so. We put the range at $2.1 million to $2.5 million, expecting it to go in the low $2 million region. It was declared ‘on the market’ fairly at $1.85 million, and with six bidders it pushed through to $2,395,000. This price put land at $4,700 per square metre, strong for that little pocket but normal for other land nearby, such as the nearby Dunraven precinct.
{yoogallery src=[images/stories/2013/11/21/too1]}
 
<a href="https://www.williamsbatters.com.au/?pageCall=property&amp;propertyID=2494642&amp;realestate=6_Verdant_Avenue_TOORAK_VIC_3142&amp;propertyStatus=SoldRented" target="_blank">6 Verdant Avenue, Toorak</a> (Philippe Batters) – On 836 square metres, this was one of the best mid-sized Toorak blocks offered in a long time (pictured below). The $3 million plus quote was courageous – with two street frontages and wide and Verdant Avenue. We thought it might go for perhaps around $4 million, or maybe more, so the final result of $4,445,000 after four bidders had fought it out was not a complete shock but it was still very strong. This says great land down near the Royal South Yarra Tennis courts is worth $5,300 per square metre.
{yoogallery src=[images/stories/2013/11/21/too2]}
In two places not that far apart you had 10 bidders (plus those that didn’t speak up) putting the price of land – no house – at circa $5,000 square metre. So, yes, there is still a very strong market for properties with the right 'Ps'.
All the 'Ps' above were good – position, property and price. The smart agents got these A-graders on the market quickly and then let nature take its course. It’s a very different story from a number of pass-ins where the agents and sellers wanted a price that the market did not support.
This is what is happening out there since Melbourne Cup – buyers are more discerning and if it’s not right they are moving on. This is a change from a month ago.
That is the splintering effect we are talking about.
Now is this smart for buyers? Let’s wait and see. Our thoughts as buyer agents is that if you as a buyer see the right one, you should consider going for it (within reason).  Because there is no guarantee  that we’ll still see this amount of choice next year – even if many of today’s underbidders are assuming that will be the case.
 
<hr>
 Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

Melbourne top end market splintering under weight of stock

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Yes , the market is exploding. <a href="https://marketnews.com.au/tag/demand/" class="st_tag internal_tag" rel="tag" title="Posts tagged with Demand" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">Demand</a> at the moment is huge. Around 250 $1 million plus auctions a couple of weeks ago, that suggests there are around 580 would-be buyers out there hoping to snap up a property before <a href="https://marketnews.com.au/tag/christmas/" class="st_tag internal_tag" rel="tag" title="Posts tagged with Christmas" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">Christmas</a>. These are the ingredients for a very strong property market ahead of us till Christmas.
Does that sound scary? Do you feel like you’re about to miss out?
Well, if you’re a player with a positive the right mental attitude, these market explosions can be happy ones, as long as you regard them with a glass half-full attitude. Why? Because this is a transacting market – one where you can actually buy and sell better than in a down market. There are lots of good properties out there – unlike last year where they were as rare as hens teeth. You just need to be able to identify the one that’s right for you, and know the strategies to be able to buy it.
Remember, even in this market when everything looks expensive– not all homes are the same. Just as in the 2007 market, there is “good expensive” and “bad expensive”. Those that buy the right home now well will be in a far better situation in 2020, than those who snap up just anything hoping to get into the market no matter what.
To those who boast that they bought a home at $200,000 lower than the private sale price all by themselves – with no valuer, no professional advice, no buyer advocate and minimal research – congratulations on buying a home at a price that nobody else wanted in an exploding market.
Buying the right house is not about getting a bargain, it’s about finding a house that is going to suit your family’s needs over the long time. Those who bought well during the last exploding market in 2007 are in a good situation today, confident they could sell their property well if they needed to, but probably not needing to because the house is fulfilling their needs long-term.
So how do you make sure you are the winning bidder on the right house when there are so many others out there chasing the same properties? As we keep pointing out, auction bidding success is not always about who has the most money or the most luck – it is about experience and strategies.
From our recent experience of buying 14 out of the last 18 homes we bid for, and not because our clients miraculously always had the most money, here are our best tips:
Do build relationships
Do get professional advice
Do eat the right foods in the morning and just prior to pass-in late afternoon negotiations
Do understand number psychology
Do recognise that it is possible to buy if your mind is right
The only two don’ts I have for you are:
Don’t buy a home you don’t want (emotionally – life is too short), and
Don’t buy a home that nobody else wants at the price without being fully informed (financially – life is also too short)

<hr>
Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
 
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The dos and don'ts of preparing to bid at an auction

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Well, the market seems to now be in agreement. We are officially, whatever that means, in a sustained upward phase or “boom”.
By our reckoning Inner Melbourne at the top end has been in a “boom” since October of last year (2012).
As the realisation of this hits buyers, the questions we are getting have changed from: “How’s the market going, Mal?” to: “When is it all going to end, Mal?
Our answer is: “Who knows?”, and also: “We think you’re actually asking the wrong question.”
Well, you’re asking the wrong question if you want an informed answer. Because, if we ‘experts’ had little absolute idea as to when the market started, it’s unlikely we should know when it will end.
In any case, is it that relevant anyway? For all we know, the ferocious rise of this current market phase may have already eased. On the other hand it could run, as per 2009, for 18 months, or for another six to 12 months as in 2007, or another 13 years as it did from 1994.
We leave prognostications of the future to the economists, as well as to the media commentators who manage to expound at length on the market on evidence about as skimpy as that used by pre-game footy commentators.
The really useful and good buying question, in our opinion, is not a general market-based one – it’s a specific property-based one: Is this home you are currently looking at a good buy?
More specifically, is it a good financial buy?
Let’s test some theories on the recent ups and downs of the market. In the previous boom markets, who made the good decisions?
Did those who bought homes in 2002 or 2005 or 2009 make good or bad buying decisions?
Did those who bought on the precipice of the falls in 2007 and 2010 make good or bad buying decisions?
The financial wisdom of proceeding rarely relates to overall timing. It relates more to the individual circumstances.
You can still buy very well in rising markets if you have the right fundamentals – the right land content, the right location and the right floorplan.
These are things you can control – unlike the ups and downs of the market. And these are what determine the wisdom of your decisions. We are happy to provide a solid list of buys we purchased in 2007 that had solid property fundamentals, and that were sold over the next five years with a significantly increased price.
The fact is, we have no idea when or indeed if the current “boom” will end.
Our predictions always relate to a longer term picture, as it is impossible to get the short term right anyway. The longer term picture says that the population increase from China, then India and then Indonesia, is fuelling demand for our schooling, space, minimal corruption, safety of money and person, stable politics, pollution and our relaxed lifestyle.
In terms of supply – well they ain’t making any more land! The auctioneers are right on that one.
And in terms of price – are we as a community going to build to increase or decrease our overall wealth and wealth generation possibilities?
So in this current boom, forget about when it’s going to end, and think instead about whether you are asking the right question with regards to making good decisions and buying well for the long term.
 
<hr>
 Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million.
Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Is the market too expensive? Maybe you aren't asking the right questions: Mal James

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When you buy an apartment or townhouse you also become a member of an owners’ corporation, (which used to be called the body corporate), and its best as a buyer you know a few things about it. The normal matters to look at are the rules, fees, operations and such. But one of the most critical things to find out before you buy is whether or not it’s a “happy” OC.

The OC is there to make life easier for residents in the <a href="https://marketnews.com.au/tag/development/" class="st_tag internal_tag" rel="tag" title="Posts tagged with development" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">development</a> and most of them work well. They have a meeting every few months and sort out matters such as insurance, accounts, painting, necessary repairs or other matters in a smooth and easy manner. But occasionally there are some that don’t – and you should make sure that you don’t find yourself becoming a member of an OC from hell.
Sometimes it can be so bad that people decide to sell their recently purchased apartment purely because they find out they’ve joined an OC which doesn’t work.
<ul>
<li>
It may be dominated by a small group of people who feel they own it;
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<li>
It may have an ineffective manager;
</li>
<li>
The members may not be willing to spend any money;
</li>
<li>
Or they simply can’t agree on anything.
</li>
</ul>
Solutions:
You can easily discover how an OC works by getting copies of the last few OC minutes and reading them carefully.
Look to see if there is a person or group who resists everything and makes it impossible for the OC to operate.
Things such as ongoing disputes, drawn-out legal actions, refusal to approve requests from owners and money arguments over minor things are all matters for some concern and may cause you problems in future.
The badly-operating OC may cause you stress, it may cost you money or it may prevent you renovating or having a new pet – so check it out carefully.
As well as reading through the minutes, it may be worth having a chat with another resident or the OC manager to see how it works. Think carefully if you feel you may be getting into a situation you’re uncomfortable with. Your purchase of a new apartment is meant to be a positive lifestyle <a href="https://marketnews.com.au/tag/choice/" class="st_tag internal_tag" rel="tag" title="Posts tagged with choice" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">choice</a> so make sure that it works for you.
 
<hr>
 Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.  
 
 
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Make sure your your owners' corporation is a happy one: Mal James and John Hazen

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Mal James

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