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Hi Margaret,
I am currently looking at purchasing an investment property in Sydney.  I am considering the purchase of an established one or two bedroom apartment in the inner west. Do you believe this is the right option and that the Sydney market will continue to have good capital growth? I hope I would not be buying at the peak of the property cycle in Sydney.
Also, can you have your investment property transaction account offset against a personal home loan and not the investment home loan? I presume that it is more advantageous to have this arrangement as the interest on the investment property is tax deductable, where my personal home loan interest is not?  I just want to ensure that I would not be breaking any tax rules by having this loan structure.
Thank you
Darren
Margaret's answer on next page. Please click below.
                        
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Hi Darren,
Some experts are saying that the Sydney market will continue to boom during 2014, but I believe it will be headed for a distinct slowdown toward the middle of the year.  Even so, I truly believe the best Sydney buying opportunity is now behind you and it may be better to seek out an emerging market, like the mid-ring suburbs of Brisbane, and get in on the start of that boom.
When you refer to your ‘investment property transaction account’, I am going to assume you mean that you have a savings account set up, into which you pay money which covers your investment property expenses, which is also able to offset loan interest.  You can have this offsetting interest on any loan and the tax office does not prescribe where you choose to offset interest.  They can only prescribe which interest is deductible and they have made it clear how they feel about capitalising interest.
Having sad that, remember that you can have your rental income paid straight into your home loan (or home loan offset account) and as long as you meet the interest payment on your investment loans as and when it falls due, this is acceptable. 
Some accountants also say that you can redraw from an investment loan to meet investment property expenses such as rates and repairs, or keep a separate, smaller line of credit style loan which you use to pay investment property related expenses, ensuring you also pay its interest bill each month too.  I’d always seek a private ruling form the tax office before putting any of these unusual arrangements in place.
Regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
                                      
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mlomas-KC9MUPZ6Ca

Is it still a good time to buy in Sydney and how can I structure my personal and investment loans?

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Hi Margaret,
I got a question regarding buying off the plan in Bungarribee region close to <a target="_blank" href="/news">Doonside</a> in NSW.
The off the plan property will cost somewhere between $550,000 to $600,000 after construction, whereas the ready to move houses in the Doonside region are in the range of $480,000 to $500,000, albiet without the first home buyer grant and without stamp duty exemption.
Is it an attractive buy from a first home buyer perspective? Does it makes sense to buy property which is valued at least $50,000 to $60,000 higher than the ready to move, relatively new houses.
And what sort of growth is expected in Doonside and the surrouding region? Additional things I am considering are affordability, community, proximity to transport, schooling and resale value after five to seven years.
Regards,
Rajesh
Margaret's answer on the next page. Please click below.
                
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Hi Rajesh,
When off the plan marketing was first established, it was a great chance for buyers to obtain under- market value properties. Developers needed to get a proportion of pre-sales in order to qualify for development finance and so they offered up to 25% of the development as pre sales, usually at the prices of the day, or less. 
Lucky buyers committed to buy and years later, when finally finished, often found they were paying a lower price for property which due to market movements was now worth more.  The developer got his finance as the bank happily provided the money on the basis of the pre-sales.
These days developers are much greedier, trying to sell entire developments off the plan at tomorrow’s prices.  The entire risk sits with the buyer who is fully exposed to many drawbacks.
These include:
<ul>
<li>
Their commitment to the sale can often mean that, while they wait for completion, a bank won’t lend to them for additional purchases, as this off the plan purchase is a commitment with no income as yet.
</li>
<li>
The market may plateau or even fall after the commitment is made, making the property worth less at settlement than is being paid (and this is actually very common)
</li>
<li>
If the property is worth more than is being paid, there is often a clause deep in the contract allowing the developer to pull out for any reason, but no such clause for the buyer, whose commitment is irreversible
</li>
<li>
On delivery, the property is often quite different in appearance than it appeared in the brochures – developers can make changes of up to 10% without voiding the contract.  You cannot be assured of exactly what you are getting.
</li>
<li>
Though the lender may approve a loan to buy the property, on completion of the building they will reassess the borrower and value the property.  If the buyer’s financial circumstances have changed they may no longer qualify for the loan, and if the valuation is less than purchase price the buyer may not be able to borrow enough to proceed.  They will not, however, be able to get out of the contact and will be sued by the developer to complete.
</li>
</ul>
There are many more drawbacks than this, and a few positives, but as far as investing goes, off the plan can be a poor choice.
While I expect that Doonside will grow at slightly above average, you’ve already established that these off the plan properties are well above current market value, up to 25%.  The market will need to grow by at last that amount in the coming two to three years for you to at least be even, and even then it will be a wasted exercise, as you are tying your money up and there should be some upside to that.
If you would like to buy in Doonside, check out what else is available first in an already established, possibly near new property.  That way, by the time these off the plan properties are completed, you may well have a few existing properties already under your belt and growing!
Kind regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? Ask Margaret!
                
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I'm a first home buyer, is off the plan a good investment? Ask Margaret

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Hello Margaret,
My husband and I, both 50, are considering purchasing an investment property to potentially provide us with an income for our retirement. We have two dependent children, aged 19 and 16, a combined annual income of around $200,000, a mortgage of $320,000 and our home, recently appraised, is worth about $1 million. We are paying off our mortgage at $2,200 per fortnight at 5.1%. We always clear credit card debts before interest is incurred. We have no other loans.
We both have frozen pension overseas, seven and 12 years, and both have had workplace super since returning to Australia in 2006, contributing an extra $100 per fortnight each. We have savings and shares to totaling about $10,000.
I am concerned we will need to sell the family home and downsize, in order to adequately fund our retirement. We would prefer to leave an inheritance for our two children, to enable them to each get on the property ladder before real estate eventually becomes too pricey.
I have been reading your articles over the past year and I'm not sure if we are in a position to purchase a second home, or if this is the way forward for us?
We used 10 years of (cashed in) super, to purchase and develop our first property, at the ripe age of 38 and 35, overseas, giving us a significant profit over the seven years we lived there. Ultimately, this enabled us to return to Australia and purchase our first home here in a good suburb.
Hope you can help us with some independent advice.
Kind regards,
Maria
Margaret's answer on the next page. Please click below.
 
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Hi Maria,
I'm glad you wrote to me before rushing ahead and making any major mistakes.
Firstly, I think it is imperative that you think about planning for your own retirement before you think about planning for your children's inheritance!  You are a lot older and closer to retirement than they are, and the best inheritance you can give them is parents who are financially independent and who lead by example.  Teach them how to be good investors by becoming one yourself and they won't need to inherit.
You are in an excellent position to begin investing, in fact you have been for some time so there's no time to waste.  I've done some quick calculations based upon your equity of around $700,000 and your incomes of $200,000 and, along with projected rental incomes which buying property would bring, there is no reason why you could not in fact borrow enough to buy total property to the value of around $2 million.
Now, don't rush out and do that  - just because you qualify doesn't mean you should do it! 
You must start with a strategy, an assessment of your risk profile, a plan which matches your personal circumstances, then some good quality education to enable you to become a skilled investor before you start.  If you do not follow this sequence you will be setting  yourself up as fodder for every dodgy property spruiker that you are bound to find lurking in every corner - waiting to part you with your money on property which might be right for them (due to their large commissions) but possibly wrong for you. 
Here are some things to be wary of:
<img src="/images/stories/2014/02/21/number-1.jpg" width="20" height="30" alt="number-1" style="float: left;"> Mortgage brokers giving you 'property advice' - they are licenced to give you loan advice only and largely have no qualifications or skills to assist you to invest well.  Their property recommendations are most likely being made because they will be receiving commissions from developers for anything you buy.
<img src="/images/stories/2014/02/21/number-2.jpg" width="26" height="30" alt="number-2" style="float: left;">Financial advisers giving property advice - recent changes to the law means financial advisers no longer make money from commissions, instead they must charge the client.  Some are turning to developer stock to sell to their clients, for which they receive large commissions, with no requirement in the legislation to tell you about them.
<img src="/images/stories/2014/02/21/number-3.jpg" width="22" height="30" alt="number-3" style="float: left;">Glossy brochures advertising fabulous property in areas that you cannot confirm is really a hotspot.
<img src="/images/stories/2014/02/21/number-4.jpg" width="22" height="30" alt="number-4" style="float: left;">Anyone giving you 'property advice' and selling you a property as well - it's impossible to be independent if there are commissions to be made, and these people cannot possibly have properties to sell you in a hotspot which also just happens to be perfectly matched to your own financial circumstances.
Now that I've provided all the warnings, get going!  Read some good property books and look for an adviser who offers a pure advice model.  Get educated too, but beware the spruiker seminar with the high price tag!
Regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
      
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Am I in a good position to become a property investor? Ask Margaret

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Hi Margaret,

I have a duplex approved vacant block in Queensland. The block size is 928 square metres. I don't want to build two houses/units that are attached. I have checked with the local council (Logan City Council), they have informed me that it is possible to have two detached houses build on that block (which we will have to apply for).

Now I also asked them if I could subdivide that block into two lots. They said that was possible as well with application of subdivision costing $1,095 plus $520 per lot which comes to a total of $2,135. They said that the headworks charges would come to approx $28,000. This $28,000 is for one block as there will only be one additional block.

I asked them if there is any other charges that I may come across. They said there would be a water meter connection (which a different department of the council informed would be $1,414.41).

They said that I will also need to hire a surveyor, at least for official drawings for sealing. I estimate the total cost of subdivision to be around $40,000 (including some contingencies). the subdivision is on a corner block so roadworks will not be required. The duplex block is part of a subdivision that happened approx 1 year ago and therefore the infrastructure and all services are all new.

Now I am trying to figure out whether it is better to have the block subdivided into two lots and then build a house each on it or build two detached houses on it without subdividing. If I subdivide, I think the bank valuation would be higher but the rental income would be the same for both scenarios. But if I subdivide, then the return on investment through rent would be less.

Can you please shine some light on things or views that I am missing out on. What do you think I should do?  Should I spend to subdivide (while the extra money spent for subdivision may turn out to be the same valuation that the two blocks combine will generate), or should I build detached houses without subdividing and let the subdividing idea sit for future.

Kind regards,

Chetan

Margaret's answer on the next page. Please click below.

 

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Hi Chetan,

It seems like you have already  done a lot of the due diligence in considering the true costs of this subdivision, so well done.  Often people don’t consider this big picture and instead rush ahead, only to find out too late that the costs exceed the benefits.

It is true that, most often, two separately titled blocks can fetch a better valuation than a single-titled, two dwelling lot.  In my experience the difference is between $30,000 and $50,000, depending upon where the block is.  However, usually the rental return remains the same – tenants are rarely aware of the title arrangements and won’t know whether they are on a separately titled dwelling or not.

You need to consider your personal circumstances before working out if it’s worthwhile spending this money now, or later.

If you will be relying on equity to allow you to leverage into more property, you will want every cent of equity that you can get.  It’s possible that subdividing now will allow each individual block to gain value at a greater rate, giving you more overall equity and allowing you to leverage into more property sooner.  That extra $10 - $20,000 in equity might add up to $100,000 in borrowing capacity (subject to your qualifying), and you could then acquire more property now.

On the other hand, if you have plenty of equity elsewhere in other property and are not stopped from further leverage, I cannot see the point in subdividing at this stage.  Keep the money and use it to pay down debt, which in itself will provide some more leveraging power.

Down the track, when you wish to liquidate your portfolio to access retirement funds, you will probably want to subdivide then, as it will be easier to sell two separate blocks and you should fetch a higher price for each than you could get for the two combined.

Regards,

Margaret

Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.

She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" rel="nofollow" target="_blank">Destiny</a>.

Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>

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I want to build two houses on one block; should I subdivide now or later? 

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Hi Margaret, 
Can you tell me what has happened to unit rentals in Sydney over the past two years? 
Your advice is appreciated.
Kind regards, 
Peter
 
Hi Peter,
This is almost like asking ‘how long is a piece of string!
‘Sydney’ is a very large place and unit rentals can vary greatly from area to area, depending on many things including current demand, current and future supply, housing affordability, demographics and population growth.
For example, rents in <a href="/news">Double Bay</a> are 15% higher than last year while those in <a href="/news">Mosman</a> are 2% lower.  <a href="/news">Cronulla</a> sits 1% lower than last year while <a href="/news">Alexandria</a> sits 3% higher.  <a href="/news">Woolloomooloo</a> is 7% lower while <a href="/news">Parramatta</a> is 4% higher.
As an investor, it's crucial that you have a wider view of what you are buying and you must consider many aspects alongside potential rental yield. Look at areas where the population is growing faster than average but relatively few new developments are planned.
Consider buying in suburbs which have a lot of future infrastructure plans and where it seems that the services required by the demographics of the area are considered and being supplied.
And, more importantly, don’t buy a unit just because it seems to have a good yield, or it feels like a ‘cheaper’ way to get into the market.  In some areas the units grow better than the houses and in others the reverse is true. 
This is related to the kinds of people who live there – in family oriented areas houses will always get better growth and better yields, while in areas targeting couples or singles it will most likely be the units which present the better buy. 
Buying the wrong property type for the demographics could lead to a bad investment in an area which otherwise might have presented a good opportunity.
Regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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What has been happening with Sydney unit rentals recently?

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Hi Margaret,
We are looking to buy an investment property in the next couple of months, preferably a house on the Gold Coast, because we've lived there before and it's affordable.
 We have a house in Penrith, but Sydney is too expensive for what we're after at present.
 Do you think the Gold Coast would be a wise move?
Kind regards and many thanks,
Stacey
 
Hi Stacey,
You sound like you are about to make some of the classic first time investor mistakes, so well done for writing to me first so that we can make sure that you don't!
You have said "preferably a house on the Gold Coast" and then quoted two reasons - that you lived there before and that it's affordable.
Living in an area doesn't turn it into a viable place to invest!  In addition, while investors always state that they have lived in an area, and so 'know it well'  as a reason for choosing it, it's highly unlikely that you 'know' the investment fundamentals about that area.
For example, can you quote the current vacancy rate?  Population growth statistics?  Median household income?  Council plans for infrastructure? Employment stats and industry spread?  I'd say no, and unless you start at least with those basic questions then you might as well throw a dart at a map of Australia and invest where it lands. You have the same chances of success using that method as you do using the 'we know it' method.
Investors must take care not to fall into the trap of believing that living in an area gives them special knowledge, and also that unless you live somewhere you cannot know it well.  There's absolutely no added safety investing in a market you've previously lived in.
In fact, there is often added danger as your familiarity makes you careless and you fail to adequately perform the due diligence needed to make sure that, at that moment in time, you are choosing the very best area to invest in.  Contrary to the rubbish that property spruikers spout, property investment can, and does, fail dismally and until you have learned how to recognise a viable investing area, you shouldn't be buying at all.
The second mistake you are about to make is that your decision making process is being 'price driven'.  This is common and is a situation where an investor uses a price range or price point to determine where they buy.  The reality is that it is never price which determines how well an area will grow. If you are driven by price you may well end up in an area where the returns you see mean that keeping your money in the bank would have been a more profitable venture.
Instead, you should learn how to select an area by doing the research first, and then, if properties in your price range are not available in that area, go looking again for another area which also shows the growth drivers.  I can assure you this 'Sydney' obsession will soon end and those buying there may land quite disappointed with the overall results.  There are many, many areas today with significant growth drivers, showing great promise and with affordable property - you just have to learn how to find it!
Regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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A couple of classic first time investor mistakes

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Hi Margaret,
I am from Sydney and I have a property that is one acre, well it's around 4,375 square metres. 
Originally it was all farm land, but there's been a new development and now I have one of the only acres left. Now have homes all around me and my land has roads at the back and front of me.
I don't think there is much else that I can do to my acre. I would like to subdivide it and I need to do it the right way so I don't make any costly errors. 
I gave spoken with local council and the lot sizes I am allowed to do is 550 square metres. 
If you could push me in the right direction I would really be grateful.
Thanks, 
Shane
 
Hi Shane
It sounds like you have your one acre available to subdivide into around eight lots, depending upon what your council will allow. That should be fairly straightforward, though not without cost.
You must be aware that all councils will have different rules, regulations and processes even though they all fall under the one state government planning department rules.  It's important that you know and understand all of the requirements before you get started.
You should start by going to your local council website and looking up the town plan.  Here you will find the minimum lot size according to the incline of the land, and you can work out how many you can do.
After this it would be wise to contract a local town planner who should be able to have the required surveys, site and engineering plans drawn up for you.  While there is a cost involved in having a town planner involved, it can save you a lot of time and effort and often the risk of getting rejected after you've spent a lot of money.  Town planners usually know the rules intimately, and many have previously worked for council, so they are in the best position to develop a proposal with the greatest chances of success.
You will incur a large amount of cost before you even get to the point where these could be sold. These include, but are not limited to: roads (if required), drainage and sewerage, connection of services, access driveways, cutting and levelling, retaining walls, tree removal and more.  On top of this will be planner fees, council contributions, application fees, drafting fees, engineers costs and surveys.  You will need to fund all of these costs yourself, as until the final approval is in place and a 'construction certificate' is issued, you won't be able to sell them. 
My advice is to make very sure that someone has adequately estimated these costs and that you can afford to meet them before you get started, or you may find yourself in a situation where you run out of money before you are done.
Another option is to either sell to a developer before you even begin, or do the initial work in designing the subdivision but place the acre on the market as a 'pre DA approved' lot. This may then get you a bit more money if you can show the potential subdivision allowed.
Regards,
Margaret
Margaret Lomas is a best-selling author and writes and hosts the popular 'Property Success With Margaret Lomas' and heads up the panel on 'Your Money, Your Call', both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
 
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I want to subdivide but how do I avoid costly mistakes?

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Hi Margaret, 
 We own a five acre block near Darwin with a four-bedroom house under renovation. 
 My hubby is a 65 year-old self-employed tradesman and as we are not overly endowed with super, had the idea that if he built a small residence (granny flat) on same block with separate power, water etc, we could base ourselves there and rent out the main dwelling for income.
We would also caretake the block, e.g. mow lawns, remove palm frond,s etc. (There are a lot of properties this size in this area which build granny flats /dependant units and rent those out seemingly with no trouble planning-wise it seems.) We can’t subdivide five acres here. 
 Can you please advise if our idea is even feasible tax wise before we look into it further? I realise it is a pretty broad query! 
 Many thanks, 
 Jane 
 
Dear Jane,
This is an interesting question and one which is not often asked, and so I referred to Julia Hartman, a great expert on these more obscure scenarios.
She has said that there are many things to consider, the main one being the capital gains tax exemption for your principal place of residence. Once the granny flat is built, if you moved into it immediately, then from a tax point of view this would be treated as two separate properties. Once you rent out the former family home, the cost base of that property is considered to be the market value at the time. The granny flat and the land underneath it would also be given a market value.
At this point you would have to choose which one you wanted covered by the main residence capital gains tax (CGT) exemption – and ahead of time it can be really hard to work out which of the two is likely to have the greatest amount of growth.  If you choose the former family home to have the exemption, then the granny flat and its land will have CGT from its determined market value, and if you choose the granny flat, then the family home will attract CGT from the market value established upon you moving out.
If you don’t want  the property to be treated like two separate assets,  then you need to live in both the granny flat and the house, combined as your home, for the first three months at least.  This way, the two houses are seen as one dwelling,  and for CGT purposes the treatment would be just the same as if you were renting out rooms or part of your home.  This of course exposes the whole property to CGT from the market value of the whole property at the time the granny flat is built, but only for the portion of the home which was rented out – and so it’s done on a pro rata basis.
As you can see – its complex! It’s going to be really hard to actually work out which pathway is the best one to take, since you can’t really estimate future values.  Make sure that you have an accountant who can help you work out some ballpark figures and don’t make any decisions until you have a clear understanding of what could potentially happen in the future.
Regards,
Margaret.
<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News.
She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
 
 
 
 
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How will building a granny flat work out tax wise?

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Hi Margaret,
I'm a new investor and I'm about to invest in a property in Broken Hill. The property is vacant at the moment but the real estate has advised a potential rent of $200.
I'm also yet to do a building and pest inspection. 
Would you be able to give me some advice?
Kind regards,

Ashis
 

When new investors begin the process of choosing their very first investment property, usually they are motivated and guided by the desire to get something as affordable as possible.  In doing so, they consider a price range within their budget, and then go looking for a house to match.  Next, they usually find out the rent return and if it seems as if it will provide a reasonable cash flow, they believe they have a good buy on their hands.
The problem with this approach is that, while it means that you will buy something within your comfort zone in terms of price, with a rent return likely to cover most costs so that your weekly personal cash flows are not too badly impacted, it completely ignores one of the most important features of successful investing – and that is buying a property which will grow and so increase your net worth.  While getting a neutral or positive cash flow is indeed of considerable importance (as highly negative cash flows can cause financial distress and potential early exit), owning property which never grows (or grows very little) will do no more for you than never owning property at all!.
Broken Hill, in my opinion, falls within the category of an area which has affordable housing  and rental yields of over 6%.  However, it has a population which is only not growing; in 2011 it lost 80 people!  There are over 500 properties currently listed, with only four people looking per property available, as compared to a state average of 20.  Combined with a lack of employment opportunities, these facts indicate that there are simply no drivers for property price growth and you’re likely to be left with a property which does nothing in the short and medium term, and likely in the long term too.  You will essentially buy yourself a headache (which most properties are, at some time), with no capacity for a reward at the end!
While I am definitely not a proponent of spending up big when it comes to buying investment property, I believe there is far more risk in buying a cheap property with no demand drivers than there is in buying a more expensive property in an area where you have confirmed employment opportunities, population growth and suitable provision of infrastructure.  Such an area can still have a rental yield sufficient to cover your costs and not stress your budget today,  and in addition to this it can provide growth of your asset and the capacity to leverage into more properties, and thus build a larger portfolio.
Regards,
Margaret
 
<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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Should I buy my first investment property in Broken Hill?

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Hi Margaret,  
I need your help. Currently I have an old house on a piece of land in Longanlea. I would like to look into subdiving the property. Where do I start?
Appreciate your help and knowledge.  
Thanks  and kind regards,
Stacey
 
Hi Stacey,
Many investors write to me eager to begin a subdivision, as they see it as the chance to make quick profits, easily.  Sometimes it is, but more often than not subdividing ends up being costly, time consuming and very stressful, with the profits made disappointing and sometimes not commensurate with the effort which has been made.  
Before you subdivide, it is critical that you establish the likelihood of being able to make a considerable profit from the exercise, both in terms of the final value of the subdivided property and the improved rental yield.  If you are able to subdivide a property while keeping the existing property (with or without a renovation) then this will always be preferable.  In this case you can essentially end up with a free piece of land, which, if developed, will more than likely be worth more than it was before the subdivision.  While you subdivide you can at least be earning  rental yield from the existing property.
On the other hand, if subdivision requires demolition of the existing property, you really must do your numbers to establish if this is a worthwhile exercise.  Demolition can run to tens of thousands of dollars, and along with the costs of subdivision, which in itself can be up to $50,000, you should be sure that the resulting two blocks, considering any loss of value once they no longer have a dwelling on them (or the improved value once you spend money on erecting two new dwellings) is worth it. 
When establishing this, do be sure to take into account the accruing interest on any loan on the property (which you must pay without the benefit of rental income), and the interest on any loan you need to create the subdivision and/or build new dwellings, all which add to your cost base.  
If you have done the exercise and still feel that there is a chance for profit, the next step would be to consult with a local town planner.  Town planners can guide you and help to establish if the proposed subdivision falls within the council’s development application (DA) requirements.  If it does not, they can also advise what they believe to be the chances that you can be granted an approval under an exemption of some sort, which can happen.  The costs of a town planner, which can be anything from $2,000 - $5,000 should be considered in your subdivision costs.  
The town planner should be able to arrange for you any surveys, engineer’s drawings for driveways, drainage and easements and even prepare the submission for you.  Remember that at this stage you must pay all of these costs prior to even knowing if the subdivision will be approved.  Some councils have good pre- DA processes in place designed to minimise costs and save you submitting a DA application which they would never approve in the first place, while others don’t.  I personally have spent $10,000 in an area in Queensland for a DA which is now dead in the water due to a constantly changing opinion about what can and cannot be done, so there is a very real possibility that you will lose money unless you are sure that your subdivision is straight forward.  
Your DA approval will come with a list of requirements which must be attended before the final subdivision is cleared (such as access-way construction, and any sewer and drainage requirements) and, once done, your subdivision is complete.  Depending upon the council and their policy, this can take three months or it can take 12 months – there seems to be no standard here, and however long it takes you’ll have money on the table not getting a return and essentially adding to your costs.
Regards,
Margaret
 
<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
 
     
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I want to subdivide, but where do I start?

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Joel Robinson

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Margaret Lomas

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