<html><body>
The auction of 1/21 Hampden Rd Armadale got off to a slow start and the property looked like it would be passed in at $950,000. But the rain failed to dampen the competition as four bidders finally declared their hand and the property sold for $1.21 million.
In Sydney there were no doubt a few Boags beers drunk last Saturday night as the family of the famous brewer sold the family home well in excess of the reserve. Prior to the auction the property was expected to sell for around $1.25 million but multiple bidders pushed the price to $1.415 million.
This week the downsizing baby boomers will be out in force when the perfect retirement property goes to auction. <a target="_blank" href="https://www.realestate.com.au/property-house-vic-hawthorn-113159479">1/15 Lisson Grove, Hawthorn</a> has the all-important master bedroom with ensuite on the ground floor and comprises a further two bedrooms and double lock-up garage.
The property (pictured below) is expected to sell in excess of $900,000 but don’t be surprised if it well and truly goes over $1 million.
<img alt="tippingmarch22one" height="349" width="470" src="/images/stories/2013/03/tippingmarch22one.jpg">
In Sydney, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-newtown-113170791">87 Campbell Street, Newtown</a> (pictured below) is a tricky one to put a price on. It is a unique property with very few comparable sales to help determine the value. The warehouse conversion has been designed to accommodate a separate business and residence.
Agent Michael Glynn from McGrath Real Estate is looking for buyers with more than $1.7 million to spend.
<img alt="tippingmarch22two" height="311" width="470" src="/images/stories/2013/03/tippingmarch22two.jpg">
There's now a website, <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://mail.privatemedia.com.au/owa/redir.aspx?C=KgoIydkbbkqcxEmtHCpjYzenKRip4s8ILx-ixDagf2W2XMdG8J7GWA4FzDXhsR5a7S8fbUw_Jbw.&amp;URL=http%3a%2f%2fwww.propertytycoon.com.au%2f">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
</body></html>

marmstrong-sd3emVLPPb

Unique Newton warehouse could crack $1.7m in Property Tycoon auction tipping

<html><body>
When we talk about the strength of the property market it is very easy to point to clearance rates as the main barometer. Although clearance rates are a good indicator of what is happening week to week, we need to look a bit deeper to anticipate where the market is heading.
Once an auction is finished, the property is sold and the successful buyer exits the market. The result becomes historical the moment it occurs. The under bidders who are left to lick their wounds will determine what happens next. They are the ones we need to focus on.
The Melbourne market was weak throughout 2012 with clearance rates hovering between 50% and 60%. However, hiding behind the clearance rate was that fact that many of these properties were passed in and sold shortly after. This means the properties either failed to reach the expectations of the vendor and/or there was only one bidder. This means there was not much support underpinning the sale result and very little chance of market growth throughout 2012.
Fast forward to 2013 and <a href="https://www.propertyobserver.com.au/news/apm-s-melbourne-auction-results-for-march-16-weekend/2013031759905" target="_blank">auction clearance rates have lifted</a> by around 10%. Many people are asking if this will continue for the remainder of the year. I think there are clear signs it will. I have attended many auctions in the first weeks of 2013 and although not all of them have had a strong result there is no doubt we are seeing more competition.
Take, for example, <a target="_blank" href="https://www.realestate.com.au/property-house-vic-malvern+east-113084891">1/86 Paxton Street, Malvern East</a>. It (pictured below) was advertised to sell for between $560,000 and $610,000 prior to the auction and had a reserve in this range. On the day of the auction the rain was pouring down and usually this would drive the crowds away. When the auction started for the two storey, three bedrooom townhouse style offering, bids were flying left, right and centre and when the flurry stopped everyone was soaking wet and the price had reached $760,000. This was around $150,000 above the vendor’s expectations.
<img src="/images/stories/2013/03/armstrongmarch20one.jpg" width="470" height="351" alt="armstrongmarch20one">
In <a target="_blank" href="/news">Collingwood</a> a couple of weeks ago, the penthouse apartment at <a href="https://www.realestate.com.au/property-house-vic-collingwood-112993683" target="_blank">24/125 Oxford Street</a> (pictured below) was sold for more than $300,000 above the vendor's reserve. Multiple offers were received prior to the auction and the vendor correctly decided to let the buyers fight it out.
<img alt="armstrongmarch20two" height="353" width="470" src="/images/stories/2013/03/armstrongmarch20two.jpg">
 
<hr class="system-pagebreak">
While it is clear these results are the exception rather than the rule, they are ‘spikes’ in the market. These ‘spikes’ are underpinned by multiple bidders – in some cases as many as 8 to 10 buyers – who have missed out and now form part of the future market.
This week <a href="https://www.realestate.com.au/property-apartment-vic-prahran-113157899" target="_blank">10/36 Grandview Grove, Prahran</a> (pictured below) will go under the hammer and the agents have been run off their feet with around 100 groups inspecting the property. The property was originally quoted to sell for $500,000 to $550,000 but due to demand the quote has been lifted throughout the campaign and is now expected to sell closer to $600,000.
<img alt="armstrongmarch20three" height="350" width="470" src="/images/stories/2013/03/armstrongmarch20three.jpg">
The sale of this property will set a new bar for this style of property and although the successful bidder will leave the market the remaining buyers and spectators will readjust their price expectations as they branch out into the market. This will result in increased pressure on prices and a greater chance of price growth throughout the year.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
</body></html>

Multiple bidders suggest strength even deeper than clearance rate barometer: Mark Armstrong

<html><body>
Another big auction is on the cards in Melbourne this coming weekend, with a mansion apartment in Armadale about to hit the market.
You will be hard pressed to find an apartment to compete with <a href="https://www.realestate.com.au/property-apartment-vic-armadale-113076279" target="_blank">2/21 Hampden Road, Armadale</a> (pictured below).
It is clearly in a class of its own and lies in Armadale's premier boulevard. The three bedroom, two bathroom accommodation comes complete with an open fireplace and a contemporary kitchen.
<img alt="tycoonmarch15two" height="350" width="470" src="/images/stories/2013/03/tycoonmarch15two.jpg"> As you would expect, a property like this has had many groups showing strong interest in the $950,000 to $1,050,000 quoted price range. Agent Elliott Gill from Bennison Mackinnon anticipates strong competition on Saturday.
Last weekend, the auction for <a href="https://www.realestate.com.au/property-house-vic-collingwood-112993683" target="_blank">24/125 Oxford Street, Collingwood</a> was one out of the box as the bidding flew past the $1.3 million reserve and did not stop until it past $1.5 million.
When all bidders had exhausted themselves the property (pictured below) sold more than $300,000 above the average tip at $1.512 million. Only a handful of Tycoons tipped this result.
<img src="/images/stories/2013/03/tycoonmarch15one.jpg" width="470" height="353" alt="tycoonmarch15one">
 The Sydney market fizzled last weekend with four out of five Property Tycoon properties being passed in. The owners of <a href="https://www.realestate.com.au/property-house-nsw-rozelle-112944407" target="_blank">84A Foucart Street, Rozelle</a> had an offer prior to auction of $1.22 million and decided to take the money and run. It will be a different story this weekend and there will be beers around after the auction of <a href="https://www.realestate.com.au/property-house-nsw-bondi+junction-112905499" target="_blank">25 Paul Street, Bondi Junction</a> as the descendants of beer brewer James Boags house goes under the hammer.  The Grand Old Victorian Lady is in the perfect location opposite the leafy green Waverley Park with schools, shops and transport so conveniently close. Agent Kevin Mendes from Laing+Simmons said there has been very strong interest in the property with 109 groups attending the open houses. While most buyers hold their cards close to their chest he is quietly confident the property will sell for around $1.25M
There's now a website, <a href="https://mail.privatemedia.com.au/owa/redir.aspx?C=KgoIydkbbkqcxEmtHCpjYzenKRip4s8ILx-ixDagf2W2XMdG8J7GWA4FzDXhsR5a7S8fbUw_Jbw.&amp;URL=http%3a%2f%2fwww.propertytycoon.com.au%2f" target="_blank" rel="nofollow" style="font-size: 14px;">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
</body></html>

Strong interest in Armadale mansion apartment in Property Tycoon tipping's fourth round

<html><body>
If you’re empty nesters still living in the suburban home where you raised your kids, you may be planning to downscale to a lower maintenance home closer to the CBD and cafe culture.
The inner suburbs are more expensive than where you’re currently living, so you’ll need to maximise the profits from selling the family home to get a foothold in a different market.
You face a choice. Should you play it safe, do a few cosmetic renovations to bring your home up to scratch and sell it pretty much ‘as is’ in the hope that strong demand from buyers will bring you a good sale price?
Or should you take a more aggressive approach towards increasing your potential profit by demolishing your old home, building two dwellings in its place and selling them on individual titles?
Many people think that subdividing is a sure way to make more money than simply selling a property in its current form — but like many ‘sure things’ in property, it ain’t necessarily so.
Working through the figures is the only way to make an informed decision.
Start by getting a firm quote for demolishing your home and levelling the site. Factor in the cost of obtaining the appropriate council permits, and the fee an architect or draftsperson will charge to draw up plans for the subdivision.
Next, obtain an accurate costing for the labour and materials required to build the two new properties. Add a margin of at least 10% for unexpected changes and costs that may crop up when the job is underway.
Then, calculate the cost of interest. Even if you’ve paid off your home, the chances are that you’ll have to borrow money to fund the subdivision. Remember: the longer it takes to complete the subdivision and sell the properties, the more interest you’ll pay on top of the loan amount. It’s worth adding a margin onto the time you estimate the project will take.
Now, work out the rental cost. You’ll need a place to live while the project is underway, so speak with local property managers to find out the likely cost of renting a suitable property in your desired location. Paying rent as well as interest on the subdivision loan could make things tight financially, so it’s important to work out whether you can afford the additional outlay.
You’ll also need to calculate the cost of selling the new properties, including the real estate agent’s fee and marketing costs. These expenses can be significant, so it pays to negotiate a competitive commission with the agent and to satisfy yourself that the recommended marketing campaign will deliver the best value for your dollar by maximising the properties’ exposure to the right buyers.
Then, consider your tax liability. You’ll incur capital gains tax (CGT) when you sell. This could eat significantly into your profit, so seek advice from your accountant as to the exact liability that will apply in your situation.
Finally, ask local real estate agents for an appraisal of what your home is worth in the current market.
It’s a common mistake to calculate the potential profit of a redevelopment by using the value of the property as it stood when you bought it. The land will have grown in value since then, so using the original value could lead to an over-inflated estimate of the profit margin — and bring you crashing down to earth when you actually sell. Make sure you use the property’s value in today’s terms.
Once you have gone through these steps, you’ll have a clear idea if the project stacks up in financial terms. If not, it may be best to opt for the simpler route, undertake a few cosmetic renovations and sell your family home ‘as is’.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
</body></html>

Subdividing isn't always the best option: Mark Armstrong

<html><body>
Well it’s a fait accompli: the property market is back with auction clearance rates in the 60s and 70s so it must be the right time to buy.
Well, that’s what the mainstream media would have you believe, as they flip the coin from negative market reports to positive.
This kind of mass-market reporting makes many people think they must act immediately. But while there is no doubt we are seeing a bit more strength in the market, it is not across the board.
Last weekend we saw two very high quality properties go under the hammer with strikingly different results.
This <a href="https://www.realestate.com.au/property-townhouse-vic-hawthorn+east-112919259" target="_blank">three-bedroom town house in Hawthorn East</a>, for example, was quoted to sell for around $650,000 to $700,000 but in the end sold for $735,000.
The point here is not what the property sold for but the number of bidders vying for the property.
Throughout the auction, six bidders declared their hand and four of those where still in the hunt when the property was declared on the market at $700,000. The property had very strong support from the market and the sale value was well underpinned.
This outcome was a far cry from what happened at <a href="https://www.realestate.com.au/property-apartment-vic-hawthorn-112927163" target="_blank">8/9 Coppin Grove, Hawthorn</a>.
The two-bedroom Art Deco apartment is in a block of only four in a blue chip location.
In anyone’s language it is a sound investment, but the auction was a fizzer. The property was quoted to sell for $750,000 to $800,000 and only attracted a single bid before being passed in.
It sold a short time later for $796,500.
At this stage of the market cycle many investors can feel the pressure to get into the market.
When it comes to residential property, most people’s opinions on the ‘right’ time to invest are based largely on market conditions.
Whilst the state of the market certainly plays a role, changes in factors like interest rates and the ratio of supply to demand are beyond the control of the individual investor.
This is why, if you’re considering buying an investment property, it’s wise to focus on the factors you have some level of control over; in other words, your personal and financial circumstances.
The key to maximising this control is managing risk. Like any asset class, investment property involves a degree of risk.
If your personal or financial circumstances change significantly and you haven’t planned for the change, the risk of getting in over your head is higher.
Before you invest, it’s important that you’re in a strong enough personal and financial position to ride out an unexpected event such as losing your job or contracting a major illness.
 
<hr class="system-pagebreak">
Generally speaking, the least successful property investors are those who haven’t planned adequately for risk, cannot afford to hold the property and are forced to sell before the asset has begun to realise its potential.
To determine whether you’re in a strong enough position to buy an investment property and comfortably shoulder the risk, it’s sensible to seek personalised advice. Meanwhile, here are three of the most important factors to consider:
Income
 The best time to invest is during your peak earning years when your income is steady or, preferably, increasing.
You should also have a reasonable expectation of earning this income on an ongoing basis for at least seven to 10 years.
During this time, you can put any pay packet increases into the property loan to reduce debt rather than merely pay off the interest.
This will enable you to further expand your portfolio over the long term.
Before you buy, think ahead to any possible personal commitments you may make over the next seven to 10 years.
If you’re likely to experience a drop in income due to maternity leave or self-employment, or higher expenses due to home renovations or school fees, you’ll need to consider how these could affect your ability to meet your loan commitments and other property-related expenses.
If things could get tight, it may be best to delay buying an investment property until your income and expenditure is back on a more even keel.
Debt
 Before you invest, it’s sensible to reduce your non-deductible debt as much as possible.
Non-deductible debt is debt you can’t claim against your taxable income, such credit cards, car loans, store cards and the interest on your family home.
There’s little point in taking on more debt by way of an investment property if your current debt levels are already stretching your financial resources.
Gearing
 Only buy an investment property when you’re gearing (borrowing) to a level at which you can comfortably meet repayments even if interest rates go up.
There’s no ‘ideal’ gearing level; it depends on your individual financial circumstances and risk tolerance.
From the lender’s perspective, however, a gearing level higher than 80% is considered a more risky proposition, so the lender will require that you pay mortgage insurance before they approve the loan.
Remember to factor in this expense when you’re planning to buy.
In short, there’s little point jumping into an investment when market conditions are more affordable if you don’t have the capacity to hold the asset for the long term and benefit from its full potential. The ‘right’ time to invest is when it’s the right time for you.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
</body></html>

The 'right' time to invest depends on your personal situtation: Mark Armstrong

<html><body>
I was driving in my car the other day when I heard a radio ad from a group that sells brand new property. The ad said the group only recommended properties in areas that have shown growth that is double that of Melbourne’s growth rate.
The statement got me thinking that just because you buy in a suburb that has had strong growth, it does not mean all property in that area will be a solid investment.   
Take a look at the properties below.
<img alt="armstrongfeb27one" height="326" width="470" src="/images/stories/2013/02/armstrongfeb27one.jpg">
These apartment blocks are located in the blue-chip suburb of Prahran. They each have a similar number of units and sit on similarly sized blocks of land. The only difference is that one was built in the 1960s and the other in 2000.   
Two-bedroom apartments in the 1960s block were selling for less than $200,000 in the year 2000. Conversely, the similarly sized apartments in the new block were fetching over $400,000. Investors who purchased one of the new apartments were paying a premium because they were new.
Today, the older apartments are worth about $550,000 and have been growing by about 10% each year relative to their purchase price. Conversely, the new ones have been growing by closer to 5% per annum and are worth approximately $600,000.   
So why has one grown by $350,000 and the other by $200,000 over the same time frame?  
It is because when you buy something brand new, it begins to depreciate - or lose value - the minute it is used.
A new car, for example, starts to depreciate as soon as you drive it out of the dealership.
Residential property is no different. The building itself, along with fittings and fixtures like floor coverings, stoves and hot water systems (to name but a few) loses value over time.
By contrast, the land underneath the building appreciates or increases in value. This is because buildings, fittings and fixtures are replaceable, while land is not.
The ATO recognises that depreciation is part of the cost of holding an investment property, along with expenses like municipal rates, insurance and interest on the loan. Hence, it allows you to claim depreciation as a tax deduction.
In the case of a building, depreciation is claimed over 40 years. For most fittings and fixtures, it’s claimed over five to ten years.
<hr class="system-pagebreak">
Depreciation can only be claimed for investment properties, not the family home. Claiming depreciation each year can help make it more affordable to hold onto your investment property, because it reduces your taxable income and therefore your tax bill. Basically, it’s a tool to help manage your cashflow.   
Whilst depreciation is often touted solely in terms of its benefits, much less is written about the potential downside.
For starters, depreciation is really just a fancy way of saying that your property is losing value. Even if you don’t claim depreciation as a tax deduction, the property is still losing value. And, because the objective of holding a residential investment property is to achieve long-term capital growth, a property that’s losing value can’t be considered a good investment.
Second, if you do choose to claim depreciation as a tax deduction it will increase the amount of capital gains tax when sold. The ATO allows you to depreciate the building by 2.5% per annum but this will reduce the cost base of the property for tax purposes.
For example, if you buy a property for $500,000, including costs, and claim $25,000 in building depreciation, the tax department will recalculate the cost base to $475,000. If you sell the property for $600,000 your capital gain will be $125,000 not $100,000 as many people believe.
Third, most depreciation occurs within the first five to 10 years after you purchase a brand new asset. If you buy a house or apartment when it’s brand new, or in the first few years afterwards, the building will be losing value.
There is a danger that the depreciation of the building may be greater than the appreciation of the land it sits on. This could result in a loss when you sell.  
Fortunately, there is a way you can minimise the downside of depreciation, yet still gain some of its benefits.
By selecting an investment property that is at least 10 years old, and holding it for a minimum of seven to 10 years (the length of a full property market cycle) you’ll still be able to claim some depreciation, whilst giving capital growth a chance to counteract its effects.  
When used wisely, depreciation can be a useful tool in managing cashflow and helping you hold the investment over the short term. But if you focus equally on the long-term outlook by choosing an asset with strong capital growth potential, you can maximise the value of your property and take much of the sting out of the depreciation tail.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and homebuyers.
</body></html>

Depreciation can be a useful property investment tool: Mark Armstrong

<html><body>
Property Tycoon is back for another big year of auction tipping.
There's now a website, <a target="_blank" href="https://mail.privatemedia.com.au/owa/redir.aspx?C=KgoIydkbbkqcxEmtHCpjYzenKRip4s8ILx-ixDagf2W2XMdG8J7GWA4FzDXhsR5a7S8fbUw_Jbw.&amp;URL=http%3a%2f%2fwww.propertytycoon.com.au%2f">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
<div>
This weekend, a couple of period gems will go under the hammer, and their agents say you will need deep pockets to add them to your portfolio.
Jellis Craig agent Clayton Smith says many people have fallen in love with <a href="https://www.realestate.com.au/property-house-vic-richmond-112894751" target="_blank">10 Erin Street, Richmond</a> (pictured below). However, the $2.5 million-plus price tag is a barrier.
<div></div>
<div><img src="/images/stories/2013/02/tippingfeb25one.jpg" width="470" height="354" alt="tippingfeb25one"></div>
<div></div>
This grand Victorian residence on an elevated site is one of Richmond Hill's most illustrious homes. This prime location ensures a great lifestyle and is close to Bridge Road, fine local parks and gardens, the MCG and Melbourne's sporting and arts precincts.
Another stunning Victorian house to be auctioned on Saturday is <a href="https://www.realestate.com.au/property-house-nsw-paddington-112903655" target="_blank">44 Gordon Street, Paddington</a>. This property (pictured below) ticks all the boxes with four bedrooms, two bathrooms and a double lock up garage at the rear.
<div></div>
<div><img src="/images/stories/2013/02/tippingfeb25two.jpg" width="470" height="351" alt="tippingfeb25two"></div>
<div></div>
The current owner bought the property in 2004 when they paid $2.37 million. McGrath agent Ben Collier has indicated the property will sell in excess of $3 million this time around.
If you think you know what it will sell for place a tip at <a rel="nofollow" href="https://www.propertytycoon.com.au/" target="_blank">Property Tycoon</a>.
</div>
</body></html>

Auction tipping returns with Victorian beauties

<html><body>
Auction clearance rates <a href="https://www.propertyobserver.com.au/auctions/apm-s-melbourne-auction-results/2013021759384?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_self">nudged 70%</a> in Melbourne last weekend and now all the major banks have followed Westpac’s lead in dropping their two year fixed rate to 4.99%. The scene is set for the market to move – particularly the inner urban areas – and I believe it will grow by more than 10% this year.
For many people, this is a scary proposition, as getting into the market is already difficult. With four young children of my own at home, I often wonder how on earth they are going to be able to afford to get into the market. I am sure it will just be a matter of time before they stop asking for iPods and get into more serious requests.
Many parents are already being called upon to assist their children either into their first home or to upsize as they start a family. It is important, however, that both parties enter any arrangement with eyes wide open.
Let’s say your child wants to purchase a $500,000 property (a fairly modest price in many parts of Melbourne). Without a substantial deposit, they are forced to borrow 95 per cent of the purchase price, or $475,000. Unless they can find a way to reduce the loan amount to 80% of the purchase price, or $400,000, they will have to pay mortgage insurance. On a loan of $475,000, this could cost around $15,000.
To avoid mortgage insurance, they need a $100,000 deposit plus around $25,000 to cover stamp duty and other costs. They either need to save $125,000 or call in some help.
If you are willing and able to help, that’s great — but what’s the best way to do it, at a time in life when you are probably focused on saving for your retirement and can ill afford to risk your hard-earned savings?
Option One is to put the funds into a term deposit and offer that as security for the loan. This carries relatively little risk for you because it doesn’t make you responsible for paying back the loan.
In this scenario, they borrow 100% of the property value with a principal and interest loan in their own name. Over time, with the combined effects of loan repayments and capital growth, the loan balance will drop to 80% of the property’s current value.
They should keep an eye on sales results for similar properties in the local area, and ask a local estate agent to give an opinion on the property’s current market value. If it looks like the value has grown to the level where the loan is less than 80%, they can ask their lender or broker to arrange a new valuation. No need to pay for it as many banks now provide free upfront valuations.
If the valuation confirms that they have reached the 80% mark, the lender can release the term deposit and the money is yours again to do with as you choose.
What if you don’t have a lazy $125,000 in cash? Option Two is to take out a line of credit against your family home or investment property. You transfer them the funds, and they take out a $400,000 loan in their name. This option is relatively low risk for you because you are not responsible for the loan repayments. However, you need to understand that lenders charge interest on funds withdrawn from a line of credit. The rate is generally around .15% higher than a normal home loan.
Option Three carries more risk for you and should not be entered into lightly. Under this option you put up the family home or investment property as security for their loan. In this case, you become guarantors and therefore responsible for the loan. If they don’t meet the repayments, you could lose the property, though this only happens in extreme situations.
If you choose this option, it’s preferable to ask for a limited liability guarantee, which means you are not liable for the whole loan amount. In addition it is better, if possible, to use an investment property as security. This way, if the worst happens, the family home won’t be jeopardised.
No matter which option you choose, you should aim to minimise the level of risk and the length of time your funds are tied up. The sooner they can take full responsibility for their financial affairs, the better off everyone will be.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers
</body></html>

How to help your children break into the market: Mark Armstrong

<html><body>
The global financial crisis has had a significant impact on the way Australians view American society. When I first visited the United States around 15 years ago they thought we wrestled crocodiles, called prawns shrimp and rode kangaroos to work. Their view of Australia was driven by the media they were consuming. 
We all laughed at the simple attitudes of the American public and how naive their view of Australia was, but we have to be careful not to fall into similar traps. 
If we were to believe the media, we would be under the impression that America is one massive foreclosure sign and every property has lost more than half its pre-GFC value. While there is no doubt many property markets in the States are in serious trouble, there are some markets that have held their ground. 
Take, for example, <a target="_blank" href="https://www.zillow.com/homedetails/15-W-11th-St-APT-3B-New-York-NY-10011/72513457_zpid/">this one-bedroom apartment</a> in New York City's Greenwich Village.
 <img alt="greenwich" src="/images/stories/2013/02/greenwich.jpg" height="174" width="300">
It was purchased in 2007 just before the GFC for $1.2 million. Five years later it came out with its head held high and sold for a respectable $1.15 million. 
Similar examples can be found on the west coast of America. In San Francisco <a href="https://www.zillow.com/homedetails/554-Valley-St-San-Francisco-CA-94131/15182872_zpid/" target="_blank">this four-bedroom family home</a> sold for $2,879,000 in 2007 and was sold again in Jan this year $2,725,000.
<img src="/images/stories/2013/02/sanfran.jpg" alt="sanfran" height="196" width="150">
Yes, they both slipped back by a small amount, but even during one of the worst economic environments ever seen these properties protected the majority of their owners’ capital. 
So why does this happen, and what can we learn from it?
Both these properties are located in major cities with strong employment centres, infrastructure and schools. Further, they are in areas where there is a shortage of land, and both are period-style homes that are almost impossible to replace today.
In short, these properties have consistent underlying demand from a large number of people and a limited supply. The laws of supply and demand indicate that regardless of the market conditions these properties are more likely to retain their value during down times and grow well when times are good.
These laws of supply and demand do not have a nationality and will apply to any property market all across the world. They were in full flight on Saturday when a massive crowd turned out for the auction of <a target="_blank" href="https://www.realestate.com.au/property-house-vic-thornbury-112730267">154 Hutton Street, Thornbury</a> (pictured below).
<img alt="huttonst" height="353" width="470" src="/images/stories/2013/02/huttonst.jpg">
During the campaign for this run down timber Edwardian more than 3,000 people viewed the listing online. This translated into more than 360 people turning up to the open for inspections. Impressive numbers in any market.
The property ticks the boxes of limited supply and strong demand. It lies within seven kilometres of Melbourne and sits on around 600 square metres of land. It was also well located to shops, transport, parks and schools. To top it off, the property was seen by many buyers as affordable, as the agent was expecting it to sell for around $800,000.
The scene was set for a big auction as multiple buyers viewed this property as "the one". With the exception of a few under-bidders, the auction did not disappoint anyone. It was declared on the market at $835,000 and when the hammer fell it had exceeded this point by almost $100,000, selling for $933,000.
In a strong market all property looks good, but it's not until the market turns south that the cream rises to the top. As the market heats up into 2013 buyers would be wise not to lose sight of the laws of supply and demand.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
</body></html>

What the American housing market crash can teach Australia

<html><body>
 The Melbourne property market had everything thrown at it at 2012 with low clearance rates, international reports that stated it is overvalued and a barrage of negative reports in the media suggesting the market was going to experience a US-style crash.
But the latest figures from the REIV show not only did the property market hold its ground, but it actually began to pick itself up from the canvas and showed significant growth in the last quarter of the year.
<img alt="armstrongjan30" height="91" width="470" src="/images/stories/2013/01/armstrongjan30.png">
While the 2012 year started on shaking ground as property values continued to slide, the December quarter showed a massive 7.8% jump in median value for houses.
This growth is in line with what I was seeing in the market as reported in my September Property Observer article<a target="_blank" href="https://www.propertyobserver.com.au/residential/a-new-breed-of-upgrading-home-investors-injects-buoyancy-into-the-subdued-suburban-property-market-mark-armstrong/2012091856658"> A new breed of upgrading ‘home investors’ injects buoyancy into the subdued suburban property market.</a>
The research showed strong demand coming from home buyers who were looking to upgrade the family home and take advantage of a soft property market.
This jump in last quarter median values turned the corner for the housing market and resulted in a 4.7% growth for the year. Melbourne apartments also performed well. with 4.2% growth in the last quarter pushing it into positive territory by years end.
The wash-up is the market has proved to be very resilient and as we look forward into the 2013 there are some clear signs the property market will continue this trend and some sectors may even return to the heady heights of in explosive growth seen in 2009. The catalyst will be a growth in confidence driven by interest rates once again.
While history is no guarantee of what will happen in the future it does provide some useful insights. In September 2008 the cash rate was at 7%, seven months later it had plummeted to 3% and property investors exploded back onto the scene forcing the property market in Melbourne to surge by more than 20% in 2009.
This time around the RBA has been a bit more tentative with the trigger. It has been careful not to cause a frenzy and has slowly lowered rates to entice investment back.
The last upward interest rate movement was way back in November 2010, and the RBA has met to discuss the economies outlook 23 times since. On 17 of those occasions it has decided to leave the rates on hold. In the remaining meetings the board have voted to lower rates.  Rates have now fallen by 1.75% at sit at the 2009 level of 3%.
<img alt="armstrongjan301" height="199" width="470" src="/images/stories/2013/01/armstrongjan301.png">
This slow decline in rates has meant property investors have sat on the sidelines and watched. This will not last forever.
I don’t think the return of property investors will be as bullish as we experienced in 2009, and this is a good thing. Any market that experiences euphoric highs is destined to fall on the other side. I predict the market will learn from its recent experience and move into a more sustainable growth pattern.
Interest rates are not the only factor weighing on investors' minds. Their confidence is being enhanced by the fact many Australians have money burning a hole in their pockets. According to the RBA household savings rates are at the highest levels since the mid ’80s. They have been trending up since the mid-2000s and now hover around 10% of disposable income.
In addition, many borrowers have been making substantial excess principal repayments in recent years, and this will increase their equity and cashflow positions.
 
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
</body></html>

Melbourne property market very resilient and may return to heady heights of 2009 in some sectors: Mark Armstrong

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

Mark Armstrong

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News