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<h2>OPINION:</h2>

The COVID-19 ordeal has thrusted a plethora of topics into the media spotlight and <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">Australia’s property market</a> is one of them. The sentiment seems to be largely negative, and understandably so, as we are certainly experiencing something unprecedented in our generation. 

With the economy in question and unemployment fears in tow, it is unsurprising to see headlines such as “House prices to tumble” grace our front pages daily. 

That being said, one needs to take a step back and think outside of the media.  
  <a href="/guides/how-to-navigate-buying-property-during-the-covid-19-crisis">Property markets</a> are, after all, cyclical. Uninterrupted exponential growth does not exist. House prices may fall but they also recover. In every period of financial market disruption – from the Asian market meltdown of 1997 and the tech boom crash of 2000 to the more recent GFC of 2008 – property has always rebounded strongly. 

Historically low interest rates will also play a big part in how the housing market will grow following COVID-19. In your lifetime, could you ever have imagined borrowing money at an interest rate starting with a 2?

What I can offer you is insight as someone who is experiencing the market firsthand. Week on week, our enquiry and interest levels have been <a href="/guides">getting stronger</a>, and transactions are still occurring. These data are key indicators of whether there is an appetite in the market. If the current figures are anything to go by, one can only imagine what this will look like by year’s end as it will only improve as we move closer to reintegrating and out of isolation. 
  
Now is the time to be on the lookout. You don’t necessarily have to be too opportunistic on distressed selling as they may not be as forthcoming as one might be expecting, given the low rates together with assistance banks have provided. Instead, I encourage you to look at what the market rate is and capitalise on the lack of competition to get better terms. 
  
With rates so low, this is a rare environment for an <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">investor</a> where in most cases, property will be cash flow positive. This market has self-corrected the Negative Gearing debate as there won’t be any. 
  
Simply put, this period does not need to be too dramatic, but rather a time where clear thinking can lead to great opportunities. At the moment, there seems to be a healthy number of people thinking the same, but it is just not being reported. 

My advice to everyone with skin in the game is to stay calm, do your own research and don’t let the media headlines get to you. It pays to think ahead of the curve as that is how real gains are made.
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Melvie

Looking beyond the headlines

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The <a href="https://www.yoursaydarebin.com.au/streetsforpeople">Streets for People</a> concept is all the rage in 2020. It is the new vocabulary used by agencies, planners, designers and communities to prioritise pedestrians and cyclists in our movement networks.

The concept itself is not rocket science.

<h2>The Streets for People Concept</h2>

A street is not just a conduit for movement. It can also be an inviting, vibrant place that supports the local community and economy.

Pre COVID-19 committed agencies were working hard to deliver Streets for People through finding the balance between providing for vehicles while fostering sustainable transport within the existing streetscape profile. Streets for People represents a paradigm shift in thinking about streets and road reservations as spaces for all users through the negotiation of confined road spaces. This initiative is a quintessential model of the marriage between strategic and <a href="/news/how-do-we-restore-the-publics-faith-in-transport-planning">transport planning</a>, and urban design.

Implementing successful streets for people goes beyond implementing bike paths. To achieve holistic people-oriented- places, infrastructure upgrades must also be paired with public realm improvements grounded by the following principles:

<ul>
<li>Prioritising People: To recognise people as key street users. Street design should maximise opportunities to improve pedestrian safety and amenity.</li>
	<li>Maximising vibrancy: To encourage activities to spill out onto the street from nearby buildings. Create opportunities for visible street activities.</li>
	<li>Minimising conflict: between the varying modes of transport, a higher priority given to pedestrians and cyclists without compromising the functional role of streets to support existing and future uses.</li>
	<li>Increasing cycling confidence: along the corridors by providing high-quality cycle infrastructure that is connected, easily navigated with varying degrees of separation from traffic.</li>
</ul>
<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/streets_for_people.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="989" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/streets_for_people.jpg?itok=6rO7qdGx" width="580"></a>

<figcaption>Movement and Place Concept. Image credit: VicRoads</figcaption></figure><h2>Streets for People vs Post COVID-19 Agoraphobia</h2>

Amsterdam's cycle-centric urban system is the by-product of the 1970s oil crisis.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/streets_for_people1.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="216" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/streets_for_people1.jpg?itok=W9FkB1Zm" width="580"></a>

<figcaption>Contemporary Amsterdam (right) and 1970s Amsterdam (left). Image credit: Sustainable AMS &amp; Schlijper</figcaption></figure>We can safely assume agoraphobia will be ongoing within the community in the coming months. Following the Stage 3 restrictions that were announced in late March, there was a recorded 80% drop in pedestrian <a href="https://www.arrb.com.au/latest-research/data-sheds-new-light-on-covid-19-effects">footfall in the CBD</a>. As pedestrian footfall drops, local businesses bear the consequence and further jobs could be lost.

To revive the local economy in the coming months is to support local businesses. These local businesses rely on passing trade, euphemistically termed the 'walking wallet'. Bringing people back to the streets is of paramount importance.

When the time comes for restrictions to be lifted, life will not be the same. Social distancing measures and <a href="/guides/covid-19-how-to-adapt-to-working-from-home">remote working arrangement</a> will continue in some capacity until there is a more permanent solution. Community anxiety for lingering in public space, using public transport and <a href="/guides/covid-19-is-it-possible-to-practise-social-distancing-at-home-absolutely">social distancing</a> will continue to influence the way we live. Vibrant places such as the CBD, or local shopping strips will be impacted.

It's far too early to find a silver-lining in COVID-19. However, you may have noticed as we're facing the crisis there has been an uptick in creative problem-solving.

<h2>When our driving habit is disrupted, creativity follows</h2>

In a bid to avoid public transport, commuters have dusted off their bikes.  Bike shops are seeing a spike in new riders. Most of whom have not ridden in years, myself included.

From my home office, supporting local businesses includes buying our groceries and getting coffee from local shops. I was not alone. This spending habit becomes more frequent and in demand. My local streets are experiencing an increase in pedestrian and cycling activity. It is more pertinent now than ever before to start reorganising our streets in response to increasing walking and cycling demand.

New Zealand is already creating a funding stream to facilitate wider footpaths and bike lanes quickly through <a href="https://www.beehive.govt.nz/release/govt-fund-temporary-cycleways-and-footpaths-post-covid-19-lockdown">tactical urbanism</a>. It will enable the community to practice safe social distancing, nurture long-term behavioural change and visually add vibrancy to the streets.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/streets_for_people2.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="435" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/streets_for_people2.jpg?itok=yZPjQPWJ" width="580"></a>

<figcaption>Federal Street in Auckland; more cycleways, extended footpaths - an example of how our cities will be redesigned for COVID-19 style social distancing. Image credit: bikeauckland.org.nz
</figcaption></figure><h2>Embrace the unlikely partnership</h2>

Unlike in the context of natural-disaster recovery projects, we can occupy and expand existing infrastructures. Shopfronts can continue to cater to tenancies and generate the desired pedestrian footfall to encourage local spending and bring back the vibrancy of a local area. A vibrant street is a viable street that supports much-needed employment in post-COVID-19.

Without relying on cafés as a trigger for place-activation, this is the time to reconsider what other uses can generate pedestrian footfall and <a href="https://www.citylab.com/design/2013/07/streets-can-be-public-spaces-too/6235/">re-activate the street</a>. Temporary, or pop-up working space, or shop fronts for universities, art installations, major shopping centres, or sole operators are ways to utilise existing infrastructure in the short term. Being within the community, to engage and contribute back to the local economy is one way to break down the invisible barrier that some of existing campuses, or shopping centres are modelled on.

<h2>Delivering streets for people in a time of crisis</h2>

Not too long ago, streetscape upgrades for footpaths and <a href="https://www.bicyclenetwork.com.au/our-campaigns/footpath-riding/">bike lanes</a> were rarely prioritised. With an array of stakeholders and decision-makers, often, negotiation for car parking and traffic lane re-arrangement becomes too complex and political within the context of limited budget and time. 

A strong partnership between government, landowners and the community is needed. In a crisis, vision alignment often puts important and urgent matters to focus to set a common goal. In this instance, we all have a role to play. Transport planners, urban designers, landscape architects must find creative ways to create wider footpaths and safer cycling infrastructure within our existing road network. State and Local Governments should continue working with landowners and shop operators in finding ways to reactivate shops and reduce unemployment through rental relief, or grant. Communities should feel empowered to advocate their local council for streetscape interventions that can improve pedestrian safety and foster stronger community relationships. 

Lastly, on-going community support for a ‘streets for people’ response to COVID-19 is a more productive and energizing defence through this uncertain time.

<h2>Final message</h2>

When facing novel problems, we see new uses for our resources and skills. The time to implement Streets for People is now. Meanwhile, do take care and be kind to each other.
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OPINION: ‘Streets for People’

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<h2>OPINION:</h2>

There is no doubt that COVID-19 has brought a tremendous impact to the <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">property market</a> that no one could have evaded. Aside from significant reduction in hospitality turnover and empty offices due to <a href="/guides/covid-19-is-it-possible-to-practise-social-distancing-at-home-absolutely">social distancing</a> policy, COVID-19 may act as a catalyst to blur the lines between apartments, offices, and hospitalities design.

Before the pandemic, we can already see new high-end apartments and co-working offices <a href="/expert-insights/buying/the-future-of-work-discussion-is-missing-its-biggest-opportunity">integrating with hospitality</a> in both design and services. Spa, pet care, and private dining rooms for residents; <a href="/news/how-living-in-a-mixed-use-precinct-can-benefit-you">vertical integration between retail precinct and apartments</a>; cafes, gyms, and even pilates studios within offices. Lifestyle has changed from having a clear identification of where to work, live, and entertain, to a highly accessible blend of our day to day activities.

Now we are having more percentage of people <a href="/guides/covid-19-how-to-adapt-to-working-from-home">working from home</a> than ever, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-04-06/coronavirus-covid-19-self-isolation-online-shopping/12122834">online shopping and delivery being more common than ever</a>, and therefore the blend of day to day activities becomes a norm as everything happens at home now. This trend is going to change what apartment buyers may look for in terms of the amenities, security, and apartment layout.

1. Apartments with study areas or study rooms are still a minority in the current market, but people may start looking for a proper home office after they faced the frustration of sharing the dining table with family members whilst having a Zoom conference. As businesses are adopting the work from home model, it may become a long-term practice even after the pandemic. Conference facilities can be highly favourable by some apartment buyers.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/line_between_apartments.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="412" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/line_between_apartments.jpg?itok=cWsxAS6c" width="580"></a>

<figcaption><a href="/buildings/the-international-81-bay-street-brighton">The International, Brighton</a></figcaption></figure>2. It is still very common for the delivery company to leave a card in the letter box when people are not at home for a parcel delivery, but as online shopping becomes more common people may look for better solutions such as shared lockers in the mail room. Afterall, the trend is that people are writing less letters and <a href="https://www.bigcommerce.com.au/blog/ecommerce-trends/">placing more orders online</a>.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/line_between_apartments1.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="325" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/line_between_apartments1.jpg?itok=NGTMSWlE" width="580"></a>

<figcaption>The Hub locker by Amazon</figcaption></figure>3. Security and privacy concerns come along with convenience. There are occasions that we want to grant access to non-residents without handing them a key. A visiting friend arriving early when you are still on the way home, an Airbnb customer who is only staying for 2 days, a furniture delivery that certainly can’t fit in a locker etc. Being able to grant limited access via a smart system may get more common as more activities happen at home.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/line_between_apartments2_0.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="1031" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/line_between_apartments2_0.jpg?itok=ySbxIJWI" width="580"></a>

<figcaption>Kasta smart system</figcaption></figure>4. Health and wellbeing have undoubtedly become one of the most important topics recently. Aside from short term practices of using hand sanitizers and face masks, there are long term influences on people’s awareness in their health. The focus of amenities within or around a potential home may be switched from bars, fine restaurants and shopping areas, to spas, gyms, and greeneries or parks nearby. Ventilations and <a href="https://www.realhomes.com/advice/how-to-maximise-natural-light">natural lights</a> may also weigh more when selecting apartment layout.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/line_between_apartments3.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="362" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/line_between_apartments3.jpg?itok=n60MQYwm" width="580"></a>

<figcaption><a href="/buildings/the-eighth-south-melbourne-22-kings-place-south-melbourne">The Eighth</a>, South Melbourne</figcaption></figure>The <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market">COVID-19 pandemic</a> is definitely a crisis in many aspects, including the property market. However, when there is a disturbance, changes will come short after. Developers will have to adapt the changes and be a step ahead of it.
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Line between apartments, offices, and hospitality become a blur

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<h2>OPINION:</h2>

Attending an <a href="/guides">open home</a> is practically a Saturday sport for many property enthusiasts. 

Whether you are a curious neighbour, <a href="/guides/how-much-do-you-really-need-to-spend-on-an-apartment">potential buyer</a> or just happened to be walking past at the right time, we have all explored multiple properties under the guise of ‘research’.

Along with my favourite café, restaurant and beach, now <a href="/news/open-house-melbourne-building-list-announced">open homes</a> are shut for the foreseeable future. Unless you can meet criteria that extends to you being a genuine finance approved buyer, solemnly swear to not touch anything, are in good health and of course <a href="/guides/how-to-navigate-buying-property-during-the-covid-19-crisis">not shaking the agent’s hand</a>, the days of property viewing as a sport is a little lacklustre at the moment.

With the established property doors closing on people’s faces we are seeing a marked increase in the <a href="/guides">enquiry for new builds</a>.

It makes sense, right?

We are in a collective stay home order but that doesn’t mean you can’t plant a seed for your financial gain. With all your new spare time you can make some inroads to your future.

Take for example the following things you would probably avoid doing on a sunny Saturday:

• Get up to date with your tax returns  
• Review your financials – can you trim the fat?  
• Get onto your broker (or find on)  
• Find out what you can potentially borrow  
• Start the online search  
• Peruse floor plans, get really familiar with what you want.

<h2>What are you looking for in a property?</h2>

What are you willing to go without and what is a must have for your new property?

Property buyers all <a href="/news/first-home-buyers-snap-up-property-due-to-fear-of-missing-out">have different criteria and needs</a>. If you are an investor you need to consider who your tenant is likely to be – consider age, gender, lifestyle.

For example, if you are buying a <a href="/new-townhouses">townhouse</a> in a family centric location you need to consider that parents of small children will want a bathtub. They would like to be near a park and schools.

If you purchase in a location attracting double-income professionals, then chances are proximity to a primary school wouldn’t be as important as a café or a local restaurant scene.These tenants would be looking at commutes to the CBD using public transport and the ease of access.

If you are <a href="/guides">buying off the plan</a> for your own home, then you can spend time looking at floor plans. Google maps and street view can deliver so much insight into a neighbourhood. Best of all, this research can be conducted in your pyjamas.

<h2>Use this time to set up your future</h2>

This is the time to absolutely shine on your <a href="/developments">new property search</a>. Even if purchasing is not an option imminently you can discover what changes you need to make in order to <a href="/guides/how-much-can-i-borrow-for-a-new-home">borrow funds</a> to proceed.

If you need to get rid of a credit card or a car loan, then focus your attention to this.

Set up a plan, a real strategy, with goal dates and realistic monetary benchmarks to achieve this.

This time in history is a window to set yourself up. Plan now, funnel savings as you need to and remember that if you are looking to buy new, times like this can help you set yourself for success.
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Is buying new the right move in 2020? A perspective from a property strategist 

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<h2>OPINION:</h2>

At present we are being bombarded with various opinions on what <a href="/industry-news/how-are-real-estate-agents-assisting-during-the-covid-19-crisis">this global pandemic</a> means for the economy and subsequently the merits of investment.

With any investment, timing can be vital.

We find ourselves in interesting times, I say interesting rather than the current buzzword, ‘unprecedented’, because I tend to disagree with those in the ‘unprecedented’ camp.

Movement in the <a href="https://www.asx.com.au/">Australian Stock Exchange (ASX)</a> has been volatile since 21st February 2020, a date that is widely accepted by the investment community as when the COVID-19 effect first appeared.

On that day the ASX closed at 7,139 and fell to a recent low of 4,546 on the 23rd March 2020, since that time it has rallied somewhat but has been characterised by unpredictability.

<h2>What about other markets?</h2>

They all fell. Defensive stocks, government backed securities, hybrids, property. The lot.   
We can observe our most recent global crises for a clue here and this is also why I believe that our current situation is not ‘unprecedented’.

“In October 2008 all markets – gold included – fell sharply as the credit markets seized up. At the time gold was being sold as investors sought funding to shore up losses in other markets. The U.S. government began working on bailout plans in October 2008, which was the depth of the global financial crisis.”   
Debbie Carlson, Kitco Metals Inc.

Sound familiar?  We have already seen bond spreads wider than during the Global Financial Crisis (GFC), a marker of fear and uncertainty.

<h2>Property markets</h2>

I remember when the GFC impact reached our shores, discussing its impact with clients and undertaking many valuations of security property assets. Many were worried, most were at least concerned.

Let me provide an example.

In early 2009, Client ‘A’ was a High Net Worth individual earning in excess of $400,000 per annum.

He was married with two children in private school and was considering the purchase of a holiday home in a coastal area.

We had a valuation of his home (located in Melbourne’s inner East) on file no more than 12 months old that ascribed a value of $2.8 Million to the property.

As part of our due diligence on the possible transaction we revalued his home.  A valuer for the same lender came back with $2.2 Million.  This triggered a candid conversation and one which I draw on in these current ‘interesting’ times.

In short, this client backed himself.  He considered things carefully and was confident that the real estate he was buying was good value (due to market conditions) and his own home would rebound.  Most importantly he was confident he could meet the repayment obligations.

I am pleased to report that this client has since acquired the property next door to his holiday home and also extensively renovated his own place.  I might add we re-valued that property prior to the renovation at $3.5 M in 2017 using the same valuer.

This is merely one example, there are many variations on this theme and also examples of where people got spooked and fled the market, only to buy in again at inflated values later.

The thing that most of us should have learned in the GFC is that property markets, like all markets can go down. It is the purpose for which you are investing that needs to be considered as well as your own capacity.  In my example this client had a long term view and confidence in his ability to repay so has managed to reap the rewards.

Currently, low interest rates are making investment in quality property more affordable.  The general consensus is that <a href="https://www.theguardian.com/australia-news/2019/oct/01/reserve-bank-cuts-interest-rates-to-historic-low-of-075-to-boost-flagging-economy">interest rates will remain low for some time</a>.

It is also evident that there are some good buying opportunities emerging, as Jarrod McCabe from Wakelin Independent Property Advisory, stated in a recent webinar entitled, ‘Covid 19 and property investment on the 31st March 2020.’

‘I think it is probably inevitable that there is going to be some form of contraction (in residential real estate prices), to what level at this stage it is probably a little but too early to tell.’

He went on to say that a clear picture is likely to emerge after the Easter break.

<h2>How are Lenders Responding?</h2>

As part of my professional practice I hold daily conversations with decision makers across credit markets.  These men and women are charged with assessing applicant’s ability to borrow to support personal, business and investment proposals, including real estate.

Some of these conversations are now feeling eerily like the beginning of the GFC, funders are tightening their assessment criteria and applications that may have sailed through pre-Covid 19 are now being carefully scrutinised.  Several sent out revisions to policies last week.

I can hear some of you thinking, ‘but the <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">Government is backing the economy</a>’.  I would urge you all not to fall into a false sense of security just because the Treasurer has opened up his (or someone else’s) chequebook.  It is always the case that debt obligations are just that, obligations.

Money apparently does not grow on trees.

<h2>What does this all mean?</h2>

What no one can predict with accuracy is how long these ‘interesting ‘times will stay. 
The way in which you choose to react will be the litmus test.

When the cloud passes over and better times return we will all no doubt reflect on how we did react.  Whilst you are ‘ in the moment ‘, remember;

<ul>
<li>Markets will rise and fall.</li>
	<li>Good property is still good property and the same for bad property.</li>
	<li>Test your credit capacity if needed as the rules are changing.</li>
	<li>Trust good advice and good instincts, you can rely on both.</li>
</ul>
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Investing in Real Estate during an uncertain environment 

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<h2>OPINION:</h2>

In unprecedented times the <a href="https://str.com/data-insights-blog/coronavirus-hotel-industry-data-news">accommodation industry </a>faces a massive downward trend in occupancy and income, and like most businesses that are considered as “non essential”.  
However, tourism is a <a href="https://www.rba.gov.au/publications/bulletin/2011/dec/pdf/bu-1211-3.pdf">major contributor</a> to the Australian economy and now more importantly owners/operators and landlords must look ahead and how they position themselves when restrictions are lifted and holiday makers, business and leisure can recommence.

This is the opportunity to consider your developments and its best use, the location, demographic, brand proposition and structure. Does your hotel need to be rebranded, refurbished or needs to sell as a result of Covid19? Or does your development upon feasibility conduct support a new build of hotel accommodation which subsequently requires Hotel Operator Selection? If yes, is your answer then it is the best time now to determine and carry out the necessary steps. 

Hotel Operators are seeking sites and have the time now to use their resource to determine if their brand marries up with your asset. Typically this would involve a full comprehensive campaign with an appropriate consultant that would seek all operators nationally and internationally to express their interest. This is not limited to a <a href="/developments">new development</a> it may mean that your existing asset requires to be rebranded to get the best use and distribution which also involves refurbishment. 

Operators will work cohesively with the owner to ensure the brand is delivered aesthetically and within the DNA. Whilst this creates and leads into refurbishment now is the best time given that there is no concern of operating and disruption to the operations of the business.

I have also broken down into three structures that hotel assets are generally set up and also requires consideration on what suits you best as an owner and your own risk profile as each one does vary.

1. Hotel Management Agreement

This is the preferred model by most <a href="/news/hotels-hotels-hotels-why-so-many-new-hotels">Hotel</a> Operators, they manage the property on your behalf with agreed commercial terms that are negotiated through and prior to any commencement. 

Typically management agreements can be fixed for the first option of 15 years or 10 years with further options of 3 x 5 or 2 x 15 years or 3 x 10 year options.

The operator’s remuneration is by way of fees, generally made up of a guaranteed base amount, calculated as a percentage of revenue from the hotel business, and a performance incentive element paid if gross operating profit exceeds an agreed threshold.

The owner is still responsible for the working capital and delivery of the product of the agreed brand to its appropriate standard. Generally there are Furniture Fittings &amp; Equipment Reserve to ensure that the product doesn’t get diluted over time and can maintain its standards.

2. Lease

both the owner and the tenant like to see an extended lease and similarly to a Hotel Management Agreement and sometimes longer i.e. 40 years. Ideally no party would like to see a lease less than 25 years, and in my opinion when the lease reduces and gets to a 20 year term the best practice is to renovate your lease terms again. The length of your lease underpins the value of your business and vice versa for the landlord. 

3. Management Rights

This structure is normal practice in states such as QLD however we are increasingly seeing this structure come into new developments as developers are selling the management rights business off the plan. That being said it is best to seek appropriate advice if this is the best strategy and each state has different laws. Management Rights have two components, the exclusivity to operate a hotel letting business via short term serviced apartment or hotel rooms, and to conduct the caretaking. The other is associated real estate assets required to operate the business such as reception, office and or restaurant. 

However you look at it is in my opinion that as a hotel owner, developer or landlord if any of the above mentioned was earmarked, strategically planned for the future or was put on hold, maybe reconsider your options as much as accommodation is closed for business the behind the scenes are still very much open for business and the opportunity still presents itself to explore your options as its night an overnight result it takes time and planning.
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Concerned about your hotel development during COVID-19? A lesson from hotel broker Michelle Matthews

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<h2>OPINION:</h2>

Now more than ever we will evaluate what is really important to us. Amongst the chaos and <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">uncertainty</a>, how can we work towards a secure future?  What is the right secure future for us?

There is something very secure about a good old fashioned brick and mortar investment.  

During difficult times it is comforting to return to a <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">home you own</a>. A safe place where you can cultivate your lifestyle and personality in the way that you choose.  Hang those precious memories, paint or wallpaper the walls – or not, it doesn’t matter, you can create your own style, your own sanctuary, your own safe haven.  

Owning your own home fulfils fundamental needs as outlined in Maslow’s “<a href="https://www.thoughtco.com/maslows-hierarchy-of-needs-4582571">Hierarchy of Needs</a>” and for many, their home is a status symbol or a financial vehicle in which to grow wealth and success.

Driven by these fundamental human needs it is vital that we have a practical and financially viable plan to obtain these goals.

<h2>How do I know I’m making the right decision to go from renter to owner?</h2>

Research, then apply practical financially viable solutions. If you can afford to pay rent, chances are you can afford to pay a mortgage. Run the numbers. Get good financial advice, speak to a financial planner, an accountant, a bank manager and make a plan for the future.  Know what your <a href="http://How%20do%20I%20know%20I%E2%80%99m%20making%20the%20right%20decision%20to%20go%20from%20renter%20to%20owner?%20%20Research,%20then%20apply%20practical%20financially%20viable%20solutions.%20If%20you%20can%20afford%20to%20pay%20rent,%20chances%20are%20you%20can%20afford%20to%20pay%20a%20mortgage.%20Run%20the%20numbers.%20Get%20good%20financial%20advice,%20speak%20to%20a%20financial%20planner,%20an%20accountant,%20a%20bank%20manager%20and%20make%20a%20plan%20for%20the%20future.%20%20Know%20what%20your%20commitment%20will%20cost%20not%20just%20mortgage%20payments%20but%20include%20stamp%20duty,%20rates,%20insurance%20and%20body%20corporate%20fees.%20%20The%20Reserve%20Bank%20Australia%20(RBA)%20predicts%20a%20shortfall%20in%20housing%20(Financial%20Review,%202019).%20%20With%20record%20low%20interest%20rates,%20record%20first%20home%20buyers,%20population%20growth,%20high%20immigration*%20(COVID-19%20restrictions%20will%20not%20last%20forever)%20and%20increased%20renters%20the%20data%20indicates%20that%20if%20you%20have%20a%20secure%20income%20that%20you%20should%20consider%20the%20following%20tips%20and%20purchase%20once%20this%20immediate%20unsettling%20time%20has%20passed.%20Yes,%20we%20are%20experiencing%20a%20pandemic%20with%20a%20recession%20looming%20but%20our%20economy%20is%20cyclic.">commitment will cost</a> not just mortgage payments but include stamp duty, rates, insurance and <a href="/guides/how-much-can-i-expect-to-pay-for-owners-corporation-fees">body corporate fees</a>.

The Reserve Bank Australia (RBA) <a href="https://www.afr.com/policy/economy/rba-tips-housing-supply-shortfall-20191016-p531az">predicts a shortfall in housing</a> (Financial Review, 2019).  With record low-interest rates, record <a href="/guides/how-to-buy-a-house-in-2021-a-guide-for-first-time-home-buyers">first home buyers</a>, population growth, high immigration* (COVID-19 restrictions will not last forever) and increased renters the data indicates that if you have a secure income that you should consider the following tips and purchase once this immediate unsettling time has passed. Yes, we are experiencing a pandemic with a recession looming but our economy is cyclic.

<h2>Buying a medium to long term investment</h2>

Over the past 30 years, Australian housing prices have <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2015/sep/3">increased on average by 7.25 %</a> per year (RBA, 2015). Statistics historically tell us that provided you are buying a property as a medium or long term investment where you can choose your time to sell you will not lose.  If you are buying a short term prospect you need to do more to ensure a return on investment, such as the following;

* Australia’s population continues to grow and 231,937 people migrated from overseas in 2019 (Australian Bureau of Statistics, 2019).All these people need homes.

<h2>Buying like a pro</h2>

<ul>
<li>Negotiate.  </li>
	<li>Purchase below market value.</li>
	<li>Take advantage of stamp duty savings and other government grants.</li>
	<li>Build relationships with real estate agents and experts to find off-market opportunities and distressed sales. Consider if a buyers advocate would be beneficial in your situation.</li>
	<li>Ask for both a property and a council <a href="/guides/top-7-tips-on-how-to-value-a-house">valuation</a> and determine the price per square metre in that suburb for that type of property, for example, new or renovated apartment price per square metre or renovated or un-renovated house price or land value per square metre.</li>
	<li>If <a href="/guides/how-to-ensure-the-off-the-plan-investment-property-you%E2%80%99re-buying-is-of-high-quality">buying off the plan</a> or a new build ensure that you are purchasing a high-quality build from a reputable developer.</li>
</ul>
<h2>Do your research</h2>

<ul>
<li>Purchase through the lens of an investor, you must do this first and then you can allow yourself to fall in love with your purchase.  </li>
	<li>Purchase property where the price is likely to increase, for example, purchase in a <a href="/buildings/nbh-at-lachlan-s-line-25-27-epping-road-macquarie-park">rising suburb</a> or an upcoming lifestyle development.  </li>
	<li>Buy in an area that is about to be transformed due to new or special amenities such as a well-regarded school, a new tram line or other infrastructure upgrades.  </li>
	<li>If rental vacancies are low and neighbouring suburbs are already in demand these are good indicators.</li>
	<li>Research the specific market you are buying in, some suburbs have their own unique cycles or are seasonal.</li>
	<li>Research and obtain sold property prices through publications online.</li>
	<li>Research buyer needs. If you resell what will these buyers be looking for and therefore what will give you the best return on investment.</li>
</ul>
<h2>Buy something that you can capitally improve</h2>

<ul>
<li>If you can undertake a major renovation to maximise your return on investment, great, but you don’t have to undertake a full renovation. <a href="/expert-insights/buying/essential-household-items-for-your-new-apartment">Small cosmetic improvements</a> and styling can also yield great results.  There are plenty of television shows and publications on this topic alone #The Block.</li>
</ul>
<h2>Buy something that generates income to help pay the mortgage</h2>

<ul>
<li>Can you rent out a room to a friend, family member or colleague?  </li>
	<li>Does the property have a car space or garage you can rent out?  </li>
	<li>Can an inner city apartment be set up as an office to rent out during business hours while you are at work?</li>
	<li>Can you build a studio over the garage or a “granny flat” that can generate rental income?</li>
	<li>Speak to your financial adviser or accountant as there may also be tax benefits if you work from home and/or if your home is generating income.</li>
</ul>
<h2>Learn from the past</h2>

My Nanna provided me with many <a href="/guides">buying tips</a> before I even understood real estate.  “Buy close to the city or the water (in her case both), buy close to amenities, and buy the worst house on the best street”. That is what she did, then subdivided, renovated and bought and sold until she had enough equity to diversify and build a portfolio rather than always continue to sell. Nanna was an accountant and what we would now dub as environmentally conscious.  “Buy what you can afford, live within your means, replace only what you need and repair what you can”.  Boring? Maybe - but after living through World War II she had learnt to find happiness in life’s simple pleasures and did not seek constant and instant gratification. buyinIn many ways COVID-19 with its threat to our existence and wellbeing, with its restrictions and rations, we are now experiencing some of what our ancestors did during war times.

<h2>Commit to your future</h2>

If you can’t afford to buy where you want to live you can purchase an investment property and rent at the same time.  Eventually you will build enough equity to buy where you want to live. Just make a commitment to start somewhere.

Some renters don’t realise that once they put down a deposit that they could be paying the same amount in rent as what they could be paying in mortgage repayments and hence they can potentially be missing out on capital growth and other financial benefits. Ideally a 20% deposit to avoid mortgage insurance is optimal and understandably saving a 20% deposit for many people is a long daunting task but there are options and you should speak to your financial planner or finance broker. You may have to pay a little more on a mortgage as opposed to paying rent but a little short term sacrifice for long term gain will be worth it.  
That said, you must make sound financial decisions and have provisions if interest rates go up. You don’t want to be forced to sell in a downturned market.

Speak to your bank manager or financial advisor about different mortgage options such as variable and fixed rates. Despite COVID-19 we are blessed to be living in a country like Australia where there is <a href="https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/government-response-to-the-covid-19-outbreak">government support</a> during times of economic difficulty and banks can provide bank holidays for those mortgage payers during financial hardship.

We may be experiencing a pandemic with a recession looming, but our economy is cyclical. Run the numbers, seek financial advice but remember, over time the property market only goes in one direction and that is up.

We live in a world where we can easily access data and services so do your research and become financially savvy. COVID–19 may have given us the pause we need to evaluate what is important and forge a plan for the future. A plan that gets you on the property ladder and on your way to financial and emotional security in the form of a home, a safe haven and a financial vehicle in which to grow wealth and success for a secure future.

*Seek professional financial advice from a qualified advisor to determine what is right for your individual needs.

<h2>References</h2>

<a href="https://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/CA1999BAEAA1A86ACA25765100098A47">https://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/CA1999BAEAA1A86ACA25765100098A47</a>

<a href="https://www.afr.com/policy/economy/rba-tips-housing-supply-shortfall-20191016-p531az">https://www.afr.com/policy/economy/rba-tips-housing-supply-shortfall-20191016-p531az</a>

<a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2015/sep/3">https://www.rba.gov.au/publications/bulletin/2015/sep/3.html</a>

<a href="https://www.realestate.com.au/sold">https://www.realestate.com.au/sold</a>

<a href="https://www.thoughtco.com/maslows-hierarchy-of-needs-4582571">https://www.thoughtco.com/maslows-hierarchy-of-needs-4582571</a>

<a href="/guides/how-much-can-i-expect-to-pay-for-owners-corporation-fees">https://www.urban.com.au/guides/how-much-can-i-expect-to-pay-for-owners-corporation-fees</a>

<a href="/buildings/nbh-at-lachlan-s-line-25-27-epping-road-macquarie-park">https://www.urban.com.au/guides/9-ways-to-tell-if-you%E2%80%99re-buying-a-property-in-a-rising-suburb</a>

<a href="/guides/how-to-ensure-the-off-the-plan-investment-property-you%E2%80%99re-buying-is-of-high-quality">https://www.urban.com.au/guides/how-to-ensure-the-off-the-plan-investment-property-you%E2%80%99re-buying-is-of-high-quality</a>

Maslow, Abraham Harold. “A Theory of Human Motivation.” Psychological Review 50.4 (1943): 370-396.
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Your home is your safe haven: Could COVID-19 encourage more renters to purchase property?

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<h2>OPINION:</h2>

Home Loan market summary

In the last few years, we’ve seen a time of upheaval in the <a href="/guides/how-to-choose-the-right-home-loan">home loan market</a>.  From government clampdowns via APRA on Interest Only and Investor Lending in 2014, which resulted in interest rate differentials between investment loans compared to owner-occupied loans, and saw <a href="/guides/top-7-tips-on-how-to-value-a-house">property prices</a> drop around the country. These restrictions were then lifted during 2018 with the aim of stabilising these property price falls. Around the same time, from December 2017 and running for 14 months we had the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry which handed down its final report in February 2019. After this we had the inevitable fallout as non-acceptable culture and behaviour was exposed, and now just when things were looking to return to a more normal period, we have the unforeseen and <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">devastating Coronavirus</a> which is impacting us all worldwide. So, what to make of all this?  Changes in home loan requirements

An outcome of all the above has been a <a href="https://www.canstar.com.au/home-loans/expenses-cost-a-home-loan/">renewed focus on living expenses</a> as part of a Banks approach to home loan assessments, with them generally looking at an applicant’s Bank statement transactions over the three months prior to the application, in order to make an assessment of where spending has gone. Will spending factors during self-isolation affect our ability to secure a home loan?

The <a href="https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19">spending people</a> do now, in this period of Isolation, will have an effect on their standing as a home loan customer when this period of COVID-19 imposed restriction lifts. Being confined to home, it may be tempting to hit the internet, shopping from home using ZipPay, Afterpay, etc and ordering in food, all these debts that appear on your Bank Statements will be factored in when assessing a home loan application. Additionally, Banks are now starting to look for increased documentation, particularly for applicants that are employed in industries that have been significantly affected by restrictions, such as Tourism and travel-related services, Hospitality, Retail sales sector, and others. In the more extreme cases, income earned from applicants who are still employed in these industries is not even being considered by some Lenders.

As this period of <a href="https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/how-to-protect-yourself-and-others-from-coronavirus-covid-19/limits-on-public-gatherings-for-coronavirus-covid-19">social and trading restrictions</a> continue, then it is not unreasonable to expect more and more lenders to get tougher in their assessment criteria, all of which means it is going to get harder, particularly for some, to <a href="https://www.finder.com.au/home-loan-eligibility-calculator">qualify for a home loan</a>. While some people, not unexpectedly, might put their <a href="/guides/20-things-you-should-look-out-for-before-you-buy-property">property purchase</a> plans on hold for a period of time, there are still many people who already have home loans that are wanting to take advantage now of the historically low-interest rates, and even though they might still be employed, there is a chance they are going to find it harder to get a new home loan approved. No matter if you want to <a href="/guides/how-to-secure-a-mortgage-free-lifestyle-sooner">refinance</a>, or purchase a property, it really is a time to get back to basics, as much as possible during this trying period. Keep an eye on discretionary spending, take advantage of as much of the Government help that is available to you, and talk to your bank early if you do need to discuss what they have on offer in terms of home loan payment relief. 
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How our spending habits during self-isolation will influence our ability to secure a home loan

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The sidewalks of my suburb are narrow and hard to negotiate on any normal day, and today is not a normal day. There’s a couple with a pram walking towards me, presenting a potential hindrance to my 1.5m bubble. I take to the street. It’s not a main road but it’s a well-known thoroughfare and usually it is filled with cars carefully manoeuvring their way between oncoming traffic and parked cars. Usually. 

From this point in the middle of the road I can see right down the street to the intersecting perpendicular main roads at either end. I see people passing through the street at odd points and some such as me, are walking down the middle. There are no cars coming, none retreating. 

Did it take a <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market">global pandemic</a> to give the streets back to people? 

In a time when everything we do is now magnified, examined and in many cases banned. The simple acts of triumphant togetherness feel warm and fuzzy. Our streets are now mapped by teddy bears, waving from their postings in the windows of houses. They mark a new path through the streets for the littlest in our midst. Rainbow paintings accompany them, stuck to windows and fences and <a href="https://www.thecourier.com.au/story/6707866/rainbow-girl-adds-sunshine-to-lives/">colourful chalk motifs carve a joyful route</a> offering the passerby a game of hopscotch on their journey. 

The signage too is changing. There are messages hanging from balconies, wisdom wrapped around telephone poles and reminders to keep our distance are plastered to the walls. 

They shout words of encouragement from the surfaces of the public realm. 

“We got this"  
“Power to the people”  
“This too shall pass” 

A sense of camaraderie washes through the streets. The uniting togetherness of a common lived experience, one that we are desperate to permeate outside our private domains. The world is closed and yet, people are everywhere. In message or in person, the public realms are filled with encouragement.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/the_changing_face_of_our_streets2_0.jpg" rel="gallery-all" title="Pablo Neruda Poem on a vacant shop front. Image Credit: [Julia Frecker]"><img alt="" class="image-article-full-width-580px" height="491" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets2_0.jpg?itok=lm-RMgKk" title="Pablo Neruda Poem on a vacant shop front. Image Credit: [Julia Frecker]" width="580"></a>

<figcaption>Pablo Neruda Poem on a vacant shop front. Image Credit: [Julia Frecker]</figcaption></figure>An issue for Australians can be that, if you give us an inch, we’ll take a mile, and there have been concerns about the large rush of people striving to do outdoor activities in the light of the recent advice. However, as people try to handle the balance of <a href="/news/how-to-effectively-manage-a-remote-workplace-during-social-distancing">working from home</a>, staying sane and for many managing children as well, solace can be found in our government sanctioned ‘outside time.’

The uptake in outdoor exercise has been inconceivable. Local Council’s have been trying to prevent some scarcely populated parks from becoming rubbish dumping wastelands for years and now they are filled with people. People who are steadfastly running their personal bootcamp for one, utilising the street infrastructure and turning them into exercise implements. Cricket pitches have been set up in laneways, and basketball hoops have been affixed to garage doors. When everything is closing in around us, we are desperately clawing out saying “No, I will have a shred of autonomy!”  

Cities are a gift. In times like this they can be scary, teeming with people and risk. However, people are a gift and the uptake in neighbourly enterprise has been striking. They include letterbox drops to the elderly or next-door neighbours leaning on their mutual fence to have a yarn. It is noticeable when walking down the streets, more people are sitting on front balconies, terraces and lawns. They are looking for a person to lock eyes with, enjoying a break in the sun, on a Zoom call from their front gate or sharing a drink over the back fence.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/the_changing_face_of_our_streets3.jpg" rel="gallery-all" title="Shout Out Loud Print contributing to the community messaging. Image Credit: [Julia Frecker]"><img alt="" class="image-article-full-width-580px" height="435" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets3.jpg?itok=jpGP25Kz" title="Shout Out Loud Print contributing to the community messaging. Image Credit: [Julia Frecker]" width="580"></a>

<figcaption>Shout Out Loud Print contributing to the community messaging. Image Credit: [Julia Frecker]</figcaption></figure><a href="/new-apartments">Apartments</a>, who have been fighting against the new age problem of not knowing your neighbours, have fostered communities over balconies and courtyards. We have seen workout routines in Spain, singing and dancing from Bologna to Sydney all conducted on apartment balconies. Those balconies whilst initially designed for inward use, now represent a full external embrace of our neighbours. 

Our streets are becoming outward looking, despite us all being very much within. We are changing the public realm and our interfaces with it to suit the changing needs of the community.

Some of the changes, as driven by the people, are veering on tactical urbanism interventions.

<a href="https://www.citylab.com/design/2012/03/guide-tactical-urbanism/1387/">Tactical urbanism</a> involves small scale often interim improvements to the public realm through community initiative and can take many forms. 

While formal planning caters for the needs of the community, it is hard to predict the specific needs, particularly when the parameters of the area changes. This is pertinent now in the way that the cities are changing in reaction to the changing social climate.

Tactical urbanism can be in the form of physical changes to a place including small ameliorations to space that help with <a href="http://tacticalurbanismguide.com/">transformation and engagement</a>. In the past many tactical urbanism techniques involve not socially distanced choices, such as <a href="https://globaldesigningcities.org/2018/04/18/from-pop-up-to-permanent-five-lessons-in-tactical-urbanism/">pop-up bars and markets</a>. However, tactical urbanism can also be reflected in the way we use space in the public realm, and one of the hallmarks is the reclamation of streets for community use. Cornerstones of tactical urbanism practices are now showing up in formal planning with the improvement of the public realm and walkable streets. 

In our car dominated world, the roads are run by the automobiles and pedestrians are relegated to the thin sidewalks. However, the creeping of pedestrians to the street in this current pandemic is indicative of a new way to use space and <a href="https://thespinoff.co.nz/society/16-04-2020/enjoying-the-people-friendly-streets-of-lockdown-lets-make-them-permanent/">reclaim our streets back from the cars</a>.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/the_changing_face_of_our_streets4.jpg" rel="gallery-all" title="Interim bike lane Berlin. Image Credit: [Paul Zinken]"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets4.jpg?itok=14sCC1R6" title="Interim bike lane Berlin. Image Credit: [Paul Zinken]" width="580"></a>

<figcaption>Interim bike lane Berlin. Image Credit: [Paul Zinken]</figcaption></figure>Around the world bikes and pedestrians are being prioritised with temporary street reclamation to provide more room for social distancing. From <a href="https://www.independent.co.uk/news/world/europe/germany-coronavirus-road-space-cycle-lanes-berlin-a9462771">Berlin</a> to <a href="https://www.smartcitiesworld.net/news/news/bogota-expands-bike-lanes-overnight-to-curb-coronavirus-spread-5127">Bogota</a> and beyond, the simple use of traffic cones or a bucket of paint has transformed streets to emergency bike lanes and given more agency to bikes to help essential workers travel to work without having to rely on the transit system. 

In New Zealand, widened sidewalks and temporary bike lanes initiated by residents have now been taken up by the <a href="https://www.forbes.com/sites/carltonreid/2020/04/13/new-zealand-first-country-to-fund-pop-up-bike-lanes-widened-sidewalks-during-lockdown/#e0a178e546e1">government and funded</a>. Epitomizing a true success story with a tactical endeavour that has been formally established. In New York, the city is temporarily <a href="https://www.nytimes.com/2020/04/11/us/coronavirus-street-closures">shutting down some streets to cars</a> to give the 1000’s stuck in their apartment buildings more room on the sidewalks to move around.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/the_changing_face_of_our_streets5.jpg" rel="gallery-all" title="Park Avenue, New York temporarily shut down to provide residents with more space. Image Credit: [Carlo Allegri/Reuters]"><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/the_changing_face_of_our_streets5.jpg?itok=8fr8AIVT" title="Park Avenue, New York temporarily shut down to provide residents with more space. Image Credit: [Carlo Allegri/Reuters]" width="580"></a>

<figcaption>Park Avenue, New York temporarily shut down to provide residents with more space. Image Credit: [Carlo Allegri/Reuters]</figcaption></figure>Positive changes, although not permanent, mark how the streets can be changed to reflect the changing state of the city, and how the community can be the first to generate such a change.  
We cannot settle on the good, without acknowledging the immense distress and sadness involved with this crisis, but positive changes to the city are good in spite of this. There will no doubt be lasting impacts to our psyche, our <a href="/news/covid-19-how-the-world-previously-recovered-from-sars-and-whether-or-not-we-can-do-the-same-this-time-round">economy</a> and our interactions with other people from this time. However, cities will be given a unique opportunity for regeneration and with the interim practices in mind, <a href="/expert-insights/buying/post-covid-19-we-need-to-bend-the-rules-and-create-new-deals-for-small-businesses">create better cities in the efforts of rebuilding</a>.

Change has been forced upon us in a rapid and scary way but it indicates that we as a world are pliable and capable of change. While scary and devastating things are happening, we choose to change the streets that we love. We choose to reflect ourselves in them when everyone out there needs another reminder that they are not in it alone.
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OPINION: The Changing Face of Our Streets

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Introduction

The new <a href="/guides/how-to-make-strata-fees-work-in-your-favour">strata</a> laws which commenced on 30 November 2016 introduced laws concerning strata renewal. Those laws enable a developer to acquire or redevelop a strata scheme with the agreement of at least 75% of the owners and the approval of a court order. Those laws were novel in Australia and attracted much media attention. But up until recently no one had succeeded in using the strata renewal laws to acquire a strata scheme without the agreement of all of the owners. On 8 August 2019, the Land and Environment Court approved the first collective sale of a strata scheme under the strata renewal laws. In this article we discuss the key points to take away from the case.

Seasons Harbour Plaza Case

The case involved a serviced apartment strata scheme at 252-258 Sussex Street, <a href="/developments/sydney-nsw">Sydney</a>. The scheme contains a 25-level building with 119 serviced apartments, a café, hotel reception and a lobby, office, gym and basement carapaces. The apartments in the building are mainly leased to Seasons Harbour Plaza Pty Ltd which runs a serviced apartment business for all but one of the apartments in the building. The building is zoned “B8 Metropolitan Centre” under the Sydney Local Environmental Plan 2012. The owners of the apartments in the building are investors. Many of them do not reside in Australia.

The Collective Sale Arrangement

The owners corporation of the site elected a strata renewal committee to pursue a collective sale. The strata renewal committee appointed Colliers International as the sales agent for the collective sale of the site. Colliers conducted 4 rounds of expressions of interest to arrive at a final bidder for the site. The expressions of interest campaign resulted in bids from 16 bidders that ranged from $50 million upwards. The final sale price for the site was $81.1 million. That price was agreed in November 2017.

It was a record price. The court was satisfied that there was no pre-existing relationship between the owners of the site and the purchaser and that an arm’s length, competitive expressions of interest campaign had enabled the strata renewal plan for the site to be prepared in good faith. The court had to be satisfied that the strata renewal plan had been prepared in good faith in order to approve it.

 The Required Steps

The court also had to be satisfied that all the required steps for a collective sale under the strata renewal laws had been completed before it was able to approve the strata renewal plan. The court identified at least 9 steps which needed to be completed. Those steps commenced with the preparation and submission to the strata committee of a <a href="https://www.fairtrading.nsw.gov.au/housing-and-property/strata-and-community-living/strata-schemes/frequently-asked-questions-strata-schemes">strata renewal proposal</a>. The strata committee was then required to (and did) consider that proposal and refer the proposal to a general meeting for further considerations. At that general meeting, the owners were supportive of the proposal and formed a strata renewal committee. Written notice of that decision had to be (and was) given to all owners within 14 days. The strata renewal committee then prepared a strata renewal plan. The requirements of that plan are set out in strata renewal laws and are very prescriptive and include the preparation of valuations on 2 bases – valuations of the individual lots within the site and a valuation of the whole building and the site. After the strata renewal plan was prepared, the plan was considered and approved at a general meeting of the owners corporation by special resolution. The owners corporation decided to (and did) give the strata renewal plan to owners within 14 days of that decision.

At least 75% of the owners of the lots (excluding utility lots) had to support the <a href="https://www.registrargeneral.nsw.gov.au/property-and-conveyancing/strata-schemes/renewal-process">strata renewal plan</a>. Those owners had to (and did) provide written support notices consenting to the strata renewal plan within a certain period. The owners corporation was then required to (and did) hold a general meeting to pass a resolution to apply to the Land and Environment Court to have the strata renewal plan approved. The owners corporation then filed its application with the court. Ultimately, the court was satisfied that the owners corporation had completed each of the steps set out in the strata renewal laws.

Distribution of the Sale Proceeds

The strata renewal laws require the proceeds of any collective sale to be distributed among the owners in shares proportional to the unit entitlements of their lots. However, those laws also require each owner to receive an amount from the sale proceeds that is equal to or better than the compensation value of their lot as if the lot was compulsorily acquired by a Government authority. The valuation reports obtained by the strata renewal committee recognised that there was a disparity in values across the lots because, for example, the commercial lots had a higher relative value than the serviced apartments.

This would have resulted in the proposed distribution of the sale proceeds for some of the lots being less than the compensation value of those lots which the strata renewal laws require each owner to receive. In other words, the court recognised the tension in the strata renewal laws between the requirement (on the one hand) for the sale proceeds to be distributed among the owners in the same proportions as their unit entitlements and (on the other hand) for the distribution of the sale proceeds to each lot not to be less than the compensation value of the lot based on compulsory acquisition legislation.

The court resolved that tension by concluding that it could reallocate the unit entitlements in any manner it deemed fit if it considered that it was appropriate or necessary to do so in the circumstances to facilitate the approval of the strata renewal plan. This resulted in a small portion of the unit entitlements of each serviced apartment and car parking lot being reallocated to 5 commercial lots so that the owners of those commercial lots received an appropriate amount of compensation by way of disbursement of sale proceeds to them in compliance with the strata renewal laws.

Leases

There were a number of leases registered over the lots in the building. The strata renewal plan provided for the collective sale of all the lots in the building subject to those leases. The court concluded that where a strata renewal plan provides for a sale of a strata building with vacant possession any leases in the building will be terminated if the court approves the strata renewal plans. However where, as was the case here, vacant position is not required, the approval of a strata renewal plan by the court does not terminate any leases.

Contracts for Sale

The strata renewal plan that was approved by the court provided for the lots to be sold by way of a contract for sale in the standard form copyrighted by the Law Society of <a href="/new-apartments/nsw">NSW</a> and the Real Estate Institute of NSW with special conditions. The strata renewal plan proposed that contracts for sale would be exchanged within 5 business days of the court approving the strata renewal plan. The court saw nothing wrong with that arrangement and observed that the court’s order approving the strata renewal plan would be binding on the owners corporation, all of the owners and mortgagees and the purchaser under the strata renewal plan, City Hotel Enterprises Pty Ltd.

The Court’s Orders

The court made orders approving the strata renewal plan for the collective sale of all of the lots in the building. Those orders required each of the owners and the purchaser to exchange a contract for the sale of their lot within 5 business days of being served with a copy of the court’s orders. Those contracts provided for a 90-day settlement period. The court also reallocated the unit entitlements of the lots to ensure that the sale proceeds were distributed fairly among the owners. The court directed that the funds held in the administrative fund of the owners corporation be distributed to the owners in shares proportionate to their unit entitlements within 14 days of the termination of the strata scheme.

Conclusion

The Seasons Harbour Plaza case is the first time the Land and Environment court has approved a strata renewal plan for the collective sale of a strata building. The case highlights the care which must be taken to ensure that each of the steps set out in the strata legislation in relation to a strata renewal are completed correctly. The case also highlighted some of the problems in the strata renewal laws, particularly the provisions dealing with the distribution of sale proceeds among owners, and how the court intends to overcome those problems. The case will provide useful guidance for developers and owners corporations in relation to the strata renewal laws.
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First Collective Sale Approved by the Land and Environment Court

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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[smartcode_project_cta:default project_id=152737]

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Melvie

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