<html><body>
Listed real estate services provider McGrath has downgraded FY16 forecasts due to weaker than expected market conditions and said EBITDA figures will be $4 to 5 million lower than the prospectus forecast.
Lower than expected listings and sales volumes in the first half of April drove the weaker forecast, along with listings in the newly-acquired Smollen Group which are now expected to be 25-30 percent lower in Q42016 than previously forecast, according to Bell Potter.
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.25%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.25%20PM.png" alt="">
The latest Bell Potter report on McGrath said the downgrade is disappointing given the company was tracking to budget for the first 9 months of FY16 and more so given it was largely attributed to the recently acquired Smollen Group.
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.33%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.33%20PM.png" alt="" width="624" height="227">
 
The Bell Potter report stated they have downgraded EPS forecasts in FY16, FY17 and FY18 by 15 percent, 25 percent and 24 percent respectively, with the revised FY16 EBITDA forecast of $26.5m within the guidance range of $26-27m.
"The majority of the downgrades have been in the company owned sales division, with reductions in sales per agent and EBITDA margin reflecting the tougher market conditions experienced in Q4 which are likely to extend into FY17 and FY18," it said.
"Given the severity of the 4Q slowdown our earnings downgrades are higher in FY17 and FY18. We now expect FY16 revenue of $137m compared to the revised guidance range of $136-140m, and EBITDA of $26.5m compare to revised guidance of $26-27m."
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.35.12%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.35.12%20PM.png" alt="">
</body></html>

mick.cee-iDmgDDAmu8

McGrath downgrades FY16 forecasts: Bell Potter

<html><body>
Foreign investors have been driving the industrial property market in Sydney over the 12 months to March 2016, accounting for 46 percent of industrial stock sales according to Savills.
The total dollar value of these transactions came exceeds $865 million, according to the April industrial briefing from Savills.
According to the report, foreign investors are looking for industrial property due to the typically high yielding and generally long lease expiry profiles attributed to these assets.
"The fourth quarter of 2015 saw Singaporean giant M&amp;G Investments, increase its Australian real estate exposure, paying $79.75 million in November for two Sydney industrial properties, in Ingleburn and Erskine Park," the report said. 
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%202.13.18%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%202.13.18%20PM.png" alt="">
</body></html>

Foreign investors driving Sydney industrial market: Savills

<html><body>
Residential vacancy rates for Sydney are staying at 1.7 percent, according to the REINSW, with vacancy rates for Inner Sydney staying unchanged at 1.3 percent through March.
REINSW's Vacancy Rate Survey found Middle Sydney was at up 0.3 percent to 1.9 percent, while Outer Sydney was down 0.3 percent at 1.8 percent. 
REINSW President John Cunningham said the last time Inner Sydney had a vacancy rate of 1.3 per cent was March 2014 and the market is tight and is expected to remain tight for some time. 
“Rises in Middle Sydney and falls in Outer Sydney balanced out to see the vacancy rates for Sydney steady overall,” Mr Cunningham said.
Vacancy rates slid 0.3 percent at 2.6 percent in the Hunter region. In the Illawarra vacancy rates were up 0.1 per cent at 1.3 per cent. Wollongong slipped 0.2 per cent to 1.0 per cent. Albury fell 0.1 percent at 3.6 percent, New England rose 0.8 per ent at 3.6 percent and Orana dropped 0.4 percent to 3.3 percent. Coffs Harbour fell 0.8 percent to 1.5 percent and Northern Rivers rose 0.1 percent at 1.5 percent. 
</body></html>

Sydney vacancy rates remain stable: REINSW

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
Australia's rebalancing act is well underway. Following the end of the mining boom, low interest rates and the lower AUD have supported a housing boom and, more recently, a strong pick-up in exports of tourism and education services. But challenges remain. 
The housing boom is now cooling. Housing prices have levelled out over the past six months and building approvals have fallen over the past year. The end of the housing boom is set to weigh on growth, while the lift in housing debt, due to the boom, may increase the risks to financial stability, particularly as there has been a significant boost to housing supply. 
We remain cautiously optimistic that the housing market will see a soft landing and that the lift in services exports will continue to create jobs, but there are risks around this central scenario. 
Australia's mining investment boom peaked in 2012 and, since then, growth has needed to rebalance to being driven by something else. As regular readers will know, we have long been optimistic that this would occur. 
The first stage of this process has been a housing price and construction boom. This has mostly been a positive story. By building more housing we have been working off an accumulated under supply of housing (Australia did not build many houses during the mining boom, which helped to keep wages and inflation contained during that episode). 
But, as with all housing booms, they cannot continue indefinitely. If housing prices and construction continued to rise rapidly, there would eventually be a housing oversupply or a price bubble. There are now clear signs that Australia's housing market is cooling. Housing prices have tracked sideways since about October 2015, following previous double-digit growth. Sydney and Melbourne, where the housing boom has been centred, have seen flat housing prices in the past six months, following annual averages of 10 percent and 6 percent in the previous four years. The cooling has been driven by a collection of factors, including tighter prudential settings and the ramp up in new housing supply (which is meeting demand). 
Our central case is for a soft landing. We see housing prices rising by 3-4 percent in 2016, following growth of 9 percent in 2015 (see 'Downunder Digest: Australia's housing market cools', 11 December 2015). Housing construction is also expected to slow. Following a 0.5ppt contribution to GDP growth in 2015, housing construction is set to contribute about 0.2ppts to GDP growth in 2016 and to be a small drag on growth by 2017. 
However, for the overall economy we expect this drag from housing construction to be offset by two key factors. First, services exports have been ramping up and we expect these to continue to contribute around 0.5ppts to GDP growth (see 'Downunder Digest: Services exports and the AUD', 30 March 2016). Second, mining investment is set to be less of a drag on GDP growth in 2017, as the mining downturn matures. All up, we see the end of the housing boom as manageable, as the next stage of the rebalancing act sees growth transitioning to being led by the services sectors. 
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
But this is the central case and there are clearly some risks to the 'housing soft landing' central scenario. Here we focus on three. First, stoking a housing boom has driven housing prices higher and led to an increase in the household debt to income ratio from 167 percent to 186 percent over the past four years. Higher debts may have increased the risks to financial stability. 
Second, there has also been a substantial ramp up in housing construction, particularly on apartments in the major cities, and there is a risk of over-supply in some of these markets. Third, and importantly, our central case assumes continued household income growth, supported by job creation in the services sectors, which helps to make the higher debts sustainable. A negative shock to income growth, most likely emanating from overseas, is a risk to the central scenario. 
For each of the risks, there are also a number of mitigating factors. On the first risk, of higher housing prices and debts, our view remains that it is the allocation of debt that matters, not the absolute levels (see 'Downunder Digest: Australia's household debt: why we are not worried', 21 November 2013). As long as the households that have taken on the debt can continue to service it, the debt is sustainable. In Australia's case, we believe the debt is fairly well allocated. In Australia there are no sub-prime loans, all loans are full-recourse, lending standards have been tightening recently, the bulk of the debt is held by higher income households and the average mortgage is over two years pre-paid, leaving many households with significant equity to withdraw if required. 
On the second risk, of housing oversupply, our estimates show that this is not the national story, even though there are some clear pockets of over-building (see 'Downunder Digest: Australia's housing supply ramp up', 9 September 2015). 
In Sydney, where housing prices have risen by the most, our estimates suggest that there is still undersupply, which is likely to keep prices from falling.
 In Melbourne, the apartment market appears oversupplied, but the detached housing market does not. For apartments, some have also been bought by foreign buyers with the likely intention to hold for a long period, as a store of value, rather than for speculation. In Perth and Brisbane there are some signs of oversupply of apartments, but not of detached dwellings. Neither of these markets has seen much housing price appreciation in recent years, potentially limiting the downside. 
The third risk, of a fall in household incomes, is the hardest to guard against. Here, Australia fares comparatively well, but is not in as good shape as it was when the global financial crisis struck in 2008. The RBA still has a cash rate at 2.00 percent, which gives it room to cut further and government net debt is low, at 18 percent of GDP, giving the fiscal authorities more room to move than other countries. However, by comparison, the cash rate was 7.25 percent in mid-2008 and the government had a net asset position of 4 percent of GDP. 
Finally, it is worth considering the appropriate policy response to these risks. In terms of financial stability, the prudential regulator is continuing to tighten standards to making the banking system 'unquestionably strong'. This has included raising bank capital requirements. This should help to further protect Australia's financial system. 
In terms of protecting against weaker demand, the central bank could still cut its cash rate further (our central case is for a cut in Q2, partly to ensure the AUD remain competitive). A lower AUD (rather than one that is rising, as it has been recently), would also be helpful, as it would help to improve competitiveness and support jobs growth in the export industries. 
Fiscal authorities could also help to support growth by further reform to support productivity growth and well-planned infrastructure investment, which would support demand and also improve productivity. We remain optimistic about Australia's growth outlook, but, as always, there remain risks to the central view. 
</div>
</div>
</div>
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
</div>
</div>
</div>
</div></body></html>

Navigating the end of the housing boom: HSBC's Paul Bloxham

<html><body>
Unit rents increased at record levels over the March quarter for the majority of capital cities despite a national apartment building boom, according to the March Quarter Rental Report from Domain.com.au.
The report found unit rents increased in Sydney, Melbourne, Brisbane, Hobart and Canberra over the March quarter, staying at record levels despite the recent unit building boom, while house rental vacancies remain low in most capitals.
Capital city vacancy rates were steady at 2.1 percent for houses but fell slightly for units to 2.3 percent, with overall dwelling vacancies remaining at 2.2 percent.
<a href="/images/2016/04/7/Screen%20Shot%202016-04-07%20at%2011.21.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/7/Screen%20Shot%202016-04-07%20at%2011.21.30%20AM.png" alt="">
Domain.com.au senior economist Dr. Andrew Wilson said despite the recent influx of home building, we can expect to see upward pressure on both house and unit rents in most capital cities continuing in the foreseeable future.
"The clear exceptions to tight capital city rental markets are Perth and Darwin. Rents in these cities continue to fall reflecting the impact of the downturn in the resource economy and the end of the significant rental demand driven by a fly-in fly-out workforce," he said.
"Sydney median unit rents increasing sharply over the March quarter.
“Despite the significant numbers of new apartments entering the market, Sydney unit rents bounced back this quarter with a sharp 4 per cent increase in the median weekly rental. This increase offers no relief for tenants with house rents remaining at record highs and already low vacancy rates continuing to tighten. The median unit rent was recorded at $520 per week, closing in on the $530 median weekly rent for houses. Sydney unit rents have now increased by 4 percent over the past year – second to Melbourne for annual growth. 
The report found Melbourne house rents came in at $400 per week, up 2.6 percent over the year and unit vacancy rates falling despite the recent surge in new supply.
"It has been a positive quarter for investors in Melbourne with unit rents now rising to record levels and vacancy rates falling, despite an unprecedented new apartment boom. Melbourne house rents remain at peak values as well, with low vacancy rates indicating no relief in sight for tenants," he said.
“Brisbane tenants in units and houses have experienced rising rents, with both at record highs. Vacancy rates do remain reasonably balanced, however, with some slight tightening for units in the March quarter."
Gross rental yields for investors held over the March quarter, with Hobart having highest gross returns for houses at 5.6 percent and rising. Sydney had 3.3 per cent.
<a href="/images/2016/04/7/Screen%20Shot%202016-04-07%20at%2011.21.45%20AM.png" target="_blank" style="line-height: 1.3em;">Click to enlarge</a>
<img src="/images/2016/04/7/Screen%20Shot%202016-04-07%20at%2011.21.45%20AM.png" alt="">
 
 
</body></html>

Rents continue to rise despite national building boom: Domain

<html><body>
GUEST OBSERVER
The RBA held its cash rate steady at 2.00 percent, as expected, and maintained an easing bias. The biggest change to the post-meeting statement was an added paragraph noting concerns about the recent appreciation of the AUD.
The RBA stated that 'under present circumstances, an appreciating currency could complicate the adjustment under way in the economy'.
It is clear that the RBA believe that a rising currency is unhelpful, as it could slow the pace of rebalancing, particularly towards the tourism and education sectors, which are exchange-rate sensitive. We stick by our view that a further cash rate cut will be needed. On timing, our central case is for a cut before end-Q2, but we see this as 50:50, given the upcoming budget timing and the possibility of an early election.
Facts
- The cash rate was held steady today at 2.00 percent, as expected (all 26 economists in the Bloomberg survey expected a hold decision).The market was pricing a 5 percent chance of a cut just prior to the announcement.
Implications
Today's post-meeting statement appears to have shifted the RBA back into AUD 'jawboning' mode. Although the statement made no reference to an appropriate level for the currency, it relayed the RBA's concern about the recent rise in the currency.
Whereas the previous statement had noted that 'the exchange rate had been adjusting to the evolving economic outlook', today the RBA said that, although the appreciation 'in part, reflects some increase in commodity prices, monetary developments elsewhere in the world have also played a role'.
The first point of interest is that the RBA acknowledges that the rise in the currency is not just in line with commodity prices. The second point is the reference to monetary developments elsewhere in the world, which suggests that the RBA may be becoming increasingly concerned about the dovish stance of the Federal Reserve and of the negative rate settings in Europe and Japan.
The challenge for the RBA remains that global inflation and interest rates are low, which is putting upward pressure on the AUD at a time when Australia needs a more competitive currency to assist with rebalancing growth at the end of the mining boom. As they noted today, 'under present circumstances, an appreciating currency could complicate the adjustment under way in the economy'.
Their use of the words 'under present circumstances', implies that the currency is an increasingly important driver of growth as Australia's economy shifts to being more driven by services exports, such as tourism and education exports.
Although the RBA has considerable reluctance about the idea of cutting its cash rate further, it may yet have to cut, in order to keep the currency competitive.
 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
</body></html>

RBA jawboning the AUD, again: HSBC's Paul Bloxham

<html><body>
The top sale of the week was a five bedroom beachside home at Bronte in Sydney's Eastern Suburbs, according to CoreLogic RP Data. 
The property, 1 Bronte Marine Drive, Bronte (above) sold for $8.5 million through Laing + Simmons  Double Bay 
Top ten sales
1 Bronte Marine Drive, Bronte, NSW  5 bed, 4 bath, 2 car house  $8,500,000  Laing + Simmons  Double Bay 
6 March Street, Bellevue Hill, NSW  4 bed, 1 bath, 2 car house  $5,265,000  Sotheby’s International Realty  Sydney 
602/14 Macleay Street,  Elizabeth Bay, NSW  3 bed, 2 bath, 2 car unit  $4,900,000 Richardson &amp; Wrench Elizabeth Bay/Potts Point 
22b Haughton Street,  Linley Point, NSW  4 bed, 3 bath, 2 car house  $4,350,000  John Ward Realty  Hunters Hill 
44 Wallis Parade,  North Bondi, NSW  4 bed, 2 bath, 4 car house  $4,275,000  Express Realty/  Raine &amp; Horne 
8 Kirkoswald Avenue,  Mosman, NSW  4 bed, 2 bath, 1 car house  $3,920,000  David Murphy  Real Estate 
53a Carlotta Road,  Double Bay, NSW  6 bed, 4 bath, 2 car house  $3,875,000  McGrath Estate Agents 
24 Northland Road,  Bellevue Hill, NSW  4 bed, 2 bath, 2 car house  $3,675,000  Goodyer Real Estate 
2/16 Thornton Street,  Darling Point, NSW  4 bed, 3 bath, 3 car house  $3,500,000  Sotheby’s International Realty Sydney 
10 Ocean Grove,  Collaroy, NSW  5 bed, 3 bath, 2 car house  $3,375,000  First National Caputo  Dee Why
</body></html>

Bronte beach pad leads CoreLogic RP Data's top ten sales

<html><body>
The majority of shopping centre managers polled for a recent survey expect turnover growth for the year ahead, with traditional bricks and mortar retail outlets, online sales and the economy as possible hinderances to future growth.
Some 55 percent of respondents to JLL’s Retail Centre Managers' Survey for February expect turnover growth in the year ahead, up from 51 percent in the previous survey six months ago, concerns remained from shopping centre managers about the economy.
JLL’s Australia head of property &amp; asset management Richard Fennell said the big change since the August 2015 Survey was the impact of fuel prices.  
"Fuel prices are at or near seven year lows, meaning the average motorist is spending significantly less on fuel and this could translate to more disposable income for other items such as retail goods and services," he said.
“However the volatility in the share market and low commodity prices are still cause for concern.
“Centre Managers continue to show concern with the economic outlook, with a net balance of -20 highlighting this as a factor that could impact turnover in 2016.  Although this has somewhat diminished since the last survey in August last year where the net balance was -33.
“The most positive factors for turnover outlook highlighted by Centre Mangers in the February survey continue to be issues that are specific to particular centres, such as changes to tenancy profile, growth expectations within the trade area and planned refurbishment activity,” said Mr Fennell.
<a href="/images/2016/03/29/Screen%20Shot%202016-03-29%20at%202.37.32%20PM.png" target="_blank">Click to enlarge</a> <img src="/images/2016/03/29/Screen%20Shot%202016-03-29%20at%202.37.32%20PM.png" alt=""> 
JLL Strategic Consulting director, David Snoswell said mproved speciality rental growth in both neighbourhood and sub-regional centres was a highlight in the second half of 2015 across the JLL-managed portfolio of retail centres nationally, with rents in neighbourhood shopping centres increasing by 4.2 percent in 2015 while Sub-Regional centre rents grew by 3.1 percent.
“Vacancies in Neighbourhood centre improved marginally from 3.9 percent in June 2015 to 3.7 percent in December 2015.  This continues the long-term improvement in neighbourhood centre vacancies. The vacancy rate has trended down over the last 2.5 years from 5.8 percent in June 2013.
“Tenant enquiry remains positive, but only just. The last four JLL surveys have reported positive tenant enquiry levels, although respondents have become less positive over the last 12 months. By far the most common response in the February survey was ‘no change’ to the level of tenant enquiry, with 63 percent of respondents not seeing a definitive change either way in tenant interest."
</body></html>

Shopping centre managers expect turnover growth for the year ahead

<html><body>
GUEST OBSERVER
Proposals by the NSW Government to reopen Parramatta Gaol will stop the exciting urban renewal proposals for North Parramatta. 
The NSW Government seems to now have two contradictory approaches for the renewal of North Parramatta.
On one hand UrbanGrowth NSW proposes new residential towers around the old gaol and the proposed light rail will connect the precinct while on the other hand the government proposes to reopen the gaol which does not send a welcoming signal to incoming residents.
The NSW Government has given a positive focus to Parramatta as the second CBD for Sydney which is reflected in strategic planning and the announcement of the proposed light rail. This has led to strong market interest in developing residential and commercial buildings in the city centre and in the North Parramatta campus.
Their proposal to relocate the Power House museum to Parramatta adds to the build-up in confidence that the city is becoming a very desirable place to live and work in.
The confidence that is growing about Parramatta’s maturity as a cosmopolitan centre could be set back by the reopening of a gaol on the city’s doorstep. The reopening would certainly be a setback for the government’s recently announced plans to provide much needed housing on the land adjacent to the old gaol. The proposed urban renewal will reinforce the connection to jobs in the Westmead Medical Precinct and have all of this connected by light rail.
There must be other options for a new gaol that does not disrupt the exciting urban renewal of Parramatta and its surroundings.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
</body></html>

Reopening Parramatta Gaol will stop the renewal of North Parramatta: Chris Johnson

<html><body>
Homes in the Sydney suburbs of Hunters Hill, Canada Bay and Ku-ring-gai are the top council areas with the most valuable real estate assets, according to a new report by Aussie Home Loans and CoreLogic RP Data.
The report found homes in Hunters Hill have an average equity level of 72.3 percent or $878,481, then Canada Bay at 70.2 percent and Ku-ring-gai with 69.2 percent.
Mortgaged homes across NSW have an average of 56.6 percent equity or $358,763.
Aussie executive chairman John Symond said the data confirms that NSW property has been a great wealth creator for owners, compared with other asset classes and property in other states across Australia.
“I believe the best investment both for security and lifestyle is still real estate and I see no reason why this will change over the next decade, especially in view of the lower interest rate climate, lack of housing supply and continuing population growth”, said.
"Fast growing Sydney council areas dominate the survey as property prices have risen at a compounding rate of 8.3 per cent over the last 20 years. 
<a href="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%204.47.59%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%204.47.59%20PM.png" alt="">
Councils in the Upper Hunter Valley had the lowest average home equity within New South Wales, especially Muswellbrook and Singleton.
CoreLogic RP Data research director Tim Lawless said Sydney is leading the state in home values as the population grows in the city, while many regional centres are facing neutral or falling population levels.
“The figures show that areas close to Sydney’s CBD have generally performed better as the population becomes more compressed with more medium to high density dwellings”, he said.
Average level of home equity – state by state percentages and dollar values
<a href="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%204.45.19%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%204.45.19%20PM.png" alt="">
Download the free <a href="https://www.aussie.com.au/home-loans/property-reports/home-equity" target="_blank">Aussie/CoreLogic Housing Equity Report here</a> or visit aussie.com.au. 
</body></html>

Sydney's Hunter's Hill, Canada Bay lead councils with most valuable real estate

Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

&nbsp;

Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Michael Crawford

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News