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We are driving less. Our per capita travel by private vehicle has been dropping over the last ten years.  
For mine, the cost of petrol is an obvious reason, though I think technology has something to do with it too, what with the dramatic impact it has on our ability to stay put while connecting (well, if you want to call it that) with just about anyone, anywhere, anytime – without even having to sit upright.  
But what’s on the mind of many of us actually driving is traffic congestion.  
Alleviating congestion has become a focus of city planners, but how congested, really, are our cities? Some science behind the whinge might help matters.  It usually does.  
And to the rescue comes the Dutch manufacturer of automotive navigation systems, TomTom (without the Lone Ranger), which has undertaken extensive studies on congestion levels in urban areas around the globe and has come up with the TomTom Congestion Index on traffic movement by location, time and day.  
Here are a few pertinent stats for Australia and New Zealand (yes they do have traffic there too!) and if you want to download the complete study, you can <a target="_blank" href="https://www.tomtom.com/congestionindex">go here</a>.  
Most congested cities – Sydney and Perth.  
Least congested cities – Brisbane (hard to believe hey!) and Canberra.  
Congestion levels – Sydney’s overall score is 33%, the same as Los Angeles – the most congested city in the United States – and far less than the most congested city in Europe – Moscow 66%.  
Perth gets 30%; Melbourne and Adelaide 28%; Brisbane 25% and Canberra 18%.  This compares to Auckland and Christchurch 28% and Wellington 24%.  
Congestion here is measured 24/7 and not just during peak hours.  
Morning peak hour – Sydney wins most congested and rises to 70% which even exceeds LA’s 56% (we feel your pain, Sydney); Melbourne moves into second place (56%); followed by Perth (55%); Adelaide (50%); Brisbane (45%; and Canberra (41%).  
Top three increasing in congestion – Perth, Melbourne, Sydney.  
Top three decreasing in congestion – Auckland, Christchurch and Brisbane (It still doesn’t help when stuck in traffic on Moggill Road!)  
Likely delay per hour driven in peak periods – Brisbane 28 minutes; Canberra 22m; Adelaide 28m; Melbourne 33m; Perth 33m; Sydney 40m.  Across the ditch: Auckland 40m; Christchurch 30m; Wellington 36m.  
So I assume from this that Brisbane’s traffic congestion is kinda okay, until shite hits the fan somewhere, and it gridlocks up, causing, on average, 28 minute delays, during peak periods.  
Best peak periods of the week – For Brisbane, Adelaide, Melbourne, Perth and Sydney, the best peak periods occur Mondays pm and Fridays am.  For Canberra, best peak periods are Fridays am and pm – in other words, they only work a four-day week in the nation’s capital.  
Worst peak periods of the week – Tuesdays am for all cities except Canberra (Wednesdays am); and Thursdays pm for all cities except Perth (Wednesdays pm) and Sydney (Fridays pm).  
My comments  
The market is placing much higher value on convenience.  Travel times are part of this.  But I think living downtown or closer to an urban centre, has more to do with amenity and being able to walk to things, rather than the time saved when it comes to driving to work, shopping, schools etc.  
We are seeing this when it comes to new subdivisions.  Those developments that spruik easy access to surrounding facilities, are not as attractive as those projects which offer the amenity within the development itself or within a pleasurable walking distance.  
We will not give up our cars.  We might not drive them as much, but far too many things can only be accessed by private vehicle.  Urban consolidation doesn’t equate to fewer actual cars, just fewer and shorter driving trips.  
The market (both buyers and renters) still places a premium on cars.  It is very difficult to sell a new one-bedroom apartment in inner Brisbane without a car parking space for over $350,000.  But buyers pay well over $400,000 for a one-bedroom apartment with a car space.  The premium for the car space within a new inner Brisbane development ranges depending on location, but averages close to $75,000.  The apartments with car spaces – being one space for a one-bedroom apartment and on those rare occasions these days, two spaces for a two-bedroom apartment – mostly sell first.  
Don’t believe me?  Well you ask a downsizing baby boomer couple - who are looking to leave suburbia and live a more urban lifestyle and who can only afford to buy a two-bedroom/one car space apartment – who is going to forego their car? Icy silence.  And wave bye-bye to that sale.  
Where are the Lone Ranger and Tonto when you need them?  
“Hey Kemosabe, maybe a townhouse might do the trick!”
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/" rel="nofollow" style="font-size: 14px;">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read<a target="_blank" href="https://www.matusikmissive.com.au/" rel="nofollow" style="font-size: 14px;">Michael’s Blog</a> or follow him on <a target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts" rel="nofollow" style="font-size: 14px;">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow" style="font-size: 14px;">Twitter</a> or connect via<a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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Despite traffic congestion, we will not give up our cars: Michael Matusik

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Fast car driving - sleek and modern - public transit - photos waiting - blood and glass - three points of rain - carpet lining - seats reclining
Clever words on smooth tongue talking - shove it brother - just keep walking.
- lyrics to Just Keep Walking, INXS 1980
<a target="_blank" href="https://www.walkscore.com/">Walk Score</a> measures the number of typical consumer destinations within walking distance of a dwelling, with scores ranging from 0 (car dependant) to 100 (most walkable).
Recent overseas studies indicate that properties with above-average levels of walkability command a premium over homes with average levels of walkability.
In the United States, for example, an additional one point increase in a Walk Score is associated with a potential $3,000 increase in property value.
Our recent study of Brisbane also found a very strong correlation between a suburb’s Walk Score and a property’s investment performance.
Housing markets attach a positive value to living within easy walking distance of public transport, shopping, services, schools and quality open space.
Furthermore, an investment property value premium for walkability seems to be higher in more populous urban areas and in those locations with extensive public transit access, suggesting that the value gains associated with walkability are greatest when people have real alternatives to living without needing to use their car for most commutes.
It should be stressed that Walk Score’s measure of walkability captures not just the benefits associated with walking, but with greater accessibility generally.  For example, places with higher Walk Scores tend to have more mixed uses &amp; better transit services, and much of the value measured here may be attributable to those assets.
The average Walk Score for the greater Brisbane area is just 49 out of 100.
<a href="https://matusikmissive.com.au/wp-content/uploads/2013/04/Walkscore-Missive-hyperlink.pdf" target="_blank" title="Walk Score">Our study</a> across 24 Brisbane suburbs found that places with higher walkability achieved higher prices; grew faster in value; attracted higher rents (&amp; rental returns); had fewer vacancies &amp; less properties listed for resale.   Resale listings also sell faster in high Walk Score areas.
Everyone thinks their new development or property is better located than the next.  Tell them all to shove it brother, check out Walk Score and make up your own mind.
P.s. INXS’s debut self-titled album, for mine, was their best.  I am getting nostalgic in my old age and I fondly remember seeing INXS, Dragon (now I am showing my age) and Aussie Crawl on Cronulla Beach in the early 1980s. 30,000 people were rumoured to be there. It was INXS’s first big audience and Michael Hutchence sang with his back to the crowd. Hard to believe these days, hey!
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/">Michael’s Blog</a> or follow him on <a target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Properties with higher 'walk scores' are better investments: Michael Matusik

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Rising residential construction is an important element in the RBA’s game plan for 2013 and beyond.  As mining-related investment plateaus, residential construction will need to step into the breach.  Housing construction has a big employment multiplier.
Yet first home buyer interest – which does not surprise us in least – is in decline.  Investors, when it comes to new property, are showing little or no urgency - and who could really blame them.  So new construction is, and is likely to remain, subdued.  Falling interest rates can only stimulate new housing demand if other policy settings are correct.
We are reaping what we sow.
First home buyers
A few months ago, based on the January loan figures, most media outlets ran the “first home buyers abandon market” headline.  The falls were the greatest in New South Wales and Queensland, with just 773 first home loans issued in New South Wales during January and only 750 in Queensland.
But both states changed the emphasis of their first home grant schemes towards new housing late last year.  <a title="Missive" target="_blank" href="https://matusikmissive.com.au/2012/09/10/just-11/">We said then</a> that this would end in tears.
Now, most housing statistics covering the month of January are usually not reflective of the market conditions over the next year.  I describe January (and often December) figures as –being “off-market”.
And 14.9% of all loans were taken up by first home buyers during January.  Now, despite what the headlines say, a 15% market share is the long-term first home buyer average.  The home loan volumes traded by first home buyers during 2009 and into 2010 weren’t sustainable.
For mine – there is no headline, no need for even much conversation about this topic; it is just business as usual.  But if you want to encourage new residential construction, which is what both the NSW and Qld governments want to do with their changes to the first home buyers grant last year, you won’t do it by trying to incentivise first timers to buy something new.
Why?  Only one in ten first home buyers buy a new property.  The reason is that a second-hand home offers much better value to a first home buyer because they have energy, enthusiasm and Australian tax laws on their side, which all combine to encourage them to buy something older which they can renovate and in time resell, tax free.  We have all done it.  Why would anything change?
The grant by the way doesn’t work.  It hasn’t offset the impact of GST on new property and in fact we have fewer first-home buyers than would have been the case.  According to the ABS, there were 446,000 first-home buyers across Australia just prior to the grant.  Today that number stands at 429,000.
The average mortgage taken out by a first-home buyer today is $293,000, against a mean purchase price in the low $400,000 range.  This gives many a healthy 30% equity.  However, this equity position has not improved in recent years whilst the size of first-home loans has increased.  In short, the FHOG has also inflated the market.
Finally, it has screwed-up expectations; with three out of five first home buyers being either a single or couple household, yet 75% of the stock bought by them now holds three or more bedrooms.  One quarter (26%) of first home buyers bought a four-bedroom home last year.
Prior to the grant, most first home buyers bought two (35%) or three-bedroom (30%) dwellings.
Investors
On average, investors buy most of the new property for sale in Australia.  This buyer profile varies by product type and location, being higher for downtown apartments than detached houses on standard allotments in a suburban setting, but regardless of what and where it is, investors are the largest buyer group of off-plan property and newly constructed product.
But buyers of new property must pay GST (whilst buyers of second-hand property don’t) and also the same level of stamp duties as buyers of established stock.
If you really want to encourage new residential development, you must incentivise the investment markets.
This is very easy to do and was proven when Jeff Kennett took office in Victoria.  Step the amount of stamp duties payable on a new property transaction according to the stage of development.  No stamp duty being payable if a buyer buys off-plan; some stamp duty due if bought during construction and full stamp duty payable after completion.
What would help – extremely so – is removing GST for new property or making it payable on all property transactions.  The former would be much better than the latter.
We are reaping what we have sown.  First home buyers don’t need help.  Nor do investors for that matter.  They (both really) need to be encouraged to buy something new.  At least create an even playing field.
And again, get rid of the FHOG.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a href="https://www.matusikmissive.com.au/">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts">Facebook</a> and <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>
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Get rid of the FHOG: Michael Matusik

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Property values have taken a well-documented slide lately, yet construction costs are still relatively high.
Will they ever head south, the way some sales contracts have?
Demand for domestic construction has cooled a bit in the past few years, but excess workers have been absorbed by stellar projects in commercial construction and mining.
As a result, we haven’t really seen widespread discounting of construction labour, and we certainly haven’t seen discounted building materials – although fixtures and fittings imported from China are more affordable than ever.
Depending on your level of construction expertise, you may have heard of a costs guide called Rawlinsons. It’s an annual bible with quarterly updates and gives an accurate reflection of what’s going on with the costs of all things construction.
You can get bogged down in the specifics – if you want to know how much it’ll cost to lay a 22mm terrazzo floor in Perth, the Rawlinsons guide will tell you. Need to price a partial demolition in Melbourne? Rawlinsons knows the ins and outs of that, too. Building a bank in Adelaide? A pub in Darwin? Rawlinsons will tell you what to budget.
The 2012 guide shows that after big jumps in the early 2000s, construction costs have either plateaued or increased very slightly in the past three years – they haven’t gone backwards.
So how much does it cost to build a house, right now? Or an apartment?
Let’s start with a small, basic house – a project home, if you will. A stock standard brick veneer home of 90-110 square metres will set you back anywhere from $825 per square metre in Adelaide, or $1,280 per square metre in Hobart. In Brisbane and Sydney you can expect costs of around $1,050, while Melbourne is about $1,100 per square metre.


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A bit further up the chain, a full brick prestige home between 150-350 square metres is again cheapest to build in Adelaide, with costs ranging from $2,080 per square metre. Brisbane is the most expensive capital in which to build to prestige standard, up to $3,240 per square metre.
Interestingly, the pricing guide for pre-fabricated housing of a medium finish is all around the $1,200 per square metre mark – more than the most expensive project home but considerably cheaper than a similar prestige home. There’s certainly a place in the market for pre-fab housing; consistency of costs is another attraction.
Moving into apartments (so to speak,) and the costs are higher than for pre-fab housing, but generally lower than for a traditional house.
The cost of a medium-finish one- or two-bedroom apartment with no balcony or lift starts at $1,580 per square metre in Adelaide and Brisbane, ranging all the way up to $2,090 in Hobart. Perth’s costs are hovering around the $1,700 mark, Sydney around $1,800 and Melbourne up around $1,900. Then you’ve got to add up to $780 per square metre for a balcony.
It all adds up, but remember – most apartments are considerably smaller per square metre than your average house, so they’re cheaper overall.
Townhouses of a medium standard finish are about the same or marginally cheaper to build than apartments, starting from $1,365 in Adelaide and ranging up to $2,150 in Hobart. Brisbane’s rate is around the $1,600 mark, Perth is around $1,700 while Sydney and Melbourne are both about $1,750.
Rawlinsons’ last quarterly update in July recommended adding an additional 1% on top of all current cost guides – further evidence that construction, just like property, is making a small step back into the black. Another tiny win for confidence!
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.com.au/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Why construction costs are still high when property values are falling: Michael Matusik

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Yes, interest rates fell.
But what do we know?
The local economy is tough.  Overseas markets more so.  Or is it more about structural change than cyclical factors?  Ditto Australia’s housing markets.
Australians are saving at near-record rates.
Budget cutbacks means less fiscal stimulus.
We are spending money but on different things – travel and online goods, not local produce and especially not new housing (or established housing, for that matter).
We are paying down our mortgages, and taking on new debt is way out of fashion.
Inflation looks contained – well, for now.
Established house prices are starting to rise – up over 3% since May or close to 9% on an annualised rate.
Population growth across Australia is on the rise again.
The Aussie dollar remains high.
Very few people are admitting they like Alan Jones right this minute.
For mine, this week’s drop in official rates will have very little impact on our economy.  The banks are limited as to how much they can pass on.  Rates are expected to fall again in November.
True, a rate drop is better than a rate rise, given our current collective frump.
 
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But what we need is a boost to our confidence.  A fall in interest rates won’t do it.  This week’s fall and even next month’s is already factored into our expectations.  It’s like having meat and three veg for dinner, the usual and so ho-hum.
Confidence, that’s what is missing and for the life of me, I don’t see it on the horizon and regardless of what direction I look.  I definitely don’t see in when I look south towards Canberra.  I was hoping to see it in George Street, but maybe my expectations were set too high.  I am not seeing it across the Pacific.  Heck, I cannot even watch a footy match these days without someone getting their ear nearly bitten off.
Without being sexist, Tom Waits has got it right – “there ain’t enough raised right men”.
We need to build something – another Snowy Mountains something.  Or really attempt to solve a major human suffering – and something tangible, like infant mortality or AIDS – and not the nebulous like “climate change”.  We need a plan and a leader to articulate and implement it.  Branson and co. need to step up.  No politician – well, not out of the current crop – is going to do it.  Ditto those mining magnates.
We need our own Springsteen.  Where’s Midnight Oil when you need them?  Come on, Pete – give up your day job!
But before I get higher on my high horse:
All the ingredients are there for another housing upturn – low rates; high yields (often now positive); a rising population growth rate; soft housing starts; very tight vacancy rates; higher rents and now rising end prices, and yet I will get more “spruiker” direct email replies from this post than “high fives”.
It’s a strange world we live in these days for sure.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.com.au/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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What we know about the housing market in the wake of the RBA's cash rate cut

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Yesterday’s Missive found an undersupply of detached houses for sale in Sydney (2%), regional NT (2%), Darwin (3%) and Perth (3%).
<a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-darwin-and-perth-house-markets-undersupplied-but-regional-areas-oversupplied-michael-matusik/2012092556802">Detached housing markets at equilibrium are</a>:  Adelaide (4%), Brisbane (4%), Melbourne (4%), Hobart (5%) and regional NSW (6%).
The oversupplied detached housing markets are: regional WA (especially the <a target="_blank" href="/news">Margaret River</a> area) (14%), regional Victoria (9%), regional Queensland (including the Gold and Sunshine coasts and Cairns) (8%), regional SA (7%) and the rest of Tassie (well, Launceston) (7%).
But where are the stand-out post codes? And where are the shockers – the spots where housing supply has increased, and sometimes by lots?
The current top 10 improvers were all from Victoria, Queensland and WA. The two outer-Melbourne suburbs of <a target="_blank" href="/news">Werribee South</a> and <a target="_blank" href="/news">Wyndham Vale</a> had the biggest drops in housing stock for sale, although it’s worth pointing out there’s plenty more on offer very nearby – similar outer-Melbourne suburbs dominate the losers list, in fact some of them are right next door.
<img src="/images/stories/2012/09/matusept26.gif">
<a target="_blank" href="/news">Portland </a>in regional Victoria is worth a mention – it’s had a whopping 71% drop in the number of houses for sale over the year, with just 110 currently on the market. Portland’s main industry is – you guessed it – its busy port.
Queensland’s biggest drops in housing stock were <a target="_blank" href="/news">Yeppoon </a>near <a href="/news">Rockhampton</a>, <a href="/news">Coolum </a>on the Sunny Coast (down 31% to 618) and <a href="/news">Hervey Bay</a>. On the Gold Coast, <a href="/news">Paradise Point</a> and <a href="/news">Broadbeach</a> both have around 200 fewer houses for sale than this time last year – another tiny piece of good news for the struggling Goldie.
<a href="/news">Willetton</a>, a suburb in Perth (down 33% to 428 houses for sale), and <a href="/news">Mandurah </a>further south of the capital round out WA’s share of the top 10, with both WA locations also dropping about 200 houses each off the sales list.
The bottom 10 list is dominated by the outer suburbs of Melbourne, where houses for sale seem to be a dime a dozen. These are the spots that have experienced the highest jumps – leaps if you like – in the numbers of houses for sale. <a href="/news">Clyde North </a>in Melbourne’s southern outskirts has recorded a dramatic 213% rise (1,342 houses on the market); <a target="_blank" href="/news">Taylors Hill</a> out in the north-west has seen a 130% spike (to 1,158), while nearby <a target="_blank" href="/news">Rockbank </a>has leaped up by a staggering 295%. Seven of the top 10 losers are on the outskirts of Melbourne; the eighth Victorian entry is <a target="_blank" href="/news">Bairnsdale</a>, a small city in Gippsland.
The other two biggest losers are <a target="_blank" href="/news">Wurdong Heights</a>, a new development south of Gladstone in Queensland where demand from mining workers is quite high, and <a target="_blank" href="/news">Woorree</a> east of Geraldton in WA – also a mining area, where new homes, in the past at least, have been resold – and quite quickly.  Mining-related retrenchments, however, might slow down sales in the future.
PS - Thanks again to <a href="https://www.sqmresearch.com.au/">SQM Research</a> for access to its latest stock for sale Excel spreadsheets. Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a>or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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The stand-out and shocker postcodes for detached housing supply

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Forget about apartments for a minute, we’ll get to them next week. Let’s take a look, for now, at what’s going on with detached housing stock levels across the country.
There are 22 million people and 5.82 million detached houses in Australia.  Three out of five, or 60%, are located in a capital city – although only 40% of houses for sale are in the capitals.
About 5% or 300,000 of Australia’s houses were for sale in August, which is about 10,000 more houses than for the same time last year – an increase of about 3%. This means there are 4,000 more houses for sale in the capitals than a year ago, and about 5,500 more on offer in the regions. Yes, stock levels are rising – but where?
All up, there are about 120,000 houses for sale across all the capitals and 175,000 for sale in the regions. Houses make up 75% of all dwellings for sale across the eight capitals and hold 85% of market share in the regions.
There are fewer “for sale” signs of late in Perth (down 1,700), Brisbane (down 1,400) and Darwin (down 275 or a whopping 25%). In contrast, the remaining five capitals all recorded an increase in detached housing stock for sale, especially Melbourne– where there are 5,500 more houses on offer than this time last year.
In the regions, houses for sale dropped in SA and Queensland, remained steady in the NT and Tassie but increased in Victoria (up 3,800), NSW (up 1,750) and WA (up 1,450).
Does this mean things are pretty crappy for detached housing in Melbourne and Victoria? And things are looking up for Queensland, SA and Perth?
Not necessarily.
When you cross-reference the “for sale” detached house figures with the numbers of detached houses in each capital and regional market, the results tell quite a different story.
Despite the lift of 4,000 extra houses for sale this year, the total of 120,000 houses for sale in all capitals actually represents just 3% of stock.
I reckon a turnover of between 4% and 6% for detached houses is normal; anything less than 4% is a bit tight or undersupplied. Anything over 6% is obviously a bit loose or oversupplied.
So, that means the undersupplied detached housing markets are:  Sydney (2%), regional NT (2%), Darwin (3%) and Perth (3%).  (The percentage refers to the number of detached houses listed for sale against the total number of detached houses).
Detached housing markets at equilibrium are: Adelaide (4%), Brisbane (4%), Melbourne (4%), Hobart (5%) and regional NSW (6%).
The oversupplied detached housing markets are: regional WA (especially the Margaret River area) (14%), regional Victoria (9%), regional Queensland (including the Gold and Sunshine coasts and Cairns) (8%), regional SA (7%) and the rest of Tassie (really only Launceston) (7%).
That changes things a bit, doesn’t it? Or perhaps it just confirms what most of us already knew.
PS: Thanks heaps to <a href="https://www.sqmresearch.com.au/">SQM Research</a> for access to its latest stock for sale Excel spreadsheets.
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a> or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Sydney, Darwin and Perth house markets undersupplied but regional areas oversupplied

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So, does Australia have too few, too many, or is the situation just about right?
I am talking about new dwellings.
I have been arguing for some time that one of the biggest real estate myths in this country is that the new housing market is undersupplied; and often this situation is described with words such as “massive”, “chronic” or “enormous”.
But is it true?  As followers of the Matusik Missive know, I have tried to prove that it is false and with, for mine, with quite a degree of finesse.  Yeah, like a bull in a china shop.
Anyway, each year I like to go back and check the numbers.  And last week’s annual check-up has found that Australia continues to build more dwellings than we need.  A few years back – in 2008-09 – not enough new homes were being built, but in recent years, and despite the constant calls from the building industry for stimulus to help create even more new dwellings, we have been building too many. 
In the 2009 financial year, Australia needed to build 167,000 new dwellings, yet only 131,000 or thereabouts were commenced.  However, in 2010 (all years in this post are financial ones), the supply-demand balance reversed, with just 121,000 new homes needed, yet 167,000 actually commenced construction.  During 2011 the industry continued to build far more homes than what was actually needed, to the tune of about 47,650 too many.
The good news is that the rate of overbuilding has slowed down over the last 12 months, with 137,000 new dwellings needed during 2011-12 and with 139,000 actually supplied.
However, dwelling supply (we are talking about actual commencements here and not approvals) is cumulative and since the GFC, Australia has built about 60,000 more new dwellings than it really needed.
Nationwide, we are currently oversupplied with new digs to the tune of about five months, based on current underlying demand.  In short, we could, as a nation, stop building for several months and still have enough new homes to fulfil our needs.
But of course, there are always swings and roundabouts.
Several states and territories are undersupplied, some are chronically oversupplied – I just had to get that in – while others have way too much stock.
Major oversupplies now exist in Victoria; South Australia, Tasmania and the ACT.
Since 2009, Victoria has created 69,000 (yes 69,000 – that’s five digits with a six at the front!) too many new dwellings.  This represents about a two-year oversupply based on the current annual underlying demand for 34,000 new dwellings across the state.
South Australia has built 18,000 too many new homes, but with a need to just build about 6,000 new dwellings per year, South Australia really shouldn’t need to build a new home for years, well close to three, in fact.
There are 6,000 too many dwellings built or being built in Canberra.  This equates to 30 months of supply.  And poor Tassie has also overbuilt, and also in the high 4,000 range.  But Tasmania’s situation is further exacerbated by its declining population growth.  Based on a continuation of last year’s paltry population increase of 1,000 people, Tassie’s 4,800 overbuild represents close to nine years of demand.  Now might be a good time to steal a new property on the Apple Isle.
The Northern Territory is now also oversupplied, with 350 too many dwellings created in recent years.  The demand for new homes in the territory is limited (at about 800 per annum), so this paltry 350 over-hang represents six month’s demand.
In stark contrast, New South Wales hasn’t been building enough new stock – no surprise there – but the undersupply is to the tune of 13,000 or about five months of current demand.
Western Australia is also undersupplied by about 23,000 dwellings at present, which equates to about an nine month demand.
Finally, Queensland has a new dwelling short-fall of 2,800 or two weeks of undersupply.
Last year’s statistics, however, suggest that Queensland is now heading towards a massive undersupply, with 33,000 new dwellings needed during 2012, yet just 26,000 supplied – an undersupply in the tune of about 20%.
Let’s hope the Newman government’s recent $15,000 first-home buyers' grant for new construction kicks some arse.  But for mine, it will not deliver the spanking it was intended to.
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a>or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Australia has an oversupply of 60,000 dwellings

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So you’ve settled on a suburb or area that you want to invest in, and you’ve narrowed it down to a handful of competing developments.
They’re all in great spots, in similar price ranges.
How do you separate them?
One of the biggest mistakes clever investors make is to ignore what I call the four Fs – facilities, fixtures, fittings and finish.
There are 10 four F trends you must be aware of.
1. Smart living: data cabling and wireless
Everybody needs the net at home. Make sure your property has smart wiring built into the walls – you don’t want to add it later. Most developers now offer data and TV cabling to most living and study areas, and demand will only increase. If your development is solid concrete, where can tenants use wireless internet devices, or even mobile phones?
2.  Lap pool and gym
Forget the old jellybean shape; the hot new trend is a lap pool. They create a quieter environment too, because they’re less about “play” and more about exercise and wellbeing. Well-equipped gyms are becoming much more common in small to mid-size developments.
3.  Shared spaces: quality and quantity
Large developments used to have a pool and a barbecue space; now there’s a trend for smaller developments to provide a wide selection of shared spaces for residents to enjoy. Small theatres, rooftop lounges, boardrooms and function rooms – these are all “bang on trend” at the moment.
4.  Natural ventilation and air-conditioning
Some tenants will rely on air-conditioning. Others don’t want an electricity bill up in the stratosphere, so they’re demanding natural ventilation. Either way, there’s a clear trend towards apartments that cost less to live in. Can you control the air-con to shut off rooms you’re not using?
5.  Natural light and energy-efficient light fittings
The big trend towards energy efficiency means ample windows, aspect and surrounding buildings all play a role. A certain proportion of a new dwelling’s light fittings are required to be “energy efficient”; ask the developer about fittings that are used every night.
6.  Two-pack cabinetry and stone benchtops
A few years ago, quality two-pack cabinetry and stone benches only featured in the kitchens and bathrooms of the most expensive houses. Now you’ll find them in most mid-range apartments. Don’t settle for less; they will last longer. Another quality trend: “soft-close” drawers – if Ikea can make them standard, so can your developer.
7.  Kitchen appliances: quality and function
Stainless steel is still hot and will probably never go out of fashion. But it’s the little details ticking boxes these days: a fridge dispensing ice and water; a bigger oven; a wider cooktop; a built-in coffee machine. Negotiate just one “wow” factor into your kitchen, and tenants will love you.
8.  Floors: tough and durable
The trend here is for longevity. Carpets are generally darker and limited to bedrooms. The most durable living area floor is a tiled one – glossy or matte, pick any style you like as long as it’s not terracotta. Their day has passed!
9.  Storage: clever and plentiful
Not so much a trend as a fact of life – we all need somewhere to put our stuff. The more storage space in an apartment, the better.
10. Style: modern and comfortable
Just like a good wine, you want your property to age well. The trend for finishes is simple: modern, spacious designs that can stand the test of time, but are also welcoming, comfortable – and feel like a home.
So next time you go into a display suite or onto a new estate, ask the sales rep to tell you about their four Fs.
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a> or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Don't ignore the four Fs of residential developments

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If you can get past the headlines, things – real estate wise – are definitely looking up – but you might need your head read if you’re planning to sell an property soon, depending on where it is and when you bought it, of course.
Some pretty low forced sales in Melbourne (for example) have caused many investors to desert a sinking market – dropping hundreds of thousands of dollars in the process. Weigh up the current low interest rates, and it might pay to tenant your worst investment as best you can, and wait out the storm.
Things are generally looking up in Sydney and Brisbane, although a sudden flood of stock in spring might make things tougher.
So what can you do if you have to sell in a tough market? There are five things you must do to win a sale sooner rather than later.
1) Wake up and smell the roses
I’m not your agent, and I’m not talking you down – but you need to be realistic on price. Yes, it might hurt. An overpriced property in a tough market will sit there, draped in cobwebs, while its vendor dreams of better times. See what other properties are selling for, then take a good hard look at yours. No one wants to take a hiding from a bargain-hunter in six or 12 months’ time.
2) Present it like you mean it
In a tight market, you need to knock the socks off every buyer who comes through the door. Make it clean as a whistle, leave no stone unturned in the garden – and please, do not forget the windows, inside and out. Buy flowers for the kitchen before every open house. Aim for show-stopping perfection; you want your property to be remembered for good, not evil.
3) Promote it as best you can
Make sure the property’s very best feature is in the headline of the internet ad and any other ads you feel you want to pay for. Always get professional photos taken, but shop around and make sure you own the images if you change agents later. Ask your agent to do a letterbox drop, or offer to do one yourself.
4) Out with the tenants; in with the furniture
It’s a sad fact of life that your tenants are unlikely to share your personal financial goals. It’s even more likely they will not have the place looking ship-shape for each and every inspection, and the longer a sales campaign runs, the grumpier they’ll get. Aim to sell a property immediately after a tenancy – that way you can have free access to get the place cleaned and ready for sale, and your agent can conduct inspections at will. If your budget permits, try furnishing even just one or two rooms to really make a good impression. The living area and the main bedroom should do it.
5) Stay strong
If push comes to shove, only you can make the decision to cut your losses and meet the market, or hold on for a better offer that may or may not ever come. There’s a wealth of psychology to selling – and tough markets are tough, so don’t let it do your head in. If you can’t secure a sale in a time period within your comfort zone, have a backup plan – like re-tenanting the property beyond a certain date, or even taking it to auction. Listen to your agent, but make sure you’re in the driver’s seat.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.wordpress.com%20/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Five tips for property vendors to secure a sale sooner rather than later in a tough climate

Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Michael Matusik

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