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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

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

Michael Matusik

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