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Ideally for mine, one-bedroom apartments should be no smaller that 60 to 65 square metres (including balcony) and two-bedroom apartments no smaller than 85 to 90 square metres gross.
<a href="https://www.propertyobserver.com.au/developments/apartments-are-becoming-smaller-cheaper-and-more-popular-as-australians-lose-their-appetite-for-big-michael-matusik/2012091156509">Australians are increasingly showing a preference for smaller units</a>, but in a perfect world the one-bedroom stock would be about 70 square metres and two-bedders about 100 square metres.  But perfect worlds these days are rare indeed.
I don’t really like – nor do I think they will rent as well many such off-the-plan developments current advocate – the current trend towards extremely tight two-bedroom apartments.  These are often the size of a one-bedroom apartment (i.e. under 70 square metres).  So apartments can be too small.
Also for mine, when looking to buy a new apartment – apart for price, size (apartments + overall development), location, quality and development team pedigree – buyers should also be very critical of design.  Important things when it comes to apartment design/inclusions include:
<ul>
<li>galley kitchen</li>
<li>separate bedrooms (both with direct natural light)</li>
<li>equal ensuites</li>
<li>wardrobe space</li>
<li>linen store</li>
<li>separate laundry</li>
<li>study nook</li>
<li>ceiling height</li>
<li>air-conditioning, ducted preferred</li>
<li>parking provisions, including visitors</li>
</ul>
See, you just cannot fit all the important stuff into a shoe box.
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>.
{module What should be the smallest size for a one-bedroom apartment?} 
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michaelmatusik-49YzLvdmNv

Why apartments should not be smaller than 60 square metres

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We like things big in Australia. Big homes, big cars, big meals, big characters – everything’s got to be larger than life.
Or does it?
Have you looked at new car sales lately? Fuel efficient, small to mid-size cars are driving out of the showrooms before they’ve even been loaded off the docks. Sushi restaurants and salad bars are elbowing McDonalds’ out of the way everywhere you look, and – well, Kerry Packer’s leading the TV ratings again. OK, some things never change – we still love our big characters.
In real estate, big homes have been on the nose for a few years. They’re a lot more expensive, and they cost a lot more to run and maintain. In 2011, only 1% of sales across Australia were for properties over $1 million, so big and expensive homes are a very small segment of the market.
On the other hand, apartments are more popular than ever before. The 2011 census confirmed they account for 14% of all dwellings, up from 11% in 2006. Apartments made better capital gains than houses over the past few years, and they’re becoming a lot more affordable, too.
But apartments – especially those in new developments – are changing. They’re getting cheaper because they’re getting smaller. There’s a strong trend towards higher quality fixtures and fittings too, adding substantial value for money compared to a decade ago.
Take a look at the developments near you, and I bet they’re mostly one or two-bedrooms, with the occasional three-bedder thrown in for good measure. There are one-bedroom apartments on offer in Brisbane that measure just 51 square metres – much smaller than the old standard of, say, 70 square metres including balconies – but still twice as big as the controversial 25- to 28-square-metre apartments being touted in New York at the moment.
Developers everywhere are responding to the market, and the market is telling them smaller is better; smaller sells. It’s a simple fact that smaller, cheaper apartments are selling off the plan a lot faster than bigger, more spacious, more expensive ones in the same developments. Some developers are even changing their designs mid-way through the off-the-plan sales period to increase the number of smaller apartments on offer.
Let’s think about the newest generation of apartment renters – Generation Y – because they’re the ones driving this trend. Notorious for not leaving home, they’re getting older and many have finally had the shove from mum and dad.
Gen Y isn’t into home ownership or picket fences – they place a lot more importance on living life for its experiences. And no surprise: they don’t spend a great deal of time at home. So they’re snapping up small, affordable apartments for rent in exciting inner-city suburbs, close to the action. If you’re investing in a hip suburb, Gen Y are your tenants.
Which is why the other big trend in apartment design is to separate the bedrooms as much as possible, allowing singles to live at opposite ends of a small apartment, crucially with a bathroom each. The design of an apartment will determine the sort of tenants it attracts, so developers are fine-tuning their products to make sure they appeal to the right rental demographic.
Apartments are becoming smaller, but they’re better designed and equipped, so tenants can more efficiently use the space the way they want to live. The bottom line is, they’re cheaper to buy and cheaper to rent – and can only grow in popularity with both investors and tenants.
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.wordpress.com%20/" 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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Apartments are becoming smaller, cheaper and more popular, as Australians lose their appetite for big: Michael Matusik

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Mention of the Gold Coast residential market rarely raises an eyebrow these days, unless there's a story about a megamillion-dollar sale, or word of more bad karma in the market.
In looking at this market, it is helpful to understand its housing cycle, which is pronounced, and which usually has a six-year frequency.
The region experienced market peaks in 1988, 1992, 2002 and 2008; and downturns in 1982, 1990, 1995, 2000 and 2012.
After almost 30 years in this business, you see patterns emerge. And history usually repeats. Based on past performance, the Coast looks set to have a market peak in 2014-2015, 2020 and 2026; and likely will experience downturns in 2017-2018 and in 2023.
Note the Commonwealth Games due for 2018 will, I believe, have little to no impact on the property cycle.
But data aside, there are tell-tale signs the Gold Coast market, like its Brisbane counterpart, is about to turn a corner. Some of these include:
<ol>
<li>Well-priced properties starting to sell soon after listing</li>
<li>Multiple offers occurring on well-priced properties</li>
<li>Some properties are now selling above reserve</li>
<li>Vacancy rates are on the decline and rents are rising</li>
<li>Fewer well-priced properties for sale - there is a shortage of saleable stock for sale across many parts of the Coast</li>
<li>Time on the market, as a result, is dropping and, in some cases, sharply</li>
<li>Intra-state and interstate interest is on the increase</li>
</ol>
It is apparent the Goldie market has just about bottomed and we are likely to see values grow during 2013 – probably in the vicinity of 5%. But those values might sit there for some time.
While the Gold Coast's population could rise by 135,000 over the next 10 years – which suggests the need for 50,000 to 55,000 new dwellings – indicators are the largest growth segments will be first-home buyers and those in their late 60s to early 80s.
Both groups are expected to take up a 25% market share of population growth, and both will be financially constrained.
Although the emerging shape of the Coast suggests the need for more detached housing, there is not enough alternative and more affordable housing types being supplied. These include townhouses, terrace homes, "plexes'' and, in some cases, suburban-based, walk-up apartment product.
The irony is the Gold Coast is one of the most undersupplied housing markets in Australia. What is supplied has little demand, and too much of it is focused around lifestyle and discretionary spend rather than on real life. Trends also suggest a need to expand its urban area to accommodate projected population growth.
The region will benefit from an increase in the supply of affordable new housing in locations where permanent residents can afford to buy or rent.
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 href="https://www.matusikmissive.wordpress.com%20/" target="_blank" title="blocked::https://www.matusikmissive.wordpress.com /">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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The seven tell-tale signs Gold Coast market has bottomed out and is about to turn the corner

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New homes sales fell by about 6% in July, wiping out all the gains recorded over the previous five months.  Sales stand at the second lowest level in 11 years.
In short, the housing construction market is back in the doldrums.  Newly erected homes aren’t selling, reducing the requirement for builders to start work on new projects.  The RBA governor has expressed surprise about the lack of home construction.
The housing industry is “lost” for an explanation as to why this is happening.
You see for mine, new property isn’t in strong demand because what is supplied is increasingly missing the mark; so, too, is how new property is promoted and its current method of disposal – a price reduction – just doesn’t work.  In fact, it does more damage than good.
In short, too much of the new stock on the market is poorly proportioned, designed, finished or sufficiently offset to entice buyers.
Likewise the promotion of new product is mostly homogenous, stale and reflects more the age, sex and circumstances of the development company directors than who they are trying to sell their product to.
Customers don’t want to hear about a developer’s history.  They do, however, want to know about their previous development’s performance.  Strange how few developers actually supply such details.
They also don’t really want all the lists that sales people seem to provide – pages of research material, very little of it relevant; brightly coloured brochures, dozens of floor plans/home designs.  They do want, however, trusted third-party endorsement.
Combined years of experience – give me a break.  Mostly repetition if you ask me.
Also, they aren’t interested in what makes your project different.  They only want to know what’s in it for them.
Let me close with a few remarks about discounting price.  There is a substantial body of very well-credentialed research to suggest that buyers prefer “extra for free” rather than the more generous “reduction in the asking price”.
It essentially boils down to a bonus versus a bribe.
Keep in mind that a building bonus; a first-home buyer’s grant or even a reduction/removal of stamp duties on new product is seen by the market as a “discount”.
Price tells the market much more about a product than merely what it costs.  A price cut – however it is packaged – is often seen as a mark of mild desperation on the part of the seller and it is not unreasonable to infer that the product is either inferior and/or that further price reductions are just around the corner.
Charging the full price but adding a tangible extra – i.e. a furniture package, guaranteed rental return, storage fit-out, or a fixture and finishes upgrade – does not convey the same level of desperation.  In fact, more often than not it enhances the product’s brand.
For mine, the new housing industry – in the main – is quite lost.  It still operates like a landline phone.  It isn’t a smartphone or a tablet.  It is analogue, not digital.  It is at odds with its target market(s) and until this disconnect is improved, new housing starts will remain low.
Hard words indeed from someone who is male, pale and increasingly stale, too.
And just to show my age, I have been listening to Rodriquez – Sugar man/Crucify your mind/I wonder/Sandrevan lullaby fame (even saw him in concert at the Tivoli last year) – of late.
So you think you have something to offer
Something shiny and new
But how much of you is repetition
And how much of that did you do poorly too?
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.wordpress.com%20/" 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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Housing industry in the doldrums because supply is missing the mark

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Vacancy rates in most of our capital cities are relatively low. The national rate sat at 1.9% last month, but it’s been slowly rising throughout 2012.
Rental vacancies in or near mining towns are up and down, but what’s happening in our bigger regional cities?
Let’s take a look around the nation, according to figures from SQM Research.
In Queensland, Cairns is sitting on 1.6%, after dropping consistently all year. Townsville’s vacancy rate is higher at 2.8% – but both northern centres had four times those rates just three years ago. Closer to the mining areas, Mackay’s vacancy rate has plummeted to just 0.9%, and Gladstone is sitting on 1.2% with just 30 homes up for rent in July. Emerald’s rate is actually on the rise, all the way up to 0.3% – or 10 properties. The news is still bad from Moranbah, where the vacancy rate remains up in the stratosphere at 5.1% – the result of mining giant BMA’s dummy spit over high rents. Looks like most of the miners prefer to live in nearby Mackay. Closer to Brisbane, Toowoomba’s vacancy rate is stabilising at 1.1%, after dropping all year.
New South Wales’ biggest regional centres, Newcastle and Wollongong, have vacancy rates in line with the national average – 2.1% and 1.9% respectively. Head west of Sydney and it’s not so rosy – in Orange, where the 2011 census confirmed a substantial population drop, vacancy rates have climbed sharply to sit at 3%. Further west, Dubbo is still a star at 1.4%, as is country music capital Tamworth at 1.5%. On the north coast, Port Macquarie has dropped to 1.8% while Coffs Harbour remains relatively steady at 2.1%.
The vacancy rates in regional Victoria are consistently above the national average. Geelong dropped to 2.4% in July after a sudden spike in May. Ballarat’s vacancy rate also dropped in July, to 2.4%, after climbing all year – and it’s a similar story in Bendigo, where vacancies are currently at 2.2%. The rate for Albury-Wodonga, on the NSW-Victorian border, has also climbed to about 2% combined.
Head over to WA – the nation’s GDP powerhouse – and regional rental accommodation isn’t so easy to come by. Mandurah and Geraldton are both boasting low vacancy rates of 1.2%, but Bunbury’s rate is zero – and has been for nearly two years. Even Perth is leading the capitals, with a vacancy rate of 0.7%. It looks like we’ve worked out where everyone’s moving to! Only tiny Karratha appears to be bucking the WA trend, with an unusually high vacancy rate of 4.3%. Perhaps it will settle down after its massive growth spurt and construction phase.
In South Australia, Whyalla is coping well with its Olympic Dam demands (before yesterday's announcement that the mine expansion would not be going ahead) – the vacancy rate has dropped to 1.9%, down from nearly 10 times that figure just two years ago. Port Lincoln is down to 1.5%, while Port Augusta has been rising dramatically only to pull back in July to 2.1%.
Things are a bit crook in poor old Tassie. Vacancy rates have practically doubled in both Hobart and Launceston in two years, with Launceston still climbing and currently sitting on 3.9%. It’s good news for retiring baby boomers arriving from the mainland with smaller post-GFC nest eggs – but very bad news for existing investors. The 2011 Census also confirms Tasmania lost more people to the mainland in the decade from 2001, than it gained. It’s a long road ahead when their bright young sparks are all moving to… well, Perth and Mackay.
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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Vacancy rates tight in Perth and Mackay, but other areas not so lucky

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Spring means good weather, more people venturing outdoors, gardens looking great, and plenty of leeway to coordinate a move that will minimise disruption to the school year and Christmas holidays, etc.
And then there’s the nitty-gritty to be worked out when selling a property:  choice of agent, sales method, asking price, marketing budget, and, of course, timing.
If considering listing your house for sale by auction, a study by Brisbane-based JA group suggests that the weather can have a substantial influence over the outcome for auctions being held on-site.
JA did a sample across 364 auctions, cross-referencing numbers attending with outcomes, clearance rates and the type of weather.
The study found that as the weather deteriorated, not only did the numbers of attendees drop, as might be expected, but the auction clearance rates also fell.
An auction clearance rate is the most commonly cited benchmark for the relative heath of a residential property market.  The rate reflects the reported percentage of auctions that were successful.
On just over half of the occasions, when the weather was deemed to be “great”, an average of 31 people were recorded at each of the auctions, leading to an average of 1.64 bidder registrations and a property clearance rate of 48%.
On 27% of the occasions with “good” weather, attendees dropped to an average of 22, with bidder registrations at 1.2.  The auction clearance rate also dropped to 36%.
A further 11% of auctions occurred in weather that was deemed to be “ordinary”, and in these conditions attendees dwindled to 16, with bidder registrations averaging 1.5.  The clearance rate hovered at 38%.
“Very ordinary” weather occurred for the remaining auction sample.  And here, I do have to interject that in spite of our recent rains, “very ordinary” might well mean “spectacular” to those folks in the southern parts of the land, and yes, we are spoiled up here in the sunshine state.
The average crowd size and bidder registrations remained about the same, but the gloomy weather caused the clearance rate plummet to 18% – a full 79% drop from the auction results recorded on great weather days.
So, there’s no solid scientific data to back up any conclusions here, but hey, I’ve seen heavier bets placed on far less credible data.  And I must admit it makes sense. One thing agents do agree on is that optimal weather conditions are conducive to optimal sales results, though this doesn’t mean that a good sales result is doomed due to overcast weather conditions.
This study suggests that for auctions, agents may want to consider creative ways to ensure healthy attendance numbers and buyer activity; and sellers may wish to re-evaluate the time of year to sell, and whether to consider an in-room rather than on-site auction.
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.wordpress.com%20/" 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 better the weather, the more likely the property sale: Michael Matusik

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Rules are made to be broken – just ask any teenager.
But while I’m not always a “rules” kind of guy either, experience has taught me a thing or two about following the right ones.
If you dropped into the Sydney Home Buyer &amp; Property Investor Show last month – here’s a scene, below – you’ll already know that I have 10 rules for successful investment buying.
<img src="/images/stories/2012/08/sydney-home-buyer-show.jpg">
They have evolved over time – almost 30 years in the industry.  With that kind of exposure, and having helped hundreds of new residential projects come to fruition throughout the country, I’ve been able to see firsthand what works and what doesn’t when it comes to buying investment property.
My rules apply to “passive” investors – the “set and forget” types (which is the vast majority of the market – more than 90% of investors, according to recent survey results) and not to the “renovator junkies”, as I like to call them.  And before you shoot off a comment, there’s nothing wrong with getting your hands dirty, heck I have done it many times before; but if you just want to buy and forgot, then these rules apply to you.
Here are my 10 rules to help you buy well.
The property must be:
<ol>
<li>New, or at least recently renovated, to maximise depreciation/tax return and gross rental returns.</li>
<li>In a small or multi-staged development.  Preferably under 50 dwellings.  Large properties should not be ruled out.  They must, however, have substantial points of difference, i.e. well-proportioned and well-appointed apartments; quality facilities and finishes; and good access.</li>
<li>In a strong location – “infill” highly favoured, with high existing amenity; a great “walk-score”; and more importantly, potential for above average mid- to long-term capital growth.</li>
<li>In an area with five or more pillars of economic support, including cumulative demographic/rental demand and high employment/wages growth.</li>
<li>Within five minutes of “hard-core” infrastructure i.e. major work nodes; secondary schools; entertainment precincts and public transport, especially rail.</li>
<li>Delivered by a proven development team.</li>
<li>High quality in terms of design, materials and construction.  It must require minimum maintenance.</li>
<li>End prices under $600,000; better still, less than $500,000; and they must yield more than a 5% gross rental return.</li>
<li>Limited new dwelling supply when compared with underlying demand.</li>
<li>Sold with independent API registered valuation support and within an acceptable range of sales/marketing commission.</li>
</ol>
So, stick to the 10 and you’ll make millions?  Well, short answer – there are no shortcuts and no guarantees.  But by following my 10 rules I believe you can, with a little effort and knowhow, convert a modest deposit into a sizeable next egg.  But (yes, there is always one) don’t do it blind-folded – seek independent investment advice, have at least a 10% deposit, and have a truly spare $100 per week available to afford to buy that investment property.
So that was just the preamble – there’s more!  If you would like to receive our Matusik Insights report <a href="https://www.matusik-sydney.com.au/">What To Buy – 10 Rules For Better Investment Buying</a>, just register for your copy.  And folks – it’s free, just for you.
Michael Matusik is the founder of <a title="blocked::https://www.matusik.com.au/" 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 title="blocked::https://www.matusikmissive.wordpress.com /" target="_blank" href="https://www.matusikmissive.wordpress.com%20/">Michael's blog</a> or follow him on <a title="blocked::https://www.twitter.com/michaelmatusik" target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a title="blocked::https://www.linkedin.com/in/michaelmatusik" href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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The 10 rules for successful 'set-and-forget' property investment

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Lower interest rates and lower prices have improved housing affordability.  CommSec reports that rate cuts have helped to lift consumer sentiment about buying a dwelling, according to the Westpac Melbourne Institute Index of Consumer Sentiment, with improvement last month in the “time to buy a dwelling” index as well as the “time to buy a car” index.
However, concerns about the economic outlook and job security remain at the forefront; and overall sentiment sits at 1.7% below the level recorded in October last year, despite a 125-basis-point reduction in the cash rate that has brought the average standard variable mortgage rates down by nearly one percentage point.
But an interesting perspective comes this week from Crikey –  while we appear to be plagued by low levels of confidence (and could well do without the incessant negativity of federal politics), Aussies are buying new cars in near record numbers, travelling overseas – also in near-record numbers – and buying over the internet, both at home and abroad, in growing quantities.
And somehow, while managing to consume at fairly high levels, we are saving at rates of 9-10% a year.
There are many factors at play here, and clearly we need more solid ground to stand on; but could it be that we just don’t know how well off we are?
There is also good news on the housing front, with rising home prices and a pick-up in new home sales.
The back-to-back lift in house prices is encouraging.  Across Australia house prices have risen by 1.6% over the past two months, according to RP Data, and while that may not sound all that exciting, it is the biggest two-monthly increase in property prices in over two years and a welcome turn from a period of sustained weakness.
The ABS house price data, out this week too, finds a similar trend, with established house prices up 0.5% over the last three months, against an annual decline of 2.1% nationally.
These results highlight the underlying strength in residential property and that the market appears to have bottomed out.
In addition, housing activity has shown signs of improving, with new home sales rising for the third consecutive month.  It must be stressed that these gains come after new home sales reached a decade low earlier this year.  So they are off a low base.
It is clear that the sector is crawling off of the floor (basement, really), however the fundamentals for housing remain solid and while the sector is likely to remain in a period of consolidation in the near term, there may be light at the end of the tunnel.
Importantly, not only has there been a modest pick-up in sales/price activity across the sector, but rental vacancy rates remain strong, rents continue to rise and many investment properties are starting to show gross rental yields well into the 5% range. 
While builders are likely to continue to compete hard for available work, home owners are likely to see the value of their homes rise over the year.
Many forecasters are now tipping prices to rise over the remainder of calendar 2012.  We think – assuming one last drop of 0.25 percentage points in the cash rate later this year – that a rise of 2% or 3% in the price of generic housing across Australia over the next five months isn’t out of the question.
What to buy when buying property
Rules – I’ve got 10 of them when it comes to successful investment buying.  Here’s just a sample:
Rule 1: Select new or at least recently renovated property to maximise depreciation/tax return and gross rental returns.
Rule 2: Choose a small or multi-staged development – preferably under 50 dwellings; large properties should not be ruled out, but should have substantial points of difference.
Rule 3: Buy in a strong location – “infill” highly favoured, with high existing amenity; a great “walk-score” and more importantly, potential for above average mid-to-long term capital growth.
Next Wednesday’s Missive will elaborate – so pencil in the read.
But if you can’t wait and you’d like to register for a free copy of my presentation, <a target="_blank" href="https://www.matusik-sydney.com.au/">What to buy – 10 rules for better investment buying, just click here.</a>
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank" title="blocked::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.wordpress.com%20/" target="_blank" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a> or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank" title="blocked::https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" title="blocked::https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>. 
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Consumer sentiment up and home prices rising

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The Gold Coast’s population could rise by 135,000 people over the next 10 years. Past trends suggest this means that between 50,000 and 55,000 new dwellings will need to be built over this 10-year period.
Also (and despite the recent 2011 Census babble – a topic for a future missive), it is unlikely that there will be any meaningful change in the composition of the household structure on the Gold Coast over the next decade. For example, the proportion of couple households without children is projected to increase from 30% today to just 31% by 2021. Similar minor shifts are forecast across all Gold Coast household types. This is largely because three quarters of the population growth on the coast comes from migration and most migrants to the region are young.
Also, the rate of natural increase (ie. births over deaths) has more than doubled across the Gold Coast over the last 10 years. In the early 2000s, natural increase accounted for just 10% of the population growth across the coast. Last year its contribution rose to 25%. This significant increase in births is likely to boost demand for new and affordable detached housing on the Gold Coast in coming years.
Official statistics also suggest that two of the largest growth segments on the Gold Coast over the next decade will be those aged between 25 and 40 years of age and those aged in their late 60s to early 80s. Many, in both demographic growth groups, will be financially constrained.
The younger segment will be looking to buy their first home, and the older group to potentially downsize. Affordable housing options will have the most appeal. Both groups are expected to take a 25% market share of the population growth projected across the Gold Coast over the next decade.
Some recent new housing trends:
<ul>
<li>Just over half (53%) of the new dwelling approvals over the past seven years across the Gold Coast have been for detached houses. Yet over the last two years, detached housing market share has increased to over 60%.</li>
</ul>
<ul>
<li>Close to two-thirds of the “other dwellings” approved across the Gold Coast, again over the last seven years, have been multi-storey apartments, and most were either in Surfers Paradise or in Southport. Many target the short-term tourist market. Just one-third were townhouses. Townhouses are much more affordable than apartments and are typically built for permanent residents. In previous decades (the 1980s and 1990s), most (over 60%) of the attached product approved on the Gold Coast was townhouses. This provided an affordable housing option, which is currently missing on the Gold Coast.</li>
</ul>
<ul>
<li>Two-thirds of the detached houses approved on the Gold Coast are on allotments sized between 450 and 800 square metres. Just under half are still on land between 600 and 800 square metres in size.</li>
</ul>
<ul>
<li>Over the last nine years (calendar 2002 to 2010), there have been 30,500 residential lot approvals (including building units and community title schemes) across the Gold Coast. Over three-quarters (77%) of these have been approved in larger developments with over 50 or more dwellings. Just one-in-six (16%) have been in projects containing between 21 and 50 dwellings and just 6% in projects holding fewer than 20 dwellings.</li>
</ul>
<ul>
<li>Fewer new dwellings, including attached product, are actually being accommodated in “infill” areas across the Gold Coast. Three years’ worth of data now exists in that regard and it shows that in 2008, 72% of the total new dwellings approved on the Gold Coast were within the city’s existing urban area. During 2009 this proportion fell to 57% and during 2010 it was just 51%.</li>
</ul>
Further observations
The existing demographic make-up of the Gold Coast, and in particular its emerging shape, strongly suggests the need for more detached housing. In addition, there are not enough alternate – and more affordable – housing types being supplied onto the Gold Coast market. These alternate housing types include not only townhouses, but terrace homes, “plexes” and in some cases, suburban-based apartment product.
Current trends suggest that the Gold Coast will not be able to accommodate the projected population growth within its existing urban area.
Most of the new development across the Gold Coast takes place within large developments. Increasingly, such large-scale developments cannot be accommodated in “infill” situations. Fragmented ownership plus, now, the rise of NIMBYism, has limited the number of economic development opportunities within the Gold Coast’s existing urban area. Higher purchase costs, smaller dwelling sizes and buyer/end-user profiles are also making new “infill” development less suited to most Gold Coast residents.
The Gold Coast needs to increase its supply of affordable new housing. This needs to be supplied in locations where permanent residents can afford to buy or rent. This can, increasingly, only be achieved outside of the existing urban area and on green-field or broad hectare sites within the urban footprint and in well-serviced locations.
In the immediate and short-term, the market will not bear the entrenched approach, which focuses much of this attention on delivering attached unit dwellings in close proximity to the coast. A better approach would allow for current market conditions (and emerging demand) by leaving open the possibility of more detached housing-based developments.
The irony is that the Gold Coast is actually one of the most undersupplied housing markets in Australia. What is supplied has very little demand, and way too much of it is focused around lifestyle and the discretionary spend. Not enough supply is focused on real life.
The Gold Coast needs to start thinking like a capital rather than a tourist destination or sea change location.
Michael Matusik is the founder of <a target="_blank" rel="nofollow" href="https://www.matusik.com.au">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Readers can follow <a target="_blank" rel="nofollow" href="https://www.matusikmissive.wordpress.com">Michael's blog</a> or follow him on <a target="_blank" rel="nofollow" href="https://www.twitter.com/michaelmatusik">Twitter</a> – five tweets a day, some of which are on the property market.
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The Gold Coast needs to think like a capital rather than a tourist city: Michael Matusik

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Our kids are now all back in school.  It happens every school holidays: the traffic drops dramatically when schools are out and becomes almost unbearable when they return.  The first half of the year is also much worse – well, that’s my observation anyway – than the second part.
Recent posts by Alan Davies of <a target="_blank" href="https://blogs.crikey.com.au/theurbanist/">The Urbanist</a> have uncovered some interesting statistics when it comes to how our children get to and from school.
When it comes to primary students, 70% of our little tackers get driven to and from school.  It is good to see that just over 20% walk.  The balance (7%) either catch some form of public transport or cycle.  One would expect such.
Secondary students, in contrast, are a much more lethargic bunch.  Just under half of our teenagers get driven to school.  True, fewer get home that way, but still up to half get a lift with mum or dad in the mornings.  About 18% actually walk to/from school and fewer than 5% cycle.  One in three catches public transport.
Looking back 20-odd years ago shows a different pattern, with close to half of our high school students catching public transport back in the late 1980s.  One in 10 rode a bike; close to one in five walked and just 30% got a lift.
It is very likely that the rise in car ownership, two-income households being more the norm and some well published child-related crimes, especially in Queensland, have all had an impact on this trend.
But also – and I have two teenage daughters and we are as guilty as the next family – we are surely mollycoddling our teenagers way too much.
I had to take several modes of transport to get to and from school – plus walk through thick snow without shoes – when I was growing up in western Sydney.  Did my parents refuse to take me to school?  Well, there were stricter rules in their house than ours, but there was no way I was going to miss out on the “goss” on the bus or train – and besides, where else did you chat up girls, collect fags – cigarettes of course – copy each other’s homework, set up dates, make out and see which party you were going to crash on the weekend?
This is what being a teenager is all about.  And yes, you got into several scrapes, but mostly sense prevailed and lessons were learnt.
I believe that many of our kids today want more freedom – which includes getting to and from school – but we as parents are way too controlling.  We seem to relent as the year goes by; hence the drop off in school-related car travel at the back end of the year.
Most of Australia’s major urban spaces are trying to deal with increasing traffic congestion.  The solutions aren’t always about building more roads or implementing new public transport systems.  More discussion needs to be centred on changing behaviour.
Our teenagers – in the main – should not be driven to and from school.  More should catch public transport, walk and cycle to and from school.  If that means more police on the beat, then so be it.  This would be much cheaper than building another by-pass, tunnel or widening our arterial roads.
School times should also be offset against peak-travel times or staggered across our cities.  I have spoken to many teachers and parents about such and in every case this suggestion gets a positive reply, plus a bit of a surprise as to why this hasn’t been brought up as a solution before.  It isn’t that insightful – just plain logic.
But when it comes to government, why implement a simple and very cost-effective solution when a much more complicated and expensive alternative exists?
Changing the way teenagers travel to and from school isn’t a panacea for solving our urban traffic issues, but it is just one way to maybe improve the status quo without spending lots of money.  The public purse isn’t big enough these days to go for the ultimate solution.  We need get the most out of what we already have.
Oh, and before I go, there is a strong connection between residential prices and being within close commuting distance to a good secondary school.  According to ANU economist Andrew Leigh, a five-point rise in a school’s UAI score (equivalent to TER or ENTER in other states) leads to a $13,000 increase in house prices in the catchment area.  Similar research in the UK and the US has suggested good schools boost house prices by between 3% and 5%.
Our qualitative research with family groups has found that proximity to a good school is a higher priority than, say, having a city view or being close to major open space.  Our research has also found that homes within a half kilometre radius of a public secondary school grew by about 3% more per annum when compared to the wider city average.  A higher multiplier was found when looking at private secondary schools, which had close to twice the rate of growth when compared with the city-wide average.
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.wordpress.com%20/" 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>.
Photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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The impact lazy teenagers have on traffic, the econony and house prices – or why you should not drive your kids to school

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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