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With the amount of popularity renovation shows multiplying over the last decade, many people now chose to go down the DIY path to spruce up their homes and investments.
Last year the value of alterations and additions to residential buildings was estimated to be over $500 million, according to the Australian Bureau of Statistics.
All up, investors are claiming $25 billion worth of rental reductions every year.
With the help of Tyron Hyde and his book, <a href="https://www.claim-it.com.au/" target="_blank">Claim It! A Property Investor’s and Developers Guide to Depreciation</a>, Property Observer takes a look at 10 depreciation considerations for every renovator.
<img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;">What you are claiming?
Around June every year the Australian Taxation Office (ATO) issues a warning to property investors to be careful about what they claim. Their major warning is aimed at people who are claiming repairs. Investors often claim repairs that are illegitimate. Things such as renovations or replacing broken features are not repairs; rather they are capital improvements, something that an investor cannot claim. This can be a gray area and can get quite confusing.
Consider these questions before deciding whether you can claim the work as a repair or whether you need to depreciate the work over time:
<ul>
<li>Was the work related to the wear and tear of the property while it was an income producing asset for you?</li>
<li>Were the repairs carried out when you initially brought the property? If so, these are defined as ‘initial repairs’ and cannot be claimed as an outright deduction.</li>
<li>Did you replace a whole item in its entirety? If so this is not a repair</li>
<li>Did you improve the material when you carried out the work? If so, this is called a capital improvement, not a repair, and is to be depreciated. </li>
</ul>
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;">There is more to making a profit than just a good renovation
One of the major mistakes investors make is having a mindset of: “The faster the completion, the sooner the returns”. Although in some cases this is true, at other times investors are so fixated on improving their properties that they miss out on gains that they could have been getting even while they are still planning out their renovations.
The point is to always be on the lookout for things that can turn a profit.
<img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">What are you getting rid of?
Throwing away items that can later be claimed as depreciation assets is a mistake that investors commonly make. When renovating a property, its old unusable features (e.g. an old dishwasher) can still be claimed as a tax deduction. In the situation where the item cannot be recovered after being thrown out, with photographic proof and the help of a quantity surveyor it can still result in you gaining some return on the item.
It is important to note that the property must have been earning income for some time before the purchase was made in order to claim any residual or scrapping value. 
<img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">Identify the values of your items
The values of old items in your property are the basis of the tax deductions you can get at the end of the first year of ownership. Without these values no tax deduction can initially be calculated.
So before throwing away old items in your income producing property identify the original values of these items by holding an inspection with a quantity surveyor.
<img src="/images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">Finishing a depreciation schedule in time
The depreciation schedule you get on your property before renovation starts backs up your depreciation claims on old assets. It doesn’t back up any new assets put in once the house has been renovated. In order to claim these new assets a new depreciation schedule must be conducted before renovation finishes.
Article continues on the next page. Please click below.
 
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<img src="/images/2014/07/04/yellow-six.jpg" alt="" style="float: left;">Know what can be written off
Once renovations have been completed many investors think they can start writing off any newly installed assets, but this is not the case. A new item has to depreciate over its useful lifetime or the time frame specified for that item to last, before it needs replacing. As mentioned earlier you can run into many problems with the ATO when trying to claim something that is not a repair.  
<img src="/images/2014/07/04/yellow-seven.jpg" alt="" style="float: left;">Items you can’t depreciate
Although we can claim the depreciation of a property investment as a tax deduction not all construction costs are eligible to be claimed.
Here are some of the things that don’t qualify:
<ul>
<li>Demolition costs</li>
<li>Site clearing- It is important to note that excavating the site for a basement can be claimed as that’s considered part of the new basement </li>
<li>Landscaping- Landscaping elements such as retaining walls and concrete elements can be claimed. Plants don’t qualify- If it grows, you can’t claim it.</li>
<li>Developers profit</li>
</ul>
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-eight.jpg" alt="" style="float: left;">Depreciation on older properties
For properties built before July 1985 you cannot claim any building depreciations. But if a property built before this time is then later renovated you can, in most instances claim depreciation on the renovation. As long as the renovation took place after 1985, you are entitled to depreciate them.
A renovation on an older property that includes carpets, new blinds, a new bathroom and a new kitchen could cost up to $25,000. These assets can have big depreciation returns because the items being replaced have a relatively low effective life, this is the reason they needed replacing in the first place. Depreciation benefits like this can be up to $5,000 to $7,000 in just one year.  
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-nine.jpg" alt="" style="float: left;">Factors that the ATO use to categorise items under building or plant allowance
You can choose the effective lifetime or depreciation rate of an item that comes under the plant allowance. But for items that come under the building allowance category they must be claimed at 2.5 percent per annum. By knowing how the ATO choose what assets go into what category you can get a better understanding of what claims you can get on your assets.
The ATO determines which items go into each category based on factors such as:
<ul>
<li>The degree of affixation to the property</li>
<li>The physical life of the asset</li>
<li>Manufacturing specifications</li>
<li>Industry standards</li>
<li>The level of repairs by users of the asset</li>
<li>If the asset is leased</li>
</ul>
Source: Tyron Hyde, Claim It!
<img src="/images/2014/07/04/yellow-ten.jpg" alt="" style="float: left;">The Tax Commissioner believes the “manufacturing life” doesn’t necessarily equal the effective life
This is important to consider because the Tax Commissioner determines many assets to last for 40 years when they might not necessarily last that long.
Here is a list of items that the Tax Commissioner believes will last for 40 years but most likely won’t:
<ul>
<li>Kitchen cupboards</li>
<li>Light fittings</li>
<li>Shower Screens</li>
<li>Taps</li>
<li>Vanities</li>
<li>Floor and wall tilings in wet areas</li>
<li>Wet areas ceilings</li>
<li>Painting</li>
</ul>
Source: Tyron Hyde, Claim It!
What the tax commissioner fails to understand is that not only do some of these items fail to be effective for 40 years but also, in many cases these items need to be updated for style reasons as investors need modern assets to attract new tenants. 
It’s good to know what you’re entitled to and if you don’t find someone who does who can help you.  
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About to renovate? The 10 depreciation considerations for every investor

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A retail store in Sydney’s newest economic precinct, The Quay, has been sold for $2.95 million to a Hong Kong investor.
Shop 7, at 61 to 79 Quay Street is 82 square metres and is located near Central Station, Darling Harbour and Chinatown. It is currently being leased by the Chinese noodle bar- Two Sticks, on a new five year lease with two five year options. Two Sticks became popular in Sydney after opening a store in George Street earlier in the year.
The space will receive $180,000 per annum in gross rental income and comes with a fixed four percent annual increase. 
The property was sold by Andy Hu of Knight Frank, on behalf of Connoisseur Investment. Hu said properties such as these are rarely put on the market.
"We have seen a large number of offshore investors especially from Hong Kong, actively searching for quality prime strata retail investment opportunities and the investment yield has tightened further due to limited supply on the market," Hu says. 
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Hong Kong investor snaps up retail store in Sydney's The Quay

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Colliers International is selling a 285 square metre floor space on the corner of Exhibition Street and Flinders Lane and expects prices upward of $2.2 million.
The property is on level 11, 41 Exhibition Street in one of the cities newly designed buildings, located in the Paris end of Melbourne’s CBD.
It is within walking distance of Parliament Station and Flinders Street Station and also has several public car parks within a close distance.
Colliers International says that it is a 5 Star Green Star building and the first carbon neutral commercial building in Melbourne.   
The floor is being sold by International Colliers’ Jeremy Gruzewski, National Director Metro Sales, Daniel Wolman, Senior Executive Melbourne City Sales and Oliver Hay, Executive Melbourne City Sales.
They are currently offering the sale via expressions of interest closing 3 December.
<img src="/images/2014/11/19/41X%20Hero%20-%20Mark%20Up%20no%20number.jpg" alt="">
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Melbourne CBD office floor tipped to fetch $2.2 million plus

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Confusion with capital works is costing tenants and landlords thousands of dollars on legal fees that can easily be avoided, according to Opteon Property Group.
Confusion often comes after a rent review, especially if a tenant has made changes to the property, such as installing a lift or painting the outside of the building. When a rent review is conducted these new capital works are taken into account and rent can therefore rise.
“Even though landlords are obligated to undertake capital works on a tenant’s behalf, tenants often decide to undertake capital work themselves, and it is this scenario that disputations can arise,” says David Tunbridge, head of Opteon Victoria Hospitality Department. 
According to the Retail Leases Act (2003) the landlord is responsible to undertake any capital works, which are classified as structural works that will end up becoming the property of the landlord after the lease expires, should they be required. However, a tenant’s responsibility to add features to the property only covers things such as installing air conditioners and sometimes kitchen and bathroom amenities.
Tunbridge recently made a property valuation where the landlord leased a former church building with the intention of converting it into a restaurant.
“The prospective tenant has committed to a lease and will be undertaking a significant internal fit out, as well as making substantial capital works to the premises,” he said.
“The lease provides for an initial one-year term together with three further terms of five years with a market rent review to apply at the commencement of each further option term.
“In this instance we can see that clearly the tenant is exposed, as the capital works will need to be assessed in determining the market rent should the tenant exercise its option to renew the lease.
“If the tenant’s business fails, and the tenant vacates after the initial one year term, then the landlord stands to make significant gains by receiving an improved and upgraded building.
“Alternatively if the tenant renews the lease for a further 5 years, then the market rent will be increased to reflect the works undertaken by the tenant as there is nothing written in the lease to the contrary.
“This is an unfortunate situation whereby only one side can benefit and is clearly unfair to the tenant.”
However, Tunbridge believes there is a simple solution to this problem. If capital works are going to be undertaken by a tenant, he believes that a written agreement between tenant and landlord would give both parties an understanding of what capital works will do to the rent value come rent review time.
“If both parties meet, talk and agree on how best to share the cost of capital works before they are undertaken, it can be a win-win for both sides,” he said.
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Capital works confusion costing tenants and landlords

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Real estate group Raine and Horne have raised more than $21,000 towards cancer awareness and research throughout 2014, donating portions of their fees for every house sold in South Australia to the Cancer Council South Australia.
Over the third quarter of this year alone they have raised $7,000. 
But it’s not only cash that the group has donated. Raine and Horne’s 150 current South Australians employees have also devoted hours of their own time to vital Cancer Council initiatives such as the Be SunSmart crusade, Bowel Cancer Screening and Cancer Help Line (13 11 20).   
According to Cancer Council Australia, one in two men and one in three women will be diagnosed with cancer before they turn 85.  
“Every day, 25 South Australians are diagnosed with cancer and these funds will ensure that we can continue to support ongoing research,” says Cancer Council SA Chief Executive, Professor Brendan Wilson. 
One of the biggest advocates for these contributions is Gary Dawe, Co-Principal of Raine and Horne Meadows and Raine and Horne Strathalbyn.
“My father was diagnosed with bowel cancer in his 50s and prostate cancer in his 60s” says Dawe.
After witnessing his father’s battle with cancer and the support he got from the Cancer Council, Dawe has provided a lot of support by helping organise the annual Meadows Country Fair, which financially supports Cancer Council SA.
“He was able to recover from both cancers, although prostate cancer eventually caught up with him – he made it into his 80s and the support of the Cancer Council SA was fantastic,” Dawe said.
Michael McDonald, CEO, Raine and Horne South Australia, says they are contributing to numerous types of cancer research and awareness programs.
“As a primary sponsor of Cancer Council SA, and its Community Action Van, we are committing much more than cash – and have mobilised the substantial resources of our 26 offices in South Australia in support of major events such as Daffodil Day, Girls Night In, Pink Ribbon Day, Biggest Morning Tea and Relay for Life in 2014,” says McDonald.
The Cancer Council’s and Raine and Horne’s partnership started in 2008 and continues to raise money for the research and awareness of cancer throughout South Australia.
“It remains so important that we contribute to raise awareness that through healthy eating, being SunSmart, remaining active and not smoking, people can reduce their risk of cancer,” said Wilson. 
Raine and Horne will continue with their donations in a ‘long-term’ partnership which will see thousands more dollars go towards cancer support.
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Raine and Horne are selling houses to help fight cancer

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Vermont South is located in the outer eastern suburbs of Melbourne, 34 minutes’ drive from the CBD.
It is surrounded by <a href="/news">Glen Waverley</a>,<a href="/news"> Wantirna South</a> and <a href="/news">Burwood East</a> and has a population of 11,972 people, according to the Australian Bureau of Statistics.
In 2005, tram route 75 was extended to the Vermont South Shopping Centre, connecting Vermont South to Melbourne’s inner suburbs and the city. There is also a bus transit link which travels to Knox City Shopping Centre.
Vermont South is home to Emmaus College (year seven to 10 campus), Vermont South Special School and primary schools; Weeden Heights and Holy Saviour. The hub of the suburb is the Vermont South Shopping Centre which includes several restaurants and a Coles Supermarket. It is also within five kilometres of major shopping centres; Knox City and The Glen. 
The suburb is also home to 20 parks, covering nearly a third of the suburb.
A famous Vermont South landmark is Pin Oak Court (pictured above), the filming location for ‘Ramsay Street’ from the television show, Neighbours.
RP Data shows that Vermont South’s current median house price is $791,500. This price has seen a steady rise, falling as low as $651,000 in 2013. Over the last 10 years it has risen by more than $300,000. Vermont South’s median price is lower than other suburbs in the area such as Wheelers Hill, which has a median house price of $838,000, and Blackburn, $1,012,500, according to RP Data.
The bulk of dwelling types in Vermont South consists of separate housing with very little flats or semi-detached housing available. Most of the homes in the suburb are occupied by families (79.8%, according to RP Data) with almost half of the properties being fully owned. RP Data says that on average Vermont South families will be repaying $1,800-$2,400 per month on mortgage repayments.
This four bedroom home at <a href="https://www.realestate.com.au/property-house-vic-vermont+south-118286347" target="_blank">2 Yalita Road</a> (pictured below) is currently on the market with a price guide of $800,000 to $880,000. 
<img src="/images/2014/11/14/vermont%20south%20nov%2014%20one.jpg" alt="">
According to RP Data 10.2% of residents in Vermont South are currently renting. The median rent price per week is $465.
This three bedroom property at <a href="https://www.realestate.com.au/property-house-vic-vermont+south-414429135" target="_blank">8 Shearers Court</a> is offering a renting price of $460 per week.
<img src="/images/2014/11/14/vermont%20south%20nov%2014%20two.jpg" alt="">
Andrew Wilson, senior economist for the Domain Group, believes outer east Melbourne offers strong potential growth.
“The whole outer eastern belt of Melbourne is a strong growth region. It’s been Melbourne’s strongest growth region for last two years with 12.7% growth rate, which is equal highest with inner east prices,” Wilson said.
“Vermont South goes under the radar compared to other suburbs such as Blackburn.”
But he says Vermont South is still not cheap.
“The outer east has had Asian buyers in Mount Waverly and Glen Waverley which has helped push prices up” 
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Suburb spotlight: Vermont South, a neighbourly suburb with strong potential growth

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With summer heating up, there's few better places in Melbourne to sit and relax then a rooftop or balcony.
While many bars, restaurants and even cinemas are taking advantage of elevated open spaces, many residential offerings provide a personal oasis amongst the heat of summer.
Here are five of Property Observer's five favourite balconies  with great view currently available: 
<img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;"> <a href="https://www.realestate.com.au/property-apartment-vic-south+yarra-118347599" target="_blank">7/20 Airlie Bank Lane, South Yarra, VIC</a>
<img src="/images/2014/11/13/south%20yarra%20nov%2013%20one.jpg" alt="">
First off is a three bedroom apartment with a price range of $2.3 million- $2.8 million. It has a city view which includes a touch of the surrounding botanical gardens.
It won Houses magazine's apartment of the year in 2012.  
The balcony is a major feature of the apartment with a unique view of the city. The terrace also has a great view, overlooking South Yarra.
<img src="/images/2014/11/13/south%20yarra%20nov%2013%20two.jpg" alt="">
<img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;"> <a href="https://www.realestate.com.au/property-apartment-vic-docklands-118081347" target="_blank">2302/1 Point Park Crescent Docklands Vic </a>
<img src="/images/2014/11/13/docklands%20nov%2013%20one.jpg" alt="">
Here we have a balcony with a view of the Docklands and the city.
It is a two bedroom apartment and is priced at $860,000.
The balcony is seven metres swared and is central, expanding the living space outdoors and with floor to ceiling windows it captures views of the water and the city.
With the positioning of the balcony it is possible to create an open flow effect through the apartment with the view being the central feature.
<img src="/images/2014/11/13/docklands%20nov%2013%20two.jpg" alt="">
<img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;"> <a href="https://www.realestate.com.au/property-apartment-vic-st+kilda-118059735" target="_blank">1002/181 St Kilda Road St Kilda Vic 3182</a>
<img src="/images/2014/11/13/st%20kilda%20nov%2013%20one.jpg" alt="">
This St Kilda apartment has views across the bay and out to the city.
Situated in the recently completed Maxx boutique apartment building on the 10th floor, this two bedroom apartment has a panorama view of St Kilda Beach, Albert Park Lake and the city skyline.
It has an open plan living which leads into the balcony.
The apartment is a short walk from Albert Park Lake and public transport to the CBD.
It is currently under contract for $590,000.
<img src="/images/2014/11/13/st%20kilda%20nov%2013%20two.jpg" alt="">
<img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;"> <a href="https://www.realestate.com.au/property-apartment-vic-richmond-118207303" target="_blank">311/253 Bridge Road Richmond Vic 3121</a>
<img src="/images/2014/11/13/richmond%20nov%2013%20one.jpg" alt="">
A smaller apartment compared to the rest on the with a view looking out over Richmond.
Located on Bridge Road in the heart of Richmond, this is a one bedroom apartment on private sale at $459,000.
The floor plan allows an open living style that emphasises the views the balcony has to offer.
<img src="/images/2014/11/13/richmond%20nov%2013%20two.jpg" alt="">
<img src="/images/2014/07/04/yellow-five.jpg" alt="" style="float: left;"> <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-118411639" target="_blank">2508/8 Downie Street Melbourne</a>
<img src="/images/2014/11/13/melbourne%20nov%2013%20one.jpg" alt="">
A balcony that gives you a view of Yarra River, Southbank and Port Phillip Bay.
Located near Etihad Stadium, Southern Cross Complex and the Crown Casino Complex, this two bedroom apartment is selling for $390,000.
<img src="/images/2014/11/13/melbourne%20nov%2013%20two.jpg" alt="">
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Five balconies with fantastic views of Melbourne

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The Ray White Group set a new all-time record for the company in October, recording $3.5 billion worth of sales across Australia and New Zealand.
The New South Wales branch managed to earn $1.1 billion dollars in sales, while the commercial division was up 90% on this time last year.
Group chairman, Brian White said the results reflect “the best property market in memory”.
“We saw commercial markets producing fabulous results in all sectors. The power of the property market in Sydney stood out more than ever this month,” White said.
Ray White’s<a href="/expert-insights/investing/ray-white-secures-record-3-billion-in-wintery-july-2014-property-sales"> last record sales month</a> was back in May of this year, when they posted a $3.2 billion net return.
The best performing Ray White offices in October included Glen Waverley (VIC), Double Bay (NSW), Remuera and Auckland Central Commercial (NZ) as well as New Farm, Surfers Paradise and Ascot (QLD).  
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Ray White achieve new monthly record on the back of soaring commercial returns

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Sydney’s One Central Park has beaten nominees from every continent to be dubbed the ‘Best Tall Building in the World’ by the Council on Tall Buildings and Urban Habitat (CTBUH).
One Central Park was designed by French architecture practice Ateliers Jean Nouvel and Australian firm PTW.
In June, One Central Park was awarded the ‘Best Tall Building in Asia and Australasia’ which put it in the running for the world’s best tall building. It was up against regional winners; Edith Green-Wendell Wyatt Federal Building, Portland, USA (Americas); De Rotterdam, Rotterdam, Netherlands (Europe); and Cayan Tower, Dubai, UAE (Middle East &amp; Africa).
The building has foliage covering some exteriors and is designed to manoeuvre sunlight into fixed positions. It also has a suspended sky garden on the 29th floor.
Juror and executive director of the CTBUH, Antony Wood, said: “Seeing this project for the first time stopped me dead. There have been major advances in the incorporation of greenery in highrise buildings over the past few years – but nothing on the scale of this building has been attempted or achieved.”
The CTBUH received 88 entries for the award, with most coming from Asia and Europe.
Central Park’s development director, Mick Caddey, said: “Sydney can now claim to have the best tall building in the world, which by anyone’s standards is an impressive claim to make.”
Properties within this development have sold for in excess of $1.3 million. Most of the apartments have been sold, but there are still two-storey penthouse apartments available with a price guide of $2.65 million.
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One Central Park named best tall building in the world

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The Reserve Banks’s (RBA) decision to keep interest rates on hold earlier this week came as no great surprise.
Of the 33 economists <a href="/expert-insights/finance/rates-tipped-to-start-rising-in-2015-but-how-long-will-the-cycle-continue">surveyed by Finder</a> prior to the meeting, 91% expect rises in 2015, while two tipped 2016 as the earliest date for an increase.
But the lack of interest rate movement, the Bank has now left interest rates on hold for 16 consecutive months, has one property expert scratching his head.
Buyer’s agent and founder of Dream Design Property, Zaki Ameer, says that the RBA’s usual reaction to increasing house prices and unemployment is to raise interest rates.
“However, interest rates have remained unchanged for two years now, and in my opinion, that's because there is still some local uncertainty within our economy, which may be caused by local involvement in international terrorism,” Ameer said.
Ameer said that due to unrest in the Middle East and Ukraine, the RBA is unsure whether they should raise interest rates since, he believes, they are uncertain what is driving current economic conditions.
Eventually, it could be a global event that forces the RBA to act, Ameer told Property Observer.
Despite the continual presence of ominous global threats, Ameer believes that low interest rates are creating a fantastic environment in which to invest.
“Aside from the obvious benefits, which is low interest repayments for those who have fixed, what many people do not realise is that when the Reserve Bank does increase its interest rates, rent prices usually increase too, and this then creates more cash flow for investors,” he said.
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Global events may be shaping RBA's interest rate decisions: Buyer's agent

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Joel Robinson

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.

The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.

The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.

<img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" />

Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.

Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.

The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.

"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.

"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.

"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."

Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

The City of Sydney has approved plans for <a href="https://www.apartments.com.au/developers/billbergia">Billbergia Group</a> and Metrics Credit Partners’ $3.5 billion Castlereagh Place project in the heart of the Sydney CBD

The towers will be among the tallest in <a href="https://www.apartments.com.au/developments/sydney-nsw-2000">Sydney</a>'s CBD, with more floors than any other residential tower in the city.&nbsp;

The 6,000 sqm site was acquired by the joint venture partners in 2024. It is the largest amalgamated land parcel in the Sydney CBD and comprises eight individual sites fronting Castlereagh, Pitt and Liverpool Streets.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/castlereagh-place-sydney-324-348-pitt-street-sydney-nsw-2000">Castlereagh Place</a> will transform an underutilised city block into a landmark mixed-use destination, anchored by two 82-storey towers comprising 607 luxury residences above an 8-level podium housing a 209-room luxury hotel. A 1,000 square metre civic park on ground level features a curated mix of food, beverage and retail.

The plans have been refined over the past year to rebalance the residential and hotel offering, and reconfigure the retail footprint to create a stronger, more dynamic dining experience.

A three-level flagship building on the prominent corner of Pitt and Liverpool Streets will be the gateway to the Castlereagh Place lifestyle precinct. Set to become a Sydney icon, the building is capable of housing multiple hospitality venues.

“Castlereagh Place is designed to be the City's next great urban oasis - an energetic mixed-use precinct that pulses with life, day and night,"&nbsp;said Joseph Kinsella, Group Director of Billbergia.

"It will bring the vibrancy of places like Barangaroo and Darling Quarter into a more accessible, central destination at the very heart of Sydney."

Kinsella said the project will build on&nbsp;Sydney’s growing laneway culture with the City’s largest network of new activated lanes - an expanded, next-generation take on precincts like Angel Place, Palings Lane and Ash Street in Wynyard.

[smartcode_project:default project_id=134477 project_image_fid=374401]

Castlereagh Place has been designed by architects <a href="https://www.apartments.com.au/architects/fjc-studio">fjcstudio</a> in collaboration with Trias Studio, Aileen Sage and Polly Harbison Design, joint winners of an international design competition in 2018.&nbsp;

Signature design elements from the original scheme remain unchanged, while the public domain has been significantly enhanced, delivering 60 per cent more open-to-sky space.

Pedestrian access will also be enhanced through new laneways linking Pitt, Liverpool and Castlereagh Streets, drawing people into a new civic park with outdoor seating, landscaping and integrated public art.

With activated laneways supported by strong hospitality offerings, Castlereagh Place is tipped to become a vibrant new dining destination in the heart of Sydney’s CBD.

It marks the largest undertaking to date for the Billbergia and Metrics Credit Partners partnership. Together they are developing other underutilised Sydney sites into mixed-use precincts, including the $2.2 billion Concord Central and the $1.3 billion Chatswood Grand Residences.

Metrics Managing Partner and Group CEO Andrew Lockhart said Castlereagh Place is a landmark project that will redefine Sydney’s skyline.

"As the tallest residential high-rise development, the revitalised site will offer panoramic views across the CBD and surrounds. We are excited to partner with Billbergia to reinvigorate an underutilised site and create a sophisticated and contemporary mixed-use offering situated in the heart of Sydney.”

Total apartments within the towers have increased to 607 dwellings, with a focus on larger floorplans. Aligned to growing market demand, Castlereagh Place now comprises 299 three-plus-bedroom apartments, 198 two-bedroom units and 110 one-bedroom configurations.

[smartcode_project:default project_id=134477 project_image_fid=374402]

Resident amenities will include an exclusive residents club containing a gym, rooftop pool, dining rooms, co-working spaces, library, golf simulator, games room, cinema room, and access to an exclusive concierge service. There will be around 500 basement car spaces below the towers.

The development will also include a state-of-the-art wellness centre, set to feature a bathhouse with magnesium pools, hot/cold plunge pools and premium amenities.

&nbsp;

According to fjcstudio, the towers will feature distinctive yet elegant architectural design reflecting Sydney’s geometry and urban character, with a network of through-site links and intimate public spaces activating the streetscape.

"Castlereagh Place is a city-making project of significant scale and ambition," said Richard Francis-Jones, Design Director at fjcstudio.

"It will create a rich urban complex of public open spaces, landscaped gardens, and vibrant laneways. Defining these new public spaces and the important streetscape of Castlereagh Street is a sequence of fine-grained, diverse retail and hotel architecture designed in collaboration with Aileen Sage, Polly Harbison Design and Trias.

“Rising above the tree-lined, human-scale streetscape are two slender residential towers that will transform the city skyline and look towards the Harbour, Hyde Park, and the Royal Botanic Garden.”

Demolition and early construction works have commenced onsite at Castlereagh Place.

[smartcode_project_cta:default project_id=134477]

Oliver Wisniewski

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