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As more apartments are developed across the inner-city areas of Sydney, one of the most interesting outcomes is the evolution of distinct, almost stand-alone neighbourhoods.
The appeal of inner-city living is made more attractive as these neighbourhoods take on their own unique character. It’s a pattern of development that doesn’t happen overnight, but it’s a trend that helps to make the city a much more interesting market and a more appealing place to live.
The same diversity helps to seed and then drive more sustained demand from buyers who are attracted to a particular neighbourhood. The trend also reflects how Sydney’s inner-city areas are championing a new level of maturity as the city enters the ranks of other international cities that have long been renowned as being great places to live.
This diversity is important for a number of reasons, including the fact that it influences the style of development, it sustains value, creates incentives for innovation and because it builds social inclusiveness. All of which are important for the long-term appeal of inner-city living for current and future residents.
Exploring an Example
This trend is not confined to Sydney, or just the City of Sydney, it’s an Australia and worldwide trend. The inner-city used to be seen as a disadvantaged area with crowded populations and a poor standard of living, but that’s no more. Over the past 20 years inner-city living has taken on a new attraction and new meaning.
It’s now a very desirable lifestyle, and the diversity of inner-city neighbourhoods reflects how popular the trend has become, and now it looks set to rapidly accelerate in the future. Inner-city neighbourhoods can be very appealing and I am going to look at Milsons Point, as a good if not the most top of mind example, and then (in next week’s post) I will look at a recent project there, 88 Alfred Street, Milsons Point to further explore this topic.
I have selected Milsons Point for two key reasons. Firstly it’s a compact area and a very distinctive neighbourhood and it’s also easy to relate the area to the more compact North Sydney CBD, in many ways it’s a very precise example.
Milsons Point
So let’s look at Milsons Point, its immediate neighbours of Kirribilli, North Sydney and the wider North Sydney Council area and then when we return to the project at 88 Alfred Street, it will be possible to see how the character of the neighbourhood and related trends influenced the project itself, the marketing and sales results.
The North Sydney Council area has a population of around 71,025; a figure from the 2011 census that I am sure we can assume has been constantly growing. The area has a housing mix that is 87% medium density (and increasing) and incomes are markedly higher than the national average.
At just 22% far fewer people have mortgages (nationally the figure is 33%) and many more people rent in the area, some 46% by comparison to the Australian average of 29%. The area’s popularity for rental accommodation dates back to the 1930’s and also to its contemporary investment appeal.
The make-up of the three key neighbourhoods I am interested in then fit into this big picture, starting with North Sydney. North Sydney has the biggest population of 6,397 residents spread across 147 hectares and this area has the lowest population density at about 50% of Milsons Point and Kirribilli – the area was settled in 1836.
Kirribilli has some 3,654 residents, spread across 44 hectares and is home to Admiralty House and Kirribilli House. There are also lots of apartments from as early as the 1930’s. Medium density living here is well established and of late has set some record prices associated with somewhat small apartments. The area has ‘to-die’ for views.
Milsons Point was settled back in 1805 and it has the smallest population of just 2,891 residents (2011 census figures), it’s a mixed use area of just 36 hectares, is home to Luna Park and North Sydney Olympic Pool. An interesting fact is that the resident population doubled between 1991 and 2011 as the number of commercial offices started to rapidly give way to residential projects. This trend continues today and may over the next 5-years or so see all commercial space gone from the area.
Across these three areas we can see some very distinctive neighbourhoods, they were all impacted by the construction of the Sydney Harbour Bridge in the 1920’s. The area is affluent, given the low population density there’s possibly a lot more room for further re-development in North Sydney and the area is a very popular residential area greatly enhanced by its harbourside location, great rail connections and views – all of which are classic ingredients for successful medium density developments.
 
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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The maturing of Sydney’s inner-city neighbourhoods: Peter Chittenden

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Finance has always been a key of the housing market, and as we have seen over the past few years, low interest rates have helped drive record demand and activity.
While this is not the most glamorous or interesting topic, finance is still a dominant part of the market.
Just a few years ago the suggestion that we might see 3+% for some of our home loan rates may have been unlikely, still today it’s a reality. (There are advertised rates of between 3.69% and 3.89% available for terms of 1-3 years.)
We are now seeing finance again in the main spotlight and there’s a lot going on that buyers need to be aware of and all the constant news about rates may be creating some confusion. As a result buyers entering the market could well be facing a dilemma, because on the one hand we still have record low interest rates, but we are also seeing the major banks move in one direction while smaller lenders move in exactly the opposite direction.
We also have APRA taking a hardline with the banks, while the RBA considers its next interest rate move and all of this commotion will possibly affect anyone looking for a loan, and that includes investors, SMSF and all owner-occupiers including first time buyers. Concerns being expressed by APRA might be unsettling or even seen as a negative, and so possibly causes buyers to be more cautious.
Against this background a number of Colliers International’s clients have recently introduced a special deposit offer based around a select number of projects with those clients accepting a 5% deposit, rather than the usual 10%.
The projects covered by this offer are Bay Pavillions – Lane Cove, Imperial – Hurstville, Atmosphere – Castle Hill, Altitude – Blacktown, The Chelsea – Kensington and 88 Alfred Street – Milsons Point. The offer has been well received in particular among buyers trading an existing property, where the costs of a move do mount up.
It’s not always possible to find $200,000- $250,000 as a cash deposit on a $2m plus apartment, and so the ability to exchange contracts on a 5% deposit has proved a popular idea, and similar offers are set to become more common.
Small Lenders Cut Rates
While the big four banks have recently increased their home-loan rates, ten smaller lenders last week cut some of their rates.
The cuts are for 1-3 year fixed mortgages rates, with cuts up to 74 basis points. This means that the gap between the highest standard variable rate and lowest 1-year fixed term is 260 basis points. It’s easy to appreciate why this is important when securing a $1 million mortgage.
It’s reasonable to expect that these cuts might spread as competition between lenders increases and institutions look to keep their customers and attract new ones. This competition usually involves a basket of products such as insurance, but is good news for buyers.
Still it does cause some head scratching as buyers weigh up the loans on offer and if the market slows other non-lender incentives may start to emerge.
The cuts by the smaller lenders are also a bet that they expect the Reserve Bank of Australia will make more rate cuts, or at least hold steady. Still while the prospect of an official interest rise looks very remote for some time, further cuts are not assured, because we may well be at the low point of the rates cycle. It remains common sense however that anyone looking for finance should do a lot of research and shop around for the best rate and terms.
Big Banks In Step With Rate Increases
The big four banks have all increased mortgage rates while the Reserve Bank of Australia is still expected to cut the cash rate, although this may roll over until 2016. And so where do the different banks now stand with their home loan rates?
ANZ Banking Group has raised interest rates by 0.18% points, its standard variable rate for owner-occupiers is now 5.56%, and for property investors 5.83%.
Westpac has increased its variable rate by 0.2% points. Commonwealth Bank has made a 0.15% point increase and National Australia Bank a 0.17% point increase.
These increases, although very modest, appear to have had the immediate effect on borrowers making them think twice about locking-in interest rates. The reason is that with rates so low on a pro-rata basis a further cut or increase of say 25 base points would be either a blow or a bonus for anyone on a variable rate.
One side result of all this jumping about with rates is that all lenders are also promoting incentives aimed at getting customers to switch between lenders with various cash and rebate incentives on offer. Borrowers can of course have a bet each way and combine fixed and variable rate, and this does appear to be a trend.
SMSF and Investors Face Controls
Tied up in this interest rate mix APRA has instructed the banks to reduce their lending to investors and SMSFs.
This move has had an immediate impact on demand from these two groups, and in part also introduced the requirement for bigger deposits. This tightening of lending restrictions has also seen some of the banks pulling out of this sector.
These changes come at a time when according to the ATO over the past two years there has been a more than five-fold increase in SMSF debt to about $15.6 billion.
The SMSF sector is larger and is estimated to have total assets of $562 billion currently under management and so changes among this group has the potential to impact demand for investment properties.
APRA Keeping Watch
All four banks have each blamed the recent home loan increases outlined on APRA’s requirement for them to hold more capital to cover each bank’s mortgage loan books, which now form a big chunk of their loans, with the extra funds earmarked as a potential buffer against any future financial shocks.
Still it’s the customer facing higher charges and in the housing market that always appears to be the case, as is demonstrated time and again with stamp duty.
APRA’s sharper surveillance of bank lending follows many years when the RBA had ascribed a positive view of the conservatism of Australia’s big banks, that view may have been relevant at the time, but now with so much exposure to the housing market possibly not now.
The tightening of bank lending standards since the global financial crisis has improved the underlying muscle of their loan books. This is an important result if adverse economic circumstances were to creep upon us again.
However a tighter rein on lending and a competitive interest rate outlook looks set to deflate any prospect of a housing bubble, which as demand softens now appears improbable, and that has to be seen as a positive.
 
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Finance back in the spotlight: Peter Chittenden

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The past few weeks have been hectic for real estate with headlines about a possible shift in market sentiment as the major banks all increased their home loan rates and we also saw a drop in auction clearance rates below 65%. 
And so somewhat lost among all of these headlines is the news about the passage into law of the long-awaited review of Strata Title Legislation in NSW.
The Strata Scheme Management Bill and Strata Scheme Development Bill have both passed the Legislative Council. The two bills contain more than 90 changes to how strata agreements are governed.
Long after the other headlines start to fade these changes are going to impact the market for many decades.
I think that the correctly described as a ‘once-in-a-generation reform’ to the state’s strata title laws after much debate will come into force from July 2016. The Minister for Innovation and Better Regulation (interesting title) Victor Dominello who has been responsible for the bills, said that the laws are an important step forward for the state.
He noted that more than two million people live and work in strata and that the new laws will cater for the needs of 21st century strata living.
“The new laws will modernise collective decision making processes, increase protections against unresolved building defects and improve out-dated regulation impacting on renovations,” he said.
The key changes have received a deal of publicity and have also attracted a lot of emotional comment but I think the case and need to renew many older buildings has been fairly established.
Across Sydney there are pockets of development from the 1960’s and 1970’s that fall a long way behind modern standards and amenity. If we fail to make it possible to redevelop these buildings then this paralysis can have a detrimental impact on urban standards and possibly create disadvantaged areas, where values fall and we see a cycle of neglected investment. In a dynamic city this sort of urban renewal is vital to the city’s livability.
Now of the nearly 100 changes in the updated legislation, most notable is the requirement that only 75% of owners will need to agree for an apartment building to be sold.
One of the other key points addressed is a move making it easier for owners to complete cosmetic and minor renovations to their apartments, again this is important to keep apartments modern and with the services and facilities that owners require without being consumed by over regulation and far too much red-tape.
The changes will also prevent proxy farming, and while the extent of proxy farming is hard to measure, it can often be used to set up long-term appointments and policies in a building that do not always work for the owners. This change should be a welcome move.
Then we see another key change, which has also attracted a great deal of industry comment, which will see the introduction of a defects bond to fix building defects early in new developments. In the past we have seen some poor quality buildings leaving the owners corporation with a major headache and on some counts big repair bills that sometimes came on top of big legal bills because of a disagreement with a developer or their insurance company.
The new bill has a requirement of developers to lodge a bond of 2% of the contracted price of the building as a form of security to fix any defective work.
Here again the changes should be welcome and should not be seen as a threat among well-regarded developers. The suggestion that the introduction of these bonds might further inflate prices is a bit of a bluff as experienced developers have to their credit always understood the importance of delivering quality buildings, and most already do so.
The new provisions have also taken on some house-keeping issues to tackle that can have an annoying or even detrimental impact on people’s daily lives. These include the addressing of the perennial issues of (illegal) parking, pets and smoke drift.
According to The Minister the over-riding objective has been to modernise our strata laws to better reflect the way people live and work in 2015 and beyond, and as everyone is aware the numbers of people living in strata developments is now massive and growing.
In some parts of Sydney in areas like Rhodes, Chatswood, the CBD, Zetland and Pyrmont, plus many other spots, the concentrate of apartments and the density of population really dictates that the rules need to be keeping up with the pace of modern development, and to date they have not.
It is more than 20 years since the last major amendments to strata law were made and over those two decades we have seen how and where many people live change dramatically. Today’s strata landscape is also much more varied than a three-level walk up building and now includes city high rises, sometimes very large scale buildings, townhouses, dual occupancies, offices, retirement villages, mixed use and tourism.
According to published figures there are currently over two million people, including 25% of Greater Sydney’s population, living or working in more than 75,000 strata schemes across NSW.
But what is a very interesting figure is the prediction that by 2040, half of all Sydneysiders will be living or working in strata and that single static alone underlines the urgency and importance of the current review. The new Strata Scheme Management Bill and Strata Scheme Development Bill follows a comprehensive community consultation, with over 3,000 individual submissions received.
With the bill soon to become law it’s a good idea to take a keen interest as the development industry and buyers are all going to be impacted for many years to come but I think the laws do go a long way to creating a better outcome for strata buyers and developers and their passage ends a long drawn out process.
 
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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New strata rules set to have big impact: Peter Chittenden

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Recently, the House of Representatives Economic Committee Report on Foreign Investment in Residential Real Estate was released.
The report made 12 key recommendations, one of which was better funding of the Foreign Investment Review Board (FIRB), because currently there is a complete lack of creditable information on the true extent and nature of foreign investment into residential property. As might be expected the report has received a mixed response. It has not been welcomed by the majority of public comments posted on various news websites.
Let’s examine some of the background that led to the committee looking at this area of policy. In a recent post I noted that the local housing construction industry was worth almost $70 billion, employing some 1,037,412 people in 2014. When talking about foreign buyers and residential property I use these figures as a starting point to help illustrate how important this sector is as a driver of our economy, and it’s a point that was repeated in Friday’s report.
The role of foreign investment in our market can be an emotional subject, and it remains so. It is also a very complex issue for a country with a growing population and a somewhat mixed economic outlook.
The Plight of First Time Buyers
There has been clear evidence for some months now that first time buyers are being squeezed out of the housing market. Australian Bureau of Statistics (ABS) finance statistics show that in September 2009 first time buyer finance stood at 26.1%, by September 2010 that figure had fallen to 15.5%. In the most recent ABS figures there was a slight increase but the figure is now down to 12.0%, and the average loan has increased to $326,500, which in the Sydney market would not stretch that far.
Also, in the most recent ABS figures, investment finance for the month grew by 1.7% and owner occupier finance only grew by 0.1%, and this continues a long-term trend. The reasons for these trends are very complex, but on the surface, they do create an emotional picture of the plight of some sections of the housing market.
The emotion is partly illustrated by a <a href="https://www.change.org/p/the-executive-members-toughen-the-regulations-for-foreign-investment-in-australia" target="_blank">current online petition</a> posted on change.org. The petition started in response to the Economics Committee’s review which called on the Federal Government to "toughen the regulations for Foreign Investment in Australia". It attracted some 32,300 supporters (signatures) and a wide variety of mainly sympathetic followers. A key element of the petition was the fact that only 33 of the reported 5000 sales of established homes to foreign buyers over recent years have been investigated by the FIRB.
That’s a very small number and so, understandably, it makes the FIRB rules an easy target. However figures from the FIRB show that in the first nine months of the last financial year foreign residential property investment was $24.8 billion – a 44% increase over the amount approved for the whole of the 2012-13 financial year, which only further points to the fact that the FIRB may be under-resourced.
In the report the committee also made reference to these figures and agreed the FIRB was not doing an acceptable job, which it recommends be fixed.
The petition and the concerns of its sponsor (Simon Hosking) had been brought to the attention of Kelly O’Dwyer, Federal Member for Higgins and Committee Chair of the Parliamentary Business Committee’s House Economics Foreign Investment in real estate. In part of her response, published on the petition’s website and issued ahead of the main report, O'Dwyer states:
“… The Committee is taking a holistic approach to examine whether the current policy settings are delivering the best outcomes for the Australian economy and increasing housing availability, as they are designed to do. Australia’s foreign investment policy, as it applies to residential property, is intended to boost the supply of new housing and thus provide both economic and social benefits. The policy seeks to channel foreign investment in the housing sector into activity that directly increases the supply of new housing (such as new developments of house and land, home units and townhouses) and brings benefits to the local building industry and its suppliers…”
 This article continues on the next page. Please click below.
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Blame game or market reality
The debate around foreign investment in residential property comes at a time when prices and demand have both been increasing, a very obvious trend in Sydney and Melbourne and to a lesser extent in Brisbane and other centres. These cities are also attracting the bulk of foreign buyers and foreign development capital and investment.
In part, the trend is being ‘blamed’ for higher prices and at one end of the market. That blame extends to the trend locking first time buyers out of the market.
Again, ahead of the main report, here’s what Committee Chair Kelly O’Dwyer said in response to the Simon Hosking petition. The  same views were reinforced in the main report:
“…Consistent with this principle, foreign investors are able to seek approval to purchase new dwellings and vacant land for residential development. Foreign investors cannot generally buy established dwellings as investment properties or homes; however, temporary residents can apply to purchase one established dwelling to use as their residence while in Australia. The acquisition of residential real estate by foreign investors is regulated by the Foreign Investment Review Board (FIRB). It has become clear from evidence presented to the Committee that FIRB has not prosecuted a single case since 2006. It is also clear that there are problems with processes at FIRB, resources and the penalty regime. The Committee is due to report later in the year…”
However only last week ahead of Friday’s report, this same committee knocked back a proposal that foreign property buyers be levied an extra stamp duty as a possible way of helping to fix the housing affordability crisis, and dampen offshore demand.
There seems to be a fairly entrenched ‘hands-off’ approach being adopted, although a purchase application fee of $1500, that would raise $158.7 million over four years, appears to have general support. Such a fee would by no means act as a penalty.
Returning to the idea that foreign investment is somehow having a negative impact on the market (by forcing up prices), I think we should also look at how different the Australian economy has become over the past two decades.
Because the housing market is part of a big picture and it has to be seen in the wider context. The importance of direct foreign investment across our economy is illustrated by the fact that in 1990 Direct Inward Investment Stocks was US$80,333 million, however, in 2012 that figure had grown to US$604,257 million. Over the same period Australia’s outward flow of Direct Investment Stocks has grown from US$37,491 million to US$424,489 million. I quote the figures to illustrate the fact that the international flow of investment funds is a fundamental to any economy.
The rush to secure Free Trade Agreements is further evidence of this fact. Last week Australia and China signed an FTA, and it is yet to been seen if this will have any impact on the flow of funds into residential property both buying existing projects and for new developments, and if this will be a positive or not for the market.
On first reading of the China/Australia Free Trade Agreement, because of the freeing up of many of the service sectors, this may well be a positive for Sydney and Melbourne, because these two cities are so closely aligned to the professional services. Law, finance, education, tourism, health, engineering and manufacturing are all seen as having potential benefits and growth in these areas plus other key areas should create more demand for commercial and residential accommodation in Sydney and other cities.
However, again illustrating how emotional this topic has become, there are suggestions that the various free trade agreements will further harm the prospects of ‘local’ would be home-buyers. But I do not see any foundation for this assumption.
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The housing market and foreign buyers: A blame game

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I’ve spent almost 2 decades marketing and developing apartment projects of varied kinds, big and small, across lots of price brackets and in many locations, and I’ve been interested to observe how apartment living has evolved. We all know that more of us are now living in apartments, a trend that’s set to continue as we see much more high-density living becoming commonplace.
Over the past few weeks I looked at how important ‘place making’ has become as part of the development cycle as many inner-city areas are completely transformed. But there’s another more personal and communal side, a more everyday intimate side to apartment living that I think anyone associated with the development and marketing of apartments should be mindful of, and that’s the value of good neighbours.
Apartment living involves much closer connections between neighbours, a closer sharing of space and facilities. And while not living in the pockets of our neighbours, good relations and a friendly building in a high density community is always desirable.
While we have various area of legislation to help manage apartment buildings, even if the current rules are out-dated, which they are, just what makes a good neighbour and how people living in an apartment generally view the ups and downs of their lifestyle, gives some valuable insights.
Considering this topic further there are, as might be expected, some die hard and often repeated comments about neighbours and the ‘likes’ and ‘dislikes’ about apartment living.
Community Connections
Here’s a quote I recently came across. “The human body has 7 trillion nerves, and you manage to get on every single one of them.” 
The point is I guess that it’s more or less human nature that sooner or later someone or something will get on our nerves and when an apartment project is complete, or when a buyer comes into an already established building, there’s a neighbourhood, a vertical community that the buyer connects with.
In an apartment community, living in close proximity there’s some clear ideas on just what makes good (and unfortunately bad) neighbours. Most items on the list come down to some very basic things, some of which are addressed by rules and regulations, but there are some where improved planning and design can and does make a significant difference.
Good Neighbours
From experience and with lots of feedback from past buyers and my sales team, some of the key attributes of good neighbours revolve around predictable areas like parking, the use of common areas, security, noise, pets, rubbish, smells and building management.
It’s also thought-provoking, but I think not unexpected, that when you ask people, or read research about what individuals like and dislike about apartment living that many of the same topics are always on their list. On the downside many lists of ‘dislikes’ focus on smells, pets, noise and poor management. While the up-side the list often features cost (affordability), easy maintenance, security and personal safety and access to amenities, although in some markets cost might now be a more subjective measure.
Common Areas a Common Concern
Medium and high-density apartment living will always involve the use of shared areas, common property and when you look at some of the issues that people refer to here, I find myself thinking that ‘shared’ or ‘co-operative’ property could be a better way to describe such areas.
Well-designed key facilities that make up common property do play a big part in creating appealing projects, and good neighbours do not neglect or abuse common property. The key issues usually comes down to things like blocking parking access, the abuse of visitor parking, or leaving rubbish in common areas. It’s one of the reasons the building management is a common focus.
When it comes to subjects like smells, noise and pets there’s been lots of work done here, and I think that generally all new buildings avoid concerns of smells and noise and the rules around pets are usually very clear cut. I think that having foyer areas open to natural ventilation and the wider use of tiles have made a big difference to how buildings function and are maintained.
Building design does address noise, but it’s also important to have a well-connected community so that a friendly chat can help diffuse concerns over excessive noise.
Building Management and Community
While a review of Strata Legislation in NSW is hopefully soon on its way and has been a long time coming, good neighbours is still something that can not be forced into place by legislation. There’s always room and I think willingness for having good building community, a community of neighbours, where being social and friendly will usually occur naturally. Keeping an eye open on security, understanding that common areas are shared property and a co-operative approach to management will always be a positive.
In many markets a great deal of attention is paid to price movements and the demand for apartments, still I think we need to always remember that community and the value of good neighbours are important to buyers and all residents.
Market conditions are always evolving and I also consider that keeping these everyday issues in mind does help in planning and designing new buildings and also how we structure key marketing. I consider the value of community and good neighbours are part of what demographics aims to measure beyond the published figures we are all familiar with. A friendly and co-operative apartment community, no matter how big will always help sooth a majority of those 7 trillion nerves!
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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The value of good neighbours in apartment living: Peter Chittenden

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Given the impact of technology on our everyday life it’s not surprising that any list of the world’s top brands is tech dominated.
If you own a smartphone you might well interact with one of these brands as the first and last thing you do every day, as you check the time or check your emails. As you might already have guessed currently the world’s number one brand is Apple, followed by Microsoft, Google, Coca Cola and IBM, it’s the tech brands that dominate the top 50 brands.
Ikea is the highest ranked brand that could be related to homemaking, however the value of a successful brand is an important part of property marketing. One reason is that as more of us continue to live in cities we are also looking to secure our identity, and where we live is central to this. The branding of suburbs, apartment buildings, housing estates, different states and right on to brand Australia, all of these tie into the essence of our marketing and as a marketing tool and part of the sales path, this topic deserves a lot attention.
House Names to Brand Australia
Perhaps the most common property related brand would be the name given to individual houses, this has been a long tradition in many countries including Australia. While house names might have originally helped the postman deliver the mail, they are a popular part of our residential history.
It does appear, and perhaps not surprisingly, that Australian house names are often associated with the sea, or at least an association with being near to or having a view of water. Some of the more obvious examples include Driftwood, Bay Cottage, Lakeview, Seaview, Waterfront and Seacrest, and at least a few of these have been recycled as names and brands for apartment blocks. I am sure we have all at least seen more than one Seaview or Waterfront apartment project name!
House names and terrace row names are really living history and add interest and colour to many an inner-city suburb across Australia. Then as far as real estate is concerned we have brand Australia itself.
Brand Australia has some both familiar, and some lofty aspirations and these include core values like: friendly people, an attractive natural environment, resources, quality lifestyle, sunny, confident, creative, outward looking and talented, grand and impressive!
In a very matter-of-fact but interesting way, many of these same values are the very attributes that attract offshore buyers to our country and our local property market. Such brand values are almost priceless but they do underscore beyond the dollars and bricks and mortar why we are such a popular market with offshore buyers.
Creating Brand Value
Brands aim to create a personality, brand awareness and it’s an ongoing and complex task. I am not an expert, here my aim is to acknowledge how important brands are in project marketing. For the actual success of projects, in the eyes and mind-set of buyers, for developers and for the marketing agents, we all benefit and can I suggest need strong brands, and this also extends to personal brands. In today’s world a personal brand is no longer something just for a handful of personalities.
I think it’s useful if we tick off some of the key ways any brand is created and sustained. Firstly there is a need to create energy around the process and the wide participation of all team members. Creativity is not something you can buy in a bottle or a neat package, that’s why team involvement in particular with a major project is a good idea. While there has to be a lead taken, to avoid an endless round of likes and dislikes, involving the project team never does any harm and is usually positive.
There are also some well-regarded measures for how the success of a brand is measured and this includes longevity, a brand that is easy to remember, is unique, keeps things fresh, reflects passion and must have consistency.
For buyers there might also be another test. If you happen to live in a block of 100 or 200 apartments you want the brand to be well regarded, in particular that’s important when it comes time to sell.
I Can’t Imagine Living Anywhere Else!
If every buyer we have dealt with was happy to say these words, then in every respect we have doubtless created a building or a new estate with a great brand.
When thinking about a residential project brand, one aim is to create and build the project’s reputation, to humanise the brand and encourage a strong word of mouth connection.
While there are graphic and design considerations, the appeal of a brand should also aim to reinforce key aspects of a project’s lifestyle. Inspiration can come from how potential residents might interact with the environment, for example by having a morning ritual or relaxing at or near home.
The creation of a strong brand that reflects all of the key aspects of a project can have considerable appeal and will also aid social media and can directly help create more web traffic. For larger, longer-term projects this sort of brand awareness has big up-side advantages.
There is also strong synergy between individual project brands and the brand qualities of the developer because the two are intertwined. Strong brand values for any developer will pay off handsomely as they help sustain off-the-plan sales, where the buyer’s trust in the end product is important.
Buyers, the future residents of a building or an estate are not only attracted by brands that represent the height of fashion, the core idea is to create ownership of the project in the most positive light. The brand can also then galvanise and give focus to all aspects of the project.
Gentrification A Good Example
Looking for a good example we need to look no further than how clever branding has been used to re-cast the gentrification of many former industrial areas on the fringe of many of our capital cities.
In areas like Sydney’s south-east entire groups of suburbs have been ‘re-branded’ with a great mix of residential, commercial and social infrastructure and innovative building design to create very desirable areas. The combination of facilities has been important in building the brand in these areas, and new shops, cafes and even supermarkets with extended trading have all played their part. This process of gentrification is perhaps one of the best examples I could use to show the power of brands in our field.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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The role of brands in marketing projects: Peter Chittenden

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Cities are ever changing environments that are continuously evolving and they reflect the varied and always developing needs of the population.
The complexity of the population is naturally reflected in the make-up of the housing market and while fashions change, our underlying housing preferences appear to be somewhat more rigid than might be expected. And so the question will always be – are we matching demand and how we market to this audience? 
It appears that at times we have a disconnection between where we live and where we would like to live. Work, family, finances and lifestyle balance all play their part, alongside our national, still very dominant desire to have our own homes. This area is still driven by emotion and aspiration. There’s a lot of emotion in almost all parts of the housing market and the desire for homeownership is also closely tied to a feeling of achievement, personal growth and self-worth.
In almost any casual conversation we are often asked, where do you live? And where do you work and what do you do? Where we live in particular is very much seen as part of who we are, and so the character of the housing market is a constant source of fascination.
A Large House Near The City
In research published by the Grattan Institute, a large house near the city was seen as the most desirable goal for many people, but the actual structure of our housing market is somewhat different.
Homeownership is falling, and the numbers of people renting is on the rise. Both trends were evident. When measured in the last census in 2011, homeowners (either owned or with a mortgage) was around 67%, and rental accommodation sat around 29.6%, but the falling trend among homeowners has been constant and was closer to 75% in the 1960’s.
At the same time rents and mortgage repayments have been on the constant increase, and one particular measure remains on an upward trend and that’s the number of households where rent or mortgage payments are taking more than 30% of incomes, with rents at 10.4% and mortgage loan repayments at 9.9%. It’s a trend that the 2016 census is bound to see continue as house prices have increased over recent years.
There’s also a link between the size of families and their incomes and the ability to buy a home. Couples and sole parents with children account for 60.5% of households with both parents being employed either full or part-time making up 25.4%, with only 15.7% being households with just one parent working full-time, and even less with one parent in part-time employment at just 5.4% supporting the household.
Most of Us Still Live in Detached Homes
Where we live and the impact that has on household size and the importance of location also shows some related trends. As the figures above might help reinforce, families are more concerned about the size of a home.
The split is currently 75.6% living in detached homes, but that figure is gradually falling, 9.9% then live in semi-detached and 13.6% in apartments, with both are on an upward trend. The fall in the numbers of people living in detached homes is shown by the fact that in 1976 the figure stood at 78%, and while the decline is not huge, it’s now a constant trend and may well be more marked with recent trends towards the popularity of apartments.
What is somewhat a surprise is that evidence points to the popularity and demand for medium density housing, in reality the supply of semi-detached homes and townhouses has been falling way behind demand. Medium density sits somewhere between high-rise apartment living and the larger more traditional detached home and this would help explain, not surprisingly why these homes are so popular. And when it comes to size, we see that 3-bedroom and 4-bedroom homes together account for 73.9% of housing stock, with the demand for 4-bedroom homes on the increase.
When Location Is Key
While for families home size and the number of bedrooms are the most important factors, location is much more important as we get older and it’s also the same for singles.
While families are concerned about house size, as we get older we look for closer connections to work, being closer to family and facilities like transport, and the same goes for singles as they look for wider community connections. For these groups a central or CBD location and all that it entails is driving demand and pushing prices as sites are absorbed.
Then we also find that across all groups affordability always comes into the picture. This will then influence size, condition, access to transport and the key suburbs people are most attracted to. Our housing preferences are well-established but changing.
However as is clearly demonstrated by some of the shortages being experienced in Sydney, meeting all aspects of household demand isn’t easy. There are many layers that add time, cost and complexity to meeting demand. Finding suitable sites in very popular areas, the time to deliver the finished projects, planning delays and the costs involved will explain why in some markets demand is not being met.
Demand is being seen from the inner-city to major new growth regions on the city fringe. Then some housing preferences, like the demand for more mid-range medium density housing may be falling short. There’s a fine balance between location, cost and size that all buyers have to navigate when making a choice of where to live, and prices are reflecting the key areas of demand.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Where we like to live: Peter Chittenden

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An associate of mine recently suggested that I listen to a podcast from the USA that talked about the role of the arts in helping to both revitalise existing neighbourhoods and also helping to create and energise new ones.
At the same time the topic also explored some related issues like housing affordability and ageing in place.
All of which are common themes here and I think have particular significance to many aspects of marketing new projects and how place in-turn influences values.
While some of the material in the podcast was largely focussed on the regenerating neglected urban areas the central theme of ‘creative space making’ had lots of material that I think can be applied here. Many parts of Sydney are being developed with new apartment and mixed-use projects and among buyers there is a definite desire to live in places that have a feeling of community, a richness of local colour and activity.
LOVE OF PLACE
There’s no doubt that developers take the lead when investing into new areas, having usually worked with local councils and existing residents. Sometimes this process results in the creation of totally new neighbourhoods and new communities but often there’s an existing footprint of local character that extends well beyond just local services.
When we think about what makes people love where they live (or wish to live) then connecting with the local community is essential. It’s a topic that helps identify the appeal of different areas, creates a competitive advantage and its part of what sets demand, value and prices. It’s an important part of underpinning the investment made and I think easily overlooked when determining local demand and values.
In some established parts of any city or suburb there’s usually an existing culture that appeals to buyers and extends way beyond for example a handful of shops.
Even when we are dealing with former industrial ‘brown-field sites’ you can sometimes find nearby fragments of neighbourhood, like a pub or local café. Not to mention the social footprint of the local residents who just happen to find themselves now living close to any number of new projects and new residents.
The dynamics of every major city are now caught up in this trend and as the podcast I referred to earlier explored the how the arts, a feeling of community and the economic interests of the area are all connected. These same points also form part of the work – life balance and even when we have a buoyant market, buyers want to know that the area, the community they are investing in has solid lifestyle appeal.
WHAT MAKES PEOPLE LOVE WHERE THEY LIVE?
As the density of urban areas increases every stakeholder – councils, planners, developers, investors and above all the residents know that the sense of place deserves more attention. A strong local identity described as a sense of place does, from a marketing perspective, create a competitive advantage and that will always influence prices paid in a particular area.
It will also influence future property values, they key factors feed into why areas experience strong demand form developers and buyers, it might be intangible and not directly articulated, but I think it’s worth devoting some time to the exploring.
The mix of community, the role of how creative a place feels, the physical appearance and the economic viability of a place all feed into this interesting mix.
Another factor, that we see in many suburbs is how quickly, as developments are finished and people move to the area, that it then changes. Over time this change might morph into ‘love of place’ and thus the community gives a big tick to the quality of planning and development.
Just what makes up the substance of creative place making, the factors that all come together in a desirable neighbourhood, can I think be pinpointed into three areas. These areas include – social appeal, accessibility (user-friendliness) and the aesthetics, the built environment. In combination they all sit behind the appeal of an area and individual projects, they are the marketing foundations and all directly impact prices and buyer demand.
The podcast I mentioned at the start of this discussion was mainly concerned about the role of the arts in helping to create or energise an area and community, however in my next post I want to look further at the role of creative place making as an vigorous part of the project development and marketing mix.
To read the second part of Peter's post, click here.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Making a creative residential place Part One: Peter Chittenden

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Over the past twelve months house prices have been on the rise, led by Sydney, but also in Melbourne and Brisbane.
Alongside this trend we have seen many high profile and extensively publicised auctions and pre-auction home sales with prices reported as well over the reserve having been paid.
We have also seen a number of apartment projects released for sale and sold out in only a few hours. Meanwhile, in parts of Sydney there's an ongoing land rush, with buyers camping out to buy a block of land in Sydney's booming north-west and south-west.
This sort of activity has not been an aberration, it's the type of market we are seeing more often than not. So called 'Super Saturdays' when big numbers of auctions come onto the market in one day are no longer the exception.
In Sydney in particular, we have almost an entire market showing strong demand even as prices continue to rise. On a slow news weekend this is the stuff of everyday drama, and so it's reasonable to examine why the market is acting this way.
Real Estate is a very different commodity
Against this sort of market environment setting the 'right price' might be starting to look like a somewhat scary prospect for real estate agents, for buyers and for sellers, for either a single private treaty sale, an auction or an entire apartment building or land estate. Real estate is a unique commodity, it is fixed in time and place.
Supply is very inflexible - you can't simply call up the assembly line manager and ask for a new delivery of homes, apartments or land. And we can't over look the overarching role of finance as a key driver of supply and demand.
Can we define value? When we set-out to define value, there is no lack of academic study or case law in this area but much of which comes from 'gentler times'. But none the less it's well worth considering. When looking at value there is the general supposition that firstly any buyer is perfectly acquainted with the property they are looking to buy, that the buyer does the necessary homework to size up the market, which today, thanks to so much published data is a far easier task than it used to be.
That buyers are alert of all the circumstances, which might affect value and the open market price, aspects both good and bad and ticking off a property's location, quality, access to facilities and the surrounding features. That buyers also understand the present levels of demand and the likelihood of what competition they might face, for example at an auction, from other buyers.
And then having either the ready cash or access to secure finance in a competitive market among those capable of buying a particular property. It all sounds very reasonable, very sensible, but then the factor of emotion enters the mix and any neat formula all of a sudden looks less useful.
So we might ask: what are the factors driving the 'emotion' in the market?
This article continues on the next page. Please click below.
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 Every Property is Unique
While economics defines the rules of supply and demand, the pressures of market over and under supply and the mechanism of price every property remains unique. As such, they rarely only attract one willing buyer.
As cities grow, there will always be competition and that's on the increase.
We should not overlook the impact of population growth. Currently, according to the OECD, Australia has one of the highest population growth rates in the OECD at near 1.8%, while in NZ its 0.9%, in the USA 0.7%, Canada 0.85% and in the UK its -0.8%.
We are fast heading towards a population of 24 million. This one factor alone helps to explain why homes are in such demand.
In New South Wales and Victoria, growth is being strongly fuelled by overseas migration and a big drop in the outflow of population to states like Queensland and Western Australia.
There is a finite supply and, yes, while you might be able to create more apartments or houses, every location is itself unique and so is the local community. They're not possible to replicate.
You can't put extra supply on a freight train and move it. It's fixed in place and time and is always influenced by local conditions. We also have a problem in the amount of time it takes to get new developments off the ground. The DA process at times appears to be stuck in the slow lane.
And because markets are so local, it's possible to have both under-supply and over-supply, which can't easily be fixed, if at all and so prices will always respond. If there are not enough properties for sale, then prices will always rise. Even in new estates or in development areas where more homes can be constructed it takes time to deliver new stock and so prices will rise.
People want to buy and secure their position now, even when this is via an off-the-plan purchase.
Property is local by nature and auctions clearly show how after reflecting upon all of the market factors (like those outlined above) the price paid will always reflect the scarcity and demand at any point in time.
Supply and demand in real estate isn't easy to balance, it takes time and supply needs to be in locations that buyers are after, that buyers want. Buyers are influenced by a range of external factors like the availability of jobs and local services and their needs can be very specific – schooling for a young family, university access for a more mature trade-up family or, for an aging population, medical, recreation and security might be the big issues.
Buying a home, an apartment or an investment in exactly the right community and neighbourhood is not that easy. So it's possible to see why supply and demand is always a local and very personal issue. When there is ready access to finance the competition will remain intense for limited opportunities and prices will always respond. This should not come as a surprise.
Demand and the prices paid for real estate are influenced by many factors including lifestyle options, investment goals, development constraints, population growth, demographics, off-shore buyers and finance. All of these then combine to influence supply and demand, and in today's market many of these factors are instantly recognisable.
 
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How much did they pay? And why?

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Historically Sydney embraced apartment living relatively early, in many inner suburbs there are examples of apartment buildings dating back to the 1930’s. Sydney’s appetite for apartment living has increased steadily ever since and this has resulted in a diverse stock of medium and high-density apartments to a greater extent than Melbourne.
Sydney has also alone successfully grown an urban landscape to become a ‘city of cities’ while the City of Sydney has long promoted the idea of a ‘city of villages’.
The evolution in high-density living and the continued growth of our varied urban centres has combined to help produced a rich and increasingly diverse apartment market. With each area offering interesting, diverse and appealing communities and neighbourhoods, as a result new apartment projects have also evolved in design and size to fit these different ‘cities’ and ‘villages’.
It’s a pattern of development that in Australia is unique to Sydney, much more so than Melbourne and with apartment living only going to increase, this extent of diversity appeals to many developers and buyers. It enables varied cultural outcomes to evolve and so makes each area more engaging and exciting.
One result is that we see architectural variety clearly responding to the different geographic and cultural markets that have developed. This also adds character to the city and creates different neighbourhoods that appeal to buyers.
City of Cities
Unlike Sydney, no other Australian city has developed the number of major high-density satellite centres such as Parramatta, Auburn, Bankstown, Bondi Junction, North Sydney and Chatswood.
This pattern of development is not surprising given the growing proportion of people living in high density housing. In 2001 one in seven (15.7%) of Sydney dwellings were classified as high density, by 2011 that had increased to 20.7%, today the figure is close to 30% and growing.
The highest proportions are located in the City of Sydney (70.2%) with the CBD (94.3%), and then followed by North Sydney (60.8%), Waverley (49%) and Woollahra (46.4%).
The appeal of these ‘satellite centres’ locations is somewhat surprising, as Parramatta, Bankstown and Auburn are all located some 20kms from the CBD, while Chatswood and Bondi Junction are within 10kms, which is often seen as the limits of the definition of inner-city.
However Parramatta is a great example so much so that recently a $2 billion proposal to rejuvenate its commercial hub was announced. And like Chatswood a strong high density residential market will be a key part of future plans.
City of Villages
In the 1950’s the idea of a CBD, as a district devoted to business did result in some areas becoming somewhat isolated from the wider community, and this historically residential development. Now that thinking has been reversed. Today the City of Sydney (along with most other cities) is one of the most dynamic high-density residential markets.
Taking on the idea of a series of villages, in part reflects international trends, but it’s a very positive way to help encourage and sustain residential areas and individual developments with wide appeal.
The City of Sydney has identified 10 villages, and these include the CBD and Harbour, Chinatown/CBD South, Green Square/City South, King &amp; Harris Streets, Oxford Street and Redfern Street.
With the village plan actively promoted, when we think of marketing and development goals we can see from various consultations how residents would like to see the area’s villages evolve.
What is interesting and perhaps not that surprising is that many of the key points residents look to encourage would be an exact check list for any successful development to address, including;
<ul>
<li>developing a sense of community</li>
<li>improving public transport (plus encouraging bike riding and walking)</li>
<li>supporting local services and businesses</li>
<li>solving parking problems</li>
<li>‘greening’ streets and neighbourhoods</li>
<li>promoting safe and clean public places.</li>
</ul>
For residents the idea of a City of Villages is appealing, however to meet the needs of a modern economy the long-term planning for any city needs to accommodate commercial growth and all of the associated services. Today we also see that a mix of development, including a range of residential projects clearly helps to enhance and create a more vibrant city.
As Sydney continues to grow as a ‘City of Cities’ we will continue to see further urban consolidation, much of which is based around transport connections. People and planners are attracted to existing suburbs and so the idea of a ‘City of Villages’ also makes sense, the idea allows for sensitive development while retaining local character.
Sydney’s supply of land, in particular land with reasonable access to services and employment is very limited and so both these trends are set to continue, and I think make a positive contribution to our urban environment.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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City of cities, city of villages: Peter Chittenden

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

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The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

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The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

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Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

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Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

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Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

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Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

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Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

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The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

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The apartment price gap drawing Sydney buyers west

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>.

Peter Chittenden

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