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As the budget headlines fade I think there are some long-term challenges that will impact the frame of mind of many people in the housing market, in particular the first time and first level trade-up buyers.
Although the federal election is still four months away some key aspects of the budget are going to linger.  We are going to hear a lot about the budget deficit and this fact alone may help to deflate some areas of demand. Our market does not like dodgy news.
Falling government revenue will limit activity
The budget highlights a big fall in tax revenue and there is now constant talk of financial restraint and combined with more job losses consumer confidence is already slipping.  Jobs are being lost on many fronts and with cuts to the federal public service looking certain under the coalition, even if the cuts are achieved by natural attrition, higher levels of unemployment will impact the housing market.
Still if we see home loan rates fall even further, that alone will not be enough of an incentive to tempt big numbers of first-time buyers back into the market, because the market is very sensitive to unemployment.
Over the last 12 months we have also seen direct government incentives either withdrawn or scaled back and while individual developers might still offer incentives, they may be less inclined to do so in a tight market. The FHB market has gradually fallen away as incentives have disappeared and incentives did not really boost supply.
Lower interest rates and higher unemployment
Since home loan rates peaked in 2008 we have seen a downward trend taking many rates to comfortably below 5%, and they may well fall further. But that will be a mixed signal to the market.
At the same time we have also seen unemployment rates move from a very tight labour market at around 4% to a range over 5% and edging towards 6%. The rate has been trending upwards, even if slowly since mid 2012. A rise from 5% to 6% is a big rise of more than 16% – its not the headline rate but the increase that is the big indicator as well as more subtle shifts away from full-time employment.
The same applies to interest rates, if you have a drop of 25 base points when home loan rates are close to 5% that’s a considerable cut by comparison to a similar cut when rates are at 6.5%. The budget does not contain measures that appear to have the immediate potential to encourage more employment and that’s a reality that will impact the housing market.
The GST debate
One item post budget policy that has received a fair amount of attention is a possible future change to the GST, albeit after the next federal election in 2016. That review is bound to add pressure for wider reform, but will it?
From many comments published here, not only my views but those of others in the industry, any GST review must be tied to a reduction or removal of property related stamp duties even more so if the rate jumps.
On the surface there is plenty of room for that to happen. If GST goes from 10% to 12.5% (as it currently is in New Zealand) then that would raise $12.5billion for the states. That sort of revenue boost might hopefully lead to better services but also to better infrastructure planning, but we need a more direct dividend.
A possible higher GST rate does have to impact stamp duty otherwise affordability will continue to decline, a tax on a tax looks a very poor outcome when you consider the burden of stamp duty. Sydney now has 100 suburbs with house prices over $1,000,000 and this is leading more people, and this includes families, to look at apartments as a good option and so designs and facilities are having to respond to this shift in demographics.
Marketing hurdles
The content of the budget will impact employment, and economic growth is clearly going to slow. We need to be responsive to and anticipate the consequences for the housing market and how to adopt our marketing and product mix accordingly.
I think some of the key points will include the reality of a more conservative and cautious local buyer. This may make offshore buyers more important as targets for some projects and in particular larger inner-city projects, it’s a trend that is already well established in Sydney and Melbourne with a slant towards the upper-end of those markets.
I also believe that a tighter housing outlook will have buyers looking very hard at key facilities and how well a location stacks up with transport and access to employment. Buyers are going to be thinking more about their total household budgets and lower home loan rates will only be part of their calculations, high transport and poor services will be negatives.
One final impact is that buyers will continue to do their homework in ever more detail and they may well take longer to commit to a project, this is already a trend. Buyers in 2013/14 may well be far less influenced by their hearts, and much more by their heads. And even as affordability is getting better, thanks to low interest rates and relatively stable house prices the realities of the local economy have been brought into focus by the budget.
Some of the impacts, like tighter spending are going to have a direct short-term impact, while others like planned infrastructure spending and the GST debate are going to be long-term influences that will sway market sentiment.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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The real estate implications of the federal budget: Peter Chittenden

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With the federal budget now almost one week old and with the flood of commentary starting to slow, I wanted take a look at how this budget impacts the housing market. With my usual emphasis being new apartments, land estates and packaged estates.
At first glance this budget was, with only a few exceptions, a fairly neutral budget for our sector. Or was it?
Apart from the headline points, that I will expand upon, I personally think there are some seeds of a much wider discussion coming out of the budget that will affect our marketing priorities over the next few years and perhaps beyond to the end of the decade.
The reason why I have this view will be outlined in my next two posts.
Let’s tick off the key items
If we’re looking for the matters of substance that will impact the property market and in particular new developments then we need to consider a handful of items. To my reading these include, infrastructure, downsize assistance to seniors, changes to the baby bonus and a generally feeling of restraint in the budget.
But these comments also need to be read not only in light of the government’s budget itself but also the Opposition's budget reply. In the budget reply we also see a policy of restraint, which I will return to, but also some overlap via paid maternity leave and the announcement of a review to the tax system and this appears to now include the GST.
From the point of view of many people in the housing market or looking for a new home, I suggest that this short list of policies has the potential to impact the market long after the memory of last week’s speeches fade.
Some key demographic changes
If we take the wider view of the combination of policies touched upon in the budget I can see areas where the key demographics we deal with everyday may shift. So let’s take a brief look at why.
Downsize assistance
While I agree with the already expressed point of view that the downsize assistance being offered in the budget is very specific and highly targeted, the measure is important.
It signals the awakening in policy settings of how important this generational change in the housing market is going to become. Baby boomers hold much of the housing stock and if they remain reluctant to move the ramifications need to be more fully debated. Also from a marketing perspective, we need to ask if we are addressing this market with enough energy and on-target messaging.
Or is this a sector that is being neglected or at the very least taken for granted? Some evidence suggests so.
It has been estimated that less than 10% of Australian advertising expenditure targets Baby Boomers, despite the fact that the boomers are now entering the ‘lifestyle’ stage of their lives and have more disposable income than any other group.
I think that property marketing would fall into this group and needs a re-think well beyond the conformist idea of a sea or tree change. Even more so if more of the baby boomers are to encouraged to move over the next decade.
 
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Infrastructure front and centre
The national figures for the amount of new infrastructure are as we all know colossal. Last week’s budget listed some big figures and big ambitions. But I think the key message is that development will be stifled if words do not lead to action. When we market almost any project the role of infrastructure is key.
I was reminded of this recently (not that I needed reminding) when I was in the North West of Sydney. In the late afternoon I drove towards a newly up-graded CityRail station that also adjoins one of Sydney’s major growth areas.
What I saw all around the station was an endless sea of parked cars, not only in the car-park but also for as far as I could see in every direction, cars lining local streets. It reinforced to me how starved some areas are of decent public transport.
As an industry we need to help ensure that infrastructure remains a key issue in federal and state budgets so that promises become reality.
The baby bonus – paid maternity leave
Outside of the National Disability Insurance Scheme, policies surrounding the baby bonus and maternity leave are key budget points that can influence social policy and market demographics. While changes may not result overnight, both are policy areas that may well impact the shape of demand in the housing market.
For several years Australia has seen the biggest baby boom in our history with births eclipsing the peak of the original baby boom that ended in 1961.
Recent Australian Bureau of Statistics figures show that our population growth is one and a half times the global average. Women are waiting longer to have children, with the average age rising steadily since 2000. We have also seen that the proportion of mothers aged 35 and over also continues to rise.
The current debates around paid maternity leave and the shape of any ‘baby bonus’ are key in helping to shape housing demand, and so last weeks’ budget should remind us of this fact.
Back in 2002 The Howard government introduced the baby bonus payment as the fertility rate hit an all-time low of 1.7 children per family in 2001. Now it can, I think, be reasonably assumed that as a result of that policy the fertility rate is now more than two. Such policies do directly bring about demographic change and this influences the shape of the housing market.
Fiscal restraint, budget cuts and the GST.
Last week I looked at some of the challenges of marketing projects in a low interest rate environment.
Now that we have the budget clearly setting a policy of fiscal restraint, expenditure cuts and a possible future change to the GST albeit after the next federal election in 2016, how might this influence consumers?
The content of the budget we need to look at are the possible consequences for employment, economic growth and the flow to consumer confidence in the housing market. In my next post let’s consider how these big-picture points plus the matters already highlighted all combine and consider how we may have to adopt our marketing and product mix.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
 
 
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How the federal budget will impact the housing market: Peter Chittenden

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A creative brief might well be issued under varied circumstances.
The brief might be a part of a submission to help win a project appointment, it might come after a client has selected their marketing agent or it could be a new brief mid-way into a project.
It is more common that the creative brief will cover the anticipated life of the project and that can cover varied time frames, but during the life of the project circumstances are bound to change.
We know that the launch phase is a very different message from ongoing marketing several years along the timeline. What this means is that many advertising campaigns will kick off in the market well ahead of any product being available or yet under construction. Even where the campaign content is only focused on an ROI (registration of interest) phase, the creative must be relevant to the task.
An ROI campaign does not really offer product as such, it is more the promotion of a future opportunity. For many buyers the message can be all about getting an early place in the queue and for clients and often the financiers it’s all about securing those all important early sales off the plan.
Some time later when a project is partly sold and buyers have moved in, the project has a new life force of its own and that will usually require different creative content.  These are only two points in what can be a complex marketing setting. Given the importance attributed to creative and its impact on the advertising budget and the sales path let’s look at how a good brief can be structured and then reviewed.
Getting started
If we accept that the creative message must always help to drive sales, I think the first few steps in putting together a solid brief will usually involve the following well-established points:
<ol>
<li>Have a very clear map of the market you’re going to be selling into – not an industry – but a layman’s version.</li>
<li>Review the brief and the eventual submission with a consistent and if possible, diverse team.</li>
<li>Avoid industry jargon.</li>
<li>Agree internally and then set clear goals.</li>
<li>Be open-minded – experience is to be valued but just as much, new ideas.</li>
<li>Agree one final decision maker – committees never work.</li>
</ol>
With these key ideas in mind, and I don’t think I am suggesting anything revolutionary, let’s move onto how the formal brief is put together. While the process should not be made too complex, an investment in a solid brief will pay dividends.
I think that a formal brief can be prepared based around the points just discussed. Aim to include input from the entire project team, and this team should be as inclusive as necessary. I have also seen some benefit internally when preparing the brief because it brings into sharp focus many aspects of the project’s sales path.
This effort to prepare a brief, will also reflect how the client is structured and resourced, but in broad terms as I know from experience and from guidance issued by groups such as the APMA and the Marketers and The Communications Council, it is essential the brief should contain the following:
• Address all sales path issues of the project – revenue targets, timelines and all key financial matters
• Detail all competitors, market share, market dynamics, depth of the target market and all available demographics (and if necessary highlight any areas where more work is required)
• What are seen as the major marketing objectives – take a birds-eye view of this point
• Establish a clear vision for the project’s brand overview
• Agree the key messages
• Communicate yours and the clients objectives
• Detail the budget requirements – and this should cover a complete breakdown across all marketing related costs that the agency will be required to deliver – including all media rates and contracts
• Include an expanded competitive overview (that agencies invited to pitch can either supplement from their own research or not)
• Are there any Global branding requirements from the clients or your own internal brand guidelines
• Contract and payment terms and fee structure
• Outline in detail what you expect the pitch to deliver such as strategy, creative solutions, timelines, budget, the agency team
• Detail the time that will be available for the pitch and try to allow a reasonable timeframe– avoid rushing this important part of the project
• Detail how the pitch will be evaluated – this step can also help focus your own internal view of the project – have all points been covered
• Will any pitch fees be paid
As the project matures
Moving past the briefing process and the preparation of marketing assets, I feel it is important to help keep energy in the project with the project marketing group delivering a collaborative process.
As I have already suggested this is not a process of marketing or decision-making by a committee but a process that engages the experience of the team.
This involvement should have already started with the creative brief. If there is common ownership and consensus on the brief then this should help to short-circuit any potential problems, just the opposite in fact, creating enthusiasm and energy.
After the brief has been signed off the creative agency should respond with the required content and a creative presentation supported by a strategy and how their ideas will progress the marketing plans.
Then aided with feedback, the creative development would go ahead and between the project group, which now includes the agency, establish ‘ownership’ of the location and the marketing plans and I suggest that team ownership will always benefit the project and the client’s objectives.
It is however very difficult, even with detailed research, to understand exactly how people will see and react to a particular creative message or in fact the project itself.
What is clear however is the need for the creative message to change over time so that the message being sent to the market always has direct relevance. It is also possible that too much change can also create confusion in the market and damage the brand values of a project.
This is of particular relevance in project marketing where the time frame may well run over many years. The aim of the creative process is to get results, people on the telephone, people attending open for inspections, people registering their details, walking into the sales office or display home.
While creative is a subjective issue based upon individual opinion, there are a variety of tools to help manage this important area.  The brief and how the marketing is managed are key.
I feel that a team approach is important because when ownership of the creative and marketing is embraced and nourished by the entire project marketing team, a strong and successful sales path naturally follows. And that’s the result we all want.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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Getting the creative content right in project marketing: Peter Chittenden

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The New South Wales government has announced a review of the state’s planning laws suggesting some of the biggest changes in 35 years.
A white paper and draft legislation have been released and comments can be submitted until June 28, 2013.
Key among the changes will be how infrastructure is planned, delivered and paid for. For many years infrastructure has been a central concern among planners, the community and developers and has been a reoccurring theme for Project Agenda.
The white paper is proposing radical changes to the infrastructure charges and there is an urgent need for change as the current system can add as much as $100,000 to the cost of a new home. The current levies are seen as a major constraint on improving the level of supply of new homes in Sydney’s growth centres.
Currently developers are charged for, and then pass on, the costs of varied facilities and local amenities to buyers. The system is seen as very complex and expensive and lacking transparency.
Brad Hazzard, the NSW planning minister, has been quoted as wanting a simple and cheaper way of funding infrastructure with a direct link between the contributions and what is actually provided. From the feedback that I have observed, both the development industry and the wider community will welcome such an outcome.
The minister’s plans will limit the role of councils and ensure that money raised will be spent within three years and not simply squired away. This appears to be an overdue policy shift given that 43 Sydney councils have been accumulating $760 million of developer levies. Under the changes, local council will only be able to charge infrastructure fees for specific areas that will include essential roads, drainage and parks, and they will be unable to use levies to fund other projects.
But the big question, that only time will answer, is will these changes and many others contained in the white paper help improve housing affordability?
In theory the answer is yes. Because with new homes getting approval in just 10 days and some apartment projects and land subdivisions getting the go-ahead in less than a month, then in total all of the changes to the DA system are suggested to generate savings of up to $1.7 billion over the next 10 years.
Possible levy on all new homes
However, one aspect of the white paper that also requires some comment is the suggestion that a levy will be placed on all new home construction in metropolitan areas, not just those in new estates. The idea is that this levy will be redistributed and used for Sydney’s infrastructure shortage. The move to cover established areas is new and may impact investors and the knock down and re-build market.
While more and better infrastructure should stand to benefit, the possible levy which has been described ‘modest’ will be another cost that the end buyer may have to bear and is one of the ideas in the white paper that has received a lukewarm response.
But if we get better infrastructure and swift planning approvals then all buyers, property investors and developers should stand to benefit. There is no doubt that this debate will be very much back in the headlines in late June.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
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Time will tell if proposed changes to NSW planning laws improve housing affordability: Peter Chittenden

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Following last week’s content I wanted to reinforce the importance of planning.
I am always keen to cover the entire project timeline and where <a href="https://www.propertyobserver.com.au/trends/defining-creative-content-in-project-marketing-peter-chittenden/2013042260626" target="_blank">creative content</a> plays its part.
While planning has to be flexible and may vary, if we cover the entire timeframe from the start then there is a far better chance that the required sales will result.
A good start is to aim for a robust marketing plan aligned to the resources available and an ongoing integrated communications should also include the creative content.
One clear focus that all we must address will be securing the critical number of sales required before a project starts construction or gains financial backing.
The rate of sales achieved will always be a critical measure of activity.
Finance, the rate of construction or civil works are all impacted and so an understanding of the project dynamics should help drive the creative message and marketing content.
Experience shows that the creative message will need to change in line with the different stages of the sales path.
During the progress of any development the creative message will be influenced by a variety of factors and there is always a need to keep the sales plan relevant and on target.
A well-managed sales path will be dynamic and the campaign content will reflect this. A solid sales path should anticipate how messages may need to change, but at other times an unexpected u-turn in market conditions will require a quick but measured response.
Varied stages of construction for example can be used as good news to generate new buyer interest. Some external factors are far less predictable, but they can still be used to drive sales and rejuvenate the creative message.
The how and what not the why
The creative process needs to make a positive, measured contribution and I have always thought that it is an area that should not be ‘micro-managed’ either by the developer or the sales team.
I also think that we can be caught up in the how and what of projects and so over look the why – that is why would a buyer look at this or that project.
Our buyers do after all already know the how to buy and what is on offer but we need the creative message to persuade then why.
So I do appreciate that while there is room for a collaborative approach if the creative resources are handicapped then the results will be compromised.
 
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From a general perspective, it is helpful to consider what the creative message needs to achieve, and not concentrate on housekeeping issues otherwise we can find ourselves playing catch-up. The aim should be to have some core objectives and while I am sure that most creative teams understand this here are some key points that I think are useful to keep in mind:
-       Cut through the clutter – with clear relevant and clever ideas.
-       Make a meaningful connection to the consumer.
-       One they will understand and want to respond to.
-       Build valuable content in the project web site.
-       Make the web site a resource not just a reflection of other material – repurposing material can look like lazy marketing.
-       With so much information on-line web sites need to add value other wise they just look like a shop window.
-       Match creative to the delivery channel both traditional and digital media and have an integrated content plan.
-       Create anticipation but do not over-reach the target and remember that there will usually be a need for ongoing communications.
-       Create an integrated experience so that all creative is leveraged to it maximum possible benefit.
-       Create a positive experience for everyone involved – this includes the sales team itself as well as the target.
-       Convince people to commit to the project.
-       Use incentives that work and do not diminish the core quality of the project.
-       Make a difference in the market.
-       Create a strong brand and desirable brand.
-       Do not under estimate the value of customer service – even after contracts are signed there is still a big job to do.
The creative role – why it’s important
It is impossible to avoid advertising. Across a wide and expanding choice of media options, advertising surrounds us from the moment we wake until we fall to sleep at night. The advertising space and the media in general are full of products and services fighting for our attention almost everywhere people move and thanks to smartphones and tables that now includes private spaces.
In reality there is now so much ‘noise’ in the market and all consumers now have so much information that some advertising is becoming invisible as consumers look elsewhere for the information and leads they need.
Property is just one product on offer and when it comes to the promotion of major projects a big part of the project marketing budget will be absorbed by the varied advertising options, this can account for 35%-45% or more of total marketing budget.
Given the level of noise in the market place and many of the points already outlined the role of creative, the content of our ‘storytelling’ will be critical. All advertising plays a central role in driving potential buyers to our product. It is also the public face of the project and so creates the brand in the hearts and minds of our target market and the wider community.
There will be ongoing comments between the need to balance product and brand, in particular brand as it relates to individual projects however given how transparent the market is brands are now more important than ever.
The creative messages, the look, tone, content and feel of creative material, will always be an area of debate. What one person sees as good or even great creative, will in another persons view be poor or irrelevant creative.
However this situation should not deter or diminish the creative role within the bounds of project marketing. Creative design is a part of the product promise and so has warranted this discussion.
Many people involved in the Project Marketing field, both clients and advertising/creative agencies will agree that great creative more often than not has its heart in a tight and well-developed brief and is one key part of the brand foundation.
Understanding what all stakeholders are looking to achieve, in the widest sense of the word will always improve the briefing process.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
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Planning is crucial to the creative content in project marketing: Peter Chittenden

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This is a subject that will, I am sure, always generate many different views and opinions. It’s an interesting and rewarding topic and while I am sure that there is not a particular textbook solution, the subject of creative content in any project marketing campaign deserves our attention, so let’s have the conversation.
No matter how small or big a project might be, from the creation of a logo and name, to the feel and tone of all advertising material, what some consultants now term ‘the brand lock-up’ I think we can agree that the creative content of any marketing campaign is always significant.
This is an area where opinions will always vary and I have been involved with some projects where the creative content has been tricky to define. The creative of every project heart is important because it will influence all activity and there is also an increasing trend where the built product is itself influenced by the brand values.  The creative content above all needs to engage the target, aid communication and help enrich the sales path and buyer experience and sustain the brand values. Now that’s a big job.
And so while this may not be an area that is instantly defined, as one particular solution being ‘right’ and another ‘wrong’, one key point remains and that is to always match the creative material and buyer expectations. Avoid shoehorning the project into a particular trend. In part this can be avoided by having a solid working brief that is underpinned by detailed product, market and demographics knowledge.
When I get towards the end of this topic we will look at how best to prepare a creative brief to external advertising and creative agencies and then how to reach a decision on the resulting pitches.
Experience has shown me that it is possible to both over-pitch and under-pitch creative material. Again we need to always keep in mind that creative extends across all marketing activity. It is not just applied to advertising or brochures, websites and signs, but should reach into and influence all activity. 
Then we need to make sure that any creative execution also sits within the wider context of the marketplace into which the message is being projected. In other words I think that the creative needs to be apt for the market audience. My view is that when marketing a major project that this is an area associated with major lifestyle choices, and for our buyers it will usually involve large amounts of money. The target market is not looking to take silly risks.
As we have seen over the past few years, post-GFC there has been an underlying reaction to the prevailing economic outlook. For what appears to be the vast majority of consumers debit and excess have become undesirable. Clearly the market from top to bottom is more conservative and cautious, and this is even more so among anxious first time buyers
How and why this is happening merits some deliberation and while not the only factor, it does however need to be reflected in how the creative message is currently formed.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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Defining creative content in project marketing: Peter Chittenden

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Like many other markets across Australia, Queensland’s south-east including Brisbane and the Gold Coast have seen falling lot production over recent years. Since a peak in 2003-2004, supply has been in decline since 2007 and unlike trends in Victoria and NSW an up swing is not yet evident.
However in terms of land marketing, there are some good results being achieved and one estate in particular on the Gold Coast helps to highlight how the right combination of size, location and price will produce strong sales.
In what is described as ‘a bumper sales run’ we can see <a href="https://www.northpoint-hopeisland.com.au" target="_blank">North Point at Hope Island</a> (pictured below) as the fastest selling land estate in south-east Queensland and certainly as strong as many other locations along the entire eastern seaboard.
<img alt="chittendenapril16one" height="292" width="470" src="/images/stories/2013/04/chittendenapril16one.jpg">
The recent strong sales are also seen as a further sign the Gold Coast’s property market is on the road to recovery. This good news comes from project marketing director Tony Holland of Colliers International's Gold Coast office. Tony believes that Gold Coast-based buyers have identified the unrivalled value at North Point, where waterside lots are selling from $215,000.
Price is always a central consideration and as markets in Brisbane, Perth and Melbourne start to converge North Point stands as good value as supply continues at low levels.
However as the south-east market continues to grow, the appeal of waterside lots is clearly set to remain very attractive.
Tony Holland reports that in less than 12 weeks, over 60 contracts have been issued for the estate resulting in sales valued at $15.8 million. An even stronger result when you consider that this is the first release of 73 home sites at North Point. Hope Island is a very desirable location and targeted marketing has helped to secure this result and importantly it represents a rate of sale that has not been seen in this area for many years.
 
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The marketing has helped to reinforce the fact that locals know that North Point offers competitive prices for a quality location like Hope Island and this has been strongly realized in the sales results.
<img alt="chittendenapril16two" height="308" width="470" src="/images/stories/2013/04/chittendenapril16two.jpg">
I asked Tony what were, in his experience, the key factors that had driven the results, and he pointed to some familiar territory.
“The local market is well aware of the lifestyle and location advantages of the area and they have enthusiastically embraced the terrific value proposition of this project,” he said.
“North Point has also come to the market at a time when the supply of residential land across the city was now starting to lag behind rising demand.”
The UDIA State of The Land Report shows that supply has yet to recover in Brisbane while Colliers International’s own research and forecast report for south-east Queensland communities found that land sales on the Gold Coast had jumped 45% in a six-month period while reflecting the UDIA figures approvals continued to slide and this fueling demand and prices were now moving up.
Another fact that is pushing demand in the area is population growth. The latest census data shows an increase of around 7,000 residents annually over the last five years creating demand for an additional 2,800 dwellings each year.
Dwelling approval rates over the past two years have fallen well short of this demand and if this continues it may well result in developers considering bringing forward the release of lots currently on hold.
From a marketing perspective Hope Island is a popular area and it is forecast to need 3,000 more dwellings over the next decade as the suburb’s population grows to more than 15,000 people and in any future growth land like that at North Point on the waterside locations.
Research from Colliers International and the UDIA also reveals the weighted average sale price of residential land on the Gold Coast was almost $245,000 and so here again we see that value is a key proposition well marketed for North Point’s success, as Tony highlights.
“Given the current market dynamics, North Point offers the chance to snap up land in a prestigious location at prices that start below the current average and so there is reason to see some clear upside for anyone buying now,” he said.
When we stop and look at the marketing activity it is clear to agree that astute locals are taking advantage of this rare window of opportunity. Colliers International Gold Coast and Foxwood Property Solutions are marketing North Point under instruction from Philip Campbell-Wilson of Ernst &amp; Young, acting as receiver and manager and this fact will also have acted to encourage buyer interest in the estate.
North Point comprises a selection of both waterside blocks from $215,000 and premium waterfront home sites with marina berth priced from $430,000. Lots in the initial releases of North Point range in size from 415sqm to 584sqm, a range that is now seen as above average.
North Point offers a good example of how impressive results can be achieved from a well-planned and detailed sales path that is directly aligned to market conditions, but it should also be acknowledged that the wider market is still somewhat hesitant and so this volume of sales comes from leveraging all of the facets outlined.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
 
 
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Sales at Queensland's North Point development show value of detailed sales path: Peter Chittenden

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I want to spend some time talking about how ‘the collision factor’ can applied to marketing, communications and in general to building business culture.
No, I am not talking about the collisions taking place in the Large Hadron Collider under the Swiss-French border, but about the value of unscripted collisions or interface between colleagues and with customers.
In January I spent some time talking about the many trends and benefits of digital and online <a href="?option=com_googlesearch_cse&amp;q=online%20marketing" target="_blank">marketing</a> and how this area continues to grow massively.
But I think that it is also equally important to retain and value the face-to-face contact that still, in my view underpins successful project marketing and further any sales path will not be successful without a high level of personal engagement between everyone involved.
While a great deal can be achieved in the digital world and many an email will flow during any sale, it’s relationships that count.
Even Yahoo needs the water cooler
Here’s just one example worth thinking about. In late February there was news that some even painted as treacherous when Yahoo CEO Marissa Mayer ordered that her employees work at the office instead of at home.
The question is: how is this related to my topic? And further: where is the relationship with creative marketing to be found? While some people suggest Mayer’s move was more to do with Yahoo’s troubled history, I still think there were a few basic points in Marissa Mayer’s move that are worth reflecting on.
Her mission at Yahoo has been about shaking up the status quo and so while I understand the objections that have followed, I think it is good to shake things about and this also applies to marketing, because we can all become overly comfortable or we can latch onto this or that idea as ‘the answer’.
And so while we are a long way from the problems that Mayer might be facing, the debate she has started is relevant.
From a big picture sense I agree that interactions among employees — the idea dropped at the water cooler, over a coffee, or even a remark as you wash your hands – can sometimes be worth a week of workshops.
I also think the same casual encounters with clients and customers can produce gems of feedback or good ideas. And if we reduce this sort of interaction we are all the poorer.
Collisions between people can also help grow and improve initial ideas so that they can morph into something else, something useful, and this process can be frustrated if caught up in a more formal process.
This is stuff that can’t be captured completely in email while a casual collision can be a refreshing experience, some good or even great ideas can’t be planned because we don’t know what direction creativity will take us, I think that we do better together in an open exchange and always will.
I also think that by being open to different ideas, in particular when we look for a creative idea it’s worth moving away from a form of template approach.
If creative leaders show up to argue their views across varied formats, and this will include digital, then they do a good job.
I have great respect for people who are able to generate new ideas but I also appreciate that being too prescriptive can mar the creativity that some projects desperately need.
While the digital world delivers great results I am willing to strongly suggest that projects, sales teams and marketing groups all need live bodies present and talking face-to-face so there is room for a collaborative approach that does not handicap the results that need to be secured.
From a general perspective I think that the Yahoo example is helpful when we are building teams that will look at what creative and all levels of communications need to achieve, and not concentrate on a particular look or channel of media.
Running into a buyer in the local supermarket or a sporting event who gives some ‘collision’ feedback might just be the idea you are looking for. The result or idea could well be a marketing gem and sales success and I am not that sure the same buyer would email any of us such feedback spontaneously.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
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Applying 'the collision factor' to project marketing: Peter Chittenden

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Asian investors are particularly active purchasers of Australian residential property. They are probably our most active buyers, consistently, when it comes to apartment living.
There are a couple of reasons Asian investors like Australian <a target="_blank" href="https://www.propertyobserver.com.au/western-australia/pilbara-apartment-project-helps-drive-earnings-and-profits-for-wa-developer-finbar/2013031259597">apartment projects</a>. Firstly, as a demographic, this buyer group likes apartment-style living.
They are very educated on the benefits of being located close to amenities, recreation, education, transport and employment.
They don’t like long commutes, with their playground being local parks, restaurants and the like.
In Australia, we design our apartments in many shapes and sizes to suit many demographics.
In terms of the type of buyers who target Australian projects, apartments are generally more suited to <a target="_blank" href="https://www.propertyobserver.com.au/retail/private-investors-return-to-retail-property-market-as-trusts-sell-out-chart-of-the-week/2013032560066">investors</a> than owner-occupiers.
There are low vacancy rates in all our capital cities, and this type of unit is easy to maintain. Where you get apartment buildings that contain more than 100 apartments, generally owner-occupiers tend to shy away, they go for more boutique-style developments.
This kind of project is generally always located in a capital city transport hub – they primarily serve to take up rental market demand.
Asian investors who target Australian property predominantly come from mainland China, Hong Kong, and Singapore. The next tier of investors come Indonesia or Malaysia, but we also get quite high demand from India.
These buyers generally already reside in Australia, they are first or second generation and are looking to get into the property market.
Overwhelming, however, the majority of our buyers are from China. Overall, the Chinese are generally well travelled and knowledgeable about world activities.
They are bullish on Australia because they have the benefit of being able to compare regions, they can appreciate how good our market is.
Things are only going to get more expensive over time, and this buyer group understands that – they understand that property investment is about long-term growth, and they can see the future potential in Australia.
We greatly admire their bullishness.
For more on the allure of Australian property to Asian buyers, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook. </a>The eBook is also available for<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> free download in Chinese.</a>
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Asian investors keen on Australian inner-city units: Peter Chittenden

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As outlined in my <a target="_blank" href="https://www.propertyobserver.com.au/trends/bridging-the-gap-between-buyer-expectations-and-affordability-peter-chittenden/2013031859927">earlier post</a> The Property Council of Australia’s Outlook Series aims to encourage informed debate and in Project Agenda’s perspective that refers to residential markets in 2013.
Here I look at some of the most important drivers of Sydney’s apartment market as we continue to consider how to ‘bridge the gap.’
What will 2013 bring?
To start this topic we need to check-off what is required for any <a target="_blank" href="https://www.propertyobserver.com.au/western-australia/pilbara-apartment-project-helps-drive-earnings-and-profits-for-wa-developer-finbar/2013031259597">apartment project</a> to be a success. I think that there are five key drivers, they are clear-cut and they apply to all markets and none should come as any surprise. They are: convenience, infrastructure and amenity, transport, education and employment, and affordability.
All of these are constants in the market and from my direct experience all were very important to buyers in 2012 as they been for many years.
However before we look at how these points are impacting the market, I want to take a few steps back and look more closely into the minds of our current buyers. Already we have discussed how much more conservative buyers have become and even with very low interest rates, they are hesitant and not very keen to go head over heels in debt.
Part of the reason for this I think can be found by answering the question: what will my property be worth in five years and what will be my return?
Buyers of all kinds – and this includes investors – are very sensitive to these questions and over the past few years there has been a shift in the balance of how much buyers will borrow and what future equity growth they expect. Lets take the view of a pre-GFC buyer, they anticipated that over say five years their equity might increase from a starting point of $50,000 to $150,000, and on a $500,000 purchase they were happy to take on a loan of $450,000 because after five years their property had jumped in value to say $600,000 – and at times they were even happy to ‘spend’ that equity.
Now the picture is somewhat changed, capital growth may have slowed so that our example of a $500,000 purchase shows a value in 2013 of a more conservative $520,000, but the buyer’s equity is being used to sustain a smaller loan, the equity is seen more as a means of saving. These savings are not being chased out partly because of the much more conservative nature of the market. This is a major shift towards a more ‘normal’ market.
Who are the buyers?
While first-time buyers might be in a state of flux, they are still an important part of the market, and doubtless there may soon be more incentives on offer. However the full definition of who are the buyers for Sydney in 2013 covers these core groups:
Generation X &amp; Y – They steer away from long-term obligations and are a challenging group to please on the sales path as they are very attuned to propaganda growing up in the world of marketing. However, their property requirements are typically simpler – lifestyle and convenience.
Divorcees – this is a major driver in the Sydney market and whilst they have similar property needs to the Gen X &amp; Y they cover a very wide range of age brackets and are more driven around location due to their dual-lifestyle.
Local Asian buyers – strongly driven by infrastructure and location. This group wants fast, efficient sales assistance and will respond quickly. They have also been known to buy as ‘contended tribes’ – one buys, a family buys.
International buyers – these buyers tend to be very sensitive to the price point, exchange rates and location. It’s all about the numbers to them. With sometimes being later aligned to factors such as access to a select schools or universities.
Investor Networks – as I have already outlined this is a very important group moving into 2013, and is very tied into the demand for rental accommodation, which I will cover in a post later this week and our investors are ever more demanding. These networks take experience and dedication when managing and servicing to deliver successful results.
Retirees – we know this group well and have been selling to their needs for the last 10-15 years. Now the question to ask is who are they buying for? A new home for themselves, their kids to help them into the market or for their retirement via a SMSF.
 
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Marketing into 2013 and beyond
It is clear that our buyers are a complex lot!
More demanding, more market savvy and in some cases in no particular hurry and this all adds up to a marketing environment where there will be a number of imperatives for success and all must be meet head-on.
Above all it is essential to know and understand inside out the audience you need to reach and engage. Marketing plans will also need to be refined to capture a critical mass of <a target="_blank" href="/guides">off-the-plan</a> sales in a setting that is more critical than ever from a funding perspective, but also securing sales where urgency is not driving buyers.
If sales at completion are the better plan then again the pressures will be very different and the financial pressures will again have to be factored in. In combination all of these factors lead us to more than ever appreciate how important it is to have a full detailed and effective sales environment. Once we have the buyer interested in our project the right sales environment will pay dividends.
Where will development occur in Sydney?
Against the criteria I have outlined let’s look at the market ahead for 2013 in two areas – inner and outer and in each case what will drive demand.
Because of the concentration of apartment projects lets start with the inner suburbs. In this group, and because they meet the points outlined earlier I think that some of the key inner locations will include: <a href="/news">North Sydney</a>, <a href="/news">Wolli Creek</a>, <a href="/news">Eastwood</a>, <a href="/news">Gladesville</a>, <a href="/news">Cronulla</a>, <a href="/news">Sydney CBD</a>, <a href="/news">Bondi Junction</a>, <a href="/news">Waterloo</a> and <a href="/news">Botany</a>.
As a group these locations all offer three key incentives that buyers are after, convenience, amenities (in particular transport &amp; education) and existing infrastructure.
When we turn to look at the outer areas the picture is less clear, just this weekend there has been another announcement of 170,000 homes.
The New South Wales Government has unveiled what look like a somewhat ambitious plan to supply the more 170,000 new homes across greater Sydney. The plan also nominates eight existing suburbs that will be re-zoned for 30,000 new high-density apartment blocks.
However the key drivers of demand in outer markets will be those areas aligned with both existing and new rail corridors, with only one new link, the south west link actually underway that area should benefit.
Sydney’s motorway upgrades are also key but so far they have not delivered and a racing to catch-up. While where essential services are not available development will lag and this will give in-fill sites the upper hand in marketing and buyer demand.
Stamp duty must go
As frequently stated here in Project Agenda, by others and myself and by the PCA stamp duty is a regressive tax. Just stop for a minute and think about how much GST is tied up in a development project and how that is double taxed in the hands of the buyer, and how do Baby Boomers move when every step they take is also caught by stamp duty.
Looking at all of the drivers I think that 2013 will see improved sales volumes, there will be a clear and much more critical focus among all buyers on central locations. Off-shore in particular Asian buyers will be key as will singles and double income buyers – the ‘Sinks’ and ‘Dinks’ may well dominate as they are less financially conservative.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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Five key drivers in Sydney's apartment market: 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.

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"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.

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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."

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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."

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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.

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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.

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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.

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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."

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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.

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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.

[smartcode_project:default project_id=102717 project_image_fid=355293]

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;

[smartcode_project:default project_id=102717 project_image_fid=355303]

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."

[smartcode_project:default project_id=102717 project_image_fid=355304]

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.

[smartcode_project:default project_id=5743 project_image_fid=372394]

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."

[smartcode_project:default project_id=5743 project_image_fid=953]

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.

[smartcode_project:default project_id=5743 project_image_fid=925]

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."

[smartcode_project:default project_id=5743 project_image_fid=5374]

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."

[smartcode_project_cta:default project_id=5743]

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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