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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Over the last 12 months we have also seen direct government incentives either withdrawn or scaled back and while individual developers might still offer incentives, they may be less inclined to do so in a tight market.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.
 
<hr class="system-pagebreak">
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

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

Peter Chittenden

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