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The Property Council’s Outlook Series is designed to fuel an informed debate about what are the various social, economic and unavoidably political influences impacting the residential market as we well all settle into 2013. The format usually involves developers, planners and marketers and taking the focus of marketing I would like to share my views as recently presented and looking to the year ahead.
My theme was ‘Bridge The Gap’ by which I explore the gap between how buyers in the residential market anticipate what people want from their homes and how affordability impacts the reality of the marketplace. Fully aware of the reality that affordability is a fundamental issue, one that is made up of many factors, most of which as markets we have to either directly or indirectly address.
In 2013, firstly we need to consider a reality check that clearly tells us that ‘today’s teens consumer’ is a very complex demographic, having been markedly impacted by the GFC while mixed with the varied aspirations Generation X and Y combined with those of the Baby Boomers presents some very fascinating markets within the residential matrix.
While some quarters have started to argue that it is well and truly the time to look beyond the GFC it is not possible to dismiss many of the lingering influences that are now apparent across the residential market. From a marketing standpoint, where our message has to gain traction with the teens consumer the GFC has along with other demographic shifts re-cast how many consumers see home ownership.
Despite a <a target="_blank" href="https://www.propertyobserver.com.au/observers/fhbs-still-struggling-to-enter-the-market-catherine-cashmore/2013031559897">variety of barriers</a> people still want to own their own homes, there is still a society wide aspiration that anticipates that most of us will eventually do so and it’s a fact that every politician also understands. It’s a big part of the reason why infrastructure has climbed into such prominence and the aspiration to own a home is not limited to one set of demographics.
Family formation is still the central driver of demand, but when it comes to financing a home we are dealing with a more conservative market, consumers are more debit adverse than they have ever been, while house prices continue to rise as do rents we are still left in a market where future capital growth looks less robust. Taking on a higher level of debit with an eye to future ‘gains’ has lost much of its appeal.
The Financial Hard Yards
In the <a target="_blank" href="/news">Sydney</a> market we now have a median house price that is sitting very close to $650,000, median rents are $490-$500 per week and almost despite their location apartments have an average cost of $10,000 per sqm.
Looking at the apartment market in particular what this mix leads too is a fairly daunting financial hurdle that is now a constant when it comes to marketing any new project.
So it’s sobering to consider some current figures to illustrate my point. If we take the average sale price of new apartments now on the market at $518,000, then compare that to the average monthly household income of $7102 and assume a 6% mortgage rate over 25 years our buyers are looking at monthly repayments of $2670 and that’s 40% of their income.
It’s no wonder that first time buyers in the market are less active and this is also leading to a big impact on what type of apartments are in demand and also where buyers are concentrating their search.
To stress this point, as if any further emphasis was needed, last week it was reported that the federal government’s independent adviser on housing, the National Housing Supply Council warned that poor planning and high costs could be taking Australia towards being a nation of renters that would also influence the composition of our housing stock.
Poor Planning Too Long Neglected
Poor planning is a theme that is not new to anyone in our field and is a constant source of concern expressed in Project Agenda. The tone of many presentations at the <a target="_blank" href="https://www.propertyoz.com.au/Article/NewsDetail.aspx?p=16&amp;id=7237">Property Council’s Outlook Series</a> made reference to the impact of poor planning and the lack of infrastructure and in marketing new projects these issues remain a constant problem.
It’s notable that comments made during the PCA function indicated that planning issues are now being tied more closely with restrictive regulations and planning delays at the state and local government level, while policy makers were keen to see solutions and real progress made, there were still concerns that grass roots implementation was proving more difficult to achieve.
 
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Making The Connection
Against this background there is clearly a shift that has taken place in what type of apartments are in demand and in marketing projects where sales are strongest and who is buying. Both vital elements if a project is to be successfully sold.
As the above comments highlight it is finance and affordability that are the main factors influencing buyers, but there are also other key issues that we need to take into consideration in planning and in our marketing.
Did you know we now have in Australia an average of 2.7 persons per household? While the number of sole person households has been increasing for some decades. Across the apartment market as might be expected this has markedly influenced the type of product being sold and to whom and this shift is also having a material impact on what these same buyers see as priorities influencing where they buy.
These are all key points that must be considered in addressing the viability of any project that will profoundly impact the marketing.
How we work in this environment I feel requires a mix of marketing solutions that I can fully appreciate may at first appear to be a somewhat daunting tasks. Many factors like those we have already discussed here including planning, finance and a shift in consumer sentiment are well outside our control but non the less this is really nothing new as external factors have always driven the level of activity and this certainly includes residential property.
I do acknowledge that apartment markets because of the much higher numbers and density involved might well tend to concentrate some trends, but as I will go onto to explore in another post, with a full appreciation of market drivers there are clear solutions to consider as we seek to ‘bridge the gap.’
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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Bridging the gap between buyer expectations and affordability: Peter Chittenden

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Canberra’s Molonglo Valley First Release Sets the Foundation
One of the key points about Canberra’s Molonglo Valley is that <ins cite="mailto:Administrator" datetime="2013-03-06T15:09"></ins>the development might well take as much as fifteen years to complete and there is no doubt that market dynamics will change constantly. Fifteen years is a long time to be in the market, but with large projects of this kind it is not uncommon, even much smaller projects are frequently in the market for 3 – 5 years. It’s a hallmark of this facet of project marketing and as a result there are some conventions that we need to be aware of and always aim to tick-off. Step one is a highly successful launch.
Any project launch is important, because it sets in place the ground rules for how the brand will be seen in the market. If the brand gets off to a flying start, as was the case with Molonglo Valley, then future success will be more readily assured as the brand then moves from strength to strength.
By contrast, a poor start takes a lot of hard work to reverse, over time it’s not impossible, but if we look at how Molonglo Valley was launched we can see some clear pointers on <ins cite="mailto:Administrator" datetime="2013-03-06T15:10"></ins>how to achieve an outstanding launch. And that’s the result every project is looking to achieve.
Solid Planning and Some New Ideas
Every major land estate development will be sold in stages, and market conditions will always dictate how and when each stage is released. While other projects can also be released in stages the land estate environment is very different because of a number of key factors. One difference is the amount of time involved and the second is the reality that while new stages are planned and sold, early stages will already be complete and residents may well be living in their new homes. Your brand if you like is being tested while you are still very much in the market and this sets up some ongoing marketing dynamics that I will return to.
In this light the first release of 100 blocks at Molonglo Valley had the marketing team on the starting blocks facing a very long race, and for everyone involved the goal to achieve a great launch was clearly understood. In the Canberra market this had been a much anticipated land release, there was clearly pent up demand, the land would be popular but still there was a need to engage the market with a product that was still very much a vision.
First Release by Auction
"Almost immediately after the ACT Government announced that the land would be developed for residential housing we had buyers and builders eager for the first release, I think it was clear that Molonglo Valley would be a new chapter in Canberra's history and many people wanted to be a part of it."
“The market was ripe with expectation and so our role was to work and manage this first release, already aware that since the first announcement was made more than 1000 expressions of interest had been received.”
According to Shane Radnell, General Manager of Residential Land Estate Marketing at Colliers International Canberra, this was the market setting the scene for one of the largest land auctions of its kind and what would be a record event for Canberra’s residential market.
With agreement that the first release would be built around a sales path culminating with an auction in June 2010, the marketing of Molonglo Valley got underway.
No Site Inspections Possible
Formal registrations of interest for Molonglo Valley got underway on Friday 23rd of April 2010 and the results as might have been expected were immediate, many more people anxious for information soon joined the already 1000 early birds.
The opening of registrations was however preceded by intense planning and a variety of key marketing assets were in place to ensure that this wave of activity was well managed.  However outside of all of this bluster was the fact that the site of the first release was planned, and the suburbs had a name Wright and Coombs, but beyond that the land had not yet been developed, it was not possible to visit the site, walk the streets or physically see the blocks that were to be taken to market.
Clearly by any account this was a unique challenge, if you like we could make the comparison to selling apartments ‘off-the-plan’ but there was for want of a better comparison not display apartment. The location was familiar and the entire location could be seen from some nearby vantage points and so the gap had to be filled and this is where the team at Colliers International in Canberra delivered with a strong marketing plan and more than a few ounces of inspiration.
“Before we moved to open formal registrations in April we already knew that with an auction date of 19th June, we would face an intensive sales path and so we had to plan a robust plan.
“The sheer number of people who had registered in part dictated that how we managed and presented the details about Molonglo Valley would need to give our potential buyers, both private buyers and builders, the information and reassurance they needed to buy at auction, otherwise the process could have failed,” said Shane Radnell.
The sales path was built around several key steps, some will be familiar with the use of some new technology being a first and a clear way of adding lasting value to the brand.
 
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Getting Value from Registrations
As might have been expected once formal registrations were announced the project website received an immediate and ongoing rush, and registrations were required to secure a time to visit a purpose built CBD sales centre. Every person who made a registration request was then contacted by the sales team and given help with all the information they required, this involved a great deal of buyer interface and as I have frequently pointed to this was not a process driven by auto-response or a self-select menu.
By the time any of the people who had registered came to the sales centre, they were already well versed in the process and would have been somewhat familiar with both Molonglo Valley and the sales team member looking after them.  I have always championed this level of personal connection and on auction day this level of familiarity and informality would be important.
The Sales Centre
Well ahead of the call for registrations and during the modest pre-launch advertising campaign a purpose built sales and information centre was completed.
The location of this centre was again a key part of the sales path, it was located in Canberra City in New<ins cite="mailto:Administrator" datetime="2013-03-06T15:12"></ins>Acton in an easily accessible spot with ample nearby parking and was open out of normal business hours. According to Shane Radnell, the aim was to make it as easy as possible for people to visit via scheduled appointments and the centre is still in use today.
“The sales centre and its contents were a key part of a very deliberate sales path, the centre was very spacious, even understated, it had high ceilings and a level of quality that some land estates do not usually offer.
“It was all about creating an open comfortable impression, direct sales material was very limited, we concentrated on helping potential buyers understand the site to make this first impression Molonglo Valley a stand out and we used a new form of interactive table top technology to aid the sharing of core information. ‘Hii’ as the unit is <ins cite="mailto:Administrator" datetime="2013-03-06T15:12"></ins>now know, was <ins cite="mailto:Administrator" datetime="2013-03-06T15:12"></ins>the first application of its kind.”
New Technology
‘Hii’ or Human Interactive Interface was a new tabletop application first used to launch Molonglo Valley, is <ins cite="mailto:Administrator" datetime="2013-03-06T15:13"></ins>an interactive platform that the sales people drive. The system allowed complex and detailed information to be displayed at a very engaging level taking buyers on a visual journey that started with an aerial birds-eye view of the site and then drilled down to the full details of individual blocks.
Then at the end of the presentation all of the selected details were instantly sent by email to the buyer. Feedback was excellent and buyers clearly indicated that the Hii unit helped give them a very clear picture of Molonglo Valley.
Results – Nothing Taken for Granted
Reading many of my and Shane’s comments you might be initially tempted to think that Molonglo Valley was at its launch gold-plated, high demand, a great location, big blocks and affluent target market, and while all of those facts are true, any new release always involves risk.
In Canberra there were several very high hurdles to jump that only solid planning and the delivery of key assets overcame to help ensure the delivery of the outstanding results that were achieved. In my final Molonglo Valley post I will recount these and bring us up-to-date with where the project now sits in 2013 and I will also take a look at Canberra’s Land Rent Scheme, which is part of the ACT Government’s Affordable Housing Action Plan.
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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Molonglo Valley's successful launch is a great example: Peter Chittenden

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When you first read the marketing headlines for Molonglo Valley, Canberra the statistics are very impressive.
Fifteen suburbs, 25,000 homes and fifteen years to complete, making this project the ideal starting point for my focusing on the project marketing of land estates and master-planned communities.
I first became involved with Molonglo Valley back in February 2010 along with the residential land estate sales team at Colliers International in Canberra who were working at a furious pace to launch the first land release for their client the Land Development Agency (LDA).
My colleague Shane Radnell, general manager of Residential Land Marketing in the ACT was at the time heading up the sales and marketing team for what was one of the largest projects of its kind in Australia.
Over the few months that followed the launch we embraced a number of new and very innovative ideas – several of which were clearly Land Estate Project Marketing ‘firsts’.
However, before we take a look at that stage of the project and the detail of the marketing that was undertaken, here is a general outline about Molonglo Valley.
If you are not familiar with the ACT, Molonglo Valley is less than 10 kilometres from Canberra City, 5 kilometres to Woden and 12 kilometres from Belconnen, and so this is an inner-city location near Mount Stromlo and Black Mountain in an area that was partly impacted by the bush fires of January 2003.
Molonglo Valley’s close links to the CBD are unique in a city where most new land releases are much further removed. The impressive new National Arboretum Canberra plus Stromlo Forest Park, Lake Burley Griffin and the Molonglo River are all near neighbours.
Such a location in a major urban setting is very rare and so this would have been clearly in the minds of the LDA as plans for the first release were being finessed back in 2010.
According to Shane Radnell, “This was to be a stand out project the location demanded nothing less, the streets for example were being planned with a view of ‘old-Canberra’ with a feeling of some of the older established suburbs like Kingston. Blocks were to be larger and building controls would also help deliver a quality outcome, leading into the launch there was strong demand for this type of project.”
“For many potential buyers at the time the only alternative to Molonglo Valley would have been to purchase an existing home, demolish and re-build. From our point of view the marketing challenge was clear, but there were some very big hurdles to overcome.”
What Shane was in part referring to was the fact that when the release was to come onto the market and be released for sale, no site works had been undertaken, none at all and it was not even possible to walk onto the land. The site had to be seen from afar and so for some buyers this would be a leap of faith.
The marketing challenge was to bridge this gap and to provide a sales path that would educate buyers, easily and quickly, but to also ensure that they had enough information to make a commitment to buy.
“We made the recommendation to the LDA that due to  high level of demand, amongst other reasons, that the first release of 100 blocks in Wright (which was the first suburb to be released) should be by auction and not by ballot, which at the time was the more standard way new estates were taken to market,” said Shane.
To help appreciate the hurdles of moving away from the ballot process here’s a brief outline of how the system works. It is a model more unique to the ACT than any other market.
This is a brief outline from the LDA’s website and you can refer to the site for more details <a href="https://www.lda.act.gov.au/" target="_blank">www.lda.act.gov.au</a>
“A new land release in an LDA residential estate may be offered for sale through the LDA’s ballot system. The ballot system is the fairest and most transparent way the LDA can sell residential blocks to the public. Block prices are set at the market value, which allows the buyer to purchase the block without the risk of a higher bidder obtaining the block.
“How does the ballot work? To participate in a ballot, potential buyers must register their details using the LDA’s online system during the advertised registration period.  These details include the full names of each buyer, their residential address, solicitor details and the type of lease they wish to enter into.
“Once the registration form has been submitted, the potential buyer is then entered into the ballot and given a unique ballot number. Once the registration period closes, each eligible ballot number is entered into an electronic ballot draw system.
“Witnessed by Gaming and Racing officials, the ballot is drawn at the LDA’s head office. Ballot numbers are drawn sequentially and the official results are uploaded on to the LDA’s website.”
The Planning Begins
Against this general background, the planning and detailed marketing for the first release of 100 blocks got underway a highly successful auction was held May 2010. Remaining blocks were subsequently offered for sale by ballot and over-the-counter.
This is very much the short hand version of events, and in my next few posts I will detail how some new technology, a purpose built CBD display suite and a very deliberate sales path were employed to make this first Molonglo Valley release a stand out example of Land Marketing leadership as well as an up-date of where the estate is today.
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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A land estate project marketing case study: Peter Chittenden

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According the ABS Australia’s housing inventory currently stands at some 8.7 million dwellings. Almost 78% are detached homes, and the balance is almost evenly split between semi-detached homes and apartments. And while apartment living is very much on the increase, the marketing of land estates and house-and-land packages is a major part of the market. Last year our major builders, for example, spent some $105m on media marketing their homes.
House and land
Expansive suburban house-and-land packages have for more than half a century been a part of how urban communities have expanded. For many reasons house-and-land packages are the most popular housing choice, and marketing has been well developed to support this popular market.
House-and-land packages are usually defined as being a sale where a buyer finds an estate, a location and a particular block and then makes choice from a selection of builders to build a home. This same process may also well happen in reverse, where buyers first find their ideal home and then find land to build on. There are many display villages to help and encourage this process.
However, many of the circumstances and comments will also apply to the marketing of a brand-new home where the buyer selects an already complete home in a single transaction.
House-and-land packages are usually associated with new estates. Many of these estates, in particular the very big estates, will be in new greenfield locations on the outskirts of existing cities, although some will be infill locations.
Despite some land shortages in most markets, including Sydney, there are many examples of such developments, and they are the major source of supply.
House-and-land packages are clearly associated with such locations, and the large estates are seen as an ideal way to offer buyers choice. A similar choice of size, location, quality and price would not be provided in smaller developments, where display homes are not a viable marketing tool.
Major new residential housing projects tend, by virtue of the amount of land involved, to be located at the edge of the established residential footprint. But this is not always the case, as tracts of land do become available after a change in use is re-zoned, and these infill locations then present their own marketing challenge. Even large infill locations can lack the services required to sustain a vibrant new community. Examples would include a reborn industrial area, market gardens or defense land previously equipped only with limited services for previous workforce or much smaller community.
However, despite the problems associated with some new estates, including a lag in facilities, long drives to work and at times high prices, suburban developments are still very popular.
I think that we would agree that while many Australians might dream of living on the coast or in the country, in reality the best quality of life for most is still found in the suburbs, in one of the many new estates on the market.
The aspiration to move to the coast or the country is part of the Australian psyche, but what we’re in many ways marketing housing that offers a popular lifestyle.
People do not need much persuasion that they are better off in the suburbs. For many the promise (and reality) is suburbs that have the best of all worlds, with access to good schools, modern hospitals, great shops and reliable jobs, but also large houses, fast internet connections and low crime rates. And when a project marketing job ticks these boxes, everyone is happy!
While a shift to more medium- and high-density living located in the inner city is a trend, the era of the new housing estate will remain part of the local market for many decades yet to come. The area still remains a fertile market and rich environment for marketing professionals.
This being the case, some of the core issues that must always be addressed are:
<ul>
<li> Land supply and location</li>
<li>Onsite site sales facilities</li>
<li>Display homes</li>
<li>Marketing plans – key pointers in particular a whole of market environment</li>
<li>The builder and developer relationship</li>
<li>Product mix and how to best appeal to the target market</li>
<li>The controlled release of land</li>
<li>Estate presentation</li>
<li>How everyone involved with an estate should contribute to the ongoing marketing energy of the estate </li>
</ul>
This is a rich environment where there are many complex questions that I am keen to focus attention as all of the topics will impact every aspect of the project marketing role, from the practical issues of how will people find a project, to selling the yet unrealised lifestyle offer.
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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How to market house-and-land projects: Peter Chittenden

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Over the last few weeks I have looked at some of the new trends surrounding online marketing, but this week I would like to return to an old and very hard-working tool of project marketing: signage.
An important part of the marketing mix
The media mix available for any campaign is usually very diverse and has rapidly changed over the past few years. The powerhouse that is the online marketing has now joined the other varied forms of mass media, press, direct mail, radio, TV and signage.
But workhorses like signs and direct mail still have their place. There are many challenges that result from today’s diverse media mix. But the question still remains as to what media represents the best value, and signs are a part of the mix.
The ritual of open times
In almost any sales path I am always reminded about the daily ritual of putting up signs. The “now open” A-frame is never out of fashion, it’s like the courtesy of how we manage the meet and greet of every visitor to an open. This most basic step is, I think, a good starting point.
Signs
Signs, in particular on-site signs, have a big advantage over almost all other forms of marketing – they are directly connected and related to the site and the product. They are there working 24/7, and there is ample evidence to show that signs will always be required as an essential of project marketing.
There can be limitations, and in some areas these limits are because of planning regulations imposed by local planning requirements. But it can also be possible to use fence banners and with the wide application of smartphones signs can point interested people to a website. If at all possible that should be a mobile website.
Signs also have to be visible, and a sign in a busy CBD environment or in a crowded residential area where there is a lot of ‘visual noise’ can melt into the surrounding environment that is if they are not well designed with a clear and easy-to-understand message.
The design of a sign should reflect the brand values of the project but also take into account the environment. They might to some appear not to be of relevance to a high-end buyer, but I would not agree. Buyers for a CBD development tend to be drawn from many different areas, and a good site sign is likely to attract a buyer's initial attention by making it easy to find or identify a particular site.
In some circumstances the target consumer may not live in the immediate area, they may very well be traveling there in response to a press ad or an eDM, and so as soon as they see the signs it’s easy to get their attention for your project.
However despite some limitations signs are powerful and necessary and time needs to be invested to keep them current and related to the wider marketing message. Signs need to be clear easy to read in a few seconds, and they should work within the brand lock-up for the project – where the colours and logo might just be enough to make a connection with a buyer out searching for you.
Just how big and how many signs will relate to the needs of each project, but in some highly visible locations a big investment can be well justified and it is important to manage signs over the life of a project and so budget for a reasonable number of up-dates to cover material and creative content.
They also need to be kept up-to-date, like an out of date website, an out of date sign is a negative and must be avoided. If they are out of date it sends a downbeat message to the local community as well as potential buyers.
Plan signs as a dedicated activity
Signs are an importance of presentation and a key point for connecting buyers into the sales path.  A poor signage layout can make it harder for buyers to find you or to contact your team and there is no doubt this can loose a sale. The consumer’s expectations need to be fully taken on board, they do not know your project, where it is, even the area may be totally new and even with on-screen maps the role of the sign should not be neglected.
It is difficult to over-stress how vital the on-site signs can be and at times a major investment will be more than justified, it is all part of planning the buyers experience and should be an early part and an ongoing part of planning.
At the start of a new estate or apartment project there is a blank canvas, either an empty parcel of land, an area with buildings that are about to be demolished or some other form of disused amenity that has no baring what so ever with the new project and signs can help fill that gap.
But keep in mind that for any potential buyer the site is, at least for their first visit, a complete mystery and this again suggest that signs should be simple – they are not read as a press ad or a brochure so avoid clutter.
There is a need make sure key details like, telephone contacts, branding and website details stand out. This applies to all signs, banners, construction hoardings, a-frames and directional signs and the basics need to be ticked off for both the largest and smallest signs.
Electronic signs
Technology will soon deliver a new generations of signs, that are interactive, that can ‘talk and communicate’ with anyone engaged with the sign, in real time, not like a QR code, but much more. I have been looking some of the new ideas emerging. It’s a fascinating area that I will return to.
Signs will evolve, they already are, but we should not underestimate or neglect planning and design because their value even at the most basic level is critical.
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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How to use signage in marketing a residential development

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Excluding the prestige market or developments targeting empty-nesters, over the last five or so years the internal areas of the typical apartment have diminished considerably. Previously, the average studio was approximately 45 square metres, and one-bedroom apartments averaged 65 square metres. Two- and three-bedroom apartment averaged 90 square metres and 120 square metres respectively. At present, the average studio apartment has reduced to 38 square metres, while the average one-bedroom apartment sits at 50 square metres.
An average two-bedroom apartment typically ranges from 75 square metres to 85 square metres, and the few three-bedroom apartments being developed now start at approximately 100 square metres. Designs are changing and lifestyle demands are driving this trend, however the internal areas cannot diminish much further and are set to plateau. We have now seen this in the empty-nest market, where product below three bedrooms (and possibly with a study) will either not sell or take a long time to market.
Design at the forefront
The downsizing in apartments is not an isolated trend, and there are several other parallels worth noting that all point to how as a society we are responding to ever more pressures on our cities. Holden has announced that it may not make any more Commodores after 2014 as we switch to smaller cars. And, speaking of cars, as more inner-city apartments do not come with parking the rise of car share schemes is set to be more common. Developers are not including parking in some areas in response to council planning but also in an effort to make apartments more affordable.
These trends are all based around the shift in demographics towards more centralised apartment living, and they will continue to be key marketing points as they reflect a wider social demographic.
As apartments get smaller, design will have to get smarter, just like cars, as a small car now has features once only associated with the luxury end of the market. Design qualities will extend beyond how the available space used to include very pragmatic issue like providing ample storage.
An example from New York
Recently the New York City Mayor Michael Bloomberg <a target="_blank" href="https://www.nyc.gov/portal/site/nycgov/menuitem.c0935b9a57bb4ef3daf2f1c701c789a0/index.jsp?pageID=mayor_press_release&amp;catID=1194&amp;doc_name=http%3A%2F%2Fwww.nyc.gov%2Fhtml%2Fom%2Fhtml%2F2013a%2Fpr032-13&amp;cc=unused1978&amp;rc=1194&amp;ndi=1">announced the winner</a> of the city’s micro-apartment competition. The contest launched last July was to design a 22-square-metre to 33-square-metre apartment. The winner (a collaboration between Monadnock Construction, the Actors Fund Housing Development Corporation, and nARCHITECTS called My Mirco NY) helps to show how good design can make a smaller apartment a very appealing space.
Some of the key points from the winning design included: high ceilings, dual-use furniture, a long, narrow floor plan, micro kitchen, floor-to-ceiling storage, and loft space.
Like Sydney, New York is also facing similar concerns about affordability, which was part of the reason behind the contest. To address affordability, 40% of the units will be offered below market rates and will be built on city-owned land, and as such will be social housing.
Like Australia, in the US the growth rate for one-person and two-person households is above that of larger households, and this is driving the need for quality design of smaller apartments.
The New York example again demonstrates that as apartments get smaller design qualities will be important, and developments will need to be based on socially diverse and facility-rich areas. Planning and local authorities will need to look beyond current regulations and evolve new progressive models.
This is a debate that clearly has an international flavour and urgency. If we are to avoid living in a "cupboard apartment" – even if we can choose to shop in Harrod's food hall, then now is the time for innovative thinking, planning and marketing. It’s a debate that we need to contribute to.
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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Australian apartments won't be getting any smaller

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Given that it is impossible to move beyond the fact that there will be an ever-increasing focus on the social environment, what are some of the key issues that the leaders in this field suggest we need to engage?
Firstly, there is the clear need to appreciate that marketers in every field, and that includes ours, will need stop trying to manage and lead the social conversation. We need to be a participant adding to the value of the conversation.
As social media begins to grow in its relevance for project marketers, we need to understand that with the unprecedented content being generated by people and business, the need for engaging content, relevance and appealing content is now greater than ever.
Social media empowers the consumer
As business continues to play its part in social media, one trend will continue and that’s the empowerment of all consumers. It’s well accepted that consumer reviews are already very powerful, and our challenge is to win and earn the loyalty of our particular markets.
Social media is very appealing to consumers because of the ability to easily share information. If you like to share a yarn it’s a reality that we need to be comfortable with, direct and understand.
As consumers become more and more active in their use of social media, every project we work with will need to make a value call to create a social media platform along with other digital activity, or not. The size of a project and the funds available to produce content will be important, but clearly there is a downside if the job is poorly done.
Focus more on building your email list
I am sure that one area we all have in common is the desire to have more potential buyers subscribe to our communications feed by email.
Studies have shown time and time again that if you want to engage and audience including buyers, they are most likely going to come from your email lists. And I’ve found that to be very true – and your email list is truly the only list you own. It’s yours.
I also suggest that with so many social media options – Twitter, Google+, <a href="https://www.socialmediaexaminer.com/improve-facebook-engagement/">Facebook</a>, <a href="https://www.socialmediaexaminer.com/using-pinterest-for-business/">Pinterest</a> and <a href="https://www.socialmediaexaminer.com/instagram/">Instagram</a> – that have to be considered, we must still be active in the way email lists are managed and valued.
Which social sites to use
As social media users become increasingly savvy, they will focus their social media time on fewer sites. As project marketers we will need to follow their lead and understand the best options for our projects.
Facebook and Twitter are both well established with consumers, as is LinkedIn with the business community.
Google+, <a href="https://www.socialmediaexaminer.com/26-tips-for-using-pinterest-for-business/">Pinterest</a> and other platforms continue to grow and so the reality is that users and marketers will have to decide where to spend time, money and energy. There’s only so much time in a day, and the level of activity is on the increase, and so we need to keep asking what gains attention?
For a majority of projects a solid presence in one or two channels looks to me to be the best option, chasing to many options could be a waste of energy. With the help of consultants we will have to make some choices as to where our social media and digital expenditure will have the maximum impact.
The central role of content marketing
More of our clients and projects will need to realise that unless they embrace content marketing soon, they may well lose traction in their market sector.
We are already seeing businesses racing to make up for lost time on the web. While this may have been a concern for some local retailers, we need to take a close look at our own backyards.
I suggest that some effort needs to go into quality project blogs, eBooks, videos and social media content and that good solid and workable content plans will be the name of the game if we are to reap the full potential of social media options.
Social media advertising
As we need to reach a larger audience and build up an engaged community then planning future budgets that use social advertising may become more common across project marketing.
As we deal with time more targets, with access to so many media options our ability to grow organically is going to be limited and so wider engagement across all media options looks appealing.
Consider the use of podcasts to increase engagement
With more than 1 billion smartphone users and hundred of millions more just waiting to be sold, the consumer demand for quality podcasts is growing, and it is an area that might be worth considering.
It takes me back to another way of storytelling, and now with the power of social media behind us anyone with a (good) story or yarn to tell can broadcast it to a big audience and with planning target the right audience.
Conclusion – at least for now
The results of this will always have the potential of being good and bad. Consumers will continue to be better informed than they ever have been in making a purchase, and this clearly applies to property.
In our market competition will grow fiercer and in order to meet the expectations and experiences of today’s ‘connected consumer’ we need to make sure we are ahead of the curve.
In the immediate future more industries will get serious about social media as they go about building their digital portfolios. We will all need to provide proof of how social media marketing as a whole is benefiting clients through the use of various analytics programs.
With the spread of digital marketing it is easy to expect to see an increase the use of social media and related content marketing. When we look at Project Marketing budgets, this may be at the expense of other forms of advertising to attract prospects, generate leads and sales.
Well-managed content marketing can be a very cost-effective media, but to do this it will be necessary to tick of all of the key topics we have been discussing and to continue to explore the options.
If you’re keen to do some more personal research have a look at <a href="https://www.socialmediaexaminer.com/" target="_blank">socialmediaexaminer.com</a>. It’s a source I use, but as always keep in mind the particular needs of our industry.
With professional help and market awareness, we must continue to take a more integrated approach with social media becoming an extension of key channel strategies and marketing functions, while we meet the needs and expectations of our clients and customers.
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 to use social media to market your residential development

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It’s almost impossible to think about any aspect of marketing today that does not involve the use of online applications and this includes project marketing. However, before we start to look at some of the key trends, I want to suggest some clear pointers for our industry. 
To help keep a focus relative to project marketing it is useful to approach this topic in two main areas: content and delivery, with delivery including both applications and devices.
The main reason I have done this is to help ensure that we aim to discuss practical examples of how to use online media across the varied sales roles we undertake for any project. And further, which tools might be best suited to relevant parts of the sales path, from a registrations of interest campaign to the ongoing marketing. We must appreciate how online media and other technology can enhance the sales path, while the buyer experience needs to remain central outcome.
I think that this is a reasonable approach because according to comScore, there are more than 1 trillion digital interactions monthly, and given this huge number and all of the new technologies out there, our industry needs to be sure that the varied options we use to drive our business are relevant. There can be lots of opportunity, but we need to make sure we are not being swept up by the allure of the technology without a clear focus on the benefits it will bring to the sales path. As an industry we are now spending more and more money in the online environment with each project, but we need to keep a balance and be sure that we are fully engaged with the buyer and not simply relying on technology.
The digital environment is, however, a part of every consumer’s world and is more accessible than ever. Our role is to use this in a positive way but not become lazy.
So as we start to look at some of the key trends for 2013, as project marketers we need to be actively involved in helping to build sales paths that in turn match the digital tools available and produce content that will help sell the projects we are marketing.
Smartphone and tablets
The first point is one connected to the key aspect of delivery: how are our marketing messages being received?
The use of smartphones and tablets is growing rapidly, and it is only a matter of time until they become the main way people access the web.
How the devices are used varies greatly. If we think about this, we need to start delineating our messages and at the very least this will address full consideration of how project websites are designed.
I am sure we have all seen a tablet being used in a café or at the airport, and this helps underline that research shows most tablets are used for research and entertainment
Consumers on smartphones who are out and about looking at property are not really in the frame of mind to stop and fill out a long online forms or view a complex PDF about your project or fiddle about to re-size an image, and so specific mobile web sites are required.
As we are dealing with mobile communications, it’s also important to remember that neither tablet nor mobile users will have immediate access to a printer.
The value of content needs to be seen through the eyes of a buyer who might be very much on the move and so content needs to be planned according – again, this brings us back to the value of content. When we set out to plan the goals for mobile marketing and communications we need to be sure and match the various devices that consumers use.
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Send to a friend
Look at almost any digital marketing you now receive, or think back to those digital Christmas cards you prepared or received in December, and you will more than likely recall the words – ‘share or send to a friend’. Interaction with others is now at the heart of digital marketing. We need to be aware of this and how information of every kind is being shared is starting to change how a product received by the market.
Our target market is almost guaranteed to share the content (information) we provide with their family, friends and associates and all mobile devices make this very easy. It is also going to be shared by Facebook, Instagram, etc, and our target will of course almost always add their own comments –  both good and bad!
We will be working to encourage comments that we want to be positive – ‘look at this great image’ we do not want ‘look at this rubbish that so and so just sent me,’ and again this brings us back to the quality of our content.
In looking at content from now on we need to ensure that we produce content that our target will want to “send to a friend” and this will enhance our marketing efforts.
Make sure there is enough interesting material, material that will have content to engage our target, so that they buy into our message, we need to have a clear vision and the third item is to ensure our content has variety and is relevant.
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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What changes in technology will mean for residential development project marketing in 2013: Peter Chittenden

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As we start 2013 I want to briefly return to all of the various themes that I think will be key issues for project marketing professionals this year, starting with one key aspect of demographics. In particular how we will need to continue to take full account of Australia’s ageing population. 
I think we always need to keep the spotlight on this topic because from how projects are designed and then taken to market, demographics are central, and the impact of an older market is now a reality. One key issue is as baby boomers move into retirement how it’s going to directly shape many aspects of our work.
To start this topic I would firstly like to relay some published figures to help clarify why this aspect of demographics will be important.
Today (according to the ABS) there are some 7 million Australians over the age of 50, and while that is around 32% of the population they control 68% of the wealth. Clearly how this group spends money and invests is a core part of the economy and this includes the housing market at its heart.
However, there is already a robust discussion taking place about how baby boomers might plan their retirement, and possibly not surprising, after the GFC the number planning to work until they are 70 has greatly increased. This could make the employment outlook more complex.
One reason for this is understood to be the gap between retirement savings, including retirement savings, and the amount needed for a comfortable level of retirement income. For many people this reality may well involve a detailed consideration of if and when the family home might be sold, to help fund retirement plans and future health care. However there is some divergence here because there are many benefits now attributed to living at home including the wider use of home based health care.
As a group older Australians are enjoying better health and now as we live longer for a couple aged 60 today, there is (according to the ABS) every chance that one will live beyond 90.
In a report Surviving Longevity published by Rice Warner we can find a clue as to how housing options might change between the ages of 60 and 90 and hence how this group will be relevant to how some projects are planned and then sold.
The report suggests three stages of retirement, which is summarised as ‘active’ from 60-65 to 75, ‘passive’ from 65 to 85 and ‘frail’ from 75-85 and beyond. I think it is already established that during these stages how and where people choose to live will and does vary.
If, for example, in the first ‘active’ phase there is a desire to get out and about, with travel and hobbies more a priority, thus it may well be the ideal time to sell the family home and downsize. According to a report produced by the MLC 49% of people are looking forward to their retirement, and this already apparent trend may well start to escalate in 2013.
From only a brief look at this one topic there are many other aspects of the market that could be directly impacted, these would include investor demand, apartment design and amenities, changes to infrastructure and changes to tax policy, with the later already being a reality when it comes to superannuation.
As usual demographics are as always an interesting topic, and I will continue to look at other key factors for 2013 during January.
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 Australia's ageing population will affect residential development

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Apartment construction now provides the impetus for much of the growth in construction and will be an important driver of the economic in 2013, which can also be linked to the demand for development sites.
And so against this background let's continue our conversation with one of my associates, <a target="_blank" href="https://www.propertyobserver.com.au/developments/what-is-the-best-location-for-a-residential-development-peter-chittenden/2012121058377">Shane Dargue, from Colliers International, Melbourne.</a>
By looking at some current trends that are starting to show up in the Melbourne CBD and in Sydney we can gauge how headline demand impacts the wider market for development sites.
As might be expected, it’s an area that demographics will always influence and where trends are not always universal because varied pockets of demand are driven by particular local conditions, which Shane refers to here.
“Across the inner-ring suburbs, we see that because of the mixed demographics associated with these areas, which are common to all capital city markets, development sites have the potential to be very desirable, because it is usually possible for the end project to deliver a good cross section of apartments. If the mix matches market expectations then these sites have a lower risk-profile and as such attract ongoing support.”
Shane also believes that Melbourne’s CBD market is now partly driven by international factors, while land values by direct comparison to Sydney’s CBD residential market remain competitive.
“For two years running in 2011 and 2012 Melbourne has rated as the world's most livable city by the Economist Intelligence Unit, heading a list of 140 cities worldwide. This combined with strong growth predictions, (Melbourne is set to over take Sydney as Australia’s major city by 2020) means that foreign investors are taking a keen interest. Investors in particular from Asia and the USA are attracted by these positives and the government stated intent to promote and support Melbourne’s CBD as a 24/7 location, which makes it even more attractive to offshore buyers.
“As a result the CBD residential market is now being driven by foreign investors and despite a predicted spike in supply in 2015 there is still opportunity as Melbourne’s population continues to grow. Because the CBD market is driven less by local demand by comparison with the inner-ring and outer suburbs this reflects in the demand for development sites.
“We also need to keep in mind that any development site purchased today would not deliver end product for three to five years depending upon its scale and individual circumstances.”
 
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It is also worth noting that Melbourne’s layout creates more growth opportunities and thanks to recent planning changes it’s now becoming a much more streamlined process. Despite this, there is some cross flow of activity between Melbourne and Sydney now several major developers are active in both cities, Sydney’s reputation as a more expensive location remains intact, and both still face hurdles when it comes to infrastructure.
Looking beyond the CBD I was keen to ask Shane if he felt that there were particular pockets of demand for development sites which are more likely to emerge in 2013, and so fuel stronger project delivery.
“In Melbourne the demand for development sites across the inner-ring locations will be boosted by the Victorian government’s new planning regulations. These zoning reforms will encourage more development, because the current policy is very prescriptive and now there will be much more room for mixed-use sites and there is demand for those locations.”
While Shane’s comments relate mainly to Melbourne, I also think that in Sydney and Brisbane there is the potential to see more demand across similar inner-ring locations. They are universally popular with buyers, and funding is easier, these sites are what Shane describes as more digestible and again local demographics are driving demand.
However planning will remain a key issue no matter where sites are located, and as Mark Percy from Cbus raised in his recent interview for Project Agenda, planning and in particular delays are an industry wide concern, no matter if we are dealing with very large or smaller developments, planning has a common impact.
Referring back to Shane’s comments the changes to zoning in Melbourne have the potential to be very positive. Beyond my own views and the comments from Shane and Mark Percy, the need for planning reforms highlight a much wider economic impact and the need to stimulate and sustain growth.
When we look at the demand for development sites, not matter the location, it is clear that progressive planning has a big impact. It is also possible to achieve a balance with community needs and expectations, while meeting the demands of changing demographics.
At the start of this topic I made mention of the fact that all development sites are complex by nature, Shane has helped highlight some key issues and now we look at a general view of where site values might be heading in the immediate future and Shane continues.
“ Given the complexities involved and some that have already highlighted, unconditionally it is necessary to look at values against the varied conditions in our three markets, CBD, inner-ring and Greenfield outer ring locations.
“However I also think it is possible to ascribe some key factors that still act to influence all of the markets, and these include: demand which will be lifestyle driven (demographics), government policy in particular as that relates to planning and funding which for some markets in particular the CBD currently highlights foreign investment.
“My remarks here also have to be framed as general comments, I am looking to signpost some broad trends for the immediate future, it’s not about discussing detailed site values as such.
“In our zone ‘A' for CBD apartments we are looking at a starting point of $50,000 per apartment, but when you take into account all of the factors we have been discussing this can be as high at $110,000 per apartment and in Sydney more $150,000 per apartment.
“Values in Melbourne are being driven by the factors we talked about earlier the CBD is moving to being a fully fledged 24/7 effervescent city, and so attracting more residential interest. There is ample room for this to happen and again this will encourage more international investment. I also have to say that much the same applies to Sydney the goals are similar, but here we are making good headway.
“Across the inner-ring suburbs vales in this area will be driven by many key factors, some of which are more local, headed by lifestyle, the diversity of product, a wider base of developers and the all important planning initiatives. One such initiative is Footscray in western Melbourne, which is projected to grow by 175,000 people over the next decade. Inner ring development sites are also more closely aligned, more sensitive to the state of the general housing market.
“ When it comes to values in the outer-ring Greenfield locations we see that because of a less active housing market and increased supply, that the demand for medium and high density sites is down. One key reason is that sites in these areas are much bigger if buyer confidence wanes, so does the appeal of building apartments or town homes. However as a price sensitive market that can quickly change if product is supplied at very competitive prices.”
Over the next two weeks we will continue to cover off this chat with Shane, expanding upon key factors such as planning and funding while also looking at marketing sites, and the demand trends for sites in major urban renewal projects.
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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Demographics key to choosing residential development sites

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

Joel Robinson

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

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

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

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

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

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

Peter Chittenden

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