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Last week I highlighted how it is impossible to overlook the key influence of location in the project DNA of any development.
<a href="https://www.propertyobserver.com.au/developments/location-the-most-important-consideration-in-a-new-residential-development-peter-chittenden/2012120358265" target="_blank">Here in a recent conversation with one of my associates, Shane Dargue,</a> from Colliers International in Melbourne, we will explore this topic in greater detail. From the outset I think it is clear that taking a site to market is a complex subject. topics like planning and infrastructure are never out of sight.
Thinking of a location as a blank canvas immediately opens the way for creative thinking so that one day the final development will deliver the very best result, and this is, I think, the core challenge this subject will explore. Recently in both NSW and Victoria the major land delivery agencies have been facing evolving roles as a result of shifting market pressures and dynamics, and I think this further underlines how complex a market this is.
Where are the demand hotspots?
Starting our conversation, I firstly wanted to know from Shane his take on the current demand for residential development sites and then moving onto what he believes are the key marketing challenges for new medium and high-density sites.
“This a big topic, but there are some common factors across most markets. But firstly we need to step back a few years, just to get a common starting point.
“Until 2010 across almost all markets there was what I would without reservation describe as an environment of fever pitch activity, and in particular in Melbourne. Then over the past few years 2011-12 there has been a shift in demand for sites. We have come of the highs of 2010 but clearly sites are still being sold, still in demand.
“The dynamics have moved to where the development risk has taken on a different complexion, and as might be expected it is access to finance that has come into much sharper focus."
To better help overview market conditions Shane suggests that it is helpful to look at markets across three main sectors, all of which will be familiar.
“I think that it is both helpful and necessary to look at the market for new sites as they fit into three distinctive zones. While they will have common factors in any major metropolitan market, for ease of discussion let’s call the three main markets A, B and C.”
Within this definition suggested by Shane the zones cover: ‘A’ the core CBD, ‘B’ the inner ring of well-established suburbs and our final group ‘C’, which covers the outer ring of suburbs where the majority of broadacre and greenfield sites are located. All three markets have locations suitable for medium-density development but are very different with varied fortunes.
“The CBD in any market always has the highest site costs, and beyond that the entire cost structure implies a major investment in terms of finance, time and marketing, its often seen as the most speculative.
“Then we have the inner ring of suburbs ‘B’ which is the more diverse and flexible of the three markets and in the case of Melbourne, because of Melbourne’s grid layout, it’s a rich source of sites.
“Finally we have the outer ring locations ‘C’, which includes greenfield sites, some locations are self-contained medium-density sites, which are usually in the more established areas while other are a part of a master-planned community estate. This is a market dominated by individual homes and is very cost driven, price and supply sensitive but still there are valuable medium-density sites.
"Demand for the outer ring this market has softened the most over the past 24 months and in particular over the past 12 months, partly as direct result of many more new homes coming into play as supply across Melbourne has increased."
 
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The layers of interconnection
The outer-ring sites are the most price driven and so rely to a greater extent upon the growth of house prices and sales rates, in particular across the inner-ring suburbs and across the wider housing market generally but also to a lesser extent in the CBD. And so in this way the outer limits of the market reflect the wider health of the economy and so to varied degrees all of the markets are interrelated.
“If the economy is weak then people will tend to stay put in established homes, and at the pointy end of rental demand the CBD rental market can be impacted if unemployment becomes an issue, which then has a flow onto investor take-up.
“Also in the outer ring I have to acknowledge that the demand for sites is limited to some degree because this is also an area where medium density is a secondary market for buyers. Still for some budget driven buyers a townhouse in these areas is an appealing option, and profitable for the developer looking to defray site costs."
While the demand for outer ring sites has declined over the past two years, it has been the more stable buyer profiles for end-product in the CBD and inner-ring locations that has helped to create continued interest in sites.
“CBD and inner-ring development sites offer diverse locations and infill sites in particular have many positive traits. And that includes access to existing infrastructure that can be very diverse with a depth of social appeal, Footscray in Melbourne is an example I mention now and will return to later."
The pressure of finance a important influence
Shane rightly points out the reality that some or indeed most banks are now applying pressure when dealing with their development clients. But Shane also highlights that there have not been very many forced sales of development sites and prices for end product have been stable within areas of logical and typical development supply.
“The role of finance post GFC is now more magnified, and the IMF has also highlighted how much exposure the 4 major banks have tied up in residential mortgages and so caution is the order of the day.
“When we look at individual greenfield sites they have either been shelved because the capital tied up is less or their raw land values have decreased substantially where the rates of sales have slowed most. There is also usually little speculative building and better return on capital performance, which can be in stark contrast to the level of exposure associated with a medium or high density project.
“However, despite the financial pressures demand is currently strongest across the inner ring suburbs, these same areas are also very popular with end-buyers where owner occupiers dominate demand, but investors are also active. In the CBD there tends to be a bigger percentage of investors and in many cases an off-shore buyer with a long-term view of the market, which then helps underpin the demand for quality development sites.
We did highlight earlier that in the CBD the investment required for a major project outweighed the costs associated with other locations. The dynamics are very different attracting the bulk of high-end professional development, and for other developers this fact then shifts their focus to the inner ring suburbs.
“The inner ring locations are very popular and there is a pool of local developers keen on these sites. And so demand is mixed and there are more players looking for opportunities. While finance is still an issue we are dealing with local developers who know the market and work within a comfortable level of risk and capital/development."
At this stage of our topic it is the various risk profiles that have the most impact on the demand for sites. The risk profiles are also very dynamic across all three markets, still there are many other influences to take into consideration, which we will continue to explore and welcome your thoughts.
 
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 is the best location for a residential development?

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In the project marketing environment location is a complex question that deserves considerable attention. Location will impact every aspect of marketing, from the practical issues of how will people find the project to selling the as-yet unrealised lifestyle offer.
I think that location is both an easily understood and yet at the same time a very complex issue. Long before a site is sold, developed and the first buyers move in there are many issues to address.
Over the next two weeks and with help from one of my associates, Shane Dargue from our residential development sites team, I will to take a detailed look at this topic. In particular what is driving demand in key pockets of demand and how sites are best taken to market. However, by way of an introduction I would like to publish some general thinking to kick off this topic.
Location
The location of an individual property is universally the most important factor influencing its market appeal; after all they even names a TV show after this real estate bellwether. However, in today’s world location can be influenced by external factors that are not directly tied up in the location itself, like transport and technology.
The appeal of a location relative to services and employment has always been important, but when it comes to high-density development it even more so. Also when you are marketing to a new community of buyers they will have different priorities depending upon their personal needs and circumstances.
On a very large scale the arrival and planning of a major development will itself have an impact will change how desirable a location is. As major cities including Sydney, Melbourne and Brisbane move to accommodate bigger populations, this is now a fairly common factor. Once unfashionable or even undesirable industrial locations can be transformed by the development and we will look at some examples.
As we will see location within the context of any major city is a factor that will have an overriding impact for any project that will be fundamental to its success.
How location is leveraged will always impact the sales results of any project. Success will be measured in the demand for the end product and the amount of time the development will take to sell, however carefully considering demand and the role of planning laws are also key factors.
To explore this topic of location further it is first necessary to look at each market (product type) to establish the big-picture and there are many aspects that will be common but also there are important variations which characteristic those same markets.
Conventionally the closer to the centre of cities the more demand there is for accommodation. However, infrastructure such as transport links and affordability have to be taken into account.
The result is that major new projects in any big metropolitan area share some common aspects of location, but as Shane highlights they are also influenced by other unique factors.
 
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The pool of potential buyers
The pool of potential buyers is perhaps one of the most important elements in the project marketing mix; the pool of buyers clearly has an impact on the value of a development site, as the depth of the market is an essential element that will impact every level of activity and planning.
While the individual make-up of potential buyers for a location might in some cases overlap, there are always important and subtle differences. Buyers looking at inner-city apartments or well-located in-fill projects will have different motivations, as will owner-occupiers and investors.
Greenfield developments will generally tend to have much more wide-ranging appeal and offer more product choice and could be expected to attract a higher number of first-time buyers.
While it is necessary to draw this distinction the rules are not hard and fast, and detailed target audience analysis will always be required as the pool of potential buyers does shift and this in turn impacts how attractive potential development sites are.
In the-post GFC age the impact of tighter economic circumstances has also caused a shift in where developers are active in the housing market, and as might be expected the banks are also having a key influence.
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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Location the most important consideration in a new residential development

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Since December 2011 a review of strata and community scheme law in NSW has been underway, and comments and submissions closed last week.
In 1961 it was NSW that enacted the world’s first strata title laws with the introduction of the Conveyancing (Strata Title) Act. In 1973 there was a major upgrade to the laws, and the Strata Titles Act was introduced.
When the current review was first announced more than 1,200 comments and some 600 suggested changes to current laws were received. NSW Fair Trading has issued a strata and community title law reform discussion paper, which highlights some of the key concerns the review is expected to address.
Some of the key points noted in the discussion paper are of vital interest to the ongoing development of the entire range of projects we are all involved with, and they cover a wide gambit of topics.
One of the key points is that the current legislation is a "one size fits all" approach, which experience demonstrates is a rigid and unrealistic approach given the variation is the size of projects. Clearly a small scheme of six apartments or homes is very different from a high rise that contains 100 or more apartments.
Red tape is another area the review may well address, as the discussion points out the original 29 provisions of the original law has now grown to more than 1,500 provisions covering 926 pages.
A need for a more flexible approach
It is interesting then to note that the discussion paper is also suggesting that greater flexibility is required for individual schemes.
Examples given in the discussion paper include pointing to the mandating of a particular colour scheme for outdoor furniture and the banning of Christmas decorations and flags.
Somewhat allied to this point is the very real need to balance personal freedoms and co-operative duties, because as we will all understand the move from a private freestanding home into a strata building or community projects is for many people a major lifestyle change.
This then leads onto the very real question of how so many competing interests in a scheme are best managed. Just think about the varied stakeholders that an owners corporation has to interact with – developers, owner-occupiers, strata managers, letting agents, tenants, selling agents, investors – are just a few.
And just like the red tape issues outlined there is clearly more room to use simple plain English in the new legislation.
Beyond these issues other major topics covered in the discussion paper cover governance and participation, these areas are very important, as there appears to be some reluctance for many owners to be involved with management of their owners' corporation.
One way to improve participation is the discussion paper notes a more deliberate focus on communications, which would for instance accommodate "virtual meetings" using Skype and teleconferencing. As technology moves this sounds like a logical and helpful idea.
In NSW 60% of schemes are managed by licensed managing agents and almost 100% of large schemes are managed by agents, making transparency and accountability key issues.
 
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Urban renewal
Urban renewal in the area of project development and project marketing are topics of particular interest, because the redevelopment of existing strata schemes needs to be facilitated as the current act is often a barrier to change and redevelopment.
And so a review of the law in this area may directly impact future redevelopment and urban consolidation efforts – in a forthcoming post I will be talking with Shane Dargue from Colliers International in Melbourne as Shane’s work focuses on major site sales and acquisitions, which is an area that impacts opportunities in many markets.
A fourth level of government
The full discussion published in September can be sourced via the NSW governments Fair Trading website, and I will not go into all of the details it covers. However, most of the key issues will not come as a surprise and many make interesting reading.
According to a recent study by the University of NSW looking at the experiences of the estimated 3 million people who live in strata-title dwellings, there are many and varied issues with strata living which the current review aims to address.
Lead author of the study Governing the Compact City: The role and effectiveness of strata management is Dr Hazel Easthope, research fellow at the City Futures Research Centre at UNSW’s Faculty of The Built Environment.
She said a quarter of Sydney people now live in what is virtually a fourth tier of government, as strata dwellings set laws and impose taxes on residents.
Where to from here?
From the many topics outlined above there are many and varied issues to address. Some of which are very close to home and can involve a high level of emotion, as more people live in less space and as lives overlap this will be an ongoing and important issue that we all need to be involved with.
However as far as the timetable to complete the current review, meet with key stakeholders and draft new legislation, the final bill is then expected to be introduced into the NSW Parliament in the spring session 2013, but I expect we will return again to many of these issues before then.
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 more flexible approach and less red tape needed in NSW strata laws review

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Read almost any financial magazine, website or flick through the financial pages of a newspaper and you’ll soon come across articles and advertisements focused on self-managed superannuation funds (SMSF). What used to be more typically referred to as DIY super funds are in a period of rapid growth.
A decade ago DIY funds accounted for about 10% of superannuation balances, now DIY has matured into SMSF accounting for 30% of the nation’s $1.4 trillion of super savings or an estimated $439 billion. And this is a trend that is expected to accelerate.
According to APRA (Australian Prudential Regulation Authority) at June 2012 funds in SMSF now exceed the funds held in retail funds 26.6% $372.1 billion, industry funds 19% $266.1 billion, public sector funds 15.9% $222.2 billion and corporate funds 4% $55.86 billion.
SMSFs have truly consolidated their position as one of the most popular forms of superannuation savings. In previous posts I have looked at the popularity of direct property investment and I see some overlap of motivation with the rise of SMSF.
Let’s highlight some of the reasons SMSFs are attracting such a level of popular support and such rapid growth and the overlaps are evident.
Is there a link between SMSF and the appeal of direct property ownership?
Heading this list is the common appeal of control if you want control then an SMSF is the best solution because as the trustee of the fund within the bounds of the law, you can make trustee decisions that take into consideration individual circumstances.
Increased choice and flexibility is another and unlocking the ability to consider different strategies, including the choice of investment options and that choice can include property. However, like every option care is required and the same selection criteria need to be applied to property.
Better tax management is another SMSF plus because with most other funds, but not all, an account is taxed on realised and unrealised earnings. But with an SMSF, only realised earnings are taxed.
Improved cashflow management is another benefit with transition to retirement pension strategies; you can contribute to and withdraw from super simultaneously. An SMSF also allows you to manage this within one pooled account.
Investment risk management is also an influence because with other funds as money is received a previously nominated investment strategy is automatically employed. An SMSF gives more flexibility of investment options and risk profiles.
Direct property investment a selective option
As already outlined legislation allows SMSF the ability to borrow and leverage funds into both residential and commercial property and there are clear trends this is happening. A recent survey conducted by Smart Property Investment revealed that, 72% of respondents plan to switch to an SMSF in the near future and 92% of those said they would borrow to invest in direct property inside of their SMSF.
 
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Now given the popularity of a self-managed fund, my team at Colliers International have partnered with national leaders to assist SMSF set-ups seamlessly. If you haven’t already, I encourage you to attend one of our seminars to hear more or visit <a target="_blank" href="https://www.colliers.com.au/smsf">www.colliers.com.au/smsf</a>
There are many reasons that Australians have traditionally been drawn to direct real estate investment. I feel one lasting legacy of the GFC will be the desire for people to take even more direct control of their finances and this logically extends to superannuation.
Curtis Field, an associate of mine at Colliers International who is very much involved with this area, says.
“Almost every day we come across more and more clients from all walks of life who are looking to take control, diversify and stop managed funds/market fluctuations affecting their families financial future, it’s always a key point of any discussion when it comes to property investment options.”
“This includes the ability to harness their super balance as a deposit for investment property and be able to purchase a property right now without one cent of their own personal funds and no cashflow drain. This includes looking at off-the-plan projects where there are many options and varied timelines to consider.”
Generally I accept that for some direct property investors, negative gearing plays a central role, however in a SMSF there are also many tax benefits that are attractive. It’s an area where a clear understanding is required, and our team has lots of help available.
Curtis also highlights the ability to take on good debt in a tax structure that can service debt using 100 cents in the dollar along with the fact that loans are Limited Recourse, meaning other super assets are not subject to bank security.
Curtis sums up with three further key facts:
“SMSF still secure full use of depreciation and capital building tax deductions that are not added back to create extra tax on sale of property, which happens with normal negative gearing.
“There is also the ability to pool funds with up to four members to allow increased exposure to property assets, this can be a great idea for a couple or business partners.”
And one final point Curtis makes is the ability to better manage the intergenerational transfer of wealth in a safe asset protected environment.
Do the homework and be sure to have a plan
The Superannuation Industry (Supervision) Act clearly sets strict rules for all SMSF and up-front the fund must have an investment strategy that covers direct property investment and importantly one that benefits the fund members.
While some restrictions do apply the fund can invest in commercial property and residential property but it would be wrong to see a fund as a simple way to rush into property. However this can be a very attractive option for a fund to buy into a new project and so needs to be a valid part of any project marketing strategy.
For an SMSF securing the most suitable asset class is key. It is also true that individuals understand and are comfortable with the choices they make. The popularity of real estate has always been in big part driven by the fact it is tangible, you can see and touch it and in a risk sensitive world the growth of SMSF investing in property looks appealing, easy to achieve and manage.
But please take note
My comments are not intended in any way to promote SMSF. I am not seeking to give any financial advice here, my intention is to open the conversation of the relationship between the appeal of SMSF and how that overlaps with the appeal of direct property investment, and how the SMSF sector can be an important target for a project marketing strategy.
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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Why SMSFs are increasingly investing directly in property

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In my<a href="https://www.propertyobserver.com.au/developments/cbus-property-s-mark-percy-in-conversation-with-colliers-international-s-peter-chittenden/2012101557171" target="_blank"> recent conversation with Mark Percy</a>, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector. I was also very pleased to hear Mark express some refreshing thoughts across a range of ongoing topics impacting the housing market, as well as some timely points directly related to project marketing.
As we come to the end of this topic, I asked Mark what he thought were among the key marketing challenges for the next few years, not only limited to supply and costs but also the big shifts in demographics.
“I see the biggest marketing hurdle as being an almost complete lack of confidence among buyers at all levels of the market, and while this might move up and down at the margins it remains a problem.  Affordability, the demand for smaller homes and the number of kids living at home later and later with mum and dad are just some of the more obvious pointers we see today.”
According to Mark, statistics such as low residential rental vacancy, low interest rates and limited new supply should be contributing to a bubbling along New South Wales market.  He believes that many of the indicators are positive and that now is a good time to buy.
“But confidence to commit to a new purchase is lacking.  I think it’s almost a perfect storm working against market sentiment.  Overshadowing everything is the post-GFC flow-on, the global economy looks a concern, it’s not going to improve quickly and we are now seeing its shadow reaching Australia.  Consumers are being told so every day, it’s an endless negative background conversation.
“We also now have unemployment concerns and announcements in the media of large job cuts in certain sectors contributing to a nervous housing market. I think that it’s a subject watched more closely than usual.
"We are talking to a cautious market where many young adults are just staying put with mum and dad and not entering the real estate market. Mum and dad are also deferring downsizing while the children are still at home.
“It’s a complex picture and as locals see housing affordability slip away, it’s one reason I think that foreign investment gains so much attention but without it, the local market would be significantly worse off.
“We also have state governments who are scared of taking on debt as they are hell-bent on keeping their credit rating.  This is adding to pressure on local governments, who are struggling to meet their local infrastructure needs."
Mark Percy’s 35 years of experience has helped to frame what has been a wide-ranging discussion with<a href="https://projectagenda.com.au/" target="_blank"> Project Agenda</a>.  Many points are common industry concerns and the debate will go on, but possibly there needs to be more action and less debate.  For anyone working in project marketing, there are many ongoing challenges to address.
Funding, affordability, development design and quality, higher and more complex marketing, lack of infrastructure, professional roles and shifting consumer needs are all big issues to work with and address.
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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The biggest challenges to residential property development: Mark Percy talks to Peter Chittenden

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In my<a href="https://www.propertyobserver.com.au/developments/cbus-property-s-mark-percy-in-conversation-with-colliers-international-s-peter-chittenden/2012101557171" target="_blank"> recent conversation with Mark Percy</a>, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector. I was also very pleased to hear Mark express some refreshing thoughts across a range of ongoing topics impacting the housing market, as well as some timely points directly related to project marketing.
“In general I think that the marketing has kept pace but right now we are looking at a number of core trends and pressures where the impact of finance is central and where incentives have come into the market.  If we are talking about incentives, these can come in two forms, government incentives and private incentives from the developer,” says Mark.
According to Mark, reaching out to attract consumers via the use of incentives can and does produce mixed results but he is cautious about how they are used.
“Many of the government incentives that are introduced do distort the market.  We now have across Australia a patchwork of offers in various forms that vary from state to state.  It would be best, if incentives are available (such as reductions in stamp duty), they were offered across the board, more or less to all buyers evenly.
“Just stimulating one sector can potentially distort the overall market.  While one sector may benefit from the stimulus, it is likely that other market segments may be adversely affected.”
However, Mark believes that the developer should ideally not directly offer sales incentives – price is the main driver for a purchase decision.
“Price alone is far more transparent than developer rebates or giveaways that I believe buyers do not really trust.  Buyers do respond to price reductions that may be negotiated through the sales negotiation process.  It’s better to concentrate on getting right upfront the asking sales price, facilities proposed, quality and design of the project – these are the key factors to get concentrate on and then normally incentives will not be required.”
Mark did agree that existing facilities in an local area are key marketing elements, including those that are already established and in, some cases, those that are subsequently upgraded as a result of a new developments bringing more people to the area.
“Access to a range of local facilities that are not directly maintained by the owners corporation will appeal to buyers.  Reflecting on this, we have already seen the spread of 24-hour gymnasiums, as just one example, plus the spread of a new generation of ‘corner stores’ and take-away food outlets.  They to some degree reflect the needs of higher-density living.”
According to Mark, when a new project has easy and convenient access to a range of existing facilities, this is a clear marketing positive as the project does not need to accommodate or duplicate these facilities.  These facilities are available for use from the day of moving in.


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Match buyer needs no matter how specialised
Along with Mark, I would agree that apartment buyers will always look to access nearby services and facilities; however the supply of good quality in-fill sites is becoming limited.  They are becoming harder to find, in NSW there is much more land available in the outer suburbs and, as inner-city sites dry up, there will be a challenge to match buyer expectations.
“I think that while the balance of local facilities may not always be perfect, as a developer, Cbus Property needs to carefully look at what core facilities we must provide to match market expectations, no matter how specific or difficult they might be to provide.”
“For example at The Residences in Sydney (where our role was a financial one), apartments in the development, which are at high-end of the market, a wine room was provided where each apartment owner could store their wine in a dedicated individual lock-up storage area.
“This was a very specific marketing exercise, with each apartment having access to their own store for at least 100 bottles in a fully climate-controlled environment – it was very well received.  It’s similar to the garden example I spoke about earlier and, again, shows the importance of knowing what facilities your target market will value.”
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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New development marketing must be targeted: Mark Percy in conversation with Peter Chittenden

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In my<a target="_blank" href="https://www.propertyobserver.com.au/developments/cbus-property-s-mark-percy-in-conversation-with-colliers-international-s-peter-chittenden/2012101557171"> recent conversation with Mark Percy</a>, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector.
We are now going to turn to how various development levies, contributions and tax structures that are layered into the property market and the impact that such costs are having on supply of new housing. We reflect on this topic with Mark in this post.
From the onset of this topic, I think that it would be correct to put the proposition that the weight of costs levied against the development industry are now trending towards "getting out of hand". Clearly, infrastructure has to be provided, but are we going about this in the right way, and are funding models keeping pace or delaying projects?
The question to ask is, has the right to develop a project simply been held captive to the payment of these fees, shifting the cost burden unfairly, which appears to lead to the conclusion that such levies and contributions are clearly a tax in need of reform?
Mark opens his remarks with the comment that years ago, the various levies were minor and that, historically, there was a clear direct relationship between the impacts and needs of the individual development aligned with the charges that were being levied.
“Now, levies have evolved into many different formats and they are hindering development.  Levies are moving away from the original intention of financing directly related infrastructure.  I feel there is a foundation to suggest that the former direct relationship needs to be restored, but at the same time I acknowledge that this is a major topic and area for future possible reform.
“Voluntary planning agreements might be one way around this, because all parties come to the table in a constructive and open manner.  The developer has the opportunity to directly discuss options with the consent authority and jointly explore ways to manage the needs of the development and community.
“This is as opposed to a developer simply facing blanket Section 94 levies that often remain unspent by the authority many years after the development has been completed.”
“However, again I have to come back to the financial impact that these costs have on any project.  I would like to make the point that these development contributions and levies are usually payable up-front before any construction work is undertaken.  They have to be funded by either debt or equity, so they become part of the capital cost to be carried through the life of the project.  For large multi-staged projects, this cost may be carried for many years.  For a major project, it will be years before this expenditure can be recovered from sales revenue.  The need to fund these costs throughout the lifetime of the project adds considerably to development costs and therefore must impact adversely on selling prices and affordability.
“Why can we not structure the payment of the levies and contributions so that they are payable before practical completion of the development can be granted by the certifier to reduce the cost of development and improve affordability?
“Given the fact that the construction industry employs so many people and generates so much flow-on activity throughout the economy, it is difficult to understand why so many financial burdens are imposed on it.
“The current approach needs some re-thinking, covering the purpose of levies and financial contributions and reconsideration of when they are paid.”
 
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Mark points to what he sees as a failure in the current approach.  As an industry, we need to seek to reduce as many of these on-costs as possible to improve affordability.  At the end of the day these are passed on as part of the of the selling price.
“In practical terms, the buyer of a new home has to absorb all of this cost as part of their purchase price, yet the infrastructure will be used for may decades.  I think there maybe ways that subsequent buyers, such as second and third-time buyers of the home, can also contribute, possibly through council rates to the infrastructure that everyone uses and benefits from.”
GST is imposed on new dwellings but not on re-sales of existing homes.  The reality is that the states get the bulk of this tax, along with stamp duty from the sale of homes.  This is a hard area for any reform, especially in an era where state governments’ are struggling to fund their infrastructure needs.
“How stamp duty is applied, rebated, used as an incentive and varied from time to time can distort the market.  It allows governments to directly influence either the overall market or portions of the market.  Often the industry suffers because of policy shifts, without full regard to the unintended consequences.
“I do not agree that markets should be stimulated in a piecemeal fashion.  We now have a patchwork of offers in various forms that vary from State to State.  Just stimulating one sector of the market is a political move and it’s never really a good idea as other sectors suffer.
“Prior to 30 June this year, NSW offered stamp duty exemption on new off-the-plan houses under $600K.  This resulted in a significant increase in demand in this portion of the market but, once the deadline passed, sales in this sector of the market reduced dramatically – future demand in this sector of the market was brought forward, stimulated by the incentive.  While the stamp duty exemption was in place, demand for homes above $600K was significantly reduced.  Any homes that were priced in, say, the $600K to $650K price bracket before the stamp duty exemption was introduced, were extremely difficult to sell unless the price was reduced to below $600k so that the stamp duty exemption could apply.  Purchasers, understandably, were keen to focus in a price bracket where the stamp duty exemption applied.”
Mark also sees the reality that while most council rates increases are capped yearly to a fixed maximum percentage increase imposed by the state government, it makes the question of local government being able to fund local infrastructure improvements a much more demanding and complex issue.
“We have state governments who are concerned about taking on debt to fund infrastructure and this is putting pressure on local governments to increase Section 94 contributions and enter into voluntary planning agreements to fund infrastructure."
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 development levies are impacting the level of new housing: Mark Percy in conversation with Peter Chittenden

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In my<a href="https://www.propertyobserver.com.au/developments/cbus-property-s-mark-percy-in-conversation-with-colliers-international-s-peter-chittenden/2012101557171" target="_blank"> recent conversation with Mark Percy</a>, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector. I was also very pleased to hear Mark express some refreshing thoughts across a range of ongoing topics impacting the housing market, as well as some timely points directly related to project marketing.
According to Mark, it is affordability that sits at the heart of limited new housing supply housing, combined with limited development sites and planning delays. He suggests that this will drive major changes with more demand for smaller houses and apartments already occurring.
“The demand for smaller homes is not only driven by  affordability. The increasing demand and acceptability of this form of housing  is complex, as it is being driven by many market factors such as the location of existing infrastructure, work, family, shops, restaurants, theatres, etc. Buyers will compromise their expectations on a dwelling size to be located as possible to this infrastructure and support network.
"This has led to the continued infilling of our major urban areas which has the added benefit of making better use of existing infrastructure. This has the added benefit of reducing pressure on providing infrastructure on the edges of the existing urban area but increases the demand for housing in the inner-urban areas.”
However, in the immediate future Mark believes that the biggest hurdle for the residential market is that there has been a shift in market conditions because of the lack of confidence among buyers and, although manifest in the issue of affordability, it is a very complex issue.
“Among owner-occupiers, there is a lack of confidence, and many people are simply not moving from their existing home. There are many reasons for staying put; many are financial, but there are also social and demographics working here.”
Mark believes that buyer motivation and timing have shifted, which he sees as key reasons for the big drop in demand and hence the fall in home building construction. The cost of moving and poor capital growth are other factors, Mark says.
“In NSW, because of stamp duty incentives available before 30 June 2012, we saw that investors and first-time buyers below $600,000 were very active in the market. But I think it could be argued that this may well have created a distortion in the overall market as many developers moved to change their product offering to meet the inflated demand in this sector of the market caused by the temporary incentives on offer.
"Immediately after 30 June, there was a noticeable drop in demand for new housing. I think that generally the product range and quality needs to be sufficiently broad to attract a cross section of buyers – focusing on one sector of the market is risky, particularly when demand for a particular sector of the market can be affected by Government incentives being introduced or withdrawn through the life of a project” he said.
But while Mark agrees that incentives create activity in the particular sector of the market to which they apply, he believes that despite the incentives that were on recently on offer, the wider market appears to have a lack of motivation and confidence.
While affordability is a big issue, Generation X and  Y are simply not driven to buy a home as any sort of priority, unlike their baby boomer parents were. This has reduced the formation of new households in this age demographic.
Mark cites the clear trend that Gen X and Y are more inclined to want to travel and stay at home longer than their parents did. Homes, either big homes or smaller ones, are today not on their short term agenda. But Mark thinks that the industry needs to think about how this will play out in the mid to long term when Gen X &amp; Y finally “settles down” – the development industry needs to focus a lot of attention and forward planning on this group of buyers to understand their drivers when it comes time to purchase a home and ensure that housing forms provided are suitable for this market.
“Clearly the market has changed in an almost generational shift in priorities and economic circumstances. They are happy to stay at home longer. Many are marrying and having children later and this trend, combined with what plans and aspirations mum and dad, the baby boomers, have is creating a fascinating mix of challenges and opportunities.
“Mum and dad might down-size and help the kids with by contributing some cash to assist their children to buy a home but this does not address the deeper issues of affordability.”
<hr class="system-pagebreak">
 
Major challenges and hurdles faced in the residential sector
During my conversation with Mark Percy it became clear that 35 years of experience have helped to focus his thinking, when it comes to the industry’s structure and the hurdles the residential sector faces. However, Mark also clearly sees how improvements can be made and is keen that Cbus Property is, in its own way, able to play a part in this ongoing process.
“When you analyse the development industry’s hurdles, some of the current hurdles are big ones and, as might be expected, many are to do with availability finance. Finance feeds into every aspect of the market, it impacts on the amount that individuals can borrow and therefore how much they can pay for a home, but this is only one area of note, even if it’s a very visible issue and always talked about” he commented.
But Mark also points out that there are other major issues and these impact on the sustained record of low levels of housing construction in recent years that has limited new supply.
“The industry faces development funding issues. It’s a really big issue, and it is impacting both large and small players.
“Clearly anyone would be able to point to the fact that lending conditions have dramatically shifted since the GFC, and it could be said that the same lack of confidence among buyers has impacted the lenders who have become, by circumstance, much more conservative in their lending.
“This is not to suggest this is an overall bad thing, but it has caused a big shift in how the industry plans, manages and delivers projects. One key point is that equity levels have moved to new higher ground, developers are now required to contribute much higher equity, close to 30% or 40%. I think that for many developers this is the issue of the decade."
Across the industry few would not agree with Mark’s comments as there is now a clear struggle to breach this equity gap and secure a very high level of pre-sales off the plan. This is impacting on how projects are being sold and marketed. Banks often have a pre-sales requirement reaching 100% of the senior debt facility limit before they will commence funding a project.
“Some of the key reasons organisations are looking to partner with Cbus Property is our experience because and financial capacity.
“Obtaining ever more pre-sales requirements are a trend we are not exempt from, and this is creating other challenges. The market is more product / affordability  sensitive and needs to design for the off the plan market – this, for example, has reduced the number of larger two- and three-bedroom apartments in projects, as these are generally difficult to sell before construction, and securing project funding is often viewed from this perspective. This feeds into affordability at every level of the market – smaller apartments are much easier to sell off the plan and therefore help to somewhat de-risk the project. Smaller apartments go some way to assisting with affordability constraints.”
“Affordability is a complex issue, it’s easy to point to one area or another, like interest rates or high selling prices, but in reality many factors are involved. Everyone talks about this issue and there does need to be a concerted effort to improve affordability.
“Land value is a big issue. If you own a parcel of land with no particular motivation to sell, then you can simply sit and wait for a high price. Construction costs are often mentioned but I believe we generally build efficiently. Builders’ margins are generally low for the risks they are responsible for. Quality has to be there, and there is no room to build below a particular quality standard to make a home more ‘affordable’ – that can simply devalue the housing stock, if you create rubbish you simply create another set of problems and destroy the reputation of the company and the overall industry.
“There is also the very real impact of how government levies and charges are imposed. This area is one of the biggest costs to developers, the fees are payable up-front, and so these costs have to be financed and add to finance costs from day one. If the majority of levies could be paid towards the end of the project, this would be of much greater assistance.
Like many others in the development industry, Mark points to the need to balance just how much can be charged against new developments by authorities and government and how services should be paid for. The real point is should all of this cost be captured up-front, from the developer and the initial buyer? After all, most of the services will be there for all of the foreseeable future, not just for the current generation.
“Developers build roads and other forms of infrastructure, built and then used for decades. These are dedicated to the local council or supply authorities who in-turn collect a revenue stream, in the form of rates for local councils while utility companies get a parcel of customers that the developer delivers.
Stamp duty has a major impact on affordability and the rate increases with the value of the home, it impacts greatest on the mid and upper market. As evidenced in NSW before 30 June this year, when it was waived for new dwellings under $600,000, affordability can be  improved and buyers are motivated to commit to a purchase with this form of assistance.
I think that Mark’s comments help to move affordability beyond the monthly interest rate cycle, or reports of the ups and downs of house prices into a complex array of issues at every level of the market.
Mark commented to me that he encounters this topic frequently and he continues to argue that this is a multifaceted topic, and in the next post we will look at the impact of planning policy, another core topic, but one that also impacts affordability.
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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Affordability at the heart of limited property supply: Mark Percy in conversation with Peter Chittenden

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In my recent conversation with Mark Percy, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector. I was also very pleased to hear Mark express some refreshing thoughts across a range of ongoing topics impacting the housing market, as well as some timely points directly related to project marketing. By way of a preamble we firstly touched upon the positive impact of working for a subsidiary of a wholly owned superannuation fund, including its role in supporting building and construction employment.
These topics included Mark’s views on housing affordability, the impact of local and regional planning laws and how he sees the two points as very much intertwined. We also went on the talk about other diverse subjects such as delivering quality projects and good design alongside the need for Cbus Property to take an active and leading development role, not simply acting as a passive funding partner.
In our conversation we also looked at marketing and the all-pervading role of finance, which now, post-GFC, intrudes into almost any property-related topic, from personal mortgages to corporate and development funding to marketing.
The Cbus Property brand
Cbus Property brand is very visible within the development industry, and it is well worth recounting that the company has been successful, not only in terms of completed projects, but also the investment returns for Cbus Property’s parent, Cbus, the industry superannuation fund for the construction, building, infrastructure and allied industries. According to SuperRatings’ fund crediting rate survey, Cbus generally rates above average.
As a wholly owned subsidiary, Cbus Property works very closely with Cbus. Each company has a separate board. The super fund is one of the best performing in the industry, showing how a development, funding and labour model can and does work. This is a view that is clearly backed by concrete results.
“Helping to create employment, by creating jobs, has many benefits, and I am always reassured by the positive feedback I experience when I visit one of our development projects. The workers on-site obviously appreciate Cbus investing back into the industry through Cbus Property,” says Mark.
Cbus was formed in 1984, and currently has 675,000 members with $19 billion under management, of which $1.5 billion is invested within the activities of Cbus Property.
Given its scope and size, just how does Cbus Property work? As might be expected there is no particular magic formula. Cbus Property looks for development opportunities, both commercial and residential, but as already mentioned, one core objective is to help drive employment in the construction industry.
Cbus Property does not buy passive assets and has been operating as a high-profile developer since 2003 and operates a small and highly skilled management group. Mark brings in excess of 35 years of experience to his role.
Today Cbus Property has a range of projects underway with office projects and four residential developments in Sydney and Melbourne. Most commercial projects are held as long-term investments by Cbus and managed by Cbus Property.
 
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According to Mark, partly as a result of the GFC, with residential projects there is a dynamic change in the availability of capital for new projects. Cbus Property is and has been a major financial partner across a range of projects, not just its own developments. One high-profile example is the recently completed upmarket The Residence project in Sydney. This project, as we will see later, also had some interesting marketing aspects.
The Cbus Property residential portfolio currently includes Sydney’s Dominion, in Darlinghurst, with 108 apartments, and the long-running Breakfast Point, in Sydney’s inner west, which is a joint venture project with Rose Group with over 2,000 homes and is set to run until 2016-17. In Melbourne, construction has recently commenced on Warleigh Grove in Brighton, set to deliver 101 apartments and seven townhouses.
Another key project for Cbus Property is at the Paris end of Melbourne, where in 2013 its next major new project, at 35 Spring Street, will get started. The 42-level building will have 270 apartments. According to Mark, this landmark project will highlight the role of quality design, one of Mark’s pet subjects and a driving factor in how he and the company look at each project they are involved with. We will return to this topic later to flesh out some of Mark’s more detailed thoughts.
I asked Mark about Cbus Property’s plans for the immediate future and where he saw the key opportunities.
“In the immediate future our focus will continue to be Sydney and Melbourne, but we are also keeping an eye on Brisbane. The city, core CBD locations is our home territory, then with residential within 10 to 12 kilometres of the CBD, such as suburb like Brighton and Breakfast Point.
“In Sydney we are currently working on a new CBD commercial opportunity.
“We will limit future projects to just commercial and residential, where our expertise is strongest.
“In terms of our own immediate future beyond the projects already outlined, like our many developers we are part of a wider industry network knocking on doors for new opportunities. We also get a lot of approaches from people looking for development partners and finance. We are part of a major superannuation fund, and that will always attract attention.
“In the post GFC environment, I do think there is real value and opportunities, as already suggested, in our structure. I think it creates harmony across our projects; it creates good returns and pride in their investments for Cbus members. We are very positive but cautious in moving forward in the post GFC environment.”
Moving to reflect upon the wider market, Mark clearly sees housing affordability and market confidence as key points that we will discuss in the next post.
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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Cbus Property's Mark Percy in conversation with Colliers International's Peter Chittenden

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While the idea of an offshore marketing campaign can be appealing, there are some obstacles to avoid, so I would like to round off this topic with a check list of key points.
Experience dictates that there needs to be access to a database of strongly motivated buyers, which cannot be created overnight. This data needs to drawn from experienced buyers who are very familiar and comfortable with making early commitments to buy foreign real estate.
But clearly all of these potential buyers will have varied reasons to consider a project. Some buyers will be attracted to a particular area, for example projects near a major university, and they will be keen to secure their purchase. The needs of others may not be easy to identify, but during the course of a well-managed campaign their motivation should become more evident. At different times marketing offshore has been very popular, but the success of Australian projects varies.
Across Asia there can be support for this style of marketing, however it will typically only be of value for brand-new buildings with no prior local exposure.
When taking product into an international market like Asia, there are some key elements that have to be taken into account. The developer must allow sufficient marketing funds, have a local partner in each country and ensure that all marketing material is correctly pitched to local conditions.
It is also worth keeping in mind that the offshore buyer usually favours developers with a strong domestic track record and that develop a regular flow of projects in all market cycles.
We need to consider how the project on offer will be perceived, and generally it should be in a location close to transport links, recreation, and shopping and educational facilities.
So in summary I would suggest the following key pointers: 
<ul>
<li>The product mix taken into the markets needs to present a good range of suitable apartments, picked with key features that are in line with current buyer expectations.</li>
<li>Always keep in mind, as already noted, that offshore buyers like to have the first-release opportunity. This is one reason offshore marketing works on any scale with new product.</li>
<li>At an offshore event you need to on hand have full details covering Foreign Investment Review Board, legal, migration and finance information. This needs to be reliable detailed information or people fully versed in these area.</li>
<li>All marketing material needs to be complete and accurate, in particular floorplans, finishes and aspect and view images.</li>
<li>Buyers will also be keen to know about any fees they may have to pay, both as part of the purchase and any ongoing fees, like strata levies.</li>
<li>There should also be strong locally based support in each market.</li>
<li>One final point, if possible at any major project launch it is ideal to have a mix of local representation, with legal support as well as Australian-based sales team members. </li>
</ul>
Offshore marketing should never be seen as over-simplistic, as this is certainly not the case. Each project requires detailed planning, and market conditions and sentiment can and do shift.
Off-the-plan sales have been and are still popular, but they require a well-established foundation of local knowledge, and the buyer product match needs to be right on target. As I summarised at the start of this subject, the numbers involved are not exhaustive and this will always remain a specific marketing option.
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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Obstacles to avoid when marketing a residential development offshore

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Peter Chittenden

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