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From my direct involvement with many projects taken offshore, a well-established sales path is required for success; otherwise if the exercise is poorly managed or the resources underestimated it can be a costly mistake.
However, well-managed and resourced offshore marketing campaigns do provide a unique avenue to bolster sales in particular off-the-plan sales, usually ahead of general open market release. And in laying the ground work we should firstly look at some of the particular attributes to fuel a successful exhibition or campaign.
When looking at Asian markets in particular there is a proven appetite among buyers looking for early participation in new projects. They like to be among the first, if not the first buyers offered a product.
However this does not always mean that an entire project has to be held off-market ahead of any offshore release, because it is possible to sell simultaneously with the right platforms to manage multi-channel sales or take a preferred selection of apartments, with such apartments having been selected to meet the preferences of the individual off-shore target markets.
This is also in part achieved by the discreet use of buyer database targeting so that an environment is created through which it is possible to fine-tune the offer that is being made at, for example, invitation-only exhibitions. This depth of knowledge further underlines the role and importance of local partners.
 
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These offshore exhibitions are also better planned to be project or location specific with the aim of attracting potential buyers who are already somewhat pre-qualified. A mix of different locations and varied product offerings can be difficult to promote.
Offshore exhibitions can also be built around an information or educational seminar format, driven by country- or project-specific research – possibly held ahead of the release any actual projects for sale. This can be a very productive format. Experience demonstrates very small details, if not understood, can discourage offshore buyers away from investing in foreign property markets. So what better way to overcome this hurdle than by educating and gaining a better understanding buyer concerns?
If market circumstances warrant, then participation in larger-scale general exhibitions can be justified, but I feel that there should be a clear need, as cost is can be a big issue. This includes not only the promoter’s fees but also the other direct expenses, which can make the event a very expensive exercise.
For Australian projects there is a greater acceptance of property exhibitions on a smaller scale in Asian markets, and they can be of great value. Many of the international real estate agency groups, including Colliers International, have well-established expertise in these areas. Even in buoyant times, a one–off venture into these markets would be difficult.
It is also important to keep in mind that in most external markets there can be a culture that expects that this will be “first bite” of any to these areas cannot be the best investment – due diligence is important!
There are a clear set of important steps that are required to successfully take projects offshore and to achieve a critical volume sales, each point needs to meticulously addressed.
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 required to market residential developments to offshore buyers

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The general topic of foreign investment into Australia property almost always attracts a lot of attention. As it were, "selling the farm" has never been an overly popular idea. And at various times there has been a lot of attention paid to the suggestion that to many Australian homes were being sold to offshore buyers.
However, when taking new residential projects offshore, there is no guarantee of success, and like so many aspects of project marketing, the devil really is in the detail. Reputation is a key ingredient in markets where family and business ties are important. Before looking at the specifics of how to take a new residential project to offshore markets, I would like to put the market into some context.
The offshore market potential
According to Foreign Investment Review Board figures in 2010-11 real estate investment accounted for 23% of total foreign investment into Australia by value, and only mineral exploration and development and services are bigger sector.
So let me firstly put this into some general perspective. Australia-wide the total value of dwelling sales over the 2010-11 financial year was $193.5 billion. Houses accounted for $141.8 billion and units for almost $51.7 billion with these sales, including both new and established stock.
From figures published by the FIRB, approved investment in all forms of real estate was $41.5 billion in 2010-11 (compared with $20.0 billion in 2009-10). It does, however, have to be noted that these figures were affected by changes to the policy and administrative arrangements for residential property and so they do not provide a comparable view of investment activity in this sector.
Residential investment accounted for $20.92 billion for some 9,556 dwellings, of which new dwellings amounted to $12.54 billion of some 3,976 properties. Although the figures are somewhat complex it appears that most investment wound up in Victoria and NSW. It is, however, the new dwellings that are of central interest in our context as a potential target for project marketing, with new dwellings sold off-shore accounting for approximately 6.5% of all sales.
So before we start to look at how we might market to this target, it is worth looking briefly at the FIRB’s definition before we go further into this keenly watched topic.
New dwellings – the FIRBs definition:
“ New dwellings acquired ‘off the plan’ (before construction commences or during the construction phase) or after construction is complete are normally approved where the dwellings: have not previously been sold (that is, they are purchased from the developer); and have not been occupied for more than 12 months.
There are no restrictions on the number of such dwellings in a new development that may be sold to foreign persons, provided that the developer markets the dwellings locally as well as overseas (that is, the dwellings cannot be marketed exclusively overseas).
This category includes dwellings that are part of extensively refurbished buildings where the building’s use has undergone a change from non-residential (for example, office or warehouse) to residential. It does not include established residential real estate that has been refurbished or renovated.
A property purchased under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor’s own use. Once the property has been purchased, it is second-hand real estate and is subject to the restrictions applying to that category.”
By any reading this is a very clear policy and so sets the stage for taking new apartment projects offshore, the policy sets a firm foundation and avoids any sort of ambiguity, which is a good, as offshore buyers need straight forward rules to work with.
With offshore buyers possibly accounting for 6.5% of sales transactions it is a market worth our attention, but still a market that is a small target and one that requires considerable skill and resources to engage with, and that will be the focus of my next few posts.
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 attract offshore buyers to your residential property development

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I am sure you have heard of the baby boomer generation along with Gen X and Gen Y, now it’s time to get to know Generation C (Connected) and Generation S (Screen).
Why? Over coming years both of these groups will start to change how we market and communicate with these future buyers, and the trends are already showing up.
Generation C: Connected, communicating, content-centric, computerised, community-oriented, always clicking, they are primarily urban and suburban. By 2020, they will make up 40% of the population in the U.S., Europe, and the BRIC countries, and 10% of the rest of the world — and by then, they will constitute the largest single cohort of consumers worldwide.
Generation S is already here. They came on the scene during one of the most significant technological revolutions in the digital age the arrival of the portable screen. Goldman Sachs estimates almost 2 billion smartphones will be sold this year around the globe.
Now there is compelling evidence that successful brands will go where the action is – touch-screens, and this will include project marketing.
The Property connection
Local research indicates that almost 30% of real estate websites are now being accessed via mobile devices, including tablets, and that number is expected to increase to beyond 50% in the next two years. Beyond that, who knows?
We are now looking at a world where screens are used for everything from entertainment, communication, education, shopping and transacting. It makes the world much smaller and more accessible and at virtually any time, on demand.
How will marketers, brands, retailers and publishers stay relevant to this audience that expects to transact nearly everything on a touch-screen? First, they need to be where the consumer is and ensure a relevant brand experience irrespective of how the content and information were discovered.
That means creating and redesigning websites to render appropriately and dynamically for different screens and operating systems. How will brands facilitate seamless transaction and communication with these new consumers, who will only have the expectation of such an experience?
Brands are behind – but that creates an opportunity:
Today, 45% of Fortune 500 companies do not have mobile-optimised websites, according to a recent study from the Interactive Advertising Bureau. But now is not the time to sit back.
It’s still early innings for this screen-driven world, and there are many other avenues to still develop and explore. Now is the time to get involved with partners and help shape the Gen S and Gen C media platforms and experiences. For some years I have been involved with Tabletop Technology – the Hii interactive platform has been used on several Colliers International projects and very well received. Further to this our sales executives also use iPads to manage and service their potential purchasers.
Such new technology always requires investment and patience, but action now will best position us all to be prepared for what comes next and likely will arrive even faster than before, and this is where technology like Hii have already started us down that road.
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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Residential property developers must get to know Generation Connected

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The time required to sell out a project is always critical. But along the way there will also be other milestones, which will include when and how a project is released to market.
For a major apartment development an important part of the marketing process, and possibly the central issue, is when and what apartment types are released for sale. In a project with say 250 apartments there will also be a wide diversity of apartments for sale with varied sizes, prices and configurations, and these will al influence the release program.
With small projects there is not this same diversity. While no two apartments are ever exactly the same, the marketing of a smaller project still needs to take into account how and when apartments are released for sale.
The marketing collateral may well have to address each of the apartments as “one-offs” to ensure that the sales path is supported with relevant information. When, for example, brochures are prepared, this is an opportunity to refine the creative content and show how different services and finishes are presented relevant to the scale of the project.
An essential goal is to ensure that one type of apartment is not sold out too soon or with a small project that one or two apartments are somehow seen as less than desirable because they take longer to sell. Apartment values and demand need to be managed across the project no matter how big or small. Demand, alongside detailed buyer feedback and sales rates, needs to be constantly monitored, discussed and where necessary the sales path adjusted.
In some examples this process can be very intense, for example during the first stage release of a new building, and in small buildings where release options might be limited, even more so.
In any project release there will be some highly desirable apartments that will always sell. This demand is hardly ever uniform and will vary with each project. A registrations-of-interest campaign might well indicate some valuable trends. This demand needs to be leveraged to the benefit of the entire project and in a small project capitalised upon during the early stages of marketing off the plan, ahead of construction. Because we are dealing with a small project there may well be an advantage and with changes that are easy to make across all apartments.
From the earliest stages of the marketing it is very desirable to maintain a detailed understanding of how different apartments are selling. Popular stock can if necessary be used to help encourage future sales. This is not suggested in an open-ended way, because in a small project sales volume will naturally be limited, but with planning the most popular apartments can play a critical part of the sales path and help to grow prices and encourage ongoing demand across the whole project.
One option would be to increase prices and hold some of the most popular apartments back to help make other stock more attractive to some buyers with more limited budgets. If the best (most popular) apartments in any project are sold and taken off the market during the early stages of the marketing, this can limit the ongoing appeal and flexibility of the project.
However time on the market must be carefully managed, as buyers will soon become sensitive to any apartments that are taking longer to sell than others, and when this happens to a number of apartments in a small building the entire sales path should be rigorously examined.
A final overview
My aim with these posts has been to talk about how a well-managed marketing campaign for a small project will help to unlock and sustain value. The market’s potential, timing and an insightful view of the target demographic are key factors.
But there is also a clear need to fully embrace and set priorities for the marketing and the sales path, because the highly efficient marketing tools that are now available will make a difference.
Budgets do not need to be excessive and it is important not to simply imitate what larger projects with their greater flexibility and resources might do. This is an area where experience and professional planning will help kick-start and then manage the best possible sales path. Which importantly gives all buyers what they need, and that is frequently highly focused support and information about the project. Above all small projects demand individual and well-managed marketing that can now leverage the best of online and traditional marketing.
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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Timing is critical when marketing smaller residential developments

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Once the project website and the scope and detail of display material are under control there are a number of other key assets that I would always see as important. Many if not the entire remaining budget points are all related, including: photography, creative, signs, CGIs, direct mail, brochure, advertising and a project model.
In this post it is not my intention to go over each point in exhaustive detail. The intention is more about highlighting that despite the fact we are reviewing small projects, shortcuts in marketing will have an impact. And if one or two late or lost sales result that might have been secured with better marketing, this can actually have a much bigger impact. That point made, it is even more logical for smaller projects to have well-planned and considered budgets, so no opportunity is lost within the sales path.
This brings me back to a reoccurring point. The budget and planning processes are essential steps and the sales path will suffer if the marketing is not in tune with local conditions and the expectations of target buyers. Flawed plans may well result in a costly mistake and early research and access to an experienced sales team (even if small) is always wise.
While major developments will have more extensive up-front costs associated with bringing projects to market, smaller projects nonetheless still need to invest wisely in the key budget items below, and those that have already been outlined.
In combination these items, when well-managed, will present an entire raft of proven marketing opportunities. Planning will be a key issue, but experience shows that with careful monitoring of each stage, activity can and should be fine-tuned. For small projects this is very relevant during any registrations of interest campaign, where webtraffic and registration results can help unlock further valuable information about the target market and who is showing potential interest in the project.
Now as we move to look at other detailed aspects, like creative, advertising, brochures and signage we might keep in mind a number of pointers. Smaller developments tend to be either at the high-end part of the market where they can be very expensive apartments or where we are looking at popular in-fill locations, but generally we are marketing locations in well-established areas.
There is a trend where smaller developments are being built across already well-known suburbs because they usually have good access to public transport. This can still include a very wide variety of properties across particular areas including high-value developments where traditionally larger residential blocks are being amalgamated.
This can create a choice of apartments for sale in popular locations where there is an appealing marketing offer that can be told. These locations can provide a good foundation of material for brochures and being in already built-up areas where signs and direct marketing will usually have solid impact.
Even though there will be a diversity of product and demand across these markets, there will be challenges. Among the key challenges will be the possibility of having to develop projects with higher site and build costs.
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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Shortcuts in marketing impact even small developments, so get your plan right

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In this post I am going to look at the links between project websites, pre-sales, and the importance of display materials.
Firstly I wanted to briefly outline how the site can be used to support an ROI (registration of interest) campaign. I also want to reinforce how essential it is for small projects to accurately target key markets, which will help appreciate the role of online activity. Because no matter how good a website looks, or how well it is constructed, there is a need to create awareness of the site, as it is not a source but a medium of enquiry.
The real estate industry is one of the largest users of online advertising, with an ever-increasing level of spending. Real estate was one of the first industries to exploit this media, and so we have already established a wealth of experience. Now the big changes taking place revolve around how funds are spent online.
Project marketing online expenditure usually involves email, commonly referred to as eDM (electronic direct marketing), targeted display advertising on the major property portals, paid search such as Google AdWords, organic search (search engine optimisation), video – usually via YouTube –and online audio or podcasts.
The understanding of how to benefit from online advertising is still evolving. The main reason for this stems from the reality that this is not a simple formula- or template-driven environment. We are dealing with a highly literate and experienced audience, therefore it is exactly the opposite.
There has been a big increase in the number of projects using ROI campaigns with the aim of securing pre-sales, in particular the sale of apartments off the plan. However, despite the popularity of ROI campaigns, I feel it is timely to emphasise that a solid framework built around a complete strategy is required. An experienced sales team should always have an existing quality database that can be a solid launch point.
Key aspects of ROI campaigns
While there can always be some buyer resistance in gaining pre-sales, there are also strong buyer motivations that can help to make the process worthwhile. Timing and the use of a well-structured website will be essential for the project to gain traction.
By comparison with larger projects, the motivation of buyers interested in small projects is frequently far less speculative. This group may well include experienced buyers looking for a particular area, or buyers driven by very specific lifestyle considerations.
While such buyers may not be easy to identify, during the course of a ROI campaign, they can be engaged via quality communications, including a well-managed online campaign and website to capture the leads.
At the start of such projects the value of existing quality databases will, as already highlighted, be an obvious advantage.
However, any database will only be of value if it is up-to-date and matches the needs of those who have taken time and effort to register. Because we are dealing with a smaller number of potential buyers, communication needs to be constructed with care, and a general scattered approach is a big negative. Our target may well lose interest if ongoing contact is poorly managed.
ROI campaigns will suffer if the marketing is not in tune with local conditions and buyers’ expectations. Flawed timing and inaccurate collateral would be a costly mistake. This is where we also start to see an overlap with the display material that will be required to support a small project.
I also stress that the same “rules” will still apply even when a small project, by its very nature, has a strong level of pent-up demand. While the buyers might not be camping on the streets, from a marketing perspective, they still share one important facet and this relates to the timing and accuracy of information available.
A major CBD apartment project can be flexible or staged, and the potential buyers will normally have more choice. Buyers can also take their time and possibly cherry-pick available stock, but in a small project this will not be the case. Once buyers have been attracted they need to be taken on a sales path that will readily secure the purchase.
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 a development can secure sales from registrations of interest

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In my earlier post last week I outlined some key budget settings to guide how the marketing spend for a small development project might be structured. I did this because it is important to consider the key relationship between how marketing expenditure is structured and the likely impact these decisions will have on the sales path for a project.
The logic behind this way of working is that setting the marketing budget against the development and sales strategy will highlight the key market conditions that will have to be addressed in order to gain the necessary leads and subsequent sales – the benchmark of our marketing success.
Assuming that any project we are working with is yet to start construction, the marketing budget, if well managed and structured, plays an instrumental part in a project’s success.
I’d like to highlight two key points <a href="https://www.propertyobserver.com.au/residential/to-market-smaller-developments-you-must-fully-understand-your-target-market/2012081355995" target="_blank">from the marketing budget outlined in my last post</a>, being the project website and display materials. With both accounting for about15% of total budget they are potentially, outside of media, two of biggest and most effective areas of expenditure. Together they are also imperative in helping to drive off-the-plan sales.
If either of these two areas are under-invested in they can easily become issues that are expensive to overcome or they will add what are clearly avoidable time pressures. If the marketing budget is an early focus and with the amount of experience available with the right project team, I believe that such hurdles should be avoided, so they do not become issues that need to be addressed later in the project’s development.
The project website
The project website is an essential marketing tool.
Now that’s a statement that will not be a surprise to anyone working in project marketing, but its nonetheless worth re-stating.
And because we are talking about budget settings, it’s also worth acknowledging that website development and construction need not involve a large up-front cost, but effort in terms of quality content and keeping the site up to date, including being linked to database management (CRM – customer relationship management).
A well-planned website will also make allowance for the varied product stages that may be required during the marketing, starting off with the ROI (registration of interest) and pre-release period.
Some current project websites that in my view are stand-out performers for various reasons are:
<a href="https://www.colliers.com.au/smart/home" target="_blank">www.colliers.com.au/smart/home</a>
<a href="https://www.sundayapartments.com.au/" target="_blank">https://www.sundayapartments.com.au/</a>
<a href="https://www.beachsideliving.com.au/" target="_blank">https://www.beachsideliving.com.au/</a>
<a href="https://www.colliers.com.au/friday" target="_blank">https://www.colliers.com.au/friday</a>
<a href="https://www.swanstonsquare.com.au/" target="_blank">https://www.swanstonsquare.com.au/</a>
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 smaller developments can make the most of the project website and marketing materials

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Over the past two decades there has been explosive growth in the supply of new apartments. Every capital city and many major regional centres have now experienced the spread and popularity of apartments, in particular projects in or close to the CBD.
Major apartment developments are now a central element of urban growth and planning. The Gold Coast is now home to one of the world’s tallest residential buildings. Q1 is an impressive 322.5 metres tall, but other cities, including Melbourne, Chicago and Dubai, also have impressive residential towers.
There are an estimated 100-plus very tall residential buildings across the globe, thus clearly establishing the trend of mega residential towers on our skylines. And while these are impressive projects with extensive marketing campaigns, there is another side of the market – the smaller, more boutique style of development that increasingly peppers our suburbs. In particular these are popular in our popular and more expensive inner suburbs, where there are many projects on the go.
It’s a trend that is evident in particular across many older established suburbs, but this is not a new fashion, as areas like Sydney’s inner east and Melbourne’s St Kilda have long been home to many apartment buildings. Located on what would have been seen as the fringes of the CBD, Sydney’s 13-level Astor (built in 1927, architect Donald Esplin) is a great example of how smaller projects stand the test of time.
These inner-city apartments used to offer a very wide spectrum of prices, from the modest and affordable to the opulent and very expensive, but the reality now days is that to be financially viable, smaller buildings, in particular new developments as opposed to refurbishment projects, need to attract high prices.
However these projects can still cover a generally wide cross section of developments that can range between six and 20-plus apartments, and they are almost always in very desirable and well-established locations.
There tends to be very expensive apartments in these smaller buildings, in highly sought-after locations with AAA finishes, close to the best of established amenities and accordingly with multimillion-dollar price tags – but this does not always have to be the case.
Where do the residents come from for these apartments? Experience shows that many of these projects have become attractive to older buyers trading down from large family homes, either in the immediate area or from other wealthy suburbs.
However, when it comes to marketing these and other smaller projects there is never a simple answer, as the buyers are a diverse group. Smaller developments still attract a wide cross section of people, and while there may be fewer first-time buyers with young families, the market will still represent a mixed community.
Experience also shows that while the market has depth and diversity, the buyers can be harder to find and engage. This partly reflects the limited nature of supply and frequently there is less urgency.
Because of the size of each project the number of apartments for sale will be limited in any one location, but there may be several small projects spread across the area and there is always the private treaty market to consider.
Unlike a large project that can accommodate varied needs and product with much more flexibility appealing to many different buyers, smaller buildings tend to have a more specific target demographic and so the marketing plan, budget and mix of activity is very different.
Commercially it is also necessary to accept that a larger development with wider appeal could have more avenues for success, as the market is bigger. However the development costs will be much higher. This risk is harder to package and requires years of experience by the project team to get it right.
However, in setting the marketing outcomes for any development it is always necessary to take into account the impact of how the mix of apartments and the size of the project will be received by the market.
In some locations, like those mentioned above, generally much higher prices will be required to justify the risk. The amount of capital involved is higher, including the reality that land costs per apartment will be more, alongside demolition and possibly extended holding charges.
In such a case the mix of apartments, their size and standard of finish will be central options to consider if the desired net return is to be achieved. Here again the marketing will be critical so that time on the market is limited, and this would include targeting early off-the-plan sales successfully.
Given the impact of the development costs involved and the resulting asking prices for the project the target demographic that have to be reached should be locked in well before any marketing is undertaken.
The apartments that are created will have to appeal to a very select market in order to be commercially viable. This may appear obvious, but highly focused and accountable marketing will be required to ensure the target is engaged. Be they owner-occupiers or investors, the high prices involved only further emphasise this reality.
Mistakes will be harder to undo. If the target is not engaged, prices will suffer and it will take more time to sell all apartments. Also if the target is engaged and sells fast then prices can be adjusted.
Smaller developments in prime locations simply have to deliver appropriate, quality apartments for sale to justify the development risk with products to precisely match market expectations.
The marketing message needs to be structured for maximum impact to the particular target market. It will also be important in a smaller development to maintain consistent brand values, as a mixed message will only create confusion in the eyes of a very observant buyer.
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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To market smaller developments you must fully understand your target market

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When we look at <a target="_blank" href="https://www.propertyobserver.com.au/trends/how-demographic-trends-shape-our-property-choices-peter-chittenden/2012080155815">the impact of family formation</a> it takes no enlightenment to understand that as families grow they have very different housing needs. This is an obvious fact but one that has far-reaching impacts for project marketing, because growing families top the list of reasons as to why most people move house. Likewise at the other end of the scale, when families shrink, the impact is visibly felt.
The needs of growing families have always fuelled the growth of Australian suburbs (as they do in every developed economy), and while more people are now living in the inner city and in apartments, the suburb is still, despite an ongoing debate about its future and cost, very much alive. Today across Australia on the outskirts of many cities there are major new areas of growth, and there are also areas where large tracts of in-fill sites are being developed.
However, almost without exception governments are either failing to deliver or are unable to afford the necessary infrastructure to support this growth, it’s a time bomb that is ticking away. The cost of new infrastructure impact almost every area of the housing market and is a major impediment to improving affordability and so directly impacts how families manage their housing needs.
There are also families who are very happy living in the city where they are big users of existing community facilities like parks, recreation facilities and schools. As children age some families do not see the inevitable need for a backyard or the need to live in the suburbs. These families are happy to trade private space for quality access to public space.
For the development community and as a key marketing challenge, finding the balance across these varied needs and aspirations provides choice and diversity of projects. The recycling of former inner-city industrial areas, which are close to established facilities, is one very big trend that is obvious in our capital cities and in many regional towns. And while these areas do not always have every facility or service, the density of development and the resulting increase in population then helps to underwrite investment in services.
Sooner or later almost all children will leave the family home, and this truth is one of the biggest drivers of demand in the housing market. While it is a gradual process, the demand created and the changes it causes for everyone involved, including mum and dad, are fundamental. The impact can be very chunky, like all those baby boomer kids leaving home in the late ’60s and into the ’70s and who now own a major part of the national housing inventory.
Young adults move into a flat, they move to a shared house or they buy their own home and they form varied relationships. Whatever step they take as kids leave home, it involves a shift in the demand for housing – both in terms of type and location. As families shrink some areas with less population have services run down, but over time we also see these same areas regain popularity and the cycle continues, and these are the very changes that create development and marketing opportunities.
This “chapter” is a big part of family formation story and also changes for many people the core dynamics of the family home, such as the amount of space needed and where people live.
Smaller families with fewer, no or older children at home have different housing needs, and now there is an emerging debate about the extent of empty rooms in family homes as areas experience housing crises and reduced affordability, and in some areas there appears to be a reluctance to sell up and move. The reasons for this reluctance are complex, but can include flat house prices plus the cost of moving including stamp duty.
Last week a study funded by National Seniors revealed that Australians give a huge $22 billion a year to their adult children. Why? Well, as it happens, to help them get established and mainly to buy property, but also to tide them over tough times.
As I look at older families the same survey also showed Australians gave another $1 billion a year to help house and support elderly parents. For the housing market the transfer of money between Australians aged 50-plus into the pockets of their children and to elderly parents suggests a more complex marketing environment. We may well have two target groups for some projects – the actual people living in the property and those (possibly older parents) paying or helping to foot the bill!
As families age and mature, this will almost always leave mum and dad at home, alone for much of the time in a home that has far too much space for just two people. The family home is now occupied by empty-nesters and so many, but not all, move on and in the move capital is freed up or the family homes acts as security to help house the next generation.
This same family home will also in many cases be sitting on a large block of land, that could either be subdivided or redeveloped – the pressures in infrastructure-starved cities are obvious.
One family moves on and another family moves in, or depending upon location and the age of the family home, it and adjoining homes become ripe for redevelopment. Development then responds to the changing demographics trends in an area, and that triggers, for example, the construction of medium-density apartments. This change at times results in intense community debate, but if we accept that family formation shifts with time and reflects wider social trends than the change might be seen as less disconcerting.
As the density of housing in an area shifts so will local services change, schools will close, or new ones open and the retail and social mix of an area responds, the housing market does not remain static and change is frequent.
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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As couples have children and children grow up, housing needs change dramatically

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<a href="https://www.propertyobserver.com.au/demographics/the-changing-nature-of-families-and-their-impact-on-the-property-industry-peter-chittenden/2012071855614">In my last post</a>, my aim was to outline how key aspects oF family formation impacts the demand for real estate. Looking at how particular demographic trends go way beyond influencing demand to fundamentally shape our immediate community and cities.
 
To round off these posts, this week I will look at what is I think, a very familiar journey. It’s a journey from our first flat, to a group house, finding a partner, becoming a first home buyer, having kids, investing in real estate other than the family home and getting older.
 
From that first flat to buying a retirement home, every step plays into the fabric of the residential market and has a direct impact on how and to whom we market our projects.
 
All of these stages of family formation drive and shape our markets, and during many of these stages incomes also grow and the priorities of the buyers shift.
 
So much so that if a well-established pattern shifts, the market needs to be ready to respond. People leaving home later, marrying and having children later are some recent stand out examples that have also helped shift demand to more medium density living. I would also like to think that by always taking a keen interest in social and demographic trends we are better placed to deliver projects to satisfy current and future needs.
 
So far I have looked at the singles market, finding partners and the reality of how lifestyle and housing needs change when here come the kids. This week over a series of posts I would now like to close off this interesting topic as we look at the impact of an older population.
 
As families mature and personal and family incomes peak, the mindset of the target market changes markedly from being single or from being a first time buyer. While many people will trade-up in the market others will also turn to real estate as an investment.
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 demographic trends shape our property choices: Peter Chittenden 

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

Joel Robinson

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

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

WM Residences fills gap in Mordialloc townhouse market

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

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

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

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

NAB funds $1 billion Surfers Paradise apartment development, Palmera

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

Peter Chittenden

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