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In August 2003 the then federal treasurer Peter Costello gave an interview on 3AW with Derryn Hinch, and the subject was housing affordability, stamp duty, GST and the first-home owners’ scheme.
In part of the interview Derryn Hinch asked why the states had not, as he put it, backed off a bit on things like stamp duty: "That’s what I thought was going to happen.”
This was Peter Costello’s reply, which I think is worth posting in full: “yes, yes, no, what has surprised us is that the principal reason why house prices went up was that interest rates came down. As interest rates came down, we are now at 30-year lows, and you know, we have been running our economic policy to get low interest rates. As interest rates came down, because they were lower, people could afford to buy more expensive properties. And what that did is that it kicked a whole lot of houses that were previously being taxed at moderate stamp duty rates, $6,000 into higher brackets and they are now being taxed at $16,000 or $17,000 for the average house under stamp duty. We weren’t expecting that the states would take this enormous windfall out of stamp duty, but they did. In fact, we introduced, we the Commonwealth government introduced the first-home owners’ scheme, to give a grant of $7,000 to people who are buying their first home. We pointed out to the states that this would bring new people into the market, there would be more house purchases, that the States as a consequence would get more stamp duty and would they please look at that to try and relieve some stamp duty for those first-home buyers. But none of them did.”
Hinch: “Yeah, and are not expected to?”
Costello: “Well, you know, so we have a situation now, this is the frustrating thing, we have a first-home owners’ scheme whereby you’re given $7,000 to buy your first home and the stamp duty is $16,000. So what do they do with their first-home owners’ grant? Go and try and pay off some of their state stamp duty. It is a pretty frustrating merry-go-round out there.”
END.
My point, without favouritism to Costello, even if it appears to be a long quote is that this debate has now been running on for almost a decade. It is an area that various tax reviews have looked at; it is an area that many other government and industry reports have also examined.
And with such a sort fall in housing supply upon us and with housing now less affordable than ever, do you think the debate has been resolved, or even started a move out of the too hard basket?
However having said that, clearly incentives in the housing market are not only confined to stamp duty and to government policy and I will continue this general topic later and look at what and how incentives are used directly by developers. I think it’s an area that is far more clear cut, but an important part of project marketing.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
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Stamp duty debate has been running for almost a decade

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The topic of stamp duty paid on property transactions is never far from the minds of anyone who is active in the residential housing market. It’s both a big source of revenue for state governments and at the same time a lever they also use to manipulate and stimulate activity in the housing market.
I also like to suggest that it is a tax that needs structural change, and I am far from alone in this view. Currently Australia has some of the highest property taxes in the world, and we do not compare well with similar economic like the USA, New Zealand and the UK.
This is not an arbitrary deliberation and so as a first step I would like to start this series of posts by constructing a framework around this always-newsworthy subject.
Stamp duty for home buyers is also it would appear an unpopular tax and by coincidence a readers’ panel survey in the Sydney Morning Herald (April 21-22) showed that 64.5% of respondents thought that stamp duty should be waived for all first-time buyers.
A quick look at New South Wales
There is of course a current concession in NSW for first time buyers that will run until June 30, 2012, and the state is not alone in making concessions. I will return to such incentives as we move through this topic.
But first a brief look at the context of stamp duty.
Historically, stamp duty was literally a fee charged to cover the administrative cost of simply stamping and filing documents when an interest in property of any kind was transferred.
But that is now longer the case and it is a duty that in 2010-11 contributed an estimated $4 billion to NSW state revenue along with land tax, which will raise another $2.3 billion.
At an individual level the duty normally payable on a home valued at $650,000 would be $24,740 and on a home valued at $1 million, which is not an uncommon sale in Sydney, the duty would be $40,490. Not paltry amounts of money and even less so for a first-time buyer in a market where affordability is constantly a hot issue.
When the duty is calculated in NSW it is based on the value of the improved value of the property, including off-the-plan sales, and this includes any GST reflected in the price. And so it is the current market value of the property and must be paid within three months from the exchange of contracts.
Stamp duty rates on property transactions in NSW have not changed since 1986, when the median house price in Sydney was $87,000 and as was generally expected, rates were not adjusted when the GST was introduced.
And while the tax is a progressive tax, since 1986 land values and the cost of construction, alongside almost every other input cost in the housing market have increased, and as a direct result stamp duty has also increased.
A duty with so many variations
I have already made a brief mention of the stamp duty concession in NSW that runs until June 30, 2012, but this is only one of a long list of <a href="https://www.propertyobserver.com.au/resources/government-property-grants-and-stamp-duty-concessions-the-expiry-dates-you-need-to-know/2012041054208">rebates, discounts and concessions on offer that vary between all of the states and territories.</a>
While there is no reason that all jurisdictions should have identical policies, I suggest there is reason to ask a simple question at this point: if stamp duty in its various forms requires so much manipulation, is it time for major change in how and at what rates property stamp duty is applied?
After all at least since the introduction of the GST the industry and governments have been dancing around this subject avoiding real change, and it appears reform is necessary.
Let’s start with off-the-plan sales
In the project marketing matrix off-the-plan sales lay at the foundation of activity and they determine the success of most projects. How stamp duty is treated (notwithstanding various concessions) between NSW and Victoria is one point worth making the comparison.
In NSW the duty is normally payable on the full contract price, which is the improved value of the completed project.
In Victoria there is a concession when you purchase property off the plan. In its simplest application the concession allows a deduction from the contract price for the cost of construction, which occurs on or after the contract date.
What this means is that effectively buyers only pay duty on the improved value of the land and the non-deductible costs and completed construction including GST as at the contract date.
In contrast to NSW and other states, the off-the-plan value in Victoria is the value an apartment would sell at the contract date on the open market as if construction had not commenced.
This is only one example of two very different applications of stamp duty. In a competitive market this can have an impact and for investors can make one market more or less attractive.
There is also much speculation when states vary their incentives with states at times moving to more or less match the incentives on offer. And so, for example if one state offers an exemption its neighbour usually follows.
The link between stamp duty and the need for incentives
Among the many forces impacting price, incentives are one of the key factors to be taken into serious deliberation as part of the marketing mix. And here again many of these incentives will be influenced even if indirectly by the impact of stamp duty.
Government incentives have been wide-ranging and they are frequently seen as ways of boosting economic activity. For example in late 2008 when the then Rudd government introduced its boosted first-home buyers’ grant of $21,000 and various state governments then also added further very valuable incentives markets required urgent stimulus.
These incentives were not new and it has further been suggested that the first-home buyers should in fact be closer to $30,000 and that all stamp duty on homes below $1 millionshould be removed altogether.
Sporadic stamp duty discounts and incentives, even when some appear to be almost semi-permanent do, I feel point to the need to basically review stamp duty as a whole.  The Henry Review of tax has recommended already scraping stamp duties in favour of a new broad-based land tax.  The report suggests that this move could possibly reduce land prices by between 6% and 10%.
At this stage I think there is evidence that stamp duty is no longer the best way to raise revenue form an already heavily taxed property sector and struggling home owners. I will continue to look at this complex topic as it impacts different markets, and also look at how developers are offering their own incentives, which are at times aiming to at least partly neutralise the impact of high stamp duty.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" target="_blank">Colliers International</a>
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Stamp duty must be reviewed

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Over the past few weeks <a href="https://www.propertyobserver.com.au/developments/pre-sales-essential-to-selling-modern-developments/2012040354129" target="_blank">we have examined</a> how a <a href="https://www.propertyobserver.com.au/developments/before-starting-a-registrations-of-interest-campaign-outline-clear-goals-peter-chittenden/2012041654305" target="_blank">well-managed registrations-of-interest  (ROI) campaign</a> structure <a href="https://www.propertyobserver.com.au/developments/the-ways-in-which-to-use-pre-sales-and-registrations-of-interest/2012032654012" target="_blank">is required to ensure that a quality plan</a> is seen as the imperative of all activity in this popular area of project marketing and that tangible sales result.
We have established that from the first stages of planning every step is important, including key elements of how information is collected and managed and how consumers are engaged and motivated so that they see real value from their involvement.
Well-managed campaigns with a solid and creative structure can and have produced very good results. But there have also been some very poor examples where a great deal of time and effort has been wasted. The good examples will help produce solid sales and thus give any early bounce to a project.
Poor examples not only fail to leverage the ROI campaign but can go further and have a negative long-term impact on a project.
ROI campaigns also need to reflect the current market conditions; while these campaigns always need to have a well-managed structure they also need clever creative thinking. That in turn reflects market conditions and brands each project in the most appealing way.
The creative ideas and how the campaign is communicated needs to match the prevailing market conditions. An idea that worked during a strong market will not work or will be less successful when markets are not buoyant. Or likewise when a market is filled with contended tribes of purchaser that are of a particular demographic, the creative again needs to speak to this audience, not what the personal preferences are of the project team.
While some ROI campaigns can be achieved with less expenditure than a traditional marketing release, the expenditure does have to be balanced with the anticipated results.
The central aim needs to ensure that people who do register will ultimately be interested and able to move to a paid expressions-of-interest and perform on the launch day to an exchanged contact.
It can also be a mistake to peak interest among buyers too far in advance of the project’s release. While some potential buyers will always be happy to have a long lead time, others will not. This will mainly be a fact determined by the different target groups involved with each stage of a campaign.
Some potential buyers may be sourced from already well qualified existing client lists including repeat buyers, experienced investors including investment networks, friends and associates of a project and buyers on an active ‘early-bird’ list. For some projects these groups would also include off-shore markets, which will require very experienced engagement. [Because this is a very unique area of property marketing, I will look at off-shore markets in a future series of posts.]
The common thread being that these groups are not usually entry-level buyers, but are targets that know the market or the project and want to be involved.
The structure of the ROI campaign can be such that consumers have to take several steps in the registration process. Simply collecting for example a large on-line database might be a waste of time if anyone who registers is not substantially pre-qualified at some stage in the campaign.
Almost all data ages and becomes stale very quickly.
Areas of high demand
But with well-managed data one method is to contact people on existing databases and ask them to register their interest in a new project should they be ready to move to their next purchase. The ideal way to make a final qualification of a ROI enquiry is to require that a refundable deposit is made to secure their place in the queue.
Some ROI campaigns in a strong market or where the appeal of a property is highly competitive can and do require potential buyers to pay a (refundable) registration ‘fee’ of $5000, $10,000 or $15,000 to secure their interest to preview and purchase a property at launch.
Such registration campaigns can be very successful as the act to pre-qualify buyers and create a sense of urgency, and when conditions are suitable and demand is strong they work in areas even when more general conditions are less than robust. It is all a matter of understanding the local conditions, having the right product mix and solid planning.
However such ‘deposits’ are not always possible or even advisable and if mistimed or used with inadequate market knowledge then the circumstances can backfire and damage a project’s possible success.
Despite all of the industries experience and the detailed insights discussed over recent weeks, ROI campaigns are not universally suitable for all projects. I can’t stress enough, if not done correctly, they can cause more harm than good. Despite a trend that has seen the idea become very popular – do not be fooled! ROI and launch campaigns are not as easy as they appear – they require years of experience.
It is easy to understand this popularity as a successful campaign can save money and as already outlined help secure sales that underpin a project and influence prices in a very positive way.
There are alternatives to the ROI campaigns that can be considered where the activity is driven by quality databases from assigned groups such as local agents, investor groups or buyers agents.
In this instance there is typically a campaign that is undertaken with the support of specific media that revels just enough about a project to secure people’s interest. There is a need to be ‘in-market’ even when selling through databases to provide confidence and assurance the project is genuine. If well managed these campaigns, while involving a reasonable amount of media investment and exposure, can be very successful.
This adaptation however requires the ability to be able to offer the project as ‘market-ready’ so that prices are set with contracts able to be exchanged so that potential buyers only act out of genuine interest rather than joining a database in anticipation of a future launch. This format of pre-release campaigns usually only operates on very short time frame. The key aim is to secure demand in a particular target group.
Whisper or off-market campaigns
While ROI campaigns and limited release campaigns do involve a varied degree of public exposure of the project, there is another option to act on prior to being ‘on-market’.
A whisper campaign that does not involve any formal marketing because it is a strategy based upon existing market contacts and reliable blue chip contacts.  It is a strategy based upon, literally a whisper, which could be these days one based around social media between already well-known and reliable parties associated with a potential project about to be taken to market.
Networking
‘It is not what you know but who you know' – a phrase that has been used endlessly to describe the value of networking.
In marketing terms networking is very powerful and in some very practical ways plays an important role in the project marketing environment. While the high-end of the market can be a very fertile ground for networking it has many varied and surprising applications at almost every level of the market and will in future be a more fertile ground thanks to social media.
The notion is tied very much into the power of word-of-mouth or personal recommendation… ‘a word in the right ear can move mountains’. It has been suggested if you could go and talk personally to every potential consumer face to face you would have the ideal marketing tool.
In its modern form networking via social media and eMarketing is an everyday reality as both rely upon an idea being spread in a targeted way without the direct use of traditional media or at least within limitations as traditional media is still very relevant.
So powerful is networking the idea has kept pace with and even lead some aspects of today’s communications. Every time a consumer gives their email address to a supplier or any organization to receive online details of this or that product or service they are in fact agreeing to become part of a network.
The reason for the willingness is the expectation of getting in ahead of the wider community on some news, offer or deal that may be offered.
So networking can cover a wide spectrum of applications from a direct email, a tweet or telephone call to a well-placed friend or associate about an opportunity or through the use of a blog on a social network site to spread some good news.
However, before taking on any of the alternative ROI strategies we have discussed, one overriding fact remains the chief ingredient in any campaign: the need to pre-qualify any person who expresses interest in a project so that when the property is released and on the market the required sales result is secured.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
 
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The structure of a registrations-of-interest campaign will vary depending on the project

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Given the spread of ROI (registration of interest) marketing campaigns, I think it is important to look at the key setting in greater detail. First up, before starting any ROI campaign it is important to have clear goals and expectations to make sure the idea fits the market circumstances.
The key expectations that need to be agreed would always include clear targeting – otherwise the process will lack focus – such as:
<ul>
<li>Launch day sales target by number, percentage and total value</li>
<li>Number of paid expressions of interest (EOI) to convert to sales</li>
<li>Number of required ROI enquiries to convert to EOI requirement</li>
<li>Number of individuals contacted about the project through all the various mediums to reach the ROI target</li>
<li>The marketing mediums identified and what volumes of enquiries they will bring</li>
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This is not a process of testing the waters, because once you enter the market there needs to be clear intentions to engage the market in a defined sales path.
They key aim will be to build a quality database. This outcome will and can not only rely upon the raw volume of respondents. In today’s market there could well be a hurdle, as securing a strong response is never certain. Quality registrations will only result if the entire process is well managed every step of the way – if a medium is bringing in low-quality leads changes to the marketing message, sales conversation or marketing spend needs to happen and quickly, to ensure the project stays on track to its required numbers.
Access raw numbers with care
Care must be taken in the collection and use of data; simply collecting a great deal of useless information is a waste of time and could well backfire by creating foolish expectations. It is easy for anyone to fill in an email form and these forms can look good on paper but unless there is a qualifying process behind them they may be of little even negative value to the sales process.
Subsequently as the process moves to the point of commitment a poorly qualified database will soon reveal flaws if few sales are converted, or a poorly supported launch takes place. However, if the ROI campaign targets the desired markets then the campaign will secure solid results.
One result of a successful campaign will be the ability to build prices, where prices can be increased, if the demand in these early stages is solid. This is not to suggest that prices can or should be over-heated as a result of early interest, but this is the ideal time to keep prices under review and in line with buyer demand.
A good result from an ROI campaign will assist to leverage higher sales rates early in the development cycle and this solid demand will underpin prices as the project moves forward.
This will also be a positive when dealing with finance from any perspective given how lenders can be in meeting today’s lending criteria.
Against this background of possible results it is easy to see why ROI campaigns are popular. However despite all of the positives, ROI campaigns are not, as has already been suggested, automatically suitable for all developments and they can and have failed. Why this usually happens is because the raw data collected is not sourced from well-targeted activity, thoroughly checked, qualified and managed throughout the entire campaign leading up to launch – you only get one chance.
The qualifying process is essential; it’s the foundation to the entire campaign. The time and resources to do this always needs to be factored into the ROI campaign through an experienced project sales and marketing team who understand the importance of providing detailed and accurate reporting.
Even where existing databases are used do not take for granted that these lists are current, always ask the question. A quality database is built upon constant quality engagement. Otherwise this data, so important to the ROI process, is suspect.
The buyer’s perspective
This brings us to the buyer’s perspective. In any ROI campaign the client’s outcome and involvement must always be a central consideration, so again we are back looking at the quality of data.
Genuine and qualified targets secured during an ROI campaign will naturally have their own expectations and they will have been driven by varied intentions and motivations.
This is not a lottery process and must be well managed. It’s an essential part of one of my re-occurring themes – that is the quality of the buyer’s experience at every stage sales path.
Above all when any consumer registers they must receive a response, immediately (even if automated although this is not ideal) but always within 24 to 36 hours, and that response needs to be of value adding to the level of information the person may already have about the project. Many campaigns still manage to get this simple step wrong or simply rely upon an automated process and leave it there. That’s not good enough!
Consumers who respond to an ROI campaign do so for a reason, and if that is not respected it can damage the project and the developer’s brand. If a consumer goes to the extent of giving over personal information this must be acted upon.
The collection of personal data is an increasingly sensitive area, and even with the backing of privacy legislation there is a need to respect the process.
All of the data collected must be used as constructively as possible. If the data is well structured it also helps qualify and establish valuable demographic information. As a possible starting point even the most basic market profile can be built up, simply by the accurate collection of postcode details as a minimum.
Because of the structure and nature of the marketing, ROI campaigns are frequently most appealing to apartment buyers. This is due mainly to the frequently longer lead times and in some markets very long lead times of one, two or more years before completion.
With such long-term plans, for the developer there is an obvious benefit in securing early sales and many buyers also see these timeframes as an ideal way to manage their aspirations, finances and their varied and changing needs.
The targeted use of ROI campaigns can, when correctly executed, help lock in the benefits for buyers and developers alike.
Timing is an important element
ROI campaigns will almost always be managed over shorter periods of time from six weeks to possibly several months. However beyond two or three months ROI campaigns are usually not that affective because the reasonable expectation of a benefit to the buyer is always diminished by time.
If the campaign is in the market for a protracted time it reduces the urgency. The implied advantages evaporate and the target market will stop seeing the opportunity to register as being of any value to them.
In some markets potential buyers might not only be time driven, they may be happy to register their details and then wait for the product to be on-sale. However the time scales involved and release of information needs to be carefully managed, otherwise consumers will lose interest in the project.
Even when the buyers are not in a hurry, the life of the campaign must still be for a limited time. The advantage of being early into the project will always remain a key attraction to buyers.
Even if some buyers might have been looking around the market before they register, once the ROI campaign is over those who register must be kept up-dated. If a project is being developed over a long period there must be a strategy to keep in touch with anyone who does register on a very regular basis. But this contact needs balance; not too much contact to be harassing and avoiding long periods of no contact.
Given that the main aim of the ROI campaign is, at least in the short-term, to create a qualified and ‘ready-to- buy’ database. Ideally ahead of any formal release or mainstream marketing those who can should be moved to a level of commitment and where possible move to exchange contracts.
ROI campaigns have become very popular and it is important that this step in the project marketing mix be thoroughly managed. The next part of this post will look in detail at the content and planning of ROI campaigns. This will include how the varied steps can be managed and how different creative solutions can be used from private client or whisper campaigns to an open market approach.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
 
 
 
 
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Before starting a registrations-of-interest campaign, outline clear goals: Peter Chittenden

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Off-the-plan sales
Pre-sales will always involve selling off the plan and at times well ahead of any  construction, years ahead in some cases. While there are some very select and limited markets where buyers consider time to be of the essence and buyers are ready to commit, these markets are not common. In fact, today in most markets it’s exactly the opposite, and so we see that most buyers are content to take their time. They do not normally feel hurried, there is little urgency to act.
So any registrations-of-interest (ROI) campaign has to overcome, selling off-the-plan, delayed construction and at times long lead times, and buyers with time on their hands – not a bad run of hurdles from day one! 
Keep the buyers front of mind
While from the material we will review it can be seen that pre-sales can be managed in a variety of ways, it is always important that for all buyers there is a good and positive outcome from the first day of contact so that the pre-sales in turn can then help propel ongoing sales.
This should be a core outcome of this early stage of a marketing that in some projects will run for many years.
This applies no matter what the pre-sales target is – 30%, 50% or more. The target is important, however what is more important is that the pre-sales strategy is a solid success. A poor result can give the development a poor reputation. This has to be avoided. 
However the sales target itself must be achieved and the target needs to be clear from the start of the process. It needs to be the focus of the sales path against which all activity is benchmarked – from the number of enquiries required down to the conversion rate expected. A short fall because of any miscommunication may well put the project at risk.
<img src="/images/stories/peterchart.jpg" width="470">
There are today many purposeful marketing and promotional tools, including the emerging use of social media that can be used to help secure these important foundation sales.
If we look back 20 years or more this was not the case, and selling off-the-plan well ahead of the actual project start was not seen by most consumers as the ideal way to buy property, except in specific circumstances.
There were particular challenges when selling apartments off-the-plan. The scale and detail of development was, without modern marketing assets, much harder for a buyer to grasp than committing to buy a standard home. After all there was usually another similar home already in existence that the buyer could see and touch.
Now with changing housing needs and lifestyles we have now moved into a market where pre-sales and ROI campaigns are centre-stage and in the limelight, and very likely there to stay. This is the core of much project marketing expertise.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" target="_blank">Colliers International</a>
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Pre-sales essential to selling modern developments

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Pre-sales make-up the core of many project marketing roles, and while the value and number of pre-sales required will vary from project to project, pre-sales as such are clearly an essential platform in the development cycle.
There is little doubt that the GFC and the continued jitters in financial markets <a href="https://www.propertyobserver.com.au/finance/borrowing-terms-to-remain-harshest-for-residential-developers-until-global-situation-improves-cba-head-of-credit/2012032553996">have intensified the focus on pre-sales</a> – it’s a reality that is not going to change any time soon.
In an increasing number of cases pre-sales can make or break the future of a proposed development. Consequently because pre-sales are now in most circumstances so closely tied to project financing, the success of a pre-sales campaign is more critical than ever before.
The need to secure early sales and hence finance has caused registration-of-interest (ROI) campaigns to move into a more deliberate part of the sales path, and only when contracts are exchanged will the campaign be seen as a success. It’s no longer good enough for the campaign to generate a database, the results have to be there, and in a staged project the developer will be a need to sustain an ongoing level of pre-sales and convert interest into secure sales.
Campaigns aimed at securing pre-sales can, however, be used in several ways, and how they are planned and managed needs to subtly change to fit varied conditions and markets.
They can be used to create a critical number of essential pre-sales, but there are other ways to use an ROI campaign. They can for example, also be used in a market with very precise targets to act to instil urgency in the minds a particular target audience – thus creating a foundation of pent-up demand.
On the other hand, while also creating a foundation of demand that benefits the developer, those purchasers who do get in early can reap great rewards by avoiding price rises due to the demand created.
In this type of market the use of whisper and off-market campaigns can be used and while still falling within the context of ROI campaigns, these are a highly specialised activity.
Understanding how important pre-sales are the job of creating a suitable ROI plan and then making sure it works to meet the core objectives that is securing contracted sales are the key to this entire topic.
At this early stage in this topic I also feel there is relevance to suggest that ROI campaigns might now being used a little too freely, and by being applied to almost any type and price range of project might not necessarily be a positive, and might have the impact, even if unintentional, of reducing the impact and value of ROI campaigns in the mind of buyers.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
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The ways in which to use pre-sales and registrations of interest

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No matter the type of market we are dealing with it is now almost impossible to imagine a major project being taken to market without the inclusion of display homes or a display apartment (either a full apartment or very convincing facsimile rooms) being at the core of the sales effort.
Display homes have been a part of this market since the late 1940s, when show homes or display homes were first used to highlight the emergence of new home appliances and how the modern family aspired to live. They were also used to entice buyers away from the older inner-city areas, when the suburb was a new innovation.
Today display homes are highly detailed. While there has been a big jump in the quality of CGI images, virtual tours and soon augmented reality these do not really compensate for the ability to see, touch and experience ‘the real thing’ that show what the development or home builder is set to deliver. Only a display apartment or home will ever do this, and now that there is so much material online when buyers do get their first hands on experience of the product I think that it needs to be a gratifying experience.
Display homes
Display homes have been used to sell house and land packages within estates for decades. Today builders and developers invest a huge effort into their display homes and it is common for several designs to be in the one display centre. Display homes can be either related to a single estate or they can be in a combined super home village related to a region.
<img style="float: left; margin: 5px;" src="/images/stories/chitt1.jpg">
Some Australian home display villages are among the biggest of their kind in the world.
On a large scale, these villages can have 50 to 100 homes to view in the one location, each one furnished and landscaped and presenting an enticing and convenient choice for buyers. I think that there are times that given the amount of choice presented it is reasonable to ask if these display villages can be too large?
At such a village it is possible to see would be buyers move from home to home for hours and frequently with many repeat visits. They collect a great deal of information with arms full of brochures and plans to help them consider the various options on sale. Different homes and builders also present a range of interiors and many finish options.
But can there be too much choice, one important challenge in these circumstances is that the sales process must be carefully managed and the sales effort should not simply operate by volume or turn into a form of crowd control.
However when a number of display homes are built solely to service one estate, the options are somewhat different. There can be as few as 2 or 3 homes on a single estate, but this can grow to 30 plus, it simply relates to the size of the estate and the supply of land. The numbers and level of investment need to be relative and I have seen many different options work.
From a marketing perspective it needs to be kept in mind that even estate based display homes will act to generate sales in other areas, this is one key reason why I feel that an estates brand identity needs to be carefully managed. People will always shop around and as I have outlined in a number of earlier posts, the brand message needs to be kept front of mind.
Display villages require detailed planning so that they relate to the entire estate and any on-site marketing centre. These villages also require professional planning within the development controls of local councils, as they can be sensitive issues.  The lead-time for a display village to open can take 12 to 24 months of planning and construction and this needs to be accommodated in marketing plans.
Display apartments
Just like the display villages associated with large residential estates the display apartment fills a vital role in the selling and promotion of high-rise and medium density developments. So much so that developers need to make the necessary financial investment to build full prototype display apartments that leverage every advantage of a project and its future potential.
<img style="float: left; margin: 5px;" src="/images/stories/chitt2.jpg">
The display apartment or in some cases several apartments are then fully decorated and furnished so that they not only demonstrate how the apartment will be built and what finishes it will contain, but they also demonstrate lifestyle options.
If a potential buyer is asked ‘can you see yourself living here’ – we want the answer to be a resounding ‘yes’. The idea is that buyers are left in no doubt about the potential for the new apartment they are considering.
The display apartment encourages buyers to have the confidence they need to commit to the purchase. This is a very important fact because in some cases they may have a long wait for the building to be complete and they will make repeated visits to see the display as they naturally anticipate the completion of their new home or investment.
However it is again important not to overdo this process. Buyers still need to be able to see their lives reflected in the apartments, to imagine how they might like to live. Taking the level of finishes and furniture outside of the likes and dislikes and budget of the target demographics can be a mistake. This point also extends to the size of apartments, how well the design works and of course price.
There is no point in creating a display apartment that people might admire but they would not consider buying. Above all the display apartment has to feel comfortable and help promote the best aspects of the development.
What I am keen to express here is that the product in every aspect must match the target market that has been identified. There is no particular formula, but the product, as demonstrated by the display must make that connection.
There has been a great deal of experience in this area and it is possible to source highly respected, and tried solutions. This is not to suggest a copy-cat approach, in fact just the opposite, but I simply want to acknowledge that risks can be avoided by always making sure the target is kept front of mind so that when completed, the display apartment will fully engage the target market.
<img src="/images/stories/chitt3.jpg" style="border-style: initial; border-color: initial; float: left; margin: 5px;">
In some very high-end apartment buildings offering an interior design service to particular buyers is an idea used in some markets. While in Australia this is not yet common, but in some multi-million dollar markets it could be a good idea as the design consultant can help cement the ideas that the potential buyer might see as important.
Again it’s a matter of meeting the expectations of the target market and that is pure logic at any level of the market.
In the display environment the use of very well-know brands for key appliances and major items like kitchens and wardrobe joinery is a well-established norm, but now the range is being extended to include items like European brand kitchens/walk-in-robes, wine coolers, coffee machines and the like.
But there is also one overriding function that display apartments also fill, and that is the vital role that helps every potential buyer fully appreciate the quality of the building and the finishes that will be used. And of course the appliances that are to be provided. It is also important that buyers understand how the space in an apartment will work. How big is the bedroom? Are the robes of ample size? Will the terrace be a good space to relax and entertain? Where do we store the vacuum cleaner, or the ironing board or the bike?
The display apartment also has to dovetail with, and extend the use of all other marketing materials; this includes floor plans, finishes options, and what different views and aspects are available.
Relating how all of these elements work is a key to how the display apartment works in the everyday and on-going application of the sales path, an important mix of sizzle and information. The display apartment is the nucleus of the buyer’s experience and the culmination of the marketing plan.
 
<hr class="system-pagebreak">
 
The option of indicative rooms
There may be times when it is not possible to build a full display apartment. When this is the case another popular option is to provide indicative rooms as a key part of the display. This option is used and can be a success. Usually rooms such as kitchens and bathrooms are included, as these are high impact rooms the buyers will usually see as very important.
<img src="/images/stories/chitt4.jpg" style="float: left; margin: 5px;">
Another alternative or as an interim measure, possibly in a pre-release campaign, would be to create high-impact CGI images or virtual tours and these could be used in a number of innovative ways including a large scale 1:1 theatre presentation.
This is an idea that was used for several major projects in the late 1980’s and was employed as part of a pre-release campaign when there was very strong demand and at a time when buyers were more than willing to commit to a purchase based upon this level of information. I am sure that if the planning is spot on these options are viable, however market circumstances must always be taken into full consideration.
Never forget the buyer’s perspective
There is little doubt that buyers react very well to beautifully presented display homes and apartments. There are now high expectations and so it is important that buyers in-turn are engaged with the product and not simply entertained.
The buyer’s experience at a display apartment, sales centre or homes display village is all based around a feeling of anticipation, excitement, and interest and hopefully a high level of motivation.
However buyers will look beyond the glitz and so it is important to ensure that key aspect of the marketing are aligned with the display apartment. We already know that a majority will have done at least some, if not a great deal of their own market research.
Even if we are dealing with the most fundamental enquiry, which I think these days would be an exception, here are some of the key points to consider that will always require care when planning both display homes and apartments, they include but are not limited to:
<ul>
<li>Accurate room sizes</li>
<li>How are areas calculated?</li>
<li>Ceiling heights</li>
<li>Bed sizes</li>
<li>Built-in appliances or space for appliances</li>
<li>Accurate finishes</li>
<li>Sound ratings, wall strengths (people tap on walls) – main internal walls and party walls</li>
<li>Ample power and data point</li>
<li>Access – getting furniture in and out</li>
<li>Strata fees, local services</li>
<li>Colour schemes as they appear and not only relying upon a small sample finish board</li>
<li>Lighting and natural light</li>
<li>View or street aspects</li>
</ul>
A competitive edge
The display home or apartment is a major investment. It’s an investment that can cost hundreds of thousands, even millions of dollars. Such investments are absolutely justified, as this is a high-touch environment.
However no matter what investment is made I have repeatedly stressed how accurate planning, a solid understanding of market conditions and the target demographics must be the foundation of every aspect of the display environment.
For almost any new project competition will be complex and will not only come from other developments, but will also come from the existing housing stock. Existing homes are sustained by one big advantage, they are complete, and they are functioning as a home. While some might be frayed at the edges, most are usually loved and many can be very inviting.
I think that it is always crucial to keep in mind that we do operate in a very complex and varied market helping well-informed buyers and these circumstances will continue to dictate how every aspect of display apartments and homes need to be considered down to the smallest detail and kept under constant review.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" target="_blank">Colliers International</a>
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Display homes are a vital part of marketing a new housing project

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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