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Note: This is the second part of Peter Chittenden's 2015 outlook. 
To read Part 1, <a href="/expert-insights/buying/the-residential-property-outlook-for-the-year-ahead">click here</a>.
Looking further into prospects for 2015: currently, the collapse of commodity prices is making hard work of local economic policy settings.
An interest rate cut looks to be more firmly on the agenda and employment prospects look shaky. Consumers are hesitant, but there is good news at the petrol bowser.
Beyond these leading factors, the residential market and in particular the demand for new apartment projects may slow at the margins in 2015, while remaining strong in key areas.
While the health of the wider economy will have an impact, there are a number of specific policy areas that will more directly influence demand. These include a review of taxation policy, the delivery of major infrastructure projects and planning policy. The falling dollar may, however, act as an incentive for off-shore buyers. This time last year, the AUS$ to US$ exchange rate was $0.89. Today it’s $0.81. Although this is a four and a half year low, the Reserve Bank has suggested the possibility of a greater fall, with the dollar valued closer to US$0.75.
Looking towards 2015, it appears that everything financial will have an impact on the residential property market.
The influence of lower rates for anyone with a home loan or looking to finance will be positive. However, with more caution now apparent in the market, lower rates are not likely to push up demand and hence prices.
What lower rates will do is make it easier to service loans, and as history shows, people tend to use lower rates to boost their mortgage repayments. Cheaper home loans may help to boost spending in other areas, and so benefit the wider economy. Currently, bad residential mortgage loans are at historic lows, which further reinforces how cautious and conservative this market is.
Henry &amp; Murray
In 2010 we had the Henry Review of the Taxation System. Now we have had the Murray Review of the banking system, and it appears that 2015 will at last be a time to act. The Murray Review was wide ranging, but areas impacting superannuation, competition and the taxation system may hold particular focus for the residential market.
While an increase to the GST does not look to be an immediate prospect, the reality is that an increase in the GST would lead to almost irresistible pressure to reduce other taxes, such as stamp duty, which for NSW has delivered a wind-fall in revenue this year.
Already the Federal Government has signaled such a structural change is not possible, given the state of the Federal budget.
However, the Murray report does create pressure for tax reform, that may well involve changes to negative gearing and how superannuation is taxed. Changes here would impact the residential market. Buyers would, of course, welcome a reduction of stamp duty, but any changes to negative gearing could cause investors some pain.
The growth in self managed super funds, and the flow of funds into property, in part highlight the sensitivity of this sector. There are some concerns that over-regulation could have the long-term affect of reducing the pool of savings people can access in their old age.
I think there is a natural tendency for many people to be anxious to manage the fate of their own investments, and so property will remain a popular choice with this group of retirees.
While the banking and tax systems have been under the spotlight, I wonder if there is room in the housing and development market for even more creative forms of finance?
Peer to Peer lending is a new financial tool that is only starting to emerge with some areas of personal finance. Could such ideas spread to the housing market? Could we one day see a Bitcoin revolution in housing finance?
Outside of these policy areas, supply will remain a key issue, supply in some markets is still to catch up with demand, and so this will keep pressure on prices, but this is not a universal trend. Investors are also less geographically focused on their own backyard, and so capital will flow to the stronger markets.
For developers, another emerging reality is that development sites have increased in value and demand remains very strong and competitive. Eventually, high site costs have to be absorbed into the final cost of apartments delivered to the market.
This article continues on the next page. Click below.
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Infrastructure &amp; Planning
In 2015, there needs to be an acceleration of infrastructure delivery, moving from what can at times appear to be endless planning.
Major projects are now more visible across Sydney, for example, and urgency might accelerate as both the State Government and Federal Governments look to election in March 2015 and early 2017 respectively.
In any election setting, activity on the ground is what counts. Activity means jobs, and delivery of infrastructure is an important goal as construction investment in the mining industry continues to fall.
However, beyond any political will to accelerate the delivery of infrastructure, the other reality is that values and demand are also impacted as areas associated with these works become more attractive to buyers.
Across Sydney there’s now a growing list of major projects underway including the South West and North West Rail links, the light rail to the Inner West already in operation, and the CBD and East light rail, plus the West Connex. Areas near these projects will see further growth in the demand for project sites.
The NSW state Government has also now released its vision for Sydney in an expansive document, <a href="https://www.strategy.planning.nsw.gov.au/sydney/" target="_blank">A Plan For Sydney</a>. The plan includes an important step as it applies to the 41 local government areas and sets up a new body to deliver the vision. Planning issues are always central to the delivery of new homes and apartments, and so it is to be hoped that the policies outlined in the document become a reality.
Quality To Improve
Finance, taxation, infrastructure and government policy are all factors that impact the residential market, but in a more immediate way, there is also a continued trend towards an ongoing improvement in the design and quality of projects.
As buyers approach the apartment market more as a long-term home, and investors also look for quality, we are seeing some inspirational new projects emerge.
This quest for quality and innovation will continue throughout 2015, as will demand for projects with access to established local services and facilities, including transport.
The market in 2015 looks complex than it did this time last year. The current bull run has been with us since mid 2013, so there is a need to remain alert, as possible changes to interest rate settings and taxation policy may yet hold surprises. The resilience of the local economy will be key.
To read Part 1 of Peter Chittenden's 2015 outlook, <a href="/expert-insights/buying/the-residential-property-outlook-for-the-year-ahead">click here</a>.
 
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pchittenden-eLqUUC8TWW

My residential outlook for the year ahead: Part 2

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GUEST OBSERVER
In December, I was happy to be involved in the launch of a new Gold Coast project, The Beach Apartments At Broadbeach.
<a href="/news">Broadbeach </a>is easily one of the best locations and most desirable neighbourhoods on the Gold Coast, and since the launch over 40 apartments, with a value of $20m have already been sold.
This is the only off-the-plan project of its kind, and I think for a number of reasons it represents a turning point for the Gold Coast apartment market. The Beach offers the sort of combination that many buyers look for, headlined by a great location, value for money, with a quality developer and builder profile and a reasonable expectation for an up-side when the project is finished.
The Gold Coast has a interesting history, its been the location for lots of activity since the 1880’s when the then Queensland Governor built one of the first holiday homes in the area.
The 1930’s saw quick growth when cars became more common and from around the 1940’s the term ‘Gold Coast’ started to come into common use and the growth trend continued strongly after the Second World War.
In the 1960’s, high-rise holiday apartments made a lasting impression on the area, as did the big changes to the skyline in the 1980’s with the Japanese lead investment boom, along with the opening of the areas well-known and legendary theme parks.
Now the Gold Coast is taking on a new level of glamorous sophistication, as evidenced by the new generation of mega towers, a mature lifestyle offer and the energy of the forthcoming Commonwealth Games will be a welcome bonus.
Among interstate buyers, Broadbeach already has a well established reputation as the Gold Coast’s premier apartment location – given the suburb’s proximity to the beach, the new light rail network and surrounding lifestyle amenities.
In combination it all comes together to deliver a lifestyle offer that is clearly very appealing. The quality of apartments like The Beach has improved in leaps and bounds to accommodate a more demanding and design, quality driven buyer. It’s a trend that developers and their architects and builders are aware of and are responding to with some really appealing product. That’s exactly where I see this project rightfully positioned.
I have shared a little slice of the Gold Coast’s history because I think its important to understand how Australia’s sixth largest city has changed. It continues to evolve, but can sometimes be in the shadow of it’s larger sister cities.
Today, the entire area, including the Tweed, is home to more than 605,000 people, while the 5-year growth rate sits at around 11.2%.
Leading areas of employment are perhaps more diverse than might be expected and spread evenly across three sectors, retail trade, health care and construction. The area’s non-residential building approvals ranks fifth out of all Australian cities and in combination this creates a stronger and more robust local economy.
Combined these figures do I think clearly show that the local economy has moved on from the bikini clad ‘Meter Maid’ image of the past. As an investment destination the Gold Coast deserves to rank well. The potential growth outlook looks set to continue over the next three years. The weaker Australian dollar will also help the area, as locally based tourism regains strength and at the same a time international visits are also on the rise.
A Strong Value Proposition
I also feel the project is perfectly timed and that overall the Gold Coast is currently an ‘undervalued market’. It’s one of the few markets on the east coast that you would have to consider as a buyers market. The local market has been one of the last areas to feel the impact of boom conditions that has swept across Sydney, Melbourne and Brisbane. When you look at reasons to buy here, above all the area represents outstanding value.
In particular, for those buyers who might see themselves as priced out of some areas in the other cities. That applies equally to owner-occupiers and investors. But then it’s also good to keep in mind that Broadbeach is also a stunning location. The overall development taking place in the area is impressive and so there’s always going to be strong demand for short term holiday leasing.
Those buyers looking for a lifestyle asset get a bonus out of buying into The Beach Apartments.
Already according to our local sales team, since the December launch there’s been strong demand out of Sydney and Melbourne from buyers looking at possible future retirement to the area in five or so years time. Understanding the areas appeal, Sydney, Melbourne and also Brisbane families that are regular Gold Coast visitors have lead the enquiry on the premium ocean view, high floor, 2-bedroom apartments.
These buyers are looking for a toe-hold in the area that’s both a good investment and a semi-permanent holiday home, and again this is where the position and aspect of the project clearly come into play. Almost 70% of the 219 apartments will enjoy ocean views. The apartments are affordable with good-sized 1-bedroom apartments starting from $330,000. With sales currently sitting around $7300/sqm, buyers can reasonably anticipate capital growth before and after completion.
Tony Hazell, chief executive of Anthony Moreton Group, says local Gold Coast residents looking to downsize and enjoy the Broadbeach lifestyle have also been attracted by the two year settlement which gives them time to plan for their next move. Again this appears to be ideal timing, as the wider market on the Gold Coast starts to look more assured.
I agree with Tony that the Gold Coast is currently the most undervalued property market on the east coast of Australia. Over the last two to three years there has been a decline in stock of new beachside apartments, and this has begun to put upward pressure on values and pricing.
Even if we see a position where some of the activity of the last 18 months starts to slow in Sydney and Melbourne, in those markets prices are not going to retreat, current price benchmarks are set to remain and continue to increase and so buyers will be looking further afield.
On the Gold Coast the emerging demand appears to indicate that buyers recognise that the market is now in an upward cycle. There are strong expectations that by the time The Beach project is due to settle in early 2017, the value of new property will very likely have improved significantly from where we are today.
The Gold Coast has always been seen as one of Australia’s most desirable holiday destinations. The market has adapted well to the shifting demands from visitors, and despite some bumpy patches it’s a very resilient market.
I suggest that with projects like The Beach Apartments and the recent completion of several major mega-high rise projects, that we are seeing a new depth of maturity in the market, which is underscored here by the perfect location and value for money.
Peter Chittenden is managing director for residential of Colliers International.
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Bumpy, but resilient, the Gold Coast's Broadbeach has strong drawing power: Peter Chittenden

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For me and for my team the marketing of new projects is always an exciting time and The Mills Holroyd is one of our current developments that I would like to share.
It’s a good example of what style of apartment project is proving popular in an area set to see almost spectacular growth over the next decade centred on Parramatta.
A few months ago I started to look at projects based around the idea Great Foundations, to examine new projects mainly from the buyer’s viewpoint, concentrating on what creates buyer interest and currently meets their requirements.
Reflecting shifting lifestyle choices buyers today have access to lots of new projects offering many different options. This trend now attracts a much more versatile and varied demographic of buyers which has been our experience with The Mills.
I think it’s a good sign of the maturing of the market when a project attracts a wide cross section of buyers. The Mills has a mix of 1, 2 and 3-bedroom apartments, all with parking and storage and this mix is always popular. The Mills has gained solid support among buyers ranging across younger first time to more established buyers looking for a lifestyle change but wanting to stay close to the area, and close to all of the big-ticket projects that will be focused around Parramatta.
Location Gets a Big Tick
For The Mills, this location is a real bonus as it offers some of the best connections you could want to a big choice of locations mainly via the M4. The Parramatta CBD is about 10 minutes away, Homebush/Olympic Park is 20 minutes, Penrith 30 minutes, or a little further afield the Sydney CBD is also about 30 minutes, or escape to the Blue Mountains with Katoomba just over an hours drive.
Holroyd and anyone who will be living at The Mills also has easy access to the City Rail network with a choice of stations but mainly with the convenience of Merrylands Station. So this is a great location, and the retail facilities are also terrific centred on Merrylands Mall and Westfield Parramatta, Merrylands Mall is within walking distance.
The location would be playing an important part in attracting the type of demographic mix I have detailed and as might have been expected location remains key in its appeal to both owner-occupiers and investors with a 50/50 profile. And the existing infrastructure is also key, as it is across the Sydney region and this always helps to drive the continued demand to well-located in-fill projects.
Attractive Price Options
With the location and the range of apartments as among the key foundations, in any market price is a big factor. In Sydney there’s been a suggestion that prices are possibly running ahead of market expectations. The Mills offers, and I think this is an important distinction, a range of price points with 1-bedrooms starting just below $500,000. The 2-bedroom apartments, which are still the most in demand range from $600,000 and the 3-bedrooms near $700,000, these are competitive prices when combined with the quality of finishes here. The Mills is being sold off-the-plan, which is still a very popular way of entering the market and the building is expected to be complete late in 2017.
With all new projects there will understandably be a focus on the project team, and I think it’s important to highlight the team with the key focus on the developer and the architects.
The Landmark Group who is a wholly Australian-owned property development company whose track record is built on more than a decade of solid experience, is developing The Mills and their key focus remains on projects in Sydney’s most desirable areas.
Marchese Partners is one of Australia’s leading architecture practices specialising in medium and high-density residential projects for over 20 years. Their portfolio includes Top of The Town, Republic, Paramount, 185 Macquarie Street and the Bondi Icebergs and they also work internationally in the United States.
The Mills will deliver to buyers a number of what are now seen as essentials when looking for apartments that are not anchored to a central CBD location. This will always include the convenience of transport and shopping and in some areas access to a range of schools. Location and quality have been the clear drivers of demand here.
The Mills location and diversity of product type has appealed to a range of buyers from young homeowners through to families with children and retirees – generating a genuinely diverse community at the centre of a rapidly growing region of Sydney.
The Big Picture
It’s always a good idea to look at how any project like The Mills sits with the local population and according to the last census in 2011 the population of Holroyd City was 99,163 people and on a growth trend with an increase of 11.5% from the 2006 Census and in the 2016 census that trend will have accelerated. By 2031 it is expected that an additional 30,000 people will have moved to the area. And most will be living in medium and high-density housing.
The latest census also showed that 49.5% of locals were born overseas, interestingly some 27% of this population group arrived in Australia after 2001. The area’s median age is young at 34 years and as might be expected Holroyd is home to many children, with a decreasing senior community.
Of particular interest to local property investors is the fact that Holroyd City is as a major employment hub for Western Sydney, with approximately 31,188 people in jobs in the area. There are according to local council figures an additional 8,000 jobs projected to be created by 2031 and the local economy is estimated at $13.31 billion. The largest business sectors comprise of manufacturing (54.4% of total city output), wholesale trade (11.1%) and transport and storage (7.8%), which looks a positive mix of activity.
 
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Great foundations at The Mills, Holroyd: Peter Chittenden

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If you’re currently living in an apartment, planning a purchase or have an investment apartment, it’s important to know that the next and final stage of the big review of Strata Schemes in NSW has been announced.
Draft regulations detailing the backbone of the changes, have been released by The NSW Government to support the wide ranging strata reforms that were passed back in late October 2015.
The Strata Schemes Management Regulation 2016 and the Strata Schemes Development Regulation 2016 that underpin the new Strata Schemes Management Act 2015 and the Strata Schemes Development Act 2015 are due to come into effect later this year.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
The regulations contain a lot of detail and the key points contained in the regulations include:
The provision to accommodate modern technology for virtual meetings and electronic voting which many time poor people will appreciate, and the changes might also encourage more active involvement by owners.
Another regulation and a change that has attracted a lot of comment are the provisions for the documentation and procedures for the collective sale and renewal reform that enables a minimum of 75% of owners in a scheme to jointly agree to sell or redevelop their scheme. As possibly one of the biggest changes, this area needs careful consideration.
There’s also a draft model by-laws on a wide range of issues such as pet ownership and smoke penetration.
Draft Strata Schemes Management Regulation 2016 
The proposed Regulation is extensive and it aims to support strata communities in a number of ways including some of the following summarised key points:
Protecting a scheme’s assets by:
<ul>
<li>Outlining what the developer’s maintenance schedule should contain.</li>
<li>Providing a ‘common property memorandum’, which owners could adopt.</li>
<li>Setting out how the new building bonds for new strata buildings would function.</li>
</ul>
Helping schemes to operate effectively by:
<ul>
<li>Allowing for different types of voting procedures.</li>
<li>Specifying that voting records, including electronic voting records, need to be retained for 12 months only.</li>
<li>Setting out the process for mandatory Fair Trading mediation.</li>
<li>Establishing that certain financial matters would not require an owners corporation meeting.</li>
<li>Setting out clearer approval requirements for renovations to make it easier to get basic renovations done with no, or minimal, approval.</li>
<li>Structural renovations would continue to require approval by special resolution or as set out by the strata scheme in a by-law.</li>
</ul>
Clarifying and reinforcing key accountabilities by:
<ul>
<li>Providing procedures to elect members for the strata committee, including tenant representatives.</li>
<li>Setting out additional matters and documentation requirements for the agenda for the first annual general meeting.</li>
<li>Determining the insurance requirements for schemes.</li>
<li>Clarifying that owners corporation responsibilities could only be delegated to a strata managing agent or strata committee (formerly called ‘executive committee’).</li>
<li>Outlining requirements for window safety devices.</li>
<li>Determining how schemes could set and enforce rules to limit the number of adults that can occupy a bedroom. An important and sensitive area for many buildings.</li>
<li>Listing the offences that may result in penalty notices.</li>
<li>Setting out the content that should be included in:
<ul>
<li>Payment plans for late strata fees,</li>
<li>Statements of key financial information,</li>
<li>Receipts issued by treasurers of owners corporations.</li>
</ul>
</li>
</ul>
The Regulation also include details such as:
<ul>
<li>Accountabilities to prevent financial mismanagement.</li>
<li>Continued provisions allowing lot owners and prospective purchasers to inspect financial and other records.</li>
<li>Requirements to ensure that building assets are better maintained.</li>
<li>The approval process for owners seeking to make changes to their lot, and as apartment buildings age this becomes an ongoing issue for many Schemes.</li>
</ul>
Big Issues – Time To Comment
A fully detailed Regulation Impact Statement outlining the objectives and detail of each proposed regulation is easily accessed from the Fair Trading website.
It makes good sense that all stakeholders be encouraged to review the drafts and suggest improvements needed to the draft regulations. This should help make sure that as far as possible the new regulations work as effectively as possible. Important when you consider the review has taken decades to come around and years to put into force.
The Government has allowed for written submissions on the regulations to be made up until 27 May 2016, which is a tight timeframe, however we should all make our views known.
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Strata reform regulations the next step: Peter Chittenden

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We read and hear a lot of comments about how expensive Sydney real estate is, and we have had some very expensive homes sold here plus some exclusive apartments, although we are yet to reach the price levels associated with some high-end apartments in cities like Milan, Dubai, New York and London.
Many of these apartments, designed to appeal to the super-rich and the fashion savvy buyer are promoted with high-end brands like Baccarat, Armani, Moschino, Missoni, Dunhill, Ferrari, Bulgari and Versace
Baccarat Residences in New York is one example where you can buy a pied-a-terre or if you have big bank balance a ‘palace in the sky’. Baccarat offers features like dramatic living spaces with twenty-foot ceilings but it’s the finer details that add up to a mouth-watering selection of features in these stunning apartments.
Designer Interiors
It all starts with interiors by one of New York’s best know interior style whizzes Tony Ingrao who’s an Architectural Digest 100 designer, with touches like floors that are six-inch white oak planks finished with custom-designed ebony-mahogany stain and entry doors with Baccarat crystal handles and Baccarat lighting fittings the foyers.
These apartments come with Siematic Kitchens including granite bench-tops appliances by Sub-Zero (think $7,000 – $10,000 for your basic fridge from these guys) and a local favourite Miele.
However I am keen to share a few of the added features buyers can access here and this starts with the fact that each residence is equipped with specific technology designed to allow convenient access to all of the associated luxury hotel services 24/7.
But there’s lots more, starting with a private residence’s entrance foyer with a dedicated entrance and private concierge desk and there’s the luxury hotel lifestyle services and amenities accessed via your own touch screen or from a tablet and mobile devices from anywhere in the world.
Of course, the concierge, maintenance, room service and security staff is all on call 24/7. And the list goes on to include dedicated residential housekeeping, child care, personal shopping, personal training, pet and plant care, and floral delivery. Plus when it comes to work (necessary I am sure to pay the service charges) we have business support on hand like couriers and postal and package services, newspaper and magazine delivery.
Feeling a bit peckish? Then you will never go hungry and never mind rushing to the local take-away because this building offers a range of catering options, plus event-planning and in-home chefs, and priority access to event spaces and meeting facilities in the adjoining hotel.
The apartments are also designed to allow room service or housing keeping services to be very discrete, with individual service entries so that your personal chef or florist can come and go in the most inconspicuous way, clearly showing great attention to detail at the design stage.
Still the list continues with custom bath and personal care products crafted by Baccarat and priority access to all hotel facilities, like restaurant reservations, sometimes difficult in New York, the Baccarat spa, pool and fitness centre.
And given the luxury of your surroundings, there’s no need to venture outside? Residents also have private shopping, including priority custom design and production of Baccarat products. But if you do venture away from home, possibly by private jet then there are extra hotel privileges waiting for you in Baccarat Hotels worldwide in places like Paris, Moscow and Tokyo.
But tucked away in the marketing material is a little note that ‘some services are available for an additional fee’ and we can only guess what they might be, still if you’re living here in such luxury, who really cares about the occasional service charge even with some annual fees going well beyond $53,000 a year and that’s not including little extras like home dining or spa entry! It will be exciting for local buyers when this style of apartment luxury spreads to Sydney or Melbourne.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Brand power – luxury apartment living at any price: Peter Chittenden

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Earlier this year, I started a conversation <a href="/expert-insights/buying/the-foundations-of-a-great-residential-project">here</a> about what in today's market contributes to the great foundations of an exceptional residential development.
From the buyers' perspective, it's a topic worth continuing, because while there are always lots of property options there's also almost endless daily market commentary.
It’s also impossible not to notice that this commentary is starting to become increasingly polarised. And so I think it’s constructive to suggest that if buyers concentrate on some core elements or great foundations, then despite shifting market conditions, a project that 'ticks the boxes' will always be a good choice; a good home or investment.
I find the best way to do this is to take time and look at individual projects. While I continue to see up-side in the Brisbane market, it’s a project like Cornerstone Living in Brisbane (pictured above) that’s a great example. Not so much a case study, but more a real time example of a solid opportunity.
The Brisbane market might be somewhat in the shadow of Sydney and Melbourne, but, as I detailed <a href="/news/qld/brisbanes-growth-will-fundamentally-change-its-residential-market">back in August</a>, it’s a solid emerging market with great potential, currently offering exceptional value.
So let’s take a closer look at Cornerstone Living and see just why it has great foundations, and as such is an exceptional long-term project.
Markets Never Stand Still
As we look at some key features of Cornerstone let’s also keep in mind that market conditions are always changing, prices are not static they do not always rise, and despite being at sustained and historically low levels, interest rates will eventually increase and supply levels will shift. However by strictly checking the fundamentals of a project, a buyer’s choice can be reassured and it’s possible to move with confidence.
Before looking at my selected Brisbane project, I want to restate the common factors making for great project foundations. From buyer feedback and experience they are usually centred on a few common factors such as being infill locations, the use of existing infrastructure, environmental credentials and sustainability.
Other key points include easy access to open space, the quality of design, good communications, the appeal of mixed use developments, the liveability of the development and finally sales appeal, which is one test that Cornerstone Living has in its first stages already easily past, as the first release stages one and two are now sold out.
This article continues on the next page. Please click below to continue.
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Infill locations
In every capital city and many regional centres, infill locations have been in favour with planners and buyers now for at least a decade, and it’s the same with Cornerstone Living. Consolidated Properties and Hutchinson Builders are building this long-term project, located some 12 kilometres from the Brisbane CBD and just 1.5 kilometres from Sunnybank Plaza.
The site also has easy connections to the major facilities of Mount Gravatt and via the Pacific Motorway to the Gold Coast.
Infill sites are usually (but not always) blessed with access to existing infrastructure, and planning is required to ensure these facilities are not over-run by an influx of new residents. As a key foundation that buyers now look for, we need to think of the full spectrum of schooling and educational facilities from pre-schools to university and for Cornerstone Living that starts with a 10-minute walk to some local schools and an easy bus connection to Griffith University Nathan Campus.
A five or 10 minute drive to get a carton of milk is not anyone's idea of convenience, so 400 shops, cafes, restaurants and services to a regional centre level give the project a better than good start.
The $600 million 10 hectre master planned community site spans a 10 year development period and will deliver 1200 dwellings.
It’s a planing initiative of the Brisbane City Council and as a classic infill site is aligned to existing train and bus services. This combination and the use of existing infrastructure gives the location its core appeal and like other such locations sustains value and buyer support.
The infrastructure is a long-term benefit that always adds value as urban centres like Brisbane scramble to create new services.
Design
In today’s market I think that location, price and design are the big three standout considerations for any buyer or developer. The key design aspects at Cornerstone Living have a lot to do with the sub-tropical environment, the demands of modern living and a clear goal to ensure that the development would fit with the existing urban landscape. It’s an important aspect of infill projects that is not always easy to achieve.
Sales appeal
This is the big test, which in some markets is starting to be taken for granted, but it should not be. Cornerstone Living has great sales appeal and at this early stage in the projects life the architect-designed homes consisting of one, two and bedrooms offering houses and apartments have been designed appeal to varied markets. These include first home buyers, young couples, families and retirees which are increasingly seen as the benefits of multi-generational living.
Good value homes for a wide cross section of buyers, first class community services – add to the appeal of an area in Brisbane which is being rejuvenated – and Cornerstone Living is being integrated into an existing and well-established local community a great foundations that buyers should always be looking out for.
Next I will look at Cornerstone Living’s design, the projects environmental credentials, the use of open space, leisure facilities and employment opportunities and the always-important factor of communications, which from every point of view are always of critical importance.
Peter Chittenden is the managing director for residential at Colliers International. Colliers International are project partners and the sales agents of Cornerstone Living.
 
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What makes great foundations for a property investment

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For what seams a long time we have been in the midst of a debate about the impact of offshore investment into our domestic residential property market, both private buyers and now increasingly developers. Revelations that FIRB regulations appear not to have been enforced for some years has as fuelled the idea that offshore buyers are driving up local prices and as a result locking some buyers, in particular first time buyers, out of the market.
However I think it’s important to acknowledge that this is not a new trend, offshore investment into Australia has been going on now for a very long time. Currently there appears to be a particular focus on Asian buyers, and this was a topic of a recent breakfast presentation I was involved in.
The breakfast presentation was hosted for a very interested audience by Coco Republic at their Sydney flagship store. The event has helped focus my views about this important debate, and so I am recounting some of the key points from that presentation.
There’s a Lot of Wealth in Asia
We need to remember that these buyers have very deep pockets, in some cases very deep and this extends to high net worth individuals (HNWI). While Asia is generally considered to rank third in number of HNWI after Europe and the USA, Asian numbers are growing rapidly, and will soon overtake the USA. Wealth also creates mobility and Asian buyers have always been happy to travel and invest in other countries, this mobility is often overlooked.
For these wealthy buyers as well as for a rapidly growing middle-class across the region, Australia is seen as a safe investment destination that also comes with a great lifestyle. Political stability and our property laws are also positives. Because of the current restrictions most offshore investment is naturally focused on new apartments, but within that market activity is generally spread across diverse areas, it’s not only CBD centric and I think that investment growth should be welcomed.
To say this is pushing up prices is too simplistic, prices are increasing, but it’s because of a combination of factors. Above all it’s tied to supply problems and poor delivery of infrastructure to enable a free flow of new stock and problems with supply are not new, we’ve know about problems with supply for years.
The supply side is also now being influenced by the direct development involvement of Asian investors into our markets, and so they are helping boost supply.
What we are seeing is the offshore investors/developers being very competitive in the market. They move quickly, they bring new ideas and we have to also keep in mind the impact of the local currency. Local and state governments with a development focus are looking for investment and many Asian investors have a critical level of expertise and access to capital that will only see this trend strengthen as more sites are acquired.
Lifestyle a Key Factor
One key point I made during my presentation is that offshore buyers are not coming here to play cricket in the streets, they are anxious to engage in every aspect of society and they take a long-term and very considered view of what and where they buy. Many buyers also have long term existing family connections here.
The flow of Asian buyers and the number of Asian students is one key example that has had a marked impact on some areas of the market in Sydney, and Melbourne and other cities. Big student numbers help drive demand for accommodation, and Sydney’s Broadway/Ultimo area is a dynamic example.
Largely because of student numbers and associated development, the area is heading for a true ‘downtown’ feel with 7-day a week activity. Because of its direct impact on residential property, it’s worth looking in more detail at the impact of the education sector. Figures show that in 1994 total student numbers were less than 100,000, by 2000 that had grown to 150,000.
However in 2009 numbers last peaked at around 620,000 students, numbers then fell away until 2012 and but since then numbers have been on the increase again and in 2014 were heading back towards 590,000, and the biggest sector is students in higher education. Although there’s growth in numbers also attending, and paying to do so, at the primary and high school level. There’s a direct link with more offshore buyers as some apartments are purchased for investments to cater for this demand, or parents buying to directly house their kids.
I think from a marketing perspective this has helped create more vibrant areas, and is a progressive development across several sectors and it is a big boost to economic activity; it’s a good example of why offshore direct investment into residential property is a positive trend. Education is a key part of the service sector economy and growth is required to help re-balance the economy as we exit the mining boom.
Helping to Revive the CBD
And while we have a strong in-flow of funds this is also helping to further shape core CBD residential markets, and is driving demand that will see more and more B &amp; C grade office buildings converted for residential use.
As the CBD evolves it can also be seen that offshore buyers are also having an indirect influence in a more subtle way. For example planners looking to change our local dependence on cars can have apartments with no parking and they can influence demand and size of apartments, all deriving from the fact that offshore buyers take a different view of these two sometimes touchy areas for local buyers, this helps to create diversity of product and supply.
This trend of re-developing secondary office stock will go on and motivate demand for new office inventory for example in Sydney in areas like Barangaroo.
Such investment activity has a deep and powerful impact on our cities, it helps make sure they are ever more dynamic places, and that’s important if Sydney’s continued ambitions of being a major international city are to be realised. We cannot have that ambition on the one hand, and then on the other restrict or shackled offshore buyers, we have to have an open (if regulated) approach.
We are Not Creating ‘Little Asia’
A question I was asked at the Coco Republic event was centred on the idea that some buildings or projects might be focused just on offshore or Asian buyers.
In reality this is not the case, really it is just the opposite, as might be expected in an open market, buildings vary with the buyer profile they attract. Just what might be seen as Asian facilities I am not sure, but as far as design and interiors and common areas are concerned, projects are being built to meet the general demands of the market, we are not setting out to just accommodate Asian buyers.
What is true is that just like any local buyer, offshore buyers do put a lot of energy into selecting the right home or investment. They don’t just rush in and buy anything. They may appear to be dominant in particular areas but this is more as a result of where supply happens to be. Most offshore buyers are astute buyers – they express 5-10 year plans, and re-sale is the key concern.
Like all investors, they also focus on the potential of capital gains in later years and so they look for apartments that have strong appeal to the local market, after all it is often said you can’t exactly pack up an apartment and ship it off in your luggage on the next Qantas flight.
There are some location specific buyer profiles, but again that is not a unique factor, local buyers will be attracted by access to a particular university or school or shopping centre or business park, the same applies to offshore buyers.
I think it’s also worth acknowledging that the big four banks are looking at buyer profiles and they can put a cap on lending to the sector, however offshore buyers can access external funds.
ATO Takes on Part of FIRB Role
The recent changes to FIRB merit some comment. From my experience over the last few months, the government changes have not had any significant impact. Most buyers accept that there is a need to enforce the current laws, the ATO is now checking and perhaps it’s more a failure of policy and not an attempt to contravene the laws that really reflects market sentiment.
As I suggested earlier, the rule of law is important to offshore buyers, this helps make our market attractive alongside the fact that title is secure, here in Australia. I see constant evidence that these buyers never take anything for granted and so they are happy to work within the rules.
The Federal Government is also taking up the benefit’s Free Trade Agreements, and Significant Investment Visas as ways of boosting economic activity and investment, and so I do not think that residential property can sit outside these sorts of policies.
Suggesting that offshore buyers are the main cause of higher prices and tight markets is counter productive. Offshore buyers are looking for a full cultural involvement with Australia and that extends beyond the apartments themselves, they go on and buy furniture, cars and services and so that filters into the economy. If you look at the education sector again, and were to remove foreign students then the sector starts to look pretty poor. I think offshore buyers can do much the same for the housing market, helping to sustain activity and also directly boosting supply via direct development and sizeable investment as is already happening.
Given the existing FIRB rules, it is not reasonable to suggest that offshore buyers are having any more than a marginal impact on the local market, and while that may be more apparent in some pockets, I think it’s a distraction from the failure of long-term policy, that all levels of government need to take responsibility for. This include the chronic neglect of infrastructure, neglect that we are now being reminded of almost daily.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au" target="_blank">here</a>.
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Offshore investment is essential: Peter Chittenden

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As coincidence would have it I recently had a conversation with Dr Hazel Easthope, Senior Research Fellow, City Futures Research Centre UNSW following the news last month of yet another delay being announced in the now long over due review of NSW Strata Title legislation.
It has been confirmed that the Strata law reforms in NSW are to be delayed (again) with changes now not due to come into force until July next year. That’s another 18 months, which for such an important area of reform appears almost to be neglected.
The plans have been delayed several times since being announced in 2011. The reforms to the state’s 50-year-old strata laws are now urgent, but this message appears not to being heard by the State Government. In part a series of ministerial changes have hampered the process, but concerns among apartment dwellers are on the rise, and their concerns are justified.
The research being undertaken by Dr Easthope is looking at the experience of people living in strata titled property. Her work will look at details of people and seek to learn about their experiences of living in an apartment, and what they like and dislike about strata tile living. How strata title impacts the feeling of ‘home’ and how the quality of building management impacts residents. It’s notable that the quality of building management is now a key issue for many apartment buyers and investors.
The aim being to better understand the needs of different people living together in strata schemes and what can be done to make them more attractive places for everyone. The survey is due to be completed by 30thJune 2015 and I look forward to seeing the results.
The survey can be accessed at <a href="https://www.be.unsw.edu.au/research-centres-and-clusters/city-futures/about-us" target="_blank">City Futures</a>, and along with Dr Easthope I will keep readers up to date on the survey and related topics.
 Also in a national survey on strata-titled property conducted by Queensland’s Griffith University, the author, Professor Christopher Guilding has named building defects as the main challenge for apartment owners, which was also identified as the biggest issue for strata lawyers, and in the top five by resident building managers.
As a result the SMH recently reported that Professor Guilding is calling for a federal government inquiry about the issue, which must also put even more pressure on the NSW review process.
Professor Guilding will be releasing the results of the Inquiry Into Key Challenges In Australian Strata Title in September at the launch of the biennial national conference Strata and Community Title in Australia for the 21st Century.
The work by Professor Guilding and Dr Easthope appears very opportune and may well be central to helping to maintain the quality of life for the many apartment owners and future buyers across Australia and I am sure there will be a lot of valuable information and insights to share.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Yet more strata legislation delays: Peter Chittenden

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This is my final post looking at what figures from the Rental Bond Board tell as about the make-up and direction of the rental market, in Sydney and across NSW. While supply of rental accommodation has been below population growth trends, the numbers are now catching up and the popularity of investing in residential property has seen a big increase in supply, and this is slowing rental growth.
Rental Growth Slows
The general trend of median rents across the metropolitan area between 2010-11/2013-14 shows that growth in median rents has been slowing. In 2010-11 the increase was 3.1% and in 2011-12 it was 4.3%.
However in 2012-13 the figure fell below 4% to 3.1% and in 2013-14 the increase was 2.9%. Recent figures published by Corelogic RP Data and the ABS both show a slowing in rental growth with Corelogic reporting an increase of only 1.5% over the past 12 months. The ABS CPI rental series notes an increase of 2.1% over the year to March 31. Both these results confirm the trend noted in the Board’s figures.
Supply Increasing
One key factor that is putting downward pressure on rents has been the big jump in supply in NSW over recent years as more investors look to residential property, driven by falling deposit rates and the availability of cheap finance. The number of bonds held by the Board clearly shows the trend, in the following table:
 
Year:              Number of Bonds:          Increase:
2008/09          643,518                        ^8028
2209/10          648,142                        ^4624
2010/11          662,756                        ^14,614
2011/12          680,150                        ^17,394
2012/13          703,158                        ^23,008
2013/14          726,337                        ^23,179
The upward trend has been most notable since 2012/13 with some 46,187 new tenancies added to the NSW rental pool and the trend is sure to have continued into 2014/15.
Invest in Quality
As more stock becomes available, I suggest that investors, just like owner-occupiers should invest in quality and do their research to help ensure that despite more supply, they secure good opportunities in popular rental locations.
I suggest that no matter how strong investment demand is, you can never beat quality and with banks taking a tighter line on investment loans it’s even more important. The key items to keep in mind are by no means new, but it’s sensible non the less to keep them in mind, so I suggest a simple check list, in particular for off-the-plan buyers would include the following items to tick off.
Firstly try to get in early and learn all about the area where you might invest. Understand the quality of the project, if the finishes and fixtures appeal to you personally, then they will also be acceptable to tenants, and if there’s a competitive market this will be an important consideration.
Check that you can secure all of the finance for your investment, and always include the added cost of stamp duty and legal fees, plus take into account the ongoing costs like strata and management fees. Visit the project location, at least a few times, even more important if you’re going to invest outside of your home city. Do your research and gain an understanding of what sort of supply pipeline and tenant demand there might be when your project is complete. These are simple ideas, and I suggest the same even when buying an established property, because as supply continues to increase and we possibly see rents moderate, these factors will help secure tenants.
The trends come from a very big pool of tenants as the Rental Bond Board looks after what might soon be approaching 750,000 tenancy bonds across NSW, and so the figures are a very reliable reflection of the wider rental market.
Given all of the activity across our property market in the last 12 months the Board’s report for 2014-15 will I am sure make very interesting reading.
To read the first part of Peter's two-part post click here.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Rental trends supply heading upward: Peter Chittenden

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In February the Reserve Bank Governor Glen Stevens admitted concern over the Sydney property, with expectations that the median house price ‘may hit $1 million’ by the end of the year. We all know that prediction has already been realised and last week Sydney’s median house price just crept past the $1,000,000 mark.
Since February there has also been an ongoing discussion about the impact of investors on the marketing. Investors have been very active buyers and this shows up in the demand for finance with investors active across the established and new home market, and also buying new apartments off the plan. Among these buyers there are big numbers of SMSF.
With investors being seen as dominant in the market there are now strong concerns being expressed that they are in part (along with offshore buyers) shutting out first home buyers, and with the advantage of very low interest rates possibly over-heating the market. So much so now that the banks and banking regulators have started to make it more difficult for property investors (and it must be said for offshore buyers) by taking a number of steps. These include higher interest rates and bigger deposits for investors and a restriction of loan funds that the banks allocate to this sector of the market.
Taken as a package these measures look like a strong reaction aimed at investors. In accessing if these steps are warranted or not, I think we should firstly remember that property investors have always been an important part of the market, and that they are a very diverse group. This is not a sector dominated by the ‘rich and famous’.
Are Restriction Really Necessary?
Now that some investors will face additional hurdles I think we need to ask if this group is simply an easy target and will, for instance, the measures announced do anything to directly help first time buyers. This sort of direct intervention into the market is rare and there’s little doubt that it’s driven by the idea that the Sydney market and parts of Melbourne in particular, may be overheating.
However just targeting investors in isolation looks puzzling. Mainly I suggest from the point of view that this is as mentioned earlier it’s a very diverse group. Low interest rates and the search for yield are two factors and the flow of SMSF investment I think is also very much tied up in the continued debate over superannuation.
For this group property has always had special appeal because it’s seen as a stable and long-term investment. SMSF already have to comply with a lot of tough rules when they invest in property and so such investments do not really strike me as speculative, in fact just the opposite.
Are such targeted changes really well founded, because from a financial view point I find myself asking why is one dollar of investment better than or worse than another?
I would think that most investors are more than capable of paying their obligations than an owner-occupier when someone else is after all usually paying the rent. Historically it has always been rents and tenants demand that has acted to temper investor demand.
Prior to some of the banks last week lifting interest rates for investors, there was already evidence that increased supply of new apartments was starting to slow down rental growth, a trend that I had noted earlier [see posts June 17th-19th] when looking at 2-3 year rental market trends as reflected in figures from the NSW Rental Bond Board.
And so given the very wide range of factors at work in the property market there is I feel, a need to question why are the regulators and banks are interfering with market process in one very select area.
Appreciating that there are tighter controls also now being focussed on some offshore buyers both measures look like high profile and doubtless popular measures among some sections of the community.
However if the aim is partly to give FHB an improved chance to enter the market, then I suggest that direct action should be taken to approve more land release, ease some rules around apartments, like lifting height restrictions along with much more effort to deliver infrastructure.
While above all, the tax burden, both direct and indirect on homebuyers, should also be addressed as readily as other financial measures now aimed at investors.
This coming at a time when the suggestion of a higher GST would further disadvantage first time buyers without really substantial changes to crippling stamp duty which now stands at $40,523 in NSW on the median house price of $1,000,616. The really horrific fact is that the rates have not been reviewed since December 1986 when the median Sydney house price was $98,325 and this is despite price creeping or the recent price explosion, a fact that is simply a disgrace and shows government’s addiction to property related tax revenue. For any sort of reform this does make investors, and offshore investors look easy targets.
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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Throwing brick bats at investors: 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 internation 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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