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Just when you thought affordability was becoming a word of the past, I’ve unearthed another hard to believe story on the Gold Coast, alongside further evidence of the appeal of the local market as local demographics continue to evolve.
Our Gold Coast Team have just launched a new residential project located in the heart of Robina, on the doorstep of the thriving $2.5 billion town centre.
Robina is a classic and now very successful masterplanned residential community that has gone from strength to strength over the last two decades.
Perhaps best known as the home of the Bond University, Robina is now delivering the dream of the planners, it’s a thriving desirable community. Yes, it has access to great beaches and much more.
As a potential place to buy into the Queensland real estate market it offers a range of opportunities that will appeal to both future residents and investors alike. I also think that the development mix adds to the area’s appeal.
The choices are dynamic and importantly aim to meet the needs of singles, families, retirees and students across a variety of prices. Variety is important with apartments, villas, townhouses and detached homes.
While the Robina Town Centre is the focus of the area, there’s a direct train link to Brisbane. While employment is diverse across the Bond University, Varsity Lakes IT hub and now a brand new football stadium will also create economic momentum.
Robina’s history doesn’t extend much past the late 1980s, which makes the rate and scale of development impressive as it has matured into a business, medical, commercial and residential centre.
Robina has certainly proved to be centrepiece of Gold Coast development and with a strong future.
Picture of Robina courtesy of <a href="https://commons.wikimedia.org/wiki/User:TravellerQLD" target="_blank" title="User:TravellerQLD">TravellerQLD</a>/<a class="mw-mmv-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">CC BY-SA 3.0</a>.
 
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Robina has proved to be centrepiece of Gold Coast development: Peter Chittenden

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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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We tend to pay a lot of attention to the penthouse level of projects.  They attract our interest because they can be dreamlike and expensive, but we tend to pay far less attention to the ground floor, the street levels of projects.
They can be problematic spaces, and there’s nothing more 'depression' than a ground floor shop or office space with a faded for lease or for sale signs languishing in the window.
However this space is often the public face of a building, it’s the street cred, and the visual appeal of a building can be both adversely and positively impact by what happens at this level.
Ground floor space that is not used as residential accommodation needs to be carefully considered, and there are various options and I suggest opportunities to use this space. There are however particular hurdles that have to be taken into account when the ground space fronts a major retail street or commercial zone. Or it’s an even more important when new ground floor space is intended to create a new retail or commercial zone, often this is a key planning requirement of the local council. Even if there are times when this space has limited commercial value.
Some Quick Options
Most buildings will have the main entry foyer at ground level, the area can also house a building manager, mailroom or other community spaces. But these spaces rarely occupy the entire ground floor, so the space is shared with retail and commercial space.
Other options include the creation of a breezeway under the building, connected to either an internal private open space, or to public space. The use of this type of open access way does help to create a more immediate connection to the local neighbourhood, in particular in very dense areas. I have also seen a number of large buildings where a big part of the ground floor is given over to a gym and indoor pool.
However as the density of developments increases there is a greater tendency for this area to be assigned for retail and local services. Many councils retain this idea as a key planning goal. The main task is to make sure this space adds to the appeal of the building and that retail opportunities are in tune with the needs of the local community and residents so that the space both engaging and financially viable for any tenant or owner operator.
Parking Remains A Hurdle
High-density residential development is now very common in Australian cities and because of the very limited supply of greenfield locations, developments are now commonly located in old industrial areas, or in areas around public transport hubs such as railway stations.
Retail facilities in these areas might be limited or located along old strip-shopping streets, while major shopping centres may be some distance away. Island site remote from the new generation of high-density housing, and it is partly for this reason that councils look to have retail space at ground floor level. There is also an ideal that this space be designed more for the pedestrians than for easy car access, but this creates a problem, because without easy parking it is hard to attract enough customers to support the retail space.
The simple idea that high-density residential development alone will support retail services rarely happens because big numbers of apartments are required, and even in high density locations like Sydney’s Victoria Park, retail has to be supported by ample and easy to access parking. It’s not a readily available or commercially viable proposition.
Part of the solution is to aim to silo retail developments in specialist hybrids so that they can attract customers willing to travel, or with a tenancy mix that has rusted on appeal to the nearby apartment dwellers. However again this is not an easy task, and every retail level can not be a trendy coffee shop, although that’s an impression you often get walking around some new project areas.
A nearby by major regional shopping centre is always a plus for a new residential project, but this monopoly of retail and to some extent services dies make it hard for one of retail locations or even small clusters to trade profitably. For this to happen you need density like you find in mega cities like New York, plus very easy access to mass transit.
Still many development controls in our capital cities mandate the provision of retail space down at the street, this does not always reflect the reality of todays shopping habits. In planning projects there needs to be a strong reality check of how this space will be occupied, clever thinking can make the space more useful and appealing and so eliminate the need to tired to-let or for-sale signs.
Another hurdle is the fact that most of the shops along streets will be sold or leased separate strata units. This makes it almost impossible to have a co-ordinated retail mix strategy and the shops may take many years to mature and then add to the appeal of the neighbourhood.
Each building and project needs to be considered so that token retail space is not seen as the only alternate, there may well be other options including clever landscaping solutions.
Nevertheless, high land costs will always put pressure on the use of this space but detailed planning can lead to better outcomes, because an active ground level, will add value and brand appeal to any apartment project.
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Down at street level: Active ground levels can add value and appeal to a development

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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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My residential outlook for the year ahead: Part 2

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Over recent years I have always waited until late in January to look at predictions for the coming New Year, but this year I am breaking that habit.
2014 was an extraordinary year for the residential property market. Across the board for new apartment projects, for the house and land sector and for established homes nobody needs to be told it was an amazing year.
Although led by Sydney, there have been big market movements nationally. However I think that we shouldn’t forget that this market has now been with us since the second half of 2013. Those six months were also very hectic and trends have continued now for 18 months and so as we move into 2015 that’s the first point to keep in mind.
But first I would like to take a quick look at some of the suggestions that were made about what might happen in 2014. For buyers I noted that it would be a good idea to have a plan of attack, that is I suggested buyers needed to remain alert and do their homework and research to help find the best opportunities and the best price and so not miss out on finding that ideal property. Certainly I think that was sound advice as markets did move rapidly and if caught napping, then buyers missed out. Today Sydney remains largely a sellers market, but will that continue for all of 2015?
Some of the other headlines included the prediction that ‘Higher House Prices Were Here To Stay’ which proved in the main to be correct, and in many markets that was a bit of an under statement, as auction clearance rates broke previous records and many new apartments for sale off the plan hit the market at record prices.
Another key trend forecast was the difficult outlook facing first time buyers, and in that area again predictions of more difficult times ahead did unhappily I admit, prove to be accurate and that’s despite continued low interest rates. Some of the other key points highlighted included the important role the delivery of infrastructure projects would play, not only for markets, but in the wider economy.
The continued strong influence of property investors was also accurately highlighted and investors are now aggressively driving selected markets. Another driver of activity was the recovery of supply anticipated in 2014, and while supply has improved there is still some way to go.
Interest rates, the fate of the Aussie dollar, rising unemployment, state planning, the Federal Tax Review and Federal Budget and China’s growth prospects were also big picture issues on the horizon at the start of 2014. And so now what’s the outlook for 2015, will it be more of the same or will the 18 month long bull-market start to run out of charge?
Some Issues Remain, Others Join the List
If the last 18 months look extraordinary then the next 12 months look even more so. The list of factors that will come together to make up the fortunes of the housing market for developers, buyers and sellers is long. It includes the direction of house prices, employment, the many aspects of the finance sector, interest rates, affordability, demographic shifts, government planning policy and the emergence of new product, plus others. Overall though I get the general feeling that we are entering 2015 in a slightly pessimistic disposition, consumers are a bit restless, and we may all need to be more assiduous in 2015.
Perhaps the one big question is what direction will house prices take in 2015, it’s a good starting point as prices are the most visible sign of any shift in market sentiment. I think that one overriding factor is that prices will become much more segmented, area and product related, and this is a trend already apparent.
This may well see pockets of higher demand and higher prices, but other factors will act to make the trend far less general, higher prices will not be universal. The variants between a sellers market and a buyers market may be shifting and there is already some price resistance building. Despite that, we continue to see keenly contested auction results. I think markets will be more fragmented, more regional, and anticipating any fall in prices looks unlikely.
The level of interest rates and un-employment will be key factors in 2015 and to an extent both are linked. This time last year there was an expectation that rates would have seen a possible increase mid-year, but that did not happen, rates did rise in New Zealand and there is now the expectation of a rate increase soon in the USA, but both of these economies are different from ours, and now locally a rate cut or two looks more certain in 2015. The collapse of commodity prices is a big factor and there is little reason to expect a quick recovery.
Any move in rates either way will end a long period of stability, but with continued upward pressures on unemployment figures, a cut looks certain if only to help encourage more jobs. Jobs are now a very real issue as even the mining industry is shedding jobs.
There are concerns however that any rate cut could add more pressure to the housing market, and the federal government appears not to be interested in any measures to dampen the housing market in any way, largely because construction is a big driver of activity and employment. If lower rates bring more buyers into the housing market, then despite the banks protesting, some loan or other restrictions may be warranted.
However if unemployment increases, the rental market will cool and this may well influence investor sentiment. And we are yet to see how the banks will react to lower rates, given the home-loan market is already very competitive.
Last November the unemployment rate was 5.8%, and today that figure is 6.3%, official rates were and remain at 2.5%, the last cut in rates was August 2013. It is reassuring that the Reserve Bank has held rates thus far, because in 2015 they will have room to make cuts, which would not have been an option if cuts had been made sooner.
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The residential property outlook for the year ahead

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Every year the Housing Industry Association (HIA) publishes a detailed summary of the key facts about the Australian housing and construction industry.
With some figures going back over a decade, the summary always makes for interesting reading. I'm going to take a look at some of the key differences between 2013 and 2014.
The key headline figures show that last year there were 167,947 new homes built, up from 151,508 in 2012, the total value of housing construction increased from $68.3 billion to $69.9 billion, there was a big jump in the number of people moving into new homes from up from 389,376 to 434,788. There was also a notable increase in the number of people employed in the industry from 1,000,949 in 2013 to 1,037,412 in 2014.
As construction was seen as taking up some of the fall in activity associated with the mining boom, it is interesting to note that the value of construction as a percentage of GDP in fact fell from 4.6% to 4.5% in 2014. Even as the industry expands it has yet to reach the previous high of 5.3% recorded in 2010.
Looking at the make-up of the total number of dwellings built, the number of new homes built in 2013 increased from 90,268 in 2012 to 95,543 in 2013, the highest level in three years. However units continue to out pace detached dwellings. In 2012 there were 61,176 units built, in 2013 there were 72,404, however this is a huge increase over 2009 when only 38,992 units were built. It may well be that in 2014 unit numbers will have increased by 100% in just five years, which is a clear indication of where the market is heading.
Renovations are still very popular and this market has been running at consistent levels for some years, peaking in 2010/2011 at $31.8 billion. In 2013 renovations accounted for $27.9 billion, but outpacing all other areas of new construction. The renovation market is clearly an extensive and somewhat overlooked area of the housing market, possibly because activity is so fragmented and wide spread.
The HIA also tracks the average size of detached homes and attached dwellings. The size of the average family home has been relatively static at around 240 square metres for some years, attached dwellings are however getting smaller, and fell by 5.4% between 2012 and 2013 to 134 square metres having peaked at 143 square metres in 2004. However when looking at size, the HIA figures show that it is the size of the median lot size of land that has fallen the most, that figure stood at 592 square metres in 2004, and in 2013 there was a drop of 12.1% since 2008, down to 480 square metres, although in the last 10 years lot sizes have shrunk by more than 20%.
The composition of new dwelling approvals continues to change and in 1992 the total volume of detached dwellings represented 73% of all new dwellings, in 2013 that has fallen to 56%. By contrast, in 1992 apartments accounted for only 9% of the volume, in 2013 that has increased to 30% and the trend has been constant since 1997. The total dwelling stock in Australia now stands at some 9,008,000, an increase of 7.6% in the last 12 months.
Capital city vacancy rates have shown some movement between 2013 and 2104, the most notable shifts were in Darwin with rates increasing from 1.0% to 2.2%, and in Hobart there was a drop from 2.6% to 1.6%. Sydney and Adelaide remained stable and the vacancy rates increased in Melbourne, Brisbane, and Perth.
The HIA also notes in its update that according to RP Data, after inflation house prices across all capital cities increased by 7% over the past 12 months, and 13% in the past 5 years and 27% over the decade. I suggest that next year’s figures will continue to make interesting reading where price movements are concerned.
One final point is the burden of stamp duty across all markets, the duty on a median-priced dwelling in Victoria at 5% or $24,100 and in NSW for a similar home at 3.6% the duty would be $19,200. Clearly if there is to be a tax review and a change to GST, this level of duty begs for adjustment.
While the industry has seen growth in most sectors, the total number of building approvals at 178,897 is the highest figure since 2010 and a big increase on 2013 when approvals totalled 154,604. There were 34,506 (owner-occupiers) loans for new homes and 64,638 loans for the construction of new homes, which shows that Australians are still very much in love with the idea of building their own homes. The ‘dream’ is still very much alive as the increased activity over recent years shows.
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Construction industry stats show the Australian dream is still very much alive

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Australia has always relied on overseas immigration to help sustain our population and wealth, however according to figures published by the OECD, our immigration rates have been remarkably stable.
In 1995 non-Australian born residents accounted for 23% of the population and in 2011 that figure had only increased to 26.7%, for comparison in Canada the figure was 20.1%, in the UK 12%, the USA 13% and in New Zealand 23.6%.
At the same time as immigration has been very stable, investment inflows from offshore have been growing but there does not appear to be any direct link with high house prices. According to the OECD real house prices increased by 9.7% in 2010 (the most recent peak in prices) but they went into reverse in 2011 &amp; 2012 by 5.0% and 3.3% to increase by 3.8% in 2013, and in many ways 2014 continues a period of catch up, not withstanding the activities of foreign buyers.
While prices have been increasing over the years 2013-14 and affordability has fallen mainly because of high prices, interest rates have been very low. But it appears many Australians may still be facing a struggle to afford a home. One indicator is that the national savings rate, the percentage of disposable income that is saved has according to the OECD been in a steady decline; in 2011 the figure stood at 11.8% and in 2015 it is expected to be 9.3%.
Outside of the rate of foreign investment into Australia, we do not have to look very far beyond the ever increasing number of free trade agreements, or indeed the very presence of the G20 Leaders meeting in Brisbane to realise that we are very much tied up in the world economy. It is in fact an understatement of the reality.
However to single out foreign investment, which is not a new trend, for special treatment in the current state of the housing market, looks to deny the reality. If Sydney and other centres are to be seen as major players, so called ‘international cities’, then we need to accept that offshore buyers will be attracted to our residential markets. The investment and growth should create a stronger economy and more employment opportunities.
Fears about inflated prices, absentee owners and the creation of ethnic clusters look out of place in today’s world. However this does not mean that offshore buyers should operate outside the law and to date there is little evidence to answer that question one way or the other.
There is little doubt that the report issued recently does make some concrete points, not the least of which is an urgent need to improve reporting and enforcement by the FIRB. The move to civil penalties and fines for third parties, and the sharing of data between the Immigration Department and FIRB may also be well overdue and sensible measures.
However this will remain an emotive topic, and it’s also one where the question of ‘fairness’ surrounding the current rules will continue to come into question for as long as there is an incomplete picture of the market. Why the FIRB should have fallen so far short of the mark, may reflect badly on how different areas of government are being and have been under-resourced. And it is not only the FIRB.
Recently the ABS has come under the same sort of scrutiny, has been found wanting and also in a related area. When releasing the most recent housing finance figures the ABS has drawn attention to the fact that FHB loans may be under reported because not all FHB loans are tied to buyer grants and so some lenders figures may be wrong. While the FIRB recent enforcement might be in the view of the committee and community ‘grossly inadequate’, such failures need to be addressed.
The $70 billion residential construction sector relies on a stable flow of investment. To retain that level of investment we should not mix emotional questions of ‘fairness’ without reliable figures.
In 2012-13 real estate was the biggest sector of foreign investment into Australia, at $51.9 billion however, the majority of that was commercial real estate. We should also keep in mind that while China was the biggest source of investment at $5.9 billion in 2012-13, Canada invested $4.9 billion and the USA $4.4 billion, figures that I think show that we are part of a vibrant international market.
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Foreign buyers: Don't mix emotional questions of ‘fairness’ without reliable figures

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Recently, the House of Representatives Economic Committee Report on Foreign Investment in Residential Real Estate was released.
The report made 12 key recommendations, one of which was better funding of the Foreign Investment Review Board (FIRB), because currently there is a complete lack of creditable information on the true extent and nature of foreign investment into residential property. As might be expected the report has received a mixed response. It has not been welcomed by the majority of public comments posted on various news websites.
Let’s examine some of the background that led to the committee looking at this area of policy. In a recent post I noted that the local housing construction industry was worth almost $70 billion, employing some 1,037,412 people in 2014. When talking about foreign buyers and residential property I use these figures as a starting point to help illustrate how important this sector is as a driver of our economy, and it’s a point that was repeated in Friday’s report.
The role of foreign investment in our market can be an emotional subject, and it remains so. It is also a very complex issue for a country with a growing population and a somewhat mixed economic outlook.
The Plight of First Time Buyers
There has been clear evidence for some months now that first time buyers are being squeezed out of the housing market. Australian Bureau of Statistics (ABS) finance statistics show that in September 2009 first time buyer finance stood at 26.1%, by September 2010 that figure had fallen to 15.5%. In the most recent ABS figures there was a slight increase but the figure is now down to 12.0%, and the average loan has increased to $326,500, which in the Sydney market would not stretch that far.
Also, in the most recent ABS figures, investment finance for the month grew by 1.7% and owner occupier finance only grew by 0.1%, and this continues a long-term trend. The reasons for these trends are very complex, but on the surface, they do create an emotional picture of the plight of some sections of the housing market.
The emotion is partly illustrated by a <a href="https://www.change.org/p/the-executive-members-toughen-the-regulations-for-foreign-investment-in-australia" target="_blank">current online petition</a> posted on change.org. The petition started in response to the Economics Committee’s review which called on the Federal Government to "toughen the regulations for Foreign Investment in Australia". It attracted some 32,300 supporters (signatures) and a wide variety of mainly sympathetic followers. A key element of the petition was the fact that only 33 of the reported 5000 sales of established homes to foreign buyers over recent years have been investigated by the FIRB.
That’s a very small number and so, understandably, it makes the FIRB rules an easy target. However figures from the FIRB show that in the first nine months of the last financial year foreign residential property investment was $24.8 billion – a 44% increase over the amount approved for the whole of the 2012-13 financial year, which only further points to the fact that the FIRB may be under-resourced.
In the report the committee also made reference to these figures and agreed the FIRB was not doing an acceptable job, which it recommends be fixed.
The petition and the concerns of its sponsor (Simon Hosking) had been brought to the attention of Kelly O’Dwyer, Federal Member for Higgins and Committee Chair of the Parliamentary Business Committee’s House Economics Foreign Investment in real estate. In part of her response, published on the petition’s website and issued ahead of the main report, O'Dwyer states:
“… The Committee is taking a holistic approach to examine whether the current policy settings are delivering the best outcomes for the Australian economy and increasing housing availability, as they are designed to do. Australia’s foreign investment policy, as it applies to residential property, is intended to boost the supply of new housing and thus provide both economic and social benefits. The policy seeks to channel foreign investment in the housing sector into activity that directly increases the supply of new housing (such as new developments of house and land, home units and townhouses) and brings benefits to the local building industry and its suppliers…”
 This article continues on the next page. Please click below.
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Blame game or market reality
The debate around foreign investment in residential property comes at a time when prices and demand have both been increasing, a very obvious trend in Sydney and Melbourne and to a lesser extent in Brisbane and other centres. These cities are also attracting the bulk of foreign buyers and foreign development capital and investment.
In part, the trend is being ‘blamed’ for higher prices and at one end of the market. That blame extends to the trend locking first time buyers out of the market.
Again, ahead of the main report, here’s what Committee Chair Kelly O’Dwyer said in response to the Simon Hosking petition. The  same views were reinforced in the main report:
“…Consistent with this principle, foreign investors are able to seek approval to purchase new dwellings and vacant land for residential development. Foreign investors cannot generally buy established dwellings as investment properties or homes; however, temporary residents can apply to purchase one established dwelling to use as their residence while in Australia. The acquisition of residential real estate by foreign investors is regulated by the Foreign Investment Review Board (FIRB). It has become clear from evidence presented to the Committee that FIRB has not prosecuted a single case since 2006. It is also clear that there are problems with processes at FIRB, resources and the penalty regime. The Committee is due to report later in the year…”
However only last week ahead of Friday’s report, this same committee knocked back a proposal that foreign property buyers be levied an extra stamp duty as a possible way of helping to fix the housing affordability crisis, and dampen offshore demand.
There seems to be a fairly entrenched ‘hands-off’ approach being adopted, although a purchase application fee of $1500, that would raise $158.7 million over four years, appears to have general support. Such a fee would by no means act as a penalty.
Returning to the idea that foreign investment is somehow having a negative impact on the market (by forcing up prices), I think we should also look at how different the Australian economy has become over the past two decades.
Because the housing market is part of a big picture and it has to be seen in the wider context. The importance of direct foreign investment across our economy is illustrated by the fact that in 1990 Direct Inward Investment Stocks was US$80,333 million, however, in 2012 that figure had grown to US$604,257 million. Over the same period Australia’s outward flow of Direct Investment Stocks has grown from US$37,491 million to US$424,489 million. I quote the figures to illustrate the fact that the international flow of investment funds is a fundamental to any economy.
The rush to secure Free Trade Agreements is further evidence of this fact. Last week Australia and China signed an FTA, and it is yet to been seen if this will have any impact on the flow of funds into residential property both buying existing projects and for new developments, and if this will be a positive or not for the market.
On first reading of the China/Australia Free Trade Agreement, because of the freeing up of many of the service sectors, this may well be a positive for Sydney and Melbourne, because these two cities are so closely aligned to the professional services. Law, finance, education, tourism, health, engineering and manufacturing are all seen as having potential benefits and growth in these areas plus other key areas should create more demand for commercial and residential accommodation in Sydney and other cities.
However, again illustrating how emotional this topic has become, there are suggestions that the various free trade agreements will further harm the prospects of ‘local’ would be home-buyers. But I do not see any foundation for this assumption.
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The housing market and foreign buyers: A blame game

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We are all living longer and that fact alone is having a big impact on the housing market as the population grows and ages.
However, it is the baby boomers that right now are shaping many areas of the housing market. As life expectancy among the boomers continues to rise, a more complex housing market is evolving.
There has been a 100% increase in the numbers of people living beyond 55 plus and a 150% increase in the numbers of people aged 75 plus. At the same time as the baby boomers age, their health has improved, and a longer life span is leading to pressures on aged welfare payments and health care costs. There are also longer term pressures building on how superannuation savings are managed and invested and how public pensions are funded.
As a result the traditional idea of retirement and retirement housing has shifted and continues to do so with some very dramatic consequences for the housing market.
Where and how the baby boomers live in retirement looks nothing like the retirement plans and hopes of their parents. The idea of moving to a sleepy coastal town, or traditional retirement village is being replaced with an appetite for lifestyles as diverse as living on a luxury liner (for the lucky few) or the more accessible idea of moving to a lifestyle resort with apartments and villas clustered around a golf course and access to a cinema, resort style pool and other amenities.
A key idea driving retirement living is the desire to stay connected. As people live longer and stay in good health they want to stay connected to family, the kids, the grand kids and lifelong friends, the idea of moving away from all of these connections has no appeal. Those living in retirement, or soon to retire, are no longer heading towards accommodation in clusters, they are aging in place and that means possibly staying longer in the current family home in metro, regional and country locations.
Existing homes are being renovated in greater numbers to accommodate their needs, by for example improving access to bathroom facilities and by reorganising accommodation so that stairs are eliminated.
Of course some people do move house, either trading up or down the price ladder and many new homes now feature a ground floor bedroom and bathroom. There’s also a continued trend towards boomers moving into CBD apartments, or apartments that a very well connected to local facilities. Sydney’s Double Bay and Bondi Junction are just two areas where this trend is evident. It’s all a part of being connected to the community and people's health care is also better managed when they are close to established medical facilities, a point not wasted on federal and state Treasurers.
More Flexibility Requires More Income
Recent federal budgets have started to directly address retirement issues, the retirement age is being increased, yes we are living longer, but we are also working longer by choice and by necessity.
As part of the housing equation income planning is now a central concern, people want to have more control when they retire and this is leading to a greater trend towards semi-retirement, with more lifestyle flexibility. By moving into retirement slowly, people are able to retain the family home longer, or plan their move to say a new apartment project, in an orderly fashion and possibly over a number of years. This is often an appealing solution for those who are asset rich, but cash poor.
If people do not want to sell their homes and move to fund part of their retirement income, staying local looks to be a long-term trend. Staying connected also means more boomers are looking for flexibility in their housing options and moving to semi-retirement may well have the impact of delaying the possible turnover of some existing housing stock. However it appears that it is quality of life that will drive retirement housing options. It is interesting to note that it’s the more highly paid who work longer and those that retire early usually do so not for financial reasons, but for health reasons as their ability to work is diminished.
Somehow that retirement cottage on the beach has lost its appeal, while a CBD apartment gains appeal and boomers weigh up how best to fund their future lifestyle and housing needs.
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How Baby Boomers retirement plans are impacting the housing market

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Apartment living is popular and apartments are also sought after investments and today the location, price range and style of apartment you can buy is varied.
So I found myself asking, given all of the options available, what makes a good apartment?
So I spent a little time having a look at a number of chatroom and information sites where other people were asking just this question. I found potential buyers, investors, people looking to rent and parents looking to buy for their kids, asking this question, sharing their views, experiences and their concerns. What I found was a pattern of comments and advice that soon came down to about fourteen points.
Many of the points were common and we would recognise them here in Sydney, or indeed in any city. Some concerns like noise and parking and access to a local supermarket came up quite a few times.
I thought that I would share with you the results of my personal research, because I think it’s a good idea to keep reminding ourselves about what buyers, tenants and investors are looking for when they come into the market, no matter how robust conditions might currently be. Here are some of the key points I discovered.
Upfront, having apartments that were soundproof was a clear concern, and it’s not an uncommon point of discussion when taking a project to market. Clearly people want peace and quite when they are at home. Then came a comment about water pressure, it’s one that does not come up that frequently, but again it’s an important day to day issue. I do know of comments however in buildings with central hot water systems that it’s sometimes necessary to run taps for a few minutes to get hot water to the shower or kitchen sink – something to think about.
However in third place I found repeated comments about noise, street noise, traffic noise and pool noise, there’s been some discussion about noise pollution and as urban areas become far more concentrated clearly it’s a point of concern. Personal safety was also a high-priority issue, secure buildings and neighbourhoods are seen as a plus.
Now the next one did surprise me. Many people buying into an established building were trying to establish if there were short-term leases on offer. This was seen as a big negative and a possible indication of poor management. Most people believed that these buildings should be avoided. This a recent concern in Sydney and an issue that needs a lasting solution. Residential apartment buildings are clearly not hotels in the minds of the community.
Then I came to a very familiar topic and one that got lots of attention, parking. The topic was a concern not only about secure parking in particular buildings, but also easy access to visitor parking and easy on-street parking for deliveries or service calls. Day time parking was an issue in areas with clearways and the restrictions they impose on both residents and visitors. All of which is very familiar.
Ample storage was another pointer, storage that was clean, easy to access and not damp! Then I saw many comments about looking for buildings that allow pets, so that’s an area we seem to have right in Sydney, where most buildings welcome pets and it’s seen as a sensible policy.
The appearance and up-keep of an apartment building was covered in many comments, however the main concern was the ventilation of common areas, in particular the hallways leading to apartments. Buyers were unimpressed with cooking smells, stale air and artificial light. Clearly all common areas need to be fresh, with some natural light and good ventilation top of the list.
Talking about design, buildings and apartments that were well designed to cope with high summer temperatures, or cold winters were seen as a plus, environmental planning for shifting weather patterns is clearly on the minds of apartment dwellers. Nobody wants to come home to an apartment that feels like an oven in summer or a fridge in winter. Natural shading and cross ventilation is seen as a good option here by many chat participants.
Then I came to three common pointers regarding location. These were, look for apartments within walking distance of a supermarket, so there’s not always a need to drive. Be close to public transport or easy road and motorway access and the third golden rule of location for apartment dwellers was access to varied areas of open space, parks and wilderness.
But when looking to buy into or rent an apartment it was this last point that I thought was the most telling. That was to look for buildings that have clean and well ordered garbage rooms, because this means good management and above all thoughtful residents.
I found my chatroom visit very reassuring and helpful and worth sharing.
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What makes a good apartment

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

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

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

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

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

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

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	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
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	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
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	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
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</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

Peter Chittenden

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