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As we struggle with a housing market where supply is limited and affordability is under pressure with first time buyers facing an up-hill battle, should we being looking to prefabricated buildings as a bigger part of the solution?
Would the use of prefabricated buildings also speed up the approvals process, deliver projects quicker and save money for the entire industry and community?
We already know that many other industries have had to rationalise the design and manufacture of their products, so why not the housing market?
Certainly according to PrefabAUS the peak body for Australia’s off-site construction industry, the answer is yes and there are many examples of stunning prefab homes being designed across the world. In the USA, prefab has moved into the highrise market.
On their <a href="https://www.prefabaus.org.au/" target="_blank">website</a>, PrefabAUS outlines the organisations mission statement as: “Our mission is representing, showcasing and advancing the industry through collaboration, innovation and education”.
They then go on to suggest that the time for off-site construction has arrived, with ongoing work to grow local knowledge and capability.
The name prefab is short for prefabrication, it’s a snappy and clever way to bring the idea into the modern age of development and I think works well to reposition this section of the market.
However, because there is no up to date or accurate research available, we are unable to judge the extent to which prefab contributes to the housing market. Still PrefabAUS has a wide range of members including manufacturers, architects, suppliers, and engineers with (as might be expected) architects making up the biggest number of members.
This Is Not A New Idea
As PrefabAUS detail on their website the idea dates back to AD43 when the Romans used the technology. In Australia, Corio Villa Geelong was a home prefabricated in Scotland and erected in Geelong in 1855-6, while in 2010 the now familiar name Sekisui Homes, Japan’s largest prefab builder, arrived in Australia.
Lend Lease have completed building the <a href="/expert-insights/buying/docklands-tower-fort-now-the-tallest-timber-residential-building-in-the-world-as-it-tops-out-at-10-storeys">world’s tallest timber building</a> in Melbourne with the use of prefab CLT (cross-laminated timber) panels. For Lend Lease, the success of the project helped the company win the contract to construct the nearby $20 million Docklands Library and Community Centre. Both buildings use CLT panels made of European Spruce. Each panel is 16 metres by 3 metres and they are easy to ship and assemble on-site.
While the Lend Lease Forte Building was the first to use CLT in Australia, the technology is used in many European centres.
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The Modern Prefab
While the Lend Lease example is a good one, we need to ask if the modern prefab can deliver what buyers want, there has been a lot of work done in this area, in particular overseas with micro-housing and sustainable housing. And there are some great homes made, as on-off container homes.
There is a long history associated with prefabricated design but most current work in this area is helping to deliver what might be market acceptable options. For many decades architects have been designing factory prefab houses that aim to combine the lower costs of mass production but still delivering the buyer a good design and quality construction.
Given concerns over supply and affordability it might now be the time to re-visit the dreams that some planners and architects have of using prefab homes on a mass scale. Because if we avoid complicated construction and find the right balance between quality and price, and the planners embrace the idea, then prefab should have a more mainstream future.
World’s Tallest Modular Building Hits a Hurdle – But The Future is Still one of Promise
However new building methods do not always run smoothly. At the Atlantic Yards, Brooklyn New York, the world’s tallest prefabricated modular tower has run into some problems and according to the New York Times, the modular technology is being ‘dumped’ for the next three towers.
The developers have reported trouble working out all the kinks on the factory floor to deliver a tubular steel chassis of 145 fully equipped apartments. A further three new buildings in the project will be using conventional construction.
According to published reports, after gaining code approvals there has been a learning curve on the project. According to local architects, this was only to be expected. The developers are, according to the New York Times, planning to return to modular construction for future stages.
The New York example simply highlights the fact that any new building method is complicated, you have to change the culture among planners, governments, builders, unions and architects and be an innovator like the Lend Lease example in Melbourne, we need innovation.
More time, more planning and innovation might well be required to see if there is the potential for prefab options to have a transformative effect on the housing market, with the promise of quality, improved affordability and a workable option for developers.
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Are prefabricated houses the answer to our affordability problem?

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Currently Australia has a population of some 23,640,000 and we are rapidly heading towards the 24 million mark.
In the most recent population update issued by the Australian Bureau of Statistics (ABS) for the March quarter 2014 there are some interesting facts and some shifting fortunes for various Australian states. Some of the changes directly reflect the shifting strengths of the associated local real estate market, but there are many other influences the population is having on demand for housing.
Our march towards a population of 24 million is being fuelled by some key facts; our birth-rate is healthy while our death-rate is much lower. According to the ABS a new birth takes place every one minute and 43 seconds, while a death occurs every three minutes and 31 seconds. So births are well ahead. There is one new international migration into Australia every two minutes and five seconds, and we have the net result adding one new person to the local population every one minute and 17 seconds.  Our population growth rate is at around 1.8% which is very high by international standards; therefore we lead the OECD ranks.
It’s little wonder that we see so many new baby wear shops in our local shopping centres, and also continued strong demand for housing.
International Migration
While our natural rate of population growth is impressive, it only accounts for 40% of overall growth, with 60% coming from international migration to Australia. The impact is also apparent in NSW and Victoria, the two states currently leading in population gains.
The March Quarter ABS figures show that in NSW the population increased by 114,500 with 67% of that coming from net overseas migration. In Victoria the population grew by 108,800 with migration making a 57% contribution and we know that these two states also have the most demand for housing and the most robust prices. Clearly the arrival of one new international migrant almost every two minutes is having a major impact on growth and creates more immediate demand for housing than the numbers of new born babies.
Interstate Migration Shows Major Shifts
While WA still leads in the rate of growth at 2.5%, that is well down from the rate of 3.5% just 12 months ago, as momentum is shifting towards the big states like NSW and with its current population at 7,500,600 it’s easy to see how important that state and Victoria and their local economies are as we move out of the mining boom. The ABS figures go further and show how population trends have changed over the last five years.
In 2009 some 12,300 residents left NSW to move to Queensland, in 2014 that figure had fallen to 4,800.  That’s a very big shift. More people are arriving and staying in NSW where housing supply is at its most critical. At the same time growth has slowed in Queensland and WA. In fact NSW has recorded its lowest interstate migration of population in 30 years and Victoria has had its highest gains on interstate migration to that state on record. Queensland has seen its lowest rate of gain, dropping 65% in five years.
We are seeing some changes that are reversing decade-long trends and the different population pressures in each state are reflected in local demand for housing. New migrants and expanded families need homes and both are having a major impact on our local real estate markets and possibly compounding the problems of undersupply.
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Population growth compounding our undersupply problems

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Over the past twelve months house prices have been on the rise, led by Sydney, but also in Melbourne and Brisbane.
Alongside this trend we have seen many high profile and extensively publicised auctions and pre-auction home sales with prices reported as well over the reserve having been paid.
We have also seen a number of apartment projects released for sale and sold out in only a few hours. Meanwhile, in parts of Sydney there's an ongoing land rush, with buyers camping out to buy a block of land in Sydney's booming north-west and south-west.
This sort of activity has not been an aberration, it's the type of market we are seeing more often than not. So called 'Super Saturdays' when big numbers of auctions come onto the market in one day are no longer the exception.
In Sydney in particular, we have almost an entire market showing strong demand even as prices continue to rise. On a slow news weekend this is the stuff of everyday drama, and so it's reasonable to examine why the market is acting this way.
Real Estate is a very different commodity
Against this sort of market environment setting the 'right price' might be starting to look like a somewhat scary prospect for real estate agents, for buyers and for sellers, for either a single private treaty sale, an auction or an entire apartment building or land estate. Real estate is a unique commodity, it is fixed in time and place.
Supply is very inflexible - you can't simply call up the assembly line manager and ask for a new delivery of homes, apartments or land. And we can't over look the overarching role of finance as a key driver of supply and demand.
Can we define value? When we set-out to define value, there is no lack of academic study or case law in this area but much of which comes from 'gentler times'. But none the less it's well worth considering. When looking at value there is the general supposition that firstly any buyer is perfectly acquainted with the property they are looking to buy, that the buyer does the necessary homework to size up the market, which today, thanks to so much published data is a far easier task than it used to be.
That buyers are alert of all the circumstances, which might affect value and the open market price, aspects both good and bad and ticking off a property's location, quality, access to facilities and the surrounding features. That buyers also understand the present levels of demand and the likelihood of what competition they might face, for example at an auction, from other buyers.
And then having either the ready cash or access to secure finance in a competitive market among those capable of buying a particular property. It all sounds very reasonable, very sensible, but then the factor of emotion enters the mix and any neat formula all of a sudden looks less useful.
So we might ask: what are the factors driving the 'emotion' in the market?
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 Every Property is Unique
While economics defines the rules of supply and demand, the pressures of market over and under supply and the mechanism of price every property remains unique. As such, they rarely only attract one willing buyer.
As cities grow, there will always be competition and that's on the increase.
We should not overlook the impact of population growth. Currently, according to the OECD, Australia has one of the highest population growth rates in the OECD at near 1.8%, while in NZ its 0.9%, in the USA 0.7%, Canada 0.85% and in the UK its -0.8%.
We are fast heading towards a population of 24 million. This one factor alone helps to explain why homes are in such demand.
In New South Wales and Victoria, growth is being strongly fuelled by overseas migration and a big drop in the outflow of population to states like Queensland and Western Australia.
There is a finite supply and, yes, while you might be able to create more apartments or houses, every location is itself unique and so is the local community. They're not possible to replicate.
You can't put extra supply on a freight train and move it. It's fixed in place and time and is always influenced by local conditions. We also have a problem in the amount of time it takes to get new developments off the ground. The DA process at times appears to be stuck in the slow lane.
And because markets are so local, it's possible to have both under-supply and over-supply, which can't easily be fixed, if at all and so prices will always respond. If there are not enough properties for sale, then prices will always rise. Even in new estates or in development areas where more homes can be constructed it takes time to deliver new stock and so prices will rise.
People want to buy and secure their position now, even when this is via an off-the-plan purchase.
Property is local by nature and auctions clearly show how after reflecting upon all of the market factors (like those outlined above) the price paid will always reflect the scarcity and demand at any point in time.
Supply and demand in real estate isn't easy to balance, it takes time and supply needs to be in locations that buyers are after, that buyers want. Buyers are influenced by a range of external factors like the availability of jobs and local services and their needs can be very specific – schooling for a young family, university access for a more mature trade-up family or, for an aging population, medical, recreation and security might be the big issues.
Buying a home, an apartment or an investment in exactly the right community and neighbourhood is not that easy. So it's possible to see why supply and demand is always a local and very personal issue. When there is ready access to finance the competition will remain intense for limited opportunities and prices will always respond. This should not come as a surprise.
Demand and the prices paid for real estate are influenced by many factors including lifestyle options, investment goals, development constraints, population growth, demographics, off-shore buyers and finance. All of these then combine to influence supply and demand, and in today's market many of these factors are instantly recognisable.
 
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How much did they pay? And why?

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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.
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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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With plans for a three-level penthouse to top off the proposed Crown Sydney hotel and casino at Barangaroo, Sydney might soon join New York, London and Hong Kong in the $100 million penthouse club.
The proposed Crown penthouse would occupy the top three levels of the 69 storey complex, possibly appealing to local or international billionaires keen to capture what could be Sydney’s ultimate address.
But while this penthouse comes with an impressive price tag, it’s not that much of a rarity and surprisingly global buyers are well catered for in this heady price bracket. 
A penthouse in the very ritzy London suburb of Knightsbridge <a href="https://www.theguardian.com/uk/2011/apr/16/knightsbridge-flat-sold-for-136m" target="_blank">sold recently for about AU$255 million</a> – in London’s red-hot property market the unfurnished penthouse of 1,500 square metres has views towards Hyde Park and Harrods department store.
Meanwhile, <a href="https://www.bloomberg.com/news/2014-06-02/nyc-woolworth-tower-condo-priced-at-record-110-million" target="_blank">in New York there’s a US$100 million penthouse</a> in a re-vamp of the top levels of the famous Woolworth Building. The seven-level home has captured the imagination of New Yorkers occupying the landmark tower’s top floors with three bedrooms, a double-height great room, a private elevator, and a library in the observation deck. To be marketed as “The Pinnacle”, the asking price equates to what looks like a modest US$11,700 per square foot.
The penthouse is one of 34 apartments in the Woolworth Building’s re-vamp with a total anticipated gross of US$444 million. Apart from the US$110 million penthouse, there are three other apartments with US$20 – $28 million plus price tags. One other at US$15 million and five apartments at what looks like a modest US$5 million.
“The Pinnacle” will span 9,400 square feet with just under 500 square feet of outdoor space and the US$110 million price will be a record for Downtown New York and one of the priciest listings ever to hit the city.
If you are feeling a little left out of the $100 million club, then it’s comforting to know that prices will start at just US$3.9 million for a 1,290-square-foot toe hold on the 44th floor of this iconic building. Speculating about Crown’s possible plans for the more modest apartments in it’s Barangaroo building, Sydney might well eclipse these prices – and so admit mere mortals.
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Sydney may be about to join the $100 million penthouse club

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A strong resurgence in the residential property market has significantly lifted transfer duties; including residential stamp duty in 2013-14 and signs are the trend will continue.
However for what has been described by some commentators, as a ‘windfall’ may in reality be a clear sign that long overdue stamp duty reforms should be addressed now while the market is so positive.
Higher prices and continued strong demand are putting a lid on affordability, along with low interest rates and while very competitive interest rates are welcome, it’s time to look at a longer term solution to the government’s heavy reliance on stamp duty revenue. The state government’s first time buyer concessions are also only available on new homes and so this tends to fuel demand in some, mainly outer, areas but the concessions also limit the choices of first time buyers.
However the much wider consideration is that government revenue may be far too reliant on stamp duty revenue from a robust property market. We should question if this is placing a greater or uneven burden on home buyers for a revenue benefit for the government that may be short lived. At the same time government is naturally welcoming the revenue, but this is a volatile source of cash.
And while state-based tax reforms looks a long way off, I think that it is reasonable to suggest that while the market is so strong that this is the ideal time to start the process of reform. Because in the longer term, lower stamp duties with more widespread affordability might well help to fuel and sustain a more robust market. This process could start with indexation.
However before looking at the case in favour of indexation, one of the most telling figures in this debate is the comparison between GST revenue and transfer duty that NSW receives. GST revenue in 2014-15 is estimated at $6.094 billion rising to $6.9 billion in 2017-18. By comparison, the total transfer duty revenue in 2014-15 is estimated at $6.095 billion (of which $4.7 billion flows from residential property stamp duty) but this is anticipated to rise to $7.256 billion in 2017-18. On top of which we should not forget that revenue from land tax will add $2.4 billion – $2.8 billion in the same time frame, plus the parking space levy is set to reach $115 million by 2017-18. Adding these figures we see that by 2017-18 property related revenue for the state will be some $10.24 billion. To me this appears to suggest a possible imbalance.
Higher Prices Should not be Driving Revenue
We currently have historically low interest rates, pent up demand, undersupply, improved consumer confidence and of course the obvious big increase in house prices. It is the rapid increase in prices YTD to 16.3% against an anticipated 7% increase that really does support the argument. It is time for the NSW government to look at reducing or at least moderating the amount of stamp duty from residential buyers via some form of indexation.
The concern being expressed is that stamp duty does play a role in the housing affordability debate. The figures speak for themselves, when you consider that the average stamp duty paid by a property buyer is now $23,805 and that only nine years ago it was $14,485, then the figures look horrible. In 2005/06 total stamp duty paid was $2.3 billion today its $4.7 billion.
The result comes about because higher property prices are pushing average home buyers into more expensive stamp duty brackets. Economists refer to this phenomenon as bracket creep. Governments tend to enjoy bracket creep because it delivers growing tax receipts without nasty policy changes or political debates.
The current stamp duty brackets have not been changed for a very long time (except for the “premium property” bracket that was introduced in 2004). When these brackets were put in place, the median house price in NSW was less than $300,000. The median house price in Sydney is now $783,000 as bracket creep catches more and more buyers. Already we know that in some 170 Sydney suburbs, that’s one in five, median prices are now $1 million plus, and this is a further signal that some adjustments are warranted.
Governments do need revenue, but stamp duty reform has been promised for many years, and the current policy is a negative for many buyers. It’s also a source of income that in many ways is frequently volatile. One solution is to start and adjust the growing bracket creep problem, and this could be done in stages. 
If some changes are made now when receipts are high then the NSW government can start indexing the benchmark to be more in-line with today’s values, as current rates are distorted and need adjustment. 
After all, in Sydney almost no homes are well below or even near $300,000, which was the median price when current rates were set.
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It’s time to index stamp duty

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Currently Brisbane ranks as Australia’s third largest city with a population of 2,143,121.
Over the next five years the city is expected to grow by 11.2%, attracting some 215,000 new residents. By comparison Sydney is expected to grow by 8.1% and Melbourne 10.4%, while Perth is looking to out perform all its rivals with a growth rate of 16.5%.
Brisbane has a close association with the Gold Coast/Tweed and in combination this adds a further 605,134 to the population base of almost 2.8 million in the south-east region. The area is also expecting to grow at a rate of 11.2% over the next five years, which adds to the economic muscle and growth potential of the region.
However regardless of the continued rivalry between our capital cities, Brisbane appears to have all of the settings in place for a period of sustained expansion and that growth is going to change the character of the local real estate market, in particular the apartment market.
To look more closely, let’s first establish a general appreciation of the market in order to gain an understanding of the appeal of new developments in Brisbane. A brief summary of the immediate past and the big picture planning for the future will help take a fuller account of how Brisbane is now being propelled into the future and why it’s an emerging and appealing apartment market.
After 1982 and 1988 There’s Been No Looking Back
The 1970s Queensland, and particularly Brisbane had a somewhat dual character much of which was influenced by the Joh Bjelke-Petersen era. To some Brisbane was seen as a quaint place, where people ate their tea at 5.30pm, post cards featured jacarandas and poinsettias lining the streets, there were charity raffles and pesky paper-boys at the main city intersections and lots of bingo halls.
The city’s underworld of the 1970s and the 1980s was as active as anywhere else in Australia, but the Whiskey Au Go Go inferno of 1973 marked a turning-point of history. Then after hosting the Commonwealth Games in 1982 and The World Expo in 1988 Brisbane never looked back, the theme of Expo 88 was “Leisure in the Age of Technology” and it does appear that today some 26 years after Expo, that slogan appears to be a great combination of ideas for a city like Brisbane to prosper under.
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Future Vision
Brisbane’s ascendancy is also being directly strengthened by events such as the Group of Twenty (G20) Leaders Summit, on the 15th and 16th of November, the summit is Brisbane’s biggest event since the 1982 Commonwealth Games and Expo 1988. The Queensland government has also announced a four pillars policy to foster economic development and employment across tourism, agriculture, resources and construction.
The state government is also putting it’s efforts into the delivery of critical infrastructure, and has commenced work to ensure local councils have the power they need to better plan for the future growth of local communities. Policy settings will also include plans to create simplified, single state planning arrangements. Already the state government will transfer responsibility for South Bank to the Brisbane City Council along with management of the Roma Street Parklands.
While the CBD continues to evolve as an apartment market, the inner north (<a href="/news">Bowen Hills</a>, <a href="/news">Fortitude Valley</a>, <a href="/news">Hamilton</a>, <a href="/news">Kelvin Grove</a>, <a href="/news">Newstead</a>, <a href="/news">New Farm</a> and <a href="/news">Teneriffe</a>) and inner south (<a href="/news">Dutton Park</a>, <a href="/news">South Brisbane</a>, <a href="/news">West End</a> and <a href="/news">Woolloongabba</a>), inner east (<a href="/news">Bulimba </a>and <a href="/news">Kangaroo Point</a>) and the inner west (<a href="/news">Milton</a> and <a href="/news">Toowong</a>) are all popular developments and very diverse suburbs with a good variety of lifestyle and product options, which are of key importance for a flourishing apartment marketplace.
Price Indicators and Beyond
In the March quarter 2014 the value of the average Australian home was $546,000, the average weighted growth between the March quarter 2013 – and the March quarter 2014 was 10.9%, Sydney’s growth was 15.7%, Melbourne’s 10.9% and Brisbane 6.1%.
While in the June quarter 2014, the average Sydney apartment price was $650,000, in Melbourne $502,000 and in Brisbane $476,000 – and while Brisbane has seen a somewhat lower growth rate, it’s been consistent for eight consecutive quarters. However, average prices are to a degree an all-purpose measure and like all other capital city markets Brisbane has measured price variations across different areas.
We also appreciate that prices are just one measure, these figures are only part of the story, because clearly buyers and developers also need to be sure that other aspects of the market like lifestyle, infrastructure (both hard and soft or cultural), affordability (growth and employment) and new stock are all aligned.
Looking at Brisbane we see a number of dynamics coming into play. The variety of product being developed is now diverse, different locations are also responding with varied product and that diversity is welcome with appeal to both owner-occupiers and investors, the vacancy rate is tightening, approvals are growing and the population is growing while new projects are showing strong sales results, and it is generally agreed that in combination all of the indicators are positive.
As we start to see the state government’s vision for tourism, agriculture, resources and construction take shape the appeal of the Brisbane market, in particular the apartment market, is positive. 
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Brisbane's growth will fundamentally change its residential market

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With some 704,000 bonds amounting to $1.043 billion in its care, the NSW Rental Bond Board’s annual report shows some interesting trends that investors I think will find interesting.
Let's look at some of the facts from the 2012-13 annual report.
The raw numbers firstly show that bonds held increased by 3.4% over the number held at 30 June 2012, new bonds increased by 2.8% but the number of refunds was far less at only 0.8%. This shows how tight the rental market was in NSW; the average bond paid was $1,483. Investors in residential property might also be interested to know that February appears to be the month when most tenancies change over after a slump in demand in January. As might be expected most tenants move out of their accommodation in December and February.
It also appears that the majority of investors use a managing agent, as real estate agents lodged 89% of bonds.
The Board’s annual report also gives a very clear picture about the relative size and growth in demand as new bonds paid are examined by postcode groupings. Across metropolitan Sydney the biggest rental markets are the Eastern Suburbs with 50,513 bonds, followed by Western Sydney (41,432) and St George (36,071). However the Board’s figures show that the three areas with the biggest increases in bonds, and hence tenancies (available supply) where: South Sydney 8.7%, Western Sydney 6.6% and Parramatta Hills 5.0%. The areas with the highest median rentals were Inner Sydney and South Sydney with growth rates of 5.4%.
An interesting observation from these figures is what appears to be an even spread of growth south, east, west and south, although in combination the west is dominate with 119,252 tenancies.
Outside of the metro area the three biggest rental markets, as measured by the number of bonds paid were: the North Coast 55,401, Greater Newcastle 35,949 and Penrith/Windsor 32,009. It was somewhat surprising to see the Central Coast in fourth spot with 29,255 tenancies. The areas with the biggest increase in supply were: Penrith/Windsor with 5.9%, Dubbo &amp; North West 5.2% and Campbelltown 5.1%.
Between 2011/12 and 2012/13 the population growth for NSW was approximately between 1.2 and 1.4%, but over the same period the Board’s figures indicate that tenancies grew at a much bigger rate of 2.7 and 3.3%. While by no means conclusive, this contrast does clearly show that many people have relied upon rental accommodation and would indicate continued demand into the immediate future.
This is a very noteworthy annual report, it points to strong demand for rental accommodation, a trend towards longer lease terms, a well-managed private rental market with quality and stable tenancies. All of which are factors that given the extent of the Board’s activities underline the appeal of residential property investments.
The Board invests tenant bonds and the income is used to fund a number of programs including Tenant’s Advice and Advocacy ($4.63 million, this is a program jointly funded by the Board and Fair Trading), Credit Counselling, No Interest Loans Schemes and Aged-care Rights Services – many of these programs are of wider community benefit, but they along with the functions of the Board itself, helps to create a stable and transparent rental market. I think this is a positive and important function for investors, as it helps create very stable administration within a large rental market of some 704,000 individual tenancies.
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Sydney rental market continues to tighten with trend towards longer leases

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As more people live in apartments there’s a greater focus on balconies.
In urban environments it’s clear that there’s demand for outdoor space, both private and public. For inner city apartment dwellers <a href="/expert-insights/buying/balconies-are-the-new-backyards">access to both is important and the market is responding</a>.
The balcony has for some time now been seen as an extra living room and is starting to become as important as the kitchen or living room. Buyers are increasingly more alert to a balcony’s aspect, whether it’s sunny or in the shade, is the balcony private, a good space to have a coffee, a wine or a meal or just sit and watch the clouds fly buy.
As apartments are getting smaller, buyers see this area as a place to relax after work, an important extension of their living space. Reflecting this trend there’s also a big increase in the variety and quality of furnishing that’s available to enhance the balcony space, it’s now very fashionable.
As more detailed attention is being paid to outdoor space in development projects, what are some of the key points to consider and are there any pitfalls?
I previously suggested the idea of thinking about balconies from three aspects – pets, plants and people. I if all three thrive then the balcony must be pretty well designed. From a down to earth view I think buyers will also consider – access, climate, privacy, views, services, storage and the environment.
Access is really important. Possibly the most popular layouts allow an apartment’s internal and external spaces to merge together to give the owner one big space. And another plus is when multiple rooms have balcony access. These designs are very different from those of the 1960s and 70s when you might have only been able to squeeze through one single door to the balcony.
Climate is another big issue. For the space to be comfortable to use all year round the design needs to pay attention to climate, so the space is not too hot, not wet or a spot where you’ll be blown off your feet in the wind. These points are common sense, but should not be overlooked otherwise valuable space for any buyer can be compromised. Covered north-facing are great, but not every apartment can have just one aspect and so this is why planning now takes the function of the balcony into account.
Views are also important. As areas have to accommodate more density, we need to consider how a view works in terms of privacy. The use of external shutters both fixed and movable designs are now commonly used and they do help to make balcony spaces much more inviting and private. I know that off the plan buyers are always keen to fully understand the views from their balcony – it’s an area that gets a lot of their attention.
As balconies are becoming more a part of daily living space then they need to have good services, drainage, electricity, gas and water and something that is less common, storage. However all these services have not always been provided. Trying to get the best use of a balcony can be limited if there’s no water or gas supply.
Today’s buyers have become very alert to having these basic service items. And while storage, in particular storage cupboards, are not common it’s a good idea and it can help to keep balcony areas tidy and presentable.
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But There Can Be Some Areas Of Conflict
Thinking of tidy balconies, with all of the pluses associated with these spaces, they can also become areas of conflict and this does place greater pressure on owners, strata managers and the body corporate.
Clothes drying, smoking, storage and the humble BBQ can be areas of conflict. Smoking on balconies remains an issue and stronger rules and restrictions are possibly on their way with the stalled review of NSW strata laws.
With higher energy costs and greater environmental awareness, to many it is reassuring that balconies can be used to hang out the washing. Yes, there are rules and limits and so privacy shutters can come in handy. However, this is another area where legislation is lagging and rules are up for clarification.
Private and Public Space in Demand
In almost every city there is demand for things outdoors, be that a balcony for a new Sydney apartment, a roof top pocket garden in London or Paris, or a few square metres of outdoor space attached to a New York apartment.
The quest for private outdoor space is always there, even in a booming real estate market. While a stunning city or harbour view might be out of reach for the average buyer, securing a private outdoor space is always ticked as a desirable option, space for a deck chair and a spot for al fresco dining is clearly a shared aspiration.
So far I have been looking at the importance of private space for the average apartment owner that’s a balcony and how the everyday use and design of this important space is evolving. But there is another aspect to this subject and that is access to public and communal space.
In areas where there is major development, we see what a positive impact new parks and open spaces have. Good examples include Brisbane’s now well established South Bank and soon in Sydney Barangaroo’s Headland Park will be a new public space covering six-hectares of harbour foreshore park. While it will be a space for the entire city it’s a good example of what we now expect from our public parks with space for all sorts of daily recreation, grassed areas, lookouts, walking and cycle paths, and a new harbour cove.
Then much further afield we have perhaps the ultimate example of a modern urban public space in Singapore’s Gardens By The Bay, supported by a huge capital investment and run with the assistance of 10,000 hours of volunteer labour. While in Philadelphia a new 5000 square metre mega roof garden is taking shape as part of a new development there.
There’s no shortage of evidence that as more of us are now apartment dwellers, private and public outdoor space is very important and the humble balcony is transforming as a public space and delivers some stunning options.
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The evolution of the balcony: A public and private space that delivers some stunning options

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It does appear that most, if not all of us, crave some time outdoors.
Each year more than 20 million people visit Sydney’s Centennial Park, 36 million visit our National Parks and Sydney’s Botanic Gardens attract almost 4 million visitors.
Much of our recreation is associated with the outdoors and this naturally includes time in our own backyards. But the traditional backyard is changing, for many it is being replaced with a balcony. And so from a design and marketing perspective the move from backyard to balcony is now a core part of the apartment market, and the same can be said for shared or common space outdoor areas.
Balconies, terraces, roof decks and verandahs are not the invention of modern living or recent architecture. There were examples in ancient Mesopotamia, in Roman villas, and many Egyptian homes and palaces had roof gardens. Shakespeare’s Romeo and Juliet first performed around 1595 made one balcony very famous, in the 17th Century the word became common in the language of Italians, while much closer to home from the 1850s the verandah started to become an essential on many Australian homesteads.
That love affair with an outdoor space, so commonly attached to our homes, clearly stays with us today.
From Quarter Acre to 10 square metres Plus
In 1962, just as the birth of the last baby boomers was in sight, the social impact of more crowded cities was starting to impact and be seen in popular culture. ‘Up on the Roof’, a song by The Drifters, lists many of the cares we are very familiar with today.
{qtube vid:=7F_opWg9_qI}
When the world starts to wear us down and the ‘rat-race noise down in the street’, means that we all need a place to escape and relax. It’s easy to identify why in a modern setting that the balcony has become such a central part of apartment living.
Today approximately one in four Australians live in apartments and in some cities that will soon be 50% of the population, in selected inner-city locations much more.
From the visitor figures I outlined earlier it is clear that we all need outdoor space, for many this space is now a balcony and these can range from seven to 10 square metres on a one bedroom apartment to a bigger space of 30-40 square metres or more and this can include several balconies. And while there may not be an upper limit as such, there is, as would be expected some general ratio between indoor and outdoor spaces, and without access to exact figures, that appears to sit around a ratio of between 12% and 30/40%.
Anyone marketing apartments today knows that buyers also pay great attention to the balcony area when looking at an off the plan purchase or when they inspect a finished product. Clearly this space is an essential part of their list of desirable or must have features, and what buyers look for in a balcony is now much more exacting. It is an extension of their living space and for many buyers this directly impacts the quality of life they are looking for.
The Ideal Balcony
Balconies, which are also greatly influenced by Australia’s climate, can be a difficult area of planning and design because the space is both private and public. This can create some areas of conflict, but first lets look at a balcony from a simple check list of the three ‘P’ – people, pets and plants.
The balcony needs to accommodate all three functions, the varied needs of people to have a place to relax in the sun, dine outdoors etc, and with pets being common place in most buildings they need to be considered, pet owners may want a safe spot for pets to spend their days. Many people like to have potted plants, or balcony gardens be that one or two plants or a productive ‘veggie patch’. This is not a definitive list but it does go some of the way to explaining why balcony design is so important, because buyer expectations of the balcony space have shifted and our climate dictates the space must be useable all year round.
Balcony space needs to address many issues such as access, climate, privacy, environmental concerns, storage, services and circulation, in fact the space could really be seen as a facsimile of the wider design and function of the apartment interior itself. This reinforces the central importance and value of the balcony in the eyes of today’s modern apartment buyer.
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Balconies are the new backyards

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

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After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

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Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

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Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

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ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

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For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

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Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

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Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

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Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

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Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

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Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

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The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

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The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

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The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

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Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

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Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

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Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

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Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

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Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

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The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

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The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Peter Chittenden

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