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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.
Article continues on the next page. Please click below.
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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

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

<ul>
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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.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</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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