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Back in February 2012, I published a post on the subject “smaller apartments to be the norm, not the exception”. 
Now almost two and a half years later we are starting to see projects that were then on the drawing board either finished or mostly sold off the plan.
As was already apparent back in 2012, today the reality is that generally apartments have in fact gotten smaller. However, via skillful design and by responding to buyer feedback, smaller now also generally means better. While size is still important, it’s not the most important factor.
Over the same time frame Sydney has also retained it’s place (which depending upon your circumstances and point of view is either a good or bad thing) among the world’s most expensive cities to buy a home. In 2012 there was the certainty that new apartment designs were set to be smaller but also hopefully more efficient with changes being driven mainly by price ceiling constraints and lifestyle demands.
What we have seen over the intervening years has been a remarkable shift in design standards and buyers have also shown little or no resistance to smaller apartments. From a marketing perspective this shift has been driven by a number of factors, mainly quality, good planning and lifestyle shifts. But there has also been the expectation that smaller did not mean inferior.
Smaller Apartments, Big on Design
Apartment buyers are a pretty smart bunch, developers know this and as marketers we also respect how much more engaged buyers have become. When buyers approach off the plan projects they do so with confidence but that is also matched by a much more discriminating buyer.
There have been a number of key facts driving this trend. Higher prices are key; this applies to all buyers as investors are no less demanding of quality. There has also been greater competition for the best locations.
I get constant feedback that in a nut-shell goes like this: Buyers are looking for well-designed, carefully planned projects, that are well located, close to local shops (and that is within walking distance), with access to good public transport. Most buyers are willing to move down in apartment size, but they expect location and services to be top rate. They also have a clear checklist of what they expect internally.
I also think that this has a lot to do with market education that comes via reality TV. There are now so many home renovation shows and I think this has been a factor in educating buyers. They are more aware of good design.
Like the food revolution that has in part grown out of the saturation of cooking TV shows, I think the same can be linked to a cultural shift that has buyers thinking about the design and function of apartments. This also extends more than ever to the reputation of the developer and builder.
First Impressions
One of the most telling ways to judge how people are reacting to smaller and smarter projects is to see how they first respond, what questions are generally top of mind and what first impression is created at a sales and display centre.
They are very keen to see how the space is used; they look beyond the finishes to how the space will function and what the developer has done to make the space work.
I have also noticed buyers are keen to see how the project sits within the neighbourhood and what sort of brand message does the exterior design of the building broadcast. They are quick to spot gimmicks, but there is an appetite for themed buildings that reflect the local environment.
It’s fairly clear that a good project team has to work hard to get the mix just right, this is now essential as apartments are not seen as a stepping stone any more, they are home to more and more of us. Between 2009 and 2012 the supply of new apartments increased by 56% and over the same period the numbers of new detached dwellings fell by 13%.
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Some Trends
Looking at one of our most recent developments, Woolooware Bay, near Cronulla, in Sydney’s Sutherland Shire, there’s a variety of one, two and three bedroom apartments which range in size across an assortment of designs which include: (internal) 59 square metres for a one bed, 78 square metres for a two bed and 114 square metres for a three bed. These apartments being developed by Bluestone help highlight how good design is being delivered.
Some of the features include; a multi-purpose or shared zone, which might have been a media-nook or study, but has now evolved to a shared space for work, study or pleasure. Apartment kitchens have also evolved, perhaps more than any other area, kitchens are now almost a ‘piece of furniture’ with varied surfaces, textured finishes, display cupboards, recessed lighting, and so just having stainless steel appliances no longer makes the grade.
Other design features include the use of windows and balcony access to create good air circulation, and balconies even, when they are small, are now more private, attractive ‘rooms’. Most of the larger three bed apartments at Woolooware Bay provide balcony access from all main rooms and all bedrooms. The use of high-set windows and privacy screens are now more common features, and there’s a deliberate aim to create separation and privacy for bedrooms.
Another area of design, and this might well help make smaller apartments even more functional, is the use of technology to create ‘smart apartments’ where the push of a button might one day do much more than switch on the lights and TV.
We aren’t fully there yet, but at almost every consumer electronic show manufacturers now display even more smart-home devices. The spread of smart-phones and tablets could soon see apartments online and residents able to switch their lights on or off, tweak the air conditioning, order in dinner, and make sure those houseplants and pets are looked after.
Buyers are skeptical when it comes to ‘gimmicks’, but this does not mean that as apartments are smaller there is not a need for well-planned building facilities. Alongside better interior design these facilities have also evolved and in addition to lap pools and well-equipped BBQ areas. We now have contemplation gardens, wine cellars, common rooms, a library and indoor and outdoor cinemas. However, when these facilities are included, buyers are still keen to see strata levies at manageable levels alongside the focus on quality management.
The end result of all of these trends is the ready comprehension among developers and buyers that smaller apartments are workable and popular, but this needs to be balanced with really assiduous design, great quality and the continued quest for well thought-out locations and buildings with sought-after facilities.
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When it comes to apartments, smaller really can be better

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Over the last 12-18 months investors have become an important part of the target market for most project marketers.
The 2012-13 Annual Report of the NSW Rental Bond Board gives some keen insights to the character of the Sydney rental market. The insights are well worth sharing with investors, developers and marketers alike.
It is estimated that there are some 2.47 million private dwellings in NSW of which 703,158 (when last counted by the Board) are private sector rental properties and there’s a general trend suggesting that soon this will account for almost 30% of housing stock. By any measure the residential rental accommodation is key and seemingly ever more important.
In 2009/10 the Board held some 648,141 bonds or $840 million but in 2012/13 it held 703,158 bonds or $1.043 billion, and since the GFC the number of people in rental accommodation has been on an upward trend with the biggest increase being seen in 2012/13. It is also reasonable to expect that this trend will continue as affordability remains tight and as more new stock is completed and becomes available to rent.
There also appears to be a trend towards longer lease terms. This may in part be directly related to the improved quality of apartments that are now being developed. Investors are now very keen to purchase apartments that offer good quality, this applies to SMSF investors who are looking for long-term income and tenant stability. The sometimes termed ‘rental quality’ is no longer acceptable, as any sort of dumbing down in a development will fall short of investor expectations.
The trend towards longer leases, and hence more security for investors, is seen in some of the Board’s figures. These show that lease terms of between 13 to 24 months are the fastest growing sector of demand and that lease terms beyond 37 months are a very stable part of the market.
Two-year terms are now around 33.5% – a big increase from the level of 23.3% in 2001/02. It also appears that investors are also on a winning trend with more than 91% of bonds returned in full or only with part deductions and only 9.3% of bonds claimed by landlords. Again, I think that this points to an evolving and longer-term rental market, which for some tenants means that renting is less of a stop-gap measure and longer lease terms may also help people save for their own home, while flat-sharing of more expensive properties is also a popular option.
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Sydney’s residential rental accommodation is more important than ever

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NSW Treasurer Andrew Constance has confirmed just how much Sydney’s real estate boom is adding to the general fortunes of the state.
The 2014 budget papers show that "a resurgence in the property market has significantly lifted transfer duties in 2013-14". Transfer duty, including stamp duty, contributed $938 million of state budget revenue. This result was seen as a ‘windfall’ and measures to further stimulate the rate of new home construction were also announced in the budget.
The Treasurer also announced that the threshold for the first home buyer $15,000 grant will be boosted to $750,000 – an increase of $100,000. From 1 July 2014, the NSW government will boost the threshold of the First Home Buyers Grant for new homes by $100,000, which means entry level buyers can spend up to $750,000 on a new property.
However extending this to established homes appears to be totally off the agenda given the level of demand and the increased prices over the last six to 12 months. Still, eligibility for the grant will from 1 July 2014 be restricted only to citizens who are permanent Australian residents.
The NSW government has also pledged to freeing up land supply and speeding the delivery of some infrastructure to help boost construction activity.
Property Plays a Big Part in State’s Economy
However when looking at the government’s revenue papers in the budget, it is easy to see how important a robust property market is. But at the same time the extent of revenue from property and some related areas may be placing too great a burden on the sector.
Comments in the budget also underline how relatively volatile, even fragile this revenue stream can be, and so I think it’s worth looking in more detail at some key points. What we can see is how reliant the government is on this revenue and why any move to abolish stamp duty as part of a possible review of state-based tax reforms looks a long way off, if ever, although remaining mortgage duty is being abolished in 2015.
One of the most telling figures in the revenue statement is the comparison between GST revenue and transfer duty. GST revenue in 2014-15 is estimated at $6.094 billion rising to $6.9 billion in 2017-18. By comparison transfer duty revenue in 2014-15 is estimated at $6.095 billiob but is anticipated to rise more than GST to $7.256 billion in 2017-18. On top of which Land Tax will add $2.4 billion – $2.8 billion in the same time frame, while we should not forget the parking space levy set to reach $115 million by 2017-18 and so adding these figures we see that by 2017-18 direct property related revenue for the state will be some $10.24 billion.
The budget papers do point out that the 2013-14 results were expected to increase by 20.5% but in fact the increase looks set to be closer to 35%. Further the current budget anticipated an increased volume of sales at 6% but the final figure was much more at 18%. And residential property prices have increased by some 10% over the past budget period, however those figures are not expected to be maintained, but any slow down is expected to be gentler than previous cycles. And in the four years to 2017-18 the government is expecting a growth rate of 7% over the four years. In today’s market this looks a conservative estimate.
What Has Been Driving These Figures
The Office of State Revenue might be expected to be conservative in its views, however key facts driving the revenue in 2013-14 have, according to the Office, been: historically low interest rates, pent up demand, under supply, improved consumer confidence and of course the obvious big increase in house prices.
When looking at the impact of house prices, the Office points out that activity was initially driven by sales of less than $600,000 but now strong growth in sales of homes valued over $1.2 million is apparent, however the Offices argues that this trend might also mark a peak in the housing cycle.
A Keen Eye Out for Strong Construction Activity
Given the potential of $10 billion in annual revenue by 2017-18 the government is also keen to keep the recovery in new construction on a robust footing. In the December quarter 2013 private sector dwelling approvals were 44% higher than the decade average, as were dwelling commencements while completion were 14% above the decade average.
The hope is that these strong results will continue over the next 4 years, as this appears vital for the health of NSW. However the reality is that the sector and those home buyers paying stamp duty (and that’s the majority) are doing some heavy lifting when it comes to government revenues and any adjustment to the GST needs to address this reality.
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New South Wales reliant on the property market for revenue

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Last week a New York real estate listing started making the rounds on Twitter creating a great deal of debate.
The author tweeted: “New barrier breached in NYC real estate? The US$1 million STUDIO.” The New York based broker had listed a 532 square feet (49.4 square metre) studio for almost US$1.1 million (AUD$1.172). What’s more, the particular studio was described in a somewhat down-beat way as “not even in a coveted block!”
The Twitter activity started a conversation about how realistic this claimed ‘record’ was and for my part, back in Australia, and for Sydney in particular, I also find myself asking if the $1 million price benchmark needs to be updated, specifically when it comes to apartment values.
Back to New York for a minute. In reality the listing was not “a new barrier breached” for the city. It’s not even the most expensive studio listed because right now there’s a range of studios from 400 square feet at US$1.05 million to an eye watering US$1.8 million (which last sold in 2009 for US$925,000) for just 689 square feet that’s 64 square metres which is a much more familiar size and price for a quality well-designed one bedroom unit or for some two bedroom units here.
Recently, in just a few hours, Colliers International <a href="/expert-insights/buying/bondi-junction-aqua-off-the-plan-sellout-leaves-buyers-scrambling-to-secure-apartments">sold out Aqua at Bondi Junction</a> where 66 of the 129 apartments were sold for an average of $1,000,000 plus.
Today Sydney has around 170 suburbs with a median house price of $1 million. In fact, one in five Sydney suburbs is a $1 million plus area, which underlies the city wide trend, but this also argues the case for another benchmark to be used to gauge evolving values.
It’s also estimated that half of Sydney’s home owners will find themselves ‘millionaires’ by 2020, by virtue of the fact that an estimated 625,000 houses across the metropolitan area will have a value of more than $1 million, when twenty years ago, we weren’t even at $200,000.
Prices, even for some prime one bedroom apartments are now, as the Bondi Junction example shows, long past the $1 million price point. At Sydney’s Barangaroo that price has been achieved for an off the plan one bedroom apartment with parking at around 60 square meters, ($16,600 per square metre). While at just below this price a 60 square metres one bedroom apartment on level 36 at The Cove, on Harrington Street The Rocks could today be purchased at $950,000, ($15,833 per square metre).
Many if not most buyers are now very comfortable with per square metre rates being used to underpin process. And for apartments, that might be a much better city-wide guide than the $1 million sale price measure.
The use of a rate per square metre I think better reflects the location, quality and facilities of individual apartments and also gives a more accurate reflection of the total project. We also need to try and more fully factor in the big leap forward in quality and design that apartments in 2014 now deliver. There has been a massive increase in quality, finishes and design and we also need to better reflect location and building facilities and there is sound reason to suggest that a rate per sqm benchmark would do this.
Otherwise like the New York example demonstrates, the raw price can give a flawed or even misleading impression.
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The $1 million apartment yardstick is no longer relevant

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The idea of multigenerational living (MGL) is not new and in some societies it’s a very old idea, however not so for Australia, although this may be changing.
Looking at the central role design plays in the planning and marketing of new residential developments, I think that we need to consider the more widespread impact of MGL, and its impact is already being felt, even if the changes are still only subtle, at the margins.
In some European and Asian countries MGL is a normal part of the social and housing fabric; in the USA the trend is on the increase mainly in response to economic conditions. In the US social conditions are also changing, shared living sits with shared economic resources and many of the trends are now being mirrored in the Australian housing landscape.
Economic conditions are linked at one end of the market to falling housing affordability and at the other end of the market tied to the insecurity of retirement income. In some parts of the US it is now more common to see parents living with the kids, along with grandparents and younger siblings living with their more financially stable older brothers and sisters. There are varied housing needs in play here across these different generations and this is impacting the size and design of housing stock. In Australia we see the same demographic pressures now starting to come into focus and the recent federal budget has further magnified the trends.
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Multigenerational living responds to many economic and social needs and is a trend that is going to continue to impact the design and demand for housing.
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Here we see pressure on the middle-class, Baby Boomers want to stay living in their homes for as long as they can, while their kids are also staying longer in the family home as they face the hurdles of housing affordability.
Also if baby boomers have to work longer towards their 70’s, then staying in the family home near employment will have an immediate impact. People close to retirement will stay local and the idea of a tree or sea change will be less appealing because of very limited employment options. Working longer and staying connected longer will make it more attractive to share accommodation.
The Security of Proximity
MGL delivers one clear benefit and that is the security of proximity. Grandparents under the same roof as their younger family members is an obvious example, but young couples with kids can also benefit if they have the support of parents and grandparents to help with either ongoing or occasional childcare. This pooling of resources both financial and because of the help of an extended family, even if only for a few years, will also help those saving for a home, and it is hard to argue that MGL will be on the increase driven by the desire to make housing more affordable.
The benefits apply as much to shared rental accommodation as they do to owned property, with the idea of shared rental accommodation taking us back to the past days of young people in a shared house or apartment.
Design Is Already Responding
In Australia MGL is already having an impact, and this will continue to gain pace as the market adjusts to our shifting demographics and economic circumstances. For example go to almost any new housing display village and you will find any number of homes with ‘parent’s or teenage retreats’ and with multiple living zones, and two-way kitchens. The granny flat is now a hotel-like self-contained unit on the ground level of a designer four or five-bedroom home. While more generally house designs are delivering designs that provide different shared spaces that also function to provide the privacy we all crave.
Or consider the options that a three-bedroom dual key apartment might offer a MGL family unit. A two bedroom home for mum and dad and a one bedroom flat for a young adult child, that could one day be homes in the reverse, or a multi-unit investment for the family. Another example I now see is one family buying a number of apartments in the same development to meet the different overlapping needs of different generations.
Multigenerational living responds to many economic and social needs, some long-term other short-term and others that relate to financial security and limitations, however this is a trend that is going to continue to impact the design and demand for housing.
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Multigenerational living: The future impact on design and demand for housing

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Choosing an apartment that is best suited to your personal lifestyle or investment goals is now about much more than just price.
Apartments today deliver an ever more urbane choice, where buyer demand has lead to a revolution in quality and design. As discussed in my last post, <a href="/expert-insights/buying/how-mixed-use-developments-will-continue-to-benefit-a-wide-range-of-mixed-users">the shift in user demographics plays a major role</a> and for many people apartments clearly tick the box for quality, design excellence and innovation. But this has not been achieved overnight.
Apartments from the 1970s may well reflect what is sometimes described as ‘the decade that taste forgot’. The 1970s brought us open plan living, colour – think orange and lime green – terracotta tiles, shag pile wall to wall carpets, big windows, indoor plants and one trend in particular, the use of exposed brick that still dominates some areas of our near city suburbs.
In the mid 1970’s apartment prices in Sydney hovered near $22,000 a decade later $66,000 and then in 1993 apartment prices started to rise and demand also increased for what was starting to become a more all-embracing product. Today the median price for a two bedroom apartment is around $850,000 but these bear no relation to any 1970s ancestor.
But even though some apartments can typically still cost less than a similar-grade house (although that gap is fast closing), in 2014 price alone is not the main consideration driving demand. While the decision to buy a particular type of dwelling is tied to demographics, shrinking household sizes, our ongoing housing shortage and a growing population are all factors.
The reality is that today, apartments are the home of choice for many people and first-class design, I think, is one key reason that can over-reach issues of affordability.
In February 2000 the then New South Wales Premier Bob Carr criticised the quality of the design of residential flat buildings. He challenged architects, the development industry and Local and State governments to do better.
“Australians can lead the world on how to balance urban densities with environmental comfort … The government, with councils, developers and architects, must work together on how to lift our game and create better, more liveable and sustainable suburbs.” (Premier Bob Carr, Sydney Morning Herald, 16 Feb 2000.)
Now almost 15 years after Bob Carr made those remarks has the industry faced up to his model and has the challenge been met?
I think we are well on our way to meeting, and in fact going past the ambitions. There will always be pressures to deliver enough housing in a high-growth future. But we also need to ensure that developments are well located and history shows that the arrival of new projects in some areas is not always welcomed.
However, this should not be allowed to frustrate or diminish the quality of medium or high-density residential buildings. In fact just the opposite. Because as design and quality improve new developments can add value to an area, boosting local demand and delivering sought after homes.
New apartments in our sought after suburbs are in high demand but there is only a limited supply of land, as for example, former commercial and industrial sites are regularly transformed. Understanding that sites are increasingly rare developers are now more than ever aiming to deliver exceptional projects to the market, from a marketing perspective I know that buyers now have ever higher expectations, and rightly so.
Picture of Woolooware Bay development: Supplied.
You can read Peter's discussion with Woolooware Bay architects, Kevin Driver and Angus Henderson from Turner Architects at Peter's blog, <a href="https://www.projectagenda.com.au/" target="_blank">Project Agenda</a>.
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The design dividend: First-class designs make apartments the home of choice for many buyers

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In the very early days of my career I can remember that the promise of being involved with a ‘mixed use’ development was always an exhilarating idea.
At the time mixed use was the development mantra of the day when a combination of commercial space, retail, hotels, public amenity and residential was being looked at on a new scale, with the aim of bigger and better.
Mixed use was seen not only as a way of adding a more complex layer of capital value and possibly increasing income from the project, but also as a way to better guarantee success in the long-term as the different uses acted in a harmonising way.
Mixed use developments were also seen as the ideal way to invigorate areas because they would hopefully attract a more diverse target market, in a way that say a freestanding office building could not. It’s also not that long ago when for example the Sydney CBD and to an even greater extent North Sydney CBD were seen as lacking soul and appeal because these areas where dominated by commercial office space. After hours and on weekends they were seen as dull and as retail and cinemas moved to big regional shopping centres the trend intensified. However over the past 20 plus years, in part due to the big increase in apartment projects, that view has turned around and both markets are now the dynamic centres we all know.
Mixed Users
We have come to understand that single-use markets usually have a limited life, while mixed markets offer wider appeal. However we no longer need to rely upon markets to hopefully evolve with a sort of planning wish list. We know that major mixed-use projects require a large capital investment, however today we have a variety of investment platforms and planning incentives that favour such development.This brings me to the emerging impacts that ‘mixed users’ will have for the residential market.
I suggest that when we think of mixed users we also need to include mixed generations of users as a key demographic of the market and how this might impact the appeal of a project.
Diversity has an important role, even an essential role to play in creating a vibrant community and this now applies more than ever to the demographics of a successful residential development. Many aspects of the demographic mix of our cities are now starting to change and successful developments are reflecting these changes.
For a variety of reasons we are now seeing the emergence of multi-generational households in the housing market. While in our social mix this is not a totally new phenomenon, the numbers are likely to start to grow in the future. There are already some early signs.
For example the number of three-person and six-person households increased in the 2011 census, while other groups were somewhat static. However the numbers of three bedroom dwellings feel while the number of one bedroom and two bedroom dwellings did increase, but most of this movement was concentrated across inner city locations. This points to larger numbers of singles looking for a strong social base, greater ‘connectivity’. This is in part associated with a multi-generational neighbourhood, the various age groups do not always have to be under the same roof to create a rich social fabric.
The Modern Family – It’s Here Already
The recent federal budget is forcing Australians to contemplate the idea of a shrinking middle class, with one result being that more young people are living at home longer. And when mum and dad do move, they might sell and be looking at a location where they can buy two apartments to replace the family home, but still retaining all family ties.
We also know that many retiring Baby Boomers want to age in place, or in the local area they are familiar with, the idea of retiring and leaving is no longer the preferred option and we know only too well that longer life expectancies are going to have a huge impact on housing demographics. The granny flat in the back garden is also another reality creating multi-generational households.
The multigenerational home or development project is clearly a housing type that is already in demand but may well become a much bigger market force.
This will I think result in projects offering well beyond the traditional mix of one, two and three bedroom apartments, if we have a vision for the 21st century then the impacts of multi-generational living will be far-reaching. So over the next few posts I am going to explore some of the options.
One example is the idea of mixed use projects, that have a mix of options not only extending to the choice of housing, but also how facilities are built, funded and shared, the blending of mixed use and users.
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How mixed-use developments will continue to benefit a wide range of 'mixed users'

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Over the past week or so there’s been no shortage of comment on the federal budget. It’s sure to be an ongoing discussion and I would like to look at a few less publicised topics that went under the radar.
The first concerns the search for a new Secretary for the NSW Department of Planning and Environment and whoever this person might end up being, it’s a position we should all be interested in.
Currently the state government’s planning reforms are treading water, and progress which is vital to the development industry is in the hands of the new look cabinet and in particular with the new Planning Minister Pru Goward. Labelled as the biggest shake-up of planning in more than 30 years, the planning overhaul has been in limbo since November 2013.
Under the previous Planning Minister Brad Hazzard, plans remained deadlocked including the key aim of a new fast-tracked development pathway. However there are community and industry concerns about the planning reforms and so the new Secretary and Ms Goward will face a few hurdles.
This newly created position was one of the first steps taken by the Minister and brings together the functions of planning, environment, heritage and local government and as noted in the recruitment advertising calls for candidates able to shape the future of planning and the environment in the state. For many years planning delays and red tape have been seen as holding back the development industry. While according to Meriton’s boss Harry Triguboff, affordability has also been impacted making it harder for first time buyers and inflating prices.
There are many reasons why this role will be keenly watched after applications close on 8 June.
Building Products On The Up
On a related but somewhat different path, only one day after the federal budget was announced a statement from CSR announced a full year net profit of $72.0 million, up a very impressive 143% with a statutory net profit of $88.1 million.
CSR noted that building products earnings increased by 20% with growth across most businesses, and that building approvals for both detached and multi-residential housing continue to grow strongly.  According to CSR this trend is expected to lead to increased demand over the next few years as multi-residential projects near completion and in another positive sign for the industry CSR also notes a solid pipeline of transactions currently under negotiation.
In February, Boral Limited also announced another healthy result with a 73% increase in net profit for the six months ended 31 December 2013. The Building Products division’s significant turnaround was in part due to the tailwind of improving housing construction demand in New South Wales and Western Australia.
The results from CSR and Boral do indicate that a move to see stronger development activity is now starting to take hold. The trend is further underlined by the ASX Materials Index which has increased by 8.34% in the last 12 months, while the related Industries Index has also increased by 9.45% over 12 months.
These figures are important as they point to how successfully we are moving from the resources construction boom. While the Resources Index rose 8.16% over the last 12 months the three-year trend is down 9.11%.
Planning Needs to Get in to Step
The pending appointment of a new planning and environment supremo for NSW and the need for new planning laws to be sorted out, may appear to be some distance from either of the boardrooms of CSR or Boral. However these two news items are linked because they point to the continued transformation of the national economy.
And while I have avoided direct comment on the federal budget, its strong infrastructure focus will no doubt impact CSR, Boral and similar companies and our future new department secretary as well. In a wider context new residential developments will soon come into the picture as planning rules for NSW are re-visited and as the construction sector benefits from strong infrastructure spending.
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The property topics that have flown under the radar

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Each year in Australia there are about 50,000 divorces, although the ABS figures were last published in 2012, the divorce rate had been in steady decline since peaking in 2001.
Divorce is one of those key social factors that does have a marked impact on the residential property market, and sometimes in surprising ways. I frequently come across mainly males who ‘unexpectedly’ find themselves in the housing market where finding a new home can have a material impact on diverse areas from location to design.
For both males and females granted a divorce in 2012, 60.3% were less than 45 years of age at divorce, while 51.0% of males were less than 45 years of age at divorce. The highest incidents of divorce is then in the age bracket of 40-44 years of age, and this fact alone is not worthy as this age bracket is also when people are at the peak of their earning and debit capacity.
We earn more in our 40s but also that’s when debt, including mortgage debt peaks, and so this along with the fact that many married couples in this age bracket will also have kids in their late teens, we are looking at a tricky situation. For some this can result in them having to enter or re-enter the housing market in a ‘gun to the head’ state of affairs.
A Mix of Family, Personal and Financial Needs
The impact of divorce on housing is far reaching and is underscored by the fact that in 2011, there were some 24,144 divorces involving children under 18 years of age. This represents 48.4% of all divorces granted.
The complexity of financial arrangements is further explained by the fact that the median length of marriage increased from 10.5 years in 1992 to a peak of 12.6 years in 2005. Since 2005 it has decreased slightly, with a median duration of marriage to divorce of 12.2 years recorded in 2012 and so over the intervening decade plus, many families would have purchased a home and be close to the mid-way point of their loan terms.
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Divorce is one of those key social factors that does have a marked impact on the residential property market, and sometimes in surprising ways.
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Another key reason why divorce for people in their mid 40s impacts their home living arrangements comes via the fact that over the last 20 years, the proportion of joint divorce applications has been on the rise, and the proportion of one party applications has been on a downward trend. Now joint applications remain the highest and they account for almost 40% of all applications.
There has also been another and possibly related demographic shift, and that is the number of children aged below four living with two parents has been on decline for some years, while the number of children in the same age group living with one parent has been on the increase. With more sole parents, housing demand has been shifting and this trend may well continue to grow.
The rate of divorce may well continue to decline if couples do not marry for the reason of looking after younger children. But when they stay married the entire family unit will be older and this will further impact housing outcomes when a divorce does happen.
Housing Post Divorce
It does appear that at times couples could well be putting off getting a divorce because they simply cannot afford all the costs involved in re-housing. However when in their mid 40s there is evidence of some degree of greater mobility, although at a cost.
One hurdle will be the costs associated with buying and selling two homes. Coinciding with a real estate slump during the GFC divorce rates declined, because couples without ample money to spare were forced to stay together because no one wanted to sell the family home at a loss. Possibly because in the past the individual who kept the family was in the end financially better off.
However we also see many couples leaving the family home with the female partner and the children with males moving on, which is helping to create demand for smaller apartments to both buy and lease. This demand is also causing some males to look for accommodation near the family home, and this would directly reflect the no fault trends that I detailed earlier.
However women in particular are becoming less attached to the old family home, wanting to begin a new life in a new home and this again is having an impact on the demand for smaller apartments.
However while some divorces do result in the forced sale of the family home, higher real estate prices might well be causing couples to work harder on the relationship to avoid the complications and costs of dealing with the family home.
We are seeing more flexibility in what type of new home divorcees are seeking and this helps create demand for new projects with a good mix of product for sale. After all, for both parties a new well-located apartment can now be an attractive option. But for now we will have to wait a few years to see if current high property prices keep a ‘lid’ on divorce rates.
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How the demographics of divorce affect property

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I am not an economist and after the release of the federal government’s Commission of Audit report this is a fact for which I am somewhat grateful.
Having stated my position on the economics involved, some of the Commission of Audit’s 86 recommendations could, it appears, from all of the commentary potentially re-shape Australia. It could re-shape many aspects of society and many aspects of Federalism, which seems a shame really given that only last year, Canberra, the seat of Federalism, celebrated its 100th birthday – just as well it’s not this year.
Part of the intention of the report was to spark a conversation about what sort of society we want to be, in particular over the next 50 years or so. And it appears that conversation has got off to a flying start. When you search ‘Commission of Audit Australia’ on Google there are already some 280,000,000 references.
I have found myself asking the very specific question of how will the report impact the residential housing market? How will the report influence buyers and developers now and over the next few years?
It might be foolhardy to venture into this territory while the report is still so new, but I want to join the conversation, and because the report will reach into so many areas of our social structure I think the conversation is urgent.
A Shift in Demographics
Over the years the market has had to live and adjust to some big issues, like the introduction of universal superannuation guarantee levy (1992), the GST (July 2000), the 9/11 attack on New York and Washington (2001) and the GFC (2007/2008).
However even these big events did not have some of the potential impacts on the very structure of government and beyond that the wider demographic of the Australian population, and it is in the potential demographic changes that a much wider topic opens up for discussion relative to housing and the development market.
And while some changes are not due until mid century, I stop today and think how in just over two decades the arrival of the superannuation guarantee levy is now, thanks in part to the growth of SMSFs, central to many aspects of the residential housing market.
And some seven years later we are still in part dealing with the GFC and so it does not take a crystal ball to appreciate that change can be both long-term and to a degree painful.
Shifts in Demand Shifts in Confidence
Post the audit report in Sydney this weekend auction clearance rates were reported at some 77%, that’s down a little on some recent weekend results, but still slightly higher than the last few months. However after the delivery of the federal budget on 13 May the combined impact on consumer confidence will come into sharp focus over the next few months.
Consumer confidence in Australia increased to 99.73 in April of 2014 from 99.46 in March of 2014 but has been on a falling trend over the last six months.
While the level of consumer confidence is a closely watched measure of the economy, shifts in demographics are far more subtle and until now have been less in focus.
It’s somewhat remarkable how the impact of the baby boomer generation has now started to consume the government’s attention, despite the fact that this age bracket was always going to cause pressure points as it moves out of work and into retirement, and the property market has been feeling the presence of the ‘boomers’ for some years now.
Demographic Touch Points to Watch
The proposed change to the retirement age, has grabbed a lot of attention because it has the potential to impact the entire population. This change could have varied and possibly unexpected effects on the housing market; delayed retirement could impact the demand for downsize opportunities, it could also force more people to consider selling sooner to fund the gap between their retirement and ability to collect the pension and linking the family home to any sort of pension means this would be a big change.
The family home would move into a different light and how a future inheritance is impacted could change the housing ambitions of many younger people. While changes to the cost of education could re-shape the sometimes already fragile prospects of first time buyers, as they have to fund a degree well into their careers. This could also lead to a lowering of employment prospects and impact the earning power and relevance of the middle class in the housing market.
While the audit did not directly comment on tax issues, there is an ongoing debate about the GST – an increase could impact the market, but if there is also a change in the relationship between the Commonwealth and the States, then we could see greater mobility and demographic changes across state boundaries.
Infrastructure and Privatisation
One clear result of the audit will be greater pressure for all governments to venture into a wholesale period of privatisation. This may well deliver some greater opportunities for the property development industry, and the potential sale of the Defence Housing Authority would be a very competitive process.
However the real test will be an assurance that a real improvement in infrastructure must result, if it does not, or if projects are badly delivered this could impact the continued recovery in the housing market.
This is a conversation set to take a lot of time and effort, and so I wanted to remind myself of what an audit of this kind sets out to achieve; "A systematic check or assessement, especially of the efficiency or the effectiveness of an organization." 
While demographics: "The characterises of a human population, especially the size, growth, density, distribution and statistics regarding birth, marriage, disease and death." 
With the audit touching upon so many key social issues, the flow onto demographics is certain and the housing market may well be impacted, at first indirectly by a possible drop in confidence, but in the long term more directly as demographics, incomes and taxes change.
The audit looks like the first step in an extended agenda of economic reform, and while there may be some unpopular fiscal measures taken in next week’s budget, it does appear that interest rates are set to remain low. Because any increase would boost the dollar and possibly shake consumer sentiment so for the immediate future property will remain attractive due to the long run of low rates.
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How will the Commission of Audit affect the residential housing market?

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.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"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.

[smartcode_project:default project_id=135096 project_image_fid=356818]

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."

[smartcode_project:default project_id=135096 project_image_fid=356828]

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."

[smartcode_project:default project_id=135096 project_image_fid=351104]

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.

[smartcode_project:default project_id=135096 project_image_fid=356822]

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.

[smartcode_project:default project_id=135096 project_image_fid=356826]

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.

[smartcode_project:default project_id=135096 project_image_fid=351102]

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.

[smartcode_project_cta:default project_id=135096]

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."

[smartcode_project:default project_id=4661 project_image_fid=372549]

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."

[smartcode_project:default project_id=4661 project_image_fid=314259]

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.

[smartcode_project:default project_id=4661 project_image_fid=372550]

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.

[smartcode_project_cta:default project_id=4661]

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.

[smartcode_project:default project_id=102717 project_image_fid=355297]

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.

[smartcode_project:default project_id=102717 project_image_fid=355293]

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;

[smartcode_project:default project_id=102717 project_image_fid=355303]

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."

[smartcode_project:default project_id=102717 project_image_fid=355304]

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.

[smartcode_project_cta:default project_id=102717]

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.

[smartcode_project:default project_id=5743 project_image_fid=372394]

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."

[smartcode_project:default project_id=5743 project_image_fid=953]

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."

[smartcode_project:default project_id=5743 project_image_fid=5374]

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."

[smartcode_project_cta:default project_id=5743]

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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