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In a little over five years two aspects of real estate marketing have been transformed; the popularity of auctions in the private treaty market and the maturing of marketing new apartment projects off the plan.
For many private vendors auctions are now the number one way to sell a home and off the plan sales now dominate the apartment market, and there are many reasons why buyers have embraced these trends. While I want to concentrate on off the plan marketing, auctions share one key advantage and that is certainty.
When the gavel falls the buyer is certain that they now own that property. I think that much the same can be said for our off the plan buyers, and while the actual method of sale is clearly different today’s project marketing does I suggest deliver that same feeling of certainty and security and we can in part thank the GFC for this.
However, I do acknowledge that not that long ago buying off the plan was not always risk-free. But today buyers have made this a popular choice and I think in the main because of the quality of planning and marketing that goes into any new project and it is here that the impact of the GFC has had played a role. Post-GFC the requirement for a high percentage of pre-sales to 80% plus became the norm and in response developers realised the importance of quality marketing which buyers embraced.
Firstly a fundamental; buyers, whether they are owner occupiers or investors, can have the pick of apartments in a new development. They can in some cases personalise the interiors and there is an opportunity for capital gain if the market moves up between the contract date and settlement.
While it is true that there are some risks in purchases off the plan, including the fact that buyers are financially bound to projects that may in rare cases be delivered late in today’s market professional developers know and greatly value of their reputation. The delivery process is well managed and a majority of buyers are more than comfortable with the fact that time can be on their side. Time to organise the sale of an existing home, or organise finance or for a SMSF investor time to plan without immediately tying up all of their capital. In some but not all states there can also be stamp duty savings alongside the fact that stamp duty is usually a differed payment, and properties are secured with an interest earning deposit, which is usually 5% – 10%.
One final point in the buying process is the format and content of contracts; these are now very familiar areas of conveyance and are no longer seen as a hurdle for solicitors and conveyancers to negotiate on behalf of their clients, its all very transparent, a seamless and reliable legal procedure for buyers, including first time buyers.
The appeal of new
A key a feature of buying off the plan is the appeal of the new, a new building, but also in many cases a new community or a new development area where the wider prospects beyond the building itself are also very attractive. It’s also seen as an exciting process and buyers have readily taken to buying after the conduct of an ROI (registration of interest campaign) this process gives buyers ample time to look into every aspect of a project, an this is where much improved marketing support delivers results.
Off the plan no longer involves ‘second guessing’ – which in the past had been a criticism. The problem being that people did not know what they were buying, but this has not been the case for many years.
Marketing assets and the depth of information available to buyers is now very impressive. In fact for some major developers the sales path has morphed into a full brand experience that is totally focused on the buyer in a constructive and imaginative format. And when success is counted, or a project launches with stunning results it can all be traced back to quality.
Today’s off the plan market is constantly underpinned by quality and nothing is left to chance. Buyers have access to a wide range of assets from easy to navigate web sites and easily understood floor plans, to complete display apartments with detailed finishes options and this is an investment made at considerable expense and I think does act to re-assure buyers. I think it is also worth noting that even when there is strong demand for projects, short cuts are not being taken, marketing still remains a high priority.
This is important, because while buyers are now days very comfortable with off the plan marketing, standards still have to be always improved, an active market is not a reason to relax standards and the quality of marketing.
Wider horizons For buyers
Another tick for off the plan buyers is earned by the fact that thanks to the quality of marketing material and support many buyers now look well beyond their own home markets for opportunities. We now have projects sold to a cross section of buyers from almost any location and that includes offshore buyers.
While this part of the market was always there the quality of marketing has now made it very easy and we know that buyers from say Sydney are only to happy to buy off the plan in Brisbane or Melbourne, or an off-shore client will look at any location. This portability of location is also a great bonus for investors who now have the ability to access any market with confidence. We have come a long way from the days of a fabled ‘free flight’ to the Gold Coast or other location as a honey pot incentive to a potential client. Today the depth and quality of information is a foundation for great portability in the apartment market.
Off the plan marketing is now very attractive, it’s the norm for even the most inexperienced of buyers with standards, quality and innovation always increasing. The market is very comfortable with the ability to access varied projects and locations, with time to plan and with the certainty of a known price all supported by quality marketing.
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Why buyers rush off the plan marketing

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In today’s market what makes the great foundations for an exceptional residential development? 
While there are an array of possible ways to benchmark and answer this question that may well satisfy planners, developers, marketers and financiers, we are also faced with another question, "what makes a great project for the buyers".
Buyers face lots of choices and while they can easily access mountains of research and commentary, I still think that when we take a project to market we still need to answer this question. Easily. Even more so when we are talking about selling off the plan, where a focus on the elements of a project with great foundations, is a sound way to approach the market.  
Market conditions are always changing; today’s projects that sell-out in just hours, days or a few weeks, might not do so under tomorrow’s market circumstances. 
There are some key aspects to regard as our key project fundamentals, many of which are interconnected. 
Always from both the developers and buyers viewpoint are: Infill locations, the use of existing infrastructure, environmental credentials and sustainability, access to open space, design, equally the overall and apartment design, communications, the appeal of mixed use developments, the liveability of the development and finally sales appeal.
While I am not suggesting this is an exhaustive list, I do think that by looking at each element, we will then start to understand how they help form the foundation of great projects and why buyers frequently use such key attributes to inform their purchase.
Infill locations attract both positive and negative feedback, but these are locations are essential to helping plan any major city and they are the mainstay of most medium density development and (once the dust settles) are generally seen as a more desirable way to plan and deliver new projects. They not only create new homes but they usually are very good at connecting new neighbourhoods and so they are very appealing to buyers.
The use of existing infrastructure is naturally linked with the appetite for infill locations and local infrastructure will include rail links, schools, shops and parks, in fact any easy to access facilities. Buyers are quick to identify the importance of these facilities and it has to be acknowledged that in some locations new developments add user pressure, which is an area that both government and developers always need to plan and be mindful of. 
However the value gained from the use of existing infrastructure and where necessary improving facilities is easily illustrated because the costs can be massive. Some recent figures I saw from the USA make the point. There a modest extension to street curbing was quoted at US$78,000, a new set of traffic lights US$280,000 while a mile of new subway would cost US$1 billion, so the use of existing facilities via infill locations looks like an obvious choice.
Environmental credentials is a major topic, in some cases it’s a marketing must have and is made up of many varied parts from the familiar, like the use of solar and water recycling to the less common such as on-site energy generation. We also need to include the provision of new green space and access to open space, including passive open space like golf courses. However again here we can have a clash between the needs of already established communities with the desires of new residents, but for the developer this can be a great foundation element.
Design is another constantly evolving foundation element; it’s very topical and one of the items that is close to the heart of any buyer. Design covers a wide strategy from the masterplan of a development and its impact on the local environment into areas like apartment size, clever features, cross ventilation, variety and innovation, attention to detail; down to such everyday items like the number and size of parking bays and storage.
Communications is both a simple and complex area. Every buyer today expects to open the door of their new apartment, walk in, switch on their PC, laptop, tablet or whatever device they have and be instantly connect to the world.
Mixed use developments on the development star ratings offer some challenges, usually at the planning level, but they also offer great opportunity and generally they help create a more connected local community because they bring new variety that can be used by everyone, not just the new residents. In creating a dynamic mixed-use development variety is important because it can be exciting and a wonderful ongoing benefit to the entire community.
Liveability really brings together all of the aspects already outlined. There is no single pointer, it’s a combination of cultural, economic and environmental issues, and it also includes diversity and population demographics as well as civic and planning values. But it might also be seen as a sense of place, in reality a place where people want to live.
Sales appeal is the final point but from a marketing perspective, it’s the litmus test. Any project needs to be a commercial winner and the aim is to inform the marketing message, but to also help buyers in their own minds answer what really makes a great development.
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The foundations of a great residential project

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The purchase of domestic real estate, and in particular residential real estate, is a topic that frequently attracts a lot of attention.
That’s nothing new; some of the same ‘concerns’ we hear and read about today have all been aired before. At various times and across different markets we have, for instance, seen big in-flows of money from Japan and the Middle East.
However offshore investment into our housing market always tends to be a touchy subject. I think that we should not see this as threatening or abnormal and as far as new projects are concerned, the impact of these buyers needs to be seen in the greater context of the total market.
It is unfortunate that currently any negatives surrounding this debate are being fuelled by a number of factors. Key among these is the reality that the inflow of funds is not aligned with our general market conditions. So as we see prices increase, and in some markets this may be impacting first time buyers, some blame is being attributed to offshore buyers. But there is also a clear benefit from the fact that demand in total is now driving a big increase in construction activity, and that is at a time when the local economy needs that stimulus.
Key motivations
Part of the reality of this trend is the fact that across Asia and in particular from China there is a weight of money available for investment. some of that money is regardless of any policy settings, naturally going to flow into our residential property. But are the key motivations of buyers necessarily any foundation for concern? I suggest that these buyers are in the main driven by motivations that we are all familiar with.
Accepting that almost all markets now operate on a global basis, offshore buyers will be motivated by quality of life, economic stability, good infrastructure – this includes both hard infrastructure like roads and everyday services such as power and water, but also soft infrastructure and a big item there is education and medical facilities. Lastly offshore buyers are attracted by political stability. A quick tally would clearly give Australia a big tick on all of these items and so it’s a good and appealing place to call home.
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There is clear benefit from the fact that housing demand is now driving a big increase in construction activity, and that is at a time when the local economy needs that stimulus.
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We also now have in Australia inter-generational changes that are reinforcing family ties and these are a big influence. it’s worth keeping in mind that we have seen this trend before. In particular as post-World War Two and post Vietnam brought about new waves of population growth.
I think that it’s easy to identify with these motivations, and also like most of us, it is the stability of the Australian lifestyle that is a strong appeal.
SENATE REVIEW
However now, and somewhat predictably, The Treasurer has asked the Senate <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/index.htm" target="_blank">House Standing Committee on Economics</a> to inquire into and report on Australia’s foreign investment policy as it applies to residential real estate.
A key starting point is the principle of Australia’s foreign investment policy, as it applies to residential property, is that the investment should increase Australia’s housing stock and as such this includes new developments that aim to deliver benefits to the local building industry and its suppliers. Which is now starting to happen.
Off-shore or foreign investors cannot generally buy established homes; however, temporary residents can apply to purchase one established dwelling to use as their residence while in Australia.
Despite these conditions and in view of some of the concerns already outlined the Committee has been asked to examine:
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<li>The economic benefits of foreign investment in residential property;</li>
<li>Whether such foreign investment is directly increasing the supply of new housing and bringing benefits to the local building industry and its suppliers;</li>
<li>How Australia’s foreign investment framework compares with international experience; and</li>
<li>Whether the administration of Australia’s foreign investment policy relating to residential property can be enhanced.</li>
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This looks like a quick review with the Committee’s report due in early October 2014.
LET’S NOT FORGET OTHER POLICIES
If as it appears the Senate Review is partly in response to helping keep homes affordable in particular for the FHB market, then it would also be an ideal time for government to look at how much government charges and red-tape adds to the cost of a home.
Stamp duty for example is levied on the GST already built into the cost of a new home, and development delays almost defy reason without any real benefits.
Could all levels of government be more engaged in creating a positive environment for new housing by direct leadership and by ensuring a more collaborative, results focused view among decision makers that directly or indirectly impacts housing supply and costs.
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Offshore buyers are here to stay

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Over recent months we have seen a number of high profile residential projects going to market and achieving spectacular sales results, with entire buildings or releases quickly sold out. The market is responding to strong demand driven by a major shift in demographics, local and off-shore investor appetite for property and a market that is still characterised by undersupply, in some markets chronic under-supply. However as a result of this strong demand matrix one group, the first home buyer (FHB), appears to be missing out.
This is not only apparent in many off the plan markets, but is also a stark factor for established homes and in NSW the FHB market is down to 9% of activity, and so the question is should we be doing more to help first time buyers into the market?  In particular at a time of low interest rates these buyers should be more active, but despite some limited help and concessions they are not.
Tough times for the FHB are not only confined to the Australian market, there have been similar concerns in the United Kingdom, where a new range of measures to help have recently been introduced and the big change was to extend assistance beyond the new build buyer. The UK’s so termed Help to Buy schemes now include established homes. As our government appears to be shying away from almost any sort of assistance for anyone, the UK example heads in the opposite direction with a package of assistance.
Mortgage guarantee
Here’s how it works, since October this government scheme was extended from only newly built homes to include established homes up to a value of £600,000 (that’s about A$1,003,000). In part this shows you how unrealistic the current local concessions at a ceiling price of $650,000 are. Buyers need a minimum 5% deposit, they have to borrow from a participating lender and it must be the buyer’s only property.
The government for its part guarantees repayment of the mortgage to the lender, and the scheme is expected to run for some three years. With many local suburbs (185 plus in Sydney) now looking at median prices of $1m this sort of package would be welcomed in the Sydney market.
Equity loan
This government helping hand in the UK is very different and nothing like this has been seen here, apart from a very small number of ‘one-off’ housing co-operatives around in the 1970s. Here’s how these equity loans work. They are limited to homes, new homes valued to £600,000 being purchased by first time buyers, who must have a 5% deposit. The government then kicks in 20%, and here’s the interesting point, the loan is interest free for five years. So the first time buyer then only has to find 75% of their loan.
After five years the ‘equity loan’ attracts a fee of 1.75% of the loans value, which is adjusted each year to the UK equivalent of our CPI. The 20% loan has to be paid back when you sell, but that’s 20% of the sales price, not the original loan – hence the government and the UK taxpayer share in the capital growth of the home. Here such equity loans, possibly linked to superannuation have been ‘talked’ about, but that’s it.
Sometimes I do question the rigid instance that personal superannuation is locked up away from home buyers. Yet via self-managed funds, some super can be invested in real estate, which possibly compounds the plight of some first time buyers. In the UK these equity loans have been around since April last year.
New buy assistance
This is another scheme linked to new builds and involves co-operation between private lenders and some major builders. The scheme is limited to new homes valued to a maximum of £500,000 and is open to buyers with a minimum 5% deposit.  The basic idea is to make available to these buyers more attractive loan rates, which are usually only accessible to buyers with big deposits. This is a private not government backed idea.
Shared ownership
This is another idea floated locally, but is not common. The idea is that via the participation of private developers and housing associations, the FHB buys a percentage of their new home; usually 25% and then they ‘rent’ the rest at below market rates. As more money is available by a process known as ‘staircasing’ buyers then increase the percentage of the home they are buying and over time own more of the home and pay less rent.
To be eligible the rules are that you must be a first time buyer, or someone who used to own a home, they can no longer afford to buy that home and you need to earn less that an average of £60,000 – a little more if you live in London.
More imagination needed
These few ideas look like someone applied a lot of imagination to the problems of the first home buyers. Here we have failed to do so.  Our banks make huge profits, they could afford to be a lot more innovative, and why do we not use superannuation savings more in this area? The social benefits of home ownership are obvious and the benefits of a big boost in home building construction would as is already evident, help the economy even more to move from the mining boom, so why are we not doing more?
 
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What can we do to help out first home buyers?

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It’s impossible to escape the reality that our employment market is in a flux. Big name employers like GMH, Toyota, Ford, Alcoa and Qantas are in the spotlight and there have been others over the last six months. Now we have a headline unemployment rate of 6%.
However we are also being told not to worry, in particular by the federal government, more rewarding jobs will be found, or in fact have to be found. We have also seen the participation rate fall as Baby Boomers in particular start to leave the workforce and it appears some may be doing so earlier than expected, with the irony that the current boom in real estate prices might be making it more appealing to ‘cash-out’ and retire early.
But despite what would usually be seen as negative news, many capital city real estate markets remain buoyant. This brings to mind a question – has the market become disengaged from employment data (at least in key markets) on the foundation of low interest rates?
Let’s consider some history
We all appreciate that the unemployment rate is influenced by a range of factors in particular the government’s policy framework for the labour market. Of possibly greater importance currently is the impact of a range of social factors like; working hours, a willingness to move locations, undertake further training or remaining in work at all.
If we look back over history we see that there was a substantial increase in the average unemployment rate from the mid to late 1970s, compared with earlier decades, between the Second World War to the mid-1970s, the unemployment rate fluctuated around a longer-term average of just 2%. This looks a remarkably low figure by comparison to now being at 6%. But there was in fact an even lower point at just 1%. Then in the period from the mid-1970s to the early 2000s, the unemployment rate fluctuated around a longer-term average of 7.5%. There was a high of 10.9% in 1992 – which makes 6% look pretty good!
While unemployment will always move around because of economic, institutional and social factors, these factors can change over time, and they change the structural rate of unemployment.  In 2014, we appear to be more accepting of a 6% rate as more ‘normal’ and not a reflection of short run or cyclical swings in economic activity. If this is the ‘normal’ then we may in reality see real estate markets less influenced by unemployment and more so by interest rates.
History also appears to repeat itself and in the mid-1970s we saw poor macroeconomic policy management, especially in the face of the first oil price shock, a much more rigid labour market and strong union influence, much higher inflation and a sharp increase in real wages relative to productivity. A lot of this sounds familiar as we move from the mineral infrastructure boom and massive period of change for manufacturing, although it is apparent that wage growth is running at less than snails pace.
Today we are looking at a reduction in employment opportunities and rising unemployment as businesses are reacting to the increased cost of labour, and a strong dollar. However, for the big picture impact on real estate markets we also need to take a closer look at interest rates, inflation and the unemployment level.  
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International</a>.
           
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How important is unemployment in today’s residential market?

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Is it the hip pocket (or if you like it, the head) or the heart that currently rules the residential property market?
While not always expressed in those exact words, I suggest that almost every time we plan a project or plan a marketing campaign this thought is always lurking in our thinking.
Marketing almost always involves a big dose of emotion – it’s the fuel of many an auction. We know that even the most hardened consumer will at times be in a sort of conundrum. Are they being ruled by their heart or by their heads? And when we have markets that are full of change, with limited opportunities (supply), does this lead to anxiety, or is this simply the excitement of the times?
Markets are tied up with many different emotions. It’s the stuff that fuels the constant media attention and chatter, and we are seeing this now almost everywhere. Buyers and vendors are anxious not to miss out on the best price, on that ideal home or block of land, or on a great investment. The mixture might be different, but it creates a very active atmosphere and I suggest this makes a good starting point to consider how we might best approach development, marketing and buying residential property in 2014.
So with the sway of both our hearts and heads in mind, let's look at the three familiar topics of infrastructure, investment and supply. If we do that, I think we can shine a light on some key aspects of the market and thus balance out some of the ‘emotions’ we see developing.
Infrastructure
No matter if we’re dealing with an inner-city apartment or a new housing estate – the need for infrastructure is a constant.  Developers can find their projects delayed or made less attractive, and buyers have always had infrstructure as their priority. Without the right services and facilities, they stay away or they look for big price incentives.
Infrastructure is also linked to employment opportunities and with possibly higher unemployment headed our way this entire area will be a big hot spot in 2014. We are also set to see the community turn from expectation and planning to a fervent desire to see real action, which in some areas is happening.
Almost without exception buyers are, along with much of the general community, looking for delivery, be that new light rail, improved motorways, more schools or even very big ticket items like a new airport for Sydney. These projects need to move into the build phase. While there might be some planning issues, private developers will then move to deliver their part of the agenda with new shops, offices and industrial facilities. Again we need to remind ourselves that the current Prime Minister has stated that he wants his government to be known as the ‘infrastructure government’.
However, given how important this topic is, there must be room for better and quicker funding, and this might be a fertile area for SMSF investments. In 1994 there were 70,000 such funds, while today it’s in excess of 510,000 worth $520 billion – so infrastructure bonds might be welcome. At the same time, this would help secure new development which is another key area of investment sought out by the SMSF sector.
From a buyer’s point of view, quality infrastructure has always been a constant need, no matter how far you go back in history buyers always want well located homes, close to shops, employment, schools and with transport access. In the city they might also want access to parks, bike lanes, child care and cafes – that’s only going to continue in 2014 and we all know that emotions run high when infrastructure is lacking or under pressure. Developers understand this reality but the lag between government responsibility and the delivery of private facilities needs to be closed.
Investment
In 2013 we saw a strong trend towards some parts of the residential market being dominated by investors, and at the same time there has been a big drop in the numbers of first time buyers in the market. Investors have also been active at a time when prices have also been on the increase, again this is not ideal for the FHB. Although a rise in consumer confidence over the past six months has in part been linked to higher house values, it is often said that Australian consumers are more content and happier to spend when home values are on the increase.
Some parts of the investment market have also been strongly influenced by off-shore buyers, and with recent falls in the Aussie dollar this is a trend that may even accelerate in 2014. The SMSF sector is also unlikely to have any less of an appetite for real estate in 2014, although there are some concerns being raised about over-lending to such funds. However as Sydney in particular retains its spot as the third most unaffordable city in the world, after Hong Kong and Vancouver our residential market remains an attractive investment. Here, the key question is this: will population growth and demand remain strong enough to absorb supply, both as owner-occupiers and of course with enough people to rent investment stock?
In 2014, the flow-on impact of a robust housing market with improved levels of construction will be a key economic imperative as we move from reliance on the mining sector, which any tax review will almost certainly take into account.
Supply
There is no doubt at all that in 2014, we will be dealing with a demand led environment in almost every market. In some markets, like Sydney, the lag in supply may take a decade or longer to re-balance and that will be captive to a great extent to what happens with infrastructure and investment. We have also yet to consider how climate change may soon start to impact future supply, extreme summers and more bushfires might place increased cost pressures on development and this may in fact further hinder supply.
Demographics will also have a very big impact on supply, the delays with changes to planning laws in NSW are in part a demonstration of how sweeping changes to demographics are clashing. Established areas are going to have to adjust to the realistic demands of a growing city. An argument about more apartments in established areas, or more homes on the outskirts of the city is partly being sustained by a shift in demographics.
In any community we can see how different waves of immigration are in part leading to greater acceptance of apartment living. In 2011 apartments accounted for 25.6% of where we live, but currently approvals are running at 75% in favour of apartments and so within 20 years 50% of us may well be living in apartments.
If the need for more housing is to be satisfied, no matter where people want to live, then despite the hurdles involved government planning has to respond and developers in turn need to deliver a quality of product to meet demand and thus help to create valued communities.
In 2014, there will also continue to be huge demand for new land releases. In June 2013 land sales reached an eleven-year high, partly reflecting that fact that supply has been running at about 20% per annum below the level of demand and there is also no retreat from the strong desire for detached homes alongside more demand for apartments. It’s simply the varied requirements and aspirations of the demographics involved.
The outlook for 2014 is complex, but given the nature and size of the market that is not unusual or unexpected. Interest rates, the fate of the Aussie dollar, rising unemployment, the Federal Tax Review and Budget and China’s growth prospects are big picture issues.
Planning and infrastructure delivery are also big issues, while demand will continue to out-strip supply. However, if robust demand pushes prices ever higher then investors, who are usually more flexible with their buying options, will start to look at all options across the country.
Any of the points discussed are major topics in themselves, however, developers need to ensure that new product meets the changes in demand that are always taking place with shifting market demographics, while committed buyers are sure to remain fully engaged with their market and should seek a good relationship with local real estate agents and keep both head and heart in balance.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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Is it the head or the heart that currently rules the market?

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With Australia Day over the silly season will soon be behind us, although for much of the real estate market the silly season in 2013 arrived late, and for many, may have been short lived.  For the residential property market the second half of 2013 was remarkable and hectic, in particular for Sydney. So now as we move into 2014 it’s a good time to highlight some of the key factors that might influence conditions over the next 12 months, for buyers, developers and marketers alike.
But before we leave the silly season completely behind, I was interested to research where the idea first came from. I found that, according to the Oxford English Dictionary, references date back as far as 1861, so this is by no means a new idea. I also found that there is great deal of information published about how to both best enjoy and also ways to avoid the pitfalls of the season. In some round about way this made me think about all of the advice that is offered to real estate buyers.
When looking at the silly season it’s a mix of suggestions like considering alternatives (to alcohol), never drinking on an empty stomach, quench your thirst thus discouraging you from over doing it with the champers and beer. Then you could take a comprehensive B vitamin and antioxidant formula, drink a glass of water between drinks and before going to bed and aim to be in bed before 12am. Then some final suggestions include the use of gentle exercise each day such as walking that will help boost your mood and burn some of those extra kilojoules. And if the season is really getting the best of you, well you could always seek the aid of a naturopath or other health professional for help to manage the demands of your silly season. All of which are strategies that can help you be at your best.
A good plan to avoid any headaches
What these somewhat colourful and quaint ideas offered me was I felt the ideal preamble to a look at the many influences that will impact the residential market in 2014. For example it will pay to stay alter to the varied alternatives that different markets offer, it will also pay dividends if buyers do their fair share of footwork and planning and for sure it will be very wise to get the best support and market information available.
There can be unforeseen consequence of the silly season for some people. Most are easy to deal with, but as we move on from a very positive year in 2013 the market across 2014 is going to be influenced by a wide range of circumstances, and as we often see some factors, like supply will be localised while others, like taxation and planning policy will be as a result of structural change.
Now and next week I would like to highlight some of the central issues and then also look at some marketing trends. However from the start we need to acknowledge that many of the key points will all be connected to a few central issues. These will include house prices, the fate of the Australian dollar, the continued adjustment away from an economy powered by the mining boom and changes to employment and how this also relates to demographic shifts. While in NSW proposed changes to planning regulations and strata laws are set to deliver localised, and some would argue unwelcome pressures on the local apartment market.
Higher house prices here to stay
House prices have always driven a great deal of news, comment and chatter – this will without any doubt continue and amplify. However the headlines can only reflect the reality that market settings for the next few years, are now more or less predictable and they cannot be easily changed. In 2014 we will continue to work with the fact that the dynamics of the housing market are very complex and in the absence of any sort of big policy shift by government no important or far reaching changes can be anticipated.
Where the housing market is concerned either directly or indirectly, current governments at both state and federal level are not given to bold policy shifts. Policies like the floating of the dollar in 1983 or the introduction of capital gains and the fringe benefits tax in 1985 are possible, but we will have to wait until May this year to see if the current tax review results in any big policy shifts.
Over the last six months, as auction clearance rates broke many previous records, house prices were in many areas only now recovering from the impact of the GFC. But clearly price increases were impressive. Over the previous decade the average house price increased by 2.3% while last year Sydney prices grew by 11.4%, Perth 8.6%, Melbourne 6.8% and Brisbane 4.1%. Key factors driving prices were low interest rates, continued lagging in the supply of new homes, apartments and land and a big increase in demand from off-shore buyers, that in some markets like Sydney and Melbourne was a major factor. Now as we look at 2014 these factors are set to continue, but we need to keep an eye on how related issues like the exchange rate and employment could impact these areas.
We know that most Australians are always happier if the value of their home increases, and this boosts general confidence – which was a factor in 2013, but it is also true that lost jobs do weigh heavily on sentiment.
There is of course the fate of first home buyers to consider when we reflect upon the impact of higher house prices. This is an emotional issue, and may currently be somewhat under the radar of the general market, but with only 12.3% of total home loans going to FHBs in November, an historic low, the fate of the FHB may soon move from an economic to a wider social issue.
A key concern, not really helped by low interest rates, is the ability to save the 10% deposit most people aim for when entering the market, in 2014 we may see more pressure for more FHB assistance. While the deposit gap for some may come via help from Baby Boomer parents, who are themselves trading down, this is only a very limited solution for the lucky few.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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The key market factors for 2014

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As we start to reflect upon 2013 and the last six months in particular, there are signs that 2014 will be another busy year, partly because in NSW changes to strata law and planning legislation will impact the residential market and apartment projects and buyers in particular.
While there will also be some big-picture economic hurdles I would like to briefly update these two important reforms. After extensive consultation NSW Fair Trading has now released its position paper on strata title law reform and a final bill is due to be introduced in early 2014.
As might be expected for such a complex topic there are approximately 70 proposed reforms.  It is of interest that most are consumer driven, designed to benefit all occupiers of strata schemes, owners and tenants. The reforms also aim for greater transparency and accountability in the management of strata schemes impacting committee members, how proxies are used; and the disclosure of third party interests and connections.
However for future developments the reforms seek to impose major and significant obligations on developers, giving owners greater rights, but also they will impose additional costs and liabilities on developers.
One big change will be a requirement for a developer to commission an independent defects report between 12 and 18 months after the occupation certificate for the building has issued. Another much talked about change will see developers of high rise strata buildings (more than three storeys) required to pay a bond or provide a bank guarantee equal to 2% of the contract amount for the construction of the building. This obligation for developers is a significant new obligation with cost consequences for developers. It is not yet clear if this obligation will apply to existing projects that have already commenced construction.
Generally maintenance is a core concern and all developers will be required to prepare a maintenance schedule aimed to help an owners corporation understand how to best maintain the building. Owners corporations will have the right to take action over unrealistic strata levies during the initial period where under some circumstances an order to pay compensation could be awarded against the developer. Future project planning and financials will need to allow for these new costs.
The collective sale and extinguishment of strata schemes
As greater numbers of older strata buildings become ripe for re-development the extinguishment of those schemes has become an issue. There are some areas where less than perfect projects were built in the 1960s and 1970s and these areas need to be updated. The position paper now provides the detail on how this is to be facilitated for the termination of strata schemes.
It is interesting to note that since 1961 only 826 strata schemes have been terminated out of a total of 72,000.  To help avoid excessive costs and delays the proposal is to legislate for a new and simpler process, which an owners corporation can follow with disputes under the Land and Environment Court. Apart from these few key items the reforms are far reaching and will affect much of the property industry and the apartment market will be impacted.
No smooth sailing for planning reforms
After widespread dissatisfaction and negative community feedback the NSW government will undertake further consultation before the NSW Parliament reconsiders the new planning bill in 2014. Debate on the bill was deferred by the NSW Legislative Assembly on 28 November 2013, until next year.
While the NSW government is committed to delivering a new and modern planning system that also allows quicker decisions to be made and hopefully provides more housing, the legislation remains ‘stuck’ after more than two years of policy development.
Given the importance of creating more housing in NSW and the big impact that will have on the local economy, it still looks like mid-2014 before these important issues are resolved, creating doubt for both the development industry and the wider community.
In NSW these are two issues we need to keep a keen eye on, while at a federal level the government’s review of the tax system in 2014 may well throw up some other, possibly bigger issues that could soon be impacting development and investment, with the promise that no areas will be ‘off limits’ to the review.
 
<hr>
 Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
 
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Strata law changes will have a big impact on the residential market in 2014

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We are currently in the midst of the strongest residential market since the GFC. Sydney and Melbourne in particular have seen a spectacular jump in market activity over the last three to four months. Auctions are at historic levels both in terms of the number of properties being sold and clearance rates. We are also seeing many new off-the-plan projects attracting what at times is frenetic demand. There are several key facts driving this activity, some of which are long-term and structural going way beyond a traditional market up-turn.
In mid January, looking ahead to 2013 I suggested here interest rates were set to be one of the key influences on every aspect of the residential market. This has proved to be the case with low rates, particularly over the last six months, impacting owner-occupiers and investors but also developers looking to fund new projects. Low rates have helped fuel demand and push prices up, while in many markets there is still a shortage of supply.
As we enter 2014 the question remains as to whether or not we have reached the bottom of the current low interest rate cycle, however seeking an answer to this question will not be any easy task as further cuts might not be good news indicating a much weaker local economy and bad news for employment.
However beyond interest rates, I think that a much bigger factor and one that has received little attention is the internationalisation of the local residential market. Like the share and currency markets, we are now looking at being a part of the worldwide demand for quality residential real estate. Offshore buyers are having a big impact and that trend is not going away any time soon. If Sydney and Melbourne are to be world-ranking cities then we have to accept that offshore demand will continue. Cashed up buyers from Asia in particular are attracted to our markets, often seen as a safe destination but also we are an appealing lifestyle destination.
We should not overlook the appeal of blue skies, fresh air and open space.  This offshore interest is not only confined to individual private buyers, but also developers and also now, in a trend I pointed to some 18 months ago we have seen the AMP join with Japan’s banks to enter the local home loan market.  And so we see international involvement across all areas of our residential development market. This trend is not new and other countries like New Zealand and the United Kingdom have either introduced or considered some curbs on foreign buyers but the same measures have been suggested for us, and given our very close links with Asia I do not think this is a credible idea.
In the UK prime London residential property has seen a big spike in prices with local officials looking at ways to generate more revenue. The idea is to impose a capital gains tax on foreign owners.
While UK residents have to pay CGT when reselling all but their main home, non-resident property owners do not. For example a UK-based buyer of an investment property or second home for £1m and then sold it for £5m. The UK resident would pay capital gains tax of £1.1m, assuming they were in the top tax bracket. An offshore investor, by contrast, is currently exempt from CGT. The lost revenue is proving tempting as Treasuries look for new revenue, and to some extent this action might also cool some areas of demand.
Offshore buyers are not going away
Offshore interest, no matter what fuels the demand be it lifestyle or investment considerations, is here to stay and just like the floating of the Aussie Dollar 30 years ago, the market may never be the same. Our markets are now considered desirable to a wide range of off-shore buyers and this is a major trend that will impact prices and demand.
Other big factors remain the rapidly changing demographics of our cities and shifts in lifestyle that all combine to create new pressures that will heavily influence markets and how infrastructure is delivered. Both the issues will continue to be very big topics in 2014, alongside how efficiently and where we create new supply.
However there is currently no indication that any sort of new policy measures are planned here to curb off-shore demand or investment. However another big ticket item next year will be the federal government’s tax review and how this might address the very big question of housing affordability, otherwise this issue could shift from a financial policy to one that has far reaching and possibly negative impacts on social policy and cohesion. First time buyers despite very low mortgage rates are now very much absent from the current market, they are being locked out by varied and complex factors.
While offshore demand is a structural change, I think that borrowers of all kinds might also have seen the best of low interest rates, but continued and very spiked demographic changes and the internationalisation of our markets will continue to be the big drivers of apartment demand and development in 2014.

<hr>
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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Australia's residential market has become an international commodity

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Over <a target="_blank" href="https://www.propertyobserver.com.au/developments/the-buyer-s-journey-the-gap-between-today-s-reality-and-future-plans-is-what-the-sales-centre-must-fill/2013112566584">the last few weeks</a> I have looked in detail at some of the <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-fundamentals-of-a-creating-a-great-buyer-s-experience/2013111866420">key project marketing tools</a> we use to create and <a target="_blank" href="https://www.propertyobserver.com.au/residential/delivering-a-top-buyers-experience-real-estate-has-to-compete-like-any-other-service/2013110466153">enhance the buyers experience</a> which in turn is the key factor that underscores brand values across every project, our marketing brand and personal brand.
Now to finish this topic I want to take a detailed look at personal service. Because I believe this is where success is created and in such a highly charged market one on one service is still the winner, not only in the short-term but also for the long-run, after all market conditions are always changing and a good ‘personal brand’ is a real asset. Not only for the individual, but also across the board impacting every aspect of a project and the entire sales path.
Clearly what happens at a face to face level will influence the buyer’s experience and so I always give high priority to supporting and training the every member of the sales team. And my definition of team is extensive and is not only confined to the direct selling team members. To create a service focused environment I fervently embrace team sales training, structured (but not dogmatic) sales paths and importantly a diverse and structured role for sales mentoring and most importantly recruitment policies that looks at always finding leaders.
Seven seconds to make a first impression
One of the main reasons personal service is so important is the fact that you only get one chance to create a good impression. The moment that a new buyer, or for that matter a potential new client, sees you, both their and your brain gets busy asking a thousand questions: Is this someone to approach or to avoid? Friend or foe? Hard work, likeable, or a genuine prospect? And according to lots of reports this all happens in the first seven seconds of meeting.
We can all appreciate that in a sales environment first impressions count. While none of us can avoid making snap decisions with good training a robust sales path we can aim to make these decisions work in our favour. Likewise getting off to a good start also naturally puts the buyer off to a good start.
All important first impressions are more heavily influenced by non-verbal cues, but the environment can also be important. As <a href="https://www.propertyobserver.com.au/developments/the-buyer-s-journey-the-gap-between-today-s-reality-and-future-plans-is-what-the-sales-centre-must-fill/2013112566584">discussed last week</a>, this is where a well-planned and designed sales centre will speak volumes in helping to make a great first impression.
Key ways the team can make a positive first impression
It’s not my intention here to create a how-to manual, but I think it is always important to remind ourselves of the importance of keeping on message when we engage buyers. A big point is to always adjust your attitude, always be interest and fresh. People pick up on our attitude and that includes a late arrival at the sales centre ten minutes before closing time!
Our personal posture and a smile will always say “I’m friendly and approachable” and you’re welcome to be here, I think we always need to keep in mind that for most buyers these first few steps can be a little hesitant and with a degree of emotion involved.
Another golden rule, that none of us are too smart to overlook is to always make eye contact. I read once that if you open your eyes slightly more than normal to simulate eye contact we signal of recognition and acknowledgement, and that’s how we want every buyer to feel, isn’t it?
Then we come to the moment to shake hands and with an attentive body posture establish rapport. But as we all know in varied cultural circumstances we need to be respectful of the other person’s space and culture, and as we deal with more and more offshore buyers there’s a need here for awareness and sensitivity.
And so if you’ve got just seven seconds it’s good to remind ourselves of how when you think about it seeing these simple ideas in action is frequently the secret of great salespeople, they do it by nature, but I am also sure they think about every new encounter so as not to waste an opportunity.
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It all starts with recruitment
To finish off this important topic, I hope that I have established that the face to face relationship that is established between the consumer, the potential buyer and the sales person that he or she deals with is a make or break point in every project’s sales cycle.
While no sales person will intentionally risk a potential sale with poor service, the stakes for the project, your brand and reputation are high and so the recruitment of the sales team is a very important step. It is a step that will greatly impact on the success of any project.
The sales team should be matched to the project and team members should be used in different ways and times to try and ensure the best results. It should also be kept in mind that even the best team players will become stale. This is another aspect of recruitment that has to be managed. It’s important to remain fresh and keep ideas with lots of energy.
While a sales team member might have a great deal of project knowledge and history care is needed to make sure they always remain bright, active and committed to the project. It can be possible to start to develop blinker vision and this can slow sales and might not show up until it’s too late, with the damage done.
External agents or in house teams
Sales teams can be recruited and then employed in-house by the developer; or the developer can appoint a real estate agent to market the project; or like some developers, they appoint accredited agents working under the project’s branding. There can also be a mix of internal teams and external agents. My choice is for a clear cut full service agency model as the most accountable and successful way to market projects.
In either case, for a major project the way the sales force is structured and managed is of great importance. It’s the biggest part of the marketing dynamic.
Both options have their own advantages and both have some disadvantages and while consumers may not see any difference in the delivery of the service they receive, there is a need to be sensitive to this appointment within the overall marketing plan.
We all know that buyers are, and I am sure we can all agree on this, the lifeblood of every project. At times markets are full of activity, selling well, running smoothly and this is usually not by accident. While big picture market dynamics are always a force, so too is the service we give and how we manage and deliver our project marketing roles, we should never take buyers for granted no matter how markets are performing, and I am sure that the most successful sales people never do.

<hr>
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
 
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Face to face contact can make or break the buyer's experience

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

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

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

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

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

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

Peter Chittenden

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