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Mortgage customers’ satisfaction with the big four banks was in the negative and lower than non-mortgage customers, according to latest data from leading market research company Roy Morgan.
Despite some tentative signs of improvement in satisfaction among the big four’s mortgage customers in January, overall they remain well below the satisfaction levels of the smaller banks’ mortgage customers, according to Roy Morgan.
The research looked at the ‘Net Promoter Score’, that measures advocacy levels among mortgage customers.
All four — Commonwealth Bank, Westpac, ANZ and NAB —  showed improved satisfaction among their home-loan customers in January but only the ANZ improved over the same time last year.  
ING Direct tops on the list of satisfied mortgage customers (of the 10 largest banks) with 96.3 percent, followed by Bendigo Bank on 93.2 percent. These two remain well clear of the field, with the next best being Bankwest (85.9 percent) and Bank of Queensland (82.5 percent). 
Among the big four, CBA has the highest mortgage customer satisfaction at 79.7 percent while Westpac has the lowest  at 75.4 percent.
Overall, satisfaction level of the big four banks’ personal customers in the six months to January 2017 was 80.1 percent, up fractionally on 79.9 percent in December.
The best performer among the big four with regards to mortgage customer NPS was the CBA (minus 12.7), followed by ANZ (minus 13.8), Westpac (minus 20.4) and NAB (minus 20.7). 
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Bendigo Bank was the best performer when it came to NPS among the top 10 banks, scoring (plus 32.3). Banks with the highest mortgage customer satisfaction scores also had positive NPS scores for these customers, the research noted.
“Despite home loan rates having been low for a considerable time, it is somewhat surprising that mortgage customer satisfaction remains lower than that of other customers, who are likely to be adversely impacted by low deposit rates,” said Norman Morris, industry communications director at Roy Morgan Research.
“The smaller banks have shown that it’s possible to achieve much higher satisfaction levels among mortgage customers than those achieved by the majors, even though they’re operating in the same interest-rate environment.”
Roy Morgan says its extensive modelling goes deeper than just looking at recent events such as adverse publicity and interest-rate movements, which are generally short-term impact on satisfaction and advocacy levels, and the research firm relies on more than 50,000 interviews p.a covering all aspects of financial behaviour.
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Big four rated negatively by mortgage customers: Roy Morgan

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RBA Assistant Governor Michele Bullock has sounded a caveat, saying the essence of macroprudential policy lay in recognising potential system-wide risks and reacting accordingly, implying the bank and APRA could further tighten lending rules to contain buildup of potential risks from a runaway housing market.
“We are continuing to monitor their ongoing effects and are prepared to do more if needed,” she said at a speech during an event organised by financial news service Bloomberg.
Her speech ‘Has the way we look at financial stability changed since the GFC?’ looked at the history of the RBA’s role since it was formed to the way it monitors the financial system now in the aftermath of the global financial crisis in 2008.
“At the big picture level, the way we look at it hasn't changed that much. But we are even more attuned to the tail risks than we were and more attuned to the need to take action if we sense that the risks are building,” she said.
Her words come amid concerns of property prices picking up sharply and the steps taken by the Australian Prudential Regulation Authority to cap investor lending not having the desired effect after an initial slowing of growth.
The OECD recently warned that a crash in Australia’s housing market could plunge the country into depression.
She stated that the central bank’s mandate was “to ensure that financial disturbances in any part of the financial system do not ultimately threaten the health of the economy”. 
Coming back to the question at how GFC has changed its outlook towards financial stability, Bullock said, “It hasn't fundamentally changed the way think about financial system stability, though we now have a deeper understanding of the nature of the risks and the potential channels of contagion.” 
She added that the bank had “also built significant capacity to better monitor risks both in the banking and non-bank sectors”.
“The experience with losses in commercial property in the late 1980s, the collapse of HIH in 2001 and the housing boom in the early 2000s perhaps made Australian regulators a little more circumspect. APRA had therefore maintained a strong supervisory focus on the Australian financial institutions.”
She cited that APRA reacted to the risks that were building in the housing market in 2014, especially from investment lending, but putting in place an annual 10 percent cap on growth in investment lending for banks.
“There was very strong demand for residential housing loans, particularly by investors. Price competition in the mortgage market had intensified and discounts on advertised variable rates were common. There also seemed to be a relaxation in non-price lending terms. The share of new loans that were interest only was drifting up and the growth of lending for investment properties was accelerating. Unsurprisingly in this environment, the growth in housing prices was strong, particularly in Melbourne and Sydney.”
“The regulators judged that more targeted action was needed to address the risks – to put a bit of sand in the gears.” 
“So APRA indicated that it would be alert to annual growth in a bank's investor housing lending above a benchmark of 10 per cent. It also set some more prescriptive guidelines for serviceability assessments and intensified its scrutiny of lending practices.”
“ASIC also undertook a review of lending with a focus on whether lenders were complying with responsible lending obligations.”
But while the measures worked for a time, “the resilience of both borrowers and lenders has no doubt improved…” and “the initial effects on credit and some other indicators we use to assess risk may fade over time.”
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Bullock says RBA 'prepared to do more' to curb risks in housing market

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The North Shore office markets of North Sydney, St Leonards, Macquarie Park and Chatswood are reaping the benefits from an increase in domestic and offshore investment. 
Low interest rates, major new infrastructure and rising effective rentals underpin this investment demand, according to a new report by CI Australia on the North Shore.
Major new North Sydney CBD developments scheduled for completion in 2018/19 will pre-lease to major corporates and create an onflow of service tenants to North Sydney. B Grade rentals and values will rise due to stock withdrawals, says the report.
“A supercharging of densities and land uses will continue as the NSW government continues to focus on mixed-use development surrounding existing infrastructure,” says the report. 
The Sydney Metro project and improved road infrastructure will boost investment and consolidate the position of North Sydney and the North Shore markets as the essential elements of Sydney’s economic arc.
“Expect further downward pressure on yields for North Shore secondary assets as effective rental growth crystallises.”
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The Market 
The Sydney North Shore is a collection of four commercial markets located close to the Sydney CBD. 
The area extends from the Northern end of the Sydney Harbour Bridge through to major northern metropolitan areas, such as Macquarie Park. 
Characterised by its dynamic central core, The North Sydney CBD has historically been regarded as the focal point of the North Shore office market. However, in terms of total office space, it has been eclipsed by Macquarie Park, which now sits as NSW’s largest office market outside of the Sydney CBD. 
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The North Shore area is an active environment for developers, investors and tenants seeking opportunities made available through its broad and diverse markets, offering a variety of size, use and growth potential. 
When combined, these four markets provide a total 2,295,907sqm of commercial office space. These include: 
1. North Sydney 822,496sqm 
2. Crows Nest/St Leonards 315,542sqm 
3. Chatswood 278,919sqm 
4. Macquarie Park (MP) 878,950sqm
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Sydney's North Shore a big draw with commercial property investors

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The fourth quarter of 2016 saw investment deals in the hotel space fall 31.5 percent to US$1.79 billion from Q4/2014 (US$2.61 billion), with 51 hotels across 11 countries sold in the Asia Pacific.
However, the total value of investment sales rose by 13 percent year-on-year to US$9.87 billion in 2016 with around two-third of transaction volumes coming from three countries: Japan, Australia and China, according to the latest Savills research on the hotel sector.
Australia had the second highest transaction volumes after Japan with US$1.66 billion, 16.8 percent of the region’s total volume. However, transaction volumes decreased by 31.5 percent YoY, the briefing said.
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The year gone by, 2016, was a slow year for major transactions in Australia, with hotel transactions in excess of $2.23 billion (US$1.66 billion) and 62 hotel assets changing hands, a decrease of 31.5 percent when compared to 2015, says Savills. 
The average deal size this year was $35.9 million, compared to last year’s $48.3 million. Only eight transactions were recorded in Sydney and Melbourne.
The large majority of the transactions was in the second and third-tier cities such as Surfers Paradise or Cairns. 
“Due to tight cap rates in core Tokyo, Hong Kong, Singapore, Sydney and Melbourne transactions, we began to see increases in market share for traditionally non-core assets as investors searched for yield farther afield,” said the Savills briefing Hotel Sales &amp; Investment. 
Foreign investor buying remained active, with two major transactions in the last quarter of 2016. The first was the sale of the Travelodge Docklands Melbourne for $107 million (US$81.9 million). The sale price reflected an initial yield of sub-6.0% and was acquired by Singapore’s Sing Holdings. 
Another major transaction was an Ibis portfolio, consisting of 15 hotels (1,595 rooms), for a total value of approximately $200 million (US$148.5 million), which was bought by Accor Hotels from the Abu Dhabi Investment Authority. 
The portfolio includes the 250-room Ibis Melbourne and the 200-room Ibis Sydney Airport, as well as five Ibis Budget hotels in Sydney, two in Melbourne, and one each in Newcastle, Dubbo, Coffs Harbour, Canberra and Brisbane Airport. 
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Australia in second spot for hotel deals in Q4 2016: Savills

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The iconic Australian Exchange Centre, home of the ASX, is soon to hit the market with price expectations of more than $325 million. 
The listing of the building at 20 Bridge Street in the heart of Sydney’s financial district makes it the first institutional grade Sydney CBD core offering since June 2013. 
The Malaysian pension fund Kumpulan Wang Persaraan is selling the Exchange Centre.
The A-grade 20,329 sqm commercial building comprises 13 upper levels of office accommodation, ‘Exchange Square’ retail on the ground level and an auditorium at basement level.
The building is 96 per cent leased with a long Weighted Average Lease Expiry (WALE) of more than seven years and managed by Investa.
It last exchanged hands for $185 million in 2011, being snapped up by an offshore institutional investor, according to RP Data.  
The ASX Group occupies more than 45 per cent of the building, with a lease expiry of more than 11 years.
The listing agents are Simon Fenn, Ian Hetherington and Ben Azar of Savills.
The high profile asset is only one of six buildings valued at over circa $200 million and which is 100 per cent owned within the CBD core.
“This is a rare opportunity to purchase 100 per cent interest in the Sydney core and we expect a strong mix of both local and offshore interest, likely to come from China, Hong Kong, Singapore, Japan and parts of Europe,” said Simon Fenn, managing director NSW at Savills. 
The Exchange Centre is minutes from Circular Quay and Wynyard Train Station. 
 
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Sydney’s coveted Exchange Centre lists through Savills with price hopes of more than $325 million

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The banking regulator has nudged banks to improve their standards in commercial lending, saying sound underwriting standards are important for the safety of the banking system and the financial system as whole. 
The letter from the Australian Prudential Regulation Authority comes in the wake of its review of the commercial property sector in 2016 after a surge in prices owing to more offshore demand from sovereign wealth funds and pension funds.  
The letter starts with the statement that commercial property lending “has historically been a source of significant loss for banks, both in Australia and overseas,” and goes on to say that lenders have not properly managed their risk profile of for commercial lending due to inadequate data, poor monitoring and incomplete portfolio controls. 
The APRA said it expects authorised deposit-taking institutions (ADIs) to improve their capabilities in this area, and has written to individual lenders about their specific requirements.
The note states that under “current market conditions, it is important that the Boards of ADIs are conscious of the settings for underwriting standards and portfolio controls, and in a position to challenge as appropriate”.
Sound credit underwriting standards are fundamental to the safety and soundness of lenders, as well as the stability of the financial system as a whole, it adds. “This is particularly the case in the area of commercial property lending, which has historically been the source of significant credit losses for the Australian banking industry. “
It said the review found that many ADIs fell short of expectations regarding portfolio controls for commercial property, driven in part by "an underinvestment in information systems, leading to challenges in extracting portfolio data".
The letter states it is “critical that ADIs maintain appropriate standards through the credit cycle, and are prepared to tighten those standards as circumstances dictate”. 
It noted that though there was a general tightening of underwriting standards, especially for residential development lending, it hadn’t been uniform and lenders would do well to ensure that they are not unduly accepting greater risk as other lenders step back. 
Banks have been particularly careful about lending to investors in the residential sector, with Commonwealth Bank and its subsidiary, BankWest, recently taking steps to curb refinancing of investor loans.
On commercial lending, the regulator said it expects ADIs to manage “not only the risk of individual loans but also consider build-ups in risk at the portfolio level”. 
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APRA cautions banks on poor commercial lending standards 

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Newly formed management company, Crystalbrook Collection, will invest $370 million into the development of three hotels in Cairns. 
The timeline for the projects will see a 5+ star hotel become operational each year for the next three years.
Crystalbrook Collection CEO Mark Davie said the investment was in response to the expected spurt in tourism in Cairns.
“We believe that Cairns is in need of high quality hotels. Our developments are set to respond to anticipated growth in tourism as highlighted by recent Smith Travel Research reports,” he said.
Statistics compiled by Smith Travel Research for the 12 months to January 2016 showed a 74.7% occupancy rates in Cairns, up by 8.6% and double digit growth in revenue per room available, with growth figures coming in at 15.1%.
Cairns developer Prime Group will develop the hotels from concept to conception. The project pipeline includes:
137 Esplanade — A 264-room hotel, previously operating as Rydges Tradewinds, will be redeveloped to create a 311-room hotel tower with a 12-storey tower built alongside. The Great Barrier Reef inspired development will play host to a rooftop bar and lounge. Beginning construction in 2017, the property is set to be operational by July 2018.
163 Abbott Street, Cairns — A 4,000 sqm greenfield block located in the city centre will hold two towers, the first being a 222-room hotel with function rooms, restaurants and bars. The second would be a 110-room apartment complex that will be released on the market. Development will begin mid 2017 with completion expected February 2019.
85 Esplanade (Bellview) — A waterfront esplanade location will hold a new hotel (constructed on the site of a previously existing hotel and office suite). Construction on the 300-room hotel will begin late 2018 with operations expected to begin October 2019.
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Each development will have a minimum $100 million invested with the overall project expected to inject $900 million into the economy. 
Davie said the collection would be self-managed, turning down offers from major luxury hotel chains to manage the assets. 
“We held significant discussions regarding management with several brands, both leading luxury operators and white-label groups, however for a growing brand focused on authenticity, self-management was determined the best option.”
Once operational, the hotels will join Crystalbrook Collection’s recently acquired portfolio of tourism entities - Crystalbrook Lodge, a lodge experience in Northern Queensland and M.V Bahama, a 28-million luxury charter yacht based in Port Douglas. 
The company also has investments within the Queensland pastoral industry, owing an 85,000acre working cattle station, with a recent announcement indicating a further $20 million-dollar pastoral industry investment in the immediate future. 
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Three 5-star hotels planned for Cairns

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WeWork, one of the world's fastest-growing co-working businesses, has arrived in Melbourne, following on its entry into Sydney last year. 
The co-working firm is leasing into the iconic art deco building at 401 Collins Street owned by fund manager Impact Investment Group, taking the building’s rooftop and the entire nine floors of commercial space, said a media release.
New York-based WeWork was founded in 2010 and has grown fast to set up more than 120 shared work spaces across 32 cities globally. The firm opened its first office at Sydney’s 5 Martin Place in the heart of the city’s central business district last year. 
Its arrival in Melbourne is part of a rising trend of co-working spaces in the city. Last year, Hub Australia opened Victoria’s largest coworking space, Hub Southern Cross, in Melbourne, spread across 3,900sqm and two floors of the historic Mail Exchange building.
Liberman-family backed Impact Investment Group (IIG) bought the building for $32 million in 2014 and is currently refurbishing it. The makeover includes restoration of 401 Collins’ heritage stone front façade, mechanical upgrades and improving its energy efficiency.
The 11-storey building was once commandeered by General Douglas MacArthur as his headquarters for US Army forces in World War II.
“This marks the start of a new era for 401 Collins. We’re proud to be setting up the next chapter in this remarkable building’s life,” said Impact CEO Chris Lock.
“It shows that these pre-war buildings, built to endure as they were, can still contribute to Australia’s move towards lower carbon emissions.”
Newly claimed space on the rooftop and in the basement will see the net lettable area (NLA) increase by 360 sqm, bringing the total NLA to about 6,291 sqm.
WeWork’s managing director, Asia Pacific, Ole Ruch, said Melbourne is home to startups, big businesses, and creative entrepreneurs “pioneering innovation” nd it was a “natural next step for WeWork”. 
The Hon Philip Dalidakis MP, Victorian Minister for Small Business, Innovation and Trade said, "We welcome global co-working provider WeWork to Melbourne's thriving startup community.”
IIG is also in talks with two Melbourne restaurateurs with plans to establish a new hospitality brand on the ground floor.
Current tenant, Roy Morgan Research Ltd (RMR), is expected to move out of the property in late 2017. 
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Co-working giant WeWork expands into Melbourne

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Adult children inheriting or gifted wealth from their parents are more likely to start businesses, hold bachelor’s degrees and have more money in the bank, says a new study. 
 
The report A new look at the channels from housing to employment decisions, by RMIT University and Curtin University researchers working on behalf of the Australian Housing and Urban Research Institute (AHURI),
 
The report was authored by Melek Cigdem-Bayram and Gavin Wood of RMIT University and Rachel Ong of Curtin University.  
 
 explored how inter-generational wealth transfers, which are typically financed through housing wealth, influence the education and work careers of beneficiaries. 
 
The report shows that although the proportion of beneficiaries in the labour force is roughly the same as non-beneficiaries, a significantly higher proportion of beneficiaries are self-employed, said Professor Wood.
 
“Young Australians that receive inherited wealth and parental cash transfers financed from housing wealth are being helped by booming house prices,” Professor Wood said. 
 
“They have more financial assets that can act as a buffer to meet income shocks, and collateral to relax borrowing constraints. Therefore, they may be more likely to take risks, like financing their own business ventures.” 
 
Nearly 1.8 million Australians inherited money at least once between 2002 and 2012, with the average amount of each inheritance being $79,000. 
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 Beneficiaries of parental cash transfers also have average bank deposit account balances that are more than double those of non-beneficiaries, and their average net investment income is roughly one-third higher, the report stated. 
Children who received cash transfers or bequests from their parents are also more likely to hold a bachelor’s degree.
While this may seem like good news for young Australians lucky enough to be recipients of housing wealth, this could entrench and even exacerbate inequality in lifetime economic opportunities, says Professor Wood. 
“Intergenerational transfers are an important feature of contemporary family life and housing wealth is an important direct or indirect funding source for these transfers,” Professor Wood said. 
“The evidence presented in this report confirms expectations that intergenerational transfers help beneficiaries to ‘get ahead’. 
“But if intergenerational transfers become increasingly important as a pillar supporting educational, housing and business start-up opportunities, policy-makers will need to heed the consequences for those children of less well-off parents who are bypassed by the intergenerational circulation of housing wealth.” 
 
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‘Bank of Mum and Dad’ helps kids also get ahead in education and business start-ups

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Plans for Melbourne’s tallest building — 322 metres — have been given the green signal by the Daniel Andrews’ government. 
James Packer’s Crown casino will expand its Southbank site to eight hectares for its $1.75 billion 90-storey tower.
On completion, the 1 Queensbridge Street site will have a 6-star hotel with 388 rooms, 708 apartments, a pedestrian skybridge and visitor attractions.
It will eclipse Eureka Tower by 25 metres. 
Planning Minister Richard Wynne, who had earlier taken a firm hand to curtail over-development of sites, approved the project – which is claimed to represent $2.1 billion in economic benefit - after 12 months of talks with the developer and Melbourne City Council, according to Fairfax Media.
Premier Andrews said the project would create 4000 jobs; 3000 during construction and another 1,000 once up and running.
"It's not just about height though, the quality of this design outcome, particularly the public realm benefits that will be accessible for all Victorians, really mark this out as a very, very special project," Andrews was quoted as saying.
But the decision was met with criticism from several quarters. 
Melbourne City councillor Rohan Leppert from the Greens said the tower "makes a mockery" of new rules for skyscrapers introduced by Wynne last year. This was, he said, "particularly due to the complete lack of setback to Queens Bridge Street and the sheer bulk of the building".
He also questioned why the public had not had any opportunity to have input into the tower decision.
Wynne amended the planning scheme in order to approve the tower, instead of the usual process of first seeking formal feedback from Melbourne City Council.
RMIT Planning academic Michael Buxton was also quoted in the report as saying Crown appeared to have created its own rules for the site.
"There is supposedly a rule in place for projects like this, but there are no rules, and the more powerful you are the fewer the rules," Professor Buxton said.
Crown and its joint venture partner Schiavello Group will pay $100 million towards a community package that will see a $25 million upgrade of Queensbridge square, and $15 million towards Sandridge rail bridge.
Construction is expected to start in 2018 and could take up to six years to finish. 
There will be no gambling within the building.
The announcement comes a day after an Auditor-General report found Victorian Commission for Gambling and Liquor Regulation oversight of gambling and money laundering at Crown Casino was inadequate, said the AAP in a report.
The VCGLR accepted the report and Andrews said if it needed extra government support he would "only be to happy" to provide it.
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Crown casino wins approval for Melbourne’s tallest tower

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

Joel Robinson

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

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

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

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

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

Prateek Chatterjee

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