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While Australia celebrates 25 years of economic growth, or an expansion in GDP, one economist says the story is different for the average household as an increase in population takes a toll on living standards.
Commonwealth Bank senior economist Gareth Aird says in a report produced by the bank’s economics team that the focus on the headline GDP number is misleading, and a better measure would be the per capita growth.
Aird said while the focus on immigration has boosted consumption because “more people means more spending”, and hence GDP growth, population growth creates problems like overcrowding, traffic congestion and high housing costs.
The latest gross domestic product (GDP) figures for the June quarter, released in September, showed the economy growing at an annual pace of 3.3 percent.
"Despite the fact that the economy's growing at what looks like a healthy clip on the surface, the way that transfers to how households feel at the moment suggests that things aren't too crash," Aird was quoted by ABC.
Aird said the headline GDP figure ignores population growth, which automatically grows the economy but not the standard of living.
“If you've got more people, you've got more spending," he said in an interview for RN Breakfast.
“But what really matters for households is not the overall growth rate of the economy but how their incomes are growing."
He said a better measure for this purpose is real net national disposable income (RNNDI) per capita, which more closely reflects the income going to households and their capacity to buy goods and services.
Unlike GDP, which has been boosted by the rising volume of mining exports even though prices for those exports have slumped, RNNDI has been hit hard, and has been going backwards for most of the past five years when looked at per person.
He said governments focus more on GDP growth because it “benefits businesses that can take advantage of an ever growing population, or customer base if you like”. 
One of the economic arguments that has been used to support current immigration rates has been that it helps offset an ageing population.
However, the CBA report said this is only "kicking the can down the road", with the current working age migrants themselves ageing and leaving the workforce 20, 30 or 40 years from now.
Although Aird did point out the benefits to the Australian economy from immigration.
"If you look at the historical experience of Australia, there has absolutely been benefits to having pretty strong population growth," he said.
"But I think more recently we've seen some of the indicators suggest that those benefits are probably starting to wane and unless there's a commensurate lift in public investment, a look at housing affordability more broadly ... then I think the benefits to running a strong immigration program are questionable."
He said to make migration work, governments should also focus on building infrastructure such as more affordable transport and housing.
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prateek24-ezbwHMbNAk

Population growth fuels GDP rise, but lowers living standards: CBA economist

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A commercial freehold building in the heart of Sydney CBD has been brought to the market by CBRE.
Located at 296 George Street, the building is opposite Wynyard Station with its corner position well suited to a retail business.
The ground and first two levels are for lease while the basement level is occupied by Lee's Malaysian Restaurant (includes adjoining 300 George Street strata lot).
The building’s land area is about 82 sqm. 
Julian Choo and Tim Grosmann of CBRE are looking after the sales campaign.
The property last exchanged hands in 2013 for $5.8 million though it was listed for $6 million, according to RP Data. It spent 169 days on the market then. The vendor was Advance Bank of Australia.
<img src="/images/2016/10/17/SydCBD2.jpg" alt="">
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Commercial building suited to retail in Sydney CBD comes to the market

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Clouds of Montville Eco Resort, a Victorian-style resort on the Sunshine Coast Hinterland, has come to the market for $2.65 million.
Set on an area of 1.92 ha, <a href="https://www.realcommercial.com.au/property-hotel+leisure-qld-montville-502143778" target="_blank">the resort</a> comprises 10 apartments and four cottages (with approval for two more), a spa and sauna, swimming pool, a nine-hole frissbee golf course and other facilities.
The current owners had previous experience in hospitality, and made improvements to all aspects of the property and business, including the systems and websites which improved gross takings, says the description.
The owners are keen to sell the resort due to a family member's illness. Prior to them, the previous owners set up the resort over a period seventeen years.
The well presented property is also close to shops, markets, restaurants, art galleries, parks and waterfalls.
The listing agent is Jim Hughes of LJ Hooker.
<img src="/images/2016/10/14/Montville2.jpg" alt=""> 
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Clouds of Montville Eco Resort in Sunshine Coast on the market for $2.65 million

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An oversupply of new apartments in some regions in Australia over the next two years will pressure both real estate prices and rental returns from investment properties in these areas, says Moody's Investors Service.
The conclusions were contained in Moody’s report titled Apartment Construction Boom Poses Moderate Risk to Australian RMBS, which is based on the data in its supplementary excel report, Australian RMBS Exposure to Apartments in High-Density Regions. 
Around 230,000 new apartments are due to be completed across all the capital cities of Australia by 2018, according to Corelogic. This figure is more than double the annual average sales of apartments over the five years to April 2016. And more than half will be built in regions where there is already a large supply of existing apartments.
"Such a development will in turn raise the risk for residential mortgage-backed securities (RMBS) exposed to these 'high-density regions', but for Moody's-rated RMBS portfolio overall, the rise in risk will be moderate," says Natsumi Matsuda, an analyst at the credit rating firm.
"Specifically, with the Australian RMBS that we rate, there is a moderate overall exposure of 5.6% to mortgages on apartments in high-density regions," said Matsuda. 
"Furthermore, the risk posed to RMBS is mitigated by the level of equity that is available to absorb losses if borrowers default, as highlighted by the low weighted average loan-to-value (LTV) ratio of mortgages on apartments in high-density regions.” 
Exhibit 1 shows the exposure of the Australian RMBS portfolio to regions where, according to Corelogic, the largest number of new apartments is due to be completed over the next two years. The RMBS portfolio's largest exposures to apartments in these high- density regions are in the Sydney Inner City and Melbourne City regions, which are ranked first and third in terms of the areas with the most new apartments due to be completed over the next two years. 
<a href="/images/2016/10/13/Exhibit1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit1.jpg" alt="">
On LTV on mortgages in high-density regions, the current level is 62.5 percent, which drops to 47.6 percent after considering the increase in apartment prices.
Exhibit 2 below shows the five deals with the largest exposure to mortgages on apartments in high-density regions. In all of these deals, mortgage loans have low LTVs on weighted average basis, which means there is a material level of equity to absorb losses if borrowers default. 
<a href="/images/2016/10/13/Exhibit2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit2.jpg" alt="">
Exhibit 3 below lists the five deals with the lowest exposure to mortgages on apartments in high-density regions. These deals face the least risk from the increase in the supply of apartments in high-density regions.  
<a href="/images/2016/10/13/Exhibit3.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit3.jpg" alt=""> 
Melbourne suburbs have least additional equity to absorb losses
Of the high-density regions to which the Australian RMBS portfolio is exposed, mortgages in inner Melbourne have the least additional equity (7.6%) for absorbing losses, owing to the relatively low level of apartment price increases, says Moody’s.
Prices in the Melbourne City region have risen by just 5% over the last five years, compared with the 40% rise in Sydney apartment prices over this period.
<a href="/images/2016/10/13/Exhibit4.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Exhibit4.jpg" alt="">
A relatively high proportion of mortgages on apartments in high-density regions are investment (46.5%) and interest-only (31%) mortgages, which adds to the risk, says Moody. 
Investment and interest-only mortgages are typically riskier than owner occupier and principle and interest mortgages, because, among other factors, borrowers typically repay loans slower and will therefore build equity more slowly. 
In the RMBS portfolio, the slower repayment of housing investment and interest-only mortgages is evident in the higher LTVs of these loans when compared with the overall portfolio, as Exhibit 5 shows. 
<a href="/images/2016/10/13/Exhibit5.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2016/10/13/Exhibit5.jpg" alt="">
Furthermore, the large supply of new apartments due to be completed in high-density regions will put downward pressure on apartment rents in these areas and drive up vacancy rates, lowering the return for investors who rely on rental income to repay their housing investment loans. 
Rental yields on apartments in Sydney and Melbourne are already at the lowest levels in a decade. Such developments will in turn pressure mortgage performance.
 
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Rising supply of apartments in Australia to pressure prices, especially inner Melbourne: Moody’s

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Malaysian property developer UEM Sunrise Berhad has started construction of Conservatory, a 446-apartment project in Melbourne that will reflect the importance of the archaeological finds from the site.
Digging at the 9-23 McKenzie Street site uncovered over 250,000 artefacts in the former Mistletoe Hotel dating back to 1855.
<img src="/images/2016/10/13/Sunrise2.jpg" alt="" width="718" height="525">
Treasures from Melbourne’s Gold Rush era such as a gold nugget, early silver coins, Rising Sun military badges and other artefacts were recovered. The excavation was carried out by consultants TerraCulture Pty Ltd.
<img src="/images/2016/10/13/Sunrise3.jpg" alt="" width="727" height="486">
Jeremy Smith, principal archaeologist at Heritage Victoria, emphasised the importance of the excavation in unravelling a piece of Melbourne’s history.  
“These items signify the influx of wealth coming into Melbourne during the time of European settlement and the gold rush. We are incredibly fortunate to have had this opportunity to uncover these artefacts.” 
The $330 million Conservatory is UEM Sunrise Berhad’s second project in Melbourne and will comprise 446 units of one, two and three-bedroom residences on 42 levels. It will also have three levels of residential facilities including a pool, gym, private cinema and jacuzzi. 
<img src="/images/2016/10/13/i1.jpg" alt="">
Its first was Aurora Melbourne Central.
Hickory Group Pty Ltd (Hickory) has been appointed the builder for Conservatory, with construction expected to be completed by end 2018. Ninety percent apartments have been sold to date.
<img src="/images/2016/10/13/i2.jpg" alt="">
UEM Sunrise Chief Operating Officer (Commercial), Raymond Cheah, said “It is fitting that Conservatory’s history is rooted in the opulent Gold Rush era – positioned next to the lush Carlton Gardens. This project epitomises luxury, park-side living with its quality interiors and all the finer things in life such as a private jacuzzi, observation skydeck, private cinema and golf simulator.” 
<img src="/images/2016/10/13/i3.jpg" alt="">
Conservatory is nestled between the UNESCO World Heritage listed Royal Exhibition Building and Carlton Gardens.
Taking inspiration from the park, the exterior of Conservatory will resemble an elegant glasshouse, designed by Cox Architecture Pty Ltd, that will change colours with the seasons.
<img src="/images/2016/10/13/i4.jpg" alt="">
In paying homage to the site’s history, builder Hickory will incorporate some of the bluestone uncovered in the excavation into the building as a permanently installed piece of art, as well as display cases to showcase the selection of findings in Conservatory’s lobby. 
<img src="/images/2016/10/13/i6.jpg" alt="">
“Conservatory will no doubt be an amazing place to live, even more so knowing that we are all contributing to the next chapter of the area’s already rich history,” said Michael Argyrou, Hickory’s managing director.  
 <img src="/images/2016/10/13/i7.jpg" alt="">
 
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Construction starts on Conservatory, an apartment project with archaeological twist  

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A US-linked syndicate has closed the deal for Port Hinchinbrook in Queensland, which it plans to redevelop into a top marina destination for $450 million. 
The resort, located adjacent to Hinchinbrook Island and near Cardwell, was first developed by Keith Williams in the 1990s but was damaged in the aftermath of Cyclone Yasi in 2011. It fell into the hands of liquidators after the collapse of Williams Corporation in 2013.
The Passage Holdings, an Australian company linked to American businessmen Lewis Cohen, Stephan Pinto and Joe Korman, settled the deal for the resort on September 27 with liquidator FTI Consulting.
Company spokesman Bruce Goddard, director of Place Projects, said the path was now clear for The Passage Holdings to unveil its 10-year masterplan to transform the resort, which will be renamed Hinchinbrook Harbour and Resort.
Goddard said a number of issues had delayed the settlement, but the deal went through in the end. 
“It’s very exciting to be moving ahead with a development that will become one of Australia’s finest safe-haven marina destinations,” he said.
“The developers will begin dredging works on the canal and marina as soon as practical so locals and visitors can once again enjoy the great fishing and waterways of the Hinchinbrook Channel.”
Goddard said the settlement also paved the way for the appointment of an  independent third party body corporate to resolve the disputes between residents and the former owners and late developer Keith Williams.
“The proposed structure will bring to an end years of unrest and poor communication,” he said.
“Our natural assets and the strong north Queensland market set a positive tone for the future.”
Goddard said the masterplan for the development would be released soon and that the sales and marketing for Hinchinbrook Harbour and Resort already was in its early stages.
“We are close to opening an onsite sales office now,” he said.
Architecture firm DBI Design has been working on the resort’s masterplan for the past year.
Under it, the resort will boast a $45 million international fishing village, new marina, family resort, a water theme park, camp grounds, backpacker accommodation, and waterfront residential lots and apartments.
Since taking possession of the property last year, The Passage Holdings has spent more than $4 million on restoring and upgrading the resort and preparing the masterplan. 
The revival is expected to cost around $450 million but economic modelling forecasts more than $1 billion will be pumped into the Cassowary Coast region with its reignited tourism.
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US-backed syndicate closes Port Hinchinbrook deal

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Property manager Investa Office Management Pty Ltd has raised $600 million in equity and another US$150 million through a US private placement as it seeks to fund the redevelopment of 60 Martin Place in Sydney and pay down borrowings or acquisitions.
Investa’s flagship wholesale fund, Investa Commercial Property Fund (ICPF), acquired a 50 percent stake in 60 Martin Place with construction on the 40,000 sqm office redevelopment for $900 million underway and due for completion mid-2019. 
ICPF has also bought office buildings over the past 18 months with recent acquisitions totalling around $750 million, including a 75 percent interest in 420 George Street, Sydney and a further 50 percent stake in 1 Market Street, Sydney, taking its ownership in this building to 100 percent.
It said market conditions would continue to strengthen in the Sydney office market as vacancy tightens and the withdrawal of existing buildings gathers momentum, resulting in a reduction in incentives and delivering double digit effective rental growth over the last 12 months. 
“We are delighted with the significant recent equity commitments by investors. It repositions the balance sheet following a series of quality acquisitions in a very tight market, ensuring ICPF is well placed to fund the redevelopment of 60 Martin Place,” said Jason Leong, ICPF’s new fund manager.
“The new investments complement our portfolio and increase our tactical weighting to the well positioned Sydney CBD office market. The fact that there was further equity demand that was unable to be accommodated is a strong endorsement of the Fund and the quality of the assets.”
The firm said the A$600 million in new equity was received from both new and existing investors. ICPF will pay down its debt and move it back into the low end of its targeted gearing range. 
ICPF said its $4.1 billion prime office portfolio was arguably Australia’s highest quality portfolio, attracting more than $2.2 billion in new equity since 2010. 
The fund also finalised its debut issuance into the US Private Placement market, issuing US$150 million of 12 and 15 year notes, with US$75 million issued for each tenor. It offered a margin of US Treasury Rate (‘T’) +175 basis points for the 12 year and T+190 basis points for the 15 year. 
“This issuance is part of the fund’s broader debt strategy which is to diversify sources and maturity of borrowings and extend our overall debt maturity profile in a cost effective manner,” Leong said.
ICPF is rated A- by Standard &amp; Poor’s. National Australia Bank was the sole lead agent for the private placement.
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Investa raises $750 million to fund 60 Martin Place upgrade

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A small industrial unit with office space in Sunshine Coast’s Caloundra has sold for $225,000, a touch below vendor expectations of $235,000 plus GST.
The warehouse at <a href="https://www.realcommercial.com.au/property-industrial+warehouse-qld-caloundra+west-501899562" target="_blank">2/159 Mark Road, Caloundra West, Qld 4551</a> is part of a complex of six in Caloundra West Industrial Estate. 
It has a floor area of nearly 100 sqm plus 40 sqm of mezzanine space. The unit has a front office, kitchenette, onsite parking and other amenities.
It is close to Caloundra Road and CBD.
The selling agents were Alan Gary and Len Greedy of Ray White Commercial.
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Warehouse in Sunshine Coast's Caloundra sells below expectations

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Melbourne's first ever self-service market, in industrial Brunswick, dating back to 1930 — the same year famous racehorse Phar Lap won the Melbourne Cup — has sold under the hammer for $2.8 million.
The vendor had price expectations of more than $2.65 million.
The <a href="https://www.realcommercial.com.au/property-other-vic-brunswick-502098510" target="_blank">1 Tripovich Street</a> rendered brick building was built in the eclectic 'Spanish Mission' style, with its architectural flair contrasting with the established linear pattern of Victorian style shops and homes along Sydney Road, according to the property’s description.
The building - complete with rare timber Belfast truss roof structure - remains the only Spanish style market building ever built in Victoria and thus has special architectural, historical and social importance.
<img src="/images/2016/10/07/Brunswick1.jpg" alt="">
Set in a Commercial 1 Zone, the property is set on a land area of about 709 sqm.
The two levels of the building make for nearly 1,115 sqm of usable floor space. 
Four mezzanine studio apartments (with separate entrances) are spread across the east-facing front facade, returning a combined total of $51,000 per annum. 
The vendor has lodged plans with the council to have these one-bedroom units individually titled.
Along with the rest of the building, these apartments enjoy high occupancy rates due to their location right on the doorstep of cafes and transport.
The second half of the building (fronting both Tripovich and Ballarat Street) is not for sale. 
Inside the old Brunswick market, tenants include Bey Dance Studio and the vendor’s existing business Insegna Booksellers. There are separate offices, market stalls/cubicles, a designated kitchen/dining area and amenities. With existing leases already totalling a tick over $104,000 and much of the building either still available to be rented or taken up by the bookshop, a potential annual return of $200,000-$250,000 can be expected.
The selling agent was Jason Padula of Barry Plant.
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Melbourne's historic Tripovich St market building sells at auction 

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Brisbane and Melbourne have maintained their approaching the peak of market place in property valuation firm Herron Todd White's October 2016 industrial property clock, a simple broad brush means of suggesting where property markets are and the direction they are headed.
<a href="/images/2016/10/10/Landscape2.png" target="_blank">Click to enlarge </a>
<img src="/images/2016/10/10/Landscape2.png" alt="">
The peak of market slot still empty since the last industrial clock in July. 
"The industrial market is often a first step into the world of commercial investment for those graduating beyond residential, so it’s appeal as an asset class is broad," say HTW in their industrial market summary.
The two cities were at the same position in July as well. NSW's Coffs Harbour, which shared the same position with the two capital cities in July, has dropped out this time but is still a rising market. Sydney remains a rising market as well, along with Hobart.
Among the other capital cities, Cairns and Canberra remain at the start of recovery period in the industrial property cycle, while Adelaide continues to be at the bottom of the market. Perth too is unchanged and is approaching the bottom, same as July.
About the only change among the capitals is Darwin, which has slipped further from being a declining market to approaching the bottom.<a href="/images/2016/10/10/Landscape2j.jpg"> </a>
<a href="/images/2016/10/10/Landscape2j.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/10/Landscape2j.jpg" alt="">
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Melbourne and Brisbane industrial markets approaching the peak: HTW property clock 

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

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."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

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

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

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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.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

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

Prateek Chatterjee

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