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Rating agency Moody’s has sounded a caveat for banks in Australian, Canada and Sweden, saying they are increasingly sensitive to economic shocks that could result from a slump in house prices after a more than 16-year surge. 
In the report, "Banking -- Global; Possible house price drop poses some risk for Canadian, Swedish, Australian banks," Moody's Investors Service compares the rise in house prices and household indebtedness. 
Between 2000 and 2016, house prices rose by 144% in Sweden, by 115% in Canada and by 113% in Australia. At the same time, household indebtedness has risen sharply, and mortgages now account for 63% of the banking systems' total loan books in Australia, 48% in Sweden and 39% in Canada. 
“Housing market corrections are often triggered by an economic slowdown, but even when they occur without any economic trigger, the attendant uncertainty can weigh on consumer confidence. This can in turn contribute to a slowdown in economic growth, which if severe enough can increase losses across the full range of banks' loan portfolios,” Moody’s said in the report.
“Between May and September 2017, we took rating actions in all three banking systems to reflect this risk, although lenders in these countries remain among our most highly rated globally.” 
Moody's base case is that house prices will continue to climb in Canada and Australia, albeit at a slower pace over the next 12 to 18 months, whereas preliminary data suggest that the housing market may already be turning in Sweden. 
“If there were a house price correction in any of these countries, the combination of protective features built into their mortgage markets, banks' underwriting practices and full recourse loans would limit mortgage losses,” it said. 
"Nonetheless, banks in these countries are exposed to second order effects," said Louise Lundberg, a Vice President and Senior Credit Officer at Moody's. 
Lundberg elaborated by saying that an economic slowdown that would likely accompany a substantial house price correction would lead to higher losses on consumer loans, commercial real estate loans, and loans to consumer-exposed corporates.
In most scenarios, Moody's said it expects banks in these three countries to be able to absorb any loan losses through their earnings. 
“Any impact on their capital levels, which we currently assess as strong to adequate, would likely be limited,” it said. 
Assuming unchanged earnings (although these would likely be negatively impacted in a stressed scenario), loan losses could increase to 2.2% of gross loans in Canada from 0.4% in 2016, to 1.8% in Australia from 0.2%, and to 1.4% in Sweden from 0.1% before eating into capital. 
In Australia, macroprudential measures recently announced by the regulator will likely constrain credit growth, particularly growth in loans to property investors, who account for around 35% of all new mortgages. These measures, along with more stringent underwriting criteria, are likely to reduce customers' borrowing capacity. Overall, we expect the rate of house price appreciation over the next 12 months to slow. 
Rising house prices have led to a sharp decline in housing affordability in all three countries (see Exhibit 2). 
<a href="https://www.propertyobserver.com.au/images/2017/11/21/Exhibit2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/11/21/Exhibit2.png" alt="">
Canadian, Swedish and Australian household debt has also risen strongly (see Exhibit 3). Household leverage is highest in Australia, where it reached 212% of net disposable income in 2015, and has risen further since. This compares with 183% in Sweden and 176% in Canada (2016 data). 
<a href="https://www.propertyobserver.com.au/images/2017/11/21/Exhibit3.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/11/21/Exhibit3.png" alt="">
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Australian banks among international lenders exposed to second order housing impact: Moody's

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Two fashion and accessories tenants have signed up for new spaces within the popular Puckle Street retail strip in the inner Melbourne suburb of Moonee Ponds. 
Casual wear label Sportscraft has leased at 63 Puckle Street, while 66 Puckle Street has been taken up by fashion accessories and handbags retailer Colette by Colette Hayman. 
Sportscraft signed a three-year deal with further extension of three more years at $95,000 per annum net with 4% increases for the 200 sqm space, which was offered for the first time in four decades.
Colette by Colette Hayman will move into the 150 sqm shop on a five-year lease with a further five-year option and pay $80,000 per annum with 4% increases. 
The lease was negotiated by Fitzroys agent Terence Yeh.
He said the strong results and long leases demonstrate tenants’ confidence in the area. 
“Puckle Street’s limited amount of spaces available - totalling around 150 shops - offers businesses greater access to the local catchment population, further underpinned by the number of residential dwellings introduced to the area in medium and high-density developments.” 
There are more than 1,500 apartments within the Moonee Ponds Activity Centre in various stages of planning and development, generating confidence among businesses for the retail strip’s long-term viability. 
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Clothes and fashion retailers sign leases in Moonee Ponds retail strip 

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National Australia Bank (NAB) has sacked 20 bankers and disciplined another 32 for selling home loans to customers whose eligibility may have been in question.
NAB said in a media release it had “commenced a remediation program for some of its customers, after a review identified their home loan may not have been established in accordance with NAB’s policies”.
Around 2,300 home loans since 2013 have been identified as submitted without accurate customer information and/or documentation, it added.
The bank became aware of the matter in October 2015, and advised ASIC in December 2015 after an initial high-level review. 
“What occurred was unacceptable. We have investigated this matter thoroughly, and, as we have always said, whenever we find issues we will investigate them, fix them, and hold people to account – and we did,” said Andrew Hagger, NAB’s chief customer officer, Consumer Banking and Wealth.
Following the investigation, 20 bankers in New South Wales and Victoria have been sacked while another 32 bankers had “consequences applied” including pay cuts.
Many of the customers who took the loans in question are from overseas and NAB has has commenced writing to them asking them to participate in a detailed review of their loan, which may include verification of documents submitted at the time of their home loan application. 
It said affected customers may be offered compensation as appropriate.
NAB said it is working with ASIC to ensure the remediation program provides fair outcomes for customers. 
“The remediation program has been designed with reference to the methodology applied by the Financial Ombudsman Service, and with NAB’s standard approach to compensating customers. NAB will engage an independent expert to undertake regular audits of the remediation program, and will update ASIC every two months on its progress,” said the media release.
“I want to assure all of our customers that we have improved our systems, processes and programs as a result of what occurred here,” Hagger said.
The changes will apply to NAB’s Introducer Program, including enhanced governance and eligibility criteria.
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NAB sacks 20 bankers for incorrect documentation on 2,300 loans

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Two residential properties in the historic suburb of Millers Point, including Sydney’s first ever walk-up apartment building and an entire row of period terrace duplexes, will be sold through auction on December 14.
There is a price guide of $9 million to $9.5 million, which will be the second most expensive Millers Point disposal, after a block of 12 apartments at 44-48 Merriman Street and 56-62 Bettington Street sold for $12.3 million in 2016.
They are being sold off by Property NSW on behalf of Family and Community Services as part of the Millers Point sales programme to fund social housing. So far, the sales have delivered more than $467 million.
As of August, 655 new social housing dwellings have been completed and 422 dwellings are under construction, Property NSW said in a media release.
‘Stevens Buildings’ at 73 Windmill Street (picture above) is of architectural importance and is recognised by the NSW Trust as the first residential apartment building to be constructed in NSW.
Designed by renowned architect Joseph Alexander Kethel (1866-1946), the heritage building sits on a 1,802 sqm site and comprises 11 apartments (nine x one bedroom and two x two bedrooms) capturing views of the Sydney Harbour Bridge, Garrison Church and Observatory Hill.
It was built in 1900 as a boarding house on the site of the former ‘Live and Let Live Hotel’ and was the first walk-up block of flats in Sydney.
Some apartments offer dual aspect and flow through. All have open balconies with the ground floor with its own courtyard.
The other building, 74-80a High Street, comprises eight two-bedroom period terrace duplexes divided into two blocks each comprising four apartments on a 539 sqm island site. 74-80a High Street is expected to fetch about $8 million to $8.5 million.
The block is one of a group of early twentieth century workmen’s apartments built by the Sydney Harbour Trust in the early 1900’s.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/11/10/74-80aHighSt.jpg" alt="">
There is scope to transform the apartments to their original condition, subject to Conservation Management Plan (CMP). The solid brick construction boasts deep verandahs, spacious kitchens, living and dining areas, with the first floor duplexes also comprising roof-top drying terraces with panoramic views across Barangaroo, Balmain and Darling Harbour.
Both addresses will be sold in one line (separately) via public auction through Robert Lowe and David Hickey of Savills Australia and Richard Shalhoub of Sotheby’s International Realty on behalf of Property NSW.
“This is a truly unique occasion for investors and developers alike to own a piece of Sydney’s rich heritage” said Robert Lowe of Savills.
Richard Shalhoub of Sotheby’s International Realty added that there was potential to transform the 1900’s historical masterpiece ‘Stevens Buildings’ into luxurious residences.
“There is actually tremendous scope to restore and transform both assets which are zoned as R1 General Residential, which will provide housing needs for the community and maintain the existing land use pattern of predominately residential use and we expect interest from both local and offshore investors and developers” he continued.
Separately, McGrath Estate Agents have also started marketing the following properties that are to be auctioned on December 6:
<ul>
<li>40 Merriman Street - one bedroom terrace</li>
<li>42 Merriman Street terrace - one bedroom terrace</li>
<li>125 Kent Street - four-bedroom terrace</li>
<li>46-48 Argyle Place - five-bedroom terrace</li>
<li>88 Kent Street terrace - four-bedroom terrace</li>
<li>61 Windmill Street terrace  - three-bedroom terrace</li>
<li>70-72 High Street - block of four apartments, each with 2 bedrooms</li>
</ul>
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Sydney’s first walk-up block of flats for sale in Millers Point

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Australian home buyers spend an average of $1,618 on the cost of physically moving home, equating to $863 million a year, says a recent ING research.
The average total cost of moving was based on 1.6 million households moving in the last three years. 
Relocation costs includes the cost of packaging, removalists, cleaning and reconnecting utilities.
Half (50%) of Australian home buyers do not budget for costs associated with moving, while 48% said they spend over their estimated budget, according to ING’s Cost of Moving Home report.
The research was conducted by Galaxy Research on behalf of ING in September 2017 with a sample of 602 Australians aged 18-64 years, distributed across Australia. 
“When saving to move home it’s important to put aside some money for the actual move itself. Our research shows many Aussie home buyers are left empty handed by the unexpected costs of moving from one home to another,” said Tim Newman, ING’s head of product. 
The costs extend to other areas as well. Nearly 3.24 million working days in total are lost every year from homebuyers taking time off work to pack, move and unpack, the report said.
More than half (59%) of Australian home buyers said they took time off work to move, with the average amount of leave taken per person being 3.5 days. 
Many (53%) of the respondents were frustrated with the extra costs associated with moving home. 
Top of the list was ‘the extra trips you have to make to get things’ (33%). Following this, ‘when things are broken or scratched’ (24%), ‘extra removalist fees’ (13%) and ‘insurance costs’ (8%). 
Newman suggested that the cost of moving homes could be reduced by almost $1,000 if home owners chose the DIY approach. 
“While the average cost of moving is $1,618, if you are willing and able to move without a removalist, the cost is significantly less: an average of $624 according to our report.” 
Home buyers can also recoup money spent on the cost of moving by looking at other ways to save when it comes to the costs associated with their property. 
According to research on switching by ING, Australians who switched their home loan provider within the last two years made an average annual saving of $1,073 per household per year. 
“Home owners might want to look at switching their home loan to get a better deal, particularly when they move, considering the savings that can be made,” said Newman. 
“When this saving ($1,073) is offset against the average cost of moving home ($1,618), home buyers can effectively recoup quite a significant proportion of the cash spent on moving fees.” 
Newman’s top three tips for saving costs on moving homes are: 
<ol>
<li>DIY – Save on the cost of moving home by doing it yourself. The average cost of moving independently is $624, compared to the cost of having a removalist do everything – that’s pack, move and unpack – which comes in at an average cost of $3,655. 
</li>
<li>Consider switching your home loan to recoup expenses – Aussies who switched their mortgage in the last two years have, on average, saved more than $1,000. If you have a home loan, it is worth considering your options.  
</li>
<li>Have a garage sale – Moving presents the perfect opportunity to spring clean your belongings. Organise a garage sale to sell any unwanted items before you move, reducing the amount of items to be packed, as well as offering the chance to recoup some cash ahead of those unexpected moving costs.</li>
</ol>
The research was conducted by Galaxy Research on behalf of ING in September 2017 with an online permission-based panel.  
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Aussie home buyers spend an average $1,618 on relocation: ING  

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A two-level Victorian offering with potential for further development in Richmond on Melbourne CBD’s eastern fringe is set to go under the hammer on November 1 with price expectations of more than $2.25 million.
Located at <a href="https://www.realcommercial.com.au/property-offices-vic-richmond-502581762" target="_blank">121 Burnley Street</a>, the property boasts an address in one of Melbourne’s most popular restaurant, fashion and entertainment precincts.
The building includes a reception area, conference room, eight individual offices, kitchen facilities and toilets on the ground floor, and a large boardroom, kitchen, balcony and three individual offices upstairs.
The 439 sqm site, zoned Industrial 3, has frontage to Burnley Street and rear access via North Street.
The marketing is by Teska Carson’s Luke Bisset and Michael Taylor along with Jeffrey Richardson of Richardson French.
According to the agents, the property will be offered with vacant possession and provides an opportunity to invest in arguably Melbourne’s premier inner-eastern property market. 
Bisset said the area had benefitted from a number of high profile residential and commercial developments, driven by population growth and the attraction of Richmond’s well documented retail and entertainment offerings, as well as its proximity to the CBD.
“It is ideally suited to an investor or owner-occupier seeking a well-presented commercial property in a great location with the benefit of the potential for further development (STCA) and the prospect of capital growth,’’ Bisset said.
Strong enquiry is expected for the property.
“Property in this precinct is very popular with investors and that popularity has intensified in recent times as the purchaser market has expanded to include SMSFs and foreign investors as well as the traditional smaller investor. And of course owner-occupiers have been much more prominent due to the favorable borrowing rates,” Richardson said.
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Victorian building in Richmond set for auction with $2.25 million expectations

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Doing something about improving housing affordability, particularly for people on low and moderate incomes, is difficult for Australian politicians. The core of the problem is simple: until those trying to buy a home outnumber those who own one, governments will not adopt policies to bring down house prices. As John Howard once observed, no-one came up to him complaining their house price had increased.
Given the public anxiety about the issue, particularly among young people, governments are showing renewed interests in doing something about housing affordability. So what sort of government interventions are effective? <a href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/289">A new report</a> from the Australian Housing and Urban Research Institute (AHURI), released today, explores these issues state by state. And some are clearly doing better than others.
<h2>What have governments been doing?</h2>
In the last six months governments at all levels have released housing affordability plans. The Victorian government released a <a href="https://www.vic.gov.au/affordablehousing/about">broad proposal</a> with interventions <a href="https://theconversation.com/what-a-difference-a-month-makes-but-victoria-can-still-do-more-to-get-housing-and-planning-right-74233" target="_blank">across the housing continuum</a> (see figure 1).
<img src="https://images.theconversation.com/files/188495/original/file-20171003-3124-hqtdt8.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">Figure 1: A housing continuum. Author provided
The state with the largest housing affordability problem, New South Wales, released a package of measures <a href="https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/" target="_blank">in June this year</a>. The cornerstone of the plan is a reduction in stamp duty charges for first home buyers and increasing availability of some grants for the same group.
Most economists agree that these measures are likely to put <a href="https://www.domain.com.au/news/prices-will-rise-for-victorian-firsthome-buyers-following-stamp-duty-cut-experts-say-20170630-gx048c/" target="_blank">upward pressure on prices</a> as first home buyers compete in the property market with more dollars. However, politicians seem to like these sort of measures because they are <a href="https://politicsir.cass.anu.edu.au/content/attitudes-housing-affordability" target="_blank">popular with voters</a>.
The NSW plan also focused on increasing housing supply through changes to the planning system and accelerated provision of infrastructure. The headline goal used to measure the results of the package is an increase in the number of <a href="https://www.nsw.gov.au/improving-nsw/premiers-priorities/" target="_blank">dwelling completions to 61,000 per year</a>.
What’s unusual about this target is that there is no indication of the intended price levels of completed dwellings. Left to the market, the supply will not reach those most in need.
<a href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/281" target="_blank">A recent AHURI study</a> found focusing only on supply as a strategy to reduce housing prices was a blunt instrument. The study reported:
<blockquote>
Most of the growth in housing supply has been taking place in mid-to-high price segments, rather than low price segments. There seems to be structural impediments to the trickle-down of new housing supply.
</blockquote>
<a href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/281" target="_blank">The same study</a> concluded:
<blockquote>
Targeted government intervention might be needed in order to ensure an adequate supply of affordable housing.
</blockquote>
<h2>How do the states compare?</h2>
Drawing on the new research, Table 1 compares established state and territory schemes designed to deliver affordable housing.
It’s clear some states and territories, by adopting a multi-pronged approach, have been more active and innovative than others.
<a href="https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/188496/original/file-20171003-14213-1hz3j42.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Table 1: Established state-level affordable housing programs (excluding the planning system). <a class="source" href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/289" target="_blank">https://www.ahuri.edu.au/research/final-reports/289</a>, Author provided
The research focused on a review of state-level affordable housing delivery. To identify what sort of conditions maximised the chances of success, this included an evaluation of two effective strategies – one in the <a href="https://www.planning.act.gov.au/topics/affordable_housing/affordable_housing_action_plan">Australian Capital Territory</a> and the other in <a href="https://www.openingdoorswa.com.au/">Western Australia</a>.
Both strategies delivered thousands of dwellings for households in need of affordable housing across the continuum. Both have clear targets.
<h2>What are the secrets of success?</h2>
Strong and sustained leadership is critical to both the implementation and ongoing delivery of an affordable housing strategy. Leadership is required both within the organisation responsible for the strategy, ideally a single entity, but also at a political level, ensuring a whole-of-government approach.
Both the ACT and WA strategies had the support of the treasurer during development. This ensured implementation was not hamstrung by a lack of resources.
A strategy needs to be resilient; it should not be easy to roll back following a change of government. It also needs to be developed in close consultation with the private sector and relevant areas of government to ensure all stakeholders are on board.
The organisation implementing the strategy needs to be flexible and innovative. This includes taking advantage of poor housing market conditions to develop joint ventures with the private sector.
When unexpected funding sources arise, state government needs to take advantage by using funding to leverage additional outcomes.
These established strategies offer several lessons for a state government seeking to implement an affordable housing strategy.
<img src="https://images.theconversation.com/files/189124/original/file-20171006-25775-1mz5y3s.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">The WA government has worked with private sector joint ventures to expand the stock of affordable housing. Richard Wainwright/AAP
<h2>Land release is a key factor</h2>
Governments have focused on a broad goal of <a href="https://theconversation.com/solutions-beyond-supply-to-the-housing-affordability-problem-67536" target="_blank">increasing supply</a> as an affordable housing solution, (<a href="https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/" target="_blank">such as the NSW strategy</a>).
In most cases this is a blunt tool because the government cannot directly influence the amount of land or housing stock made available (which are private sector decisions) or the price at which it is released onto the market.
States with an effective government land agency have an advantage. Land release then becomes an important part of an affordable housing strategy.
The ACT has been able to increase land supply and also to target the supply at a particular price point. WA has used its land effectively within private sector joint ventures to secure affordable housing.
Being able to guarantee increased land supply (and not just planning approvals for land development) as well as the price points of that land is a very powerful tool for a government trying to deliver affordable housing.
<h2>An effective affordable housing strategy</h2>
An effective affordable housing strategy is essential to deliver a range of supply options. At present, blockages along the housing continuum prevent households exiting social housing, which would free up supply for households in greater need.
WA in particular has demonstrated a successful strategy. Having reached its target of 20,000 dwellings <a href="https://www.housing.wa.gov.au/News/Pages/20000-affordable-homes-target-met.aspx" target="_blank">five years early</a>, the government committed to a further 10,000 homes <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2015-07-14/more-affordable-housing-to-be-built-in-wa-after-target-met/6618328">by 2020</a>.
<img src="https://counter.theconversation.com/content/84508/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Other states in the early stages of strategy implementation could learn much from the multi-pronged approach in the West.
<a href="https://theconversation.com/profiles/steven-rowley-201914" target="_blank">Steven Rowley</a>, Director, Australian Housing and Urban Research Institute, Curtin Research Centre, <a href="https://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a> and <a href="https://theconversation.com/profiles/peter-phibbs-27130" target="_blank">Peter Phibbs</a>, Chair of Urban Planning and Policy, <a href="https://theconversation.com/institutions/university-of-sydney-841" target="_blank">University of Sydney</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/some-states-do-better-than-others-on-affordable-housing-we-can-learn-from-the-successes-84508" target="_blank">original article</a>.
<h1>
The Living Space development in Cockburn, Western Australia, has won praise as an innovative mixed-use social housing project. <a class="source" href="https://www.hhawa.com.au/featured-projects/cockburn-central/" target="_blank">Courtesy of HHA Projects</a> <a href="https://theconversation.com/profiles/steven-rowley-201914" target="_blank">Steven Rowley</a>, <a href="https://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a> and <a href="https://theconversation.com/profiles/peter-phibbs-27130">Peter Phibbs</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841" target="_blank">University of Sydney</a>
</h1>
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Some states do better than others on affordable housing – we can learn from the successes

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Leading fund manager Platinum Asset Management’s CEO is betting big on China, in spite of recent warnings from credit rating agencies.
Kerr Neilson, the chief executive and founder of Platinum Asset Management, has four times more money invested in China than the United States as he thinks country’s debt problems would impact the economy but not “stop it dead".
Platinum has invested more than a quarter of its $23.9 billion funds under management into China-related stocks.
"China is very much like the '60s and '70s in America when it had a can-do attitude and there was a lot of money going into investments and they led the world in many industries," Neilson was quoted by The Australian Financial Review as saying.
He has ignored recent downgrades from credit rating agencies and warnings about the growing risk of a banking crisis.
The veteran fund manager's bet on China helped his flagship Platinum International Share fund return 18 per cent net of fees over the past year, compared with 11 per cent for the index.
Since its inception 22 years ago, the fund has returned 12.8 per cent annually, around double the benchmark.
Neilson explained his rationale for investing heavily in China, citing the stable macro-economic outlook, a more profitable industrial sector and an unreliable stockmarket, which often leads to companies being mispriced.
"The locals, who account for 70 per cent of the volumes, tend to be much attracted to shiny new things," he said. "They will pay huge prices for what we regard as transient growth or overpay for the growth they are buying.
“We have been bewildered by the number of quite wonderful companies which we can buy quite cheaply," he added.
Platinum is focussing on companies in more traditional sectors with cheaper offerings and reduced its exposure to internet giants such as Alibaba, Tencent and Baidu
Neilson believes there is more value to invest in companies such as gas distributor ENN, which Platinum expects will grow at more than 15 per cent over the next few years as China moves towards cleaner energy.
It has also bought into Hong Kong-listed Anta Sports, which has doubled in price over the past 18 months.
Despite the rally, Neilson said it was "not an expensive stock given its exposure to the rising spending power of the Chinese consumer".
Platinum has about $6.5 billion invested in Chinese companies, either listed on the mainland, in Hong Kong or on markets around the world such as New York, compared with $1.5 billion in US stocks.
Platinum's strategy goes against conventional stock market wisdom. The US market has a 54 per cent weighting in the MSCI, the benchmark global index, to just around 6 per cent for greater China markets.
"In terms of its economic significance, that's pitiful," he said.
Neilson justified his choice saying China makes twice as many automobiles as the US and eight times as much steel and also leads the world in science, technology, engineering and mathematics graduates, with 4.7 million last year. That compared to 2.6 million for India and just over half a million each for the US and Russia.
He is also confident in the country's macro-economic outlook, a confidence that many others don't share.
In September, Standard &amp; Poor's followed the two other major ratings agencies in downgrading China's sovereign debt, citing a sustained period of credit growth, which had increased "financial and economic risks" on the mainland.
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Kerr Neilson, Platinum Asset Management boss bets on China for financial returns

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Brisbane is at the 11th spot among global cities for the most office floor space that can be bought for US$100 million, fetching 14,607 sqm in the CBD area but this could change as the leasing market recovers and prices head north, says a new report by Knight Frank.
The report, Global Cities 2018, compares how much USD100 million will buy of prime office space in 34 top cities across the world. 
Melbourne and Sydney sit at 15th and 23rd on the list respectively, with Melbourne fetching 12,719 sqm of CBD office space for USD100 million while the same money can get you 7,087 sqm in Sydney.
Knight Frank’s managing director, Queensland, Ben McGrath said that investor interest has continued to build in the Brisbane CBD market due to the Sydney and Melbourne CBDs recording lower yields and a climate of fewer opportunities. 
Brisbane’s office leasing market is recovering, creating limited time to purchase office assets to fully benefit from the expected recovery in tenant demand, according to Knight Frank’s latest research.
“The certainty that the leasing market has bottomed in the Brisbane CBD is providing impetus to the investment market with the view that now is the time to purchase assets to fully benefit from the expected recovery in tenant demand,” said McGrath.
“Additionally, the demand from large tenants for new space will provide the opportunity to secure core investments with limited national supply of these assets.”
Investment demand is also rising because of continued high spread in yields Brisbane has with Sydney and Melbourne, added Knight Frank’s joint head of Institutional Sales, Australia, Ben Schubert.
According to the Global Cities report, Brisbane’s prime office yields sit at 28th in the world out of the 34 cities monitored, with yields at 6.38%, while Sydney and Melbourne are at 20th and 22nd respectively with Sydney yields at 5.06% and Melbourne yields at 5.25%. 
“While both Sydney and Melbourne CBDs are far further through the leasing demand cycle, with signs of improvement in the Brisbane market, investment interest has further increased. Yields remain under downward pressure with interest in the Brisbane market continuing to build. Both the yield gap to Sydney and Melbourne and positive signs in the Brisbane leasing market is underpinning this investment interest,” said Schubert.
Knight Frank’s head of Commercial Sales, Australia Paul Henley said, “Investors are increasingly expanding their global portfolios. Those cities going through an evolution driven by a compelling mix of education, lifestyle, infrastructure, technology and real estate makes them places where people want to work, shop, play, and live.”
Knight Frank’s director, Research, Australia Michelle Ciesielski said prime yields have continued to firm in the Brisbane CBD, having fallen to a median range of 5.8% to 6.95% as demand grows.
“In Sydney, the strong investor demand, particularly from offshore investors, is putting significant pressure on yields across the grades, but more so on secondary assets which have a lower price point,” she said.
She cited the sale of 20 Bridge Street on a sub-5% core market yield as an indicator that prime assets in the CBD core are expected to be traded between 4.5% and 5.25%. 
“This will be further affirmed when the sale of Wynyard Place is concluded, with market expectation for a yield of close to 4.7%,” said Ciesielski.
In Melbourne, fewer buying opportunities with strong investor demand, particularly by offshore investors, has further compressed prime yields, added Henley. 
“Looking ahead, investment volumes are anticipated to remain above the five-year average in 2017. This is unlikely to match volumes recorded in 2014 as impacted by the scarcity of investment opportunities rather than diminishing investor appetite,” concluded Henley.
</body></html>

Brisbane CBD ranks 11th globally for value in prime office space: Knight Frank

<html><body>
Investors are positive about the long-term returns of Australian residential property, shrugging off concerns about stricter lending conditions, price bubbles and oversupply, a new survey has found.
More than 70% of the 742 respondents think now is a good time to invest in property, with 61% looking to purchase a property in the next six to 12 months (up from 58% last year), according to the third annual Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey.
Surprisingly, Brisbane was at the top destination for property investors in spite of its apartment oversupply concerns, though the percentage who favoured the city fell from the last survey.
PIPA chair Ben Kingsley said that the survey results confirm that investors remain committed to property as a favourable investment option over the long-term.  
<a href="https://www.propertyobserver.com.au/images/2017/09/28/PIPA1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/28/PIPA1.png" alt="">
However, concerns over changes to investor lending policies loom large, with 43% of respondents reporting an adverse impact in their ability to secure finance, compared to 32% in 2016.  
Banks raising rates for interest-only loans was also a key concern, though more than half (55%) with interest-only loans said they would not struggle to meet new principal and interest repayments.
Higher borrowing costs also mean that investors are constantly looking for a better deal. 
More than 23% said they would consider refinancing their loan for an interest rate differential of 0.5 percentage points, while another 23% would consider refinancing for one percentage point.
According to the survey, only 15% of investors have put their buying plans on hold due to concerns around a property price "bubble". 
“Similar to last year, most property investors are looking past short-term challenges and are remaining focused on the long-term wealth benefits that are available from residential real estate,” said Kingsley.
Investors have also shrugged off speculation about negative gearing and capital gains tax changes, with only 14% putting their investment plans on hold.
The survey also shows that only half (52%) of property investors are currently negatively geared, with a majority (62%) of these expecting to become positively geared within five years. 
“The survey also affirms that a lot of the speculation about negative gearing misses the mark. Most investors understand that negative gearing is only a short-term cash flow position, not a property investment strategy. And only a very small minority are attracted to real estate for these tax concessions,” Kingsley said.
<a href="https://www.propertyobserver.com.au/images/2017/09/28/PIPA2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/28/PIPA2.png" alt="">
Despite being the most preferred destination for property investors, Brisbane has lost some appeal, with the proportion of investors favouring it falling from 49% to 43% over the past year. However, the city remains far ahead of any other capital city when it comes to investor interest. 
After Brisbane, Melbourne is the second most popular investment destination (32%), followed by Sydney (7.8%), Adelaide (6.6%) and Perth (5.5%).
“Property investors are becoming savvier. Many of them continue to look outside of our biggest property markets of Sydney and Melbourne, which are coming close to the peak of their cycles,” said Kingsley.
“The two key reasons that Brisbane still attracts investors are affordability and the potential for attractive yields. Brisbane is investing in infrastructure to make the city more liveable and investors are betting on this.”
Although investors are becoming more sophisticated, with 33% having a set strategy for investing, they overwhelmingly (84%) consider that more investment education about the risks and potential benefits of investing in property is needed. Even higher numbers (90%) believe that the property investment industry should be regulated and licensed in the same way as many other professionals.
“Unlike financial planning and mortgage broking, the provision of property investment advice still remains unregulated. PIPA is committed to raising the professional standards of this industry and will continue to lobby the government to regulate property investment advice and educate investors to help them make informed investment decisions,” Kingsley said.
 
 
 
 
 
 
 
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Property investors confident on real estate returns despite despite pressures: PIPA survey

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

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

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

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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