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The McGrath estate agency group recorded $12.3 billion in residential sales from 11,760 properties for the year ending June 30, marking a 21.7% increase on the corresponding prior year.
The group sold 10,574 properties in the prior financial year for a total of $10.1 billion. Some 7,870 properties sold for a total of $7 billion in the 2013 financial year.
Headquarters McGrath Edgecliff made some 1,110 sales for a total of $1.61 billion - a 28% increase during the 2014/15 financial year. 
McGrath chief executive John McGrath  said Sydney, in particular, has proven to be one of the most resilient property markets in the world with long term fundamentals that underpin the marke 
"While the investors and upgraders have continued to dominate our markets along the eastern seaboard, the top end of the market is finally starting to see some good momentum," Mr McGrath said.
"As our dollar continues on a downward trend, I anticipate increased interest from expat and offshore buyers as they benefit from a 25% currency reduction on what they were paying 18 months ago.
"As Sydney’s auction clearance rates are holding steady in the 80% plus range, one of the things helping the Sydney market along is the strengthening NSW economy and high levels of migration.  The boom will end at some point, but that doesn’t mean price growth will end, but rather continue in a more moderate fashion."
 
Ten offices across the McGrath network recorded in excess of 50% growth in sales in FY15:
<ul>
<li>McGrath Buderim sold $113.1 million from 172 sales, compared to $49.3 million in FY14 (+129%) </li>
<li>McGrath Lindfield sold $450.4 million from 401 sales, compared to $200.3 million in FY14 (+125%) </li>
<li>McGrath Avalon sold $56.9 million from 45 sales compared to $29.2 million in FY14 (+95%) </li>
<li>McGrath Thirroul sold $111.6 million from 151 sales, compared to $63.8 million in FY14 (+75%) </li>
<li>McGrath Byron Bay sold $84.9 million from 104 sales, compared to $48.8 million in FY14 (+74%) </li>
<li> McGrath Wollongong sold $106.3 million from 169 sales, compared to $61.5 million in FY14 (+73%) </li>
<li>McGrath Dickson (ACT) sold $117.9 million from 182 sales, compared to $77.1 million in FY14 (+53%) </li>
<li>McGrath Epping sold $478.1 million from 332 sales compared to $288.0 million in FY14 (+66%) </li>
<li>McGrath Parramatta sold $323.5 million from 372 sales compared to $210.4 million in FY14 (+54%) </li>
<li>McGrath Terrigal sold $271.7 million from 363 sales, compared to $178.6 million in FY14 (+52%) </li>
</ul>
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McGrath group residential sales better $12 billion in FY15

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GUEST OBSERVER
The headline CPI lifted 0.7% in Q2 compared to Westpac’s 1.0% forecast and the market’s expectation for 0.8%. The annual rate is now 1.5%yr compared to 1.3%yr in Q1, 1.7% in Q4 and 2.3%yr in Q3.  
The core measures, which are seasonally adjusted and exclude extreme moves, rose 0.5%qtr compared to market expectations of 0.6%qtr and Westpac’s estimate of 0.5%qtr. In the quarter, the trimmed mean gained 0.56% while the weighted median lifted 0.51%. The annual pace of the average of the core inflation measures is now 2.3%yr, a slight moderation from the 2.4%yr pace in Q1.
The six month annualised pace of core inflation was 2.5%yr in Q2 a moderation from the 2.8%yr in Q1 and moving back toward the 2.1%yr pace at the end of 2015. Core inflation continues to meet the RBA’s expectations for inflation to remain within the band.
<a href="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%203.16.13%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%203.16.13%20PM.png" alt="">
 
In the June quarter the expected surge in petrol prices was there (12.2%qtr) but the big surprise for us was the soft print on food, –0.2%qtr, in part due to a very soft –1.2% from fresh fruit &amp; vegetables. Also surprising us on the downside was a –3.4% fall in holiday travel. Clothing &amp; footwear rose much as expected at 1.3%qtr.
Housing costs continue to underpin both core and non-tradeable inflation rising 0.7%qtr driven by a very solid 1.5% rise in dwelling purchase prices. To this was added the solid gains in hospital &amp; medical services (3.4%qtr) and alcohol &amp; tobacco (1.2%qtr). The modest offsets came from pharmaceuticals (–1.8%qtr), audio visual &amp; computing services (–1.6%qtr) and communications (–0.6%qtr). 
Traded goods, boosted by fuel, gained 1.2%qtr/–0.3%yr, while non-traded goods (housing, health and education) were around expectations at 0.5%qtr/2.6%yr. 
Despite the downside surprise on food, the CPI came in much as expected with housing continuing to underpin modest outcomes for core and non-tradeable inflation. 
<a href="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%203.15.55%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/22/Screen%20Shot%202015-07-22%20at%203.15.55%20PM.png" alt="">
 
Justin Smirk is senior economist, Westpac Group and can be contacted <a href="https://au.linkedin.com/pub/justin-smirk/9/1b9/b2a" target="_blank">here</a>.
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First impressions of CPI Q2 2015: Justin Smirk

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Investorist, Australia’s highly successful online and mobile marketplace for the world’s B2B off-the-plan property industry, has raised $2.5 million to increase its presence in Asia Pacific, United Kingdom and to also launch into the United States
Key technology investor Stuart Marburg, co-founder of Netspace, joins property investor Benni Aroni developer of the Eureka Tower as investors to enable the expansion.
Investorist currently has offices in Melbourne, Sydney, Brisbane, Shanghai, Beijing, London and a presence in Singapore and Malaysia.
The first A Class of capital raising follows the successful seed investment from the Salta Group, the luxury apartment Melbourne developers, in March 2014 when $1.7 million was invested.
The fast growth Australian start-up, featured in the recent Anthill list, is now valued at over $20 million ahead of its second anniversary.
The latest funding comprised 20 individual investors many of whom are current users of the platform.
A number of these key investors have also joined Investorist’s Advisory Board such as Stuart Marburg, co-founder of Netspace, Paul Clarke CEO of ASX-listed Redflex and current chairman of Melbourne Water and director of the Victorian Water Industry Association and Benni Aroni a property lawyer and developer of Melbourne’s Eureka Tower and founder of Watersun Properties.
 Investorist provides residential property developers and real estate agents with real time inventory management and access to global distribution networks. It has quickly become the leading online and mobile marketplace for the B2B off-the-plan property industry.
Founder and CEO, Jon Ellis says off-the-plan property sales account for over one-quarter of all Australian residential property sales.
“These sales are different to existing property sales; they are typically sold as investments, often cross-border and usually sourced for the consumer by an intermediary business or advisor.
"These sales occur prior to advertisements appearing in newspapers or consumer portals.
"Investorist is the only marketplace of its kind to use sophisticated technology to transform a traditionally paper and phone dominated industry,” he says.
Stuart Marburg, current CEO of Message Media, advised he was attracted by technology transforming traditional verticals.
“It is exciting to see a young Australian start-up come up with a unique idea and improve what was once considered a very traditional sector, he said.
Investorist boasts 4,000 current users of the system with more than 20,000 unique searches generated on the platform in June when $500 million in property was transacted through the site, comprising around 1,000 sales, said Jon Ellis.
David Tarascio, CEO investment management at Salta Properties, has joined the Investorist Advisory Board. He commented that double sales of apartments and miscommunication between parties were avoided through Investorist's streamlining.
CEO founder, Jon Ellis launched the website in mid-2013, aged 33 year, with software to manage complex transactions from information exchange through to contract exchange and property settlement.
Investorist’s members are the developers, project marketers and advisors who lead the off the plan property industry. For more information, check out <a href="https://www.investorist.com" target="_blank">Investorist</a> here.
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Expansionary Investorist attracts topline local investors after $500 million sales month

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Nicole Kidman, the actress, has given Vogue a video tour of her NSW Southern Highlands retreat, Bunya Hill. It was the latest of the international magazine's 73 Questions series.

The actress and her country music star husband, Keith Urban snapped up <a href="https://video.vogue.com/watch/73-questions-inside-nicole-kidman-s-australian-farm" target="_blank">Bunya Hill</a>, a 45-hectare black Angus cattle stud at Sutton Forest, for $6.5 million in 2008.

Long hidden behind hedging, the Sutton Forest property, with its magnificent 1878 Georgian mansion and impressive pedigree, has wide sandstone verandas, pressed-metal ceilings, a carved cedar staircase and 10 marble fireplaces.

It has the proportions and details that made it worthy to be leased as a vice-regal rural retreat for Lord Augustus Loftus, a governor of NSW in the colonial 1880s.

Bunya Hill was sold by Peter Coad, head of global markets at National Australia Bank, and his wife, Helen, through Sothebys and Drew Lindsay Real Estate. 

[smartcode_project:default project_id=5897]

It is set in the Sutton Forest village located in New South Wales precinct where Hume Coal now intends to build an underground coal mine.

Details of the plans were advised last week, submitted to New South Wales Government as a first step in the approval process.

The aim is to extract coal from the Wongawilli coal seam in the Sutton Forest region, while protecting the ground water and the environment, but most locals, including the celebrity couple have huge apprehension.

[smartcode_project:default project_id=6284]

Surface infrastructure is proposed to be developed on predominately cleared land owned by Hume Coal. Over half of the remaining sections of the project area are scheduled to continue to be, used for livestock grazing, small-scale farm businesses and hobby farms. There are a small number of vineyards present, principally Cherry Tree Hill Wines, and Eling Forest, with the Belanglo State Forest covering the north-western portion of the project area and contains introduced pine forest plantations, areas of native vegetation and several creeks that flow through deep sandstone gorges.

The project area is traversed by several watercourses including Oldbury Creek, Medway Rivulet, Wells Creek, Wells Creek Tributary, Belanglo Creek and Longacre Creek, all of which ultimately discharge to the Wingecarribee River, located around 2 km north of the project area. The Wingecarribee River’s catchment forms part of the broader Warragamba Dam and Hawkesbury-Nepean catchments. Medway Dam is also adjacent to the project area. 

Hume Coal has undertaken extensive groundwater investigations to characterise the existing hydrogeology of the project area and surrounds, including groundwater depth, quality, flow and uses. Investigations are ongoing, though the 65 groundwater monitoring points that have been established to date, comprising mainly purpose-built groundwater monitoring bores, as well as vibrating wire piezometers.

Project director, Greig Duncan stated that the company had commenced <a href="https://www.humecoal.com.au/hume/assets/File/Home%20page%20PDF%20and%20images/J12055_SEARs%20application%20supporting%20document_FINAL_170715.pdf" target="_blank">detailed environmental and geological studies</a> as well as extensive engineering design analysis to make sure the local community received the best outcome.

[smartcode_project:default project_id=6876]

It is noted that, to avoid any perception that the Hume Highway could be affected by future, longterm ground movements, no mining will occur beneath these features, other than development of underground roadways (first workings development) required for access.

The planned coal mine will mine 35% of coal from the available reserves and leave the rest underground to hopefully provide long-term ground stability and reduce impacts on groundwater.

It is expected to create 400 jobs for the local community.

Greig Duncan assured he project will not involve coalbed methane, opencast or longwall mining.

"It will have no impact on town water or surface water such as dams.

"Furthermore, we’ve taken great care to design a mining system that will have no long-term impact on the groundwater system, ensuring it remains intact and undamaged for future generations.”

[smartcode_project:default project_id=29679]

The innovative mining system is being spriuked as an "Australian first." 

The project incorporates a number of leading practice innovations, "some of which set a new benchmark for underground coal mining in NSW" with the rail wagons used to transport product coal off-site being covered.

Surface infrastructure is proposed to be developed on predominately cleared land owned by Hume Coal, or for which there are appropriate access agreements in place with the landowner, at sites that are relatively free from environmental and other constraints.

With proximity to rail infrastructure and Port Kembla, the Hume Coal Project involves operation of an underground coal mine over a 22 year-period, which will extract approximately 50 million tonnes of coal from the Wongawilli Seam, followed by a closure and rehabilitation phase of nominally two years.

There will be production of nominally up to three million tonnes per annum of metallurgical and thermal coal for international and domestic markets.

There will be peak workforces of approximately 400 full-time equivalent employees during construction and approximately 300 full-time equivalent employees during operations.

[smartcode_project:default project_id=94621]

Hume Coal Hume Coal is a wholly owned subsidiary of POSCO Australia, a subsidiary of Korean based POSCO, the world’s sixth-largest steel maker.  Hume Coal currently has two advisory groups, the SRG and WAG.

Hume Coal established a SRG formed in 2014 chaired by Paul Mitchell OAM and is made up of community representatives.

The Hume Coal WAG is made up of representatives from government, local business, landowners, special interest groups and Hume Coal and its technical advisors. It was formed in 2011 and is chaired by the Hon. Gary Nairn.

Hume Coal holds exploration Authorisation 349 (A349) approximately 100kms south of Sydney and 3kms west of Moss Vale, in the Wingecarribee local government area.

Extensive exploration has been undertaken within A349 since the 1950s and the current exploration authorisation was granted in 1985. It was acquired by Hume Coal in 2010. Concurrent with lodging this document, a referral is being made to the Commonwealth Department of the Environment to determine whether or not approval is also required under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999.

An EIS is a requirement of the approval process.

The project area is in a semi-rural setting, characterised by grazing properties, small-scale farm businesses, hobby farms, natural areas, forestry, scattered rural residences, villages and towns and some industries and major infrastructure.

[smartcode_project:default project_id=6656]

A number of State and locally listed heritage places are present in the local area.

The villages of Sutton Forest and Exeter are within A349, but both have been excluded from the project area.

Medway, New Berrima and Berrima villages are also nearby, while Moss Vale, Bowral and Mittagong, located between approximately 3 and 15 km east and north-east of the project area, are the LGA’s main regional centres.

Industrial and manufacturing facilities in the locality include the substantial Berrima Cement Works and Berrima Feed Mill on the fringe of New Berrima, as well as brickworks, metal fabrication, mining equipment manufacture and quarries. Berrima Colliery’s mining lease adjoins the project area’s northern boundary.

Berrima Colliery closed in 2013 after almost one hundred years of operation and is currently in care and maintenance.

The Wingecarribee LGA is also a retirement destination with an aging population, with approximately 42% aged over 50 – significantly higher than the NSW average of 33% (Australian Bureau of Statistics 2011).

Main picture of Bunya Hill (dated 2008) from Drew Lindsay Real Estate. 

Carousel images courtesy of US Vogue Magazine.
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Nicole Kidman shows off Bunya Hill, Sutton Forest for first time

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The Minutes from the RBA’s July board meeting contained little new indication on the evolution of monetary policy, although they suggest that the Bank continues to holds a mild easing bias.
The points of interest in the Minutes were around Q2 growth and the labour market:
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<ul>
<li>On the labour market, the Board noted the recent improvement in the data. They did, however, note that softer population growth had helped to keep a lid on the unemployment rate despite below-average growth in GDP, with workers leaving the mining states of Queensland and Western Australia where growth is weakest. They also noted the mixed outlook for labour demand indicated by the various forward indicators. These comments suggest to us that while the Bank would clearly be pleased if the peak in the unemployment rate does not prove to be as high as previously thought, it seems unlikely to change its view that the unemployment rate is likely to stay elevated for some time.</li>
<li>On growth, the Minutes noted that the strength in Q1 (when GDP rose a solid 0.9% q/q) had not carried through to Q2. The monthly trade data suggest resources exports declined in the quarter (our preliminary calculations point to a small net exports subtraction) while non-mining business investment remains subdued. They did, however, point out the improvement in recent months in business conditions (note that conditions have improved further since this meeting).</li>
</ul>
The comments on the currency were broadly unchanged with members noting that “further depreciation seemed both likely and necessary”.
Of more interest will be Governor Glenn Stevens’ speech tomorrow which is on the topic of ‘Issues in economic policy’. Given his recent rhetoric, we think he is likely to reiterate or expand on issues on monetary policy transmission and the government’s role in infrastructure spending.
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The full text of the Minutes can be found <a href="https://www.rba.gov.au/monetary-policy/rba-board-minutes/2015/2015-07-07">here</a>. 
Felicity Emmett is co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/felicity-emmett/5a/3ba/256">here</a>.
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July 2015 RBA minutes – still dovish: ANZ

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The retail section of the redeveloped beachside Wallis Building on Jetty Road, Glenelg has been fully leased with only three upstairs office and consulting spaces up for rent.
The retail space is split up between a tenanted ground floor of 811sqm and a first floor, 510sqm health club. 
Colliers International’s Ben Laycock said the three remaining upper level tenancies are suitable for offices and consulting rooms, range from 65sqm to 500sqm, and would suit a variety of uses including accountants, legal, corporate services, government departments and medical specialists.
 
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Redeveloped Wallis Building, Glenelg nearing full lease

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Melbourne's South East industrial property market is up nearly 60% on the previous 12 months to June, with key sales ranging between $63 million and $20 million.
According to figures released from Savills research, sales to June reached $616 million, up 75% on the five year average.
Savills’ Notting Hill office director, Lynton Williams said data for the research found 80 properties (over $2 million) sold in the 12 months to June, an 86% rise on the 43 properties sold across the South-East market in the previous 12 months and 70% up on the five year average of 47.
"The market had seen investment yields for prime industrial property in the South-East fall 50 to 100 basis points over the last twelve months to a current range of 6.75 to 7.75%," Mr Williams said.
<a href="/images/2015/07/21/Screen%20Shot%202015-07-21%20at%2012.25.28%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/21/Screen%20Shot%202015-07-21%20at%2012.25.28%20PM.png" alt="" width="981" height="632">
"Industrial yields are firming however they continue to offer some of the best returns of any asset class to investors while providing owner-occupiers with a premises with the potential to add to the business bottom line."
Savills’ Victorian Head of Research, Glenn Lampard said the 80 properties sold in the south-east comprised more than half of the 144 properties sold across Melbourne.
"The south-east was a significant contributor to the $1422 million in Victorian industrial sales in the year to June which was up from the $1305 million in the previous year and significantly up on the five year average of $950 million,’’ Mr Lampard said.
Key South-East sales included: (all agents deals) 
<ul>
<li>4 Kingsway Crt, Moorabbin - $22.6 million</li>
<li>13-15 Joel Crt, Moorabbin - $19 million </li>
<li>215 Browns Rd, Noble Park – $20.8 million</li>
<li>495 Blackburn Rd, Mt Waverley - $63 million</li>
<li>Estate One, Danendong South - $39.25 million</li>
<li>Kingston Distribution Centre, Braeside - $36.6 million </li>
</ul>
 
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Industrial sales up 60% in Melbourne's South-East

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GUEST OBSERVATION
Weekend after weekend, Melbourne experiences spectacular sales rates signalling that property interest among buyers at an all time high. So it comes as no surprise that buyers have turned their attention to the potential of off-market deals. 
But how can off-market deals favour the vendor and what should they look out for in order to capitalise on this shift and this new type of buyer? 
One of the most obvious benefits of off-market sales is that they allow vendors to sell their property without having to invest in marketing or pay advertising fees. With off-market sales, vendors can easily establish an asking price that they are comfortable with without worrying about their property being passed in on auction day. However it is important to note that auctions are competition driven and therefore fetch higher sales prices in many instances compared to private sales. However if a vendor has a reason for selling privately then an off-market strategy can act as an excellent choice, given they seek the right professional advice. For vendors seeking privacy, a well established and community focussed agent should have a database of buyers that may be the perfect match for their property via an off-market sale. 
On-market sales better reflect the demand occurring the market right now. With an off-market sale it is harder to gauge and may deter some buyers as they may feel the vendor’s asking price far exceeds what the market dictates. At Hodges Caulfield we look at both the history of sales in the area and prices of competing properties to set an informed value and price range to avoid this situation and draw in buyers who dislike the auction scenario or have a specific criteria. By selecting an agent with good local market knowledge and a rich database of potential buyers, vendors will ensure they are setting themselves up to receive quality leads.
Just like an auction scenario, an agency with good business practice will inform a vendor of all the offers on their property as soon as they are made. The agent will then have a conversation with the vendor and give them sound guidance on whether it’s an offer they should accept or decline. If the agent is waiting on another offer they will let both parties know so there’s transparency during the whole transaction. Where there’s transparency, there’s a better result not only for the purchaser but also for the vendor. 
Golan Flamm is sales manager of Hodges Real Estate Caulfield. He can be contacted <a href="https://www.hodges.com.au/golanflamm/" target="_blank">here</a>.
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Is an off-market deal right for you?

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Negative gearing is a very controversial issue. The latest round of debate stems from the Reserve Bank’s submission to the House of Representative Standing Committee on Economics regarding the enquiry into home ownership. The Bank believed that “there is a case for reviewing negative gearing”.
Treasurer Joe Hockey promptly responded to again rule out any change of the tax policy on negative gearing. In particular, it was reported that he claimed that removing negative gearing would create “an exception to a standing rule in taxation law”.
Is negative gearing in accordance with well-established tax rules? A fundamental principle in the tax law is that a taxpayer should be able to deduct expenses only if the expenses have been incurred to generate assessable income.
This is why an employee can only deduct expenses that are sufficiently related to work. For example, a funeral director at tropical Queensland would be able to deduct the cost of his black jacket (but not his black trousers) because the ATO believes that no rational person – except a funeral director – would wear a black jacket in such a hot place.
Should mortgage interest on an investment property be deductible? Investment properties generate two kinds of income: rental income and capital gains (if any). As capital gains on investment property can enjoy a 50% tax discount if the property has been held for at least a year, strictly speaking only 50% of the interest expenses related to the capital gain should be deductible.
In practice, it is impossible to predict whether there will eventually be a capital gain, and also impossible to predict the amount of the gain. This presents the key difficulty in the design of the tax policy on negative gearing.
Allowing full deduction of the interest expenses every year effectively allows deduction of expenses that may be incurred to generate the tax free portion of the capital gain (if any), and therefore may violate the fundamental tax principle for deductions. However, how can the Australian Tax Office (ATO) determine how much of the interest expenses should be disallowed every year before the investment property is actually sold?
Many countries resolve this issue by quarantining losses on investment properties. It means that losses generated from negative gearing cannot be used to offset against other sources of income, for example, salaries or business income. Instead, the losses can be carried forward to future years to offset against income from the investment properties.
This policy is fair in the sense that the same tax principle for deductions applies to both taxpayers with and without negative gearing. Many countries adopt this quarantine policy, including major developed countries such as the US, the UK, France and Japan.
Some countries have even stricter tax rules on investment properties. For example, China allows a fixed 20% deduction of the rental income, and the Netherlands tax property investors on a deemed yield rate of 4% on the value of the properties. In other words, these countries do not allow deduction of any tax losses on investment properties at all.
Australia’s current tax policy on negative gearing seems overly generous when compared to both groups of countries. More importantly, it is not fair to taxpayers who do not have negative gearing. The policy effectively subsidies negative geared property investors through the tax system.
The Reserve Bank concluded its submission to the enquiry into home ownership by rightly stating that “policy should not unduly advantage property investors at the expense of prospective owner-occupier home buyers … tax and regulatory frameworks should avoid encouraging over-leveraging into property”.
Of course, the negative gearing issue is complex and highly political. The ATO’s Tax Statistics for 2012-13 showed that taxpayers claimed a total of $12 billion tax losses from investment properties, and almost 1.3 million taxpayers had negative gearing.
The sheer number of taxpayers currently enjoying the benefit of negative gearing dictates that it will demand strong political will and leadership before a politician is willing to propose changes to the current tax rule on negative gearing.
Even if the government is bold enough to change the rule, careful consideration has to be given to transition rules to cater for the existing taxpayers that have negative gearing. This is a story for another day.
Antony Ting is associate professor at University of Sydney and also an author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/antony-ting-117958" target="_blank">here</a>.
 
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Why negative gearing is not a fair tax policy

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The cheapest median regional building lot price for the March quarter is in the southern region of Tasmania with a price of $82,500.
The Murray Lands region in South Australia followed with a median of $84,000 and East Gippsland in Victoria next with a median lot price of $88,000, according to the HIA-CoreLogic RP Data Residential Land Report
<a href="/images/2015/07/20/700_least.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/20/700_least.jpg" alt="">
For the top regional market lot prices in the March 2015 quarter, click <a href="/expert-insights/buying/northern-nsw-tops-regional-median-building-lot-prices-hia">here</a>.
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Southern Tasmanian March building lot median at $82,500: HIA 

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]

Joel Robinson

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]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

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