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GUEST OBSERVATION
One of the most important decisions you may make as a parent is where to send your child to school. You can spend hours researching schools, studying what they offer, their reputation, yearly VCE results and overall school ranking.
Imagine spending all that time researching to find what you believe is the perfect school for your child, only to be informed that they will not be accepted because you do not live in the school’s zoning. If only you had known this when you purchased your family home!
Public secondary schools in Melbourne are separated into zones, such that the entire area is covered. There are few overlapping regions.
The bulk of enrolments will come directly from these zones, making the decision on what area to settle down in a potentially crucial factor for parents.
While private schools are not affected by the same zonal restrictions, many pose a heavy financial burden on the household budget, especially if the choice between public and private has to be made for several children.
If you are a future home buyer, a school zone should be taken into account as this will affect how others view a property and potentially push prices up. This means you could be overpaying for a property because it is within a school zone, even if this is not relevant to you. The school zone effectively comes with the house and you will pay for it regardless as a result of market pricing.
Click pictures and tables to open in new windows:
<a href="/images/2015/03/17/sa-march-17-one.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-one.jpg" alt=""></a>
Different school zones may have different impacts depending on their ranking and popularity. This study set out to compare the performance of public schools with house prices in the surrounding region. Our primary aim was to uncover the answer to the question: What is the real, unseen price of education in the housing market and how much do rankings influence this?
School zones are becoming increasingly important in the inner city market. The rise in popularity of public schools is evident by the increase in intake of students each year.
There has been lobbying in some suburbs for more public schools so that the demand for the existing schools is reduced. Population growth in the Port Phillip area has put enrolment strain on the only public school in the area; Albert Park College.
Provision of more public secondary schools in the inner south is necessary especially for South Melbourne and the new Fishermans Bend suburb which are outside the Albert Park zoning. In the inner north, it seems that demand for public schools is so high that one new school does not make a difference. For example, Northcote High School has had to reduce their catchment area recently so that Preston West and parts of Thornbury are no longer included.
They state that the opening of nearby Coburg High School has not affected demand for places and are still having to turn away students.
With a limited number of properties falling within each school zone, demand for these is pushing up property prices and even rents in certain areas.
Popular independent school Haileybury recently purchased a site in the CBD itself with speculation they will open up a new campus to service this growing area of inner Melbourne. They currently have campuses in the south eastern suburbs only. This shows a shift in attitudes of schools whereby it is no longer essential to place a high performing school in the eastern suburbs as was traditionally done. Good schools are now moving to more centralised locations.
This shift in attitude is also seen in parents who are accepting more modern approaches to a school’s design.
Planning is to go ahead for NSW’s first public high rise school in the inner suburb of Parramatta. Whilst high rise schools come with their own problems, it seems the only way forward for the inner city where space is so limited.
Low cost, high performing public schools are a desirable variation to private schools for many, especially as the inner city suburbs have resurfaced to be incredibly popular to live in.
People can now live in their dream inner city suburb whilst sending their child to a good school without having to pay a fortune. Furthermore, the money they save from sending their kids to a public school can go towards servicing a more expensive mortgage, or offering their children an eye opening experience, for example, by taking them to Paris for a family holiday.
Property Values and School Zones 
It is well established that there is a correlation between property values and being located in a school catchment area. In our major capital cities, Sydney, Melbourne and Perth, buyers will pay a premium to be located within a public school zone, regardless of its ranking.
A study in New Zealand aimed to actually quantify the impact of geographically defined school zones on house prices. Using hedonic regression, they analysed over 10,000 house sales in a select group of inner Auckland suburbs over 21 years.
What was interesting in this study is the fact that the school zone boundaries changed over the duration of the study.
It was found that when a school increased its boundary to include a new suburb, the house prices in this suburb began to attract a premium compared to relative suburbs and this premium grew to NZ$66,000 over 10 years. When a suburb which had a historic premium attached to its houses relocated out of a school zone, this premium diminished.
VCE Results and House Prices 
The Victorian Certificate of Education, better known as the VCE, is the main tool used for ranking schools based on performance.
Students complete the VCE over their final two years of senior high school. In each subject, they are awarded a grade from 0 to 50, based both on their individual performance and the performance of the rest of the state. A score of 30 in an individual subject denotes an average score, i.e. a score in the top 50% of the state.
<a href="/images/2015/03/17/sa-march-17-two.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-two.jpg" alt=""></a>
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To determine what impact a school's VCE results have on property prices, the sale results of 2,300 houses were analysed using hedonic regression techniques. All two and three bedroom houses were included if they were sold between January 2011 and December 2014, and were located within seven different inner city high school zones, as depicted in the school zone map. This property size and type was picked as it most closely represents a potential buy for an inner city family household.
Table 1 shows the average percentage of VCE scores of 40+ achieved between 2011 and 2014 at the different schools, as well as the average price of two and three bedroom houses in the school’s zone. A study score of 40 or above is indicative of a score in the top 8 percent in the state. The ratio of such exceptional scores compared to the total shows us the proportion of high achievers in each school. Note that Lynall Hall Community School did not publish VCE scores in 2013. Data for this year was therefore left out.
On its own, Table 1 doesn't tell us much, except how affluent an area is. There seems to be no obvious link between the VCE results and average sale prices. However, there are many other factors that determine the price of a house. To single out the effect of public school VCE results on house prices, the following parameters were taken into account in the regression analysis:
<ul>
<li>
Bedrooms and Bathrooms: Indicator of the size of the house and number of children. One additional bedroom and bathroom set added on average $350,000 to the price of a house. 
</li>
<li>
Land Area: The value of the land the house was located on if it were vacant. Each square metre was worth $1,475. 
</li>
<li>
Beach: Proximity of suburb the house was located in to the closest beach, broken up into three bands – adjacent to a beach, one suburb away from the closest beach and more than one suburb away. Each band towards the beach increased the value by $320,000. 
</li>
<li>
CBD:  Proximity of the suburb the house was located in to the CBD, in kilometres. For every kilometre away from the city centre, the price of houses in the data set decreased by $80,000. 
</li>
<li>
Sale Date: The number of days since the first day in the set (01/01/2011). In other words, the effect of inflation on housing prices. Each day since 2011 added on average $125.80 to the price of each house.
</li>
</ul>
Housing sales that were missing information on any of the above variables were left out of the study.
The analysis uncovered that, on average, a 1% increase in the percentage of scores of 40 and above at a school increases the price of a house in the affected school zone by $19,000, holding all else constant.
This is quite a significant change, between 1.5% and 2.9% of the average price of houses sold over the past four years. To confirm our findings, Secret Agent thought it would be interesting to isolate those houses located nearby the border of two different school zones and analyse their sale results against each other.
Article continues on the next page. Please click below.
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Borderline: Comparing house prices close to two school zones 
1) Station Street 
Station Street runs in a northerly direction through Carlton North. The school zones of Fitzroy High School and Princes Hill Secondary College meet on Station Street, with the former receiving all even house numbers and the latter every odd house number.
<a href="/images/2015/03/17/sa-march-17-four.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-four.jpg" alt=""></a>
The comparison here is almost uncanny. Not only were the same amount of two bedroom houses sold, they were also generally sold in the same proportions each year. The average land area is almost identical.
Table 2 shows that the average sale price is 4.5% higher in the better ranked Princes Hill Secondary College zone. This result is smaller than what our model would predict and is most likely due to the small sample size. 
<a href="/images/2015/03/17/sa-march-17-three.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-three.jpg" alt=""></a>
2) Brunswick suburb 
The majority of houses in the suburb Brunswick belong to the Brunswick Secondary College zone, but a small part in the south is within the Princes Hill Secondary College district (Figure 3).
<a href="/images/2015/03/17/sa-march-17-six.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-six.jpg" alt=""></a>
Even though the houses in the Princes Hill zone are on average smaller (by approximately 50 square metres), they sell for on average 14.5% more. The difference can be partly attributed to being inside the much better performing school’s zone, but is also the CBD.
<a href="/images/2015/03/17/sa-march-17-five.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-five.jpg" alt=""></a>
3) University High School 
When comparing sales inside University High School’s boundaries to houses sold just outside, results are much less clear cut.
<a href="/images/2015/03/17/sa-march-17-seven.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-seven.jpg" alt=""></a>
While University High is the better performing school, average prices are lower in this zone. The unexpected result can be explained by a huge difference in average land size.
The houses in the University High area have some of the smallest land bases in the entire set of studied houses. As mentioned earlier, each square metre of land is worth about $1,500. If the houses within University High’s zoning had the same land size as those outside the zone, they would be worth roughly $221,400 more, holding all else constant.
In other words, per square metre, these houses are valued much more highly. Again this is most likely due to the closer proximity to the CBD as well as being within the higher ranked school zone. 
<a href="/images/2015/03/17/sa-march-17-eight.jpg" target="_blank"><img src="/images/2015/03/17/sa-march-17-eight.jpg" alt=""></a>
Conclusion
We aimed to find out how much value home owners and families looking for standalone houses in the inner city see in better schooling according to VCE performance. The answer is clear: property prices are inclusive of a school zone premium and school rankings affect how much the premium paid will be. As the percentage of top achievers in a school increases, the value of houses located within the area rises as well.
On average, the price of a house in a particular school zone increases by $19,000 with each 1% increase in VCE study score above 40.
This shows parents’ willingness to pay for a school zone. Whether or not you care about the zoning yourself, you will pay for it to live in the suburbs with high performing public schools. It will be interesting to see how demand for public schools is met in the future as Melbourne's inner population continues to grow rapidly and space becomes even more valuable. 
Jodie Walker is a buyer's advocate and researcher at <a href="https://secretagent.com.au/" target="_blank">Secret Agent</a>, a Melbourne based buyer's advocacy.
Richard Rossman contributed to this Secret Agent report.
Paul Osborne is founder of <a href="https://secretagent.com.au/" target="_blank">Secret Agent</a>.
You can download the full report on school zones, as wellas other property research, from the<a href="https://secretagent.com.au/" target="_blank"> Secret Agent website</a>.
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How do school zones affect Melbourne property prices?

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GUEST OBSERVATION
2015 has kicked off with an abundance of off the plan apartment enquiry on <a href="https://urban.melbourne/apartment-register?utm_source=um_editorial&amp;utm_medium=link&amp;utm_campaign=AR_UM_register" target="_blank">Apartment Register</a>, across Melbourne’s inner city suburbs.
Apartment Register’s 400 enquiry sample has been 90% local owner-occupier, comprised of first home buyer (FHB) and first time off the plan buyers; the remaining 10% is local and overseas investors who typically own more than one property.
The common theme is the preference to purchase in the inner ring suburbs considered to be within 10 kilometres of Melbourne CBD: close to their place of work, friendships groups and public transport. For the most part, the buying experience is overwhelming, navigating through pricing, floor plans and marketing material with the average purchaser enquiring between five and 15 projects over a three to six month search timeline.
The trend for owner-occupier enquiry is the desire to live in what they phrase as a ‘boutique development’, considered to be that of less than 80 apartments with the ideal preferred number at 50 apartments. Owner-occupiers prefer lower annual body corporate fees, as they have existing recreation memberships and wish to settle within a six to 18 month settlement time line from date of enquiry, with an 18 month settlement period the maximum amount of time prepared to wait, prior to moving in.
Single first home buyer enquiry is 70% female (age bracket of 25-35) and 30% male (age bracket of 28-40) with a budget of $400-$450,000 for a one bedroom, one bathroom with car park (preferred over car stacking systems) at a minimum size of 45 square metres. 50% of the first home buyers currently reside at their parent’s residence and have assistance from the parents, with the remaining currently renting with a partner or friend and have saved the 10% deposit without family assistance.
First home buyer couples in the 28-34 age bracket have a product preference for two bedroom, one and a half bathrooms with car park configuration in the $500-$700,000 price bracket. Selection criteria includes natural light to bedrooms, ample ventilation and security system.
First time local investors selection criteria is for two bedroom, two bathroom and car park due to rental yield and flexibility to rent to a couple or friends. The proximity to transport and the number of the apartments within the developments mimics that if they were buying to live in.
The enquiry for over 55 year old downsizers is a healthy demand for two bedroom and study, two bathroom and car park at a minimum size of 80 square metres, with a budget of $700,000 to $900,000. The attraction is the cost of apartment entry, comparable to a townhouse product with lower entry cost and lack of stairs. Half of the enquiry of over 55 year olds still have a child living on premise, which does not deter their timing to sell the family home and downsize within the next 12-24 months.
At a suburb level, the trend in our enquiry data indicates buyers look for suburb corridors and are prepared to choose between three to four suburbs within that corridor area. For example, first preference for many is Fitzroy and Carlton, which depending on available products, clients are prepared to extend their criteria to North Melbourne or Collingwood.
On a suburb level, South Melbourne is the number one requested suburb - with Fishermans Bend gathering momentum with potential buyers - communicating that a complete suburb is not required for venturing beyond for schools, amenities and other services.
First time overseas investors prefer the Melbourne CBD as an investment, or for potential future use by the family when studying in Melbourne for tertiary education. Experienced overseas investors prefer the North Melbourne and Carlton precinct for proximity to Melbourne University and the Southbank precinct apartments for the Crown Entertainment Complex, along with access to the Botanical Gardens and Arts Precinct. Our enquiry indicates the even trend for one bed, one bathroom products up to $500,000 and two bed, two bathroom products up to $650,000.
Cameron T. Clarke is founder and principal of <a href="https://myrealestatemate.com.au/" target="_blank">myrealestatemate</a>.
This article first appeared on <a href="https://urban.melbourne/" target="_blank">Urban Melbourne</a>.
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The first time investor property selection criteria: Cameron T. Clarke

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Co-working spaces are growing rapidly and are feeding the demand for flexible and collaborative working environments, according to a report examining “liberated” work in Australia.
The white paper, which was released by Third Spaces Group, found three quarters of co-working participants considered a shared hub to be important to their overall success.
In addition, the vast majority of respondents felt their professional networks and overall efficiency at work was improved thanks to being part of a co-working space.
Brad Krauskopf, founder and chief executive of Third Spaces Group, says the workplace is evolving and organisations should be taking notice.
“We’re seeing this shift towards the user being able to make the decisions about where they work, how they work and with whom they work,” he says.
“We will rely on co-working spaces to be the spaces in between and rely on our home offices to be another space. We certainly don’t see that the head office goes away… if anything, it’s important that the head office is a communication hub and sets the culture of the company. But we’ll definitely see that a co-working space becomes part of the property piece.”
Krauskopf says startups are naturally leading the charge when it comes to embracing co-working spaces.
“Culturally, we still like line-of-sight management and there is actually a shortage of management experience around how to manage a distributed workforce,” he says.
“The truly disrupted nature of working has been talked about for a couple of decades now except it is only in the last few years with the emergence of the cloud and fast internet that it’s actually possible. To think that we were suddenly going to develop the management expertise overnight was simply never going to happen… it’s going to take time.”
Murray Hurps, the general manager of Fishburners, said there has been “an explosion” of co-working spaces in Australia.
“Co-working by itself is good but having focused co-working is I think potentially more impactful,” he says.
“If you have for example a fin tech hub and you are going to focus on attracting fin tech startups and share your network and experience… you can create so much value just by having that critical mass.”
The major thing standing in the way of co-working spaces, according to Hurps, is high property prices and crippling rent.
“To continue expanding at the rate we are – which is one thousand square metres every few months – is just impossible at Sydney prices,” he says.
“But that’s a problem every company in Sydney has. If there’s one thing that could really improve it, I would say there’s a lot of residential development going on in Sydney and there’s an opportunity for councils… to approve more space for co-working spaces. The spaces that are being allocated at the moment just aren’t enough for the demand we have at Fishburners personally.”
This article first appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartUpSmart</a>.
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Co-working spaces are taking hold in Australia but rent a major stumbling block

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GUEST OBSERVATION
With enthusiasm for Sydney property seemingly indestructible, a new wave of activity is sweeping through the inner-city. First-timers, changeover-buyers and investors all want a piece of the action. But where will the smart money go?
Sure, we can look at growth rates and rental yields. But above all, there are people — movers and shakers — transforming their neighbourhoods with tomorrow’s must-visit haunts, and propagating new micro-markets along the way. This is where future value will be unearthed, the trick is knowing how to find it.
To get you started, here are three pockets worth getting amongst, and why.
<ul>
<li>Chippendale</li>
</ul>
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The area bounded by Broadway, Cleveland, Regent and Abercrombie is seriously on the move.
“If you think of New York’s Chelsea district,” says architect William Smart, “you’ll come pretty close to understanding the pocket of Chippendale anchored around Kensington Street. There is an incredible energy, and a desire for excellence in these parts, it’s extremely exciting.”
Smart should know — he designed the genre-bending White Rabbit Gallery, on neighbouring Balfour Street, as well as the interiors of Jean Nouvel’s Central Park apartment complex. But the most thrilling new development in this precinct is the <a class="markup--anchor markup--p-anchor" href="https://www.theoldclarehotel.com.au/" target="_blank" rel="nofollow" data-href="https://www.theoldclarehotel.com.au">Old Clare Hotel</a> on Kensington Street.
<div class="aspectRatioPlaceholder is-locked"><img class="graf-image" src="https://d262ilb51hltx0.cloudfront.net/max/1200/1*TopE0Mg0Dz0IwlqbONde-g.jpeg" data-image-id="1*TopE0Mg0Dz0IwlqbONde-g.jpeg" data-width="1280" data-height="855" data-action="zoom" data-action-value="1*TopE0Mg0Dz0IwlqbONde-g.jpeg"></div>
The White Rabbit Gallery — Sydney’s home for contemporary Chinese art.
Upping the style ante, the Old Clare bows to the district’s rather raunchy past, while thrusting it into a more glamorous future. Housed in the former Carlton &amp; United Brewery building, the 62-room hotel will not only be a place for visitors to stay, but also a hangout for locals. With a rooftop pool and slick eateries, it’s set to have all the allure of East London’s Shoreditch House, or New York’s Soho House. She’ll be ready to open her doors later this year.
Old Clare hotspots in the making:
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Automata — helmed by Clayton Wells (formerly of Momofuku).
Silvereye — under the control of Sam Miller (formerly of Noma, Copenhagen, World’s Best Restaurant according to the judges at S. Pellegrino).
Kensington Street Social — under the eagle eye of British bad boy, Jason Atherton.
So why should home-hunters care? This food precinct is set to tilt Sydney’s cultural axis towards the inner west. The once uninspiring line between Inner East and West is being reinvigorated.
This is more than the ‘wow’ of new cafes. We’re talking cultural institutions. And that breeds new value.
<ul>
<li>Enmore</li>
</ul>
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No longer aspiring to be Newtown, Enmore has stepped out of the shadows. To food critic Terry Durack, Enmore “is increasingly the Brooklyn to Sydney’s Manhattan”. It’s where grit still kicks charm in the ass. Osteria di Russo &amp; Russo has become a nucleus, with the swinging small bar scene giving Enmore wider appeal.
Young Henry’s know all about it, brewing beer at the base of an old grain silo, they’re now part of the area’s proud identity. Their brews are served all across Enmore Road — in pubs with evocative monikers like The Secret Garden or The Stinking Bishop. It’s a neighbourhood in transition, and a place in which to get a toehold now.
“I saw the potential for growth in this neighbourhood,” says Andrei Meintjes, whose Collectika warehouse on Enmore Road showcases the very best of mid-century modern design. “It’s got more grit than the King Street stretch of Newtown.” Plenty of locals would raise a Young Henry’s to that.
<ul>
<li>Erskineville</li>
</ul>
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The Imperial Hotel — long-committed to the eclecticism of the surrounding areas.
Erskineville Road village is the poster child for the mid-century Aussie strip mall — an intriguing corridor of ferociously independent businesses that pump the lifeblood into the area.
<div class="aspectRatioPlaceholder is-locked"><img class="graf-image" src="https://d262ilb51hltx0.cloudfront.net/max/1200/1*djr3JlqvWjwqlBI5FXEA8Q.jpeg" data-image-id="1*djr3JlqvWjwqlBI5FXEA8Q.jpeg" data-width="1280" data-height="853" data-action="zoom" data-action-value="1*djr3JlqvWjwqlBI5FXEA8Q.jpeg"></div>
Pure &amp; General — a hub of homely exoticism in an already diverse neighbourhood.
“It’s an interesting neighbourhood,” says Linda Gregoriou, owner operator of Pure &amp; General lifestyle store. “It is right in the process of being gentrified, repurposed with precision and taste.” She points to the council street plantings, the brickwork of the curbs, and the many micro-parks — former block-through properties that have been bequeathed to the Erko Council for public use, as signs of a true community spirit. “It feels like Woollhara, twenty years ago,” Linda says.
But down the road from Erko village, is Swanson Street and its vibrant enclave facing Erskineville Park with its fantastic Aussie Deco stadium. This is where the Swanson Hotel opened just a month ago, the relooking of the old Kurrajong pub. Now all old cigar and cognac tones, it’s gentle manly in the best possible way. An old dog, yet still learning new tricks.
There we have three neighbourhoods on the move. Three diverse ways of living in the city. Three pockets offering new value.
Don’t get caught in the headlights. The energy across inner Sydney is unmistakable, but the smartest buying always takes a little more perception.
<a href="https://www.bresicwhitney.com.au/" target="_blank">BRESICWHITNEY</a> is a boutique real estate group founded in Darlinghurst in 2003.
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Three pockets of Sydney it's worth knowing more about: BresicWhitney

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Home values role by 8.5% across the five state capital cities, year on year to the end of February, according to CoreLogic RP Data.
All capital cities recorded a rise in home values. Sydney led the pack with a 13.7% rise year on year, while Perth trailed behind with only a 0.4% gain year on year.
Click charts to open in new window.
<a href="/images/2015/03/02/core-mar-2-seven.jpg" target="_blank"><img src="/images/2015/03/02/core-mar-2-seven.jpg" alt=""></a>
<a href="/images/2015/03/02/core-mar-2-eight.jpg" target="_blank"><img src="/images/2015/03/02/core-mar-2-eight.jpg" alt=""></a>
Source: CoreLogic RP Data
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All state capitals record year on year gains: CoreLogic RP Data

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GUEST OBSERVATION 
­When it comes to investment, the property v shares debate has waged on over the years. But what is the honest unbiased answer? The question itself leaves the answer open to much interpretation, so I’ll do my best to present a balanced overview of the arguments.
The general consensus is that the housing market offers a more stable investment option due the constant demand of the market. Houses are one of the few assets that are a must-have. Everyone needs a house and the demand will continue to rise along with the population.
Investing in shares is often perceived as a riskier route, left to those who thoroughly understand the game, and those who like the gamble of holding shares during volatile periods on the market.
However, those perceptions aside, what are the cold hard facts surrounding this debate?
<ul>
<li>Security</li>
</ul>
From a young age we are led to believe that owning property is literally ‘as safe as houses’. This confidence in the market is one of the driving forces behind people’s faith in investing such large amounts of capital, with today’s properties worth in excess of hundreds of thousands of dollars.
This trust further extends into the lender’s jurisdiction, with bankers prepared to loan more money against property (90%), than against shares (50%), and at a lower rate of interest. However, as dwellings become more volatile, these levels of borrowing may be subject to review.
It is also important to note that, as an asset, property can very rarely be worth nothing, unlike a share, which can leave the investor with an asset with no value.
<ul>
<li>Transparency</li>
</ul>
It’s difficult to fabricate the quality of a property investment opportunity. Residences are a tangible asset that can be inspected and reviewed prior to purchase, with most risks identified during this pre-investment stage. This is in contrast to a share purchase where the investor is dependant upon the company directors offering integral feedback on the risks involved, and behaving accordingly in terms of legal and corporate regulations.
In today’s market, there is much more information available to hand in regards to a property’s history, market performance and characteristics.
<ul>
<li>Market value</li>
</ul>
The estimated total value of Australia’s residential portfolio is in excess of $5 trillion, whereas the total market capitalisation of the stock market is suggested to be in the order of $1.5 trillion.
<ul>
<li>Commitment</li>
</ul>
Property investment is a long-term commitment. Shares tend to provide higher returns, at less risk, within a shorter period of time, whereas houses and units provide higher return in the long run.
On another note, you can’t decide at any one time that you wish to dispose of the property and expect to make a quick buck. Sometimes it can take many months to sell, and to get the most out of your investment you must be prepared to wait until the right offer comes along.
<ul>
<li>Ambiguous</li>
</ul>
It’s not always easy to identify the market value of a property. This fluctuates consistently based on many factors including market conditions, employment rates, local amenities, crime, infrastructure and development – all interchangeable factors that affect the value of a property.
<ul>
<li>Upfront costs</li>
</ul>
To step onto the property ladder you have to commit to a huge initial capital investment. This investment will also be attributed to a single entity, ensuring you are locked in to the performance of that individual asset over time. Investment in shares, however, can be diversified, with the risk spread out across various markets and mediums.
From the above analysis, I think it’s fair to say that overall an investment in housing appears the be the lower risk solution, although I think that the important question is whether an investment in housing provides a better total return.
As the appealing Australian lifestyle has drawn more investment in our housing market, people now view dwellings more as portfolio assets than buildings to live in. As a result, Australian housing markets have seen higher volatility and lower rental returns. Between June 2005 and June 2014 alone, the average house in Sydney provided returns between -1.00% and 20%.
On the other hand, while many reports do indicate an investment in shares is the better performer, I believe these reports are based on time frames that benefit the shares market and do not take the risk factor into account.
A better quality analysis would seek to compare the two over a longer timeframe, taking many different investment periods into account and then consider the medium outcome. That analysis would take into account all income streams of the assets and allow for leverage and taxation.
Eliza Owen is a market analyst for <a href="https://www.Onthehouse.com.au">Onthehouse.com.au</a>.
You can find out more at the <a href="https://investors.onthehouse.com.au/">Investor Centre</a> at Onthehouse.com.au.
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Property v shares - the age-old debate: Eliza Owen

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You don’t become a fully fledged member of Australian society without first owning a property. And the more properties you own, the more Australian you become. Take this far enough and eventually even The Block becomes compelling viewing.
We know this to be true because the tax system, like reality TV, is a mirror to our national aspirations. Both tell us that property investment is good and rising house prices even better.
Australians do not pay capital gains tax on the family home and investors can negatively gear their property investments. Own 30 properties? Please, claim a tax deduction on all of them. Want to cut your capital gains tax bill in half? Sure, just hold the asset for more than 12 months.
As the effects of these policies took hold and prices rose, first-home owners were squeezed out. This wasn’t politically acceptable and anyway, who was going to hold up the ladder if not those on the bottom rung?
The solution was to throw money at them, too. In Tasmania, home to some of the cheapest housing in the country, the state Labor government recently<a href="https://www.themercury.com.au/lifestyle/new-home-grants/story-fnj64ocs-1226754568608" target="_blank"> increased the first-home buyer’s grant to an incredible $30,000</a>. Self-managed super funds were also recently encouraged to leverage into the boom.
Now Treasurer Joe Hockey has turned the idiocy up to 11 by suggesting those struggling to get on the property ladder should also be allowed the chance to blow up their super funds by speculating on higher house prices. Well, if super funds can do it, why not everyone else?
There is bipartisan stupidity on housing market affordability policies. Politicians of both major parties love the idea of throwing huge sums of money to make the problem worse. They want to make housing more affordable, but only if they can do so by pushing prices up.
There is simply no evidence to suggest first-home owner grants make property more affordable. There is plenty of evidence to suggest they make them more expensive.
As Bank of America chief economist Saul Eslake told a Senate committee in 2014: "It's hard to think of any government policy that has been pursued for so long, in the face of such incontrovertible evidence that it doesn't work, than the policy of giving cash to first-home buyers in the belief that doing so will promote home ownership."
But instead of ending the stupidity, like so many treasurers before him Joe Hockey is intent on finding another way to perpetuate it.
The effect of these policies is three-fold. First, property prices have well beyond the rate of inflation and wage growth (see <a href="https://www.afr.com/p/national/australia_housing_boom_in_five_graphs_OEp5Bttj0dyWeE9zAEXxjM" target="_blank">Australia’s housing boom in five graphs</a>). Second, despite taxpayers spending billions on first home-owner grants since 1964, the share of first-home buyers as a percentage of the total market has never been smaller. In November last year, they represented just 12.3% of the market.
Finally, owning property is becoming something only the rich can afford. Eslake suggests that <a href="https://www.ahuri.edu.au/downloads/media/The_Australian_-_Locked_out.pdf" target="_blank">the top 20% of income earners own 36%</a> of the housing stock.
There are many things politicians could do to make housing more affordable, not least of which would be to eliminate negative gearing. That would remove some of the demand for housing. Making it easier and cheaper to build through greater land releases and quicker and cheaper development approvals would increase supply. The combined effect would be lower property prices.
But that isn’t something any politician wants to countenance, let along bring about through sensible, well-reasoned policy.
Until we get a courageous politician that is willing to do that, the bipartisan but expensive charade -- that housing can be made more affordable with policies that push prices up -- will continue.
John Addis is the founder of Intelligent Investor Share Advisor and director of Private Media, publishers of Property Observer. Unlock all of Share Advisor’s stock research and buy recommendations<a href="https://landing.intelligentinvestor.com.au/crikey-article?utm_source=crikey&amp;utm_medium=article&amp;utm_campaign=crikey_articles" target="_blank"> by taking out a 15-day free membership</a>.
This article first appeared on <a href="https://www.crikey.com.au/" target="_blank">Crikey</a>.
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The expensive illusion of housing affordability policy: John Addis

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GUEST OBSERVATION
Located just 11 kilometres south-east from Melbourne’s CBD, affluent Caulfield is one of Glen Eira’s most popular suburbs.
Bounded by Orrong Road, Dandenong Road, North Road and Booran Road, Caulfield offers a vast number of amenities to its 32,000 residents.
With a strong reputation for being one of Melbourne’s most desirable middle class suburbs, leafy Caulfield attracts a culturally diverse population.
Being a major transport interchange, Caulfield boasts excellent public transport links - ideal for residents who commute into the city for work. Meanwhile, the area’s numerous prestigious and wel -regarded schools including Caulfield Grammar, Wesley College, Caulfield High and Leibler Yavneh College; makes the area popular among families with children. Due to its proximately to Monash University’s Caulfield campus, the area is also popular with students.
For shopping, residents tend to flock to nearby Glenhuntly Road in Elsternwick, which offers a number of international delis and Jewish bakeries as well as the popular Eco’d outlet - a haven for fashion enthusiasts looking for trendy international labels.
With the introduction of a number of new gourmet eateries in recent years, the area has been placed on Melbourne’s gastronomy circuit. For the perfect cold-drip brewed latte and Reuben sandwich, locals head to Einstein’s 251 on Hawthorn Road while Tuck Shop Takeaway, a modern take on an old-fashioned burger joint, has proved to be hugely popular with locals and visitors alike. In nearby Ripponlea resides Attica, Australia’s most awarded restaurant. 
Caulfield Park is the perfect setting for families and fitness lovers. Residents can often be found jogging around its border, enjoying a personal training session, or using one of the three children’s play areas. The park also is home to a number of sporting clubs and playing fields.
A host of options are available with regards to property types in Caulfield. The suburb is divided into three different areas, Caulfield North, Caulfield and Caulfield South. Caulfield North, being one of the most affluent locales, is known for its grand Victorian mansions, tree-lined streets and tranquil family feel. In more recent times, a number of apartments have been built in the area which tend to be occupied by young professionals.
Caulfield and Caulfield South are popular areas for young families, in particular those who have been priced out of the surrounding suburbs. In terms of accommodation types, these areas contain a number of town houses, Californian bungalows and Edwardian homes. Apartments are also plentiful here.
Given the area is divided into three parts, property prices vary from one locale to another. For example, in Caulfield South the average property price is around $1,125,000 for a house and $600,000 for a unit or apartment. Whereas in Caulfield North, an entry-level family home is upwards of $2,000,000.
As with many other suburbs that offer close proximity to the city, there is a high demand for housing in the area. In light of this, Caulfield offers excellent potential for capital growth, with annual price increases of around 5%. Renters make up around 30% of people residing in the area; tending to choose the suburb for its excellent transport links to the city, large family friendly blocks of land and proximity to Monash University’s Caulfield campus.
With that said, the vast majority of people living in Caulfield North are owner occupiers as property types in this area are predominantly luxury homes. In Caulfield and Caulfield South, rental properties fetch an average of $600 per week for a house and $395 per week for a unit or apartment.
For those looking to buy, Caulfield ticks all the boxes. Good schools, great transport links and large blocks of land make it the ideal place for affordable inner-city living.
Alex Flamm is director of <a href="https://www.hodges.com.au/hodgescaulfield" target="_blank">Hodges Caulfield</a>.
Photo courtesy of Stephen Edmonds/<a href="https://creativecommons.org/licenses/by-sa/2.0/" target="_blank">C.C. BY 2.0</a>.
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Caulfield - a diverse, well connected suburb: Hodges' Alex Flamm

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GUEST OBSERVATION
Often cited as one of the best areas to live in Melbourne, Bayside’s suburbs are an idyll of picturesque coastlines and quality residential zones.
Stretching 17 kilometres around Port Phillip Bay, the area is within close proximity to both the beach and the CBD, making it a popular choice for home buyers. Coupled with education opportunities, shopping strips and good capital growth on property investments, Bayside offers a lifestyle that is hard to surpass.
Property prices in the area have been strong for a long time and continue to gain momentum. A number of factors help to support the property market when it comes to real estate in the area.
<ul>
<li>Location, location, location</li>
</ul>
The Bayside region features a number of good private schools and excellent public primary schools making it a natural choice for those looking to raise a family. However, it is not just families that are attracted to the area.
Bayside’s good transport links and close proximity to the CBD make it popular among people who commute into the city for work.
Other attractive lifestyle factors include each suburbs village like setting - including low rise shopping strips, trendy cafes, green spaces and exceptional sporting facilities.
<ul>
<li>Good investment</li>
</ul>
Property prices across all Bayside suburbs have remained strong. The median property price for a house in Brighton is $1,635,000 and $720,000 in Mentone.
All of Bayside’s suburbs are considered to be high demand areas, with the number of people viewing each listed property higher than the state average.
The area also remains a popular choice for investors looking to purchase rental properties - with almost 22% of the region’s residents living in rented accommodation. The median rent across the Bayside precinct is $600 per week for a house and $400 per week for a unit. Both have a median rental yield of around 4%.
<ul>
<li>
Variety 
</li>
</ul>
Bayside is home to some of the most desirable property types in Melbourne. The area sees a host of different property styles in each suburb and with such variety, there tends to be something to suit all budgets.
Much of the traditional architecture is well preserved across the region and each area has a slightly different style and price bracket.
Brighton is one of the most affluent Bayside suburbs and the property on offer reflects this. The area has a number of larger traditional homes and mansions and in recent times has experienced an influx of luxury developments.
Property prices in Beaumaris vary and the area is popular for its large blocks of land and traditional Beaumaris style homes.
Sandringham is home to a number of Edwardian style properties and California bungalows.
Mentone is one of the most affordable Bayside suburbs - buyers can purchase modern townhouses and as units here among other styles.
Bayside will continue to be a good choice for buyers looking for a good investment.
The demand for rental properties and home ownership in the area continues to grow as do developments.
Paul Bond is a director of <a href="https://www.hodges.com.au/" target="_blank">Hodges Real Estate Sandringham</a>.
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Melbourne's Bayside remains popular with residents and investors: Hodges' Paul Bond

Toga Group's Charlotte Vidor leads the property representation amid Australia's top female entrepreneurs

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]

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