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While most people are not buying homes in the city’s million dollar suburbs, if you were, which would be the easiest to purchase in?
Based on the latest housing market information from RP Data, Melbourne has 46 suburbs with a median house value in excess of one million dollars. <a target="_blank" href="/news">Toorak</a> had the highest value at $2,756,000 and <a target="_blank" href="/news">Ormond</a> the lowest at $1,005,000.
{yoogallery src=[images/stories/2013/09/23/too]}
Photos: 16 St Georges Road, one of Melbourne’s most significant homes,  which Property Observer gleans <a target="_blank" href="https://www.propertyobserver.com.au/news/offshore-buyer-secures-16-st-georges-road-toorak-from-peter-devitt-in-circa-%2420-million-sale/2013092165175">sold for around $21 million</a> back in September 2013.


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Values may range between Toorak and Ormond, however, if you are a buyer it will be numerically easier to purchase in a suburb with a larger number of houses on the market.
For instance the $5 million suburbs with the highest number of houses on the market were: <a target="_blank" href="/news">Portsea</a>, <a target="_blank" href="/news">Brighton</a>, <a target="_blank" href="/news">Toorak</a>, Balwyn and <a target="_blank" href="/news">Canterbury</a>. In these cases between 7.2% and 6.1% of houses were on the market over the 12 months ending in November.
That is well above the citywide number of 5.2%.
{yoogallery src=[images/stories/2014/02/10/can]}
Photos: Earlier this week Property Observer reported on the <a target="_blank" href="https://www.propertyobserver.com.au/victoria/canny-contemporary-canterbury-offering-by-five-time-veterans/2014020967646">four year old award winning Canterbury contemporary residence</a> of Lynette and Alan Knights, which has been listed for sale. The Melbourne vendors are seeking $3 million plus.


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At the other end of the spectrum were some very tightly held but geographically diverse suburbs: <a target="_blank" href="/news">Kangaroo Ground</a>, <a target="_blank" href="/news">Caulfield</a>, <a target="_blank" href="/news">Ivanhoe</a>, <a target="_blank" href="/news">Parkville</a> and <a target="_blank" href="/news">Kew East</a>. With between 2.3% and 3.1% of houses on the market buyers had a much harder task buying.
{yoogallery src=[images/stories/2014/02/14/kang]}
Photos: This seven bedroom house at <a target="_blank" href="https://www.realestate.com.au/property-house-vic-kangaroo+ground-114810647">155 Kangaroo Ground Street and Andrews Road, Kangaroo Ground</a> is currently listed for sale with an estimated sales range of $1.7 million to $1.9 million through Tristan Messerle and Graham Morrison of Morrison Kleeman Estate Agents.


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Interestingly, there is little correlation between how tightly these suburbs are held and other property data such as changes in sale prices, value or even geography.  This is an interesting fact for buyers and shows that sometimes if you are fixed on a certain suburb for your home it may take a lot longer than elsewhere.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
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Melbourne's most tightly held million dollar suburbs: RP Data

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There was a remarkable shift in 2013 towards the use of auctions. Based on all sales until the end of November approximately 30.6% of sales were by auction compared to 21% in 2012.
This is an interesting fact for vendors to consider as they face the choice of by what method of sale to sell their home. This is a choice best made in consultation with the real estate agent contracted to sell the home and there is some broader data that helps explain the market trends that can influence the decision.
As anyone who has attended an auction will tell you they deliver the best outcome when there is competition between buyers. For that reason auctions work best when there is a unique quality of the property that can drive competition or there is a rising market.
This can been seen in two sets of data.
Firstly is the overall clearance rate. The clearance rate tends to rise when prices do. For instance in 2013 the house price index for Melbourne rose by 8.5% and the clearance rate was 69%. In 2012 the index fell by 2.9%% with a clearance rate of 55.8%.
The second set of data is the proportion of sales by auction. Over the years auctions are used to sell between 20 and 30% of homes in Melbourne with the balance sold by private sale. The use of auctions is far more prevalent the closer the suburb is to the CBD.
It is important to note that even if you don’t sell at auction the chances are that due to the investment in the marketing you have made should will find a buyer soon after.
RP Data tracks the outcome of homes passed in at auction and has found that over the months of September and October last year an additional 11 to 19% sold. For example, for homes auctioned in the week ending October 13 the clearance rate was 70.2%. Once the sale outcomes over the next 30 days were taken into account for those passed in it rose 11.9 points to 82.1%.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
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Significant shift in the use of auctions in 2013

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The RP Data – Rismark Home Value Index for Melbourne houses reached a new nominal peak in January after a surprisingly strong 3.7% rise. The latest figures surpass the previous peak in October 2010.
The unit index recorded a more moderate 0.2% rise and reached an earlier peak in December 2013.
Not only was a new peak reached but Melbourne recorded the strongest growth of all capital cities. 
First home buyers are at all time lows; this market is being driven by upgraders and investors in the detached houses market and supported by low interest rates.
With very few auctions in January the rise is also a factor of houses sold through private sale, many of which will have been passed in at auction in December.
This current growth phase is being strongly supported by record low interest rates. Ongoing growth may however be moderated by lower consumer confidence in Melbourne.
It should be noted that the index can show natural volatility on a monthly basis as shown by the rises in September, December and now January against a background of reductions in October and November. However the trend is clear, with rises over the quarter and year.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
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Melbourne house values at new peak and leading the nation for growth

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In a recent post I looked at the relative performance of Melbourne investment property from <a href="https://www.propertyobserver.com.au/victoria/melbourne-rental-increases-only-moderate-compared-to-sydney-and-yields-have-stabilised/2014012967390?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=ourobservers:adviceandanalysisforreaders" target="_blank">a rental yields perspective</a>.
Examining yields on a suburb basis provides an interesting metric for investors to consider; the best yields are actually found in the most affordable suburbs.
Of the 10 suburbs with the highest rental yield none have a median house value of more than $350,000.
<a href="/news">Dallas</a> and <a href="/news">Melton South</a> share an indicative yield of 5.7%, well above the city wide yield of 3.4%.
The other suburbs in the top 10 are <a href="/news">Meadow Heights</a>, Coolaroo, <a href="/news">Frankston North</a>, <a href="/news">Carrum Downs</a>, <a href="/news">Melton</a>, <a href="/news">Warburton</a>, <a href="/news">Hampton Park</a> and <a href="/news">Cranbourne West</a>.
At the other end of the spectrum the ten suburbs with the lowest yields, from 1.8 to 2.5% all have median house values in excess of a million dollars, <a href="/news">Portsea</a>, <a href="/news">Toorak</a>, Balwyn, <a href="/news">Kew</a>, <a href="/news">Eaglemont</a>, <a href="/news">Elsternwick</a>, <a href="/news">Canterbury</a>, <a href="/news">Balwyn North</a>, <a href="/news">Kew East</a> and <a href="/news">Caulfield North</a>.
It is interesting to note that while the same rule applies in the unit and apartment market there are a few notable exceptions, such as central <a href="/news">Melbourne</a>, which will be examined in a future post.
Robert Larocca is Victorian housing market specialist for <a target="_blank" href="https://rpdata.com/" rel="nofollow">RP Data</a>.
 
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Yield or capital gain: Investors face a stark decision

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Melbourne renters have seen only moderate rises in rents over the past year, especially when compared to Sydney. At the same time investors have seen static yields but potentially benefited from improved capital growth.
Over the past year the median weekly rent for a house in Melbourne has risen by $10 and by $8 for units. Currently the median rent for a house is $437 per week and $389 for a unit.
This compares to a rise of $23 per week in Sydney to $582 for a house and an $18 rise for units to $509.
It is certainly less expensive to rent in Melbourne than in Sydney and renters have been faced with more moderate increases.
In part, the lower weekly rent explains why rental yields are lower in Melbourne than in Sydney. The yield for a house in Melbourne was 3.4% in December last year and 4.2% for units. In Sydney, the comparable figure was 3.9 and 4.7% respectively.
Over the past two years, yields have not changed substantially for houses in Melbourne with a change from 3.5% 3.4% recorded. Property owners over that time have benefited from capital growth.
Units, which have a higher yield, have recorded a similar change, from 4.3 to 4.2%.
It is interesting to note that over the longer term, yields for both houses and units in Melbourne have stabilised at a lower level. From 2003 to 2005 investors benefited from yields of around 4.4% for houses and 4.9% for units.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
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Melbourne rental increases only moderate compared to Sydney and yields have stabilised

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In the December quarter last year the median value of a house in Melbourne rose by 2.6% to $542,053. Over the last year the increase was 10.7% from $489,696.
A similar increase was recorded for units. The median value of a unit rose by 2.3% to $442,043. Over the last year the increase was 9.8% from $402,440.
This confirms that 2013 was a good year for real estate in Melbourne. Values rose as demand increased and more people bought and sold residential real estate.
The market remains below its previous nominal peak underscoring that we are in a recovery phase.
In the houses market the strongest growth in values over the year was recorded in <a target="_blank" href="/news">Kew East</a>, <a target="_blank" href="/news">Balwyn North</a>, <a target="_blank" href="/news">Caulfield</a>, <a target="_blank" href="/news">Maribyrnong</a> and Balwyn. Value growth was also recorded in the more affordable sub $500,000 segment with the highest growth occurring in <a target="_blank" href="/news">Watsonia</a> where values rose by 12.3% and above the city- wide rise.
<a rel="wp-prettyPhoto[g2835]" href="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table1.png"><img height="301" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table1-580x371.png" alt="Change in values between September 13 Q and December 13 Q - Houses"></a>
The strongest growth over the quarter was concentrated in the more affordable suburbs of <a target="_blank" href="/news">Hastings</a>, <a target="_blank" href="/news">Knoxfield</a>, <a target="_blank" href="/news">Mitcham</a>, <a target="_blank" href="/news">Keilor East</a> along with <a target="_blank" href="/news">Camberwell</a>. This suggests that the substantial rise in auction volumes (the more prevalent sales method in the inner city) acted to moderate price growth.
<a rel="wp-prettyPhoto[g2835]" href="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table2.png"><img height="256" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table2-580x316.png" alt="Change in values between September 13 Q and December 13 Q - Houses"></a>
In the unit market the highest growth over the year was recorded in <a target="_blank" href="/news">Malvern East</a>, Balwyn, <a target="_blank" href="/news">Northcote</a>, <a target="_blank" href="/news">Bentleigh East</a> and <a target="_blank" href="/news">Balwyn North</a>.
<a rel="wp-prettyPhoto[g2835]" href="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table3.png"><img height="257" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table3-580x317.png" alt="Change in values between December 12 Q and December 13 Q - Units"></a>
Taking a broader view of the Melbourne market the data shows that inner eastern suburbs of Balwyn and <a target="_blank" href="/news">Balwyn North</a> recorded the strongest demand across all property types.
Looking forward to 2014, it is clear that the market is primed to move from a recovery to growth phase whilst economic conditions, consumer confidence and monetary policy remain favourable.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
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The best performing suburbs of 2013

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The latest version of RP Data’s Pain and Gain report showed that as we get closer to a new peak in dwelling values the proportion of sellers making a profit on sale is increasing.
Interestingly some of the best outcomes have been recorded in suburbs around 20 kilometres away from the Melbourne CBD.
The report is useful for property investors, small or large, because it looks only at homes that already have an owner and whose sale price is therefore set by the market. Other market data, median prices for instance, mingles the new sales with prices set by the developers and those sold by individuals.
The report showed that only 7.7% of Melbourne homes re-sold in the September quarter of 2013 incurred a loss for their owners. This was lower than the 8.2% recorded in the June quarter this year and 8.3% in the 2011 June quarter.
Of course the longer the home was owned the more likely the owner was to see a profit on sale. The highest proportion of owners selling for more than double what they paid had owned their homes for between 10 and 15 years.
In overall terms the highest overall profit was recorded in more expensive areas with sellers in Boroondara recording $231 million in profit in three months. Whitehorse ranked second with $159 million in profit and Monash third with $136 million.
Despite the very high profits recorded in those inner and middle eastern municipalities it was sellers in Knox that probably had the best outcome with only 2% recording a loss. Those losses totalled only $360,000, less than the value of one house. Second on the list was Manningham where 3.9% of sellers recorded a loss and third was Maroondah with 4.3%.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
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Proportion of sellers making a profit is increasing

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One of the most perplexing market trends right now is the substantial drop in first home buyers in Victoria. According to ABS Housing Finance data, only 12.2 per cent of loans were given to first home buyers in November 2013. This compares to a 20 year average of 21.4 per cent and follows October which recorded the lowest proportion of first home buyers in 20 years.
From a raw numbers perspective, the last time there were fewer than 1,691 of first home buyers recorded in November was in 1991.
It is now 16 consecutive months that the proportion has been lower than the long-term average.  The proportion rose in November but only because the number of non-first home buyers fell to a greater extent.
The reason this a perplexing issue is because Melbourne dwelling prices are still not at a nominal peak and interest rates are at historical lows. When prices last peaked in October 2010 around 18 per cent of loans were given to first home buyers. At the peak of cycle before that, in 2007, it was around 21 per cent. Prices alone cannot be the reason.
One factor may be the cessation of the Victorian Government’s $7,000 First Home Buyers Grant as the proportion dropped 4 points from July to August and has not risen since. It would however be surprising if this alone was the reason as financial assistance is still available for new homes and stamp duty cuts of 40 per cent can still be accessed.
The data also supports the argument that first home buyers are being crowed out by investors. Even if this is the case, it is not a healthy outcome for the market as investors are critical to the supply of rental homes.
It will be very interesting to watch what impact the increasing stamp duty cuts have over the next ten months as the current 40 per cent discount rises to 50 per cent, hopefully it will encourage more Victorian first home buyers back into the market.
 
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 Robert Larocca is Victorian housing market specialist for <a target="_blank" href="https://rpdata.com/" rel="nofollow">RP Data</a>. 
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Where have the Victorian first home buyers gone?

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RP Data has revealed that home owners who sold a home in Flinders over the past financial year have  achieved the best capital gains in Melbourne by gross profit. Closer to the CBD vendors in Armadale have also recorded very high capital gains.
RP Data’s Victoria Housing Market Specialist Robert Larocca said that with 91.9 per cent of sales returning sellers a profit, it was clear that housing was a good investment over the medium to long term and timing is critical when buying and selling real estate.  
<img src="/images/stories/2013/10/18/larocca-oct-18-one.gif" alt="larocca-oct-18-one" height="158" width="470">
"The RP Data quarterly results showed that across the Melbourne metro area, over one third of sellers doubled their original purchase price.  
The Yarra Council region had the smallest proportion of loss making re-sales where just 3.9% of all re-sales recorded a gross loss over the June quarter.  
"The largest proportion of loss making re-sales was located in the Melbourne Council region at 17.3% of all re-sales over the June quarter.  
This unique research by RP Data is derived by comparing the outcomes of resale properties in the past year.  
"Based on profits made from resales of houses, the top five suburbs in Melbourne were Flinders, Armadale, Caulfield, Oakleigh East and Parkville.  
"The suburbs in the top 50 represent a variety of differently priced markets showing that profits are not confined to the most expensive areas.  
"The RP Data top 50 list shows that the suburbs around the hills to the north east and eastern fringe of Melbourne have been good investments with Belgrave Heights, Belgrave South, Montrose, Warrandyte, Mount Dandenong, Olinda, Kallista and Warburton.  
"Over the long term there has clearly been a trend for tree-change close to the city.  
"The other notable trend is inner north with Parkville, Princess Hill and Fitzroy North. These suburbs have been priced at a point where they are very attractive to buyers compared to the inner east and also feature period-style homes.  
"Outside of Melbourne, the strength of the Geelong market was apparent with many suburbs in the region providing all sellers with a profit," Mr Larocca concluded.
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 Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
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The most profitable suburbs for home owners in Melbourne: Robert Larocca

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As we near the year’s end there are a range of key numbers that can help explain the property market this year. This year’s results show that the residential real estate market was certainly healthier than last year, however it still remains below its peak despite being supported by record low interest rates. The high volumes of auctions were, along with moderate rises in value, a highlight but it is concerning that overall transaction volumes are still to recover substantially from 2011 and 2012.
Consumers are still acting conservatively and that prevented a new peak in house values being reached this year.
Sales volume
In the 12 months ending September 13 there were 6 per cent more dwelling sales than the previous 12 months. At the end of 2012 there were72,432 dwelling sales in Melbourne and the comparable number in 2013 is projected to be between 76,000 and 80,000.
Clearance rates
Melbourne fell short of a 70 per cent clearance rate following a softer market and higher supply in the last few months. It has ended the year with a clearance rate of 69.1 per cent which is 13 points higher than last year and second only to 79.4 per cent recorded in 2009.
Listings
The overall number of active listings is 35,524 in Melbourne, which is only 1.3 per cent lower than a year ago, indicates that the increase in new listings has been absorbed but has failed to clear the overall backlog.
Highest sales
In the 12 months ending September, the highest volume of house sales were in all in growth areas, Pakenham, Berwick, Point Cook, Frankston and Craigieburn.  In the unit market there were twice as many sales in Melbourne as the second on the list, Southbank.
Vendor Discounting
The amount that vendors of private sales need to discount from their advertised price was lower this year than a year ago at 6 per cent in October versus 7.2 per cent a year ago. For units the discounting also reduced,  from 6.6 per cent to 5.8 per cent.
Time on Market
Vendors of houses sold at private sale achieved quicker sales at 40 days in October compared to 49 days a year ago. For units it is 38.5 days compared to 43 days a year ago.
Values
House values in Melbourne still remain below their previous nominal peak despite a 6 per cent rise in house values this year. The house price index in November showed values were 3.2 per cent below the peak of October 2010.
 
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 Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
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The numbers that mattered in 2013: RP Data

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Joel Robinson

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

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Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place

Central Element is seeking approval for a significant residential redevelopment in Lavender Bay, lodging plans for a dual-tower apartment project that would deliver 163 new homes on a prominent site at the northern gateway to Milsons Point.

The Sydney-based builder-developer has lodged a concurrent rezoning proposal and State Significant Development Application for <a href="https://www.apartments.com.au/new-apartments/64-66-lavender-street-lavender-bay-nsw-2060">64-66 Lavender Street and 3-7 Middlemiss Street</a>, a 2,305 sqm amalgamated site currently occupied by a collection of ageing residential flat buildings.

Designed by SJB, the proposal would replace the existing 32 apartments with two residential towers rising 23 and 32 storeys, comprising 163 apartments including affordable housing managed by a community housing provider. The project forms part of the NSW Government's Housing Delivery Authority program and has been progressing through a fast-tracked state planning pathway since being endorsed for further assessment in 2025.

The proposal is one of the most significant redevelopment opportunities currently under consideration on Sydney's lower north shore, sitting between the high-density towers of Milsons Point and the lower-scale heritage fabric of Lavender Bay.

<img alt="Lavender Bay" data-entity-type="file" data-entity-uuid="93ecf0ee-487d-4292-afc4-0bc9579475d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.30.48%E2%80%AFAM.png?VersionId=PunU2ipMaTxiJcJ8NdMyUlWA7d98eNUb" />

The planning proposal seeks a substantial uplift from the current 12 metre height limit, which would only allow for a four-storey building, however the submission argues a scheme within these limits would not be&nbsp;economically feasible given the complexity of site amalgamation and would fail to maximise housing delivery on land located within walking distance of major transport infrastructure.

SJB said the design evolved significantly following discussions with the Department of Planning, Housing and Infrastructure and independent design review processes.&nbsp;Rather than pursuing a single larger tower, the architects adopted a two-tower approach aimed at reducing perceived bulk, preserving view corridors and creating greater permeability at ground level.

The northern tower would rise 23 storeys and contain 81 apartments, while the southern tower would reach 32 storeys and accommodate 82 apartments. Five basement levels would provide 174 car spaces, 181 bicycle spaces and 10 motorcycle spaces.

"The proposal for 3–7 Middlemiss Street and 64–66 Lavender Street is driven by a clear ambition to complete the Middlemiss Peninsula, delivering the final piece of a carefully evolving urban precinct," SJB noted in its design report.

"Positioned at the threshold between Lavender Bay and the North Sydney CBD, the development is envisioned as a unifying element—one that completes the skyline composition while providing a considered and harmonious transition between the peninsula’s established character and the intensity of the CBD beyond.

"Collectively, the development aspires to create a landmark that is generous, inclusive, and deeply connected to its setting, one that enhances the skyline, strengthens the public realm, and contributes to a more equitable and sustainable urban future."

Communal spaces would be distributed across multiple levels, including landscaped podium gardens, swimming pool facilities, barbecue areas and rooftop-style retreat spaces designed for residents. The proposal delivers more than 1,500 sqm of communal open space and nearly 400 sqm of indoor communal facilities.

<img alt="Central Element" data-entity-type="file" data-entity-uuid="0671c276-6dd8-4cfc-97b0-134a45d2c8cf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.30.17%E2%80%AFAM.png?VersionId=90D7lRaCTMTsFx92tIBrHlZcuaV_a4cw" />

A major focus of the planning assessment has been the project's relationship with surrounding public open spaces.

Clark Park, Bradfield Park and Wendy Whiteley's Secret Garden are among the lower north shore's most valued public landscapes, and overshadowing impacts have been closely examined through the design process. Central Element is proposing to also create a new public plaza and pocket park as part of the development.

Central Element has been developing across Sydney since 2010.

They have recently completed their Chatswood tower, Ethos Chatswood, as well as their luxury redevelopment of Coogee's landmark Ballamac House. They are currently selling Pearl Bondi, just seven high-end homes, while future plans include a tower on Hyde Park, and a boutique project in Neutral Bay.

Robert Larocca

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