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I last wrote about the prospect of lower growth rates, lower demand for higher-value properties and higher demand for lower-value properties in the residential sector in the next decade relative to the previous decade.
I also spoke about the need for more cost-conscious specification, smaller size and higher density housing for Australia’s growing population.
In this more competitive and potentially lower growth environment, how will residential property investors and developers prosper?
All of the usual rules about location, proper due diligence, efficient procurement and risk mitigation hold true, however one aspect of residential property that has often been neglected in previous decades, and which will become increasingly important in the coming decade is ‘good design’.
In this article I discuss how Charter Keck Cramer views the value of good design and why it’s important to consider when making an investment and undertaking development in the residential sector.
Let’s start with the question, what is good design?
In general terms, good design provides for outcomes that function, that feel right, that are striking, that last the test of time and are cost-effective to use and maintain.
In specific terms, good design includes high ceilings, flexible spaces, high-quality fixtures and fittings, good natural light access, cross-flow ventilation, double glazing, low-energy lighting, a high level of insulation, a high level of sound separation, non-toxic building materials and robust and low-maintenance surface materials.
There are many more aspects to good design, and too many to list here, however in summary good design is as much about what you cannot see, as it is about what you can see.
In saying this, what I also mean by good design, is that it must be accompanied with good construction in order to be effective.
So why are we not as critical about the design of our homes as we are about the design of our cars?
In cars we look for safety, fuel efficiency, reliability, acceleration, serviceability and looks – all measured through ratings and reviews that everyday consumers can access through reputable sources.
Surely we should know at least as much, if not more, about the home in which we live? While we might not know as much about the design of our homes as our cars, occupiers are becoming more sophisticated in their understanding of design and investors and developers will therefore need to respond in order to prosper in this increasingly competitive residential sector.
So, what is the value of good design for investors?In the next decade, investors will no longer be able to rely on riding the wave of strong returns that we saw in the residential sector in previous decades. Capital growth will still be available, however it will be harder to achieve.
 
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Along with selecting a location with good fundamentals, the design of residential property will be a key factor in determining return prospects for the following reasons.
1. Increasing sophistication of demand: As has been the case for many other industries, such as fashion, hospitality, cars and technology, the demand for residential property is becoming increasingly sophisticated. As the population continues to grow, the preference for inner city living persists and the affordability of detached dwellings in the inner city decreases, occupiers will be increasingly looking for apartments and townhouses that are well designed and can address their functional and lifestyle needs in a smaller footprint.
2. Large supply of homogenous product: Despite the increasing sophistication in demand, the supply of new residential property has been largely homogenous. In the off the plan (OTP) apartment sector, the homogeneity of the product is largely a result of a combination of two reasons. Firstly, the composition of demand has been roughly 70 per cent investors over the history of the market. Secondly, the relative strength of the residential property market over this period, has allowed investors to enjoy strong returns, without needing to invest in better quality product. A consequence of this has been developers have not had the incentive to supply better quality product and they have therefore, in the majority, followed a similar formula to deliver investor-grade product project after project.
3. Growing awareness of maintenance and running costs: Investors are becoming more aware of the higher maintenance costs associated with poorly designed residential property. For example, delaminating cupboard doors, replacement of cheap fittings and fixtures, faulty appliances and repair of building façades are common and expensive maintenance items in poorly designed apartment buildings that can be avoided if an investment in good design is made from the outset. Similarly, occupiers are becoming more aware of the higher costs of running poorly design apartments.
For example, an instantaneous electrical hot water system is cheaper to install than a gas hot water system, however is significantly more expensive to run. Another common example is poorly insulated walls which result in higher heating costs during winter. Logically, as awareness of these issues grows, occupiers will be prepared to pay higher rents for residential property with lower running costs relative to those with higher running costs. This will particularly be the case in a market with higher vacancy.
 
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4. Changing market dynamics: If there continues to be investor fatigue as we approach the end of the current cycle in the OTP apartment sector, could owner-occupiers comprise a higher proportion of demand in the next cycle? If this happens to be the case, consider the next question. While you might be an investor in today’s market, who will buy your property when you decide to sell? Will it be another investor or an owner-occupier?
Keep in mind that there are fewer incentives for investors to buy established apartments and indeed most foreign investors are prohibited from doing so. For these reasons, owning a property that appeals to owner occupiers is a sound approach, particularly in the current climate.As a consequence of these four trends, we expect to see lower vacancy rates, higher rents, better capital growth and, therefore, better returns, for well- designed residential property relative to lesser designed residential property.
Accordingly, this is why we think there is value in good design for investors in the residential sector. And, what is the value of good design for developers? In a market where investors are increasingly seeing the value in good design, and where owner-occupiers are likely to comprise a higher proportion of demand than they have previously, we think it will make sense for developers to supply well-designed product to the market for the following reasons
1. Higher prices and/or faster sales: Selecting the right design team that can deliver good design which is differentiated and caters to the needs of occupiers will benefit developers through either higher pricing or faster sales when compared to homogenous product. These benefits justify the additional investment in the right design team and the right design process upfront. More than just higher prices and/or faster sales, and particularly in the current OTP apartment market, where there are concerns about oversupply and fatigue in investor demand, good design can in fact be the difference between a project succeeding or failing, and there are many recent examples of this.
2. Better planning outcomes: Councils and the broader public are becoming more design literate, and as a result, the quality of design is increasingly an important factor in the planning process. When one proposes a design that is larger than the preferred site outcome set by council, the justification for increased yield shifts to the quality of design, environmentally sustainable design outcomes and the contribution the development proposal makes to the urban context. Clever design can result in improved yield by shifting the debate away from height to articulation and material design. Evidence of the increasing importance of design to councils, can be seen in the issuing of ‘conditional permits’ that require developers to retain the architect for the life of the project. The intention of these conditional permits is to mitigate the risk, which often eventuates, of the built outcome being inferior to the design specified in the original planning permit.
3. Cost-effective design solutions: There is a common misconception that good design always equates to more expensive construction costs. While this can be the case, it does not need to be. A high quality design team can deliver creative solutions throughout the design, documentation and construction phases, resulting in a building which meets the highest design standards, while also being cost effective. Poor results often arise when default and generic solutions and materials are introduced to reduce costs, rather than exploring solutions that work with the design while also being cost effective.
4. Mitigating construction risk: High quality and detailed documentation prior to tender is the best way to assess the scope of works for a project and manage the expectations and competing interests of the client and the contractor. The alternative, of going to tender with only design development or partially documented drawings, often results in either expensive variations or dilution of quality, depending on how well the construction contract is structured and drafted. More often than not, this results in the client ending up with a building that costs more than what was budgeted and/or a building of lower quality than was expected.
 
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5. Focusing the design team: A high quality outcome does not necessarily constitute good design if it is not aligned to market demand and project feasibility drivers. The design team needs to be well briefed about what to design. Then the process needs to be managed and constantly focused on designing the product to fit the specifics of the relevant market segment. With good property advice and information about the target market, along with constant management and review of the design against project feasibility and value drivers, the design process will be most efficient and the outcome optimised.
In summary, we would like to share with you a quote from Paul King, Chief Executive of the Green Building Council UK that articulates the value of good design and summarises our perspective on the matter: “A green building is simply a better quality building. All too often we get hung up on what is green and what is sustainable, but actually, if you think of it as a better quality building, a more efficient building, a better day-lit building, better ventilated, a healthier, nicer place to live, to work or to play – it’s not difficult to make the link between that and a building being worth more to people.
Across Charter’s Development Management team, we have executives qualified as architects. By the nature of Charter’s business, we also work very closely with and are exposed to the ideas and design of a variety of architects and consultants, and place a high priority on ensuring that our clients have the benefit of our experience and understand both the importance and therefore consequence of good design.
Our daily professional challenge involves the review of many development proposals for suitability, market acceptance and ultimate viability and we recognise good design as a fundamental that equally, as much as any other influence, determines the degree of success that any particular project will enjoy.
It is of course preferable to have the right design team involved from the outset, but it is never too late for review and if necessary the introduction of alternative consultants.
Scott Keck is executive chairman at <a href="https://www.charterkc.com.au/" rel="nofollow" target="_blank">Charter Keck Cramer</a>
 
 
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Property investors increasingly seeing the value in good design: Scott Keck

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Five years on from the GFC, its effects are still being felt, particularly, so far as real estate investment and development is concerned, in the critical areas of finance availability and consumer confidence.
The current swirl of economic changes include global de-leveraging, tighter finance, subdued consumerism, lower interest rates, locally a high Australian dollar and mounting concerns about the return on mining investment and global trade patterns. These all come at a challenging time for baby boomers – where do they put their money?
Whilst shares and equities are affected more by global influences, real estate is much more affected by the domestic outlook. In Australia, the fundamentals – given population growth and economic resilience – are strong, although this does not prevent cyclical excesses from time to time such as many believe is now being experienced in the <a href="?option=com_googlesearch_cse&amp;q=Melbourne%20apartment%20market" target="_blank">Melbourne apartment market</a>.
The prospects for real estate growth are determined by a property's "use", measured either by competing demand in the non-rental market such as family homes, or by rental value in the commercial sense such as with retail shops, commercial offices or industrial warehouses and factories. Therefore, the key to successful investment, looking forward, is to fully understand the tenant's business, have a view about the security of its business and understand its capacity to reliably pay rent. Is it a growth business, is it a stable business, or is it a declining business? These are the key criteria.
In relative terms it could be said that the industrial revolution of the 19th Century took us only from the candle to the lightbulb but the electronic or IT revolution of the last 30 years will be far more significant. Over the last 25 - 30 years the business community has been going through an apprenticeship getting used to the new electronic age, but we now have for the first time young executives running major corporations who have electronics and IT in their DNA. Business is now therefore on the verge of being transformed and the speed of the online revolution will be astounding. This has definite implications for real estate in all its commercial forms: retail, office and industrial.
One potential and perhaps unexpected consequence of the electronics revolution is that many companies seeking to maintain profitability by reducing costs through the induction of sophisticated IT may well do it badly and at excessive cost thus damaging their model. Another risk is that they may "de-personalise" a business model which had successfully operated through a high level of "personal client contact" – companies and their share value may be challenged.
 
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There is the serious prospect that the Australian middle class lifestyle is under pressure and that disposable income in real terms is likely to slow or even decline over the next decade. The impact of globalism, the effectiveness of outsourcing through IT into other countries with cheaper remuneration regimes, international competitiveness generally and workplace efficiencies leading to higher unemployment are, to my thinking, ominous signs.
These changes, if they are to occur, must flow through to lower growth rates in real estate, lower demand for higher value properties and higher demand for lower value properties. More cost conscious specification, smaller size, higher density and an overall lower cost approach to housing Australia's growing population will be required.
Australia needs to attract as much investment capital from overseas as possible and rather than just waiting for it to arrive like driftwood on our shores we should be making efforts to garner every possible investment dollar and flicker of interest that the increasingly wealthy overseas investors may be prepared to entertain in this country.
It is amazing that Australians generally are unaware of the socio-economic change that is occurring. The population of the "once lucky country", is firmly on track over the next decade to become the new "white trash" of the rich and more economically powerful broader Asian region headed by China and India. Can't they see it coming?
In contrast to a widely-held belief, I have a concern that the near locality of Australia to the Chinese and Indian markets is not itself a guarantee for those export markets to remain strong customers of Australia.
As both of those huge nations prosper with their growing urban economies, much of their domestic demand will be self-satisfied from within and to the extent that they still need to import, Australia must compete with other South-East Asian countries such as Korea, Thailand, Vietnam and Myanmar, as well as with South America and Africa, and all of which nations are globally very competitive with much lower cost labour regimes than in Australia.
For Australia therefore, things may not be as rosy as so many people are anticipating, and equities may be more volatile than real estate over the next decade.
Scott Keck is executive chairman at <a href="https://www.charterkc.com.au/" rel="nofollow" target="_blank">Charter Keck Cramer</a>
Images courtesy of Flickr.
 
 
 
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Online revolution is astounding but poses risks for real estate businesses: Scott Keck

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At the time of any crisis there is an almost inevitable reaction that overshoots the need for caution. Without doubt, times are now tough – and investment decisions difficult – but importantly such difficulty is not unprecedented given historic cyclicality of property markets. 
Commercial real estate markets in Australia are still highly influenced by domestic factors. The strength of fundamentals has been undermined by global events, but they remain more favourable than in almost all other developed countries with characteristics of low inflation, declining interest rates, robust population growth and modest unemployment. 
Most importantly to property markets, commercial accommodation is in shortage given the limited new supply that has been delivered since the late 2000s due to the initial round of impacts following the 2008 GFC. 
Carefully selected retail, commercial and industrial properties provide regular compounding rental growth and capital return to the combined effect of internal rates of return within the range of 8% to 12% per annum. This overall return does not anticipate strong capital growth in the short term given the constraints imposed by the prevailing economic circumstances, which highlights the need for a longer-term property investment strategy. 
Scott Keck is executive chairman at<a target="_blank" href="https://www.charterkc.com.au/"> Charter Keck Cramer</a>
For more advice on<a target="_blank" href="http://propertyobserver.com.au/ebooks/investing-in-property-in-times-of-turmoil-free-ebook"> investing in property following times of turmoil, download our free eBook.</a>
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Consider investing in select commercial real estate assets over the long term

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It was hoped by many investors that economic and investment fundamentals would settle down, stabilise, and provide an environment in which logical, sound, long-term, low-risk decisions could be made for future medium- to long-term investment.
Unfortunately, this has not been so, and economic turmoil persists typified by the American economic downturn, the European debt crisis and the consequent global share market volatility.
During this drawn-out and extended period of investment challenge, cash has been favoured, as is usually the scenario when other markets become less reliable.
This is particularly so in Australia, where the interest rates in global terms are relatively high, and the banks and capital guarantee institutions well governed and strong, in contrast to many alternatives overseas.
For this reason Australians have been saving more than ever and cash investment into Australia by overseas parties has also strengthened, one of the main causes for the Australian dollar maintaining above parity with the US for so many months. Amidst the turmoil and uncertainly, we have noticed at Charter Keck Cramer that beginning approximately eight months ago, there was a gradual turn to commercial property by shrewd investors, a trend that has now strengthened significantly.
So strong is this return in favour of property that our services to provide due diligence to prospective purchasers is in greater demand than in any period for many years, as I have noted in the forthcoming edition of The Asian Executive. Acting for both local and overseas investors, the focus is on the Australian east coast, Sydney and especially Melbourne.
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<ol>
<li>Australia, especially the east coast, and particularly Melbourne, is assured of sustained long-term population growth.  This foreshadows excellent economic prospects, as strong population growth is the energy and primary growth factor of an expanding economy, and in a society such as Australia, creates strong demand for real estate in all classes.</li>
<li>Over the past four years as a result of the GFC, the Australian markets, which usually depend on “speculative” accommodation, built without commitment, have been inactive.  Consequently the vacancy rates in all property classes – not just residential but also retail, commercial and industrial – are very low, as a result of which rental values are likely to increase dramatically over the next six to seven years, enhancing yield returns and capital growth. 
</li>
<li>Melbourne is the fastest-growing city in Australia. 
</li>
<li>Australia has an outstanding geo-political location, in close proximity to the expanding economies of India and China. 
</li>
<li>The Australian population and economy are relatively small, nimble and quick to respond in a proactive fashion to global challenges. 
</li>
<li>Australia’s sovereign risk is extremely low to the point of being non-existent. 
</li>
<li>Australian politics is not polarised, but rather broadly balanced, and between both political parties, responsive to the private sector. 
</li>
<li>Australia has a high and enviable level of corporate governance, particularly within its banking industry.  The four major banks in Australia are well governed, have strong balance sheets, and remain supportive of the property sector. 
</li>
<li>In Melbourne and Sydney, Australia’s two leading capitals, the private sector is responsible for 93% of all building construction and development.  Accordingly, as population growth creates demand, the opportunities for the private sector are excellent. 
</li>
<li>The Australian property markets are well educated, mature and in general terms, managed by world-class executives operating at levels of best practice. 
</li>
<li>Australia’s long-term economic stability is well underwritten by its natural resources and export markets to the growing economies of India and China. 
</li>
<li>The Australian economy is generally well managed. 
</li>
<li>Over recent years there has been a dramatic increase in interest by Asian and European investors in Australian property, and this is likely to continue.  Asian investors are keen to shift money out of their own countries, and European investors grow more fearful of an EU economic slowdown.  By comparison, Australia offers low sovereign risk, a transparent market, ease of transaction, and strong growth prospects.</li>
</ol>
Scott Keck is executive chairman of <a href="https://www.charterkc.com.au/" target="_blank">Charter Keck Cramer</a>
 
 
 
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Thirteen reasons why Melbourne is the best city in the world to invest in property: Scott Keck

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

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Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

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Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

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Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

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Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

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Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

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[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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Scott Keck

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