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Architects from New York, Chicago and Singapore have been shortlisted to take part in a competition for the design of Cbus Property’s second commercial office project in Brisbane’s CBD, 205 North Quay.
It plans to develop the project in conjunction with partner Nielson Properties.
HASSELL, REX (New York) and Richards &amp; Spence; Cox Architecture, SOM (Chicago) and Rapt Studio; BVN and SHoP Architects (New York); and Architectus and WOHA (Singapore) will compete for the opportunity to produce a concept design for the circa $600 million sustainable A-grade commercial tower that capitalises on its unique waterfront location and transforms the CBD precinct.
“The calibre of expression-of-interest submissions received from architects were of the highest quality, attracting both local and international interest and making the partnership’s analysis and decision-making process difficult,” Adrian Pozzo, CEO of Cbus Property, said.
“Brisbane is a new world city and we plan to partner with the world’s best architects. The strong interest from the architects both locally and internationally has been driven by Cbus Property’s track record, the site’s significant riverfront location, and Brisbane as an emerging global city.
“The site provides an unrivalled opportunity to establish the innovative workplace of the future and create a new commercial building of inspiring architecture that will represent the new world of work.”
The commercial building is intended to add 50,000 square metres of net lettable area to Brisbane’s CBD office market.
It will form part of an exciting new precinct, the North Quarter, which is undergoing a comprehensive transformation with the delivery of new commercial and residential developments, as well as the new Roma Street Station.
The successful team of architects is expected to be appointed in September, with building construction slated for completion in 2023.
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International architects shortlisted for 205 North Quay design competition

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Global construction company Multiplex has topped out South Tower, the new 41-level office building in Melbourne’s CBD.
South Tower at 80 Collins Street is QIC’s $800 million mixed-use project. 
The 80 Collins precinct is owned by Dexus and Dexus Wholesale Property Fund following QIC’s divestment of the asset in May 2019.
The development project is being delivered by QIC GRE until completion.
The development is located at the 'Paris end', of Collins Street and is one of the largest in Melbourne.
The precinct comprises the new South Tower which will provide office space across circa 43,000 square metres, as well as major refurbishments to the North Tower, an existing 47 level A-grade office building, and construction of a 255-room boutique hotel.
The base building design has been undertaken by local architects Woods Bagot, with collaboration from Dutch firm UN Studio on the South Tower and hotel façades.
A 5,000 square metre retail precinct over a ground and podium level will link the hotel to the North and South Towers.
It will also connect three surrounding streets through a series of laneways to become a new prestigious Collins Street shopping destination.
The new South Tower features a faceted glass exterior cantilevering towards Collins Street, and the interior will feature flexible floor plates with the ability to create inter-floor links to allow occupants to engineer their space for collaboration and enhanced connectivity.
At 216 metres tall, 80 Collins boasts panoramic views across Melbourne.
“80 Collins is also one of the most complex builds we are currently delivering in Melbourne, with the new South Tower constructed to cantilever 12 metres over existing buildings on Collins Street,” said Graham Cottam, Regional Managing Director at Multiplex.
Around 550 workers are on-site every day and around 6,000 tonnes of structural steel and 50,000 cubic metres of concrete have been used to date.
Innovative construction methods include the introduction of a double-deck lifting system with a destination control system.
This system allows the development to achieve a Premium building rating and minimises the size of the core to maximise the net lettable area.
The new South Tower has a 6-star Green Star design rating and is targeting a 5 star NABERS Energy rating.
The building is also WELL ready to allow tenants to pursue further fitout certification.
ESD features include a chilled beam mechanical system to allow for passive temperature control as well as the inclusion of intuitive lighting control.
80 Collins is on track for completion in 2020.
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Multiplex tops out QIC's Collins Street tower

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New research funded by City of Parramatta Council and CRC for Low Carbon Living (CRCLCL) has revealed ways temperatures in Western Sydney can be reduced by as much as 2°C. 
Undertaken in collaboration with UNSW, the detailed study examined hot spots on Phillip Street, Parramatta and recommended cooling strategies, such as increased greenery, shading and the installation of water features, to mitigate urban heat.
In addition to lowering temperatures, these methods can increase comfort by 50-60%, the research said.
"Given Western Sydney can be 5-10°C hotter in the middle of summer than suburbs in Sydney’s east, it is important for us to consider ways in which we can address and reduce the impact of urban heat," City of Parramatta Lord Mayor Cr Andrew Wilson said.
The study’s findings will inform aspects of Council’s Phillip Street upgrade.
Proposed additions included in the $4.3 million first stage of construction include wider footpaths, tree planting, and trialling of misting units.
In future stages, cool pavements are also expected to be trialled. 
"The upgrade of Phillip Street is a key project for Council as it is a key thoroughfare for many of the City’s residents, workers and visitors," Wilson said.
"As Parramatta evolves and grows, we want to ensure the City continues to be great place to live and visit, so this research and the cooling solutions it offers are significant."
The research, led by CRCLC researcher Professor Mat Santamouris, examined air and footpath temperatures on Phillip Street and found that the eastern end of the street was 1°C cooler than the west end due to its proximity to the Parramatta River, and asphalt surface temperatures reached above 50°C in unshaded areas. Wind speeds and other measurements were also taken.
"By pinpointing the hot spots through our intense monitoring over a period of time and gathering other relevant data we could then deliver the City of Parramatta with heat mitigation scenarios specific to Phillip Street," said Professor Santamouris. 
"Cooling strategies, together with smart monitoring and innovative technologies will enhance the area’s importance and attractiveness."
The data was gathered using drone-captured thermal imaging and UNSW’s energy monitoring bus, which helped direct the hot spot mitigation strategies.
CRCLCL CEO Professor Deo Prasad said the research was one of the Centre’s many research projects focussed on encouraging low to zero-carbon living throughout Australia. 
"The Parramatta study is another example of the evidence the CRCLCL has collected during its seven-year life, which will help guide local governments, individuals, industries and communities on how they can lower their carbon footprint and mitigate climate change," Prasad said.
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Parramatta study reveals ways to reduce city temperatures by 2°C

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The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (PCI) fell by 3.9 points to 39.1 in July, recording the construction industry's steepest overall rate of contraction in six years.
Readings below 50 indicate contraction in activity, with the distance from 50 indicating the strength of the decrease.
Ai Group Head of Policy, Peter Burn, said the decline in Australia's construction industry deepened in July as the Australian PCI fell to 39.1 points.
Steep declines in residential building activity together with a continued drop in commercial construction saw the construction sector’s performance in July record its sharpest monthly contraction since 2013.
Engineering construction activity maintained its stable pattern of activity of recent months, with reports of some project delays and a decline in new tender opportunities keeping activity weaker than 2018 levels.
"Looking ahead, conditions look more fragile than they have for some time with new orders dropping further into negative territory driven by particular weakness in the pipelines of new work in the housing and apartment sectors," Dr Burn said.
HIA Economist, Tom Devitt, said: "The Australian PCI showed the contraction in overall construction activity accelerated in July, although the news was slightly more positive for the residential components. While residential building activity continued to contract in July there are signs that the pace of decline is moderating.
"The positive impact of two cuts to the cash rate and cuts to personal income tax rates will take time to have an impact on residential building but it provides a sound basis to expect that the decline in activity will slow over the months ahead."
<a href="https://www.propertyobserver.com.au/images/2019/8/7/au%20pci%20.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/7/au%20pci%20.jpg" alt="">
Source: Ai Group &amp; HIA Economist 
Australian PCI – Key Findings for July
<ul>
<li>July marked an eleventh consecutive month of contraction in the Australian PCI®, with the rate of contraction at its steepest in six years (down 3.9 points to 39.1).</li>
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<li>The fall in the Australian PCI® was associated with a continued decline in new orders (down 5.5 points to 36.0 – also a six-year low) and a further reduction in deliveries from suppliers (down 1.5 points to 40.0).</li>
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<li>Employment also recorded a sharper rate of contraction (down 7.7 points to 35.9) indicating a general reluctance by businesses to increase their workforce capacity amid ongoing soft demand at an aggregate level.</li>
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<li>Three of the four construction sectors in the Australian PCI®continued to contract in July (in trend terms), with only engineering construction being broadly stable (down 0.8 points to 49.4). Apartment building was the weakest performing sector, declining for 16th straight month (down 0.2 points to 36.4), while house building also weighed heavily on overall industry conditions in its 12th consecutive month of contraction (up 0.6 points to 38.3).</li>
</ul>
<ul>
<li>Cost pressures remained relatively high for building projects in July, despite the input prices index dropping 4.2 points to 63.2. Growth in wages also continued, albeit at a more moderate rate (down 3.1 points to 57.8), as difficulties in sourcing skilled labour persist.</li>
</ul>
<ul>
<li>The selling prices index continued to contract in July, if at a slower rate (up 5.0 points to 36.6). This negative reading indicates that rising input prices and other costs are not, on average, being passed on to customers, as profit margins continue to be squeezed for businesses in the construction industry.</li>
</ul>
<a href="https://www.propertyobserver.com.au/images/2019/8/7/au%20pci%202.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/7/au%20pci%202.jpg" alt="">
Source: Ai Group &amp; HIA Economist 
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Construction index records sharpest drop in six years amid weaker demand

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The PwC-audited listed rural property trust, Rural Funds Group saw its share price jump by 50 cents on resumption to ASX trading having slumped earlier this week by 50 percent.
The stock had dropped 99c to $1.36 in its early trade, with its Thursday resumption seeing trading at $1.86 in Thursday trading.
It was a 36 percent gain.
It is still trading below the price before the rural property trust was the subject of an adverse report by a short selling research group.
The earlier $335 million wipeout in just under the first 30 minutes of trade on Tuesday came after it was targeted in a report by the US-based short-seller Bonitas Research.
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Bonitas's previous damaging report was on Blue Sky Alternative Investments last year. 
Rural Funds Management managing director David Bryant had quickly hit back at the negative report, and presented shareholders with an update today.
Byrant has engaged EY to undertake a review within the next three week of the audited accounts which he said were accurate, barring one small item.
RFG owns more than $900 million worth of agricultural assets including almond and macadamia orchards, vineyards, water rights and cattle farms.
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It was last in the headlines when the rural property trust bought Cobungra Station (pictured) for $35 million earlier this year.
Cobungra Station – one of Victoria's largest and most prestigious high-country beef breeding enterprises – was sold for only the third time in 100 years.
The $35 million deal secured the 6486-hectare alpine beef property at the foot of Mount Hotham, plus more than 24,000 hectares of adjacent grazing licences.
 
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Rural Funds Group shares jump after earlier attack from Bonitas Research

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Mirvac's residential revenue has fallen 33 per cent in 2019 in the so-called soft downturn.
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Mirvac Group announced its full-year results for the financial year ended 30 June 2019.
 The group achieved an overall statutory profit of $1 billion for the fourth consecutive year, delivered at the top end of guidance.
Mirvac’s Susan Lloyd-Hurwitz, suggested it was its "award-winning urban asset creation capability" that helped keep it in a robust capital position.
It settled 2,611 residential lots, exceeding the Group’s FY19 target. 90% of exchanges were domestic.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/8/Mirvac%20operating%20results.jpg" alt="">
Defaults remained below 2 per cent; with secured future income with $1.7 billion of residential pre-sales.
Mirvac’s existing pipeline supports the ability to release over 10,000 lots over the next four years.
The residential division delivered gross development margins of 27 per cent, above their target of 18-22 per cent.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/8/Mirvac%20major%20settlements.jpg" alt="">
It supplemented the group’s residential pipeline of 28,000 lots with the acquisition of a 33.5-hectare site at Henley Brook, WA, 22 kilometres north of Perth and a 171-hectare, quarry site at Wantirna South, VIC, 25 kilometres south-east of Melbourne.
“Despite a challenging market, we have seen sustained sales throughout the financial year, and we achieved our settlement target and maintained our default rate at less than 2 per cent," Lloyd-Hurwitz stated.
"This is testament to the enduring quality of our products and our trusted brand.
“Looking forward, our strong residential gross margin reflects the capital efficiency of our development structures, and we have carefully restocked in the changing market, with a number of new development opportunities in established Mirvac sub-markets including Henley Brook, WA and Wantirna South, VIC, putting us in a strong position to take advantage of the anticipated upswing.”
 
 
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Mirvac's residential revenue down 33 percent

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Cavvanbah Beach House, a five bedroom holiday let located just metres from Byron Bay's surf beach, has sold for $3.2 million.
The beach house, which nets around $200 a night on holiday letting websites, had been on the market for two years before its recent sale.
It initially had hopes of nearly $4 million when first listed in mid-2017.
Jeremy Bennett from Byron Bay Property Sales secured the sale after quietly taking over the listing.
Nestled on a 865 sqm Cavvanbah Street block, the traditional Australian beach house style home is set amongst lush sub-tropical gardens.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/7/byron%20bay%204.jpg" alt="">
It comprises five bedrooms, five bathrooms and five parking spaces. 
Each of the bedrooms has its own private entrance with direct access to the salt-water pool and gardens. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/7/byron%20bay%205.jpg" alt="">
It's located just a few minutes walk from the town centre. 
It last sold at $1.8 million in 2012.
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Byron Bay beach house sold off market 

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A new three-level home with Swan River views in Mosman Park, Western Australia is currently under offer.
Vivien Yap and Phoebe Shi of Ray White Dalkeith/Claremont have the listing. 
Built in 2015 by Seacrest Homes, the home at<a href="https://www.realestate.com.au/property-house-wa-mosman+park-131118026" target="_blank"> 2 Masson Mews</a> comprises five bedrooms, five and a half bathrooms, open plan living, home theatre and pool.
The gourmet and chef-style kitchen is completed with Gaggenau and Miele appliances plus fully-equipped butler's pantry. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/5/mosman%20park%202.jpg" alt="">
The open-plan living area offers Swan River views and combines with an alfresco entertaining area featuring outdoor kitchen and swimming pool.
The upstairs comes with master suite with lounge area and river views, and three minor bedrooms all with private ensuite.
There is another fully equipped guest suite with kitchenette and ensuite.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/5/mosman%20park%203.jpg" alt="">
Other highlights of the home include separate study, polished veneer built-in furniture, elevator, and custom glass door. 
Positioned with views of the Swan River, it is only moments from Leighton Beach, restaurants, cafes, and boutique shops. 
It was auctioned on-site on July 27. 
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Mosman Park trophy home with Swan River views under offer

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EG, an Australian real estate fund manager, has purchased 230 Captain Cook Drive, Kurnell in NSW for $36 million.
The transaction was brokered off-market by Trent Gallagher of Colliers International.
Located approximately 30 mins drive from Sydney Airport and Port Botany, the two-level commercial building and industrial warehouse built over three stages between 2010 and 2013 consists of 15,955 square metres of gross lettable area.
The asset has been acquired on a two-year leaseback to Dicker Data, a leading distributor of IT hardware, software cloud and loT solutions.
The net passing income of $2.1 million per annum delivers an initial yield of 5.8%.
The acquisition is the first property secured for the Australian Core Enhanced Fund (ACE), just one month after the $800 million fund was launched.
ACE is an open-ended, diversified fund targeting office, retail and industrial assets.
The Head of Australian Core Enhanced Fund, Daniel Farley said the Dicker Data facility offers a newly constructed, high-quality industrial facility located within a gentrifying precinct with strong tenant demand.  
"We are strong believers in the underlying drivers behind the broader industrial market and this asset is perfectly positioned to benefit given the short leaseback period," Farley said.
"EG is looking forward to many more successful acquisitions for our investors in the ACE fund."
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EG makes industrial Kurnell acquisition for Core Enhanced Fund

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Andrew Wilkinson, chief executive officer at ALE Property Group has decided after 16 years to depart the group.
Wilkinson intends to remain in the role until the 2018 rent determinations are completed and a new CEO is appointed.
During his tenure Wilkinson has overseen a growth in ALE’s market capitalisation from $91 million to more than $1.0 billion delivering a total return of around 20% per annum.
ALE is the owner of Australia's largest portfolio of freehold pub properties, with 86 across the country. 
The ALE chairman, Robert Mactier, said the board will work with Wilkinson to confirm the optimal timing of his departure.
"ALE will commence a CEO search process in the coming weeks,” he said.
Wilkinson’s announcement follows the recently completed non-executive director renewal process and the lodgement of the 2018 rent review submissions.
ALE Property Group today released its FY19 financial results.
Highlights
· Distributable profit of $28.3 million
· Statutory net profit after tax of $26.6 million
· Full year distribution increased 0.5% to 20.90 cents per security
· Full year distribution will be 81.32% tax deferred
· Current passing gross rent increased 4.28% to $61.04 million following the completion of the 2018 rent review for 36 of the 79 properties involved
· Weighted average adopted yield increased from 4.98% to 5.09%
· Directors’ valuations of 86 properties increased by 2.4% to $1,163.2 million
· ALE continues to benefit from the majority of properties being subject to long term triple net lease arrangements with up to 40 years of options
· Spread between falling Australian Government long term bond rates and the yields applying to ALE’s properties has materially expanded
· Capital position remains strong with gearing at historic low of 41.5%
· Debt maturities are diversified over the next 4.4 years
· Rent review outcomes are expected to deliver a positive result
· 2003 investment of $1.00 in ALE has an accumulated value of $17.44 at 30 June 2019 or an annual total return of 20.1% p.a.
Results for Year Ending 30 June 2019
The difference between the distribution and distributable profit for the period was paid out of capital and funded from existing cash reserves. Distributable profit excludes the non-cash accounting items including changes to investment property and derivative values.
Distributable Profit 
A number of factors contributed to a distributable profit of $28.3 million for the year to 30 June 2019:
· Property income increased by 3.7% to $60.2 million due to rent increases of 10% for 36 of the properties from November 2018, and CPI or fixed rent increases for seven properties, that are not subject to the 2018 rent review process; 
· Borrowing expenses remained largely unchanged;
· Management expenses were higher due to $3.1m of additional costs of preparing rent review submissions for determination; and 
· Land tax expenses increased based on increased land value assessments and the higher rates now applicable in Queensland.
The distribution of 20.90 cents per security will be 81.32% tax deferred.
Accounting Profit Result
ALE’s reported net profit after tax (NPAT) of $26.6 million for the year to 30 June 2019 includes non-cash changes to the value of the properties and interest rate derivatives. The NPAT also includes other non-cash items including amortisation of pre-paid financing costs and CIB accumulating indexation. A full reconciliation of accounting profit to distributable profit has been provided in the Directors’ Report.1
Statutory Property Valuations
The statutory valuations of ALE’s properties increased by 2.4% to $1,163.2 million at 30 June 2019 based on independent valuations of a representative sample of 34 of ALE’s properties conducted by CBRE and Savills. Consistent with the increase in rents and stable market yields for pub properties, ALE’s weighted average adopted yield increased from 4.98% to 5.09%. The portfolio’s passing gross rent (or annualised gross rent as at 30 June 2019), increased 4.28% during the year to $61.04 million.
For further details please refer to the ASX Announcement made by ALE on 15 July 2019.
Capital Management
ALE’s debt capital structure was characterised by the following positive features at June 2019:
· Investment grade credit rating of Baa2 (stable)
· Next debt maturity in August 2020
· Debt maturities diversified over the next 4.4 years
· 100% of forecast net debt hedged over the next 6.4 years
· All up cash interest rate of 4.26% fixed until August 2020
· Gearing at historical low of 41.5% (41.6% at June 2018)
· Interest cover ratio at 2.5 times (2.6 times at June 2018)
ALE’s debt facilities include a number of market standard covenants. ALE currently enjoys significant headroom to all of them. The total value of ALE’s properties would need to fall in value by 32% (around $370 million) before meeting the nearest gearing covenant.
ALE has two types of fixed rate debt instruments, Capital Indexed Bonds (CIB) and Australian Medium Term Notes (AMTN) with diversified maturities.
2018 Rent Review 
During the 2019 financial year, ALE’s first major rent review commenced on 79 of the ALE’s 86 investment properties. Of the remaining seven properties, four properties have later review dates, including two that have received CPI increases in the current period, and three properties have non-standard leases. 
On 3 August 2018, ALE issued rent notices to its tenant, ALH, advising that the rent on each of the 79 properties subject to the current rent review should increase by 10%. ALE and ALH had already agreed that two properties’ rents would increase by 10%. ALH accepted the rent notices on 32 of the properties and rejected the remaining 45 notices. ALH has subsequently accepted two additional properties. 43 properties remain subject to independent determination.
The 36 accepted rent notices and regular CPI and fixed rent increases on six other properties increased ALE’s total passing gross rent as at 30 June 2019 to $61.04 million, an increase of 4.28% on the prior year. QLD land tax is the only deduction included in ALE’s total net passing rent.
The passing gross rent for the remaining 43 properties may increase or decrease by up to 10%.
The following table provides additional information around the types of leases and timing of the rent reviews:
ALH and Endeavour Group
On 3 July 2019, Woolworths Group, ALH’s majority shareholder, announced that it has entered into an agreement to merge its Endeavour Drinks division with ALH. Woolworths’ shareholders approvals for the merger are expected in late CY19 and the merged entity is to be named Endeavour Group. This will create Australia’s largest drinks and hospitality business with sales of approximately $10 billion and EBITDA of $1 billion.
Following the merger and as a second step, during CY20 it aims to separate Endeavour Group from Woolworths by demerger or value accretive alternative. In event of a demerger, the Group’s capital structure will target an investment grade rating.
ALE will continue to monitor any developments in relation to the control and ownership of ALH.
ALE’s Performance
As indicated by the chart below, ALE has underperformed both S&amp;P/ASX 300 AREIT index and the S&amp;P/ASX All Ordinaries Index over the past one and three years. However over the past five, 10 and 16 years to 30 June 2019, ALE has delivered total returns that have outperformed both those indexes.
A $1.00 investment in ALE at the time of the ASX listing nearly 16 years ago, with reinvested distributions, would have grown to $17.44 as at 30 June 2019.
This is equivalent to 20.1% p.a. total return since the ASX listing.
FY20 Outlook 
Non-recurring FY19 rent review submission costs of $3.1m reflect the commitment of time, resources and external experts to the process. 
ALE’s current view is that the total passing rent is materially less than the uncapped rents. That said, the extent of the difference between passing and uncapped rent is not evenly spread across the portfolio. 
Rents may increase or decrease by up to 10% for remaining 43 determinations. The range of gross passing rent for the portfolio of 86 properties is as follows:
· Worst case $58.5m (no change)
· Best case $63.7m (+8.9%)
Note: Changes are in comparison to the gross passing rent before any Nov 2018 rent increases are applied. Best case is less than + 10% as seven of the 86 properties are not included in CY18 rent reviews 
ALE remains confident of a positive result but notes it may not receive a full 10% rent increase for all properties. The remaining 43 rent determinations are to be handed down at the same time and are currently anticipated late CY19. The rent determination results will be back dated to 4 November 2018. 
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ALE Property Group CEO resigns

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

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