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GUEST OBSERVATION
With its official cash rate now expected to fall below 1% to a new extraordinarily low close to zero, all sorts of people are saying that the Reserve Bank is in danger of “<a href="https://www.reuters.com/article/us-australia-economy-rba-analysis/australias-shrinking-monetary-policy-arsenal-tests-rbas-orthodoxy-idUSKCN1S90CL" target="_blank">running out of ammunition</a>”. Ammunition might be needed if, as during the last financial crisis, it needs to cut rates by several percentage points.
This view assumes that when the cash rate hits zero there is nothing more the Reserve Bank can do.
The view is not only wrong, it is also dangerous, because if taken seriously it would mean that all of the next rounds of stimulus would have to be come from fiscal (spending and tax) policy, even though fiscal policy is probably ineffective long-term, its effects being <a href="https://www.mercatus.org/publication/why-fiscal-multiplier-roughly-zero-0" target="_blank">neutralised by a floating exchange rate</a>.
The experience of the United States shows that Australia’s Reserve Bank could quite easily take measures that would have the same effect as cutting its cash rate a further 2.5 percentage points – that is: 2.5 percentage points below zero.
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Reserve Bank cash rate since 1990
<a href="https://images.theconversation.com/files/277841/original/file-20190604-69059-1j2m4r9.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/277841/original/file-20190604-69059-1j2m4r9.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.rba.gov.au/media-releases/2019/mr-19-15" target="_blank">Reserve Bank of Australia</a>
In a report <a href="https://www.ussc.edu.au/analysis/lessons-from-quantitative-easing-in-the-united-states-a-guide-for-australian-policymakers" target="_blank">released on Tuesday</a> by the University of Sydney’s United States Studies Centre, I document the successes and failures of the US approach to so-called “quantitative easing” (QE) between 2009 and 2014.
It demonstrates that it is always possible to change the instrument of monetary policy from changes in the official interest rate to changes in other interest rates by buying and holding other financial instruments such as long-term government and corporate bonds.
<img src="https://images.theconversation.com/files/279752/original/file-20190617-118539-fe387p.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt="">
Australia can learn form US mistakes. <a class="source" href="https://www.ussc.edu.au/analysis/lessons-from-quantitative-easing-in-the-united-states-a-guide-for-australian-policymakers" target="_blank">University of Sydney United States Studies Centre</a>
The more aggressively the Reserve Bank buys those bonds from private sector owners, the lower the long-term interest rates that are needed to place bonds and the more former owners whose hands are filled with cash that they have to make use of.
In the US the Federal Reserve also used “<a href="https://www.federalreserve.gov/monetarypolicy/timeline-forward-guidance-about-the-federal-funds-rate.htm" target="_blank">forward guidance</a>” about the likely future path of the US Federal funds rate to convince markets the rate would be kept low for an extended period.
It is unclear which mechanism was the most powerful, or whether the Fed even needed to buy bonds in order to make forward guidance work. However in a stressed economic environment, it is worth trying both.
As it comes to be believed that interest rates will stay low for an extended period, the exchange rate will fall, making it easier for Australian corporates to borrow from overseas and to export and compete with imports.
The consensus of the academic literature is that QE cut long-term interest rates by around one percentage point and had economic effects equivalent to cutting the US Federal fund rate by <a href="https://www.ussc.edu.au/analysis/lessons-from-quantitative-easing-in-the-united-states-a-guide-for-australian-policymakers" target="_blank">a further 2.5 percentage points</a> after it approached zero.
QE need not have limits…
Based on US estimates, Australia’s Reserve Bank would need to purchase assets equal to around 1.5% of Australia’s Gross Domestic Product to achieve the equivalent of a 0.25 percentage point reduction in the official cash rate. That’s around A$30 billion.
With over A$780 billion in long-term government (Commonwealth and state) securities on issue, there’s enough to accommodate a very large program of Reserve Bank buying, and the bank could also follow the example of the Fed and expand the scope of purchases to include non-government securities, including residential mortgage-backed securities.
It could also learn from US mistakes. The Fed was slow to cut its official interest rate to near zero and slow to embark on QE in the wake of the 2008 financial crisis. Its first attempt was limited in size and duration. Its success in using QE to stimulate the economy should be viewed as the lower bound of what’s possible.
…even if it becomes less effective as it grows
It often <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-06-16/interest-rates-are-going-down-but-how-low-can-they-go/11210682" target="_blank">suggested</a> (although it is <a href="https://www.rba.gov.au/publications/confs/2017/borio-hofmann" target="_blank">by no means certain</a>) that monetary policy becomes less effective when interest rates get very low, but this isn’t necessarily an argument to use monetary policy less. It could just as easily be an argument to use it more.
Because there is no in-principle limit to how much QE a central bank can do, it is always possible to do more and succeed in lifting inflation rate and spending.
Fiscal policy may well be even less effective. To the extent that it succeeds, it is likely to push up the Australian dollar, making Australian businesses less competitive.
US economist <a href="https://www.mercatus.org/publication/why-fiscal-multiplier-roughly-zero-0" target="_blank">Scott Sumner</a> believes the extra bang for the buck from government spending or tax cuts (known as the multiplier) is close to zero.
Reserve Bank Governor Philip Lowe this month appealed for <a href="https://www.rba.gov.au/speeches/2019/sp-gov-2019-06-04" target="_blank">help from the government itself</a>, asking in particular for extra spending on infrastructure and measures to raise productivity growth.
He is correct in identifying the contribution other policies can make to driving economic growth. No one seriously thinks Reserve Bank monetary policy can or should substitute for productivity growth.
But it is a good, perhaps a very good, substitute for government spending that does not contribute to productivity growth.
Three myths about quantitative easing
In the paper I address several myths about QE. One is that it is “printing money”. It no more prints money than does conventional monetary policy. It pushes money into private sector hands by adjusting interest rates, albeit a different set of rates.
Another myth is that it promotes inequality by helping the rich to get richer.
It is a widely believed myth. Former Coalition treasurer <a href="https://www.afr.com/news/economy/monetary-policy/murdoch-criticises-central-bank-stimulus-20141017-119n1f" target="_blank">Joe Hockey</a> told the British Institute of Economic Affairs in 2014 that: "Loose monetary policy actually helps the rich to get richer. Why? Because we’ve seen rising asset values. Wealthier people hold the assets."
But it widens inequality no more than conventional monetary policy, and may not widen it at all if it is successful in maintaining sustainable economic growth.
A third myth is that it leads to excessive inflation or socialism.
In the US it has in fact been associated with some of the lowest inflation since the second world war. These days central banks are more likely to err on the side of creating too little inflation than too much.
Some have argued that QE in the US is to blame for the rise of left-wing populists like Alexandria Ocasio-Cortez and “<a href="https://realconservativesunite.com/2019/03/07/ben-bernanke-the-father-of-extreme-us-socialism/" target="_blank">millennial socialism</a>”. But it is probably truer to say that their grievances grew out of too tight rather than too lose monetary policy.
QE has been road tested. We’ve little to fear from it, just as we have had little to fear from conventional monetary policy.<img src="https://counter.theconversation.com/content/118843/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Stephen Kirchner, Program Director, Trade and Investment, United States Studies Centre, University of Sydney
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/below-zero-is-reverse-how-the-reserve-bank-would-make-quantitative-easing-work-118843" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

How the Reserve Bank would make quantitative easing work

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A chicken farm located in the fast growing Penrith regionhas hit the market.
Set on a level 28,140 square metre block of rural land, the working property at <a href="https://www.realestate.com.au/property-residential+land-nsw-llandilo-202427414" target="_blank">338 Ninth Avenue, Llandilo</a> features a bush adjacent location.
<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/2019/6/13/llandilo%202.jpg" alt="">
It comes with a renovated five bedroom with pool and capacity for 12,000 caged and 2,000 free range chicken selection with approved egg licence under NSW Department of Primary Industry.
With potential with R2 re-zones on all sides, the property is within easy reach and connections to rail and the future airport at Badgerys Creek. 
It has been offered by Jason Salter from Liang + Simmons Projects.
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Penrith working chicken farm for sale

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ME Bank has announced a historic rate cut, slashing its 2 year fixed home loan rate to 3.43% p.a. – the lowest rate ever offered by the bank.
ME’s 2-year fixed rate is available to home loan customers with a Member Package (for owner occupiers paying principal and interest with an LVR &lt;80%).
The bank has made further rate cuts across its fixed home loan range by as much as 30 basis points.
The changes come into effect on the 18th June 2019.
ME Bank previously announced they will be passing on the full RBA rate cut to variable home loan customers.
The announcement came three days after the <a href="/expert-insights/finance/rba-cut-official-cash-rate-to-a-historic-low-1-25-at-june-2019-meeting">RBA rate decision</a> and was to come into effect on 27th June 2019.
<img src="https://www.urban.com.au/images/2019/6/18/ME%20Bank%20new%20rates.JPG" alt="">
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ME Bank cuts fixed home loan rates to record low of 3.43 per cent

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Developed by Investa for Oxford Investa Property Partners (OIPP), Barrack Place at 151 Clarence Street in Sydney, has been awarded the Urban Land Insitute (ULI) Asia Pacific 2019 Award for Excellence.
The full development process of a project is reviewed as part of the award criteria, in particular the architecture and design of the building is considered along with its community impact, level of innovation and environmental protection and enhancement.
Mark Tait, Group Executive &amp; Head of Commercial Development at Investa said, “Investa is extremely proud of the excellent achievements and continued recognition received by Barrack Place. We would like to convey our appreciation to all of our consultants, contractors and stakeholders on the project, for their contribution and shared vision in bringing Barrack Place to life.”
Nicholas Brooke, ULI Asia Pacific Chairman said “Asia Pacific is home to many exemplary projects and all the winners of this year’s award demonstrate best practice in land use and continue to push the industry forward, while putting people first.”
<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/2019/6/18/Barrack%20Place%202.jpg" alt="">
The award ceremony took place in Shanghai, as part of the ULI’s 2019 ULI Asia Pacific Summit.
Representatives of both Investa and Architectus attended the Summit to accept the award on behalf of Barrack Place.
Architectus’ Managing Principal, Colin Odbert, said “it is an honour to receive this ULI Asia Pacific Award for Excellence for Barrack Place. The award represents both Architectus’ and Investa’s commitment to delivering developments that exceed expectations and showcase superior quality in design and architecture. Drawing inspiration from the heritage of the precinct, our focus was on creating a contemporary, commercial space that creatively reflects the history of the area, while providing a design solution that meets the needs of modern workers.”
The ULI Asia Pacific Awards for Excellence is the latest recognition received by Barrack Place, having recently been awarded the WELL Certified Platinum Rating.
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Barrack Place wins Urban Land Institute Asia Pacific Award for Excellence 2019

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Australian RMBS delinquency rates, which rose slightly over the three months ended 31 March 2019, will continue to increase over coming quarters, according to the latest report from Moody's Analytics.
They believed arrears will rise because of high debt levels, the conversion of a large number of interest-only mortgages to principal and interest loans and declining house prices.
They suggested however that delinquency rates will only increase moderately, given stable GDP growth, low unemployment and recent interest rate cuts.
The 30+ day delinquency rate for prime Australian RMBS was 1.58% in March 2019, compared with 1.54% in December 2018 and 1.48% in March 2018.
For prime RMBS issued by major banks, the 30+ day delinquency rate was 1.75% in March 2019 compared with 1.72% in December 2018.
For regional banks, the delinquency rate was 1.65% in March 2019, unchanged from December 2018, while for prime RMBS issued by other authorised deposit-taking institutions, the delinquency rate was 0.54% in March 2019, compared with 0.50% in December 2018.
The 30+ day delinquency rate for non-conforming RMBS was 3.75% in March 2019, up from 3.23% in December 2018 and 3.05% in March 2018.
Alena Chen, Vice President of Moody’s said, "over coming quarters, we expect Australia's record-high household debt, which amounts to almost 200% of annual gross disposable income, will contribute to a moderate increase in delinquencies."
"Meanwhile, a large number of interest-only mortgages are due to convert to principal and interest loans by the end of 2020, which will cause some delinquencies over this period. Banks originated a significant volume of interest-only loans in 2014 and 2015," she said,
The five year interest-only period for these mortgages will end in 2019 and 2020.
When interest-only loans convert to principal and interest, borrowers have to make higher monthly repayments, which can lead to delinquencies.
Commonwealth Bank saw a rise in arrears in their <a href="/news/cba-arrears-rise-but-home-loan-book-continues-to-grow-slowly">March quarter results</a>.
Banks have already started trying to limit a large impact of moving mortgage holders from interest only to P&amp;I.
This time last year ANZ had 26 percent of their loan book made up of IO loans. They <a href="/expert-insights/finance/anzs-home-loan-portfolio-shows-big-drop-in-interest-only-borrowers">reduced that number to 18%</a> as of May.
NAB have an unhealthier <a href="/news/nab-housing-lending-revenue-continues-to-drop-and-shareholders-pay-the-price">26% of their loan book</a> given to interest-only loans.
Chen said Moody's expect house price declines to lead to a moderate increase in mortgage delinquencies over coming quarters."
"House prices in Australia declined by an average of 7.3% in the 12 months to 30 May 2019, while in Sydney and Melbourne, prices declined by an average of 10.7% and 9.9% respectively."
"We expect prices to continue to decline moderately over the remainder of 2019." she said.
Mortgage delinquencies will only increase moderately, while defaults and losses will remain low, given that continued GDP growth, low unemployment and recent interest rate cuts will support borrowers' ability to meet their mortgage repayments.
Moody's Investor Service forecast's real GDP growth of around 2.5% in both 2019 and 2020.
Australia's unemployment rate was 5.2% in April 2019 and they expect it will remain relatively stable at 5.5% by the end of 2019 and 2020.
In early June, the Reserve Bank of Australia lowered the cash rate by 0.25 percentage point, which prompted most lenders to lower their floating-rate mortgage interest rates.
To see which banks decided to pass on the full rate cut, <a href="/expert-insights/finance/what-are-the-latest-home-loan-cuts-and-whos-making-them">click here</a>.
 
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Australian RMBS delinquency rates to keep rising: Moody's

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The owners of evacuated residential tower Mascot Towers in Sydney, who face an immediate $1 million rectification levy, decided last year to take legal action against the developer of an adjoining building Aland Developments and Bayside Council seeking compensation for slip-joint defects.
Owners started the process of pursuing Aland in the middle of 2018 to rectify cracks in the building and units said to be caused by the construction of the neighbouring apartment building Peak Towers at 27 Church Avenue.
The building management issued an update on Monday, saying that meetings are organised for Thursday to discuss reports about the structure.
The email confirmed that a claim on the building's insurance policy for temporary accommodation had been declined, as many of the Mascot Towers residents remain in limbo since Friday's evacuation.
Last Thursday Mascot Tower residents received a notice from Strata Choice outlining that planned installation of temporary building propping to help fix "a slip joint defect" in the car park had been brought forward.
But on Friday evening Mascot Tower residents received a second notice saying units would need to be evacuated that night by 9pm.
The building was constructed in 2008, more than six years ago, meaning owners are not covered under building and construction warranty.
The Mascot Towers, designed by architect Krikis Tayler and developed by the Elias family, sits above the train station, but State Transport confirmed there was no impact on the airport rail line or Mascot train station below the complex.
The Daily Telegraph reported details of the special levy on the 122 apartments that will 'perform urgent repair and maintenance."
 
<div class="_3MT_w"> </div>
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Mascot Towers started legal proceedings last year over cracks

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Creek Cottage, the home of the late noted author and conservationist Vincent Serventy and his wife Carol, has been listed for sale.
Serventy, who 30 years ago helped save the Great Barrier Reef from oil leases, and his wife Carol bought the Pearl Beach weekender in 1976 for $22,000, moving there permanently in the 1990s.
It returned to the market initially with <a href="https://www.centralcoastrealty.net/property/156/36-diamond-rd-pearl-beach-nsw" target="_blank">more than $1.5 million</a> being sought through Stuart Gan, but now the price guidance is $1.35 million to $1.45 million.
<img src="https://www.urban.com.au/images/2019/5/24/Cottage%20Creek%202.JPG" alt="">
Situated at 36 Diamond Road, Pearl Beach the four bedroom two bathroom beach home is 100 paces from the beach.
Set on 670 square metres, the home features timber floors, high ceilings, large verandahs and guest accomodation.
With a fireplace and a carport the home is described as a "unique once in a generation opportunity".
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Conservationist Vincent Serventy's Pearl Beach home Creek Cottage listed

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A 410 square metre Surrey Hills block, occupied by a scout hall, will go under the hammer on June 22.
It has been listed by David Taylor and John Taylor from Fletchers Canterbury with a price guide of $1.3 million to $1.4 million. 
The wide frontage block at 7 Robinson Road offers the potential to create a low maintenance home on its own title. 
<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/2019/6/13/scout%20hall%202.jpg" alt="">
Situated between Chatham and Surrey Hills Stations, it's within walking distance to Surrey Hills Village shops, supermarket, cafes plus nearby Canterbury Sports Ground and Chatham Primary School. 
Scouts Victoria bought the property in 1955 and built the hall. 
<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/2019/6/13/scout%20hall%203.jpg" alt="">
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Surrey Hills scout hall to go under the hammer

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The Australian Competition and Consumer Commission (ACCC) has raised concerns about Landmark’s proposed acquisition of Ruralco.
It is asking for stakeholder comment on the competition impact a merged national agency business might have on the agriculture sector.
ACCC Deputy Chair Mick Keogh said: “A merged Landmark-Ruralco would be by far the largest retail and wholesale supplier of rural merchandise in Australia, with Elders the only other large national chain.
“The combined entity would supply around 650 rural merchandise stores (including both corporate and member stores), which is approximately 45% of all rural merchandise stores nationally.”  
The ACCC has identified a number of local areas, including Broome (WA), Alice Springs (NT), Cooma (NSW) and Hughenden (Qld), where Landmark’s rural merchandise stores compete with Ruralco stores and there would be few remaining competitors.
"We're considering whether the proposed acquisition would reduce competition at the wholesale level, or whether the remaining wholesalers or buying groups (AIRR, NRI and AgLink) will provide sufficient competition," Keogh said.
"As well as examining whether a merged Landmark-Ruralco would be more likely to discriminate against retailers which are wholesale customers that compete with its retail stores."
The ACCC’s review has also considered overlaps between Landmark and Ruralco in the supply of wool broking, livestock agency and live export, insurance broking, financial services and real estate agency services.
Its preliminary view is that the proposed deal is unlikely to substantially lessen competition in these areas.
Submissions from interested parties on the statement of issues should be provided by 27 June 2019.
The ACCC’s final decision is scheduled for 15 August 2019.
The statement of issues is available at <a href="https://www.accc.gov.au/public-registers/mergers-registers/public-informal-merger-reviews/landmark-proposed-acquisition-of-ruralco" target="_blank">Landmark - proposed acquisition of Ruralco</a>.
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ACCC raises concerns on Landmark's Ruralco acquisition

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After 120 days on market, a renovated double-storey home at Kalinga, Queensland has been sold for $1,725,000.
It was sold by Tyson Clarke and Joseph Lordi from Queensland Sotheby's International Realty. 
Nestled on a 794 square metres parcel of land, the circa 1920 Queenslander style home at<a href="https://www.realestate.com.au/sold/property-house-qld-kalinga-130478102" target="_blank"> 20 Woombye Street i</a>s surrounded by greenery.
It comprises open plan living and dining area, five large bedrooms, kitchen with butler's pantry, media room, study nook and covered raised entertaining deck.
<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/2019/6/11/kalinga%202.jpg" alt="">
Storage is across the entire layout, including in the upstairs reading area where there's a custom-made near bookcase. 
Other features include landscaped patio entry, in-ground swimming pool, polished timber flooring, high ceilings and large level lawn area.
<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/2019/6/11/kalinga%203.jpg" alt="">
It's just 12 minutes by car to Brisbane Airport and close to major road links accessing both the Gold and Sunshine Coasts. 
Kalinga and Melrose Parks are nearby. 
The home was last sold for $475,000 in 2011. 
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Restored Woombye Street, Kalinga home sells at $1,725,000 

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.

&nbsp;

&nbsp;

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.

&nbsp;

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.

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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.

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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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