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The Richmond-Tweed region has seen sales activity fall over the last couple of years, with dwelling sales down 14 per cent over the year to February 2019, according to the latest CoreLogic Regional Report.
The report reveals challenging property market performance across Australia’s regions, with falling sales activity in the twelve months to February 2019.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/richmond%201.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/2019/6/4/richmond%201.jpg" alt="">
Source: CoreLogic
Home values are lower year-on-year with house values down -1.3 per cent per cent over the year to March 2019, while unit values are -1.9 per cent lower over the same period.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/richmond%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/2019/6/4/richmond%202.jpg" alt="">
 
Source: CoreLogic
 
Looking at the Richmond-Tweed rental market, the advertised rental rate for houses and units increased by $20/week and $10/week respectively over the 12 months to March. 
The average time it takes to sell a home across the region has increased by 7 days for houses and 2 days for units, while the average vendor discount has also increased for both houses and units when compared to February 2018.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/richmond%203.png" target="_blank">Click here</a> to enlarge: 
<img src="https://www.urban.com.au/images/2019/6/4/richmond%203.png" alt="">
 
Source: CoreLogic
<a href="https://www.propertyobserver.com.au/images/2019/6/4/richmond%204.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/2019/6/4/richmond%204.jpg" alt="">
Source: CoreLogic
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j.ballantyne1990-6AQqhLzZaK

Richmond-Tweed regions see rental rates increase: CoreLogic

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Sales volumes across the Sunshine Coast have fallen -15 per cent to 9,329 over the 12 months to February 2019, with current volumes 14 per cent below the five year average for the region, according to the recent CoreLogic Regional Report.
The report reveals challenging property market performance across Australia’s regions, with falling sales activity in the twelve months to February 2019.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/sunshine%20coast%201%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/2019/6/4/sunshine%20coast%201%20.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2019/6/4/sunshine%20coast%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/2019/6/4/sunshine%20coast%202.jpg" alt="">
Source: CoreLogic
Looking at home values, house values are down -1.6 per cent over the year to March 2019, while unit values increased by 4.0 per cent over the same period.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/sunshine%20coast%203.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/2019/6/4/sunshine%20coast%203.jpg" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2019/6/4/sunshine%20coast%204.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/2019/6/4/sunshine%20coast%204.jpg" alt="">
Source: CoreLogic
 
Advertised rental rates for both houses and units increased year-on-year, up $10/week for houses and $5/week for units. 
The average time on market for a Sunshine Coast house remains in line with February 2018, while the average unit is selling 3 days faster year-on-year. 
Vendor discounting has increased slightly for both houses and units across the region.
<a href="https://www.propertyobserver.com.au/images/2019/6/4/sunshine%20coast%205.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/2019/6/4/sunshine%20coast%205.jpg" alt="">
 
Source: CoreLogic
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Sales activity falls across the Sunshine Coast: CoreLogic 

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The Sunshine Coast has reached the peak of market position on the HTW commercial office property clock for June, according to valuation firm Herron Todd White latest report.
HTW also stated that both Melbourne and South East NSW both remained in the peak position.
Meanwhile the Mid North Coast dropped a notch to the starting to decline market position, joining Gold Coast, Lismore and Coffs Harbour.
Echuca and Alice Springs have remained unmoved in the declining market position. While South West WA remains near the bottom of the market.
Three capital cities remained in a bottom of the market position, Darwin, Perth and Hobart.
They are joined by Cairns, Gladstone, Launceston, Mackay Rockhampton and Townsville.
Click <a href="https://www.propertyobserver.com.au/images/2019/6/7/June%20Office%20Clock%20HTW.JPG" target="_blank">here</a> to enlarge.
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Emerald and Toowoomba have joined Adelaide and Mildura in the start of recovery position.
Ballarat held steady as a rising market while Sydney, Brisbane and Geelong are a notch above in the approaching peak of market position.
The HTW report authors said, "Commercial real estate had mixed results across the country in the past six months, but among the options for buying in this sector, office holdings are considered one of the safer choices."
"That said, not all office markets are the same."
"This month’s submissions paint a picture of varying performance so far this year," they concluded
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Sunshine Coast's office market reaches peak of market: HTW June Office Clock

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Luxcon Group has confirmed that Harris Farm Markets will be the anchor tenant of their $75 million Rose Bay development The Aristocrat of Rose Bay
Construction on The Aristocrat is underway and on track for completion in early 2020.
Occupying the full ground floor, the store will serve as the backbone to the emerging Rose Bay Village precinct along Old South Head Road.
Alongside this announcement a further selection of residences within The Aristocrat at <a href="http://www.biller.com.au/4431518/" target="_blank">62A Dover Road</a> have been released. 
A number of apartments in the project have been sold since the launch in late 2018, including one of three luxury penthouses.
Designed by PBD Architects, and the second in Luxcon’s ‘Limited Edition Collection’ portfolio, The Aristocrat of Rose Bay features 24 two and three bedroom residences and penthouses. 
The two bedroom apartments come with one parking space and are being offered at the $1.85 million price point, while the three bedroom apartments which come with two parking spaces are being offered for around $3.5milliion
The residential facilities on offer include, a sparkling lap pool, relaxation cabanas and landscaped garden with outdoor exercise area. 
Managing Director of Luxcon Group, Ilya Melnikoff, said, “the Aristocrat is offering the complete luxury lifestyle package in a unique development."
"I think it will change the face of this neighbourhood village and hope will create precedent to what streetscape should look like in terms of quality of architecture."
Selling agent Paul Biller said he's confident that The Aristocrat will become one of the most sought-after addresses "not just in Rose Bay but in Sydney”
Luxcon are currently offering a virtual reality experience at their display suite, this offers clients the ability to 'walk around' their future home.
A <a href="https://www.propertyobserver.com.au/https://vimeo.com/338591867" target="_blank">teaser</a> of the virtual reality experience is also available, (Password: lux123).
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Harris Farm Markets to anchor The Aristocrat in Rose Bay

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A Noosa Heads architecturally-designed home with panoramic water and mountain views has been listed for sale with $2.3 million hopes. 
Adam Watts and David Conolly of Century 21 Conolly Hay Group have the listing. 
Hand-crafted by Ken Robinson Architects, the coastal home at 13 Allambi Terrace features contemporary style living including remote-controlled bi-fold doors and a soaring Vergola roof.
The lower level comprises two bedrooms, bathroom, and rumpus room opening out to the pool and poolside decks. 
<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/2019/6/5/noosa%202.jpg" alt="">
The mezzanine level completes with master suite with walk-through robe and resort-style ensuite.
Downstairs, it comes with a kitchen with Miele appliances, living space with open fire, dining room, and casual alfresco space with BBQs. 
<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/2019/6/5/noosa%203.jpg" alt="">
Additional features of the home include wine store, gym, powder room, double garage with internal access, plus a contemporary office or 4th bedroom with soaring walls of windows.
It was sold at $2.4 million in 2017 and $2.1 million in 2015. 
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Noosa Heads coastal home with panoramic views listed

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With Sydney CBD office vacancy tightening to 4.1% as of January, CBD office rentals have continued to drastically increase over the past two years and remain at record highs, according to the latest Commercial Property Market Report from Herron Todd White.
The property valuation firm found, owner-occupiers remained the dominant market participants when it comes to strata office stock, as they attempt to reduce their occupancy costs and invest in what is anticipated to remain a strong market into the foreseeable future.
The combination of owner-occupiers looking to secure office assets combined with the lack of available stock on the market has seen capital values for B and C grade strata office stock continue to increase, with building records continuing to be commonplace.
HTW analysts noted Noonan Property’s April 2019 sale of the 95 square metre Suite 202 at 234 George Street for $1.585 million (reflecting $16,684 per square metre of lettable area) to an owner-occupier who had apparently missed out on a number of other suites in previous weeks highlights the strength of the market force of owner-occupiers."
"Prior to this sale, the last suite to sell in this building and a superior overall asset was the 110 square metre Suite 802, which sold in March 2018 for $1.66 million, reflecting $15,091 per square metre."
"We anticipate owneroccupiers will remain the driving force of values for strata stock throughout the CBD for the foreseeable future, with rents anticipated to remain strong and supply remaining at a minimum in the short term," they said.
With completion of the Wynyard upgrade and Light Rail project along George Street progressing, construction noise beginning to reduce and hoardings starting to be removed, the future of Wynyard and George Street is beginning to take shape.
They consider the face lift to both Wynyard and the overall streetscape of George Street (along with the obvious transformation in accessibility through the CBD) will only further increase the appeal of offices in these precincts.
The southern precinct of the CBD is also anticipated to benefit from increased accessibility following the opening of the Light Rail, seeing the precinct become fully integrated into the prime CBD areas. With vacancy at 6.9% as at January 2019 (source: Property Council Australia) and rents significantly lower than those of the city core, the southern precinct shows the most potential for growth over the short term.
The valuers noted, "outside of the CBD, Parramatta remains the best performing secondary CBD in the country, with vacancy at 3% as at January 2019 (source: Property Council Australia), primarily driven by low supply additions and the draw of more affordable rentals than the CBD."
"While 148,000 square metres is currently under construction across four sites and is all due to come online over the next two years, pre-commitment for this space is at 90%, so vacancy is unlikely to soften significantly."
"The opening of the Metro North West Line on 26 May provides a significant increase in accessibility to the secondary office precincts of Norwest and Macquarie Park, as well as an additional line of access to Chatswood, increasing the overall appeal of these secondary precincts."
"Across Sydney, we are seeing strength in the commercial office market that is encouraging given the softening of the residential market. The strength of the market has been primarily driven by limited stock and infrastructure improvements and is anticipated to remain strong for the time being," they concluded.
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Sydney CBD office rentals remain at record highs: HTW Commercial

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The Melbourne office market vacancy rates, in particular in the Melbourne CBD, city fringe and inner east, are lower than the long-term average vacancy levels and are anticipated to further decline in the second half of 2019, according to the latest Commercial Market report from Herron Todd White.
The Melbourne CBD’s overall office vacancy rate was at 3.2% in January 2019, the lowest of all of Australia’s CBDs. according to the Property Council of Australia’s Office Market Report. 
According to HTW's property valuation reporters, there is limited new supply and available stock in the market until 2020. 
The robust leasing market is also being fuelled by healthy tenant demand driving strong rental growth in both face and effective levels.
Due to the rise in CBD rentals, the city fringe precinct continues to gain popularity from the creative, technology and professional services sectors.
Tenant demand is also strong in the inner east markets, particularly in highly soughtafter suburbs such as Richmond, Cremorne and Hawthorn. The inner east has a vacancy rate of 3.58%, the lowest amongst all of the metro precincts in Melbourne.
The June report stated, "It is expected that rental growth will continue for the remainder of 2019 in these precincts for well-located, good quality stock. Sales demand is particularly strong for well-located, land-rich investment assets."
"A circa 1990 double storey office building at 79-83 High Street, Kew (pictured in title) sold off-market ahead of the launch of an EOI campaign for $19 million in April 2019, reflecting a passing yield of approximately 6.2%. The property comprised 19 strata units with a total lettable area of approximately 3,361 square metres situated on a 3,760 square metre Commercial 1 zoned land allotment."
"The building had 10% vacancy and was sold to fund manager, Terraplex, with intentions to refurbish the building and potentially add extra floor space," they noted.
In the outer suburban market, the sale at 347-351 Burwood Highway, Forest Hill represents the largest metropolitan office transaction this year.
The property was sold to an adjoining owner, a Melbourne based developer, for $45.85 million in April 2019.
The property is situated opposite the Tally Ho Business Park and comprises a 2.62 hectare Commercial 1 zoned allotment improved with two office buildings with a combined net lettable area of approximately 10,692 square metres.
The property is approximately 70% leased to a variety of tenants including NEC, Bolton Clarke and Hamilton Morello.
The HTW valuers said, "we highlight that the purchaser elected to purchase the property as is without a 30% rental guarantee from the vendor and without deduction of outstanding incentives. The property has a WALE (by income) of 3.4 years and a reported reversionary yield of approximately 7.32%."
"The relatively low yield for an asset of this nature with sizeable leasing risk demonstrates the confidence buyers currently have in the Melbourne metropolitan office market."
"Due to the slowdown in the residential market and tightening lending criteria, demand for development sites within the inner suburban region has declined somewhat, however we are aware of ongoing, albeit subdued demand from developers seeking to secure well located sites to establish mixed use developments within close proximity of neighbouring retail strips, amenities and public transport."
"It is uncertain when residential market conditions will begin to recover and purchasers are cautious that any future downturn in economic activity may lead to a reduction in demand and market value, however we note that demand for commercial development sites, particularly sites with holding income, is strong in inner city areas such as Richmond, Cremorne and South Melbourne where developers are intending to deliver commercial office projects instead of apartment projects in the current market to capture the strong office leasing and sales conditions," they concluded.
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Melbourne CBD office vacancy rate lowest in Australia: HTW Commercial

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The Canberra office market maintained a steady pace through the first half of 2019 with a stable market benefiting from low unemployment, continued low interest rates and a strong local economy, according to the latest commercial report from property valuation firm Herron Todd White.
The report found, demand for leasing deals has continued to show strength with good levels of enquiry from tenants evolving into leases at Childers Street and Moore Street in the CBD, both tenants securing sub-3,000 square metres.
The A grade market has a vacancy rate of 1.7% and due to a lack of new stock in the short term, the market is anticipated to see a further drop in vacancy levels whilst construction of new premises is underway with completion due in 2020.
Rents for A grade space are averaging between $405 and $475 per square metre.
The valuers stated, "secondary B grade stock continues to reflect increased vacancy levels, currently at 13.9%, which will rise as a result of the relocation of both Home Affairs to the airport and the ACT Government to the CBD and Dickson with pre-commitments for the new space due in 2020."
"Recent sales volumes have been down on previous years however demand is persisting mostly from institutional and foreign investors with five-year plus WALEs and national tenants being features sought after by investors."
"Yields are 6% to 8% for prime buildings and 6.75% to 10.75% for secondary grade. Secondary space rents are around $300 to $330 per square metre," they concluded.
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Canberra office market remains stable with strong demand: HTW Commercial

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For many years, the Brisbane commercial market has largely gone under the radar in comparison to its southern counterparts…until now and according to the latest office report from property valuation firm HTW is now on the cusp of a major transformation.
The Herron Todd White report notes however, it will be a five-year project on the pathway to transformation into a world class city, with this fact being increasingly recognised in the commercial markets where there are increasing levels of interest in high quality commercial properties within Brisbane from Australian and international investors.
This has been evidenced by yield compression and strong capital growth over the past three years.
Yields which were solidly in the 6.75% to 7.25% range previously are now pressing downward into the 5.5% to 6.5% range, whilst capital growth of up to 30% has been recorded against some prime quality properties.
Against this backdrop however, the market is still plagued by persistently high vacancy rates, particularly in the B grade category and below.
This is holding back real rent growth and significant change in rents is not likely until Prime and A grade vacancies push lower into the single digits.
Recent leasing statistics released by Property Council of Australia have indicated that total vacancies in the CBD have contracted to a five year low of 13% as at January 2019.
The property valuers said, "Prime and A grade vacancies however are now at 10.4% and 9.9% respectively, and heading down."
"Gross face rents have stabilised with some assets seeing effective rents increase as incentives very slowly start to wind back, however vacancy rates remain high for secondary stock and face rents will continue to be flat as vendors compete to secure tenants."
"It is likely we will see a further widening in rentals between Prime or A grade and secondary accommodation," they added.
The fringe CBD leasing market is now largely dominated by the prime office precincts of Fortitude Valley (RNA, King Street precinct and Ann Street), Newstead (in and around Gas Works) and South Brisbane, according to the report.
Vacancy rates for fringe markets overall remain high at circa 14.8% but the better regarded precincts of South Brisbane and the Urban Renewal area are doing better at 10% and 14.2% respectively.
The report stated, "On the whole, fringe markets have been impacted by high vacancies in the CBD, but the Urban Renewal area is likely to continue to dominate the larger leasing and sale transactions."
"On the rental side, gross face rents appear to be increasing for premium buildings with some new leases reported at above $650 per square metre gross face. Incentives are also stabilising for prime assets."
"Conversely, secondary fringe CBD leasing markets are still oversupplied as tenants seek newer accommodation that is within close proximity of transportation and good retail amenities."
"Milton and Spring Hill commercial precincts continue to remain out of favour with tenants as vacancy rates continue to be the highest recorded for the fringe (21.5% and 17% respectively). These vacancies may present opportunities for re-purposing of some buildings in these areas," they noted.
There have been a significant number of quality commercial office listings in the first half of this year across the CBD, fringe CBD and inner-city areas.
Whilst many transactions are yet to transpire, there is reportedly strong interest being generated for well leased investment assets on both a local and interstate level.
"We believe some of these assets will likely achieve strong sale prices, as interstate investors priced out of Sydney and Melbourne see exceptional value in Brisbane (broadly speaking, there is a 150 to 250 basis point differential between Sydney or Melbourne versus Brisbane)," the valuers concluded.
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Brisbane CBD on the cusp of office transformation: HTW Commercial

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Mildura has seen a lower volume of rural sales during the first half of 2019, which is not surprising given the extremely dry start to the year, according to Herron Todd White's latest rural report.
The financial valuation firm found, there is evidently still demand for better standard rural assets, and the sales which we have seen suggest values are holding at similar levels to 2018.
Time Lane, the Rural Director of HTW, wrote "A well managed 131-hectare wine grape vineyard located to the north of Mildura has recently sold at levels which show an average $32,250 per hectare for the area planted to vines."
"The vineyard has a history of good yields and relatively low costs, but also contains a high percentage of Chardonnay, which currently offers lower returns per hectare than most other varieties," he said.
The lower Australian dollar is helping maintain stronger prices for wine grapes and HTW say there is a feeling of optimism that returns will continue to improve.
The table grape industry has enjoyed another successful harvest, with fruit quality mostly good and strong export prices.
The valuers said, "we expect to see growers continue to plant new varieties, which will see ongoing demand for the remaining vacant land parcels in the irrigation districts."
"A corporate buyer recently acquired an 85-hectare aggregation in the Red Cliffs district, planted mostly to table grapes," they concluded.
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Mildura rural market sales activity down: HTW Rural

Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

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.

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]

Staff reporter

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