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This week, all of the busiest suburbs for auctions are in Victoria, with Preston and Reservoir topping the list.
Each suburb has 14 homes scheduled for auction each.
They are followed closely by Bentleigh East, Cheltenham and Mount Waverley each with 13 scheduled auctions.
Upcoming auctions
There are 1,552 capital city homes set to be auctioned this week, down from the 1,875 auctions held last week. Over the same week one year ago, volumes were significantly higher (3,990) over what was the pre-Easter weekend, which is traditionally one of the busiest weeks for auctions each year.
Both Melbourne and Sydney will see fewer homes taken to auction week-on-week, with Melbourne set to host 754 auctions, down 18 per cent on last week (920). 
In Sydney, 465 auctions are expected to take place; a decrease of 27.1 per cent over the week (638).
<a href="https://www.propertyobserver.com.au/images/2019/3/22/corelogic%20auction%202.jpg" target="_blank">Click here</a> to enlarge:
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Source: CoreLogic
<a href="https://www.propertyobserver.com.au/images/2019/3/22/corelogic%20auction%203.jpg" target="_blank">Click here </a>to enlarge:
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Source: CoreLogic
Across the smaller auction markets, volumes are higher over the week in Adelaide (115), Brisbane (112) and Perth (42). While Canberra and Tasmania will see fewer homes auctioned this week.
A one bedroom Preston apartment has been scheduled for auction on March 23 with a price guide of $360,000 to $390,000 (pictured above).
Located on the ground floor of an residential complex, the apartment at<a href="https://www.realestate.com.au/property-apartment-vic-preston-130601886" target="_blank"> 10/105 Dundas Street</a> comes with open plan living, generous-sized robed bedroom, and paved courtyard. 
It's within close proximity to Thornbury train station, Northland Shopping Centre and Melbourne CBD
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A 1960s two bedroom house at Reservoir priced between $900,000 to $950,000 is also up for auction on Saturday, March 23 (pictured below). 
Nestled on a 933sqm block, the house at <a href="https://www.realestate.com.au/property-house-vic-reservoir-130577314" target="_blank">11 Hosken Street</a> comprises spacious lounge and dining, kitchen/meals, double bedrooms and single garage.
It's close to schools, parklands, bike trails and cosmopolitan Sydney Road. 
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Summary of Last Week’s results:
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Last week, the combined capital cities saw auction volumes rise with a total of 1,875 homes taken to auction, returning a final auction clearance rate of 51.4 per cent; an improvement on the 47.8 per cent clearance rate the week prior when 1,197 auctions took place. One year ago, a significantly higher 3,136 homes were taken to auction across the capital cities with 66 per cent selling.
Melbourne’s final clearance rate came in at 52.1 per cent acrossa higher volume of auctions week on week (920). The week prior saw a very subdued 216 auctions take place when only 49.2 per cent sold. The same week last year saw 1,653 Melbourne homes auctioned, returning a final auction clearance rate of 68.7 per cent.
Sydney’s final auction clearance rate rose to 54.2 per cent acrossa lower 638 auctions last week, after the week prior saw 52.3 per cent of the 701 auctions successful. Over the corresponding week a year ago, 1,093 Sydney auctions took place when a much higher 64.8 per cent cleared.
Across the remaining auction markets, Adelaide was the best performing in terms of clearance rate with 53.3 per cent of homes selling. While only 26.3 per cent of Perth homes sold at auction last week.
<a href="https://www.propertyobserver.com.au/images/2019/3/21/auction%20last%20week%201.jpg" target="_blank">Click here</a> to enlarge:
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<a href="https://www.propertyobserver.com.au/images/2019/3/21/auction%20last%20week%202.jpg" target="_blank">Click here</a> to enlarge;
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Source: CoreLogic
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j.ballantyne1990-6AQqhLzZaK

Preston and Reservoir to be the busiest upcoming auction suburbs: CoreLogic

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EXPERT OBSERVATION
Changes to existing capital gains tax and negative gearing arrangements on residential investment properties proposed by the Federal Opposition will dampen first home buyer capacity to save for their first home.
Rental costs will increase.
While their grandfathering provisions are intended to encourage investors to retain their existing investment properties, decisions about new investments in residential housing will be strongly influenced by the higher taxation grab on investment returns and uncertainty about subsequent sales of new properties and future tax changes.
Research conducted for HIA analyses this impact and shows that rental costs will increase and the supply of rental properties will decrease.
Rental supply is crucial.
The September quarter of 2018 marked the first time since December 2006 that rents in Sydney declined in real terms.  The recent additional supply of rental properties has underpinned the improvement in rental affordability.
Changing the tax treatment on residential investment properties risks undoing the good work, lifting rental prices and dampening the home ownership aspirations of renting households.
For many households, living in a rental property is an interim step towards home ownership. It’s a period of independent living while they save a deposit to purchase their own home.
Any increase in their rental costs will impact their capacity to save a deposit, extend the savings’ period and dampen their home ownership aspirations. 
We already know that more than 90 per cent of renters aspire to own their own home.  Unfortunately, less than half believe they will achieve this dream. 
Australia needs to reverse this trend, renew our national commitment to home ownership and adopt measures that support first home aspirants. That includes support while saving for a deposit,” concluded Mr Wolfe.
GRAHAM WOLFE (pictured) is the Managing Director of HIA
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Australia’s home ownership aspirations at risk: HIA's Graham Wolfe

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Legislation introduced to the Victorian Parliament will see real estate agents prevented from concealing known facts about a property’s past, including if it had been used as a clandestine drug laboratory.
The new rules include if the property was the site of a murder.
Agents will have to disclose unfavourable facts about a property upfront without being asked by potential buyers.
Current rules require agents and vendors to make those disclosures when asked for that information.
The tougher laws introduced to the Victorian Parliament on Wednesday.
The Sale of Land Amendment Bill 2019 will strengthens the existing requirement for vendors or real estate agents to disclose material facts about a property, and enable guidelines to detail what a material fact is likely to be (for example, a property’s past history as a clandestine drug laboratory or the site of a homicide).
“Families looking to buy also deserve to know whether a property was previously the site of a drug lab or a murder scene, and we’re ensuring that vendors and real estate agents disclose these important facts," Consumer Affairs minister Marlene Kairouz said.
“This is about improving consumer protections and restoring balance so that hard-working families can enter the property market with confidence.”
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Clandestine drug laboratory details need to be revealed to Victorian property buyers

How the RBA looks at property, debt and financial stability: RBA's Michele Bullock

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Rent-to-buy schemes aimed at low-income Victorians will be banned under new laws introduced to the State Parliament which have potential jail time for vendors and third-party intermediaries.
The schemes - typically offered on properties on Melbourne's outskirts - are marketed as offering a pathway to home ownership for people unable to get a mortgage, by paying rent for a few years and then refinancing on their own. 
But there are typically exorbitant rents and legal fees.
The victims lose their first-home buyers grant.
It is often followed by moving out of their home after being unable to afford the payments.
Developers and financial services groups face fines ranging from $19,000 to $190,000 and or jail time for vendors and third-party intermediaries. 
Under the proposed laws, those who buy residential land under a dodgy rent-to-buy arrangement would be able to get a refund, excluding money paid that represents fair market rent.
Consumer Affairs minister Marlene Kairouz said the new laws would stamp out unscrupulous businesses taking advantage of people who can least afford it.
“Whether it’s putting a stop to so-called rent-to-buy schemes or restricting the terms of contracts for residential property, we’re stamping out the ripping off and exploitation of families by greedy parts of the financial services sector and dodgy developers,” Kairouz said.
The government does recognise that rent-to-buy schemes may emerge in the future, but the arrangement would need to involve the Director of Housing, a registered housing association or a similar organisation as determined by the government.
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Rent to buy schemes to be banned in Victoria unless officially approved

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ASIC has successfully sought orders from the Federal Court to wind up the highly solvent Melbourne-based company Aviation 3030 Pty Ltd on the basis that there is a justifiable lack of confidence in the management of Aviation by its directors.
Aviation’s primary asset is property located at 756 Aviation Rd, Point Cook, which it purchased for $7.8 million in 2011 with a view to rezoning the property to increase its value.
In ordering that Aviation be wound up, Justice O’Callaghan stated the case that ASIC makes to wind up Aviation is an overwhelming one.
"Directors have issued to themselves and to their associates large numbers of shares at a gross undervalue; they have fabricated correspondence and invoices; they have provided false instructions to the company’s external solicitors; they duped and misled investors; they entered into related party loans; and they made unauthorised and exorbitant expenditures.
"The audacity of the March 2016 share issue alone could well be enough to warrant a winding up order, but it is not necessary to decide the case on that sole basis because of the many and varied ways that the directors have demonstrated that they are unfit to sit on the board of Aviation."
ASIC’s winding up application was opposed at trial by Aviation and its two majority shareholders (which were companies associated with the directors of Aviation) to which 63% of Aviation’s share capital was issued in March 2016.
ASIC’s application was supported, however, by a group of 12 minority investors who were granted leave to intervene in the proceeding.
The Federal Court also ordered the winding up of an unregistered managed investment scheme operated by Aviation through five separate trusts, as well as their trustee companies, which were also used to raise funds for the Aviation scheme.
John Lindholm and George Georges of Ferrier Hodgson were appointed as joint and several liquidators of Aviation, the Aviation scheme and associated entities.
The orders have been stayed for seven days to allow the defendants to consider an appeal.
ASIC Commissioner John Price said the orders made by the Court will allow an orderly and lawful winding up of the companies and the investment scheme they have operated and will place the future process of distribution of funds to investors into independent hands.
To facilitate the purchase and rezoning of the property, Aviation raised around $10.59 million from approximately 73 shareholders and unit holders.
Many investors in the trusts paid significantly less than $500,000 for their units, and were therefore retail clients rather than sophisticated investors.
In 2011 Aviation had entered into an agreement with auDirect Property Group Pty Ltd to provide project management services in relation to the Aviation land, for an annual fee of $120,000, plus reimbursement of costs. 
On 13 September 2012, the Aviation property was rezoned from Green Wedge Zone to Farming and significantly increased in value.
In March 2016, Aviation issued 63% of its share capital to companies associated with the directors of Aviation.
On 25 October 2018, the property at Point Cook was sold to Shanghai-based developer, Dahua for $135 million through Colliers International and Biggin &amp; Scott Land. The purchaser paid Aviation a deposit of $27 million. The balance of $108 million is payable in April 2023.
Following an investigation, ASIC commenced proceedings in September 2018 to wind up Aviation, the trustee companies and the Aviation scheme.
The defendants resisted the making of the winding up orders primarily on several grounds, including the investors were only ever promised 1/240th an interest for every million shares.
ASIC first wrote to Aviation in December 2015 in relation to concerns about Aviation’s fundraising activities, and it commenced its formal investigation back in May 2016.
ASIC recommenced taking active steps in its investigation in August 2017 which included section 19 examinations, in addition to those which ASIC had previously conducted in 2016, including with Hakly Lao, Khay Taing, Huy Taing, Marintha Lao, Terry Grundy, Michael Bishop and Jenny You.
The investor group included the Deva Family Trust; JS Fotia Superfund; Harbourlink Wealth, as trustee for the Zou family; Sergio Valentino and Darryl Williams; Sang Aung; the Yuantong Family Trust; Heng Aung; Yoke Ngoh Wong and Jessie and Colin Luxton.
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Federal Court winds up $135 million Point Cook Aviation Road land banking company

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SQM Research believes there is a "very high risk" based on Labor’s proposed negative gearing policy, that investors purchasing new property may experience losses on a resale in the first three years of the property’s life.
"Investors seeking to benefit from the new concession by buying new properties are exposed to a substantial risk of their property being valued below purchase price, especially if the buyer is seeking to sell their investment within the first three years," SQM director Louis Christopher said.
While the SQM director Louis Christopher says there is no solid data to prove this point, it was in SQM'S experience that over the course of a cycle:
<ul>
<li>Off-the-plan developments will be sold between a 15-30% premium to the existing market.</li>
<li>30% of off-the-plan developments will sell at a loss to the initial purchase price if sold within the first three years if the dwelling’s life.</li>
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A premium paid over and above the existing market is often justified as one is effectively buying ‘new’ and the best quality fixtures and fittings compared to the existing market. 
Christopher predicts dwelling prices to fall.
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%202020%202022%20Dwelling%20Price%20Forecasts.JPG" alt="">
"Given the forecast of initial negligible rental growth, SQM Research forecasts an additional correction in the housing market of between 4% to 8% over a three year period (2020 to 2022) with most of the falls occurring in years one and two."
This assumes an interest rate cut of 50 basis points by early January 2020.
He sees yields as rising.
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%20Yields%20to%20Rise%20International%20Comparisons%20table.JPG" alt="">
International comparisons as well as historical precedents indicate that acquisition rental yields are likely to rise between 0.85% and 1.2% (85-120 basis points) over a two to three year period post the implementation of the new policy.
"If interest rates are cut by 50 basis points, the rise in yields will be smaller at between 60 and 95 basis points."
He tips rents to rise 7-12% over 2020 to 2022.
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<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%20Change%20in%20National%20CPI%20and%20Rent%20Index.JPG" alt="">
"Rental changes are initially likely to be negligible due in part to a current oversupply in Sydney and some other cities.
"However, there may be an acceleration from year 2021 due to an expected sharp fall in dwelling completions.
"Brisbane and Perth are forecasted to record the largest rises."
The report envisages housing construction and completions will fall further.
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%20Aust%20Dwelling%20Commencements.JPG" alt="">
SQM Research forecasts the total fall in housing construction activity will amount to a 25% to 30% decline from 2019 levels.
"Given the existing falls in construction and the anticipated peak in infrastructure spend in 2021 this could have a large impact on GDP and employment in the economy," Christopher said.
"The total adjustment in the market housing market is forecasted to last for approximately three years, with most of the adjustment phase occurring within two years.
"Thereafter the market would likely return to equilibrium, having ‘priced-in’ the loss of the tax concessions."
He forsees sales turnover to fall by another 12% to 15% with most of the declines in sales to occur in the first year (FY2021).
This would result in a fall in state stamp duty revenue of approximately $2.3 billion.
The report represents an update on his 2016 research to cover the potential price, rent and turnover impact of the Labor Party’s negative gearing policy initially released February 2016.
Labor will limit negative gearing to new housing from a yet-to-be-determined date after the next election.
All investments made before this date will not be affected by this change and will be grandfathered which means that taxpayers will continue to be able to deduct net rental losses against their wage income, providing the losses come from newly constructed housing.
From a yet-to-be-determined date after the next election losses from new investments in shares and existing properties can still be used to offset investment income tax liabilities. These losses can also continue to be carried forward to offset the final capital gain on the investment.
The report presents several scenarios.
<ul>
<li>Scenario 1 - Negative Gearing cut 1 July 2020 and interest rates cut by 50 basis point</li>
</ul>
In the first scenario, The Reserve Bank of Australia cuts interest rates starting from late 2019 by half a percent (50bp). Negative Gearing is changed and CGT increases are passed and enacted on 1 July 2020.
SQM take the view there would be an overall gross yield increase of some 65 basis points after taking into account the rate cut; 25 basis points of which is passed on. Prices would still considerably fall in Sydney and Melbourne but other cities would be less affected.
There is a likelihood the housing market could rally post the interest rate cuts and leading into 1 July 2020 as investors take advantage of grandfathering. The earlier the rate cuts, the greater the likelihood of a rally. Most of the price falls would happen over later 2020 and 2021 with a potential market bottom in 2022.
Rents in Sydney and Melbourne do not lift initially on the back of some existing oversupply of rental stock. But that stock is quickly absorbed in 2021/2022 leading to an acceleration in rents.
<ul>
<li>Scenario 2 – No Interest Rate cut</li>
</ul>
In this scenario, the market takes the full brunt of the Negative Gearing change and CGT lift. Prices fall sharply with a minimal pick up in demand prior to passing of the bill (assumed 1 July 2020).
Average capital city gross rental yields lift by 85 to 120 basis points with the yield increase being shared between price falls and rent increases.
With prices falling sharply over 2020/21, housing commencements fall greater than scenario one therefore creating a larger shortage of housing relative to underlying demand in 2021/2022.
<ul>
<li>Scenario 2 assumes no recession but there would have to be serious questions on the state of the economy.</li>
<li>Scenario 3 – No Negative Gearing change and 50 basis point rate cut</li>
</ul>
This scenario assumes either the Labor Party defers the tax changes or the Liberal Government wins the 2019 Federal Election. This assumes therefore, a likely recovery in the housing market as confidence returns due to a rate cut, no Negative Gearing change and no Capital Gains Tax increases. Bank lending is less restrictive.
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Rents to rise under Labor, negative gearing/CGT policy risky to economy: SQM's Louis Christopher

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Public House Management Group (PHMG), CEO and founder Mitchell Waugh has sold the Woollahra Hotel and Bistro Moncur.
It has been bought by other members of the Waugh hotelier family headed by his brother Ashton.
An Australian Financial Review report that the Ryan family had paid $50 million was not the case 
Mitchell Waugh and wife Harriet will be stepping away from the Woollahra venues next month to focus on the rest of their portfolio.
Mitchell Waugh has been at the helm of Bistro Moncur and the Woollahra Hotel since the Waugh family purchased the venues in 2015.
Waugh will retain his position at the head of PHMG, owning in entirety the Royal Hotel Paddington, the Marrickville Ritz and The Toxteth.
The reopening of the Toxteth Hotel in Glebe last August followed an extensive six-month refurbishment of the interiors, exterior and an overhaul of the food and beverage offering.
Affectionately known as ‘The Tocky,’ the venue was purchased by PHMG for $22 million-dollars in February 2017 from Geoff Dixon and John Singleton’s Riversdale Group.
“Saying goodbye to Bistro Moncur is bitter-sweet for us, this was our first venture in the restaurant business, and we have thoroughly enjoyed growing in this space," Mitchell said.
"We took some great learnings from restaurant ambassadors Guillaume Brahimi and Damien Pignolet and there is a vision to increase the food offering of the group in the near future."
The Woollahra Hotel, one of the eastern suburbs' iconic celebratory watering holes, has been regarded as one the jewels of the Sydney pub market, having been associated over past decades with the likes of Alan Bond and even Abe Saffron.
It was a depressed market back in 2011 when the White family sold the hotel with rival interest reportedly came from Leon Fink and John Singleton.
On its purchase from the White family, its co-owner Damien Pignolet's services were briefly retained as executive chef at Bistro Moncur.
The rumoured $30 million acquisition in 2015 of The Woollahra by Public House Management Group - fronted by brothers Mitchell &amp; Ashton Waugh - followed other recent acquisitions.
PHMG is now focused on a complete renovation of The Royal Paddington, which Micthell says will involve a “complete overhaul.
Waugh sat down with the Wentworth Courier to reveal he had offloaded his share to two other investors who were part of the original purchase. 
“It feels like a new chapter for me.
"All family companies have problems when they go generational, they come to a point where different personalities, kids, might be the second or third generation, they have to go their own way so I’m very proud that we’ve been able to find a way to do it amicably and move on.
"But now I have my two daughters, who are very stubborn, very strong willed and I need to start thinking about them and establishing.”
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Waugh family reshuffle with Woollahra Hotel ownership

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A beach box on Mount Martha's South Beach has sold for $342,500.
Recently painted, <a href="https://www.realestate.com.au/sold/property-house-vic-mount+martha-129536402" target="_blank">box 90</a> is located in prime position, directly across from the village shops and restaurants.
 <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/2019/3/20/Mt-Martha1.jpg" alt="">
The nearby <a href="/news/vic/recently-restored-mount-martha-beach-box-listed">beach box 98</a> has been listed with a guide of $310,000 to $340,000.
It's been restored since trading for $215,000 in 2014.
 
 
 
 
 
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Mount Martha beach box fetches $342,500

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The RBA's recent discussion around housing was "quite understated," according to the Westpac chief economist Bill Evans.
He noted the latest minutes indicated “the process of adjustment in the housing market had continued.”
Evans said there was some recognition by the RBA board members of the spill-over of housing prices to activity, “some part of the slowdown in retail and motor vehicle spending in NSW was likely to have been related to declines in housing prices”.
Evans also said he was "disappointed" to note that the RBA was persisting with a view that “the pipeline of work to be done remained large and was expected to support dwelling investment through 2019”.
Evans said that dwelling investment peaked in mid-2018 with around a six per cent fall in the second half of 2018.
He supports the RBA’s expectation for a “marked slowing in dwelling investment”, but expects that this has come earlier than their expectation of “in 1-2 years’ time”.
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Evans noted the RBA has raised the importance of data releases over the next few months and left open the possibility to cut rates should those releases disappoint.
"Certainly, the December quarter national accounts would have fitted into that category, although the emphasis remains on the labour market data.
"Westpac does expect that consistent with the slowdown in spending and deterioration in both business and consumer confidence, we will see emerging evidence of a slowing labour market over the course of the next six months.
"Westpac’s timetable for policy action remains a 25bps cut in August to be followed by a second 25bps cut in November.
"These dates will give the RBA appropriate scope to explain their decisions in the context of weaker growth, employment and inflation forecasts in an orderly fashion, rather than be seen to overreact to any particular data report," Evans said.
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Bill Evans says the RBA's view on dwelling pipeline was disappointing

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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