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EXPERT OBSERVER
Coronavirus continued to make headlines this week; but for the economy, sentiment was the focus.
While Australian consumer sentiment firmed in February according to our <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2020/February/er20200212BullConsumerSentiment.pdf" target="_blank">Westpac–MI survey</a>, at 95.5 the index remains well below its long-run average, suggesting consumers remain pessimistic. This downbeat mood has been in place since mid-2019 and has coincided with a pronounced deterioration in consumer spending momentum.
Economic conditions ‘next 12 months’ and ‘next 5 years’ both bounced back in February but remain below the level of November 2019 and are only in line with their respective long-run averages. This is despite continued strength in employment growth as well as the considerable policy easing undertaken by both the RBA and Federal Government in 2019.
Given this policy context, more concerning still is that ‘family finances versus a year ago’ fell again in February to be back near its recent low and well below average. ‘Finances, next 12 months’ is almost 11% below the average of first-half 2019, and also materially below its long-run average. Unsurprisingly, the ‘time to buy a major household item’ index is depressed, 8 percentage points below average.
Interestingly, ‘time to buy a dwelling’ reversed January’s gain to be back near its recent low in February. On a longer view, at its current level of 112, this index is well below 2019’s peak of 127 but still materially above 2017’s low of 90. At play here is arguably a reduced belief amongst households that further interest rate cuts will be seen in 2020 as well the impact of housing affordability.
House price growth expectations remain strong nonetheless, having surged 70% over the nine months to January 2020. The <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42085" target="_blank">December housing finance</a> data points to strengthening demand amongst owner occupiers, the value of loans up 23% since May and back near 2017–18’s peak. Investors are more circumspect. While 16% above the May low, the value of loans is still comparatively low – in line with the 2012 experience.
Turning to the business sector, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2020/February/er20200211BullAustralianBusinessConditions2020Jan.pdf" target="_blank">the NAB business survey</a> indicates confidence remained absent and conditions weak in late January. There are clearly a number of global and domestic headwinds for confidence. However, the greater concern is conditions. Profitability is weak, while trading conditions and forward orders are poor. The employment index has also lost momentum to now point to job gains circa 16k per month compared to 25k in mid-2019. Assuming flat participation, this would see the unemployment rate grind higher in 2020 – the opposite of what the RBA needs to see to have confidence that wages, growth and consequently inflation will firm as set out in their February Statement on Monetary Policy and Governor Lowe’s appearances last week (summarised in our <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42109" target="_blank">February Market Outlook</a>).   
Following the RBA last week, the latest MPS from the RBNZ set out their view of the outlook. On the assumption of a very mild coronavirus impact, <a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/New_Zealand/2020/February_2020/MPS_Review_February_2020_-_Westpac_NZ.pdf" target="_blank">the RBNZ are sanguine on the outlook</a> and expect to keep the stance of policy unchanged hence. This is as our New Zealand economics team anticipated, but more optimistic than markets were positioned for. Both the labour market and inflation views support this adjustment, but the most prominent rationale for the change of stance is the Government’s plan to increase spending. A cash rate cut is still expected in August by Westpac New Zealand, but this will principally be as a result of a weaker global backdrop which will put sentiment and growth at risk. A stronger New Zealand dollar, which we expect, would also weigh on inflation.
Moving to the rest of the world, our latest Market Outlook expands on t<a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42083" target="_blank">he key economic effects of coronavirus</a> and encapsulates all of the changes seen in the global and domestic economies since our last edition back in December. Succinctly for Australia: we anticipate our economy will be materially weaker in 2020 than the RBA currently anticipates; importantly, this is only partly attributable to summer’s bushfires and the coronavirus outbreak. Further, for the global economy, risks are clearly skewed to the downside.
Developments in <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42131" target="_blank">global commodity markets</a> highlight both the immediate loss from coronavirus as well as the risks to global production. <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42113" target="_blank">Global FX markets</a> however view this uncertainty as being contained in Asia, arguably because central banks elsewhere are seen as both willing and able to act. This is particularly the case for the US which has received a solid bid as a safe-haven. While <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42132" target="_blank">the Australian dollar</a> has taken a tumble in line with commodities, it will likely find a base and could strengthen in late-2020 if the RBA does not counteract the US rate cuts we forecast with concerted monetary easing here. Absent this step, Australia’s competitiveness and corporate profitability could become impaired, reducing the probability of the lift back to trend GDP growth we currently anticipate in 2021.
ELLIOT CLARKE is a senior economist at Westpac 
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Coronavirus is not the only risk Australia faces: Elliot Clarke

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Australia’s largest bank, CBA, has today cut fixed rate home loans by up to 0.50 per cent.
Commonwealth Bank has slashed all its investment fixed rates, as well as its 1, 4 and 5 year fixed owner-occupier mortgage rates.
The biggest cuts are to the 4- and 5-year fixed investment interest-only loans, which have dropped by 0.50 per cent.
<img src="https://www.urban.com.au/images/2020/2/14/CBA%20new%20rates%201.JPG" alt="">
RateCity.com.au research shows 30 lenders have cut fixed rates this year, including Suncorp, Westpac and Bankwest.
As a result of today’s changes, CBA now has the lowest 1-year fixed rate out of the big four banks and equal lowest 4- and 5-year fixed rate for owner-occupiers.
<img src="https://www.urban.com.au/images/2020/2/14/CBA%20new%20rates%202.JPG" alt="">
RateCity.com.au research director Sally Tindall said the Commonwealth Bank was cutting fixed rates to stay competitive.
“With fixed rates now as low as 2.50 per cent, banks are being forced to take the knife to their home loan rates to attract new business,” she said.
“CBA’s decision to cut all investor fixed rates is a sign it wants them back on the books."
“Since the APRA caps on investors and interest-only lending have been scrapped, banks have been increasingly shaving investor rates."
“Although fixed rate cuts are often a sign of an imminent RBA cut, these latest changes could be more about CBA drumming up new business," she concluded.
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CBA cuts fixed home loan rates by up to 0.5%

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EXPERT OBSERVER
Houses in southeast Queensland are enjoying higher demand and improved capital growth as buyer confidence rises.
According to the latest RiskWise Property Research Risks &amp; Opportunities Report, housing finance in Queensland is showing signs of improvement with an increase of 16.9 per cent since February 2019 after a reduction of 7.7 per cent relative to August 2018.
At this stage only modest (i.e. 3-5%) price growth is expected with the likelihood for strong (i.e. double digits) price increase low.
While the Sydney and Melbourne markets were experiencing continued (while improving) issues in relation to housing unaffordability, southeast Queensland enjoyed a more stable market, good population growth and healthy rental returns, making it attractive to both home buyers and property investors.
However, he said while houses were enjoying a resurgence in demand, this was not the case for units.
Units in Queensland, particularly in high-supply areas and other places where the demand for units is consistently low (and houses enjoy strong popularity as a dwelling alternative), also carry a higher level of risk.
One of the reasons for this is because the demand for units among owner-occupiers is low.
Also, in addition to APRA’s lending restrictions, units in some suburbs are also subject to voluntary lending restrictions by major lenders, such as lower loan-to-value ratio due to oversupply.
Units in inner-city Brisbane have the highest level of risk with a very large number of properties in the pipeline and increased rates of defaults for those bought off-the-plan. In fact, many areas with oversupply have been labelled 'danger zones' by lenders and also have low sales volumes.
Mr Peleg said with many of these over-supply areas also presenting a major financing barrier due to requirements for large deposits, in particular off-the-plan units, there was a high level of risk that should be further assessed based on the absorption of the current supply into the market in the next two years and the reduction in commencements.
He said the impact in the short to medium term would be gradually mitigated by a reduction in these dwelling commencements alongside strong population growth.
Mr Peleg noted that the Queensland market greatly varied between high and low-performing areas and special attention should be given to the different job markets across the state, particularly since the unemployment rate had risen from 5.9 per cent in April to 6.5 per cent in October.
This is especially the case in the mining towns in Central and North Queensland, that generally experience low demand, versus houses in popular beachside suburbs on the Gold Coast and the Sunshine Coast that have delivered strong capital growth.
It is important to remember that a softer employment market is well connected with low population growth, lower demand for dwellings and price reductions.
The risk associated with the Queensland market should be monitored closely at the SA4 level, as deteriorating employment conditions are likely to have a significant negative impact on dwelling prices.
The mining towns still present a relatively higher investment risk due to a very large proportion of investors with negative equity and insufficient growth drivers since the end of the boom.
DORON PELEG is the CEO at RiskWise
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Positive outlook for southeast Queensland's housing market in 2020: RiskWise's Doron Peleg

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An oceanfront trophy home at Blairgowrie on the Mornington Peninsula is for sale.
The cul-de-sac home located at 16 Ritchie Avenue adjoins the Bridgewater Bay National Park. It is also just metres away from beaches.
The five bedroom smart home overlooks Bass Strait, Port Phillip Bay and the city skyline. Its fully landscaped native garden and natural stone infinity pool and spa commands a northern view across the bay to the city.
<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/2020/1/8/2_Blairgowrie_Pool.jpg" alt="">
The architectural six-star rated home features a cobblestone driveway, towering ceiling height entrance, feature staircase, triple Gaggenau wall ovens in the centralised gourmet kitchen, alfresco barbecue area with fully integrated refrigeration and poolside oasis. 
<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/2020/1/8/4_Blairgowrie_Dining.jpg" alt="">
The two-story house is serviced by a lift and separate dumbwaiter. It also has keyless access, three car lock up garages, solar and gas heated pool with in-floor cleaning, Control4house automation and AV, hydronic heating, irrigation, air conditioning and automated blinds throughout, and a 15 kilowatt solar system.
The home was approved for construction in mid-2017 with council records showing a $1.5 million estimated construction cost.
<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/2020/1/8/3_Blairgowrie_Bedroom.jpg" alt="">
The 1,116 sqm holding was previously sold for $980,000 in 2017 and $850,000 in 2015 when offered with approved $950,000 plans by Centrum of South Yarra.
Its price guidance has been advised as between $4.6 million and $4.9 million by Peninsular Sotheby's International Realty agents Rob Curtain and Danielle Vains.
There was a $2.45 million sale two doors away in late 2018.
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Oceanfront Blairgowrie smart home for sale

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A luxurious three bedroom house in Tweed Heads West went to auction on February 2. 
Situated at <a href="https://www.realestate.com.au/property-house-nsw-tweed+heads+west-132721130" target="_blank">28 Wyuna Road</a>, the home was unsuccessful at auction and is now listed for $3.2 million. 
This home's many features include a Bose sound system, boat shed, poolside deck, aquarium, outdoor shower, and its unobstructed view. 
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<img class="size-full wp-image-551404" src="https://www.realestate.com.au/blog/images/1280x720-fit,progressive/2020/01/19040014/capi_8e91803d1b5552fef5a6a9104843b1f1_6f64a10b3f96dfee3a02b3453bc3b707.jpeg" alt="" width="623" height="350" data-capiid="6f64a10b3f96dfee3a02b3453bc3b707"> </div>
Vendor Jade Golar knocked down the original residence to make way for his dream house.
He said he had a clear vision from the start but conceded the house turned out better than expected.
“I wanted a cross between a beach home and a Hamptons home and wanted elements of those two styles tied together,” he said.
“The house is designed around entertaining, cooking, pool days, boating, wakeboarding and fishing. 
<div id="attachment_551407" class="wp-caption alignnone"><img class="size-full wp-image-551408" src="https://www.realestate.com.au/blog/images/1280x720-fit,progressive/2020/01/19040029/capi_8e91803d1b5552fef5a6a9104843b1f1_48e8263c9eb8db7466ad56e8a1dbe050.jpeg" alt="" width="628" height="353" data-capiid="48e8263c9eb8db7466ad56e8a1dbe050"></div>
The residence features traditional Hamptons styling including crisp white paint, weatherboard cladding, plantation shutters and natural light.
The two-level home offers plenty of different living areas – the ground floor, including a bar and wine cellar, opens via bi-fold doors to the sparkling pool and Terranora Creek while the second level, including a saltwater aquarium and open-plan kitchen, dining and living area, opens to a deck overlooking the pool. 
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Hamptons style home in Tweed Heads West unsuccessful at auction

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A Randwick double-fronted beach house has been sold for $3.2 million. 
The four bedroom, three bathroom family home is situated at <a href="https://www.realestate.com.au/sold/property-house-nsw-randwick-132830890" target="_blank">106 Fern Street</a>. 
Alexander Phillips and Vince Licata of Phillips Pantzer Donnelley Woollahra sold the 1920s house. 
<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/2020/2/5/randwick%202.jpg" alt="">
The fully renovated Californian Bungalow comprises four double bedrooms, Caesarstone kitchen, split level living and ding rooms, and pergola-covered dining terrace.
Other features include ornate ceilings, underfloor heating, secure cellar and auto lock-up garage. 
<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/2020/2/5/randwick%203.jpg" alt="">
The home is within close proximity to beach, cafes, parks and city transport. 
The home last sold for $1.82 million in 2008. 
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Double-fronted 1920's era Randwick beach house sold

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A Bicton trophy home carved into the cliffside has been listed for sale by expressions of interest.
The riverside house holds views from Fremantle to Claremont.
Extending over 7 split levels, the property features dual lift access and a plethora of features, extras and luxuries.
The four bedroom, four bathroom abode sits on the edge of the Swan River.
Mark Dimmock of Porteous holds the <a href="https://www.realestate.com.au/property-house-wa-bicton-132646682" target="_blank">listing</a>.
<img src="https://www.urban.com.au/images/2019/12/17/Beach%204%20-%202.JPG" alt="">
Constructed by Perth building company, Bacic group it is built entirely using insulated concrete form work. The 16m cantilevered, column less façade incorporates frame less glass walls across the main living area and upper master level.
The home is completely bespoke and customised to the owners exact specifications.
The address was not publicly disclosed.
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Riverside trophy home carved into Bicton, WA cliffside listed

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The sprawling Main Beach, Queensland mega apartment located in the Ocean Isles complex has been listed with a $4.95 million price guide.
It's down from its previous $5 million to $5.5 million guide.
Residence 3 is one just one of five in the 1,700 sqm beachfront complex.
The apartment at <a href="https://www.realestate.com.au/property-apartment-qld-main+beach-132615054" target="_blank">3/3511 Main Beach Parade</a> has been listed twice since 2018, initially seeking $6.25 million.
<img src="https://www.urban.com.au/images/2019/12/17/Beach%205%20-%202.JPG" alt="">
The four bedroom, three bathroom abode is spread across a single level.
The apartment features a 20 metre frontage, private pool, spa and BBQ space. It has direct beachfront access from the outdoor terrace.
Duncan Longmore and Michael Kollosche of Kollosche Prestige Agents are currently marketing the property.
 
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Main Beach trophy apartment relisted

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Melbourne City Mission (MCM) will redevelop and relocate one of its youth refuge services to Werribee to support young people experiencing homelessness in Melbourne’s inner west.
Together with the Property Industry Foundation, and a $3.5 million investment from the Victorian Government, MCM will open a high quality, purpose-built youth refuge to break the cycle of youth homelessness. 
With two family units to accommodate infants and families, the redevelopment of MCM’s youth refuge will give young people aged 15-25 a chance to grow into adult independence with a level of support they currently don’t have. 
MCM’s new youth refuge in Werribee comes as a concerning number of young people are experiencing homelessness in the City of Wyndham, which increased by 76 percent in the last five years. On Census night, 730 people identified as homeless. Of those, 384 - over half - were aged between 12-24 years old (ABS 2016). 
MCM Chief Executive Officer Vicki Sutton says the new youth refuge is well placed to respond to the needs of young people who are experiencing homelessness in Melbourne’s western suburbs. 
“Through no fault of their own young people often experience homelessness due to family breakdown, neglect and family violence. These experiences, and the experience of homelessness itself, can lead to significant trauma with long-lasting effects including on mental health.
“This refuge will give young people from the west the opportunity to remain connected with their community during this distressing time while being able to access MCM’s programs, including housing support and therapeutic and mental health programs,” Ms Sutton said.
Kate Mills, Chief Executive Officer of The Property Industry Foundation, said “We’re proud to see the property industry rallying around this crucial project, at a time when there is a lack of affordable housing placing more pressure on young people who do not have family support.” 
The redevelopment of MCM’s new youth refuge commenced with a sod-turning ceremony on the 7th of February, attended by the Treasurer and Member for Werribee, the Hon. Tim Pallas MP. 
“This is more than just bricks and mortar”, said the Member for Werribee. “It’s going to provide young people the second chance they need to get back on their feet and turn their lives around.”
“It’s pretty hard to get a job or an education when you don’t even have a roof over your head. That’s why we’re helping break the cycle of homelessness.”
MCM was one of eight community service organisations in 2017 across the state that received funding through the $27 million in funding through phase two of the State Government’s Accommodation for the Homeless program
The new youth refuge will link with MCM’s suite of programs for young people including its service hub in South Road Braybrook; and other youth supports across Melbourne’s west. 
Due for completion in 2020, MCM’s new youth refuge will deliver positive outcomes for young people by:
1. Providing emergency and crisis accommodation and 24-hour staffing and support for up to ten young people; 2. Providing two family units to assist young parents and their children;   3. A purpose-built children’s play area;  4. Capacity to provide young people with education and independent living skill programs on site. 
Some of the integrated programs and services young people will access at MCM’s new youth refuge include early intervention programs, parenting, education and living skills programs, therapy using art, music and animals, and housing support. 
Over $465,000 in services have been donated pro-bono to the redevelopment by a team of high-calibre consultants, including Turner &amp; Townsend Thinc, Group GSA, Tract Consultants, PLP Building Surveyors, Morris Goding Access Consulting, Rider Levett Bucknall, Nationwide, Irwin, WSP, Hacer and Maddocks.
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Melbourne City Mission to open new Wyndham youth refuge

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A place to call home – very much an attainable proposition according to young Australians 
Young Australians still dream of owning their own home and are actively taking steps towards achieving that goal in 2020, according to new consumer research commissioned by global developer, Lendlease. 
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The national survey of 1,005 Australians aged 18-40 years revealed eight in ten dream of owning their own home, with almost half (47 per cent) believing they will be in their own home within the next five years. Overwhelmingly the Australian dream of home ownership is alive and well, with 79 percent optimistic they will own a home in the future. 
Conducted by McCrindle on behalf of Lendlease, the research also found one in six young Australians believe they will be able to buy a home before the end of 2021, and another third are confident they will buy before the end of 2025. 
There was a marked sense of optimism about the coming 12 months, with a quarter of young Australians (25%) believing 2020 is the right time to buy a home. Three in ten (30 per cent) are also more confident they will be able to buy a home in the next 12 months compared to the past 12 months. The survey also found a majority of young Australians (58 percent) would strongly steer towards buying and building a new home, over an existing home (42 percent). 
The motivations for home ownership, according to the survey participants, are having a place to call their own (69 percent), having their independence (52 per cent), a place to raise a family (50 per cent), and the security home ownership provides (49 per cent). 
Saving for a deposit was identified as one of the most challenging obstacles (55 percent) to overcome on the path to home ownership. More than half (54 per cent) surveyed who are yet to purchase their first home are currently saving for their deposit, with one in five “saving hard”. According to the research, the top five ways young Australians are saving for a home deposit are: 
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1. Cutting back on small expenses (e.g. cafes, eating out, etc.) (45 percent) 2. Saving money with their partner (41 per cent) 3. Opening a specific savings account (36 per cent) 4. Sacrificing a luxury expense (e.g. holiday, new car etc.) (35 per cent) 
5. Starting a side hustle (24 per cent) 
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Interestingly, the media-popularised “OK Boomer” sentiment was strong among the survey participants, with 79 per cent believing the challenge of buying a home today is more difficult for their generation than it was for their parents. 
Many young Australians have seriously/somewhat considered purchasing on the fringes of a city (50 per cent), in a major non-capital city (48 per cent), or a regional area (46 per cent), and have brainstormed creative ways to make their home-ownership dream a reality. Gen Z appeared to be more sustainably minded, with 25 per cent more likely to choose their location allowing them to live more sustainably. 
Lendlease’s consumer research comes in response to the federal government’s First Home Loan Deposit Scheme, which was launched in partnership with the National Housing Finance and Investment Corporation on 1 January to support eligible first home buyers purchase a home sooner. Supporting up to 10,000 loans each financial year, the initiative will provide a guarantee that allows eligible first home buyers to purchase a home up to a value determined per state.
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There are 10 Lendlease communities across New South Wales, Victoria, Queensland and Western Australia that are supporting burgeoning interest in the First Home Loan Deposit Scheme by offering additional incentives beyond the federal government’s 10,000-person cap. 
Lendlease’s bonuses range from stamp duty on land being covered at Calderwood Valley and Bingara Gorge; $10,000 off selected lots at Alkimos Beach, Alkimos Vista, Aurora, Atherstone, Elliott Springs and Harpley; to a $10,000 housewarming gift for properties purchased at Springfield. 
 Matt Wallace, managing director of communities says, “Our new consumer research reveals that 2020 is the year for first home buyers to get into the housing market. Not only are interest rates still near record lows, but first home buyers are able to take better control of their finances with a range of industry initiatives designed to help them out.
"We understand the many challenges facing first home buyers and are ready to help them get their foot on the property ladder. Through several of our communities across Australia we’re offering compelling incentives to fast-track the home-buying process.”
Claire Madden, social trends researcher, demographer &amp; generational expert notes, “Despite Gen Y and Z growing up with the rhetoric of rising housing and living costs, they are showing an optimism and resilience in holding onto the great Australian dream of home ownership.
"Over four in five in our younger generations have the desire to own a home, and almost two in five are extremely or very optimistic that it will become a reality.
"Whilst saving for the deposit is seen by many as the biggest obstacle, these tech-savvy, agile and entrepreneurial generations are switched on to new opportunities and are likely to embrace the home-ownership deposit schemes and find a way to see the dream realised." 
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Home ownership dream still alive for young Australians: Lendlease

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

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The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

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Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

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The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

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The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Staff reporter

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