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It’s a case of good news and bad news for eligible Victorian first time property buyers from today.
The first-home owner grant is increasing from $7000 to $10,000 for those buying new homes, but is cut completely for buyers of existing homes.
Along with the boost to new home grants the state government will fast-track stamp duty cuts, bringing them in six months ahead of schedule.
These will increase from 30 to 40% on homes valued up to $600,000. The combination of a $10,000 First Home Owner Grant and stamp-duty cut means buyers of new home for $400,000 or less will save more than $16,500.
Treasurer Michael O'Brien forecasts the move will help create more jobs in the housing-construction sector.
"Targeting the grant to newly constructed homes - whether in regional Victoria, Melbourne's growth corridors or new CBD apartments - will stimulate the economy and create jobs in the construction sector," Mr O'Brien says.
"These measures will promote more housing construction, leading to more employment, greater housing supply and reduced residential price pressure for Victorian families."
First-home buyers looking to buy established property for, say, $450,000 will benefit only from the stamp duty concession worth $7588, which the Government says offsets the $7000 grant previously available.
Last Nevember the Real Estate Institute of Victoria chief executive Enzo Raimondo says the majority of first-home buyers would not receive the grant.
"I think that first-home buyers should be treated equally," he said.
"I understand that the Government is trying to stimulate construction but most first-home buyers buy established homes and it is unfair that they will miss out on the full savings."
“Overall, the cut is good news for those buying their first home and it will be worth an additional $2377 on a home valued at $530,000.  
‘’This will bring the total stamp duty cut on the median priced home from $4754 to $7131,” Mr Raimondo said.
But Mr O'Brien said the changes will boost construction and ease housing pressures.
"We want to see more jobs and we also want to make sure we have more housing stock to meet the needs of a growing population," he says.
Mr Raimondo says first home buyers should realise that homes bought with 60 day settlements are eligible to benefit from the lower stamp duty because they pay stamp duty on settlement – not when they sign a contract.  
“Settlement occurs on the day the balance of the purchase price is paid and the property’s title document is handed over to the buyer.’’  
“This is unlike the First Home Buyer Grant, which applies from the date the contract is signed.’’
From September 1, 2014, all first-home buyers will benefit from a 50% stamp duty concession.
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New financial year brings mixed news for Victorian first-home buyers

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First home buyers are struggling to buy property because of a lack of savings, not because of competition from property investors, according to a survey by mortgage broker Loan Market. 

 
In an online survey, its 450 brokers were asked: ‘What is the No.1 issue keeping first home buyers out of the market. 68% of brokers blamed low deposits and savings and 21% blamed a lack of government incentives. 

 
Loan Market director Mark De Martino said that with the property market running hot, first home buyers were competing with other buyers armed with equity and savings. However, with the right preparation and guidance, first home buyers could level the playing field, he said. 

 
“The biggest disadvantage most first home buyers have is they’re often younger and haven’t had the same amount of time to build up equity and savings as those purchasing their second or third homes,” De Martino said. 

 
“What first home buyers need to do early is save for a deposit. A larger deposit doesn't necessarily mean you can borrow more and buy a bigger property, it means you can have equity in your home from day one and also avoid loan costs like lenders mortgage insurance,” he said.  

 
De Martino said most first home buyers at Loan Market were meeting with a mortgage broker before they started inspecting properties. This means they can understand how certain loan products work and the savings they can make if they have a bigger deposit. 

 
“A variety of loan products benefit first home buyers, however, they aren’t all equal and depend on your savings level. The product you initially thought was for you, may not be as competitive if your deposit size changes,” De Martino said. 

 
De Martino stressed the importance of first home buyers getting pre-approval for a home loan before they start their property search. 

 
“Pre-approval gives a first home buyer the confidence to attend an auction and bid on it with the peace of mind that they can afford the property and the repayments,” he said. 

 
Only 6% of the brokers surveyed said property investors were the main reason first home buyers were being kept out of the market. 

 
“Property Investors certainly have the benefit of existing equity in their home and certain tax advantages. First home buyers can best compete with them by building up their savings and deposit sizes,” De Martino said.  
 
 
 
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Savings holding back first home buyers

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Buyers should be able to pinpoint reasons why a particular property will appreciate in value and, if they can’t, they should give it a miss.  
Perth property researcher Gavin Hegney, founding director of LMW Hegney, says this is particularly relevant now as many older buyers – often through their SMSFs - base their retirement incomes on, hopefully, rising property values.  
Presently, growth in the self-managed super funds and their frequent use as property-buying vehicles – perhaps in over 70% of transactions - has prompted some commentators to say they are helping create a property ‘bubble’.  
While property investing is an acknowledged ‘super’ strategy, it can only be judged on the income a property generates and its increase in value over time.  
Mr Hegney says that, to generate a decent income, a property has to have a good reason to grow in value. Investors should be able to identify that - or those - reasons before buying.  
‘’My thoughts are not so much the volume, but that often the SMSFs are buying the wrong types of properties,’’ he said.  
‘’Regardless of the ownership of the property, be it in a private name or a SMSF, its financial success relies on one thing: that the property goes up in value and that, when combined with the rental return, that it creates wealth for the owner or beneficiaries over time.  
‘’History has shown that, to create wealth during the early and mid section of the property cycle, there must be a realistic and identifiable reason why a property will increase in value, and the owner must have a best guesstimate as to what that value should be.  
Mr Hegney said experience and research can help identify these points.  
He said significant developments in most capital cities will have a knock-on effect on the values of property in surrounding areas. For instance, in Sydney it may be the effect of the Barangaroo development and its flow-on effect to specific pockets of Sydney, or, in Perth, it may be the City Link and waterfront developments and their knock-on effects.  
‘’There are numerous examples in most cities which simply require an identification of major changes and then an answer to the question: ‘What would this property be worth if this new development or infrastructure was in place?’  
‘’One concern I do have is where a SMSF simply buys a new apartment that has very little identifiable reason to increase in value, and then holds onto that property for 10-20 years .  
‘’Typically, that new apartment of, say, $600,000 becomes worth, say, only $450,000 as a 20-year-old apartment in today’s dollar terms.  
‘’That difference in value must be made up in value terms, plus a reasonable growth factor as well, before the owner of the new apartment creates real wealth.  
‘’If it has a real location reason to increase in value it may be worth buying, but, without it then the prospect of real growth may be very difficult.’’  
Mr Hegney said this situation ‘’becomes very interesting’’ considering that SMSFs today control about $200 billion in property investments with gearing of around $2.4 billion.  
‘’If they decided to gear up then this sector could increase over 100-fold in today's dollars. Let’s hope most of them get it right.’’    
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SMSF investors should be able to pinpoint reasons for property rises before they buy

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The Australian Security and Investments Commission’s goal to improve the standard of advice being given to prospective self-managed super fund trustees, has been welcomed by the SMSF Professionals’ Association of Australia (SPAA).
This includes ensuring SMSF advisers have competencies and skills to better inform potential trustees about the suitability of SMSFs to their circumstances, said CEO Andrea Slattery, while outlining her stance on advisor training and education in SPAA’s submission to ASIC.
The SPAA represents professionals providing a range of services in the SMSF field. It is an advocate for the highest professional standards and competence to ensure SMSF trustees receive the best possible advice.
“In line with this, SPAA has consistently argued that the proposed updated training of advisors should include a specialist SMSF topic if advisers wish to provide advice on SMSFs. This is the reason SPAA has built an SMSF profession,’’ Slattery said.
“We are surprised that ASIC had not suggested an additional, specific topic, in light of recent statements and research by them showing concern for advice practices.
“Similarly, it is surprising ASIC has not sought specific SMSF competencies in the updated RG 146 (regulations) when it has concerns regarding the quality of disclosures made to potential SMSF trustees about the risks of being a trustee.
“We believe that including an SMSF topic in RG 146, and recognising it as a specialist area of superannuation advice, will increase professionalism and understanding among financial advisers who advise on establishing and operating SMSFs leading to increased consumer protection.”
Slattery says that improving SMSF competencies towards potential SMSF trustees would be a significant factor in improving SMSF disclosures. “In particular, SPAA’s SMSF professional accreditation program allows consumers to seek specialist SMSF advice to meet their needs,” she said.
<a target="_parent" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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SPAA backs ASIC plan to strengthen advice standards

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Leading figures in the retirement property industry say there needs to be more transparency in the sector to attract institutional investment now and in the long term.
Tim Russell, managing director of Retire Australia, said the sector was a poor performer that was being held back by not having a large, publicly listed, sector-specific company in which to invest.
“Some of the institutional capital that has been attracted to the sector has been let down by poor performance,” Russell told UK Property Week in a recent issue.
“Capital is still attracted [to the sector] but there are issues around pricing and transparency.”
According to Russell, the biggest opportunities will come when one of the larger operators lists.
“I hope we will have a large, listed, sector-specific operator in the next few years, as that will increase transparency for investors,” he said.
Russell compares the Australian retirement landscape with that of New Zealand, where he says several large sector-specific operators are on the public market — and all of which, he says, trade at a premium to their asset values.
However, Russell is hopeful that a large retirement operator will list in the next few years, noting that FKP Property Group is considering spinning off and listing its retirement arm and that the interest shown in the small-cap Ingenia shows the appetite is there.
A big challenge for the operators in the sector is moving from providing accommodation and maintenance to also providing care packages.
Derek McMillan, chief executive officer of Australian Unity’s retirement living, said there was great opportunity economically for retirement villages to provide care packages because of the concentration of numbers at each village.
He added that this would give operators another source of income and smooth out bumpy cash flows as a result of having a model that only really made money when units were resold.
He hopes the new federal government will ‘’cut some of the red tape’’ that prevents retirement village operators from providing care.
“It was very frustrating with the last government,” McMillan said. “While they had a philosophical approach towards improving access to care … they made a lot of noise but there was no real movement.”
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Greater transparency in retirement property industry required to attract institutional investment: Retire Australia

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It’s a tale of two cities: Home loan approvals in September were the highest since October 2009 - yet the month had the lowest proportion of first home borrowers in two decades.
Figures from the Australian Bureau of Statistics show that the first quarter of the financial year had 12% national growth in loan approvals over the previous year and 13% year on year growth for September.
This comes on the back of record low interest rates, high clearance rates and a boost in the number of properties for sale.
However, increased investor activity – and a noticeable rise in cashed-up foreigners - has forced first home buyers out of the race, with their numbers falling from 13.7% of buyers in August to 12.5% in September.
The proportion of first home buyers in the number of owner-occupied housing finance commitments is now one in eight - the lowest since data was collected in July 1991, the Real Estate Institute of Australia says. It is far lower than the long-run average of 20.15%, despite eight interest rate cuts since November 2011.
In contrast, owner-occupied finance approvals rose 12.6% for the 12 months to September and investors took out 5.2% more loans in September than in August.  
"With the proportion of first home buyers at historic lows and figures indicating no bubble in lending, the Reserve Bank Board should be taking a ‘steady as she goes’ approach in December," said REIA president Peter Bushby.  
Changes to the first home buyers’ grants - which in Victoria is $10,000 for the purchase of new homes after July 1 this year but none for established homes – is being blamed for keeping first home buyers behind the eight ball. Pressure on them is further compounded by investors having greater equity in existing property and being able to borrow more at cheaper rates - without the need for mortgage insurance.  
But state treasurer Michael O’Brien said loan approvals for new dwellings in Victoria were the highest of any state. "Victoria contributed 29% of national loans for new dwellings in September which is above its population share of 24.8 %.
"The Coalition government is supporting first home buyers by increasing grants for new homes and bringing forward a major cut in stamp duty.
"Since July 1, more than 6,500 new home buyers have received the stamp duty concession, which amounts to almost $36 million in benefits to first home buyers.
"Targeting the first home owner grant to newly constructed homes – whether in regional Victoria, Melbourne’s growth corridors or new CBD apartments – will stimulate the economy and create jobs in the construction sector." He said the move "brings Victoria into line with New South Wales, Queensland and South Australia".
Loan Market director Mark De Martino said that the first quarter of the financial year was off to "a very hot start" with low interest rates and a recovering property market helping boost activity in the home finance space.  
"Nearly every state is showing double digit growth for the first quarter" De Martino said.  
The 51,938 home finance approvals in September were a rebound from the August figures which saw the first month-on-month drop in approvals in 45 months.  
High auction clearance rates this spring point to a continuing upward trend in market activity.  
De Martino said pre-approvals were helping buyers get a ‘leg up’ over the competition at auctions, although he agreed first home buyers were struggling to enter the market. "As the prospective pool of buyers grows, it’s only a matter of time before first home buyers return. 
"They are competing with cashed-up investors and upgraders who have significant equity in their properties. Building a sizable deposit and understanding their borrowing power with pre approval will give them the best chance to compete in this market."  
Number of Home Finance Commitments September 2013: ABS  
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>
State
</td>
<td>
September 2013 v 2012
</td>
<td>
Quarter v Quarter
</td>
</tr>
<tr>
<td>
NSW
</td>
<td>
9%
</td>
<td>
11%
</td>
</tr>
<tr>
<td>
VIC
</td>
<td>
17%
</td>
<td>
15%
</td>
</tr>
<tr>
<td>
QLD
</td>
<td>
11%
</td>
<td>
12%
</td>
</tr>
<tr>
<td>
SA
</td>
<td>
19%
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
WA
</td>
<td>
11%
</td>
<td>
8%
</td>
</tr>
<tr>
<td>
TAS
</td>
<td>
6%
</td>
<td>
8%
</td>
</tr>
<tr>
<td>
NT
</td>
<td>
-1%
</td>
<td>
-11%
</td>
</tr>
<tr>
<td>
ACT
</td>
<td>
24%
</td>
<td>
23%
</td>
</tr>
<tr>
<td>
Australia
</td>
<td>
13%
</td>
<td>
12%
</td>
</tr>
</tbody></table>
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<img src="/images/stories/2013/11/06/jc-insights.png" width="140" height="150" alt="jc-insights" style="float: left;">PROPERTY INSIGHTS
<a title="Falling first home buyers numbers the result of state government FHB grant meddling" href="https://www.propertyobserver.com.au/news/falling-first-home-buyers-numbers-the-result-of-state-government-fhb-grant-meddling/2013111166285?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=jonathanchancellor'spropertyinsights">Falling first home buyers numbers the result of state government FHB grant meddling</a>
"The decline in FHB numbers follow the re-targeting of the originating FHB grants and/or stamp duty exemptions across the states to encourage FHBs to buy new homes not established homes."
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Home loan approvals soar while first home buyer proportion sinks

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Vacancy rates across Sydney’s popular inner and middle suburbs have tightened as first home buyers, struggling to afford properties, look to rental accommodation.
The October 2013 Real Estate Institute of New South Wales Vacancy Rate Survey shows availability across the Sydney metropolitan area is steady at 1.7%.
REINSW president Christian Payne said the rate was the lowest the middle suburbs had experienced in 18 months. "It is yet another indicator of how the abolition of incentives on existing properties for first home buyers is causing issues across the marketplace."
Other figures are:
• Inner suburbs (0-10 kilometres from the CBD) are down 0.1% to 1.7%
• Middle suburbs (10-25 kilometres from the CBD) fell 0.2% to 1.6%
• Outer suburbs (more than 25 kilometres from the CBD) are up 0.2% to 1.7%
"First home buyers who can’t afford to buy their dream homes are putting substantial pressure on the
rental market," Payne said.
"Middle suburbs, including Auburn, Burwood, Hunters Hill, Parramatta and Ryde are some of the hardest places to find accommodation in Sydney."
Outside Sydney, the Hunter fell 0.1% to 2.9% despite Newcastle’s increase of 0.7% to 2.4%. The Illawarra remained steady at 2.0% even though Wollongong’s vacancy rate rose 0.4% to 2.3%.
In regional areas, Albury is the hardest place to find rental accommodation after a decline 0.2% to 1.8%. Orana, which had previously held the title, jumped 0.6% to 1.9%.
Northern Rivers’ availability rose 0.2% to 3.1% and New England was up 0.5% to 2.9%.
Meanwhile, the easiest place to find rental accommodation in the state is the Central West after a rise of 0.3% to 4.1%. South Eastern NSW added 0.5% to 4.0%. Coffs Harbour’s availability leapt 0.8% to 3.8%.
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
 
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Struggling first home buyers pushing down Sydney's inner and middle suburb vacancy rates

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Cedar and lush grazing land attracted the early settlers to Wollongong in the early 1800s, but coal mining and the establishment of heavy industry 100 years later laid the framework for the city’s future.
Now – post job shedding as steel industry tariff cuts bit hard - the city of 292,000 has established a niche for itself as a broad-based industry, university and tourism town ready for a new chapter.
And <a target="_blank" href="/news">Wollongong</a> is holding its own in the property market despite fears that prices would tumble in a high-unemployment period.
Dr Andrew Wilson, of Australian Property Monitors, said the city – NSW’s third largest – had shown resilience despite the job-shedding issues in the steel industry in the nineties which were supposed to be significant. "It seems to have picked up Sydney’s energy with solid prices that appear to be rising," he said.
"Regional areas often tend to follow price cycles, reflecting the economic draw-downs flowing from big cities, and this seems to be happening at Wollongong, whereas there were expected to be problems."
Wilson said government compensation to soothe the effects of job losses had helped moderate fallout. "Wollongong is an emerging lifestyle market, too," he said, pointing to the cliff-side weekenders north of the city. "That’s part of the real estate market driver."
Covering 714 square kilometres on a narrow coastal strip bordered by the Royal National Park to the north, Lake Illawarra to the south, the Tasman Sea to the east and the Illawarra escarpment to the west, the name Wollongong originated from the Aboriginal word woolyungah meaning five islands.
According to the city’s public records, Aboriginals lived there for at least 30,000 years, with Wodi Wodi their tribal name. In 1815 a doctor, Charles Throsby, drove cattle down from the Southern Highlands to a lagoon of fresh water near South Beach, beginning permanent European settlement.
The area's first school was established in 1833 (Wollongong City Library), and a year later the Surveyor-General arrived from Sydney to lay out the township of Wollongong on Dr Throsby’s property.
The steel industry began in 1927 when Charles Hoskins entered into an agreement with the state government to build a steelworks at nearby Port Kembla. Operations began in 1930 with a blast furnace of 800 tons capacity. In 1936, BHP acquired Australian Iron and Steel Limited and production at Port Kembla increased rapidly. The steel industry was a catalyst for growth for many decades, and laid the foundations for the city's economy, lifestyle and culture.
But changing economics meant diversification became the key to the city’s future, with construction of the Sea Cliff bridge to the north adding focus to the tourism industry, and information technology, hospitality, health services and telecommunications becoming key industries in the region. The university has 22,000 students.
These far-sighted measures have laid the foundations for a resilient property market. Paul Abrahams, of Century21 Wollongong, said the city was having "record sales across the board" – especially in the sub-$400,000 price bracket.
"We’ve had properties selling within two weeks of opening," he said. “I’ve even sold one at the first open house."
Properties selling for under $300,000 are "walking out the door; those around $400,000 are taking a bit longer to move and those $700,000-$1 million are taking their time". Abrahams said buyers of this latter range can afford to be choosy: they know the costs of buying and selling – up to $100,000 - and might choose to put in a new kitchen or install a pool.
The large number at open-for-inspections – 12 people here; 14 there – puts pressure on potential buyers and pushes up prices. People are scared of missing out.
A common denominator is the high number of investors - perhaps three quarters of the total – and they’re mostly from Sydney. "They point to the minimal time taken to get here – about an hour and 15 minutes for the 82 kilometre trip – as well as the beautiful scenery and the beaches. And Sydney is very expensive."
Abrahams said the government had "got it wrong" giving incentives to investors rather than making it easier for first home buyers to get into the market. "The first home buyers are almost gone now," he said. "They used to get a $7000 grant and were exempt from paying stamp duty, which meant they needed less to buy a home and were at least in the race with investors who already had equity and who could arrange cheaper interest rates and lock them in."
He said giving grants to first home buyers of new property was "doing it the wrong way around".
"New homes take too long to build: you’ve got to clear the land and seal roads and they’re always a long way from infrastructure such as schools, roads and transport.
"The government shouldn’t worry about the more established buyers because they doing ok already: assisting them is going the wrong way about it because they don’t need handouts, whereas young people are battling with lower wages and job insecurity," said Abrahams.
 
staylor@propertyobserver.com.au
 
 
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Suburb spotlight: Wollongong's resilience attracts interest

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Would you? Could you? Perhaps you have already ...
Falsify your address just to get your little ray of sunshine into the family’s school of choice, that is.
Some parents do it; others scheme about it and those secondary schools in their sights – such as McKinnon, Balwyn and Canterbury Girls' – put strategies in place to make sure it doesn’t happen (often).
The pressure on some high-achieving parents to get children into schools of choice leads them to drastic measures. Some are said to fudge their addresses by bribing relatives, others change their mobile phone billing data, some wealthy parents buy a second property – with no intention of living there – just so they can have a postal address for school documents. Others make false statutory declarations – or rent properties for six months and then leave them vacant.
It seems nothing is too much trouble when a place in a class in the best school is on the line.
Getting in on the front foot, McKinnon Secondary College says it "strongly advises prospective parents to contact the college before securing a leased property, or purchasing a property, to discuss enrolment options."
It’s a serious issue with strict criteria, such as the <a href="https://www.mckinnonsc.vic.edu.au/the-mckinnon-zone/" target="_blank">boundaries designated by McKinnon Secondary College</a> (pictured below).
<img src="/images/stories/2014/01/21/mckinnon-jan-21-one.jpg" alt="mckinnon-jan-21-one" height="458" width="470">
Source: McKinnon Secondary College
Only houses on the inside of boundary roads are deemed to be in-zone. If the zone is amended, the school says it will signal changes on its website and in the local press.
Enrolling students must live with their parents. Staying with a relative or friend does not qualify a student as a "resident". And guardianship is not a criterion for enrolment unless supported by relevant papers endorsed by the Family Court of Australia.
Balwyn High School says its expectation is that a family will remain permanent residents within the zone for the duration of their child’s education. It says it cannot guarantee a child’s continuing enrolment if their residential status changes during that time.
It has been a long-term requirement that new enrolments sign a residency declaration stating the family’s intention to remain permanent residents in the zone as long as their child is enrolled there.
The purchase of property in certain areas to guarantee entry is taking its toll on some schools who simply cannot find a place for them. Balwyn High School says it is "constantly liaising" with the Department of Education and Early Childhood Development regarding its "acute accommodation problem". It says it is investigating the possible placement of new students into other government schools as a means of alleviating its "accommodation crisis".
But Victorian Education Department spokesman Liam Carter said there was no review and no state government policy in place to prevent parents falsifying information for school enrolments. "It’s not much of an issue in Victoria as most schools take students from out of their zones anyway," he said. "Only a few schools have specific zones and they manage the issue themselves."
As an aside, he said he had heard of one principal who would go around to addresses he was sceptical of and check that a certain student did, in fact, live there. This is verified by an entry on the McKinnon Secondary College website stating: ‘’ Documentary proof of residence is required, and applicants may be personally visited without warning to verify habitation claims.’’
That’s one way to check. Other ways include providing evidence of the purchase of a property in the zone or a property lease from a licensed real estate agent for at least 12 months. The property and lease must be under the parent's name. Copies of a driver's license, utility bills – all in the parents’ names - are other items asked for as proof of address.
Article continues on next page. Please click below.
 
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School zoning is also a dividing feature in the UK where a Parent Power survey, commissioned by education charity Sutton Trust, found a third of professional parents deliberately moved to an area with good schools, while one in five moved to the catchment area of a specific school.
The claims were made in the Mail Online which found that one-in-20 parents could afford to buy a second home just to use the address when applying for enrolment. This was more than double the 2% among parents in general.
Around 6% – double the average – admitted using a relative’s address on application forms. And one in 10 said they had started going to church to get their child into a faith school compared with one in 16 among parents in general.
And one in 20 – 5% - said they bought a second home to use the address when applying for a place at a specific school. This is more than double the 2% among parents in general.
Hocking Stuart Bentleigh’s Fran Harkin said property was "definitely more expensive" in the McKinnon school zone which reflects the fact that parents will pay more for the privilege of sending their children there. Salesman Anton Zhouk said anecdotal evidence was that some parents bought second properties in the zone for a legitimate address to present to the school regarding their child’s enrolment.
"You hear of it going on but, of course, it’s never talked about," he said. "Some buy land - without a house on it - just to qualify."
"The zoning requirements have a marked effect on prices," Zhouk confirmed. "Centre Road divides the zone and properties on the ‘right’ side may cost $150,000 more. It’s certainly a good selling point."
Melissa Ryan, of Hodges Bentleigh, said "very specific buyers, such as the Chinese, come to Australia to give their offspring a quality education" and this has a big effect on school zone land prices.
"They want their children to stand out amongst the rest and an Australian education has cache. So, in order to get their children into a good school, they will pay extra for it."
Ryan said the value of the Aussie dollar played a part in their strategy. "When the dollar was high Chinese buyers left the market, so that houses in the school zone were selling for less than those outside. Now, with the dollar low, they are back in."
The return of the Chinese is certainly affecting prices, with Ryan saying they were "even outbidding developers" on property where the minimum to buy in is around $1 million. "Over the past two years – when the dollar was high - this has not been the case."
Agent sbelieve that buyers of Asian origin – who make up 80%-90% of buyers in the area – are especially keen to send their children to select schools. Many can afford to pay cash for their new homes.
Ryan said the McKinnon/Bentleigh market was strong. "This time of year people buy cars and houses. Anything that is still on the market is being snapped up quickly."
John Pollard, of Woodards Bentleigh, said school-catchment zones "had a huge pull" on buyers and put a 10% premium on sale prices. "And it is usually the starting point of the marketing campaign."
Pollard said planning ahead could pay dividends. He said a Chinese couple from Thomastown with a pre-school age daughter recently bought a rundown property in McKinnon – in the school zone, of course – planning to rent it out until their daughter is ready for year 7, when they will move in.
NSW schools are equally strict about their enrolment criteria. Popular Willoughby Girls’ High School in the inner north lists ‘residential proximity’ as the main criterion for entry, with proof of a student's address to include originals of different documents, such as a council rates notice or residential lease and electricity bills with their parents’ names.
The school lists nearby suburbs in priority order according to their distance from the school, which is defined as a straight line point to point from the school to the nearest point on the suburb boundary. Parents can access a <a href="https://www.wghs.nsw.edu.au/WGHS/assets/File/Residential%20Proximity%202%5b1%5d(1).pdf" target="_blank">residential proximity</a> map to see how far they are from the school.
Artarmon Public School – a few minutes away on Sydney's lower north shore – is reportedly the fifth-best primary school in the state. And that’s a sound reason for parents to buy in the suburb, says Jason Georges, of Ray White Willoughby. "There are only a limited number of streets in the catchment and property there is always in demand, with three bedroom houses usually going for around a million dollars."
Killara High School – like all NSW public schools – has enrolment criteria insisting that children are designated to a particular school based on the permanent residential address of their primary caregiver.
It has to - as one of the few non-selective public schools to rank in the top 100 high schools in the state it has massive enrolment pressures.
The president of the Parents and Citizens Association, David Jordan, told Fairfax newspapers that growing housing density was putting huge pressures on the school. "You're getting a massive increase in population in the area but there's no money going into infrastructure in the schools. Basically, the school was designed for about 900 students. It's over 1500 now. We just can't afford to have out-of-area kids."
In 2002, only about half the students at Killara came from the local area. Now it is nine out of 10, he said.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
 
 
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School zones: How far would you go to get into the best schools?

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Would you? Could you? Perhaps you have already ...
Falsify your address just to get your little ray of sunshine into the family’s school of choice, that is.
Some parents do it; others scheme about it and those secondary schools in their sights – such as McKinnon, Balwyn and Canterbury Girls’ – put strategies in place to make sure it doesn’t happen (often).
The pressure on some high-achieving parents to get children into schools of choice leads them to drastic measures. Some are said to fudge their addresses by bribing relatives, others change their mobile phone billing data, some wealthy parents buy a second property – with no intention of living there – just so they can have a postal address for school documents. Others make false statutory declarations – or rent properties for six months and then leave them vacant.
It seems nothing is too much trouble when a place in a class in the best school is on the line.
Getting in on the front foot, McKinnon Secondary College says it ‘’strongly advises prospective parents to contact the college before securing a leased property, or purchasing a property, to discuss enrolment options’’.
It’s a serious issue with strict criteria (take in map <a href="https://www.mckinnonsc.vic.edu.au/the-mckinnon-zone/">https://www.mckinnonsc.vic.edu.au/the-mckinnon-zone/</a>): Only houses on the inside of boundary roads are deemed to be in-zone. If the zone is amended, the school says it will signal changes on its website and in the local press.
Enrolling students must live with their parents. Staying with a relative or friend does not qualify a student as a ‘’resident". And guardianship is not a criterion for enrolment unless supported by relevant papers endorsed by the Family Court of Australia.
Balwyn High School says its expectation is that a family will remain permanent residents within the zone for the duration of their child’s education. It says it cannot guarantee a child’s continuing enrolment if their residential status changes during that time.
It has been a long-term requirement that new enrolments sign a residency declaration stating the family’s intention to remain permanent residents in the zone as long as their child is enrolled there.
The purchase of property in certain areas to guarantee entry is taking its toll on some schools who simply cannot find a place for them. Balwyn High School says it is ‘’constantly liaising’’ with the Department of Education and Early Childhood Development regarding its ‘’acute accommodation problem’’. It says it is investigating the possible placement of new students into other government schools as a means of alleviating its ‘’accommodation crisis’’.
But Victorian Education Department spokesman Liam Carter said there was no review and no state government policy in place to prevent parents falsifying information for school enrolments. ‘’It’s not much of an issue in Victoria as most schools take students from out of their zones anyway,’’ he said. ‘’Only a few schools have specific zones and they manage the issue themselves.’’
As an aside, he said he had heard of one principal who would go around to addresses he was sceptical of and check that a certain student did, in fact, live there. This is verified by an entry on the McKinnon Secondary College website stating: ‘’ Documentary proof of residence is required, and applicants may be personally visited without warning to verify habitation claims.’’
That’s one way to check. Other ways include providing evidence of the purchase of a property in the zone or a property lease from a licensed real estate agent for at least 12 months. The property and lease must be under the parent's name. Copies of a driver's license, utility bills – all in the parents’ names - are other items asked for as proof of address.
School zoning is also a dividing feature in the UK where a Parent Power survey, commissioned by education charity Sutton Trust, found a third of professional parents deliberately moved to an area with good schools, while one in five moved to the catchment area of a specific school.
The claims were made in the Mail Online which found that one-in-20 parents could afford to buy a second home just to use the address when applying for enrolment. This was more than double the 2% among parents in general.
Around 6% – double the average – admitted using a relative’s address on application forms. And one in 10 said they had started going to church to get their child into a faith school compared with one in 16 among parents in general.
And one in 20 – 5% - said they bought a second home to use the address when applying for a place at a specific school. This is more than double the 2% among parents in general.
Hocking Stuart Bentleigh’s Fran Harkin said property was ‘’definitely more expensive’’ in the McKinnon school zone which reflects the fact that parents will pay more for the privilege of sending their children there. Salesman Anton Zhouk said anecdotal evidence was that some parents bought second properties in the zone for a legitimate address to present to the school regarding their child’s enrolment.
‘’You hear of it going on but, of course, it’s never talked about,’’ he said. ‘’Some buy land - without a house on it - just to qualify.’’
Cashed-up Asians – who make up 80%-90% of buyers in the area – are especially keen to send their children to select schools. Many can afford to pay cash for their new homes.
‘’The zoning requirements have a marked effect on prices,’’ Zhouk confirmed. ‘’Centre Road divides the zone and properties on the ‘right’ side may cost $150,000 more. It’s certainly a good selling point.’’
Melissa Ryan, of Hodges Bentleigh, said ‘’very specific buyers, such as the Chinese, come to Australia to give their offspring a quality education’’ and this has a big effect on school zone land prices.
‘’They want their children to stand out amongst the rest and an Australian education has cache. So, in order to get their children into a good school, they will pay extra for it.’’
Ryan said the value of the Aussie dollar played a part in their strategy. ‘’When the dollar was high Chinese buyers left the market, so that houses in the school zone were selling for less than those outside. Now, with the dollar low, they are back in.’’
The return of the Chinese is certainly affecting prices, with Ryan saying they were ‘’even outbidding developers’’ on property where the minimum to buy in is around $1 million. ‘’Over the past two years – when the dollar was high - this has not been the case.’’
Ryan said the McKinnon/Bentleigh market was strong. ‘’This time of year people buy cars and houses. Anything that is still on the market is being snapped up quickly.’’
John Pollard, of Woodards Bentleigh, said school-catchment zones ‘’had a huge pull’’ on buyers and put a 10% premium on sale prices. ‘’And it is usually the starting point of the marketing campaign.’’
Pollard said planning ahead could pay dividends. He said a Chinese couple from Thomastown with a pre-school age daughter recently bought a rundown property in McKinnon – in the school zone, of course – planning to rent it out until their daughter is ready for year 7, when they will move in.
NSW schools are equally strict about their enrolment criteria. Popular Willoughby Girls’ High School in the inner north lists ‘residential proximity’ as the main criterion for entry, with proof of a student's address to include originals of different documents, such as a council rates notice or residential lease and electricity bills with their parents’ names.
The school lists nearby suburbs in priority order according to their distance from the school, which is defined as a straight line point to point from the school to the nearest point on the suburb boundary. Parents can access a <a href="https://www.wghs.nsw.edu.au/WGHS/assets/File/Residential%20Proximity%202%5b1%5d(1).pdf" target="_blank">Residential Proximity</a> map to see how far they are from the school.
Artarmon Public School – a few minutes away on Sydney's lower north shore – is reportedly the fifth-best primary school in the state. And that’s a sound reason for parents to buy in the suburb, says Jason Georges, of Ray White Willoughby. ‘’There are only a limited number of streets in the catchment and property there is always in demand, with three bedroom houses usually going for around a million dollars.’’
Killara High School – like all NSW public schools – has enrolment criteria insisting that children are designated to a particular school based on the permanent residential address of their primary caregiver.
It has to - as one of the few non-selective public schools to rank in the top 100 high schools in the state it has massive enrolment pressures.
The president of the Parents and Citizens Association, David Jordan, told Fairfax newspapers that growing housing density was putting huge pressures on the school. "You're getting a massive increase in population in the area but there's no money going into infrastructure in the schools. Basically, the school was designed for about 900 students. It's over 1500 now. We just can't afford to have out-of-area kids."
In 2002, only about half the students at Killara came from the local area. Now it is nine out of 10, he said.
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Hot topic: Buying property to secure children a school place

As <a href="https://www.apartments.com.au/new-apartments/elevaire-palm-beach-1409-1411-gold-coast-highway-palm-beach-qld-4221">Elevaire Palm Beach</a> moves swiftly toward completion, the final two- and three-bedroom residences offer a rare chance to secure a North Palm Beach home just moments from the shoreline.

Developed by <a href="https://www.apartments.com.au/developers/evoke-property-group">Evoke Property Group</a>, Elevaire is more than just apartments facing the beach on the east side of the main drag; the units are sanctuaries designed to echo the rhythms of the coast.

“Elevaire is inspired by the glistening ocean waves and the rolling sand dunes,"&nbsp;<a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>&nbsp;Director&nbsp;Sandra Browne says.

"The interior palette is subtle and inviting, understated in its connection to the surroundings.”

[smartcode_project:default project_id=112941 project_image_fid=216014]

Located only 50 metres from the beach, each residence is carefully oriented to enhance its connection with the surrounding landscape. Full-height glazing opens onto expansive balconies, drawing sunlight deep into the open-plan interiors.

Kitchens are appointed with premium Smeg appliances, porcelain &nbsp;stone benchtops, and bespoke joinery, while engineered herringbone timber flooring and ducted air-conditioning ensure durability and comfort year-round.

[smartcode_project:default project_id=112941 project_image_fid=216067]

&nbsp;

Each layout, whether two or three bedrooms, has been planned with generous proportions and adaptable living in mind. The three-bedroom apartments extend this with dedicated butler's pantries and generous balconies offering panoramic views over Tallebudgera and North Palm Beach.

Beyond individual residences, Elevaire's amenity suite reinforces its lifestyle promise. A wellness-focused ground level includes hot and cold magnesium pools, sauna, sun deck, outdoor shower and entertaining areas with BBQ and dining facilities, ensuring the development supports both rest and social connections.

[smartcode_project:default project_id=112941 project_image_fid=216018]

Builder 5POINT is expecting a February completion of Elevaire, with buyers moving in shortly after.

[smartcode_project_cta:default project_id=112941]

Staff Writer

Inside the final apartments at Elevaire Palm Beach

The introduction of a new apartment style by Sekisui House Australia at <a href="https://www.apartments.com.au/new-apartments/zeste-at-the-orchards-norwest-104-fairway-drive-norwest-nsw-2153">Zeste</a>, the final stage of its $1 billion Norwest masterplan The Orchards, has fuelled buyer demand, particularly from the local downsizer.

The new product&nbsp;offering, Breezeway Sky Homes, accounted for 40 per cent of the 25 sales achieved at the launch of Zeste's first building, Essence, which makes up 135 of the 209 apartments in Zeste. Around 90 per cent of purchasers were local owner-occupiers.

[smartcode_project:default project_id=150510 project_image_fid=351878]

David Lee, Sales Manager at Sekisui House Australia, said the new Breezeway Sky Homes had proven the standout performer.

“These residences introduce cross ventilation, north south orientation, butler’s pantries and private courtyard entries that make apartment living feel like a genuine home," Lee says.

“Purchasers are choosing Norwest over other suburbs such as Hills Showground, Tallawong and Macquarie Park due to the limited supply. Zeste is also the final stage of The Orchards masterplan, where all community amenities will be fully completed, making it a functioning neighbourhood from day one.”

[smartcode_project:default project_id=150510 project_image_fid=352090]

Lee noted that while the expanded federal government’s Home Guarantee Scheme had encouraged more first home buyers to enquire, the majority of purchasers were local homeowners taking advantage of the final opportunity to secure an address within The Orchards.

“Zeste represents the culmination of Sekisui House Australia’s decade long vision for The Orchards, creating a neighbourhood defined by community, sustainability and design excellence. With Zeste, that vision comes full circle."

[smartcode_project:default project_id=150510 project_image_fid=351876]

Designed by Rothelowman, each residence integrates natural light and greenery, reflecting Sekisui House’s global philosophy of creating harmony between people, homes and nature.

“Zeste’s apartments are on average 20 per cent larger than previous stages, with generous internal areas tailored for owner occupiers,"&nbsp;Lee added.

"Buyers have also responded positively to the premium upgrade options and the project’s independent 4 Gold Star iCIRT rating, which reinforces confidence in quality and delivery."

[smartcode_project:default project_id=150510 project_image_fid=352091]

Castle Hill retirees Aswin and Dilu purchased a three-bedroom Breezeway Sky Home in Zeste.

“We have lived in the Castle Hill area for over 15 years in a large five-bedroom home and wanted something smaller but not too small," Ashwin said.

"The moment we walked into the showroom and saw the vision for Zeste we were sold. Our apartment is over 200 square metres so there is plenty of space. The layout, light timber finishes, Japanese craftmanship, balcony overlooking a landscaped courtyard and concierge were standout features. Proximity to friends, shops, restaurants, Sydney Olympic Park, walk and cycle paths and the new Metro made out decision very easy."

[smartcode_project:default project_id=150510 project_image_fid=352096]

Sales so far have ranged from $735,000 to $2.2 million, with purchasers responding to the combination of large floorplans, refined finishes, and access to resort-style amenity within the masterplanned community.

Construction of Zeste will commence in early 2026, with completion anticipated in early 2028.&nbsp;

To date, more than 860 apartments have been sold across The Orchards, equating to over 65 per cent of the entire masterplan, marking the end of an era for The Orchards, an innovative project 10 years in the making.

Set on a nature site with a creek and cycle/walkways, The Orchards will feature recreational amenities including a 1.4-hectare public park, an outdoor cinema, onsite café, playgrounds, break-out green spaces, lagoon pool and large fitness centre.

[smartcode_project_cta:default project_id=150510]

Joel Robinson

Local owner-occupiers drive sales at Zeste, Norwest

Within a few weeks of unveiling its newest Sydney apartment development The Rushcutters, developer Third.i, and joint venture partner NPACT, have sold out all of the two-bedroom apartments in the boutique building.

Over 200 guests attended an exclusive VIP evening, followed by a bustling weekend at the display suite in Potts Point. More than 50 groups toured the suite, resulting in multiple deposits.

Two-bedroom apartments have sold out, and the remaining three-bedroom residences are available from $4.95 million.

The Rubinstein Group’s James Nixon and Christian Jones are the local agents appointed to sell <a href="https://www.apartments.com.au/new-apartments/the-rushcutters-51-57-bayswater-road-rushcutters-bay-nsw-2011">The Rushcutters</a>, alongside Hume Residential. JLL’s Freya Watson, Harri Williams-Jones and Patrick Yi are the listed international agent for The Rushcutters.

[smartcode_project:default project_id=144646 project_image_fid=354308]

The Rushcutters is redefining luxury apartment living by offering the unique opportunity to combine two apartments into a single, expansive whole-floor residence. This delivers the ultimate in harbourside luxury, with generous living spaces, curated finishes, and seamless indoor-outdoor flow. Due to strict planning controls, only one level is available for amalgamation, making it a truly one-off chance for those seeking an inner-city, house-sized apartment.

Luke Berry, Director and Co-founder of <a href="https://www.apartments.com.au/developers/thirdi-group">Thirdi Group</a>, said the feedback from buyers has been "overwhelmingly positive", with many drawn to the flexibility and lifestyle that whole-floor living provides

“We’ve always believed there was a real appetite for large, luxury apartments in this part of Sydney, but the response to The Rushcutters has been incredible," Berry said.

“People are looking for something special space, quality, and a sense of home, all in a location that’s second to none. We’re proud to offer a project that delivers on all fronts."

[smartcode_project:default project_id=144646 project_image_fid=351899]

Designed by renowned architects <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, The Rushcutters blends contemporary elegance with timeless materials.

Each residence features expansive living areas, floor-to-ceiling glazing, and high-end finishes that reflect a commitment to quality and detail. Residents will also enjoy secure parking, private outdoor terraces, and seamless connectivity to Sydney’s CBD, parks, and waterfront.

The project’s location in Rushcutters Bay places it within easy reach of the city’s best dining, shopping, and recreational amenities, but is far enough removed to not be in the heart of the urban bustle.

&nbsp;

&nbsp;

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Buyers jump at The Rushcutters launch

Capital Corporation has officially broken ground on its landmark residential project, The Residences at Wahroonga Estate.

The milestone marks the beginning of a joint venture with the Seventh-day Adventist Church, delivered in partnership with award-winning builder DASCO. Together with interior design by Coco Republic and architecture by GroupGSA, the partnership will transform an underutilized block of land into a vibrant new residential community.

[smartcode_project:default project_id=135247 project_image_fid=284381]

Capital Corporation Managing Director Jim Hunter said&nbsp;DASCO’s reputation and capability made them the standout choice for this key project.

"<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at&nbsp;Wahroonga&nbsp;Estate</a> will be a luxury landmark development for&nbsp;Sydney’s Upper North Shore, and we’re confident&nbsp;DASCO&nbsp;will help bring it to life with integrity and the highest standards of workmanship.”

[smartcode_project:default project_id=135247 project_image_fid=262185]

With around 55 per cent of the initial release already sold, valued at approximately $100 million, the development is being hailed as a key catalyst in the renaissance of Sydney’s Upper North Shore residential market.

Capital Corporation’s decision to position The Residences at Wahroonga Estate next to Sydney Adventist Hospital (the San), one of the most respected and significant private hospitals in Sydney, is resonating strongly with buyers who value convenient access to healthcare and lifestyle amenity.

[smartcode_project:default project_id=135247 project_image_fid=284380]

Sydney Adventist Hospital CEO Brett Goods said the development reflects the hospital’s long-standing commitment to community wellbeing.

“The San has been part of the Wahroonga community for more than 120 years, providing care for generations of families. The Residences at Wahroonga Estate continues our vision of providing world class healthcare and promoting wellness, connection and peace of mind for residents and patients alike,” said Goods.

[smartcode_project:default project_id=135247 project_image_fid=284379]

New research commissioned by Capital Corporation into Australian downsizing motivations underscores the growing influence of health and wellbeing on property decisions.

The study found that around one in three Australians (35%) are downsizing due to health- related reasons and want to live closer to medical facilities.

It also revealed that nearly two-thirds (64%) of downsizers seek apartments near general amenities, while a third (33%) specifically value close access to health and wellbeing features when choosing where to live.

Hunter said the findings explained the success of The Residences at Wahroonga Estate, where the combination of premium design, convenience and direct access to Sydney’s leading private hospital has proven to be a major drawcard.

The groundbreaking ceremony was attended by NSW Building Commissioner James Sherrard, the Seventh-day Adventist Church, DASCO and key stakeholders, reflecting Capital Corporation’s enduring reputation as a trusted joint venture partner and leader in quality, community-driven development.

[smartcode_project:default project_id=135247 project_image_fid=284382]

Francois Keet, CFO of the Seventh-day Adventist Church in the South Pacific said they chose to partner with Capital Corporation because of their proven experience in delivering community-focused developments.

“They’ve helped unlock value in the Estate, allowing us to reinvest in what matters — healthcare training, senior care, key worker housing and other vital local initiatives.

“This partnership is about more than development; it’s about futureproofing our mission and creating lasting social impact for the community we serve.”

&nbsp;

The Residences at Wahroonga Estate is set to complete in 2027 and will offer 128 one, two and three-bedroom, pet-friendly apartments immersed in nature.

[smartcode_project_cta:default project_id=135247]

Capital Corporation breaks ground on The Residences at Wahroonga Estate

<a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a> has completed&nbsp;<a href="https://www.apartments.com.au/buildings/broadway-on-the-bay-crawley-168-broadway-crawley-wa-6009">Broadway on the Bay</a> in <a href="https://www.apartments.com.au/developments/crawley-wa-6009">Crawley</a>, a boutique riverfront development delivered by Edge's in-house construction team.

Over 80 per cent of the 21 apartments, positioned along the Swan River foreshore and parkland, have already been sold prior to completion.

The development draws on the site’s natural setting and the surrounding Art Deco character of Crawley. The design incorporates light-toned brickwork, sculpted curves, and bronze accents at &nbsp;street level, complemented by full-height glazing and moveable screening above.

[smartcode_project:default project_id=138456 project_image_fid=354363]

Each residence has been optimised to capture river and parkland views. Interiors feature natural materials &nbsp;such as stone, timber and bronze detailing, with the inclusion of high-quality finishes throughout.&nbsp;

The residents’ amenities focus on wellbeing and connection. Landscaped gardens, a yoga space, gymnasium and Western Red Cedar–lined sauna provide residents with a balance of recreation and relaxation, while shared lounges, a wine room and private dining area supports social engagement.&nbsp;

[smartcode_project:default project_id=138456 project_image_fid=354361]

The remaining apartments are predominantly three-bedroom layouts, priced from $3.8 million.&nbsp;The development has attracted buyers from Perth’s western suburbs seeking to downsize without compromise, as well as professionals and long-term locals drawn to the riverfront setting.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/wa/how-edge-visionary-living-navigated-the-pandemic-and-came-out-stronger-five-minutes-with-gavin-hawkins">How EDGE Visionary Living navigated the pandemic, and came out stronger: Five minutes with Gavin Hawkins</a>

[smartcode_project_cta:default project_id=138456]

Stephen Taylor

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