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Queensland’s new building industry watchdog “represents the start of the most significant reform in the way the industry is regulated in more than 20 years,’’ according to Housing and Public Works Minister Tim Mander. 

The Queensland Building and Construction Commission (QBCC) will begin work next month. Its job is to implement the government’s 10 point action plan to overhaul building regulations and drive growth and development in the industry, one of the largest employers in the state. 

It will replace the previous Building Services Authority.

“The construction industry is one of the four pillars of the Queensland economy that we promised Queenslanders we would grow,” Mander said.

“This is why we need to have the best building regulator in the country.

“We have appointed people of the highest calibre to the board, people who come with extensive experience in the legal, financial and insurance sectors, as well as the building and construction industry.

“Board members have been selected on their previous and current board experience, as well as their business skills and proven ability to drive reform.

“The QBCC will be responsible for licensing, dispute resolution and the Home Warranty Scheme, as well as taking disciplinary action against contractors for defective work.’’
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a> 

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Queensland's new building industry watchdog to start work next month

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Tender prices and construction industry confidence are on the rise across the eastern seaboard and in Perth, according to national quantity surveying firm WT Partnership. And, it says, most markets are “showing significant improvement in sentiment and activity over the last three months.’’ 
The firm’s quarterly market report says the change in federal government in September appears to have renewed optimism in the construction sector in most states. “Although both federal and state government spending remains tight, private investment in both building and infrastructure looks set to take up capacity in these sectors,” it says. 
WT Partnership expects tendering nationally to remain tight for the next six-12 months as contractors look to fill their order books into 2014. “The construction market appears to have turned with consultants and contractors expecting improved activity in 2014.”
In most states, WT Partnership offices are finding that large residential projects, especially at the lower end in investment grade and first homebuyer products, are boosting the overall market. This renewed activity is not likely to impact upon residential construction costs overall, however, it is expected that in some trades, labour costs will increase as skill shortages kick in.
Subject to the strength or decline in value of the dollar, WT Partnership is expecting to see national average tender price escalation in 2014 trending below 2.0% with an increase to 2.5% for 2015 and 2016.  Individual state predictions vary widely.  
Highlights from the report include:
New South Wales
“Across NSW, the building industry shows signs of improvement, with housing construction increasing for the first time in three years. Sydney CBD rental markets and residential sales volumes have continued to increase in the quarter,” said Nick Deeks, WT Partnership’s national managing director. He says the planned $30 billion of infrastructure to be completed over the next seven years, supported by the state and federal governments, is buoying sentiment and supporting costs.  Tendering remains competitive.  
“We are projecting average cost escalation of 1.25% for 2013, 3.0% for 2014 and 4.0% for 2015 and 2016.”
Queensland
“Tender prices are on the move in south-east Queensland with the recent uplift in residential, commercial and retail construction activity. It is likely that the extremely competitive pricing by major builders over recent years will ease and we will see escalation rising from the current 2.0% to 4%-plus per annum in 2015-16,” said Jason Thornley, Queensland director, WT Partnership. 
Victoria
Confidence in the Victorian construction sector continues to improve as overseas investment in major residential projects continues to boost the market. “The state government’s commitment to a number of major infrastructure projects is improving confidence as engineers and contractors position themselves for demand,” said James Ford, Victorian director, WT Partnership.   
Adelaide
“In the past 24 months Adelaide has had one of the deepest and most rapid falls in construction pricing throughout the country. During last year, tender return prices fell by as much as 20%,” writes Sam Paddick, South Australia director, WT Partnership.  There are some signs that developers are starting to respond to these low levels of pricing, with retail the first to move forward with projects, he said. 
Western Australia
“The continued slowdown in the resources sector in Western Australia, coupled with the recent credit rating downgrade of the state’s finances by Standard and Poor’s, has eroded market confidence,” writes Scott Parrott, WA director, WT Partnership.  ‘’Despite this weakness we still expect strong activity in various sectors over the coming year. Retail investment appears to have gained momentum in WA, with a considerable amount of work being priced or in the pipeline.’’ 
Australian Capital Territory
“In the ACT, following the recent change of government, there is concern over economic conditions and confidence remains suppressed,” writes James Osenton, ACT director, WT Partnership. The contractor environment continues to be lacklustre. 
Tasmania
The Tasmanian economy continues to struggle in the face of dramatic cuts to GST revenue, high unemployment and low population growth, however, recent state and federal government funding announcements have buoyed sentiment in the construction sector.  Tender margins are still extremely tight.
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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Construction industry showing "significant improvement" in sentiment and activity since federal election

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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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The Queensland residential house market is on the move with sales growing and prices firming in many areas, according to the Real Estate Institute of Queensland.
Further evidence of recovery is in reduced vendor discounts in most regions and the rapidly falling days-on-market. For example, in Brisbane, the average vendor discount has fallen over the past year from 7.9% to 6.5%. Likewise, days-on-market has reduced from 90 days to 78.
The REIQ September Quarter Median House Price Report, released yesterday, found that preliminary numbers of house sales across the state grew by 9% over the September quarter. Quarterly sales growth was recorded across south-east Queensland as well as in far north Queensland.
However, the run of good times for mining districts appears to be slowing with quarterly sales volumes falling in Central Queensland and associated regions over the past year.
REIQ CEO Anton Kardash said that, as the Queensland market had been posting promising results for the past year, there was now no doubt that most of the market was well into a growth phase.
“REIQ accredited agents had been waiting a long time – nearly five years in some areas – to finally experience some good times again,” he said.
“Unfortunately, the Queensland market has never been consistent across the board. We often experience phases of recovery and growth in some regions, while others simultaneously experience patches of more stable activity.
“Of course, our mining districts were performing exceptionally while the majority of the state was in the doldrums not so long ago. It’s good to see that we all still get a turn at the good times at some point.”
But Kardash said that, unlike Sydney and Melbourne, which appeared to be experiencing levels of relatively unsustainable price growth, the Queensland market was taking a more measured approach.
“The majority of our regions experienced mostly unchanged median prices over the September quarter, although over the year we are starting to see some healthy median increases,” he said.
“It’s also important to remember that house prices in Queensland still remain slightly below their most recent peak, so we are not talking about significant gains taking place over short timeframes.
“Given the price increases in the southern states, there is no doubt that Queensland remains one of the most affordable places to buy or invest in property. With this in mind, we are likely to see an increase in interstate investors and migrants taking advantage of these excellent opportunities.”
Over the quarter there was an increase in sales for under $350,000 across the state – potentially to investors – which has temporarily impacted some median house prices.
According to the report, the median house price in Brisbane rose 0.6% to $530,000 over the quarter. Over the year ending September, Brisbane’s median house price rose 3.4%. The preliminary numbers of house sales in Brisbane rose 13% over the quarter and were up 18% over the year.
The median house price on the Gold Coast dipped by 0.6% over the quarter but increased 4.8% over the year. Likewise, on the Sunshine Coast, the median house price fell 1.3% over the quarter but grew 2.3% over the year. Both regions had more house sales – up 12% and 10% respectively over the quarter.
The Cairns property market continued its recovery over the September quarter with the numbers of house sales increasing 10%. Over the year, sales numbers rose by 7%. Median house prices dipped 1.8% over the quarter but rose 1.1% over the year.
The Gladstone, Mackay and Townsville markets had fewer house sales over the year ending September. But Mackay posted a 5% increase in activity over the quarter, as well as a steady rise in medians.
The heat in the Gladstone market continues to dissipate with its median house price dropping 8.5% in the quarter to $437,000. More affordable house prices, however, are likely to attract buyers back into the market in 2014.
<a href="mailto:staylor@propertyobserver.com.au" target="_blank">staylor@propertyobserver.com.au</a>
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Queensland residential market back into growth phase: REIQ

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It’s logical, really. To do business with someone – such as selling them a property – you have to first attract their attention, get on their wavelength and show them what you have to offer, and then close the deal.
It’s no use if you can’t be seen, or can’t communicate. No one’s going to come looking for you – you have to be out there on show – and, hopefully, in demand.
Social media has made huge inroads by exponentially broadening the marketplace, and helping buyers and sellers from all countries get in touch and do deals.
But what if you are trying to sell into a huge market – such as China – where their versions of social media are different to ours? To show them your listings you have to do things their way. And our local social media giant – Facebook – is not the lingua franca over there.
According to China Internet Watch the giant local internet portal, QZone, has 603 million users – far more than Facebook – making it the logical place to focus your sales offerings.
In a new e-book, ‘7 Ways to Improve your International Social Media Marketing’ – <a href="https://www.juwai.com/" target="_blank">Juwai.com</a>’s CEO Andrew Taylor says: “You might use Facebook to keep up with your friends because most of them are on it.
“To reach prospects, however, you have to go to the social networks they prefer. You might be surprised how limited the international reach of networks like Facebook and Twitter are in other countries.”
According to Taylor, Facebook has 50% penetration in the United States, and the world average for Facebook penetration is only 12.1%. In the Middle East and Asia, both major sources of wealthy international buyers, Facebook’s penetration is only 5% and 9%, respectively.
In Russia, social network VK has 100 million active users - more than Facebook in that country, he says.
The Juwai.com Chinese property listing site has tips on how agents can best use social media to reach international buyers. “Once you have a connection with these buyers, you can pull them forward into your marketing process, bringing them to your website, or getting them to contact you,’’ Taylor says.
He believes buyers who find and contact sellers directly via social media tend to be closer to purchasing than other prospects, and that international buyers - making up an increasingly important share of real estate transactions - are not just targeting the traditional cities like New York, London and Sydney, either.
“The value of using a smart international social media strategy is that you attract and connect with buyers from other countries, so that means more reads and ultimately more sales.
“It also differentiates you from other agents and it becomes a powerful listing tool.”
<a href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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How to target foreign buyers with social media

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The Brisbane residential property market is strengthening – especially in the sub-$1 million price bracket, according to a leading agent.  
More than $80 million worth of residential property was sold in transactions negotiated by just two of Place real estate’s offices – in the city’s east and inner north – in October, making it a record month for sales.  
And, while the ‘heat’ is in the sub-$1 million price bracket in the Brisbane residential market, the top end is experiencing its best conditions in more than three years.  
Damien Hackett, Place CEO, said this showed the city’s residential property market was ‘’firmly on the way up’’, and that the data demonstrated that the sub-$1 million price bracket was where most of activity was taking place.  
“Greater than 80% of the 97 properties sold (were) in this category, which demonstrates it is undoubtedly leading the recovery in Brisbane’s residential market,” he said.  
“Fifty-two per cent of homes sold by Place across these two offices during the month of October were priced between $600,000 and $1 million, while a further 28% were under $600,000.  
“With only 17% of the houses priced over $1 million, it is evident buyers are most active in the more affordable price brackets - which makes sense.  
“These buyers are increasingly confident in the economy and their economic circumstances – their employment is relatively secure and their salaries are stable, and this, combined with record low interest rates, is propelling them into the market.”  
In addition to the strong sales figures recorded by Place in the inner east and inner north, the real estate agency has also found that time on the market for listed properties has significantly reduced, and their auction clearance rate has also increased.  
“The number of days homes in the sub-$1 million price bracket were sitting on the market in October was 41 - far less than the average for the six-month period from January to June, which was 68,” Hackett said.  
“Meanwhile, the clearance rate for auctions between the beginning of October and now is 81%, which is very high.  
“Essentially, the strength in the market that we are witnessing in Brisbane is contrary to recent reports that suggest the recovery is only taking place in Sydney. The Brisbane market is exceptionally strong, and we expect to see it only improve from hereon in, with all the fundamentals lined up for a solid 2014.”  
Hackett said the Brisbane market was benefitting from pent up buyer demand that has been building since the city’s floods in 2011.  
“Buyers were extremely cautious after that, and sellers were also reluctant to put their properties up for sale, fearing they would be sold under value, so, across the board, activity was subdued,” he said.  
“That period of uncertainty is now behind us. We have been seeing a gradual improvement in the market since it bottomed in 2011, but now it is clear that it has well and truly turned a corner.  
“In line with the rise in activity in the sub-$1 million sector, we are actually seeing values begin to rise again, which is extremely positive.”  
Recent sales in the sub-$1 million price bracket reflecting the recovery in the market include:
<ul>
<li>
A 3-bedroom, 2-bathroom house in Cannon Hill – The comparable sales for this property were between $470,000 and $499,000 and it sold within the first four days of being on the market for $550,000.
</li>
<li>
A 2-bathroom, 1-bedroom cottage in Petrie Terrace – Two years ago it failed to sell for $540,000 yet recently it sold for $590,000 within the first week of being listed.
</li>
<li>
A 3-bedroom, 1-bathroom house in East Brisbane – This property was bought for $620,000 last year and, after some minor improvements, it sold for $730,000 this year in a very short time frame.
</li>
</ul>
Hackett said that while the ‘heat’ was in the sub-$1 million price bracket in the Brisbane residential market, the top end was currently experiencing its best conditions in more than three years.  
“There is activity in the $1 million-plus price bracket and stock is turning over – we have seen a number of sales even in the $4 million-$6 million dollar range,” he said.  
“But, despite the rise in activity in this sector, so far we have seen limited growth in values for top-end properties. The market is starting to move in this regard, but greater price growth will come in time when the global economy – including in Australia and elsewhere - is more stable.”
     
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Brisbane residential market kicking off

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The Cape York Peninsula will be ‘open for business’ in varying degrees under the Queensland government’s latest draft plan.
Deputy Premier and Minister for State Development, Infrastructure and Planning, Jeff Seeney, said the draft Cape York Regional Plan“delivers on the Newman government’s commitment to balance economic development opportunities such as agriculture and mining, with protection of the regions’ significant natural and cultural resources.’’
It proposes three land-use classifications - general use areas, strategic environmental areas and national parks – all of which allow some forms of economic development.
“This draft plan delivers on our vision to provide indigenous communities on Cape York the opportunity to create a sound economic future, while protecting the environment,” Seeney said.
“Labor locked up the Cape with its Wild Rivers Act, but the Newman government is taking a responsible approach to planning that encourages appropriate resources sector growth and co-existence with existing land uses.’’
Seeney said Labor was “good at creating emotively-named Acts that won them green preferences but delivered precious little legal protection from inappropriate development.’’
Under the draft plan 32% of the cape would be preserved in strategic environmental areas, including the Wenlock River and Steve Irwin Wildlife Reserve that will be protected from mining – but not business activities “where it can be demonstrated that the development outcome does not present risk of irreversible or widespread impacts to the ecological integrity of the significant biodiversity in these areas. Activities that risk such impacts will not be allowed.’’
Seeney said 53% of the region would be designated General Use Areas available for “responsible economic development assessed under the Environmental Protection Act 1994 and the Sustainable Planning Act 2009.’’
Under the plan, general use areas will prioritise economic development activities, including agriculture, tourism and resource activities, “while recognising that site-specific environmental and cultural values remain important considerations in any development/resource proposal.’’
Strategic Environmental Areas are those containing ‘’regionally significant values for biodiversity, water catchments and ecological function – such as the Steve Irwin Wildlife Reserve.’’
National Parks are being recognised for their protection of the region’s natural and cultural resources. “However, these areas are also recognised as not being ‘closed’ to appropriate economic opportunities,’’ the plan says. “Development and activities in national parks may be facilitated where they are ecologically sustainable activities that protect an area’s natural condition and values.’’
Seeney’s draft plan also identifies priority living areas and priority agricultural areas.
“The priority living areas will provide greater certainty for investment and growth in regional towns by setting aside an area in which settlement is the priority land use,” he said.
In riority agricultural areas, the plan says specific land uses will be given priority over any other proposed land use “to ensure this high-value agricultural land use is not threatened by developments, particularly resource projects.”
“As with our other regional plans, we are giving local communities greater control of their own economic future, and councils will be able to determine the appropriateness of any potential resource activity within PLAs,” Seeney said.
The government says the draft plan has been developed in consultation with indigenous groups.  An 80-day consultation period from November 25 to March 25 will allow further community input. 
To view the draft Cape York Regional Plan and to find out how to make a submission, visit <a target="_blank" href="https://www.dsdip.qld.gov.au/cape-york">www.dsdip.qld.gov.au/cape-york</a>
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
 
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Queensland government sets sights on Cape York

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About half of all four- and five-year fixed rate home loans - and more than a third of three-year fixed rate home loans - have had their rates adjusted upwards in the past two months, according to financial comparison website RateCity.  
“The fact that a growing number of institutions are increasing their rates on fixed home loans shows where they think the market might be heading,’’ CEO Alex Parsons says.  
He points out that:  
<ul>
<li>
Since early September, 188 fixed home loans have had rate hikes – including 88 in the past fortnight - by a maximum of 0.55%.
</li>
<li>
The trend is for longer fixed rates drifting up.
</li>
<li>
Competition remains high among one- and two-year fixed home loans, with rates starting from 4.29% fixed for one year.
</li>
</ul>
The news has prompted RateCity to urge borrowers to prepare now for higher rates.
“Movements in fixed rates are common and based on a number of variables, but the trend is definitely to longer term rates drifting up,” Parsons said.  
In comparison, shorter term fixed rates remain largely unchanged, or even fell slightly in recent weeks, with one-year fixed rates as low as 4.29%.  
“We have seen a lot of competition in the shorter term fixed rates. While they are also subject to the same market forces as longer terms, they’re a lower-risk way for institutions to offer hot rates to attract new customers,” he said.  
Fixing can be an attractive option for borrowers because it offers repayment security, making it easier to budget. But they aren’t as flexible, which can be a drawback. Also, some lenders make it harder for borrowers to make extra repayments as a way of building a repayment buffer. And others charge big fees for exiting the loan before the end of the fixed term.
Another key area to watch out for is the interest rate to which fixed loans revert once the set period is over, said Parsons.  
“Most fixed rates revert to a variable rate option at the end of the fixed period, which, depending on the rate cycle, could be more than 1% higher,’’ he said. “This can mean having to fork out thousands of dollars more per year to service the same loan.  
“Borrowers should prepare for the eventuality of higher interest rates in the future and make sure they can comfortably afford to service the loan if rates increase to the historical average of around 7% or even higher.”  
For example, a 0.25% rate rise would increase the first 12 months’ repayments by $540 (or $45 per month) for a borrower with a $300,000 home loan and paying the basic variable rate of 5.19%.  
But, if rates were to return to their historical average of 7%, the same borrower would have to find an extra $333 a month, or $3996 a year.  
“If borrowers aren’t sure whether they want to fix or not, they do have the option of splitting their loan between fixed and variable – so they have the best of both worlds.”    
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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Fixed rates set to rise further in November: Rate City

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Queensland will “market its modern mining and resources sector to the world” through a new spatial data and information online tool called Mines Globe.
It will provide geophysical survey information and the details of historical exploration permits and show the location of all current exploration and production permits, mining areas and boundaries, Key Resource Areas and infrastructure, such as pipelines and facilities.
 
“Mines Globe is an easy to use Google Earth-based application containing a goldmine of information about the resources industry, one of the four pillars of the Queensland economy,’’ Premier Campbell Newman said at the launch.
“Never before has Queensland, or the world, seen such detailed and comprehensive data in one place, that is freely available to students and the general public,” he said.
“Landholders and companies have often encountered red tape and roadblocks in trying to source this valuable data.
“Now, with this significant development, everyone has access at the click of a mouse to more than 60 layers of detailed information about the state’s resources sector in all its elements: coal and minerals, petroleum and gas, quarries and geothermal activity.
Natural Resources and Mines Minister Andrew Cripps said this was the first time all this data had been collated on the one site. “This is the easiest and most accessible mining information data ever delivered to the public and it’s being made available at no cost,” he said. 
“Mines Globe will open up data about the resources sector for use by property owners, community groups, educational institutions, businesses, resource companies, investors and anyone else interested in researching this important pillar of the Queensland economy.”
The project was developed by the Land and Spatial Information Unit of the Department of Natural Resources and Mines and you can see it <a target="_blank" href="/news">here</a>. 
staylor@propertyobserver.com.au
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The map all Queensland mining town investors should see

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The property market is soaring in Miami, with the median house price rising almost 19% since this time last year.

In fact, October marked the 23rd consecutive month where Florida’s largest city’s house prices appreciated compared to the year-before figures.

A report from the 30,000-member Miami Association of Realtors says the median sales price for a Miami home in October was $220,000 - up 18.9% compared to $185,000 during the same period last year.

Median condominium prices also showed double-digit appreciation, with the $170,000 median up 17.2% on last year’s $145,000.
“This is a remarkable sign of the vitality and strength of South Florida’s real estate market,” said association chairman Natascha Tello. “It’s a reflection of increased demand from buyers around the world, creating a great opportunity for sellers.”

Average sales prices also had double-digit growth. The average for a family home in October was $421,546 - up 29.9% on the $324,611 figure from last year. Similarly, average condo prices rose 11.8% to $296,568. Last year it was $265,225.
Overall, home and condo sales had a modest single-digit decline in October compared to last year’s figures, but remained strong relative to historical averages and performance.

While traditional sales showed strong gains, short sales greatly declined due primarily to the government shutdown delaying transactions requiring tax return verifications, Tello said. Delays in FHA funding and other government-related factors also contributed to fewer closings in October.
REOs and short sales are forms of distressed sales.

Last month, 1,060 homes were sold in Miami – a decrease of 6.5% on the 1,134 in October 2012. The figure was similar to September’s sales when 1,108 - 48 fewer - homes were sold.
Condo sales were strong in October, with 1,416 sold - a 1.2% decrease on a year-ago; they were 4.7% greater than September’s condo sales figures of 1,352.

Double-digit growth in traditional sales
Market share and number of traditional sales continued to grow in October compared to a year-ago, Tello said. Of the 1,060 homes sold last month, 641 (60.5%) were traditional sales, while REO and short sales accounted for 20.8% and 18.8%.

In October 2012 they accounted for half (49.8%) of sales and REO and short sales were 23.1% and 27%, respectively.

Tello said traditional sales had experienced “significant double-digit growth’’ at 13.5% relative to last year. REO and short sales fell by 16% and 35.2%, respectively.
Condo sales saw similar increases last month. Of the 1,416 sales in Miami in October, 889 (62.8%) were traditional sales - up nearly 8% - compared to the same period in 2012. Then, traditional condo sales were 54.9% of all condo transactions. REO and short sales accounted for 24.1% and 13.1%, respectively, of total sales last month.

“The double-digit growth in traditional real estate sales is a sign of continued strength in Miami’s real estate market,” said the association’s residential president Fernando Martinez.

“Moreover, the significant growth in cash sales shows that Miami is the destination of choice for international buyers, who continue to play a major role in the local market.”
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
 

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Miami property market rises nearly 19% in one year

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Stephen Taylor

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