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In <a href="https://www.propertyobserver.com.au/residential/land/understanding-land-valuation/2011080851071" title="Understanding land valuation" target="_blank">part one </a>of a two-part series on land valuation, we examined the nuts and bolts of what you need to know. In part two, we talk about the people who are part of the process: valuers and real estate agents.
VALUERS 
Valuations are ordered when a definitive value for a property where finance, settling a dispute, or establishing the value of a deceased estate is required. 
There are many valuation firms that are hired both by buyers and buyers’ agents, vendors and developers and lending institutions, bringing an independent eye that can provide essential knowledge to ensure that all parties can make an informed decision about a particular property on the market and its deemed market value.  The valuation of residential property is a diverse field and includes suburban residential, prestige homes, beachfront dwellings, thousand-lot multi-stage residential subdivisions to smaller scale unit developments and commercial/retail. 
A certified practising valuer will conduct a full inspection of the nominated property, carry out research and analysis into the local market with comparisons to recent sales and submit a detailed report providing information and commentary on issues affecting the current market value of the property. 
Typically reports include:
<ul>
<li>An executive summary detailing the property and business.</li>
<li>A site appraisal specifying;</li>
<li>Land particulars </li>
<li>Improvements </li>
<li>Market comments </li>
<li>Income analysis </li>
<li>Sales evidence </li>
<li>Rationale </li>
<li>A valuation reporting summing up the analysis. </li>
</ul>
There are three ways a valuer may value the subject property:
<ol>
<li>Full value – this involves the valuer undertaking a full inspection of the property, including an internal inspection.</li>
<li>Kerbside – the valuer literally stops outside the property and does not undertake an internal inspection.</li>
<li>Desktop – this involves the valuer collecting comparable sales data based on the description of the property and where no physical site inspection takes place. 
</li>
</ol>
Depending upon who has ordered the valuation determines how they will use it.
For buyers who are not sure if they are paying too much or how much to offer, <a title="Property Checks" href="https://htw.com.au/services/researchcentre.aspx"></a>a pre-purchase valuation will give reassurance about the price and many other aspects of the property before an offer is made.  As a buyer, you can use the valuation to your advantage as a bargaining tool if the valuation comes in lower than the vendor is asking.  You may also be able to do your own research and provide the valuer with comparable sales that are favourable to you.  The valuation may also confirm that what you intend to offer or what the vendor is asking is market value – but it doesn’t hurt to always put in a lower offer – you just never know if the vendor will accept or not. 
When ordering your independent valuation, you may ask for it to be formatted so that it can also be submitted to the bank in their formatted criteria and ask for it to be assigned to say in two bank names, therefore when the time comes for the bank to order a valuation, you have one on file that hopefully matches what you are trying to achieve – lower than market value or at least on contract price.  You may also be able to ask the bank to provide you finance based on the higher valuation, rather than contract price, therefore providing you with a higher loan-to-valuation ratio. 
When selling, present the valuer with information including recent comparable sales and points about your property that presents it in the best light.  Ensure the presentation reflects the price you are trying to achieve, e.g. gardens are manicured, cleaned fixtures and fittings throughout the property, declutter or accessorise fashionably. 
On the flipside, if you want a new valuation on your existing asset base so you can draw upon the equity to further your portfolio, this is when it would be in your interest to get the valuation as high as possible.  
<ul>
<li>For developers and vendors, the report will give them an idea of how to market their property and at what price point.  Too high a price and they won’t get the buyers they require, too low a price and they won’t make the profit margin they projected.  Again, an independent valuation is a tool they can use to provide buyers proof that what they are asking is fair market price.</li>
<li>Lending institutions will always order a valuation when you are taking out a loan for a new purchase or if you want to draw equity from your existing portfolio.  They need to know that the money they are lending you is financially secured by that asset and this will form the basis of their LVR (loan to value ratio) and will also provide them with a realistic sale price should they need to sell the property quickly (normally referred to as a fire sale).</li>
</ul>
Find out which valuers sit on particular banks panels by either asking the bank, broker or asking the valuer themselves.  Also find out which areas they usually value and what types of properties they value.  A bank won’t accept a valuation if the valuation firm is not on their panel.  
REAL ESTATE AGENTS 
A real estate agent has the obligation to get the best price for the vendor and will use databases and their knowledge of the local market and recent sales to provide a “market appraisal” when you wish to sell your property.  These appraisals are intended as a guide only and are not the definitive price which may be achieved for that property. 
Appoint an agent who is acutely familiar with your suburb and who does not work outside the area.  An agent who works outside of the area may result in an appraisal that is too high and not achievable, or too low essentially providing a property below market value. 
Be wary of agents who quote an extremely high price and therefore providing you with an unrealistic expectation of the final sale value.  They may be doing this just to get your business and you may wonder why you do not have any viewings.  Vendors are soon conditioned to lower their asking price to meet the market feedback.  Again, conduct your own due diligence on pricing in your local area. 
On the other hand, agents who value too low not only hurt the vendor with the end result, but can ultimately bring down values of an area if the sale is then used as comparable data with professional valuation firms and professional property databases, such as RP Data. 
As a buyer, using the services of professional database firms and independent valuers as a tool for your negotiation with the vendor and agent, plus finding out the true motivation for that sale (e.g. bought elsewhere, divorce, financial stress) and using it to your advantage, may assist you in saving thousands of dollars and purchasing that property under market value. 
If your offer has been accepted at a particular price and the valuation comes in very low after the initial offer period, I would ask for strong evidence as to why you would continue with the purchase at original agreed price based on the valuation you have received. 
At the end of the day, true market value is achieved when both parties agree on the final sale price and a settlement occurs. 
Although investing can be fun, exhilarating, scary and heart-stopping, it’s still a business and should be treated as such because that investing business could be worth millions.  I myself have called our investing “B’dearys Vision”.  It gives it a name and therefore is treated as a business entity.  Just because you like the tiles in the bathroom or the swimming pool or the colour of the walls does not necessarily make it a great investment, and it may cost you dearly investing with your heart.
While every effort has been made to ensure accuracy of this article, please refer to your state or territory’s Valuer General’s Office or Office of State Revenue for more detailed information and seek independent advice pertaining to a particular purchase.
Swarnie Condon is passionate about property investment with a total of nine properties in her portfolio.  Swarnie is co-author of the book Journeys Along the Property Path and founding partner of<a href="https://www.ipip.com.au" title="Inspirational People in Property" target="_blank"> Inspirational People in Property</a>.  Swarnie provides free mentoring services.
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swarniecondon-aTY2bgqmPh

The people involved in land valuation

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An individual property can be viewed from different perspectives such as home owner, investment or development and therefore the value of that property will be determined accordingly from that perspective. Knowing how and who values your property will assist you in making an informed decision about the buying, selling and holding process. 

There are three main types of valuations: 

<ol start="1">
<li>Valuer-General / Council Valuations</li>
	<li>Certified Valuers / Bank Valuations</li>
	<li>Real Estate Agent Appraisals / Market Value 
</li>
</ol>
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Valuer General/ Council Valuations 

Dependent upon which state or territory you live in, it is usually the role of the Valuer-General to oversee and provide updated land valuations for all properties in a local government area and to maintain complete, accurate and as current as possible valuation rolls for that State or Territory. Valuations are conducted annually in SA, Queensland and ACT, every two years for Victoria, every three years for NSW, WA and NT, every six years in Tasmania with a third of councils every two years. 

The Valuer-General is responsible for:

<ul>
<li>the provision of fair, accurate and consistent land values for rating and taxing purposes</li>
	<li>the determination of compensation following the compulsory acquisition of land</li>
	<li>providing leadership to the valuation industry and profession</li>
	<li>providing statutory valuations as required under the Land Act for that state or territory </li>
</ul>
The results of these valuations are provided to:

<ul>
<li>the Office of State Revenue annually, which manages and determines a landowner's land tax liability. Your principal place of residence is generally exempt from land tax.</li>
	<li>councils and other authorities such as water boards and emergency services as a basis for the levying of rates and taxes.</li>
	<li>departments to determine state land lease rent</li>
	<li>landowners via their notice of valuation, which is issued when their local government area is revalued.</li>
</ul>
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The Register of Land Values contains the following information:

<ol>
<li>the ownership of the land</li>
	<li>the occupation of the land</li>
	<li>the value of the land</li>
	<li>reference to the title of the land</li>
	<li>the location or description of the land</li>
	<li>the area of the land, and</li>
	<li>any other information as required by Valuation of Land Act for that particular state or territory. 
</li>
</ol>
Land values and council rating

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Councils use these land values to assist in the calculation of rates for local residents in one of three ways.

<ul>
<li>A combination of the land value of the property and a fixed amount per property.</li>
	<li>Entirely on the land value of the property.</li>
	<li>Entirely on the land value but subject to a minimum amount. </li>
</ul>
Fluctuations in land values don't necessarily lead to similar changes in rates. Rates depend on each councils rating structure and the limits to increases set by the various state and territory governments. The land value does not generally reflect the full sale price that could be obtained for the property. 

If you want to find out how your rates are calculated, contact your council. 

Land valuation process 

While states and territories differ in their approach and methodology, the general basis is that values are calculated using either the “unimproved land value” or the more common “site value” method. For the purpose of this article, I’ll use the NSW and Queensland methodologies for the explanation of each: 

NSW

<ol>
<li>Values refer to land value only, which does not include the value of your home or other improvements.</li>
	<li>Most land in NSW is valued using mass valuation, where properties are placed together and valued in groups called components. The properties in each component are similar or are likely to change in value in a similar way.</li>
	<li>Within each component, at least one representative property is valued individually each year to measure how much the value has changed from the previous year. The change in value is then applied to all properties within the component to determine their new value.</li>
	<li>Before undertaking valuations, valuers will inspect and analyse a large number of sales in a locality to gain in-depth understanding of what is happening in the real estate market. This information and the valuer’s expertise are then used to value the representative property.</li>
	<li>Where mass valuation is not appropriate, valuers will individually value the property.</li>
	<li>The most direct evidence for assessing land value is to compare the property being valued with the sale price of comparable vacant land sold around the time of the valuation date.</li>
	<li>During the valuation process, the valuer will examine the breadth of the real estate market including both vacant land and improved property sales. Valuers make allowance for the added value of any buildings or other structures on the land.</li>
	<li>Unsuitable sales, for example those between related parties, are not used to determine land values.</li>
	<li>When comparing property sales to the land being valued, the valuer may take a number of factors into consideration, including:</li>
</ol>
<ul>
<li>The location of the land, size and shape</li>
	<li>Soil type and land surface, such as slope</li>
	<li>Town planning controls and constraints on use, such as heritage restrictions</li>
	<li>Nearby development and amenities, such as parks, views, public transport and busy roads.</li>
	<li>Valuations are based on certain assumptions, including the property being vacant. The value of a home or other structures and improvements is not included. However, land improvements remain part of the land value, for example clearing, draining and filling of land. </li>
</ul>
Strata site land values 

<ol>
<li>The Valuer-General is responsible for determining the land value for the whole site of a strata scheme. The valuation will take into consideration the most valuable possible use for the whole site. This may exceed the current level of development on the site.</li>
	<li>The land value for individual strata units for council rating and land tax purposes is calculated using the land value for the whole site of the strata scheme and apportioned based on the unit entitlement listed in the strata plan.</li>
	<li>The Valuer General issues the secretary of the strata plan or the owners’ corporation with a Notice of Valuation showing the land value for the whole site of a strata scheme that will be used for rating purposes.</li>
</ol>
 

Queensland

From May 3 2011, the 58 rateable municipalities in Queensland have used the new site value methodology to value non-rural land and the unimproved value methodology to value rural land. 

Most landowners have seen very little difference in their new valuation as a result of the introduction of site value. Where there have been substantial site works made to land, landowners may see an increase in the value of the land. Approximately 95% of residential land in Queensland has not been significantly affected by the change in valuation methodology. However, the valuation of some residential land may have increased, such as land with water frontage. Other types of land also changed in value to reflect the difference in value between the land in its natural state (unimproved value) and its current state (site value).

For example, industrial estates that have been heavily filled, retained or levelled have seen the value of these improvements included in the land’s value. 

The new site value methodology has resulted in some properties, mainly commercial properties with significant leasing arrangements, having a reduction in their statutory land valuation as a result of the intangible elements no longer being considered in their valuation.

Swarnie Condon is an author of <a href="https://www.ipip.com.au/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Journeys Along the Property Path">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property.

 
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Understanding land valuation

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By the year 2000, we were on the lookout for our next dream home. We looked at several suburbs, but decided we wanted to build. Our focus turned to a new estate at Glenwood in north-west Sydney.
Again, I scoured the Homes Pictorial, which had progressed with the times and the listings were now in colour! We found a block that was 700 square metres and put our $500 holding fee on it. However, it was not all smooth sailing.
The sales agent made an error and got confused with the lot numbers, as there were five vacant lots in a row. The lot that we had decided on had actually already been bought just the day prior. I remember sitting at work and bawling my eyes out – I couldn’t believe it. I yelled and ranted at the agent and I wanted to sue! The principal of the agency was most apologetic and he refunded our money, and our search began again.
It was not long before I spotted another block for $210,000. I asked John to go and have a look, which he did. He took his dad along for assurance. The call in the afternoon said it all: it was ours for $205,000 and John had already put down a deposit.
There had been no discussion with me (you’ll read my payback about non-discussions further in our story) but I assumed that because he and his dad had seen it, it must have been great. In fact, it was a much better position than the block we lost just a couple of weeks earlier. It was meant to be.
It was time to sell our Guildford property to fund the construction of our new dream home. It sold for $218,000. We found a suitable builder (after visiting every single display home I could find) and moved in with my parents for nine months while our dream home was being built. During this time, our second daughter, Tia, was born.
We chose a lovely home from the Henley range of properties. By chance, a week after we signed the building contract, Henley hit the headlines on all the popular current affairs shows with their incredibly poor workmanship. John and I could only look at each other and wonder: what have we done?
Fortunately, we had no problems with <place>Henley</place> and we have a fantastic home that we plan to live in for many years to come.
The facts
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="95">
Purchase price 2001
</td>
<td valign="top" width="95">
Current value 2010
</td>
<td valign="top" width="91">
Rental start
</td>
<td valign="top" width="90">
Rental current
</td>
<td valign="top" width="90">
Yield current
</td>
</tr>
<tr>
<td valign="top" width="95">
$420,000
</td>
<td valign="top" width="95">
$650,000
</td>
<td valign="top" width="91">
N/A
</td>
<td valign="top" width="90">
N/A
</td>
<td valign="top" width="90">
N/A
</td>
</tr>
</tbody></table>
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Missing out on our block was the best thing that ever happened

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It was the height of the boom in 2004, and as we walked our little girls around Glenwood, watching new houses being built, we discussed whether they will ever be able to afford a house when they grow up. In our suburb alone, prices were conservatively in the high $600,000s. During this walk we had a discussion that changed our lives. John knew a fellow policeman who was investing in property – so if they could do it on a policeman’s wage, why couldn’t we?
Not long after this conversation, on my regular train commute to work, my thoughts were consumed with property. I looked up and saw a ‘for sale’ sign on a property that was located literally opposite the Harris Park train station.
When I tried to search for that particular property on the internet, I couldn’t find it, but the first listing that popped up grabbed my attention. It was in dire need of help – bright blue, smoke-grimed walls, crappy carpet and hodge-podge kitchen – and it was cheap at $190,000.
At the time, prime-time TV was all about renovation rescue shows and I was caught up in the hype of it all. I thought, “Let’s go and renovate!” It wasn’t the thought of making lots of money that was driving me – just the idea of renovating.
I just really wanted to buy something and when I viewed the property, I saw the renovation potential. I perused the local newspapers to see how many other properties were on offer in that price range and to see how much a one-bedroom unit rented for. There wasn’t much to go by, so I called the agent to view the property and subsequently made an offer of $180,500, and it was accepted.
Before I put any money down, though, I had to convince John that it was a good buy. He came down and viewed the unit. I don’t think he was that enthused – he knew I just wanted to buy something for the sake of buying something. Still, he gave me the green light. Even my mortgage broker tried to talk me out of it, but I was adamant: this was going to be our first step towards financial freedom through property investing. I just knew it!
So where did we go wrong?
This renovation-rescue, one-bedroom unit was under 50 square metres, which made it more difficult to secure funding. Banks prefer to see properties that are at least 50m2 in size, as it means that a wider pool of people – including singles and couples – could potentially live in the property. We paid approximately $2,500 in lender’s mortgage insurance for the privilege of buying under 50m2. It was also in a 1970s red brick building and we purchased at the top of the <city><place>Sydney</place></city> boom, which crashed all of two months later.
We spent $5,000 on renovations, including replacing carpet, painting, light fittings and kitchen cupboard handles. John’s nightmare renovation task was to the paint the very 70s vermiculite ceiling – as he learnt, that stuff has limitless potential to soak up paint and our money.
As it turned out, it wasn’t the most astute investment decision we could have made. Over the past five years, the property actually decreased in value by about $5,000 – even with the renovations. Only in the past six months have we seen capital growth. But every cloud has a silver lining and in this instance, our mistakes have been softened by the property’s strong performance in the rental market. It’s always had good tenants and it takes care of itself, so we don’t have to think about it. Utopia would be for a developer to knock the whole block down, so there could be further potential there.
The facts
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="95">
Purchase Price 2004
</td>
<td valign="top" width="95">
Current value 2010
</td>
<td valign="top" width="91">
Rental start
</td>
<td valign="top" width="90">
Rental current
</td>
<td valign="top" width="90">
Yield current
</td>
</tr>
<tr>
<td valign="top" width="95">
$180,500
</td>
<td valign="top" width="95">
$200,000
</td>
<td valign="top" width="91">
$150
</td>
<td valign="top" width="90">
$290
</td>
<td valign="top" width="90">
8.35%
</td>
</tr>
</tbody></table>
This is an exerpt from  <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.ipip.com.au/" title="Journeys Along the Property Path" target="_blank">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property. Two of the authors are fighting breast cancer, and IPIP has aligned with the McGrath Foundation to raise money to fund McGrath breast care nurses in communities across Australia and raise awareness of breast cancer, particulary among young women. The <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.facebook.com/inspirationalpeopleinproperties" title="Keep up with the campaign" target="_blank">initiative </a>aims to sell 9,000 books to raise $90,000 to support the McGrath Foundation. 
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How a simple conversation sparked a property addiction

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I bought my second investment property in early 2005. This purchase was a two-bedroom, two-bathroom apartment bought off the plan at the Surfair Resort on <placename>Marcoola</placename><placetype>Beach</placetype> on the Sunshine Coast in <state><place>Queensland</place></state>.
Friends recommended that we go to a development group, and we didn’t really know what we were doing, but we trusted in their recommendation as they had bought several properties through this same group.
The absolute beachfront, brand-new complex promised a 7% rental guarantee for the first two years, so we placed our deposit down and waited for it to be constructed. The apartment was $301,000, which included a furniture package and car space. We haven’t done too badly with this investment overall in terms of capital growth, but the purchase process was fraught with dramas, basically due to our lack of knowledge and the fact that we didn’t know what to ask.
Firstly, we trusted the group marketing the property. We failed to conduct proper due diligence, and it wasn’t until after settlement that we discovered the exorbitant management fees of 49.5%.   Being a real resort for holidaymakers, they charge these high fees in order to cover their marketing and management expenses.
Through this experience we learnt how chilling it can be to trust these property marketers. About a week before settlement, they called and casually asked what we had borrowed and what money we had for settlement.   We assumed that this would have been the balance of the purchase price less deposit, so we were shocked to hear them say, “Oh no, the money you put down already was purely for the builder to fund the building of the complex. We still need you to come up with the full purchase price plus costs, and the deposit will be refunded after settlement.”
This was incredibly dodgy as at no time was this ever mentioned to us until suddenly and very casually, a week before settlement.
In any case, our brilliant mortgage broker did what she had to do and in five days, she was able to come up with the extra funds we required. I called the property marketers office to have my say, only to be greeted by the receptionist. I politely told her that my comments were not directed to her personally but “#?A$%^&amp;!@” and could she please pass those comments on.
I later found out that this marketer had said to my broker that I was the client bitch from hell – what’s that saying about the pot and the kettle?! In any event, we settled and we haven’t dealt with those people ever again.
After the first year, it was time to prepare our tax and we thought we would be covered with our 7% rental guarantee, but this was not the case. We were advised that we had to deduct the cost of the furniture and the GST from the purchase price – or something to that effect! Therefore the 7% guarantee was actually calculated on $265,000, not $301,000 using the gross rental amount.
Also, because the apartment is part of the rental pool, we only get the seasonal rental, so it’s not exactly great on the cash flow. We do have the option of permanent rental, but the rental pool option allows us to stay there on holidays for free, so it’s not all bad. We let our friends stay there so they too can enjoy the resort and have a great holiday.
The Facts
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="84" valign="top">
Purchase Price 2005
</td>
<td width="82" valign="top">
Current Value 2010
</td>
<td width="94" valign="top">
Rental Start
</td>
<td width="94" valign="top">
Rental Current
</td>
<td width="75" valign="top">
Yield Current
</td>
</tr>
<tr>
<td width="84" valign="top">
$301,000
</td>
<td width="82" valign="top">
$350,000
</td>
<td width="94" valign="top">
N/A - part of rental pool
</td>
<td width="94" valign="top">
N/A - part of rental pool
</td>
<td width="75" valign="top">
Differs each year
</td>
</tr>
</tbody></table>
 
This is an exerpt from  <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.ipip.com.au" title="Journeys Along the Property Path" target="_blank">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property. Two of the authors are fighting against breast cancer, and IPIP has aligned with the McGrath Foundation to raise money to fund McGrath breast care nurses in communities across Australia and raise awareness of breast cancer, particulary among young women. The <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.facebook.com/inspirationalpeopleinproperties" title="Keep up with the campaign" target="_blank">initiative </a>aims to sell 9,000 books in nine days to raise $90,000 to support the McGrath Foundation.
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Our first resort investment was not all smooth sailing

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By April 2008, the focus seemed to be on the market of Melbourne, which was starting to come out of doldrums after the overstocked Docklands area had been absorbed by immigration, migration and investors.
It seemed to me that although I couldn’t afford absolute beachfront near Melbourne itself, maybe if I looked down the peninsula town by town, I would find something suitable. So that’s exactly what I did with my research: seaside suburb by seaside suburb, I scanned the listings.
Eventually I came across the suburb of Seaford. I found a newly constructed townhouse and encouraged my husband, John, to fly down for a look. We had bought all of our other properties (apart from Harris Park) sight unseen. This time, I can’t really explain why, I just didn’t have the confidence to buy without viewing the townhouse and surrounding areas first.
The townhouse turned out to be quite small compared with the pictures on the internet, and John wasn’t keen to buy it. As he was staying overnight, he had some time to expand his search and he drove a little further down to the main hub of beachside Frankston. He thought this was probably better suited for investment.
After many weeks of searching and chatting with agents, putting in offers and not really getting anywhere, I was becoming obsessed with buying something in Frankston. All the talk suggested it was good to buy with the infrastructure and freeway plans.
I would surf realestate.com.au and domain.com.au every half hour to see if a new listing had come up. Finally, one Saturday afternoon, I decided to look one last time before I went off to have a nanna nap.
A new listing! The property looked fairly new and not that bad looking, located near Monash University and reasonably priced at $285,000.
I quickly called out to John and with the amazing power of Google Earth, we looked at the positioning of the property and were just amazed. It was directly across the road from Monash – and I mean, you literally walk out of the driveway and across the road and presto, you are at the university.   The next block over from the university was the hospital and one street away was a train station, which was only one stop from Frankston train station.
We called the agent, who happened to be in the car on his way to the vendor’s house to pick up the paperwork to list the property. The listing was so brand-new that the vendor hadn’t even officially signed the paperwork with the agent yet.
As we sat on the phone with the laptop in front us, with Google Earth showing us the highlights of Frankston, we probed the agent as to what that building was, what that large parcel of land was, asking how far away this and that was. John had a vague idea of some of the area, but looking from the heavens above gave a whole new perspective.
It turned out that this four-year-old, three-bedroom townhouse-style unit had been recently fully furnished with student desks, new mattresses, outdoor furniture and all that three young students could want or need. They were renting it on three separate leases, meaning the rent was great at $375 per week.
We looked at each other and covered the phone. “What do you think?” I asked John, “Should we put in an offer?” We shrugged and thought what the heck, so we offered $275,000. The agent couldn’t believe it – he was literally pulling into the driveway of the vendor’s house and wasn’t convinced we were serious. An hour-old listing and a 15-minute conversation with a buyer in another state and he had an offer on the table and was five feet away from the vendor’s front door.
I couldn’t stand it, it was so exciting and nerve-wracking at the same time. A few minutes later, the agent came back, our offer declined, so we raised our offer to $280,000.   After that I had to go next door for the comfort of neighbours and left the phone with John. Ten minutes later he came in and said it was ours at $282,500. It wasn’t much off the sale price, but it seemed like an opportunity and there was no time like the present to buy.
We were flying down in a few weeks’ time for a property conference in Melbourne, so we used this opportunity to complete a pre-settlement inspection. We met our lovely Chinese students, all studying to be accountants. They could barely utter a word of English, but I’m sure their studies are more important than partying.
The only downfall with student accommodation can be the potential lengthy vacancy periods at the end of a school year. In our second year of ownership, this has proved to be the case as we had two out of the three rooms vacant. It took nearly 10 weeks to have all three rooms tenanted, ready for the new school year.
 
The Facts
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="131">
Purchase Price 2008
</td>
<td valign="top" width="131">
Current Value 2010
</td>
<td valign="top" width="131">
Rental Start
</td>
<td valign="top" width="131">
Rental Current
</td>
<td valign="top" width="131">
Yield Current
</td>
</tr>
<tr>
<td valign="top" width="131">
$282,500
</td>
<td valign="top" width="131">
$320,000
</td>
<td valign="top" width="131">
$375
</td>
<td valign="top" width="131">
$405
</td>
<td valign="top" width="131">
7.45%
</td>
</tr>
</tbody></table>
 
This is an exerpt from  <a target="_blank" title="Journeys Along the Property Path" href="https://www.ipip.com.au" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property. Two of the authors are fighting against breast cancer, and IPIP has aligned with the McGrath Foundation to raise money to fund McGrath breast care nurses in communities across Australia and raise awareness of breast cancer, particulary among young women. The <a target="_blank" title="Keep up with the campaign" href="https://www.facebook.com/inspirationalpeopleinproperties" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">initiative </a>aims to sell 9,000 books in nine days to raise $90,000 to support the McGrath Foundation.
</body></html>

Buying a student investment property in 10 minutes

<html><body>
By 2006, I was really starting to get into the whole property investing thing. I was constantly on the internet looking, looking, looking and slowly but surely, the addiction was starting to surge through my veins.
I researched Mount Isa for about three months, watching the market to really see how it performed. I’d started to educate myself through reading property magazines, and I began to really look at investing differently, but I still had a long way to go in terms of my knowledge and understanding what it all meant.
I started to call agents to chat to them about the area and get an idea of where prices were heading. One day, I spied a lovely duplex on a real-estate website: it was fully furnished with renovated bathrooms and kitchens, and both sides of the duplex were tenanted. It was on a large 920-square-metre block, and it was relatively affordable at $240,000.
I spoke with the agent at length, and we chatted about the price.  After our conversation, I sent an email to the agent with my offer –which was slightly less than what we discussed on the phone – at $233,500, and it was accepted straight away. I couldn’t believe it. I threw my hands over my face and had an “OMG!” moment.
So, what was the drama about this purchase? Well, it also happened to be the case that I had quit my job that morning after a disastrous five-month temp job and my husband, John, was away on business. He wasn’t too happy and needless to say, I’m now banned from putting in offers without him being in the room.
I really didn’t have to move forward with this purchase, as no money had actually changed hands and no contracts had been signed, but I convinced John that the dual-income property was a good buy, as it had a rental yield of just over 9%. We needed a balance for our negative cash flow position, so this was perfect.
Once a building inspection was completed, we found a few things that needed to be fixed, so we negotiated another $3,000 off the price.
I recall the agent that I dealt with said just before my offer “'I think you’ve missed the boom, love,” and I said: 'Oh, I don’t think so!"  I could see that Mount Isa would continue to boom for some time, and so far, the increase in growth in a relatively short time and the rental return has been this property’s biggest asset.
The Facts
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="187" valign="top">
Purchase Price 2006
</td>
<td width="123" valign="top">
Current Value 2010
</td>
<td width="104" valign="top">
Rental Start
</td>
<td width="112" valign="top">
Rental Current
</td>
<td width="131" valign="top">
Yield Current
</td>
</tr>
<tr>
<td width="187" valign="top">
$230,500
</td>
<td width="123" valign="top">
$360,000
</td>
<td width="104" valign="top">
$410
</td>
<td width="112" valign="top">
$655
</td>
<td width="131" valign="top">
14.77%
</td>
</tr>
</tbody></table>
 
On our way to a holiday in Cairns, just one week before settlement, John took a side trip flight to Mount Isa to check out the duplex. Luckily, he was happy with what he saw.
However, this is our problem-child property, and we have experienced the full gamut of issues, including residents not paying rent and skipping off in the middle of the night; storm damage to the property that required extensive repairs of approximately $10,000; tenants that we suspect have had “special dealings” in the backyard of maybe an organic nature; and both air-conditioning units blowing up within a week of each other, which required complete replacement of a new system to the tune of $18,500.
Also, the initial real estate agent’s dodgy pest inspection report failed to reveal that there were termites! Slugged with a repair bill of $3,500 one month after settlement, this was an expensive mistake to make, as we could have uncovered the damage if we had done our own inspection.
This is where I can absolutely recommend that landlord’s insurance comes into play, because we’ve made five claims already. Our property manager, Tracey Lowe at RealWay Property in Mount Isa, has been invaluable in helping us manage this dear property and its many incidents – we love her. To show her that we do appreciate her work, I’ve sent her flowers and a bottle of champers. She takes good care of us.
We’ve also had a few offers to purchase the property from us. Once, the real-estate agent went down to give me a market appraisal and she came back saying she actually couldn’t give me a fair appraisal because she wanted to buy it off me for about $300,000. We declined.
The second offer came from the two tenants that were renting one side of the duplex, who asked if we were interested in purchasing, but we also declined. We know that the rental return will continue to grow and help our portfolio balance out and our investing strategy is definitely geared for the long term.
This is an exerpt from  <a target="_blank" title="Journeys Along the Property Path" href="https://www.ipip.com.au">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property. Two of the authors are fighting against breast cancer, and IPIP has aligned with the McGrath Foundation to raise money to fund McGrath breast care nurses in communities across Australia and raise awareness of breast cancer, particulary among young women. The <a target="_blank" title="Keep up with the campaign" href="https://www.facebook.com/inspirationalpeopleinproperties">initiative </a>aims to sell 9,000 books in nine days to raise $90,000 to support the McGrath Foundation.
</body></html>

There's nothing like your first problem-child investment

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

Swarnie Condon

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