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There have been few Google searches for the term “first home buyer” over the past few years with that segment of buyers increasingly dropping out of the market.
<img width="470" height="196" src="/images/stories/2014/02/28/fhb-analysis-chart-feb-28.gif" alt="fhb-analysis-chart-feb-28"> 
Plotting Google searches on the term “first home buyer” compared with Australian Bureau of Statistics data on the proportion of home mortgages taken out by first-time buyers shows a fall in interest in the search term corresponding to the drop in buyers. Related phrases such as first home owner grant yield similar results.
The peak in first home buyer activity in 2009 was preceded by a clear spike in internet searches on the subject.
There was a minor lift in the number of searches on first home buyers around mid-2012, in line with a slight lift in buyer numbers, but aside from that blip, the term has been as absent from Google searches as the buyers have been from the market.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
                                     
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Amount of first home buyers searches dropping in more ways than one

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Last December, the Financial Services Inquiry’s final report <a href="https://fsi.gov.au/publications/final-report/chapter-1/direct-borrowing/" target="_blank">recommended a ban on borrowing to inves</a>t in property through self-managed superannuation.<a href="https://fsi.gov.au/publications/final-report/chapter-1/direct-borrowing/"> </a>
Among its 44 recommendations the FSI report, advised government that to minimise risk to the financial system it should stop self-managed superannuation funds (SMSFs) using limited recourse borrowing arrangements (LBRAs) to acquire property and other assets.
Superannuation rules were changed in 2007 to allow SMSFs to borrow using LBRAs. The value of the loans rose from $497 million in June 2009 to $8.7 billion in June 2014.
“Further growth in superannuation funds’ direct borrowing would, over time, increase risk in the financial system,” the FSI report noted.
The inquiry pointed out that while a lender only had recourse to the asset over which the LBRA was held, trustees would likely sell other fund assets to repay the debt if the asset’s value fell.
“As a result, LRBAs are generally unlikely to be effective in limiting losses on one asset from flowing through to other assets, either inside or outside the fund,” it warned.
It also raised concerns that borrowing reduced diversification and concentrated risk in superannuation funds, and allowed SMSF members to circumvent contribution caps, which restrict the amount members can add to their funds.
Self-Managed Superannuation Professionals’ Association of Australia director of technical and professional standards Graeme Colley said there was “scant evidence of abuse of LBRAs to date”.
“But [SPAA] can appreciate the FSI’s position if leverage in superannuation did grow to a level where it could be a threat to people’s retirement savings,” he added.
Separate from the review, regulators have been cracking down on unlicensed property spruikers who have been luring investors into setting up SMSFs to buy residential property, often using borrowed money.
In November, the Australian Securities and Investments Commission commenced proceedings in the Supreme Court of New South Wales against property investment promoter, Park Trent Properties Group. <a href="/guides/asic-commences-proceedings-against-property-promoter-park-trent-properties">ASIC alleges</a> Park Trent advised at least 500 members of the public to establish an SMSF and then use the fund to buy investment properties that were owned or promoted by Park Trent companies.
If the FSI’s proposed ban on borrowing goes ahead, funds with existing LBRAs would not be affected, although those disposing of assets bought with an LBRA would have to extinguish the associated debt at the same time. No date was set for the proposed regulations to begin. 
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Growth in SMSF borrowing will "increase risk in the financial system"

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A recently launched investment tool is giving self-managed superannuation fund members access to invest in real property with a lower capital outlay.
The Fractional Property Investment Platform, released by DomaCom in early March, allows investors to buy shares in any property on the market through an Australian Securities and Investments Commission-registered managed investment scheme (MIS).
“We are targeting the SMSF sector because that’s the sector that we know wants to invest,” DomaCom general manager of sales and marketing Warren Gibson said.
The average SMSF balance was just over $1 million at the end of the December 2013, according to Australian Taxation Office data. The median balance for the funds is around half that figure.
Gibson told Property Observer that the high cost to buy real estate meant most SMSFs wishing to invest in the asset class had to borrow to do so or invest through a syndicate or managed fund. Funds that did not wish to borrow risked having an undiversified portfolio.
“Syndicates are costly to set up, once you are in the syndicate you are there for the duration and there’s no liquidity for the structure. What we set about doing was introducing equity market concepts into the product,” Gibson said.
Investors can choose from the 18,320 properties already been listed on the Fractional Property Investment Platform, or request that any other property for sale be included. Around 17,000 of the properties currently listed are residential, 1,000 are commercial and 300 are rural.
The company aims to increase the number of listing to around 100,000 by the end of the year and eventually have all properties for sale listed, Gibson said.
After selecting a property, the investor bids on what proportion they would like to hold and a price range they believe it is worth.
The platform allows them to create a book build to buy the property with other investors who also wish to purchase a stake. When enough investors have joined the book build to account for the expected full value, DomaCom engages a buyers’ agent to acquire the property. Property valuers and conveyancers are also engaged.
After purchase, the property is placed into an MIS with sub-accounts set up for each investor. Rent and property-related costs are allocated to each investor in proportion to their holding.
The minimum amount to open an account is $20,000 but investors can put as little as $2,000 into each property.
Management fees to DomaCom are around 1% a year.
Gibson said the DomaCom platform also offered a secondary market where investors could sell their holdings in the MIS to others.
Investors can only access the structure through financial planners, who must be accredited to advise on the products.
DomaCom is also working on a product that will allow home owners to sell part of the equity in their property to investors. Gibson said the company hoped to release that product in the third quarter of this calendar year. 
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New tool allows SMSFs to buy shares in properties

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First home buyers will return to the property market as governments increase land supply, Stockland managing director Mark Steinert expects.
“We see a proactive focus from governments to improve the land supply that’s going to address the affordability issue,” Steinert said at the group’s half year results briefing last week.
Stockland, which produces small, high density residential properties at low price points, sells about half of the homes it builds to first-time buyers.
Despite low interest rates, first home buyer demand has been subdued as price rises and the removal of government grants for buying established dwellings have made it more difficult to save a deposit.
First home buyers accounted for 12.7% of total owner occupied housing finance commitments in December 2013, Australian Bureau of Statistics data shows.
<img alt="FHB-feb-14" src="/images/stories/2014/02/14/FHB-feb-14.gif" height="256" width="470">
Real Estate Institute of Australia president Peter Bushby said the figure was alarming compared with the long-run average of 19.9%. The REIA has called on governments to help first time buyers back into the market by allowing them to use superannuation savings to buy a home and by reinstating grants.
The Reserve Bank noted in its February Statement on Monetary Policy that demand for established housing was especially weak as changes in state government incentives for first home buyers toward new dwellings and away from established properties had shifted their purchases accordingly.
Housing Industry Association senior economist Shane Garrett said governments would have to further lift constraints on planning for new homes, land supply and infrastructure funding to maintain activity in the market.
“Addressing these issues will do much to improve longer term housing affordability,” Garrett said.
Steinert said there was a large amount of pent up demand from first home buyers for properties and rising prices in inner urban areas were encouraging people to look further out.
“There has been increased activity in the middle to outer rings as people search for a great lifestyle outcome at a competitive price,” Steinert said.
Stockland settled on 2,253 residential lots in the first half of 2014, an increase of 8.1% compared with the first half of 2013. Its revenue from residential property sales to consumers was up by 2.9% to $392 million, the group reported.
“We’ve seen a combination of price increases as well as volume [sales] increases,” Steinert said.
Prices for the group’s properties had increased by 8 to 10% in Sydney, and up to 5% elsewhere, he said. Packages that were previously on offer giving buyers extra such as landscaping included in the sale price were no longer widely available.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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As land supply increases, so will first home buyers: Mark Steinert

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Self-managed superannuation funds allocated almost twice as much of their assets to residential property in 2013 compared with the year before, a report into the funds has found.
The fourth annual Intimate with Self-Managed Superannuation report found that 9.9% of SMSF assets were held in residential property last year, up from 5.6% in 2012. The increase came as fund members reduced their cash allocations to 31% of total assets, down from 33.9% of assets held in cash in 2012.
The report, released at the SMSF Professionals’ Association of Australia (SPAA) conference in Brisbane recently, revealed that one third of SMSF trustees plan to consider investing in residential property through their super fund.
More than two thirds of SMSF trustees who invest in property are self-directed in their decision to do so, however many people do seek advice from financial planners or accountants, particularly regarding the loan structures that super funds can use to borrow for investing, known as limited recourse borrowing arrangements.
However the report, which was commissioned by fund manager Russell Investments and SPAA, and produced by research house CoreData, found that fewer financial advisers intend to offer assistance in on limited recourse borrowing arrangements in future.
While almost half of financial advisers surveyed had previously advised SMSF trustees on the rules on borrowing through SMSFs, only 7.7% planned to provide advice in that area in future. Almost 30% of advisers surveyed had never given advice on limited recourse borrowing arrangements.
The report’s findings on property investment were at odds with the latest Australian Taxation Office statistics, which showed that in September 2013, only $18.6 billion or 3.5% of the total $531.5 billion held in SMSF assets were held in residential property.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
           
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SMSF residential property allocation nearly doubles over 2013

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Australians have greater trust and confidence in the superannuation system than they did a year ago but less than half expect to rely solely on superannuation savings in retirement, turning to cash and property to make up the anticipated shortfall, research has found.
The Financial Services Council/ING Direct Superannuation Sentiment Index, released last week, showed that attitudes had improved over the past year towards the performance of superannuation, as well as the stability and certainty that the compulsory savings system provided.
FSC chief executive John Brodgen said superannuation funds had achieved double digit returns for the second year in a row, which had helped to boost confidence. The index measure of sentiment towards fund performance improved by seven points to 121 in 2014.
However, 52% of those surveyed said superannuation savings alone would be insufficient to provide for their retirement and 55% had investments outside of superannuation.
One in five people with assets outside of superannuation had investment property, the research showed. One third had cash savings.
“What’s important is to understand that if you have got money in superannuation it’s not liquid. You do need some liquid savings,” Brodgen said.
Actuarial firm Rice Warner recently reported that Australians held more than $1.6 trillion in superannuation at June 2013. The actuaries projected that figure would increase in real terms to more than $5 trillion in 30 years.
In comparison, Australians hold around $2.3 trillion in assets outside of superannuation and that is predicted to grow to $4.6 trillion by mid-2028, according to Rice Warner’s report, Ageing and Capital Flows prepared for the Financial System Inquiry.
In dollar terms, investment property accounted for almost half of personal investments held now, at $1.1 trillion, Rice Warner’s report found. Cash and term deposits accounted for 33.8% of the value of personal investments, while directly held shares accounted for 11.1%.
Self-managed super funds have been boosting their allocations to direct property and Rice Warner predicts they will continue to be interested in the asset class.
However, the Rice Warner report suggests the proportion of overall personal investments held in direct property will fall by 4% by 2028.
“Growth will occur due to superannuation becoming relatively less attractive for high income earners and lower interest rates in the short to medium term. However, this will be somewhat offset by investors gearing property less and yields being under pressure due to property prices and costs rising faster than rents,” the report says.
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Majority believe super not enough to fund retirement: FSG/ING survey

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Speculation that the federal government might lift the age at which people can access their superannuation savings to 70 years should not concern people who have invested in property through a self-managed superannuation fund, a technical expert has said.
Federal Treasurer Joe Hockey last week gave strong indications that the age of eligibility for the government pension is likely to be lifted to 70 years over time while access to other government benefits for older people will also be restricted.
The statements have fuelled fears that the so-called preservation age at which people can access superannuation savings will also be raised.
But SMSF Professionals Association of Australia director technical and professional standards Graeme Colley told Property Observer that an increase to the preservation age for superannuation might advantage people who hold property in their fund.
“It might be an advantage because the longer they hold a property, the greater the likelihood of capital gains,” Colley said.
Many people who own investment property through an SMSF are forced to sell when one of the members retires if the property does not generate sufficient cash flow to pay a pension from the fund.
Colley said an increase to the preservation age for superannuation would probably be accompanied by an increase to the age at which people can make personal and voluntary contributions to their funds.
As the rules stand now, all working people can receive superannuation guarantee payments from employers into their funds, regardless of age. However, while people aged under 65 can also make voluntary or personal contributions to their funds, those aged between 65 and 75 years must meet a work test to be able to do so.
People aged over 75 are unable to make any personal or voluntary payments into their funds.
SMSFs that have borrowed to invest, particularly those that have negatively geared property, often need to sell if members can no longer contribute to the fund to make up the shortfall in cash flow.
Giving older people who were no longer working the ability to make personal contributions to superannuation would allow them to hold their property in the fund for longer, providing the advantage of holding the asset in the low-tax superannuation environment.
“The longer it is, the better it is,” Colley said.
He added there was a risk for government that lifting the superannuation preservation age beyond the planned graduated increase to age 60 by 2024 and aligning it with the age pension age could backfire and put unintended pressure on other parts of the social security system. 
Amounts accumulating in superannuation are excluded from the assets tests that determine whether people qualify for social security payments.
Older people currently moving from the workforce to the age pension, topped up with superannuation benefits, could be forced to rely on other social security payments such as the Newstart Allowance if they were unable to find work but were too young to access their superannuation or the age pension, Colley said. 
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Rise in pension age should not worry SMSF investors

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Investors should expect regulations that allow self-managed superannuation funds to borrow to buy property to come under government scruitiny in the coming months, an expert in the area has said.
In February, Assistant Treasurer Arthur Sinodinos ruled out a specific review into limited recourse borrowing arrangements which SMSFs use when taking out loans to buy property.
Macquarie Bank executive director David Shirlow told Property Observer it was unlikely that the government would change its position, despite Senator Sinodinos standing aside and Finance Minister Mathias Cormann taking over as Acting Assistant Treasurer.
“Whilst the prospect of a separate and specific review of the matter is off the policy agenda for the time being, there are still some live policy issues in borrowing through super,” said Shirlow, who specialises in SMSFs and sits on the board of the SMSF Professionals’ Association of Australia (SPAA).
He said some stakeholders had argued that it was inappropriate for SMSFs to borrow for property investment at all, and that further constraints on advice provided regarding limited recourse borrowing arrangements and product offerings could be considered.
The arrangements are likely to be examined as part of the Financial System Inquiry, which is due to publish an interim report in mid-2014 and a final report by November.
Numerous submissions to the Inquiry have called for government to review SMSF borrowing and put in place additional consumer protection measures and education for trustees.
Big four accounting firm KPMG noted in its submission that super funds were tax-exempt in the pension phase, which provided incentives for SMSFs to invest in long-term assets such as residential property, and even more so if the property was negatively geared.
The Institute of Chartered Accountants in Australia strongly encouraged a review of existing arrangements to ascertain whether borrowing was appropriate and, if it was, to ensure the right legislative and regulatory frameworks were in place.
Mid-tier accounting firm Chan &amp; Naylor called for urgent action to create a dedicated national SMSF educational framework, lead by the Australian Securities and Investments Commission (ASIC), to teach the public about the merits and pitfalls of SMSF investments.
The Reserve Bank of Australia noted that SMSFs borrowing could expose members to greater financial risks (including excessive concentration in a single asset) than they understood they were taking.
CPA Australia raised concerns about the appropriateness of advice received by SMSF trustees and members, and potential misinformation being provided by unlicensed advisers such as real estate agents, mortgage brokers and property developers.
Shirlow said ASIC considered itself to have jurisdiction, under the Corporations Act, over some aspects of property sales people giving advice on limited recourse borrowing arrangements.
“Stakeholders such as SPAA would argue that there should be some more definite consumer protection rules in place to make sure that property spruiking is not going to lead to disaster,” he added.
The Association of Superannuation Funds of Australia has previously advocated for advice to SMSFs on asset classes such as investment property and limited recourse loans to be provided only through licensed financial planners.
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Investors should expect SMSF borrowing to come under greater government scrutiny

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The SMSF Professionals Association of Australia has released a set of best practice guidelines on advice and lending practices for limited recourse borrowing arrangements (LRBAs) following criticism of the loans in the Financial System Inquiry.
National Australia Bank has agreed to adhere to the guidelines and SPAA is working with other lenders in the sector to try to win their support.
“We believe that by publishing these guidelines, and with NAB signing on and other major lenders in the pipeline (the major banks are estimated to have more than 85% of this market), the government and regulators can have a high degree of confidence that LRBAs are being used appropriately,” said SPAA chief executive Andrea Slattery.
LBRAs are loans that self-managed superannuation fund trustees can use to buy property and other assets through their funds.
The Reserve Bank of Australia warned in its submission to the Financial System Inquiry that increased borrowing through SMSFs warranted close monitoring due to the potential risks it posed to the financial system and individuals’ retirement incomes.
There were $2.72 billion worth of limited recourse borrowing arrangements in place at December 2013, the Australian Taxation Office reported. That was up from $515 million five years earlier.
The FSI interim report observed that if allowed to continue, growth in direct leverage by superannuation funds may create vulnerabilities for the superannuation and financial systems.
Slattery said a “tiny rogue minority” had been spruiking the borrowing facilities to SMSF trustees and that best practice guidelines were needed to ensure lenders and advisers took a responsible approach to the borrowing arrangements.
The lenders’ guidelines are intended to complement individual LRBA credit policy and practices. They require lenders to provide information to trustees about LBRAs and recommend they seek professional advice before entering into the arrangements, although they stop short of forcing trustees to seek advice.
The advice guidelines lists a series of topics advisers should cover in conversations with SMSF trustees about LRBAs, including risks, tax and what can and can’t be done with the property that secures the loan.
Slattery said the guidelines were intended to encourage self-regulation in the SMSF lending sector.
Six tips for staying out of trouble with LBRAs
<ol>
<li>Seek advice from an appropriately qualified and licensed SMSF specialist, accountant or financial adviser as to whether a LRBA is appropriate for you and how it would fit with your investment strategy</li>
<li>Seek legal advice on how to structure the loan and what is involved</li>
<li>Ensure the advisers and/or lawyers you speak to are independent of any property company that is advising you on a sale to minimise the chance of receiving biased advice</li>
<li>Understand your responsibilities in relation to the LRBA as distinct from the responsibilities of the lender and/or any adviser</li>
<li>Understand the rules about what you can and can’t do with a property bought with a LBRA</li>
<li>Understand the implications of the investment for your fund including factors such as tax, risk, diversification and time frames.</li>
</ol>
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Six tips for staying out of trouble with limited recourse borrowing arrangements

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The Australian Taxation Office has raised concerns that self-managed superannuation funds have been incorrectly reporting the details of limited recourse borrowing arrangements used to buy property.
The warning comes as the ATO prepares to take up new and more flexible powers to deal with SMSF trustees who fail to follow the rules.
From 1 July, the ATO will be able to impose a wider range of penalties on funds that breach superannuation law. Under the new penalty regime, trustees may be personally liable for penalties of up to $10,200 per breach. They may be forced to rectify the problem and complete an SMSF education course.
SMSF trustees are required to lodge accurate annual returns each year to the ATO detailing their fund’s assets, liabilities and income. Penalties can be applied to those that fail to lodge their annual returns on time, or incorrectly report the details of their fund.
The ATO said it had noticed some trustees had misreported details of limited recourse borrowing arrangements, which are used to borrow to buy property through an SMSF, in their funds’ annual returns for 2013.
To help trustees understand the requirements, the ATO has released a detailed guide describing how to complete each section of the annual return.
The ATO has recently released the 2014 version of the annual return for SMSFs. It has also clarified some of the rules that apply to the borrowing arrangements and assets they are used to acquire.
Strict conditions apply to borrowing money through limited recourse borrowing arrangements. There can be civil or criminal consequences for fund trustees that fail to follow the rules.
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ATO concerned that SMSFs are incorrectly reporting borrowing details relating to property purchases

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.

&nbsp;

&nbsp;

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.

&nbsp;

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>

Zoe Fielding

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