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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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Australian Securities Exchange-listed apartment developer Finbar Group has sold an office building in Perth to Singapore stock exchange-listed Sim Lian Group, which is buying the property through a wholly owned property trust.
The Gateway Building in Victoria Park, south-west of Perth’s CBD sold for $72.8 million, with the sale price representing a yield of 8.48%.
Finbar Group said the price was consistent with the building’s current external valuation and carrying book value. It expects to realise $20 million in cash from the sale after the repayment of the building’s finance and minority joint venture interests. Finbar Group owned 69% of the property.
“The sale of the Gateway Building represents a timely disposal opportunity where we can seek to deploy more funds into our core business of residential apartment development which has a very robust pipeline of exciting and large scale projects,” Finbar managing director Darren Pateman said in a statement.
Finbar received approval in December for the development of a $120 million mixed-use development including 118 apartments and more than 2,000 square metres of commercial tenancies in South Perth.
The company reported the Gateway Building, which it completed building in July 2010, accounted for 54% of its rental income for the first half of 2014. Rental income contributed 5% to Finbar’s overall earnings, with the majority of its earnings deriving from apartment developments.
The market for office property sales in Perth was sluggish in 2014, with Savills research showing the value of office property sales was down 81% compared with the previous year. Only 16 office buildings changed hands in the city in 2014, down from the five year average of 35, Savills found.
Savills estimates yields for Perth CBD office property at December 2014 were in the range of 7.5% to 8.75% for A Grade buildings, and 8.75% and 10.25% for secondary grade buildings.
CBRE’s research shows there are high vacancy rates and leasing incentives in the Perth office market. The agent expects these challenging conditions for landlords to continue during 2015 with 155,805 square metres of new office space expected to come to market in the second half of 2015.
The Gateway Building has a net lettable area of 12,813 square metres and is 99% leased to retail and office tenants. The major tenant is listed engineering company Monadelphous Group, which has its head office in the building.
The sale is expected to settle in March 2015. 
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Finbar Group sells Gateway Building in Victoria Park, Perth

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The Real Estate Institute of NSW (REINSW) has joined a growing chorus of voices calling for changes to stamp duty on residential property.
REINSW president Malcolm Gunning said NSW home buyers were being hit with excessive amounts of stamp duty, which is known as transfer duty in some states, due to increasing house prices.
“Stamp duty was never designed to slug the average property owner at such high levels,” he said.
Gunning’s comments echo recent calls from others in the industry including the <a href="https://www.news.com.au/finance/real-estate/reiq-calls-for-stamp-duty-abolition-first-homebuyer-grant-reform-and-super-to-be-used-for-loan-deposits/story-fndbalka-1227189572242" target="_blank">heads of other state branches of the Real Estate Institute</a>, Property Council of Australia of South Australia executive director <a href="https://www.news.com.au/finance/real-estate/stamp-duty-comes-under-fire-as-sa-housing-approvals-fell-in-november/story-fndba8zb-1227178836009" target="_blank">Daniel Gannon</a>, and CoreLogic RP Data senior research analyst <a href="/expert-insights/investing/its-time-to-reform-stamp-duties-cameron-kusher">Cameron Kusher</a>.
The tax has been criticised for holding back new residential development and discouraging housing turn over, such as downsizing the family home.
In the UK, cuts to the rate of stamp duty charged on properties <a href="https://www.theguardian.com/money/2015/jan/28/stamp-duty-spike-uk-home-buyer-estate-agents" target="_blank">introduced late last year</a> have reportedly led to a jump in the number of people looking to buy a home. 
Stamp duty is levied by the states, so its level varies depending on the location of the property. First home buyers in some states receive concessions which mean they do not have to pay duty on the purchase of properties up to a certain value. There are also concessions in some states for buying new homes or vacant land for building a home.
Here are some examples of how stamp duty varies for purchases of established homes in each state. The greatest variation is for lower valued properties where concessions for some types of buyer come into play.
Property value: $350,000
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="151">
State
</td>
<td width="141">
First home buyer
</td>
<td width="152">
Home buyer (subsequent property)
</td>
<td width="157">
Investor
</td>
</tr>
<tr>
<td width="151">
South Australia
</td>
<td width="141">
$13,830
</td>
<td width="152">
$13,830
</td>
<td width="157">
$13,830
</td>
</tr>
<tr>
<td width="151">
Northern Territory
</td>
<td width="141">
$13,300
</td>
<td width="152">
$13,300
</td>
<td width="157">
$13,300
</td>
</tr>
<tr>
<td width="151">
Tasmania
</td>
<td width="141">
$11,935
</td>
<td width="152">
$11,935
</td>
<td width="157">
$11,935
</td>
</tr>
<tr>
<td width="151">
NSW
</td>
<td width="141">
$11,240
</td>
<td width="152">
$11,240
</td>
<td width="157">
$11,240
</td>
</tr>
<tr>
<td width="151">
ACT
</td>
<td width="141">
$9,575
</td>
<td width="152">
$9,575
</td>
<td width="157">
$9,575
</td>
</tr>
<tr>
<td width="151">
Victoria
</td>
<td width="141">
$6,935
</td>
<td width="152">
$13,870
</td>
<td width="157">
$16,070
</td>
</tr>
<tr>
<td width="151">
Queensland
</td>
<td width="141">
$0
</td>
<td width="152">
$3,500
</td>
<td width="157">
$10,675
</td>
</tr>
<tr>
<td width="151">
Western Australia
</td>
<td width="141">
$0
</td>
<td width="152">
$10,735
</td>
<td width="157">
$10,735
</td>
</tr>
</tbody></table>
Property value: $650,000
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="151">
State
</td>
<td width="152">
All buyer types
</td>
</tr>
<tr>
<td width="151">
Victoria
</td>
<td width="152">
$34,070
</td>
</tr>
<tr>
<td width="151">
Northern Territory
</td>
<td width="152">
$32,175
</td>
</tr>
<tr>
<td width="151">
South Australia
</td>
<td width="152">
$29,580
</td>
</tr>
<tr>
<td width="151">
Western Australia
</td>
<td width="152">
$24,890
</td>
</tr>
<tr>
<td width="151">
NSW
</td>
<td width="152">
$24,740
</td>
</tr>
<tr>
<td width="151">
Tasmania
</td>
<td width="152">
$24,622.50
</td>
</tr>
<tr>
<td width="151">
ACT
</td>
<td width="152">
$23,300
</td>
</tr>
<tr>
<td width="151">
Queensland*
</td>
<td width="152">
$15,100
</td>
</tr>
</tbody></table>
* Buyers in Queensland would pay $22,275 transfer duty on a property bought for investment purposes.
Property value: $1 million
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="151">
State
</td>
<td width="141">
All buyer types
</td>
</tr>
<tr>
<td width="151">
Victoria
</td>
<td width="141">
$55,000
</td>
</tr>
<tr>
<td width="151">
Northern Territory
</td>
<td width="141">
$49,500
</td>
</tr>
<tr>
<td width="151">
South Australia
</td>
<td width="141">
$48,830
</td>
</tr>
<tr>
<td width="151">
ACT
</td>
<td width="141">
$44,918
</td>
</tr>
<tr>
<td width="151">
Western Australia
</td>
<td width="141">
$42,615.50
</td>
</tr>
<tr>
<td width="151">
NSW
</td>
<td width="141">
$40,490
</td>
</tr>
<tr>
<td width="151">
Tasmania
</td>
<td width="141">
$40,185
</td>
</tr>
<tr>
<td width="151">
Queensland
</td>
<td width="141">
$30,850
</td>
</tr>
</tbody></table>
Source of data in all tables: Infochoice.com.au
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How stamp duty varies state by state

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Last week’s cut to the cash rate will start many borrowers thinking about refinancing their home loan. But like any financial decision, switching mortgages should not be taken lightly.
Here are several traps to avoid:
<ol>
<li>
Failing to consider your own circumstances – if your situation has changed since you first took out your mortgage, it’s wise to reassess whether you’ve got the right product. However, some changes of circumstances may mean that the loan you’re in will be the best deal you can get. If you have become self-employed since first taking out your mortgage, for example, you may be required to take out a low-doc loan if you refinance. These tend to charge higher interest rates than standard discounted home loans, so it’s likely you’d have to pay more. Similarly, if you or your partner has retired or stopped working for some other reason, your ability to repay a loan may be assessed differently by a new lender than under your existing mortgage contract. 
</li>
<li>
Ignoring switching costs – Fixed rate mortgages charge break fees for exiting early. These may make it prohibitively expensive to switch. Exit fees for variable rate mortgages were banned in 2011 and those on most on older mortgages would have expired by now but there are still costs associated with taking out a new mortgage that should be balanced against any savings you’ll receive by getting a lower rate. Fees to watch for include discharge fees paid to your current lender for preparing documents to finalise and pay out the existing loan; application fees to the new lender; valuation fees charged by the new institution for obtaining an up-to-date valuation on the property; and land registration fees for replacing the mortgage with the existing lender with one from the new institution. Canstar estimates these refinancing fees can add up to around $1,000. Consider whether that cost outweighs the benefits of a lower interest rate over a reasonable pay-back period. 
</li>
<li>
Comparing apples with oranges – if you have a fully featured mortgage, make sure you’re comparing the cost of a similar loan. Basic mortgages typically cost less than fully featured options, but a loan with more features may save you money in the long run if you take advantage of it. Holding $10,000 in an offset account could save $250 a year on a $250,000 loan that charges 5% interest. That may not sound like much, but that’s the equivalent of 0.2% lower annual interest rate. On the other hand, if you’ve never used the features such as offset accounts, discounted credit cards or home insurance policies that come with some loans, this might be a good time to dispense with the extras. 
</li>
<li>
Going for a fixed rate – rates are at historic lows. Fixed rate mortgages are available at 4.35%, fixed for two years on a 30 years mortgage (from Loans.com.au), according to Finder.com.au. Variable rate loans are offering 4.25% (also from Loans.com.au).   If you want to be sure of what your repayments will be, consider a fixed rate loan but remember you will be trading off flexibility. Most fixed rate loans prevent you from making extra repayments or repaying in full before the end of the term. Should you circumstances change, you may be hit with break fees if you choose to lock in the interest rate. 
</li>
<li>
Failing to approach your existing lender – rather than rushing out and swapping lender, have you approached your existing lender to see if they can give you a better deal? If there are lower rates in the market and you’re a good customer, they may go out of their way to keep you. It can be more efficient and less costly to get a better deal where you are rather than moving externally, especially if you hold other financial products – bank accounts and credit cards for instance – with the same institution. 
</li>
<li>
Ignoring some of the options – whether you’re using a mortgage broker to help you refinance, referring to a comparator website or succumbing to advertisements, remember that there are other options out there. Brokers include only a sub-set of available lenders on their panel of suggestions. You may get a good deal, but is it the best in the market? The only way to find out is to research more widely. Again, there’s an element of trade-off here. You might find that near enough is preferable to spending hours of investigation to get the best of the best. 
</li>
<li>
Failing to consider the lender’s history – if you’re switching to a variable rate, remember these can change at any time. Some lenders offer attractive promotional rates to lure borrowers in but fail to pass on subsequent interest rate cuts in a timely manner. Many lenders have quickly followed the Reserve Bank of Australia at this rate cut but that’s not what happens every time. A month-long delay in passing through a 0.25% interest rate cut would cost $83 in interest repayments on a $400,000 mortgage. Lenders may even lift rates out of cycle with the RBA if they decide that’s right for their business. It’s very difficult to tell which lenders will be the ones to do these things but investigating their behaviour when interest rates changed in the past may sound some warning bells. </li>
</ol>
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Seven traps to avoid when refinancing

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There was little consensus on what the next move for interest rates in Australia was.
Several economists have changed their predictions from flat or rising rates through 2015 to forecasts of declines, while others maintain that the next shift will be up.
A key financial market indicator, <a href="https://www.sfe.com.au/content/prices/rtp15SFIB" target="_blank">the ASX 30 Day Interbank Cash Rate Futures</a> February 2015 contract, on 27 January revealed a 38% expectation of an interest rate cut to 2.25% at the RBA’s board meeting on 3 February. But, with the release of higher than anticipated inflation data for the final quarter of 2014 on 28 January, the indicator dropped sharply to 16%, suggesting much lower expectations of a rate cut in February.
Click to open in new window:
<a href="/images/2015/01/30/zoe-jan-30-onem.jpg" target="_blank"><img src="/images/2015/01/30/zoe-jan-30-onem.jpg" alt=""></a>
Source: global-rates.com, Property Observer research.
Some economists, including HSBC Bank’s chief economist for Australia and New Zealand Paul Bloxham, say the latest inflation figure means interest rates are now more likely to remain on hold through 2015 than be cut.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Property Observer had a look at what central banks in other countries are doing with their official interest rates.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Trading partners
China is Australia’s biggest two-way trading partner so its economic health is vital to Australia. China’s economy has been slowing and in November 2014 its central bank cut interest rates for the first time in two years in move to improve the situation. Its official interest rate is now at 5.6%, down from 6% in November.
Australia’s second largest trading partner is Japan. The Japanese economy has been in a poor state for years. Its official interest rate is just 0.1%.
The Federal Reserve, the central bank of Australia’s next biggest trading partner, the USA, has been vocal about its intentions to keep rates low for the near term. Its interest rate has been at 0.25% since December 2008, when the Fed slashed rates from 1%.
The table below shows the current interest rates of several major countries, the previous interest rate and the date of the most recent change.
As the table shows, many countries have been lowering interest rates. Most recently, at the end of January, Canada surprised markets by cutting rates, while Switzerland further lowered its negative interest rate, so customers must pay more to the central bank for holding their money.
Only a handful of countries have boosted rates in recent months, one being New Zealand, which is another of Australia’s top 10 trading partners. New Zealand lifted its interest rate in July last year to 3.5%.
While many countries manage monetary policy through interest rates, Singapore, another of Australia’s most important trading partners, manages its foreign exchange rate instead. On 28 January, the Monetary Authority of Singapore surprised the market by saying it would take measures to slow the rise of its dollar. This could be considered its version of cutting interest rates.
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What central banks around the world are doing with interest rates

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Ingenia Communities is an Australian stock exchange-listed property group that owns, operates and develops seniors’ communities across Australia.
Its chief executive officer Simon Owen talked to Property Observer about the company’s new direction. 

<ul>
<li>What is the outlook for demand in the segment of the property market that you target?</li>
</ul>
We are firmly focused on the more affordable segment of the property market for seniors’ living. We all know about the aging population but the segment we are focusing on is seniors’ accommodation and manufactured homes under $300,000 – there’s a limited supply of that type of property so the level of demand we are experiencing is quite strong.
We expect demand from seniors to continue to be very strong over the next five years. Some of our challenge is that there is limited awareness of the markets we operate in, the lifestyle parks and manufactured homes, so we have to build up that awareness that you own the home but not the land. That means you can maintain a comfortable retirement while usually maintaining your full pension with rent assistance.
Bringing a product to the market that’s affordable means seniors can sell their home and don’t have to spend more than 60 to 70% of the proceeds to buy a manufactured home.
In Sydney for instance, in the local government areas in which Ingenia has lifestyle parks, average property prices are $450,000, while a senior can buy a manufactured home for $300,000. They have the surplus from the sale plus the full pension of $900 a fortnight, which means they have that $150,000 surplus to spend on other things.
<ul>
<li>Your business concentrates on retirement living but you have been branching into tourism properties too, why is that?</li>
</ul>
There were 1779 tourism parks in Australia in 2003-04, according to IbisWorld but over the last 10 years that number has reduced to around 1600. These have been closed for a variety of reasons such as flooding or being converted to other land uses but at the same time revenue from the remaining parks has increased.
Cash flow from lifestyle parks is strong and they are highly complementary to our seniors business with the highest users of the parks being grey nomad. That provides an opportunity for us to cross sell to people. The number of registered caravans is rising. When a senior buys into a manufactured home park, they receive a 25% discount at our 19 parks along the east coast.
When we started our manufactured home strategy four years ago we identified tourism as a business where long term we would want to turn the tourism component of the lifestyle parks that we invest in into permanent living.
But we realised that in many parts of the country, the highest and best use of the land was tourism. Tourism generates very strong cash flow which supports our roll out of developments.
A best in class manufactured home community that has been purpose build with no tourism is going to deliver a cap rate of about 9%. We can buy mixed use parks at cap rates of 10% or more. The opportunity for us to buy those parks on attractive terms is quite compelling.
I don’t think we would ever be looking to be a tourism operator but we are comfortable using it where it’s the highest and best use of the land.
<ul>
<li>How competitive is the market for buying lifestyle parks?</li>
</ul>
Over the last six to 12 months there are more participants out there but we are ahead of the competition. We have seven people out there concentrating on acquisitions. We don’t rely on agents for deal flow. We have two people out door knocking having informal discussions with prospective sellers.
<ul>
<li>You have started to move out of investing in deferred management fee (DMF) retirement villages, where seniors buy the right to occupy a home, then pay annual fees and an exit charge. Why?</li>
</ul>
DMF is a great model. There are three reasons we are looking to exit that over time, and we are only going to exit if we can get appropriate values for the properties.
We want to focus on the affordable segment and DMF is no longer affordable because we can’t build a DMF home for under $350,000 and get a return. We want to focus on the affordable market and we are building manufactured homes and rental villages in some markets for $180,000. We don’t want to be all things to all people and we have identified that DMF is not consistent with affordability.
There are other pure-play DMF operators out there and this is also about differentiating our business.
Lastly, while we have about $70 million worth of DMF properties that are earning attractive development returns, if we strip out the development returns, it is a return of less than 3% per annum. Yields will grow over time but I can put that capital to work better now and buy a lifestyle park and get an immediate 10% yield. It’s about more efficient utilisation of capital.
<ul>
<li>What assets do you own and where does your revenue come from?</li>
</ul>
Ingenia’s portfolio includes about $120 million worth of Garden Villages (our rental properties for seniors), $70 million in DMF, and with acquisitions made and announced, about $170 million in lifestyle parks.
I would expect that over the next two to three years as we divest out of DMF and move into lifestyle parks we will be at a split of 75% in lifestyle parks to 25% in Garden Villages.
In the current financial year about a third of our revenue will be rental villages, 5-10% from DMF, 10-15% from tourism and the balance from manufactured homes, both rent and development.
<ul>
<li>What are the biggest challenges to your business?</li>
</ul>
The biggest risks and challenges to our business are around planning. We have to deal with a myriad of councils. Some are supportive and some are obstructive. That’s the single biggest challenge. 
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Q&A with Ingenia Communities' chief executive officer Simon Owen

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South African listed Investec Australia Property Fund has acquired two industrial properties in Newcastle and western Sydney for a total of $26.9 million.
The sale come at the end of a busy year for industrial property transactions. Demand for Australian industrial assets is strong with investors attracted to the high yields and income return.
Commercial real estate agency JLL predicts the total value of industrial property transacted in 2014 could hit a record high, exceeding the $4.4 billion worth of properties that changed hands in 2007.
In the first nine months of 2014, $2.9 billion worth of industrial properties had already sold, which was 40% more than at the same time the previous year, JLL’s research shows. A further $1.6 billion of potential transactions were expected to exchange or settle before the end of the year.
Sydney was the strongest investment market for industrial property across Australia, making up 47% of sales in 2014, JLL’s research shows. Demand was shifting away from assets in Perth and Brisbane, towards Sydney and Melbourne.
Property funds, like the Investec Australia Property Fund, were the most active buyers by number of transactions in Sydney’s industrial market in the year to September 2014, Savills’ research shows. Over that 12 month period, 17 industrial assets in Sydney sold to property funds.
By value, trusts were most active in Sydney, transacting $785 million worth of industrial property, or 42% of value, Savills’ research shows.
The Investec fund has acquired $147.4 million worth of properties over the past 12 months, bringing its portfolio to nine industrial properties and five office properties.   
The two latest acquisitions were made at a blended yield of 7.92%.
Competition for industrial assets in Sydney has caused average yields to tighten. Yields on prime industrial assets now range from 7.25% to 7.75%, 50 basis points less than at the same time in 2013, Savills reports.
Yields on secondary industrial tightened by 25 basis points in the September 2014 quarter and Savills anticipates further pressure on yields as lack of prime investment stock forces investors to look for well leased secondary assets instead.
Investec’s purchase at Wetherill Park in Sydney’s west has 11 years remaining on the lease with an option for a further five years and average contracted annual rental growth of about 3%.
The lease on the Newcastle property runs until January 2021, with a contracted 3.75% rental growth and an option for a further 10 years.
IAPF chief executive Graeme Katz said had recently paid down all of its debt and was was in a strong position to pursue acquisitions.
“We are actively seeking opportunities to grow and diversify the Fund’s asset base, enhance value and contribute to sustainable income growth for our investors,” he said. 
The fund was listed on the Johannesburg Stock Exchange in October 2013, allowing South Africans to directly invest in Australian commercial property.  
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South African fund invests $26.9 million in NSW industrial properties

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Slowing population growth in Perth will allow the home building industry to better keep pace with demand, according to a property developer with investments in the city.
The downturn in mining investment has curbed population growth in Perth, with the city’s growth rate easing from 3.6% to 2.5%, Cedar Woods chief executive Paul Sadleir told Property Observer.
“That is a more sustainable growth rate,” Sadleir said. “When it was running at 3.6% we were not able to keep up as an industry.”
The Housing Industry Association’s bi-annual Housing Scorecard report, released in early December, found Western Australia remained the strongest residential building market in the country, despite a slowdown in the state’s property market.
Cedar Woods has housing estate developments in Perth, Melbourne and Brisbane.
Sadleir said the housing market was tipped to grow strongly in Queensland, to moderate in Victoria and to ease in Western Australia.
Despite expectations of weakening conditions in two of the states in which the company operates, Sadleir said the listed company anticipates it will deliver a net profit in the 2015 financial year at least in line with its record profit in 2014.
“Expectations switched from interest rate rises to rate cuts the underlying conditions for the sector will be quite positive for the next year. We still have reasonable population growth and interest rates are a key thing that buyers are always looking at,” Sadleir said.
He said buyers had become more discerning and wanted high quality housing and amenities, and developers had to ensure they met the standards.
“Most of our projects are multi-year and if we deliver quality stage one and two, people have the confidence to buy into the area,” he said.
Demand is increasing for smaller, low maintenance lots.
“People are time poor and we try with the large estates to make sure we have got a good network of parks running through … For many people, the backyard is a patio to sit on and when they need more space it’s the park we provide,” Sadleir said.
One example is Carine Rise, a 7.93 hectare former TAFE site about 15 kilometres north of Perth CBD, which is being redeveloped by Cedar Woods Properties with LandCorp and the St Ives Group. The site is considered an infill development as it is surrounded by established suburbs rather than being on the outer fringes of the city.
The development will incorporate a range of housing, retirement living and commercial developments. Almost a hectare of the estate will be dedicated to public open spaces.
Most of the buyers for the medium density development come from within a radius of about five kilometres from the site. Many of the buyers in those types of developments are retirees looking to downsize their family homes while remaining in the neighbourhood, Sadleir said.
“Infill opportunities are few and far between so when they do come along people are interested in that housing choice in their locality,” Sadleir said. “I think we will see more of that and the buyers for that will be people from within those catchments.”
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Slowing Perth market will allow supply to catch up with demand: Developer

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Comparator websites are under investigation by the corporate and consumer watchdogs.
The Australian Competition and Consumer Commission reported in early December that while more than 70% of people who research products online in the sectors it is investigating use a comparator website, most are sceptical of the results as they don’t understand how the websites make money or the motivations of the operators.
The ACCC is looking into the benefits and risks to consumers of using websites that compare multiple service providers in the private health insurance, telecommunications and energy sectors. The Australian Securities and Investments Commission is reviewing websites that compare financial services such as mortgages.
Property Observer compared the remuneration models of several mortgage comparator websites. Here’s what we found.
<ul>
<li>Comparethemarket.com.au</li>
</ul>
This site only compares the products of participating brands, which include each of the major banks but only a few of the smaller banks and non-bank lenders.
They say: “If you decide to buy a product or service from one of our participating providers, [Compare the Market] may receive a commission from that provider. This commission is paid by the product or service providers and there is no extra cost to you for our service. “It’s important to note that our comparison tool is not influenced in any way by our commercial arrangements with our participating providers. We work hard to provide you with great options for your needs.”
<ul>
<li>Finder.com.au</li>
</ul>
Makes money by selling some ad space on its sites and through referral.
They say: “When you click through to or apply with a financial institution, broker or retailer from our website, that provider will pay us a small referral fee for sending you to there. We don't mark up the products just for listing them on our website, and we don't get ongoing or trailing commissions.”
<ul>
<li>InfoChoice.com.au</li>
</ul>
Charges fees to some institutions and advertisers which are negotiated on a case-by-case basis.
Some businesses pay InfoChoice subscription fees for using its data. Or, it may charge fixed cost development, licensing and hosting fees for the use of its financial calculators.
InfoChoice also receives fees from product providers for product advertisements on its website. The advertising fee may be based on a cost per impression or fixed monthly sponsorship fee. Referrals from the InfoChoice website may also earn the comparator a cost per click, a cost per application or a cost per lead for enquiries. It can also take a commission on referrals to third party advice providers such as mortgage brokers.
<ul>
<li>Mozo.com.au</li>
</ul>
Like Finder.com.au, Mozo makes money from advertising and referrals.
They say: “Mozo makes money in two ways. We sometimes charge a fee to financial institutions when we transfer potential customers to them, for example if you click on ‘Go to Site’ once you've found a great deal using Mozo. In some instances we link through to financial institutions without charging a fee in order to provide a service to you. We also host a small amount of advertising on the site to keep you up to date with the latest offers.”
<ul>
<li>Ratecity.com.au</li>
</ul>
Makes money from display advertising and by generating qualified leads for financial institutions. Leads are created when consumers visit the financial institution’s website via a link from the RateCity website. RateCity gets paid either for the click, or for transacting with the financial institution by opening an account or applying for a product online for instance.
It may also receive referral fees from brokers or financial advisers when the consumer requests that their details are passed on.  
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How mortgage comparison websites make money

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Harry Li, director of the McDonald Real Estate’s Springvale office in Victoria was REIV’s winner of the award for senior auctioneer of the year in 2014 and a finalist in the Australia and New Zealand auctioneering event held recently in New Zealand. 
He spoke to Zoe Fielding about what it takes to be a top auctioneer.
Harry Li (pictured above) started out as a real estate rookie in Victoria about a decade ago.
After four years in property sales, Li – now a director of McDonald Real Estate Springvale – turned his sights towards auctioneering.
“I felt that was a natural progression,” he says. “At the time the company did not have a full time auctioneer so I thought I would do the training.”
Basic auctioneer training teaches the foundations needed to run an auction sales campaign and the technical skills to call an auction.
Some auctioneers simply do the basics but Li goes much further. Over the years he has taken one-on-one training from other auctioneers, and sought guidance and tips from people with more experience. But the most important element of Li’s skills development is practice.
“Time is what it takes,” Li says. “I practice with a partner four times a week. It’s like going to the gym. If you want to build your muscles you have to train regularly.”
The pair conduct mock auctions on a weekly basis whereas Li says many auctioneers only train once a week or only practice their craft when they conduct auctions on a Saturday.
It’s the details that make a good auctioneer stand out from the crowd, Li says.
In addition to the technical skills, such as knowing the rules, keeping track of the numbers, and using the right type of language, an auctioneer’s general persona is important. The auctioneer must be likeable and “real”.
“You don’t have to be an aggressive person. Some people are more passive and that’s OK but you have to be able to read the play of the auction. You have to be flexible enough to handle the scenarios that come up,” Li says.
An auctioneer must know when to take large or small bids and how far to push the bidders.
The auctioneer’s performance can have a major effect on how much more a property sells for, regardless of whether it is snapped up under the hammer or passes in and sells during later negotiations.
“If the auctioneer gets on the wrong side of a buyer it can cost the seller a lot,” Li says. “It’s an art form and that plays a part when it comes to the final result.”
Li’s hard work has paid off. He was winner of the Real Estate Institute of Victoria’s award for senior auctioneer of the year in October and was a finalist in the Real Estate Institute of Australia’s auctioneering competition held in New Zealand.
Unsurprisingly, he is a big advocate of auctions, although he says they are not appropriate in all markets or for all homes. In a slow market, or when buyers have access to a large amount of accurate data about the property’s value, which might be the case for identical units in a large block for example, an auction may not be the best option.
“If it’s a highly competitive area and there’s good demand for properties an auction is the way to go,” Li says.
Competitive bidding can boost the price that the property achieves, pushing buyers to spend the maximum amount they can, or risk losing the auction to another more committed bidder.
Auctions also create a sense of urgency among buyers with auction day acting as a deadline by which they must make a decision on the property. In a private treaty sale, the process may be more drawn out.
The seller in an auction is protected by the reserve price, which means the property will not sell unless the pre-agreed level is reached.
After the hammer falls, the sale is final and unconditional. This allows the vendor to set specific sale terms, such as the settlement date, and prevents a buyer from backing out after the deal has been agreed. This is typically a benefit to sellers but it can limit the number of potential buyers as some people wish to purchase subject to finance, which is not an option with an auction.
Another potential downside of an auction is that engaging a specialist auctioneer comes with an additional cost, but if the campaign and auction are run well, the extra cost may be recouped through a higher sales price.
{qtube vid:=2l2YoUdC4eg}
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Agent profile: Harry Li - what it takes to be a top auctioneer

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

Zoe Fielding

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